Full Year 2025 Umicore SA Earnings Call

Operator: Umicore Full Year Results 2025 Conference Call. Your speaker for this call will be Bart Sap, CEO, and Wannes Peferoen, CFO. For the first part of the conference, the participants will be in listen-only mode. During the question and answer session, the analysts joining the call are able to ask questions by clicking on the Raise Your Hand button on the player. I will now hand the conference over to the speakers. Please go ahead.

Speaker #1: Umicore full-year results 2025 conference call. Your speakers for this call will be Bart Sap, CEO, and Wannes Peferoen, CFO. For the first part of the conference, participants will be in listen-only mode.

Speaker #1: During the question-and-answer session, the analysts joining the call are able to ask questions by clicking on the raise-your-hand button on the player. I will now hand the conference over to the speakers.

Speaker #1: Please go ahead.

Bart Sap: Good morning, everyone, and welcome to the Full Year Results 2025 of Umicore. As you can see here, of course, we have taken this picture, a beautiful gold nugget, and I think for the ones following us will understand why we have put that picture forward. Of course, I'll be coming back on that later, when I look back on 2025. Now, if you read our set of numbers, I would like to highlight again that we have adjusted during the CMD a new reporting structure, a different segmentations in our business group. Please do have another good look at this slide, because we will be reporting and commenting the numbers in the new structure.

Speaker #2: Good morning, everyone, and welcome to the full-year results 2025 of Umicore. As you can see here, of course, we have taken this picture—a beautiful gold nugget—and I think for the ones following us, you will understand why we have put that picture forward.

Speaker #2: And of course, I'll be coming back on that later, when I look back on 2025. Now, if you read our set of numbers, I would like to highlight again that we have adjusted, during the CMD, a new reporting structure: a different segmentation and/or business groups.

Speaker #2: So please do have another good look at this slide, because we will be reporting and commenting on the numbers in the new structure. So Wannes is sitting here on the left with me.

Bart Sap: So Wannes is sitting here on the left with me, and he will also comment, of course, on the finance and some of the business trends as well as usual. Let's have a short look at the agenda. So nothing particular here. First of all, we go on the core strategy, the key numbers. We go over the outlook, ultimately for 2026, and then hopefully have an engaging Q&A at the end of the session. Yes. Our core strategy. Now, we launched our core strategy in March 2025, where we indeed had a different approach and not just chasing growth at any cost, much more towards that value recovery and battery materials, but also more value extraction in our foundation businesses.

Speaker #2: And he will also comment, of course, on the finance and some of the business trends as well, as usual. And let's have a short look at the agenda.

Speaker #2: So, nothing special, particular here. First of all, we go on the core strategy. The key numbers, we go over the outlook, ultimately for 2026, and then hopefully have an engaging Q&A at the end of the session.

Speaker #2: Yes. Our core strategy. Now, we launched our core strategy in March 2025, where we indeed had a different approach, and not just chasing growth at any cost—much more towards value recovery and battery materials, but also more value extraction in our foundation businesses.

Speaker #2: And roughly around the time that we were announcing our, our CMD—right, our new strategy—the world started to move, violently, I would say.

Bart Sap: Roughly around the time that we were announcing our CMD, right, our new strategy, the world started to move violently, I would say. The geopolitical landscape has been changing fundamentally. Therefore, also the markets as well as supply chains have been reshaped and continue to be influenced by new policies coming out. The world is structurally different, well, versus roughly a year ago. Volatility is, for the time being, the new normal, and we will continue to navigate and, of course, react and adjust according to the volatility that we see.

Speaker #2: And the geopolitical landscape has been changing fundamentally. And, therefore, also, the markets as well as supply chains have been reshaped and continue to be influenced by new policies coming out.

Speaker #2: So, the world is structurally different now, well, versus roughly a year ago. Volatility is, for the time being, the new normal, and we will continue to navigate and, of course, react and adjust accordingly to the volatility that we see.

Speaker #2: Now, if I zoom out and see what's happening in the world, it's clear that we have a much more fragmented world, and that the world is waking up to the fact that, if you want to be a technology leader, if you want to have a strong economy going forward, you need these critical raw materials.

Bart Sap: Now, if I zoom out and see what's happening in the world, it's clear that we have a much more fragmented world, and that the world is waking up that, if you want to be a technology leader, if you want to have a strong economy going forward, you need these critical raw materials. You need to have your own supply chains, and that's where Umicore's circular business model, which is multi-metal, on the one hand, on the recycling, refining side, but also on the materials that activate the world's downstream, the application downstream, is more relevant than ever. So having a secure and sustainable supply chain in different parts of the world becomes a key element for society. And this is right up the alley of our strategy, and we paired our business model with four key pillars: capital, performance, people and culture, and partnerships.

Speaker #2: You need to have your own supply chains, and that's where Umicore's circular business model—which has multi-metal, on the one hand, on the recycling and refining side, but also on the materials that activate the world's downstream, the application downstream—is more relevant than ever.

Speaker #2: So, having a secure and sustainable supply chain in different parts of the world becomes a key element for society. And this is right up the alley of our strategy, and we paired our business model with four key pillars.

Speaker #2: Capital, performance, people and culture, and partnerships. And let me now highlight some of the achievements that we had in these different segments over the years, and some of the actions that we took.

Bart Sap: Let me now highlight some of the achievements that we had in these different segments over the years and some of the actions that we took. First of all, on the capital, and that was the first picture of the presentation. Obviously, we sold and had a subsequent lease in our permanent gold inventories. This has unlocked significant value. This also has helped further to deleverage the company, but also it transitions the price risk, the long-term price risk of these inventories outside of Umicore. Now, we also said at that time, that lease rates for gold are typically stable.

Speaker #2: First of all, on the capital—and that was the first picture of the presentation—obviously, we sold and had a subsequent lease-in of permanent gold inventories.

Speaker #2: This has unlocked significant value. This also has helped further to deleverage the company. But also, a transition—the price risk, the long-term price risk of these inventories—outside of Umicore.

Speaker #2: Now, we also said at that time that lease rates for gold are typically stable. It's an alternative versus cash or pure money in the end.

Bart Sap: It's an alternative versus cash or pure money in the end, and even in that volatility and that frenzy, let's say, around PGMs at this point in time, also, lease rates for gold have remained stable at 0.5 to 1%, well below typical financing rates that you would expect for normal debts. Now, next to the gold, we also have been very disciplined on our CapEx. Remember, we guided at the start of the year, more to EUR 400 million; in the end, we came in at EUR 310 million by making deliberate choices, but also being very strict on the execution of the projects that we are having.

Speaker #2: And even in that volatility, and that frenzy, let's say, around PGMs at this point in time, also, lease rates for gold have remained stable at 0.5 to 1%, well below a typical financing rate that you would expect for normal debt.

Speaker #2: Now, next to the gold, we also have been very disciplined on our capex. Remember, we guided at the start of the year more to €400 million.

Speaker #2: In the end, we came in at €310 million by making deliberate choices, but also being very strict on the, on the execution of the projects that we are having.

Speaker #2: If I go to the Performance pillar, there the full-year results are in line with our latest upgraded guidance, so we set between 790 and 840 during December.

Bart Sap: If I go to the performance pillar, there, the full year results is in line with our latest upgraded guidance, so we said between EUR 790 million and 840 million during December. We came out slightly above that, EUR 840 million, so we're very satisfied with this set of numbers. A strong performance, I would say. And this was really, really also supported by the efficiencies, targets, and the mindsets that we are cultivating more and more within Umicore. And we promised EUR 100 million. We achieved that target, and Wannes will explain later on, of course, that this helped to offset the inflation, but also some FX headwinds that we had in 2025. So I mentioned it already. We're driving the company much more to a performance culture, where we take our accountability. We really focus on what is the essence.

Speaker #2: We came out slightly above that, at 840, so we're very satisfied with this set of numbers—a strong performance, I would say. And this was really, really also supported by the efficiencies, targets, and the mindset that we are cultivating more and more within Umicore. And we promised €100 million; we achieved that target. Wannes will explain later on, of course, that this helped to offset the inflation, but also some FX headwinds that we had in 2025.

Speaker #2: So, I mentioned it already, we're driving the company much more to a performance culture, where we take our accountability. We really focus on what is the essence.

Speaker #2: We do what we need to do in a very disciplined way, and this is showing results, and we will continue to push forward in that direction.

Bart Sap: We do what we need to do in a very disciplined way, and this is showing results. We will continue to push forward in that direction. On the partnerships, we also have not been sitting still, I would say. We had quite some action there as well. We closed a partnership around our silicon anode materials with a Korean company, HS Hyosung Advanced Materials. Together with them, we will industrialize this. It's an interesting and exciting technology, and we found a way, actually, to bring that technology to the market without having to allocate excessive cash or very sizable amounts of cash for Umicore. Next to that, critical raw materials. We have been working on that front, of course, already for quite a while, and we announced our partnership with STL, Société pour le Traitement du Terril de Lubumbashi, huh?

Speaker #2: On the partnerships, we also have not been sitting still, I would say. We had quite some action there as well. And, we closed a partnership around our silicon anode materials.

Speaker #2: We have a Korean company, HS Hewson Advanced Materials, and together with them, we will earn, industrialize this. Really, it is interesting and exciting technology, and we found a way, actually, to bring that technology to the market without having to allocate excessive cash, or very sizable amounts of cash, for Umicore.

Speaker #2: Next to that, critical raw materials. We have been working on that trend, of course, al-already for quite a while. And we announced our partnership with STL, Société de Terreau de Lumumba Chi, so basically, we have shared technologies, have upgraded installations in the DRC, in order to recover germanium from old mining tailings.

Bart Sap: Basically, we have shared technologies, have upgraded installations in the DRC in order to recover germanium from old mining tailings. This was really a support for the business growing in 2025 and beyond. Now, let me go to the key figures. One is we'll go in more detail, so I'll stay pretty high level here. I would say we really had a strong performance in our foundation business. It was supported by group-wide operational excellent efforts and a favorable metal price environment. EBITDA up 11% to EUR 847 million, 24% EBITDA margin, a good free cash flow supported by the gold inventory sales of EUR 524 million, and leverage of 1.6. I think we can all agree, this is a very solid set of numbers in the current environment that we live in. Happy with that.

Speaker #2: And this was really a support for the business going, in '25 and beyond. Now, let me go to the key figures. Wannes will go in more detail, so I'll stay pretty high-level here.

Speaker #2: I would say we really had a strong performance in our foundation business. It was supported by group-wide operational excellence efforts and a favorable metal price environment.

Speaker #2: EBITDA up 11% to 847, 24% EBITDA margin, a good free cash flow supported by the gold inventory sales of 524, 524 million, and leverage of 1.6.

Speaker #2: I think we can all agree this is a very solid set of numbers in the current environment that we live in, so happy with that.

Speaker #2: Let me now go to the different business groups. Let's start off with Battery Material Solutions. So for your reference, Battery Material Solutions now represents, on the one hand, battery cathode materials, and the battery recycling business.

Bart Sap: Let me now go to the different business groups. Let's start off with Battery Materials Solutions. So for your reference, Battery Materials Solutions now represents, on the one hand, battery cathode materials and the battery recycling business. And before I go in the details of the different business units, I would like to have another glance at the battery cathode materials and EV markets, markets out there at this point in time. So at the CMD in March 2025, we said that this market is still taking shape and has inherent volatility. Well, that's what we have seen in 2025 and also what we continue to see in 2026, huh? EV penetration around the globe is progressing, but at quite different speeds, huh?

Speaker #2: And before I go into the details of the different business units, I would like to have another glance at the battery cathode materials and EV markets—markets out there at this point in time.

Speaker #2: So at the CMD in March 2025, we set that, this market, is still taking shape and has inherent volatility, well, that's what we have seen in 2025, and also what we continue to see in 2026, EV penetration around the globe, is progressing, but at quite different speeds, China leading decisively, Europe, is following, more moderate, and the US, well, they're actually we are be we are quite behind.

Bart Sap: China leading decisively, Europe is following, more moderate, and US, well, there, actually, we are quite behind. And of course, the policy change of the US, of the new US administration is not helping with that. The CO2 tolerance is much higher than in previous administrations. That is clear. And that's why the policy is shifting and pivoting away, I even would have to say, from EVs to internal combustion engines, right? This clearly has an impact, and you have seen announcements that even battery makers in the US are now focusing more on energy storage than pure EVs. And of course, quite a number of OEMs have had to make difficult announcements.

Speaker #2: And of course, the policy change of the US, of the new US administration, is not helping with that. The CO2 tolerance is much higher than in previous administrations.

Speaker #2: That is clear. And that's why the policy is shifting and pivoting away, I even would have to say, from EVs to internal combustion engines, right?

Speaker #2: This clearly has an impact, and you have seen announcements that even battery makers in the US are now focusing more on energy storage than pure EVs. And, of course, quite a number of OEMs have had to make difficult announcements.

Speaker #2: If I look to Europe and China, that's really a, and it's depicted here as well with an arrow. That's really an area where there's an interdependency.

Bart Sap: If I look to Europe and China, that's really, it's depicted here as well with, with an arrow, that's really an area where there's an interdependency. Today, we see that China still has overcapacity, that a lot of OEMs are relying on China to import their batteries into Europe. Also, for cathode material, we still see cathode material flowing into Europe at, at this point in time. So competition is fierce. I think that is fair to say. Now, at the same time, we also see that there's a heightened risk of trade tensions, of potential restrictions of exports of certain technologies by the Chinese government on the one hand, but also in Europe, a much stronger talk about these local resilient supply chains and local content requirements. So the next days, the EU is expected to come out with some policies.

Speaker #2: Today, we see that China still has overcapacity. A lot of OEMs are relying on China to import their batteries into Europe. Also, for cathode material, we still see cathode material flowing into Europe at this point in time.

Speaker #2: So, competition is fierce—I think that is fair to say. Now, at the same time, we also see that there’s a heightened risk of trade tensions.

Speaker #2: Of potential restrictions of exports of certain technologies by the Chinese government, on the one hand, but also in Europe, a much stronger talk about these local, resilient supply chains and local content requirements.

Speaker #2: So, the next days, the EU is expected to come out with some policies. These will be important; to monitor those and could really make a substantial difference in the European landscape.

Bart Sap: These will be important to monitor those and could really make a substantial difference in the European landscape. So in general, summarizing, the recent industry announcements are emphasizing that the growth in Europe, but, is somewhat challenging, but it also highlights the increased importance of our take-or-pay, contracts, and I'll get back to that. Now, going to the numbers. So if we look in 2025 for battery cathode materials, we did see a revenue growth, a revenue growth of roughly 11% versus 2024. Volumes, actual deliveries, were up versus last year. We did collect take or pay compensations for contractual volume shortfall. And there was a partial offset by lower refining income because of a weaker, more challenging cobalt environment on the pure refining side.

Speaker #2: So, in general, summarizing the recent industry announcements, they are emphasizing the growth in Europe. But, it is somewhat challenging. However, it also highlights the increased importance of our take-or-pay contracts.

Speaker #2: And I'll get back to that. Now, going to the numbers. So if we look in 2025 for battery cathode materials, we did see a revenue growth.

Speaker #2: A revenue growth of roughly 11% versus 2024. Volumes—actual deliveries—were up versus last year. We did collect take-or-pay compensations for contractual volume shortfall, and there was a partial offset by low refining income because of a weaker, more challenging cobalt environment on the pure refining side.

Speaker #2: And also, of course, the nickel price environment was not necessarily beneficial. Now, the adjusted EBITDA, as per our expectation, came in around break-even, which is a clear improvement versus last year, where the break-even result was still containing a substantial one-off, a positive one-off, in 2024.

Bart Sap: And also, of course, the nickel price environment was not necessarily beneficial. Now, the adjusted EBITDA, as per our expectation, came in around breakeven, which is a clear improvement versus last year, where the breakeven result was still containing a substantial one-off, a positive one-off in 2024. Now, if you look at battery recycling solutions during the CMD, we said we would be roughly at -25. We came in at -21. Really also here, we continue to focus on optimizing our process and recycling technology. At the same time, we're also very diligent here on the execution and cost management. But overall, you can see a clear also improvement on the EBITDA level, 2024 versus 2025, despite that we did not have that one-off in there.

Speaker #2: Now, if you look at battery recycling solutions, during the CMD we said we would be roughly at minus 25. We came in at minus 21.

Speaker #2: Really, also here we continue to focus on optimizing our process and recycling technology. At the same time, we're also very diligent here on the execution and cost management.

Speaker #2: Overall, you can see a clear improvement at the EBITDA level: '24 versus '25, despite that we did not have that one-off in there.

Speaker #2: All right. Let's go to the next business group, and that's Catalysis. In good tradition, we also always start with an overview of the internal combustion passenger car production numbers.

Bart Sap: All right, let's go to the next business group, and that's Catalysis. In good tradition, we also always start with an overview of the internal combustion passenger car production numbers. And here we see that 2025 is slightly lower than 2024. It's not a substantial drop, actually. It's -0.7%. Europe was more down. At the same time, South America, but, and China, these regions even further progressed. If I then look at the HDD segment. Europe, a slight decline, but a positive evolution in China of 7.1% growth. Of course, starting from a relatively low base as the previous quarters, or actually the last quarters in 2024 were not strong. Now, looking at the numbers, a solid set of numbers.

Speaker #2: And here we see that '25 is slightly lower than '24. It's not a substantial drop, actually—it's minus 0.7%. Europe was more down. At the same time, South America and China—these regions even further progressed.

Speaker #2: If I then look at the HDD segment, Europe shows a slight decline, but there is a positive evolution in China with 7.1% growth. Of course, that's starting from a relatively low base, as the previous quarters—or actually the last quarters in 2024—were not strong.

Speaker #2: Now, looking at the numbers—a solid set of numbers—we see a sustained demand for our products throughout the business group, in a volatile market, I would say; so, in an overall challenging economic backdrop.

Bart Sap: We see a sustained demand for our products throughout the business group in a volatile market, I would say, so in an overall challenging economic backdrop. At the same time, we also continue to focus on our operational excellence as we have been doing for the last years, and we're getting increasingly better at this year after year. Now, if I look to the autocats, our volumes in autocats were strong. We outperformed the ICE, so the internal combustion engine, light-duty vehicle market, which reflects our strong position, but also the focus, as I mentioned, of operational excellence and efficiency is really part of the DNA. We continue further footprint consolidation, among others in Asia, where we have taken decisions around our Japanese operations.

Speaker #2: At the same time, we also continue to focus on our operational excellence, as we have been doing for the last years, and we're getting increasingly better at this year after year.

Speaker #2: Now, if I look to the AutoCATs, our volumes in AutoCAT were strong. We outperformed the ICE, so the internal combustion engine light-duty vehicle market, which reflects our strong position.

Speaker #2: But also, the focus, as I mentioned, on operational excellence and efficiency is really part of the DNA. We continue further footprint consolidation, among others in Asia.

Speaker #2: We have, where we have taken decisions around our Japanese operations. Precious metals chemistry, that follows to a certain degree, of course, with automotive catalyst business, with the inorganic chemicals that are supplier of the inorganic solutions to the automotive catalyst business.

Bart Sap: Precious metals chemistry, that follows to a certain degree, of course, on automotive catalyst business with the inorganic chemicals. They're the supplier of the inorganic solutions to the automotive catalyst business. So also a growing, a strong performance there. A good set, of course, PGM price support, helping this business also forward. Now, our homogeneous catalyst business, which is selling typically in the broader chemical industry, we saw some softness in line with the overall chemical industry pain that we're all going through. Fuel cells and stationary catalysts, the earnings clearly improved. We had higher deliveries for our fuel cell catalyst solutions. We also are on track with our proton exchange membrane fuel cell plant in China, expected to start production in the course of 2026.

Speaker #2: So also a going a strong performance there. A good set of, of course, PGM price support helping this business also forward. Now, our homogeneous catalyst business, which is selling typically in the broader chemical industry, we saw some softness in line with the overall chemical industry pain that we're all going through.

Speaker #2: Fuel cells and stationary catalyst—the earnings clearly improved. We had higher deliveries for our fuel cell catalyst solutions. We also are on track with our proton exchange membrane fuel cell plant in China, expected to start production in the course of 2026.

Speaker #2: On the stationary catalyst side of things, we do see a strong demand for backup power solutions, and exhaust for these backup power solutions, specifically for data centers in the context of the high demand of the AI companies, the AI applications.

Bart Sap: On the stationary catalyst side of things, we do see a strong demand for backup power solutions and exhaust for these backup power solutions, specifically for data centers in the context of the high demand of the AI companies, the AI application. Catalysis, EBITDA margin, 27%. Recycling. Well, you cannot talk about recycling, unless you talk about the metal prices, and here you can, of course, see that metal prices in 2025 are significantly higher than 2024. You know, that Umicore, that we decided to hedge quite a number of our, quite an amount of our exposure forward. Why? It creates visibility, it stabilizes earning profile, and it also protects against downside risk.

Speaker #2: So, catalysis, EBITDA margin 27%. Recycling—well, you cannot talk about recycling unless you talk about the metal prices. And here you can, of course, see that metal prices in 2025 are significantly higher than in 2024.

Speaker #2: You know that, at Umicore, we decided to hedge quite a number of our—quite an amount of our exposure forward. Why? It creates visibility.

Speaker #2: It stabilizes the earnings profile, and it also protects against downside risk. That means if the price environment rallies beyond the average hedge price, indeed, you have some opportunity loss, but still, today, we're very happy with these hedges.

Bart Sap: That means if the price environment rallies beyond the average hedge price, indeed, you have some opportunity loss, but still today, we're very happy with these hedges. Now, on the remaining open exposure, of course, there's a positive upside of stronger PGM prices to the overall earnings of the business group segment. Now, if we look at the overall set of numbers for the business group, we see an advancement in the revenues at the same time, a stable EBITDA performance with a 39% EBITDA margin. So in precious metals refining, our revenues were in line with previous years. The metal price environment was supportive. We had good volumes.

Speaker #2: Now, on the remaining open exposure, of course, there’s a positive upside of stronger PGM prices to the overall earnings of the business group segment.

Speaker #2: Now, if we look at the overall set of numbers for the business group, we see an advancement in the revenues. At the same time, a stable EBITDA performance with a 39% EBITDA margin.

Speaker #2: So in precious metals, refining, our revenues were in line with previous years. The metal price environment was, supportive. We had good volumes. there were, of course, we had some average, hedge rates decreasing, year on year, which was a, a backdrop or actually a, yeah, a drag, let's say, on on the results as such.

Bart Sap: Of course, we had some average hedge rates decreasing year on year, which was a backdrop or actually a yeah, a drag, let's say, on the results as such. The overall mix was somewhat less favorable. Still, a very strong set of numbers for precious metals refining. We had some slight temporary process inefficiencies, which will no longer be there in 2026, but we were able to offset these by solid contributions from our operational excellence and cost-saving efforts also in this business unit. Jewelry and industrial metals, I mean, the central theme here is gold, gold recycling, gold processing. I mean, really a very strong market, strong revenue growth, and also a good margin expansion.

Speaker #2: The overall mix was somewhat less favorable. Still, a very strong set of numbers for precious metals refining. We had some slight, temporary process inefficiencies, which will no longer be there in 2026.

Speaker #2: But we were able to offset these by solid contributions from our operational excellence and cost-saving efforts, also in this business unit. Journey and industrial metals—I mean, the central theme here is gold.

Speaker #2: Gold recycling, gold processing—I mean, really a very strong market, strong revenue growth, and also a good margin expansion. So this business is also doing really well, basically, on the gold's evolution and the gold focus, which is there in the market.

Bart Sap: This business also is doing really well on basically the gold evolution and the gold focus, which is there in the market. Precious metals management, well, we've talked about already, volatility in precious metals prices is an excellent market environment to trade and make trading gains. This business unit also performed really strong. Next business group would be specialty materials, and specialty materials is maybe a business group which is sometimes a bit underrepresented or underappreciated, maybe by the market, and maybe we should also further strengthen our communication on this business group because it has a couple of beautiful gems in there. If I look at the business group here, a 16% EBITDA growth in 2025. EBITDA margin approaching 20%.

Speaker #2: Precious metals management, well, we've talked about it already. Volatility in precious metals prices—it's an excellent market environment to trade and make trading.

Speaker #1: Gains. So this business unit also performed really strong. Next business group would be Specialty Materials, and Specialty Materials is maybe a business group which has sometimes a bit...

Speaker #1: Yeah , underrepresented or underappreciated . Maybe by the markets or and maybe we should also further strengthen our communication on this business group because it has a couple of beautiful gems in there .

Speaker #1: If I look at the business group here , 16% EBITDA growth and in 2025 EBITDA margin approaching 2,020% , cobalt and Specialty Materials , there was support of cobalt , where we saw a better momentum for cobalt premium products right .

Bart Sap: Cobalt and specialty materials, there was a support of a cobalt trend where we saw a better momentum for cobalt premium products, right? And also here, again, efficiency. You've understood by now that efficiency is really part of our overall performance, and that's why we continue to stress it. If I look at electro-optic materials, there we have seen that China has taken a stronger stance on exports, and not a lot of germanium has left China in the course of 2025. We have this joint venture with, for instance, Société, so with STL, basically, which I highlighted earlier. And this allowed us also to continue to supply our customers in a very strong germanium price market, added by our closed loop refining and recycling services that we have.

Speaker #1: And also here again, efficiency. You've understood by now that efficiency is really part of our overall performance. And that's why we continue to stress it.

Speaker #1: If I look at electric optic materials, we have seen that China has taken a stronger stance on exports, and not a lot of germanium has left China in the course of 2025.

Speaker #1: We have this joint venture with , for instance , the STL , basically , which I highlighted earlier . And this allowed us also to continue to supply our customers in a very strong germanium price market added by our closed loop refining and recycling services that we have .

Speaker #1: So electric optic materials sees strong top-line growth at the end of the year, and we continue. We expect to continue to see that growth also in 2026.

Bart Sap: So electronic materials sees strong top line growth at the end of the year, and we expect to continue to see that growth also in 2026, so one to watch going forward. Metal deposition solutions, I would say overall, a good, stable performance with a different mix between the business groups, but, yeah, also pretty good there. So I think this is where I would like to leave it at this point in time and hand over to Jonas.

Speaker #1: So, one to watch going forward. Metal deposition solutions, I would say, overall a good, stable performance with a different mix between the business groups.

Speaker #1: But yeah, also pretty good there. So I think this is where I would like to leave it at this point in time.

Speaker #1: And hand towards to us . Thank you , Bart , and good morning everyone . Today we'll start with EBITDA before moving on to cash flow .

Wannes Peferoen: Thank you, Bart, and good morning, everyone. Today we'll start with EBITDA before moving on to cash flow, net debt, the P&L, and balance sheet. Adjusted EBITDA was up 11%, reaching EUR 847 million, driven by volume growth across all businesses and efficiency savings. This broad-based growth resulted in EUR 125 million of EBITDA contribution. We also delivered EUR 100 million of efficiency benefits, which more than offset inflation of EUR 68 million. Metal results declined by EUR 17 million due to favorable hedges rolling off. This was partially offset by increased prices for precious and platinum group metals, as well as minor metals for the remaining open or unhedged position. There was a headwind from foreign exchange of around EUR 45 million, largely due to translational effects as the euro strengthened.

Speaker #1: Net debt . The PNL and balance sheet , adjusted EBITDA was up 11% , reaching 847 million , driven by volume growth across all businesses and efficiency savings .

Speaker #1: This broad-based growth resulted in €125 million of EBITDA contribution. We also delivered €100 million of efficiency benefits, which more than offset inflation of €68 million.

Speaker #1: Metal results declined by €17 million due to favorable hedges rolling off. This was partially offset by increased prices for precious and platinum group metals, as well as minor metals for the remaining open or unhedged position.

Speaker #1: There was a headwind from foreign exchange of around €45 million, largely due to translational effects, as the euro strengthened. Adjusted EBITDA margin improved from 22% to 24%, in line with our Capital Markets Day target of more than 23%.

Wannes Peferoen: Adjusted EBITDA margin improved from 22% to 24%, in line with our capital markets day targets of more than 23%. Now, zooming in on our efficiency program. We delivered EUR 100 million of efficiency benefits in line with our target. 25% came from top line growth, 20% was due to a reduction in cost of goods sold, and 55% came from a reduction in SG&A, in research and development, in particular in battery material solutions, catalysis, and corporate. Headcount in the group reduced 3%. Turning to cash flow. Cash flow from operations before changes in working capital amounted to EUR 1.1 billion. This was supported by cash proceeds of EUR 525 million from the sale and subsequent leasing of the permanent gold inventory in recycling. We finalized this transaction in October last year.

Speaker #1: Now , zooming in on our efficiency program , we delivered 100 million of efficiency benefits in line with our target 25% gain from top line growth , 20% was due to a reduction in cost of goods sold , and 55% came from a reduction in SG&A in research and development .

Speaker #1: In particular in battery material solutions , catalysis and corporate headcount in the group . Reduced 3% . Turning to cash flow . Cash flow from operations before changes in working capital amounted to €1.1 billion .

Speaker #1: This was supported by cash proceeds of €525 million from the sale and subsequent leasing of the permanent gold inventory in recycling. We finalized this transaction in October last year.

Speaker #1: It enabled us to unlock significant value , strengthen our balance sheet and reduce finance costs , net working capital , increased by 298 million , mainly as a result of higher activity and to some extent , increased metal prices .

Wannes Peferoen: It enabled us to unlock significant value, strengthen our balance sheet, and reduce finance costs. Net working capital increased by EUR 298 million, mainly as a result of higher activity, and to some extent, increased metal prices. The significant reduction in CapEx, down to EUR 310 million, demonstrates our capital discipline. This reduction is most prominent in battery cathode materials, where we are leveraging footprint flexibility and phasing our spending. Free cash flow from operations was EUR 524 million. Moving to the net cash flow bridge and net debt. The free operating cash flow largely covered the EUR 250 million equity injection into our joint venture, Ionway, in January 2025, as well as taxes, interest, and dividends paid.

Speaker #1: The significant reduction in CapEx down to 310 million , demonstrates our capital discipline . This reduction is most prominent in battery cathode materials , where we are leveraging footprint , flexibility and phasing our spending .

Speaker #1: Free cash flow from operations was 524 million . Moving to the net cash flow bridge and net debt , the free operating cash flow largely covered the 250 million equity injection into our joint venture , in January 25th , as well as taxes , interests and dividends paid in January this year .

Speaker #1: After the year end, Umicore and Powerco each contributed an additional €175 million to the Iron Way joint venture. Net debt reduced slightly to €1.4 billion, resulting in a leverage of 1.6 times adjusted EBITDA, down from 1.9 times at the end of '24.

Wannes Peferoen: In January this year, after the year-end, Umicore and PowerCo each contributed an additional EUR 175 million to the Ionway joint venture. Net debt reduced slightly to EUR 1.4 billion, resulting in a leverage of 1.6 times adjusted EBITDA, down from 1.9 times at the end of 2024. This is well below the anticipated peak of 2.5 times as we focus on capital discipline and maintaining a solid balance sheet. Looking at the consolidated P&L, adjusted EBIT improved by 21% to EUR 579 million. Adjusted net finance costs of EUR 173 million were up EUR 65 million, mostly due to lower interest income on cash as rates came down and a negative impact from foreign exchange. Adjusted tax charges were in line with the prior year.

Speaker #1: This is well below the anticipated peak of 2.5 times, as we focus on capital discipline and maintaining a solid balance sheet. Looking at the consolidated P&L, adjusted EBIT improved by 21% to €579 million.

Speaker #1: Adjusted net finance costs of €173 million were up €65 million, mostly due to lower interest income on cash as rates came down, and a negative impact from foreign exchange. Adjusted tax charges were in line with the prior year. Pre-tax income was slightly up, but the adjusted effective tax rate came down from 29% to 26%.

Wannes Peferoen: Pre-tax income was slightly up, but the adjusted effective tax rate came down from 29% to 26%. Adjusted net income of EUR 288 million was up EUR 33 million, and adjusted earnings per share were up 13% at EUR 1.20. We are proposing a dividend of EUR 0.50 per share, in line with last year and with our policy of a stable or rising dividend. This represents a payout ratio of 42%. Adjustments to EBITDA amounted to EUR 365 million. As I said earlier, we optimized our business model in recycling by selling the permanent gold inventory and replacing it by revolving leases. This generates a pre-tax gain of EUR 486 million. This was partly offset by an impairment of our joint venture participation in Element Six and provisions related to specific restructuring programs.

Speaker #1: Adjusted net income of 288 million was up 33 million , and adjusted earnings per share were up 13% at €1.2 . We are proposing a dividend of $0.50 per share , in line with last year and with our policy of a stable or rising dividend in this represents a payout ratio of 42% .

Speaker #1: Adjustments to EBITDA amounted to €365 million. As I said earlier, we optimized our business model in recycling by selling the permanent gold inventory and replacing it with revolving leases.

Speaker #1: This generates a pre-tax gain of €486 million. This was partly offset by an impairment of our joint venture participation in Element Six and provisions related to specific restructuring programs. Adjustments to net result include the decrease or addition of a previously recognized deferred tax asset, and a tax impact of the gold inventory sale.

Wannes Peferoen: Adjustments to net result include a de-recognition of a previously recognized deferred tax asset and the tax impact of the gold inventory sale. Net income was EUR 385 million, compared to minus EUR 1.5 billion in the prior year, when there was an impairment charge for battery cathode kilos. There was a big improvement in return on capital employed, from 12.3% to 15.7%. Now, turning to the consolidated balance sheet, our liquidity remains robust, with cash of EUR 1.6 billion after repaying a EUR 500 million convertible bond in June. As I said earlier, net debt was stable at EUR 1.4 billion, and the leverage ratio came down from 1.9 to 1.6 by the end of the year.

Speaker #1: Net income was $385 million, compared to negative $1.5 billion in the prior year, when there was an impairment charge for battery cathode materials.

Speaker #1: There was a big improvement in return on capital employed, from 12.3% to 15.7%. Now, turning to the consolidated balance sheet, our liquidity remains robust, with cash of €1.6 billion after repaying a €500 million convertible bond in June.

Speaker #1: And as I said earlier , net debt was stable at 1.4 billion and the leverage ratio came down from 1.9 to 1.6 in the by the end of the year , group equity improved to 2.3 billion , corresponding to a net gearing ratio of 37% .

Wannes Peferoen: Group equity improved to €2.3 billion, corresponding to a net gearing ratio of 37%. We have hedged a substantial portion of our metal exposure for 2026, 2027, and 2028, and we continue to look for opportunities to hedge further, in particular for 2029 and 2030, taking into account market interest and forward rates. To sum up, we delivered a strong performance in 2025 as a result of volume growth across the board, and €100 million of efficiency benefits. Adjusted EBITDA improved in every business, except recycling, where it was stable, and CapEx was well below the prior year. Selling the permanent gold inventory has given us additional headroom while reducing future finance costs, and we continue to focus on driving cost efficiencies, controlling working capital, and disciplined capital allocation in 2026.

Speaker #1: We have hedged a substantial portion of our metal exposure for '26, '27, and '28, and we continue to look for opportunities to hedge further.

Speaker #1: In particular for '29 and 2030, taking into account market interest and forward rates. So, to sum up, we delivered a strong performance in '25.

Speaker #1: As a result of volume growth across the across the board and 100 million of efficiency benefits . Adjusted EBITDA improved in every business except except recycling , where it was stable and CapEx was well below the prior year .

Speaker #1: Selling deployment in gold inventory has given us additional headroom while reducing future finance costs, and we continue to focus on driving cost efficiencies, controlling working capital, and disciplined capital allocation.

Speaker #1: In 26 , I will now hand it back to Bart . Thank you . Thank you for that overview . Very clear .

Wannes Peferoen: I will now hand it back to Bart. Thank you.

Bart Sap: Thank you, Wannes, for that overview. Very clear. Let's maybe have a look at the outlook for 2026. So, the essence basically is that we enter the year on a stronger footing, and if I look at the different business groups on catalysis, we continue to have a, yeah, a very strong performance in this business group. We see that continue into 2026, and we are happy with the state in which it is, and that's which will continue going forward. Recycling, I think the essence is that in the current favorable metal price environment, that we'll be able to offset the negative impact of the average lower hedged average lower hedged metal prices, as well as the shutdown, which is foreseen in 2026.

Speaker #2: Let's slide. Maybe have a look at the outlook for 2026. So the essence basically is that we entered the year on a stronger footing.

Speaker #2: And if I look at the different business groups on Catalysis, we continue to have a very strong performance in this business group.

Speaker #2: We see that continue into 2026, and we are happy with the state in which it is, and that it will continue going forward and recycling.

Speaker #2: I think the essence is that in the in the current favorable metal price environment , that we'll be able to offset the negative impact of the average lower hedged average , lower hedged metal prices , as well as the shutdown , which is foreseen in 2026 .

Speaker #2: So also moving on . Well , there specialty materials continued strong performance . We do expect we continue . We believe we're going to continue to see their top line growth amongst others in the germanium products , but also of supportive cobalt price environment will help to further support the results .

Bart Sap: Also moving on well there. Specialty materials, continued strong performance. We do expect we continue. We, we believe we going to continue to see their top line growth, amongst others, in the germanium products, but also a supportive cobalt price environment will help to further support the results. In battery materials, we continue to pursue the mid-term plan to recover the value, while at the same time we of course have to navigate a volatile and competitive market. We continue to focus on rigorous capital allocation. We're going to continue to lever our customer contracts with our take-or-pay commitments, on which we clearly say that the importance of these take-or-pay mechanisms is increasing, given the volume development that we see. In battery material solutions, we continue to be disciplined in our spending, broadly in line with 2025.

Speaker #2: And in battery materials, we continue to pursue the mid-term plan to recover value, while at the same time we, of course, have to navigate a volatile and competitive market.

Speaker #2: So we continue to focus on rigorous capital allocation . We're going to continue to leverage our customer contracts with or take or pay commitments on which we clearly say that the importance of the take or pay mechanisms is increasing , giving the volume development that we see .

Speaker #2: And in that Material Solutions, we continue to be disciplined in our spending, broadly in line with 2025 on corporate costs. We expect a slight increase because we continue to invest in AI-driven solutions to further enhance and support our operational excellence for capital expenditures.

Bart Sap: On corporate costs, we expect a slight increase because we continue to invest in AI-driven solutions to further enhance and support our operational excellence. For capital expenditures, we are expected to increase versus 2025, and this is mainly driven by a selective growth initiative in recycling. So engineering that we do for the decision we need to take around the expansion in Hoboken in our precious metals recycling business, that we will take in 2026, but also selective high quality growth investments in specialty materials. So on CapEx, we do expect to be in a range between this year and last year's guidance of EUR 400 million, with again a very good focus on disciplined execution.

Speaker #2: We are expected to increase versus 2025 , and this is mainly driven by a selective growth initiatives in recycling . So engineering that we do for the decision we need to take around the expansion in Hoboken in our precious metals recycling business , that we will take in 2026 , but also selective , high quality growth investments in in specialty materials .

Speaker #2: So on CapEx , we do expect to be in a in a range between this year and last year . Guidance of €400 million with again , a very good focus on disciplined execution .

Speaker #2: So, if I sum that up, I would say that we will not be providing a concrete guidance today. And this is because the market is still very dynamic, and we will have to continue to navigate that environment.

Bart Sap: So if I sum that up, I would say that we will not be providing a concrete guidance today, and this is because the market is still very dynamic, and we'll have to continue to navigate that environment. Yet, based on what we see today, we would expect adjusted EBITDA to further progress into 2026. Now, shortly wrapping up before we go into the Q&A, so... And this is also a shout-out to the teams. I think 2025 was really a pivotal year, and Umicore and the teams have shown great resilience. They have shown great discipline, also to focus on what our core is, and taking courageous actions to basically be able to deliver this strong set of numbers. It's fully in line with our core strategy execution. We're well on track.

Speaker #2: Yet, based on what we see today, we would expect adjusted EBITDA to further progress into 2026. Now, shortly wrapping up before we go into the Q&A.

Speaker #2: So, and this is also a shout-out to the teams, I think 2025 was really a pivotal year. And you and the teams have shown great resilience.

Speaker #2: They have shown great discipline. Also, to focus on what our core is and taking courageous, courageous actions to basically be able to deliver this strong set of numbers. It's fully in line with our core strategy execution.

Speaker #2: We're well on track. We're entering 2026 on a much stronger footing, and we will continue to build on the momentum of 2025, going into 2026.

Bart Sap: We're entering 2026 on a much stronger footing, and we will continue to build on the momentum of 2025 going into 2026. So really positive 2025, and with confidence, we go into 2026. And with that, we go to the Q&A.

Speaker #2: So, really positive 2025, and with confidence we go into 2026. And with that, we go to the Q&A.

Speaker #3: Ladies and gentlemen , if an analyst if an analyst sorry wishes to ask a question , please click on the Raise your Hand button on the player .

Wannes Peferoen: Ladies and gentlemen, if an analyst, sorry, wishes to ask a question, please click on the Raise Your Hand button on the player. The first question that we have is coming from Wim Hoste, from KBC Securities. Your line is now open. You can unmute your microphone.

Speaker #3: The first question that we have is coming from William Hosta from KBC Securities. Your line is now open. You can unmute your microphone.

Speaker #4: Do you hear me ?

Speaker #2: Yes. Hi. Good morning.

Wim Hoste: ... Good morning, do you hear me?

Speaker #4: Yes . Good morning everybody . Thanks for taking my questions . I have two please on metal price hedging . You indicated that hedge levels in 26 will be below 25 .

Wannes Peferoen: Yes. Hi, good morning, Webb.

Wim Hoste: Yes, good morning, everybody. Thanks for taking my questions. I have two, please. On metal price hedging, you indicated that the hedge levels in 2026 will be below 2025. Can you maybe elaborate a little bit on the outlook of your hedge book? Is it fair to assume that the hedging price levels will increase, probably materially as from 2027 onwards? Can you maybe elaborate on that? And then also linked to metal price hedges, yeah, what are the limitations to hedging more and further into the future? I think you indicated that you're looking to increase the hedging for 2029 and 2030. What is prohibitive in this case? Is it just availability of counterparties? Is it financing costs, which get increasingly expensive, extending the hedges into time?

Speaker #4: Can you maybe elaborate a little bit on the outlook of your hedge book? Is it fair to assume that the hedging price levels will increase?

Speaker #4: Probably materially , as from 27 onwards ? Can you maybe elaborate on that ? And then also linked to to metal price hedges .

Speaker #4: Yeah. What are the limitations to hedging more and further into the future? I think you indicated that you're looking to increase the hedging for '29 and 2030.

Speaker #4: What is is prohibitive in this in this case , is it just availability of counterparties ? Is it financing costs which get increasingly expensive , extending the hedges into time .

Speaker #4: Can you maybe elaborate also a little bit on that? Those are the questions. Thank you.

Wim Hoste: Can you maybe elaborate also a little bit on that? Those are the questions. Thank you.

Speaker #5: Yes . Good morning . Good morning . Here . Good morning I'll take I'll take those questions . So

Wannes Peferoen: Yes. Good morning, Wannes. Good morning, Wannes here.

Wim Hoste: Good morning.

Wannes Peferoen: I'll take, I'll take those questions. Yep. So, looking at the metal price levels of the hedges, that is something we don't communicate, but at the same time, we can also share that... I mean, moving from 2025 into 2026, there will be less support from the average hedge prices that we have, looking at 2026. At the same time, looking at the average hedges that have been locked in, or the volume of hedges that we have locked in, looking at 2026 and 2027, this is where 70% on average of the exposure that has been locked in. So I think looking at the metal price exposure, this is where in the current favorable environment, there's still potential, there's still upward potential, but it's limited to that open exposure of, let's say, roughly 30%.

Speaker #1: Looking at the metal price levels of the hedges, that is something we don't communicate. But at the same time, we can also share that, I mean, moving from '25 into '26, there will be less support from the average hedge prices that we have.

Speaker #1: Looking at 26 . At the same time , looking at the average hedges that have been locked in or the volume of hedges that we have locked in looking at 26 and 27 , this is where 70% on average of the exposure that has been locked in .

Speaker #1: So I think looking at the metal price , exposure , this is where in the current favorable environment , there's still potential . There's still upward potential , but it's limited to that open exposure of let's say roughly 30% now we are looking into hedging further , looking at 29 , 20 , 30 again on the back of creating that visibility , creating that predictability , predictability of the earnings .

Wannes Peferoen: Now, we are looking into hedging further, looking at 2029, 2030, again, on the back of creating that visibility, creating that predictability of the earnings. But this is where looking at the market environment, on the one hand, we see a heavy backwardation, looking in particular at the PGM prices, but also limited market interest from counterparts to lock in those prices, hence also the heavy backwardation. So this is something that we are monitoring closely, in order to secure, basically, at the right time, the right price levels for those years, 2029 and 2030.

Speaker #1: But if we look at the market environment, on the one hand, we see a heavy backwardation, looking in particular at the prices.

Speaker #1: But also, limited market interest from counterparts to lock in those prices. Hence also the heavy backwardation. So this is something that we are monitoring closely in order to secure.

Speaker #1: Basically, at the right time, the right price levels for those years—'29 and 2030.

Speaker #4: Okay. Thank you very much.

Wim Hoste: Okay, clear. Thank you very much.

Speaker #1: You're welcome .

Speaker #3: The next question is coming from Sebastian Bray from Berenberg. Your line is now open. You can unmute your microphone.

Wannes Peferoen: You're welcome.

Operator: The next question is coming from Sebastian Bray from Berenberg. Your line is now open. You can unmute your microphone.

Speaker #1: The best thing, we don't hear you.

Wannes Peferoen: Sebastian, we don't hear you.

Speaker #6: So I have a few, please. The first is on the financing costs. Are there any one-off lines?

Sebastian Bray: I have a few, please. The first is on the financing costs. Are there any one of my-

Speaker #3: Sebastian, we lost you for a second. I will open your line again.

Operator: Sebastian, we lost you for a second. I will open your line again.

Speaker #6: Thank you . I think there's a lag on the mic , so I'm just going to . To speak . What would you provide as guidance for 26 financing costs ?

Sebastian Bray: Thank you. I think there's a lag on the mic, so I'm just going to speak. What would you provide as guidance for 26 financing costs? My second question is on the PF-

Speaker #6: My second question is on the PDF

Speaker #2: Sorry, Sebastian, we really can't hear you.

Speaker #6: What exactly—why can't we go back by 2029 to a level of recycling earnings akin to what we had in '21? I...

Wannes Peferoen: Sorry, Sebastian, we really can't hear your question.

Sebastian Bray: What exactly? Why can't we go back by 2028, 2029 to a level of recycling earnings akin to what we had in 2021? I,

Speaker #2: So? So maybe let's see what we think we understood. So I think there's a question on the one hand around financing evolution, financing in.

Wannes Peferoen: Let's see what we think we understood. So I think there's a question on the one hand, around financing evolution, financial in 2026.

Speaker #6: 2021 JV, is there any chance this might go up?

Sebastian Bray: JV. Is there any chance I can stop?

Speaker #7: Maybe maybe we go to

Speaker #8: The issue with the liner is on your side, Sebastian. So I think it's difficult to receive your questions. If there is any opportunity, please send them over the chat.

[Company Representative] (Umicore): Maybe, uh-

Wannes Peferoen: Maybe we go to-

[Company Representative] (Umicore): We have an issue with the line on your side, Sebastian, so I think it's difficult to receive your questions. If there is any opportunity to send them over the chat, that would maybe be helpful, and then we can move on for now to the next analyst, I believe, because-

Speaker #8: That would maybe be helpful. And then we can move on for now to the next analyst, I believe, because it's supposed to take these as such.

Wannes Peferoen: Yeah.

[Company Representative] (Umicore): Difficult to take these as such. Thank you. Gaia, can you move on to the next analyst, please?

Speaker #8: Thank you. Gaia, can you move on to the next analyst, please?

Speaker #3: Yeah, the next question is coming from Chetan Udeshi from JP Morgan. Your line is now open. Please unmute your microphone and go ahead.

Operator: Yeah. The next question is coming from Chetan Udeshi, from J.P. Morgan. Your line is now open. Please unmute your microphone and go ahead.

Speaker #9: Hi. Can you hear me? Okay.

Speaker #2: Yeah . Yeah , yeah . Loud and clear . Chetan .

Wim Hoste: Hi, can you hear me okay?

Speaker #9: Okay, cool. So I had a few questions. First one: I appreciate you're not giving the guidance, even though you gave the same point last year.

Wannes Peferoen: Yeah, yeah, yeah. Loud and clear, Chetan.

Wim Hoste: Okay, cool. So I had a few questions. First one, appreciate you're not giving the guidance, even though you gave same point last year, some guidance for 2024. But I also remember, you know, Umicore historically never gave guidance at the start of the year. So I don't know if-

Speaker #9: Some some guidance for 2024 . But I also remember Yumeko historically never gave guidance at the start of the year . So I don't know if you just going back to the old practice , but just based on all of the things that you mentioned , qualitative assessment , what you've seen so far , what is your feeling on the consensus that we have from Vara for 2026 ?

Wannes Peferoen: Correct.

Wim Hoste: - are just going back to the old practices.

Wannes Peferoen: Right.

Wim Hoste: But just based on all of the things that you mentioned, qualitative assessment, what you've seen so far, what is your feeling on the consensus that we have from Vara for 2026? You know, do you have a view on where the consensus is, and is that in the right path? The second question, I was just curious on your take or pay contribution in the battery materials. It's pretty clear right now that some of your customers, like ACC, you know, they probably announced that they are scaling back the ramp up plans. So I'm just curious, are you getting compensated one to one for the lost volumes? Or is it more a negotiation where, you know, you are still trying to be flexible if your customer can't take the volumes?

Speaker #9: You know , do you have a view on where where the consensus is and is that in the right spot ? The second question , I was just curious on your take or pay contribution in the battery materials is pretty clear right now that some of your customers like ACC , you know , they publicly announced that they they are scaling back the ramp up plans .

Speaker #9: So I'm just curious, are you getting compensated one-to-one for the lost volumes, or is it more a negotiation where you know you are still trying to be flexible?

Speaker #9: If your customer can't take take the volumes and the third question on recycling , you mentioned some process in can you quantify that ?

Wim Hoste: The third question, on recycling, you mentioned some process inefficiencies. Can you quantify that? Is that a material drag last year, which shouldn't recur this year? Thank you very much.

Speaker #9: Is that a material drag last year, which shouldn't recur this year? Thank you very much.

Speaker #2: Okay . You you go on the on the guidance so I can go on the guidance on this matter .

Bart Sap: Okay, Wannes, you go on the guidance, or I can go on the guidance, it doesn't matter.

Speaker #1: Well, I think on the guidance again, we highlighted it's too early to be very concrete. At the same time, looking at EBITDA.

Wannes Peferoen: Well, I think on the guidance, again, we highlighted it's too early to be very concrete. At the same time, looking at EBITDA, this is where we say, yes, we are confident on the year 2026, and we expect to make some progress in 2026. Looking at other elements of guidance, CapEx, we highlighted, we expect the CapEx to come in between EUR 300 and 400 million. We will continue to be diligent and disciplined. If you look at battery cathode materials, we reduced the spend in 2025 versus what we anticipated, and we anticipate to do the same for 2026.

Speaker #1: This is where we say yes, we are confident on the year '26, and we expect to make some progress in '26. Looking at other elements of guidance, CapEx to be highlighted, we expect CapEx to come in between €300 and €400 million.

Speaker #1: We will continue to be diligent and disciplined . If you look at battery cathode materials , we reduced the spend in 25 versus what we anticipated , and we anticipate to do the same for 26 at the same time , looking at the foundation business , this is where in precious metals refining we are working , we are engineering on that expansion of the Flowsheet that that will result in some step up in CapEx and in specialty materials .

Wannes Peferoen: At the same time, looking at the foundation business, this is where in precious metals refining, we are working, we are engineering, on that expansion of the flow sheet, that, that will result in some step up in CapEx. And in specialty materials, we see some very specific growth opportunities, which we want to support. So hence, the range of EUR 300 to 400. Now, the favorable metal price environment is obviously can be supportive to the EBITDA, but it can also put pressure on the working capital, and this is something where we will diligently work on, in order to make sure that we can offset to a maximum extent, any, any upside pressure on working capital.

Speaker #1: We see some very specific growth opportunities , which we want to support . So hence the range of 300 to 400 . Now the favorable metal price environment is obviously cannot can be supportive to the EBITDA .

Speaker #1: But it can also put pressure on the working capital. And this is something where we will diligently work on in order to make sure that we can offset, to a maximum extent, any, any upside pressure on working capital.

Speaker #1: I think those are key elements. I think we can guide on today.

Wannes Peferoen: I think those are key elements I think we can guide on today.

Speaker #2: Yeah, that's right. And last year we decided to guide because of the specific circumstances around all the trade uncertainty and the tariffs.

Bart Sap: Yeah, that's right, Juanus. And last year we decided to guide because of the specific circumstances around all the trade uncertainty and the tariffs, right? So we want to be clear also there, where Group was heading and to give you clarity, because it was probably the biggest uncertainty out there in the market at that point in time. Now, on your second question, the take or pay and the further progress. Well, first of all, I mean, I think we have been pretty transparent and clear that in 2025, there is indeed a portion of take or pay in the results for which we are financially covered. The ramp up across contracts, I will not talk about specific contracts. I will never do that. But we see that across...

Speaker #2: Right. So we want to be clear. Also, that was where the group was heading, and to give you clarity because it was probably the biggest uncertainty out there in the market at that point in time.

Speaker #2: Now on your second question , the takeover pay and a further progress . Well , first of all , I mean , I think we have been pretty transparent and clear that in 2025 , there is indeed a portion of take or pay in the results for which we are financially covered ramp up across contracts .

Speaker #2: I will not talk about a specific contracts . I will never do that . But we see that across . If I talk more broadly on the ramp up , it is slower than what we would have wanted to see or what our best view was at the CMD in March .

Bart Sap: If I talk more broadly on the ramp up, it is slower than what we would have wanted to see or what our best view was at the CMD in March. The weight of take or pay in that trajectory that we shared is increasing, right? This is something that I would like to highlight. At the same time, we continue to have strong confidence in our contracts, and we will continue to leverage these contracts as we have done in 25, and we'll also be doing going forward. On the recycling, I forgot what exactly—

Speaker #2: So the weight of take or pay in that trajectory that we shared is increasing . Right . And this is something that I would like to highlight .

Speaker #2: At the same time, we continue to have strong confidence in our contracts, and we will continue to leverage these contracts as we have done in '25, and we will also be doing so going forward on the recycling.

Speaker #2: I forgot what exactly the question the process . is inefficient , how the process inefficiencies . Yes , one is if you want

Wannes Peferoen: Especially the process, it's inefficient.

Bart Sap: Oh, the process inefficiencies. Yes. Juanus, if you want.

Speaker #1: So, I mean, looking at recycling, we highlighted that the volumes were up. The volumes were up at the same time, looking at the downstream.

Wannes Peferoen: Yep. So, I mean, looking at recycling, we highlighted that the volumes were up, the volumes processed were up. At the same time, looking at the downstream, this is where we had some technical hiccups, resulting in some additional costs, some additional rework, but not too material. But at the same time, we also wanted to highlight as it, as it is, impact the results more.

Speaker #1: This is where we had some technical hiccups resulting in some additional costs , some additional rework . But not too material . But at the same time , we also wanted to highlight as it this impact the results from .

Speaker #2: That's right. And as I highlighted in my presentation, we did offset those with further efficiencies in other parts of the plant.

Bart Sap: That's right. And, as I highlighted in my presentation, we did offset those with further efficiencies in other parts of the plant. We just want to be transparent and open around this. Again, for 2026, there's not going to be any effect of these operational inefficiencies, so not to be taken into account for you for 2026.

Speaker #2: We just want to be transparent and open around this. Again, for 2026, there's not going to be any effect of these operational inefficiencies.

Speaker #2: So, not to be taken into account for you for 2026.

Speaker #9: Understood . Thank you .

Speaker #10: Before .

Speaker #8: Sorry. Before we move on, we can maybe take the questions of Sebastian that have come in through the chat.

Wim Hoste: Understood. Thank you.

[Company Representative] (Umicore): Sorry, before we move on, we can maybe take the questions of Sebastian Bray that have come in through the chat.

Speaker #2: Yeah . Thank you .

Speaker #8: So the first question is the financing costs in 2026. Could this be done versus 2025? The second question is, could recycling return to levels of full year 2021?

Bart Sap: Yeah. Thank you, Sedan.

[Company Representative] (Umicore): So the first question is the financing costs in 2026, could this be down versus 2025? The second question is, could recycling return to levels of full year 2021? And then the final question is on the JV, the Ionway JV. Could it be recut or renegotiated as Volkswagen is cutting back on that investment?

Speaker #8: And then the final question is on the JV. The JV—could this be recut or renegotiated as Volkswagen is cutting back on estimates?

Speaker #2: Maybe you take the first one. I'll take the two other ones.

Speaker #1: Yeah, so looking at finance cost, obviously very difficult to guide because there are two components which we don't have fully in control.

Bart Sap: Maybe you take the first one, I'll take the two other ones.

Wannes Peferoen: Yep. So looking at finance costs, obviously very difficult to guide because there's two components, which we don't have fully in control. One is basically the cash deposits and the interest rate we get on those cash deposits. And this is also where there has been a steep decline in 2025, and hence, also less contribution to the finance income, I would say. The other element is the forward points, looking at the financing transactions in foreign currencies, this is where we also carry the forward points, and again, hard to predict, I would say. At the same time, I think 2025 seems rather exceptionally high looking at the financing costs.

Speaker #1: One is basically the cash deposits and the interest rate we get on those cash deposits. And this is also where there has been a steep decline in 2025.

Speaker #1: And hence, also, let's contribution to the finance income. I would say the other element is the forward point. Looking at the financing transactions in foreign currencies.

Speaker #1: This is where we also carry the forward points . And again , hard to predict . I would say at the same time , I think 25 seems rather exceptionally high .

Speaker #1: Looking at the financing cost , I think I would anticipate to to to have that lower going into 26 . But again , hard to give guidance on .

Wannes Peferoen: I think I would anticipate to have that lower going into 2026, but again, hard to give guidance on.

Speaker #2: Yeah . And then on , on , on recycling . Well , I think it's true . I mean it's a fact that actually your hedged exposure or unhedged exposure , let's say in 29 20 , 30 , the more we move out in that period , I think we're less hedged in that time frame .

Bart Sap: Yeah, and then, on recycling, well, I think it's true. I mean, it's a fact that actually your hedged exposure or unhedged exposure, let's say, in 2029, 2030, the more we move out in that period, I think we're substantially less hedged in that time frame. Suppose that current favorable metal environment remains for all the main metals such as platinum, palladium, rhodium, and of course, some others as well. Clearly, there could be a substantial upside versus the EBITDA that we are reporting today. Hence, at the same time, these prices are not guaranteed, so it's impossible for us to guide on that. But in theory, there would be, of course, a higher upside possible.

Speaker #2: Suppose that the current favorable metal environment remains for all the main metals , such as platinum , palladium , rhodium , and of course , some others as well .

Speaker #2: Clearly, there could be a substantial upside versus the EBITDA that we are reporting today. At the same time, these prices are not guaranteed.

Speaker #2: So it's impossible for us to guide on that . But in theory , there would be , of course , a higher upside possible on on the Volkswagen question , you will understand .

Speaker #2: I will not comment on that. We have clear contracts in place. We are going to continue to enforce these contracts. And at this point, I have nothing material to share with you on that point.

Bart Sap: On the Volkswagen question, you understand, I will not comment on that. We have clear contracts in place. We are going to continue to enforce these contracts, and at this point, I have nothing material to share with you on that point.

Speaker #3: As a reminder , as a reminder , if the analysts wish to ask a question , you can click on the raise your Hand button on the player .

[Company Representative] (Umicore): As a reminder-

Bart Sap: Thank you.

[Company Representative] (Umicore): As a reminder, if the analyst wish to ask a question, you can click on the Raise Your Hand button on the player. We have our final question at the moment coming from Mazahir Mamadli from Rothschild and Co, and Redburn. Your line is now open. Please go ahead.

Speaker #3: We have our final question at the moment, coming from Mazahir Mammadli from Rothschild and Redburn. Your line is now open.

Speaker #3: Please go ahead

Speaker #6: And from me . .

Speaker #11: So, assuming that we have a favorable metals price environment going forward in the next couple of years, what would your priorities be in terms of allocating the excess free cash flow that you generate?

Wannes Peferoen: And from me. So assuming that we have a favorable metals price environment going forward in the next couple of years, what would your, what would your priorities be in terms of allocating the excess free cash flow that you generate?

Speaker #2: Yeah . So basically if I understood well it's it's actually a cash flow allocation question . But I mean , let me start off here as well .

Bart Sap: Yeah. So, basically, if I understood well, it's actually a cash flow allocation question, Wannes. But, I mean, let me start off here as well. I think our focus today is still really on further being cash disciplined. It's really on that value recovery, and once the balance sheet continues to remain strong and solid, we will, of course, then, yeah, decide what to do with the excess funds and will be coming out to the market. So we don't have a clear view on that at this point in time, because we're still, our focus is still on solidifying in a structural way the balance sheet. So, Wannes, I don't know if you would have any-

Speaker #2: I think our focus today is still really on further being cash disciplined . It's really on that value recovery . And once the balance sheets continues to remain strong and solid , we will of course , then Decide what to do with this excess funds and will be coming out to the market .

Speaker #2: So we don't have a clear view on that at this point in time , because we're still our focus is still on solidifying in a structural way , the balance sheet .

Speaker #2: So I don't know if you would have any—no.

Speaker #1: , completely , completely . Right . I mean , looking at what we said in the CMD is that we look at landing at the leverage , structural leverage between 1.5 and 2 , let's say .

Wannes Peferoen: No, completely, completely right. I mean, looking at what we said in the CMD, is that we look at landing at a leverage, structural leverage, between 1.5 and 2, let's say. And once we have that in place, once we see that recurring, that then the next topic that we will need to discuss.

Speaker #1: And once we have that in place, once we see that recurring, then the next topic that we will need to discuss.

Speaker #1: Yes .

Speaker #11: Thank you .

Bart Sap: Yes. Thank you. Thank you, Mazahir.

Speaker #2: Thank you

Speaker #3: We will now take our final question from Stine De Meester. Your line is now open. Please go ahead.

[Company Representative] (Umicore): We will now take our final question from Stijn Demeester. Your line is now open. Please go ahead. I received the message from Stijn.

Speaker #8: Received a message from . Sorry.

Speaker #10: I received such .

Bart Sap: Unmute your mic.

Speaker #8: Okay. You're in. Okay.

Wannes Peferoen: No.

[Company Representative] (Umicore): Sorry, I received the message. Ah, okay, you're in. Okay.

Speaker #1: Yes. Thank you. Yeah.

Speaker #12: Yes. There are some difficulties here. So, the first one is on the SK On contract and the probability of renewal in '26. The second one is on the margins for take-or-pay versus actual volumes.

Stijn Demeester: Yes, I'm in.

[Company Representative] (Umicore): Thank you.

Stijn Demeester: Yeah, yes, some difficulties here. So first one is on the SK On contract and the probability of renewal in 2026. Second one, on the margins for take or pay versus actual volumes, can you say something there, in terms of where they sit? And then the last one on the shutdown in recycling, any view on when this will happen? These are my questions.

Speaker #12: Can you say something there in terms of where they sit? And then the last one on the shutdown in Recycling—if you can, when will this happen? These are my questions.

Speaker #1: Sorry. Can you repeat the last question?

Speaker #10: When the shutdown .

Bart Sap: Sorry, Stijn, can you repeat the last question?

Speaker #12: On the shutdown in recycling and when we should plan it in,

[Company Representative] (Umicore): When the shutdown will happen?

Stijn Demeester: On the shutdown in recycling and when we should plan it in.

Speaker #2: Yeah . So okay . Thank you . Very clear on on indeed . We said that there was a probability to extend extend the contract and that did that did happen .

Bart Sap: Yep. So okay, thank you, Stijn. Very clear on SK On, indeed, we said that there was a probability to extend, extend the contract, and that did happen. So, we continue to supply SK On in 2026, so that is definitely a positive. On the margin of the take or pay, there, I think, what I said, I mean, the idea of the take or pay margins is to protect the investments that we have done. And as you have seen also, when we were guiding for 2028, we had seen different scenarios of take or pay and actual volume delivery, and you saw that that range, EUR 275 to 325, right, was rather muted.

Speaker #2: So we continue to supply SK On in 2026. So that is definitely positive on the margin of the take or pay there.

Speaker #2: I think what I said , I mean , the idea of the take or pay margins is to protect the investments that we have done .

Speaker #2: And as you have seen also when we were guiding for 2028 , we had seen different scenarios of take or pay and actual volume delivery , and you saw that that range .

Speaker #2: 275 325 right . Was rather muted . So you could from that , of course , deduct that the margins indeed are sufficiently strong to cover volumes shortfall , margins .

Bart Sap: You could, from that, of course, deduct that the margins indeed are sufficiently strong to cover, yeah, volume shortfall margins. Now, on the shutdown from Hoboken, PMR, I mean, this is happening, yeah, in the second half or later this month, actually. We are preparing or entering as we speak the shutdown.

Speaker #2: Now on the shutdown from Hoboken , P.m.r , I mean , this is happening in in the second half or later this month , actually .

Speaker #2: So, we are preparing our entering as, as we speak, the shutdown.

Speaker #12: Okay .

Speaker #8: If I may , before we close . Sorry . Yeah . Go ahead Stan .

Stijn Demeester: Okay. If I, if I may-

[Company Representative] (Umicore): And then before we close... Sorry, yeah, go ahead, Stijn.

Speaker #12: So is it is it a correct assumption that if you would fully lean on take or pay that you hit the 275 ? Or is that a two positive take ?

Stijn Demeester: So is it, is it a correct assumption that if you would fully lean on take or pay, that you hit the EUR 275, or is that a too positive take?

Speaker #2: Well , I mean , I mean , we have we have set during the CMD that indeed different scenarios of take or pay as well as volume , real volume offtake would give that range of 275 325 .

Bart Sap: Well, I mean, we have said during the CMD that indeed, different scenarios of take or pay, as well as volume, real volume offtake, would give that range of 275, 325. The answer is yes, correct.

Speaker #2: So, the answer is yes.

Speaker #1: Correct .

Speaker #12: Thank you .

Speaker #8: Before we close it off, I still have an email from Georgina at Goldman Sachs. I also want to highlight that we should look into the difficulties that people are having connecting to this.

Stijn Demeester: Thank you.

[Company Representative] (Umicore): Before we close it off, I still have an email of Georgina from Goldman Sachs.

Bart Sap: Mm-hmm.

[Company Representative] (Umicore): I also want to highlight that we will look into the difficulty that people are having to connect to this call.

Speaker #2: This is not .

Speaker #8: That . This will not happen going forward , but so let me then phrase Georgina questions here . How much CapEx investment needs still outstanding for battery materials .

Bart Sap: This is not-

[Company Representative] (Umicore): That this will not happen going forward. But so, let me then phrase Georgina's questions here. How much CapEx investment needs still outstanding for battery materials? The next question is: Is it increasingly in conflict with potential growth opportunities in recycling specialty materials in management's views? Feels to me like the opportunity cost is getting larger.

Speaker #8: The next question is, is this increasingly in conflict with potential growth opportunities in recycling specialty materials, in management's view? It feels to me like the opportunity cost is getting larger.

Speaker #2: Okay . Very clear . One is maybe you take one . I'll take two .

Bart Sap: Mm-hmm. Okay, very clear. Wannes, maybe you take one, I'll take two.

Speaker #1: Yes . So looking at battery cathode materials , as I said in in 25 we reduced the CapEx spend as we're optimizing the or using basically the footprint flexibility in order to to reduce and face the CapEx .

Wannes Peferoen: Yes. So, looking at battery cathode materials, as I said, in 25, we reduced the CapEx spend as we are optimizing the, or using basically, the footprint flexibility in order to to reduce and, and, and phase the CapEx. So looking at battery cathode materials, what we shared with the market during the CMD, is that on the one hand, we have the fully owned capacity, where we would need to invest about EUR 350 million. This is where we expect to be able to reduce it with EUR 100 million, looking at 25 and 26. Then, what we also highlighted in the capital market day, is that we have the capital injection into Ionway, where we anticipated still to invest EUR 500 million, between 25 and 26.

Speaker #1: So, looking at battery materials, what we shared with the market during the CMD is that, on the one hand, we have the fully owned capacity where we need to invest about $350 million.

Speaker #1: This is where we expect to be able to reduce it by €100 million. Looking at '25 and '26, then what we also highlighted in the Capital Markets Day is that we have the capital injection into Iron Way, where we anticipate it still to invest €500 million between '25 and '26.

Speaker #1: This is where we invested in 2025 , 250 million . And we're at the start of this year , invested 175 million . So bringing that to a total of 425 , we expect to stay within that budget of 500 million in order to finalize basically , iron

Wannes Peferoen: This is where we invested in 2025, EUR 250 million, and where at the start of this year, invested EUR 175 million. So bringing that to a total of EUR 425 million. We expect to stay within that budget of EUR 500 million, in order to finalize, basically, Ionway.

Speaker #2: Yeah . So I think that I think that's correct , that's correct . So in other words , I mean , we're facing our CapEx and function of the real underlying demand that we see .

Bart Sap: Yeah. So, I think that, I think that's correct, that's correct, Juanus. So in other words, I mean, we're facing our CapEx in function of the real underlying demand that we see, and we said that we would be disciplined. For the time being, we're not spending those CapEx. As discussed earlier, the importance of take or pay is growing, and that immediate need is not there. That's translates in that question on the conflict versus recycling. Well, I mean, I would say, first of all, we have a set of businesses that we have today, right? A very strong core foundation business, in which we're going to continue to invest in selective growth initiatives. I've been highlighting in the germanium and the field of electro-optic materials.

Speaker #2: And we said that we would be disciplined . And for the time being , we're not spending those CapEx as discussed earlier , the importance of take or pay is growing .

Speaker #2: And that immediate need is not there . And that's transits in that question . On the conflict versus recycling . Well , I mean , I would say , first of all , we have a set of businesses that we have today , right ?

Speaker #2: A very strong core foundation business, and which we're going to continue to invest in selective growth initiatives. I've been highlighting in the germanium and the field of electro-optic materials.

Speaker #2: We will decide on the investment in Hoboken in 2026. And I think the current evolution in battery materials is not holding us back to do that.

Bart Sap: We will decide on the investment in Hoboken in 2026, and I think the current evolution in battery materials is not holding us back to do that, if we wanted to do that from a financial point of view. So no, there's not an immediate conflict. Of course, if you would think about really bold moves, then of course value recovery and Belgium battery materials would definitely be yeah an important milestone to achieve. So no, I don't see that immediate conflict on the CapEx, as we are keeping it to the lowest amount possible, and we continue to lean on our take or pay contracts.

Speaker #2: If we wanted to do that from a financial point of view . So no , this not an immediate conflict . Of course , if you would think about really bold moves , then of course , value recovery in battery materials would definitely be , yeah , an important milestone to achieve .

Speaker #2: So no , I don't see that immediate conflict on the CapEx as we are keeping it to the lowest amount possible . We continue to lean on our take or pay .

Speaker #2: Contracts .

Speaker #8: Okay. Then we still have questions from UBS as well. A small reminder that normally we speak to one question per analyst, but given the situation that we are in, I'm making some exceptions.

[Company Representative] (Umicore): Okay. Then we still have questions from UBS as well. A small reminder that normally we stick to one question per analyst, but given the situation that we are in, I'm making some exceptions today. So for UBS, the first question is, can you tell us what percentage of battery materials solutions sales came from take or pay payments? The second question is, does the guidance for the CapEx includes the Ionway payments? If not, what should we anticipate for? And then, in the cost savings, could you give an indication for the cost savings in 2026? And then we still have a question on what do you expect the EU to do to protect the EV supply chain? And then a final one, has Nikon asked to join projects?

Speaker #2: Here .

Speaker #8: So for UBS, the first question is: can you tell us what percentage of Battery Materials Solutions sales is gained from take-or-pay payments?

Speaker #8: The second question is does the guidance for the CapEx includes the Inoue payments ? If not , what should we anticipate for ? And then in the cost savings , could you give an indication for the cost savings in 2026 ?

Speaker #8: And then we still have a question on what do you expect the new to do to protect the EV supply chain? And then a final one has been asked to join Project.

Speaker #7: Y, and it's quite a list.

Bart Sap: Well, I think it's quite the list.

Speaker #8: Slowly starting to close the call. But of course, IR will remain available to respond to your questions. And I will now hand the floor back to Bart to answer these final questions.

[Company Representative] (Umicore): Slowly start to close the call, but of course, IR will remain-

Bart Sap: Yeah

[Company Representative] (Umicore): ... Available to respond to your questions, and I'm now handing the floor back to Bart and Wannes to answer these final questions.

Speaker #2: Yeah, thank you, Jeff, for the questions. One of you take one and two, or...

Bart Sap: Yeah, thank you, Geoff, for the questions. Wannes, you take one and two, or...

Speaker #1: Yeah . So looking at take or pay in 26 , I mean as you have seen looking at the revenues top line and bottom line , we saw a step up .

Wannes Peferoen: Yeah. So, looking at take or pay in 2026, I mean, as you have seen, looking at the revenues, top line and bottom line, we saw a step up. I mean, looking at the revenues, 11% up. Looking at the bottom line and excluding the one-off of 2024, we also saw a significant step up. This is driven by effective volume shipments, but also by take or pay. And that's also why we highlight it, because it is a material contribution to the top line and bottom line. Now, looking at CapEx guidance, so the guidance we give, EUR 300 to 400 million, is excluding contributions to Ionway.

Speaker #1: I mean look at revenues 11% up . Looking at the bottom line . And excluding the one off of 24 . We also saw a significant step up .

Speaker #1: This is driven by effective volume shipments, but also by take-off pay. And that's also why we highlighted it, because it is a material contribution to the top line and bottom line.

Speaker #1: Now looking at CapEx guidance . So the guidance we give the 300 to 400 million is excluding contributions to iron . And this is where , as I highlighted earlier in 26 , we contributed already 175 million .

Wannes Peferoen: And this is where, as I highlighted earlier, in 2026, we contributed already EUR 175 million, and we will stay within the budget that we shared in the Capital Markets Day. So meaning that for 2026, we will not exceed EUR 250 million for Ionway equity contributions. Then looking at the cost saving objective for 2026, this is where, in line with what we shared with the market in March last year, is where we are targeting to offset inflation, and we anticipate inflation to be EUR 50 to 75 million. So that's the target that we have put forward to the teams to at least generate savings in order to offset that anticipated inflation.

Speaker #1: And we will stay within the budget that we shared in the Capital Markets Day. So, meaning that for '26 we will not exceed €250 million for Iron Ray equity contributions.

Speaker #1: Then looking at the cost saving objective for 2026 , this is where in line with what we shared with the market in March last year , is where we are targeting to offset inflation , and we anticipate inflation to be 50 to 75 million .

Speaker #1: So that's the target that we have put forward to the teams—to at least generate savings in order to offset that anticipated inflation.

Speaker #2: Yeah . And then on the question on the EU , EV supply chain . Well , I think I can only base myself , of course , on , on , on the information , which is out there in the press and that you might also have seen , but which somehow also confirms the feeling that I had earlier , is that the , the Commission might be looking at .

Bart Sap: Yeah. And then on the question on the EU EV supply chain, well, I think, I can only base myself, of course, on, on, on the information which is out there in the press and that you might also have seen, but which somehow also confirms the feeling that I had earlier, is that the, the, the, the commission might be looking at, indeed, onshoring more, battery production, as well as battery materials, production in the EU, right? The word on the street is that, if you would want to get support from, from the EU in terms of, CapEx or OpEx going forward, that you would need to have, a strong amount of local content, including, for batteries, and therefore, also cathode materials.

Speaker #2: Indeed , onshoring more battery production , as well as battery materials production in the EU . Right . The word on the street is that if you would want to get support from from the EU in terms of CapEx or OpEx going forward , that you would need to have a strong amount of local content , including for batteries and therefore also cathode materials .

Speaker #2: So , as mentioned in that one slide that I had that could significantly change , of course , the equation of the European battery investments for battery materials investment , which are out there .

Bart Sap: So as mentioned in that one slide that I had, that could significantly change, of course, the equation of the European battery investments for battery materials investments, which are out there. So probably I'm as keen as you to learn what ultimately the Commission will decide. On Project Vault, I mean, I would say that in general we're talking to several regional, let's say, leaderships, and not only in the EU, but of course, also in the US. In the meanwhile, I think the biggest impact of Project Vault, of course, is that the overall price environment for these metals is supportive.

Speaker #2: So probably I'm as keen as you to to learn . What ultimately the commission will decide on Project Fault . I mean , I would say that in general we are talking to several regional , let's say , leaderships and not only in the EU , but but of course , also in the US .

Speaker #2: In the meanwhile, I think the biggest impact of Project Fault, of course, is that the overall price environment for these metals is supportive.

Speaker #2: So whether a direct or indirect effect that you have is basically that such stockpiling on which they are talking about is typically supportive for price trends , at least in the in the shorter term .

Bart Sap: So whether a direct or an indirect effect that you have is basically that such stockpiling, which they are talking about, is typically supportive for price trends, at least in the shorter term. So with that, Caroline, I think we—I don't know if there's any other questions outstanding?

Speaker #2: So with that , Carolyn , I think we I don't know if there's any other questions . Outstanding .

Speaker #8: No, I think with this we can indeed wrap it up and close the Q&A for today.

[Company Representative] (Umicore): No, I think with this, we can indeed wrap it up and close the Q&A for today.

Speaker #7: Well, first—first of all,

Speaker #2: I was looking for an engaging Q&A. The quality of the questions was definitely good. The quality of the line, definitely not.

Bart Sap: Well, first of all, I was looking for an engaging Q&A. The quality of the questions was definitely good. The quality of the line definitely not. But, I mean, we get a rematch with most of you next week in London. I'm really looking forward to that. Now, in a summary, it will not be a surprise. We're really satisfied on how things evolved in 2025. It was a pivotal year where 2024 was the year of crisis management, 2024, 2025 was the year of a clear new direction for the company, with disciplined execution on which we delivered strongly. Our culture and the organization is moving in the right direction. We're focused on our goals, and we will continue to do so for 2026.

Speaker #2: But I mean, we get a rematch with most of you next week in London, and I'm really looking forward to that now.

Speaker #2: In the summary , it will not be a surprise . We really satisfied on how things evolved in 2025 . It was a pivotal year when 24 was the year of crisis management , 24 , 25 was the year of a clear new direction for the company , with disciplined execution on which we delivered strongly our culture and the organization is moving in the right direction with focused on our goals , and we will continue to do so for 2026 .

Speaker #2: So with that, I would like to thank you for your attention, attendance, and to the ones that I see next week—looking forward to that.

Bart Sap: So, with that, I would like to thank you for your attendance, and the ones that I see next week, looking forward to that, and talk to you soon. Have a wonderful day.

Speaker #2: And talk to you soon. Have a wonderful day.

Operator: Thanks for participating to the call. You may now disconnect.