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<strong>Technical</strong><br />
<strong>Materials</strong><br />
<strong>in</strong> Ch<strong>in</strong>a<br />
Joerg Plessow<br />
Senior Vice-President
Unique mix of superior technologies<br />
and capabilities<br />
Ag, Pt<br />
application<br />
know-how & total systems approach<br />
chemical technology<br />
metallurgy<br />
metals management<br />
Recycl<strong>in</strong>g and jo<strong>in</strong>t development<br />
Electronics,<br />
electrical,<br />
HVAC,<br />
automotive,<br />
glass,<br />
tool<strong>in</strong>g,<br />
chemical<br />
4 bus<strong>in</strong>ess l<strong>in</strong>es<br />
BrazeTec<br />
Contact <strong>Materials</strong><br />
Electronic Packag<strong>in</strong>g<br />
<strong>Materials</strong><br />
Plat<strong>in</strong>um Eng<strong>in</strong>eered<br />
<strong>Materials</strong><br />
2
<strong>Technical</strong> <strong>Materials</strong><br />
... the materials science unit for silver and plat<strong>in</strong>um based products<br />
Revenues major regions<br />
25%<br />
11%<br />
12%<br />
3%<br />
EU NAm SAm Asia RoW<br />
49%<br />
Bus<strong>in</strong>ess L<strong>in</strong>es: 4<br />
Employees: 1,460<br />
Production Sites: 12<br />
Customers: > 3,000<br />
3
<strong>Technical</strong> <strong>Materials</strong> bus<strong>in</strong>ess l<strong>in</strong>es<br />
21%<br />
Revenues<br />
14%<br />
30%<br />
BrazeTec<br />
Contact <strong>Materials</strong><br />
35%<br />
12%<br />
34%<br />
Headcount<br />
10%<br />
Total Headcount <strong>in</strong><br />
R&D & Applied Technology: 39<br />
Plat<strong>in</strong>um Eng<strong>in</strong>eered <strong>Materials</strong><br />
Electronic Packag<strong>in</strong>g <strong>Materials</strong><br />
44%<br />
4
Key strategies<br />
BrazeTec<br />
Best service, solution provider,<br />
and cost leader<br />
Lean operations<br />
Cost leader<br />
Market<strong>in</strong>g/<br />
Applied<br />
Technology<br />
Solution<br />
provider<br />
Portfolio<br />
management<br />
Buy and sell<br />
CM<br />
EPM<br />
PEM<br />
Customer <strong>in</strong>timacy and jo<strong>in</strong>t<br />
product development<br />
R&D<br />
Innovator<br />
5
Key strategies<br />
Organic growth<br />
W<strong>in</strong> replacement bus<strong>in</strong>ess with<br />
advanced products at identified<br />
customers<br />
Create new bus<strong>in</strong>ess with<br />
new products, <strong>in</strong> new<br />
applications and through jo<strong>in</strong>t<br />
development with customers<br />
Strengthen positions with<br />
products that have not yet<br />
reached peak of life cycle<br />
External growth (or self <strong>in</strong>vest) <strong>in</strong> Asia & North America<br />
BT, CM: acquire local Ch<strong>in</strong>ese PEM, EPM: acquire or venture with<br />
producer with relevant local producer with customer base <strong>in</strong><br />
customer base or establish relevant Asian markets or establish<br />
greenfield operation greenfield operation<br />
Global customer base<br />
BT, CM, EPM<br />
customers<br />
mov<strong>in</strong>g<br />
to Ch<strong>in</strong>a<br />
…but also local customers of importance<br />
BT, CM: acquire local North American<br />
activities for driv<strong>in</strong>g market consolidation<br />
and for becom<strong>in</strong>g major player <strong>in</strong> all three<br />
major hemispheres<br />
PEM<br />
customers <strong>in</strong><br />
Korea, Japan,<br />
Taiwan<br />
6
Several years’ limited presence <strong>in</strong> Asia<br />
Umicore Precious Metals<br />
(S<strong>in</strong>gapore) Ltd., S<strong>in</strong>gapore<br />
Production for Electronic Packag<strong>in</strong>g<br />
<strong>Materials</strong> ma<strong>in</strong>ly for the Asian<br />
markets<br />
25 employees<br />
Umicore Precious Metals<br />
Japan Co., Ltd., Tsukuba/<br />
Japan<br />
Customiz<strong>in</strong>g/ Customer Support<br />
for Plat<strong>in</strong>um Eng<strong>in</strong>eered<br />
<strong>Materials</strong> for the Asian markets<br />
Small base for TM<br />
7
New <strong>in</strong>vestments <strong>in</strong> Asia<br />
Duksan Hi-Metal Co., Ltd.,<br />
Ulsan/ Korea<br />
Jo<strong>in</strong>t Venture – Umicore 14%<br />
Production for Electronic<br />
Packag<strong>in</strong>g <strong>Materials</strong> for the<br />
worldwide market<br />
70 employees<br />
Umicore <strong>Materials</strong> Taiwan Co.,<br />
Ltd., Hs<strong>in</strong>chu/ Taiwan<br />
Production for Plat<strong>in</strong>um Eng<strong>in</strong>eered<br />
<strong>Materials</strong> for the Asian markets<br />
Small base for TM<br />
8
New <strong>in</strong>vestments <strong>in</strong> Asia<br />
Umicore <strong>Technical</strong> <strong>Materials</strong><br />
(Suzhou) Co., Ltd.,<br />
Suzhou/ Ch<strong>in</strong>a<br />
Contact <strong>Materials</strong> production<br />
for the Asian markets<br />
160 employees<br />
Umicore <strong>Technical</strong> <strong>Materials</strong><br />
(Yangzhong) Co., Ltd.,<br />
Yangzhong/ Ch<strong>in</strong>a<br />
BrazeTec production<br />
for the Asian markets<br />
400 employees<br />
9
Grow<strong>in</strong>g <strong>in</strong> Ch<strong>in</strong>a:<br />
BrazeTec
BrazeTec products and<br />
customer <strong>in</strong>dustries<br />
Broad range of high-quality braz<strong>in</strong>g products and services for a broad<br />
customer base <strong>in</strong> both traditional and <strong>in</strong>novative metal jo<strong>in</strong><strong>in</strong>g <strong>in</strong>dustries<br />
Alloys<br />
Fluxes<br />
Pastes<br />
Services<br />
Tool<br />
Electric<br />
Mach<strong>in</strong>ery<br />
Automotive<br />
HVAC, HE<br />
Construction<br />
11
BrazeTec<br />
The lead<strong>in</strong>g worldwide braz<strong>in</strong>g player<br />
Other<br />
43%<br />
Market size of €260m<br />
C 13%<br />
Umicore<br />
18%<br />
B 13%<br />
A 13%<br />
Market grow<strong>in</strong>g at approx GDP<br />
levels<br />
Umicore’s historical strength has<br />
been <strong>in</strong> Europe but<br />
Strategic focus on <strong>in</strong>creas<strong>in</strong>g<br />
market share <strong>in</strong> Asia<br />
Room forgrowthalso<strong>in</strong> North<br />
America<br />
12
Braz<strong>in</strong>g market<br />
Ch<strong>in</strong>a<br />
2006 2010e 2015e<br />
18<br />
82<br />
World<br />
World market / Ch<strong>in</strong>a<br />
Ch<strong>in</strong>a<br />
22<br />
€280m €300m €350m<br />
Ch<strong>in</strong>a CAGR 2005-2015: 7.7%<br />
(RoW 1.0%)<br />
78<br />
World<br />
Ch<strong>in</strong>a<br />
26<br />
74<br />
World<br />
13
Strong strategic position as the<br />
lead<strong>in</strong>g Ch<strong>in</strong>ese Braz<strong>in</strong>g player<br />
Local base: Umicore <strong>Technical</strong><br />
<strong>Materials</strong> Yangzhong (UTMY)<br />
• 412 employees<br />
#1 position <strong>in</strong> Ch<strong>in</strong>ese braz<strong>in</strong>g<br />
market particularly <strong>in</strong> HVAC segment<br />
Growth through domestic and export<br />
markets<br />
Introduction of Umicore technology<br />
Products: Ag, CP, CU, bronze, brass<br />
wire, rods, preforms<br />
Umicore customers:<br />
• Domestic 85%<br />
• Export 15%<br />
Yangzhong<br />
Site view<br />
14
Grow<strong>in</strong>g <strong>in</strong> Ch<strong>in</strong>a:<br />
Contact <strong>Materials</strong>
Contact <strong>Materials</strong> products and customer<br />
<strong>in</strong>dustries<br />
Broad range of high-quality contact materials for both electro-technical<br />
<strong>in</strong>dustry and lead<strong>in</strong>g <strong>in</strong>novative global and local fabricators<br />
tips<br />
profiles<br />
wires<br />
specialty<br />
forms<br />
rivets<br />
contact<br />
parts<br />
16
A lead<strong>in</strong>g global contact player<br />
Other<br />
27%<br />
D 9%<br />
Market size of €160m<br />
C 10%<br />
B 15%<br />
Umicore<br />
21%<br />
A 18%<br />
Umicore’s historical strength has<br />
been <strong>in</strong> Europe<br />
South American market<br />
presence also strong<br />
Strategic focus on <strong>in</strong>creas<strong>in</strong>g<br />
presence <strong>in</strong> Ch<strong>in</strong>a<br />
17
Market Contact <strong>Materials</strong><br />
Ch<strong>in</strong>a<br />
2006 2010e 2015e<br />
16<br />
84<br />
World<br />
World market / Ch<strong>in</strong>a<br />
Ch<strong>in</strong>a<br />
20<br />
€160m €190m €225m<br />
Ch<strong>in</strong>a CAGR 2005-2015: 8.1%<br />
(RoW 2.8%)<br />
80<br />
World<br />
Ch<strong>in</strong>a<br />
23<br />
77<br />
World<br />
18
Needed position as local CM producer<br />
Local base: Umicore <strong>Technical</strong><br />
<strong>Materials</strong> Suzhou (UTMS)<br />
• 160 employees<br />
Domestic and <strong>in</strong>ternational<br />
customers as platform for market<br />
penetration (strong growth<br />
expectations)<br />
Aim to grow Asian revenues x12 by<br />
2015<br />
Use of local technology <strong>in</strong> first phase<br />
Products: Rivets, wires, strips, tips<br />
Umicore customers:<br />
• Domestic 100%<br />
Suzhou<br />
Site view new plant<br />
19
BrazeTec and Contact <strong>Materials</strong> <strong>in</strong> Ch<strong>in</strong>a<br />
A Summary:<br />
Participate <strong>in</strong> attractive Ch<strong>in</strong>ese growth market<br />
Supply to exist<strong>in</strong>g key <strong>in</strong>ternational customers <strong>in</strong> Ch<strong>in</strong>a<br />
W<strong>in</strong> new <strong>in</strong>ternational customers <strong>in</strong> Ch<strong>in</strong>a<br />
Site with cost leadership complementary to exist<strong>in</strong>g sites<br />
Safeguard our positions <strong>in</strong> other important regions<br />
Prevent Ch<strong>in</strong>ese competitors from penetrat<strong>in</strong>g our traditional markets<br />
Export to other countries<br />
Above average <strong>in</strong>crease <strong>in</strong> revenue and profit<br />
20
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