The following is a summary of the Umicore SA (UMICF) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Umicore reported annual revenues of EUR 3.9 billion in 2023, a 7% drop due to declining PGM prices and lower non-recurring lithium margin effects.

• Despite the decrease in revenues, the company remained profitable with a 25% EBITDA margin and amplified its cash conversion rate from 73% to 125%.

• Adjusted EBITDA stood at EUR 972 million, reflecting a decrease from the previous year.

• The company generated an adjusted net profit of EUR 447 million leading to an adjusted EPS of EUR 1.86.

• Umicore's net financial debt was EUR 1.3 billion, resulting in a leverage ratio of 1.3x relative to adjusted EBITDA over the last 12 months.

Business Progress:

• Umicore prepared for a major expansion in battery materials volume, anticipated to commence from 2024.

• The company continued its commitment to sustainability by increasing renewable energy use to 41%, up from 35% in the previous year.

• The company anticipates a revenue of EUR 575-675 million in the Battery Materials group for 2024.

• Umicore projects an EBITDA between EUR 900 million to EUR 950 million for the full year of 2024 and expects an EBITDA margin larger than 25%.

• The company is expanding into China with a focus on EVs, backed by strong order books and risk-mitigating take-or-pay contracts.

• Over 350 initiatives have been identified to boost efficiency across the business segments, promising an EBITDA impact of EUR 70 million in 2024 and over EUR 100 million from 2025.

• Umicore plans to invest around EUR 3.8 billion in capital expenditures for the period 2022-2026.

More details: UMICORE IR

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