Glossary

Glossary

The below definitions cover Umicore’s Alternative Performance Measures (APMs)

Accidents

Accident frequency rate: Number of lost time accidents per million hours worked. Accidents on the road to and from work are excluded.
Accident severity rate: Number of calendar days lost per thousand hours work. Accidents on the road to and from work are excluded.
Fatal accident: a work-related accident with fatal outcome.
Lost time accident (LTA): a work-related injury resulting in more than one shift being lost from work.
Recordable injury (RI): a work-related injury resulting in more than one first aid treatment or in a modified working program but excluding lost time accidents
Total Recordable Injury Rate (TRIR): Total number of fatal accidents, lost time accidents and recordable injuries without lost time, per million hours worked, for both Umicore employees and contractors

Adjusted EBIT

EBIT - EBIT adjustments including total other income, income taxes, depreciation and amortization, and excluding non-recurring, irregular and one-time items.

Adjusted EBIT margin

Adjusted EBIT of fully consolidated companies / revenues excluding metals.

Adjusted EBITDA

Adjusted EBIT + adjusted depreciation and amortization of fully consolidated companies.

Adjusted EBITDA margin

Adjusted EBITDA of fully consolidated companies / revenues excluding metals.

Adjusted EPS (Earnings per share)

Adjusted net earnings, Group share / average number of (issued shares – treasury shares).

Adjusted EPS, basic

Adjusted net earnings, Group share / average number of outstanding shares.

Adjusted EPS, diluted

Adjusted net earnings, Group share / (average number of outstanding shares + number of potential new shares to be issued under the existing stock option plans x dilution impact of the stock option plans).

Assessment of product (and services) sustainability (APS)

This Umicore-specific methodology is used for assessing the sustainability of Umicore’s products and services and uses a tool consisting of 58 preformatted questions and answers with scoring and weighting factors, organized around eight themes.

Associate

An entity in which Umicore has a significant influence over the financial and operating policies but no control. Typically, this is evidenced by an ownership of between 20% and 50%. Associates are accounted for using the equity method.

Automotive platform

A shared set of common design, engineering and production efforts as well as major components over a number of outwardly distinct models of vehicles

Average capital employed

For half years: average of capital employed at start and end of the period; For full year: average of the half year averages.

Average number of shares outstanding

Basic: average number of outstanding shares.
Diluted: average number of outstanding shares + number of potential new shares to be issued under the existing stock option plans x dilution impact of the stock option plans.

Biomarker of exposure

Substance or its metabolite that is measured in biological fluids (e.g. blood) to assess internal body exposure.

Capital employed

Fixed Assets + Working Capital (Inventories + adjusted Trade & Other Receivables – adjusted Trade & Other Payables) – Translation Reserves – Current & Non-Current provisions other than provisions for Employee Benefits.

Capital expenditure

Capitalized investments in tangible and intangible assets, excluding capitalized R&D costs.

Catalysis/catalyst

Catalysis is a chemical process whereby one of the elements used in the reaction process, the catalyst, makes this chemical reaction possible, or speeds up this process, without being consumed in the reaction process, and therefore can be re-used.

Cathode

The cathode is the positive side in a (rechargeable) battery. In the charging phase ions are released from the cathode and migrate to the anode (negative side), thereby storing electricity. In the discharging phase, the ions move back to the cathode, thereby releasing electricity.

Charitable donation

A donation to a not-for-profit organization that is not for the commercial benefit of Umicore. Donations can be in cash or in kind. Political donations are not permitted.

China 6

Chinese emissions standard for light duty vehicles, similar to Euro 6.

Closed loop

For Umicore a “closed loop” involves taking back secondary materials from customers (e.g. production residues) or End-of-Life materials (e.g. used mobile phones, automotive catalysts). The recovered metals are then fed back into the economic cycle.

CO₂ equivalent (CO₂e)

The universal unit of measurement to indicate the global warming potential (GWP) of each of the six greenhouse gases, expressed in terms of the GWP of one unit of carbon dioxide. It is used to evaluate releasing (or avoiding releasing) different greenhouse gases against a common basis.

Conflict minerals

Minerals mined in conditions of armed conflict or Human Rights abuses, particularly gold, tin, tungsten and tantalum.

Consolidated sites

Sites of fully consolidated companies.

COSO Framework

The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is a voluntary private-sector organization which has established a common internal control model against which companies and organizations may assess their control systems.

Decibel (dB)

Unit of noise level.

Diffuse emissions

See Emissions

Dodd-Frank Act

Full title: Dodd–Frank Wall Street Reform and Consumer Protection Act. The Dodd Frank Act aims to promote the financial stability of the United States by improving accountability and transparency in the financial system. Includes a requirement that companies using gold, tin, tungsten and tantalum make efforts to determine if those materials came from the Democratic Republic of Congo (DRC) or an adjoining country and, if so, to carry out a “due diligence” review of their supply.

Earnings before interest and taxes (EBIT)

Operating profit (loss) of fully consolidated companies, including income from other financial investments + Group share in net profit (loss) of companies accounted for under equity method.

EBIT adjustments

Includes adjusted items related to restructuring measures, impairment of assets, and other income or expenses arising from events or transactions that are clearly distinct from the ordinary activities of the company. This includes adjustments related to the sale of business activities or environmental provisions related to historic pollution and environmental remediation of closed sites.

Effective adjusted tax rate

Adjusted tax charge / adjusted profit (loss) before income tax of fully consolidated companies.

EHS

Environment, health & safety.

EV - Electrified vehicle

Vehicle (passenger car or other) that runs fully or partially on electricity, rather than on conventional fuel.

Electroplating

Electroplating is a plating process in which metal ions in a solution (electrolyte) are moved by an electric field to coat another material. The process is primarily used for depositing a layer of material to bestow a desired property on that other material.

Employee

Aperson belonging to Umicore’s total workforce. A Umicore employee can be a full-time, part-time or temporary employee.

Employee turnover

Expressed in terms of voluntary leavers: number of employees leaving of their own will (excluding lay-offs, retirement, and end of fixed-term contract). This number is related to the total workforce.

End-of-life (EOL)

Materials that have ended a first life cycle and will be re-processed through recycling leading to a second, third or more re-use. See Materials.

Energy

Energy consumption: the sum of indirect energy consumption (energy from purchased electricity, steam, compressed air and heat) and direct energy consumption (energy from fuel, gas oil, natural gas, LPG, coal, cokes, pet cokes etc.) at our sites. This includes also self-generated energy, for which only the consumption of fuels is taken into consideration to avoid double-counting. Energy that is sold to third parties is not included.
Indirect energy consumption: energy from purchased electricity, steam, compressed air and heat
Direct energy consumption: energy from fuel, gas oil, natural gas, LPG, coal, cokes, pet cokes etc.
Renewable energy: Wind energy, solar energy, energy from biomass (including bio- and other naturally produced gas), hydropower (including marine hydro) and geothermal energy.
Energy efficiency projects: projects with the aim to improve the efficiency of processes and continuous running of our plants with a view to reduce the energy consumption per production unit, per day etc. by improved automated control of energy supply vs. consumption needs, replacement of inefficient equipment etc. Projects are typically well planned and evaluated before implementation, including an estimate of expected investment, energy and CO2 savings, as well as rate of return and time of amortisation.

Excess reading

A result of a biological monitoring analysis that exceeds the (internal) target level.

Exposure ratio

The exposure ratio of a specific metal is defined as the ratio between the number of employees with a biological monitoring result exceeding the Umicore target value for that specific metal and the total number of employees identified as exposed to that metal. The Umicore target values are based upon recent peer reviewed scientific data and regularly re-evaluated in the context of new evidence.

Full time equivalent (FTE)

The FTE of a worker is calculated by dividing the actual working regime, hours, shifts by the regime, hours, shifts of a full-time worker at the end of the period in fully consolidated companies.

Gearing ratio

Net financial debt / (net financial debt + equity of the Group).

Greenhouse gas (GHG)

GHGs are the six gases listed in the Kyoto Protocol: carbon dioxide (CO₂); methane (CH₄); nitrous oxide (N₂O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); and sulphur hexafluoride (SF₆). See ‘Kyoto Protocol’.

GHG emissions intensity

total scope 1+2 CO2e market-based emissions divided by the total revenues excluding metals

Global warming potential (GWP)

A relative measure of how much heat a greenhouse gas traps in the atmosphere.

Heavy duty diesel (HDD)

Large diesel vehicles – either on-road, such as trucks and buses, or non-road such as heavy plant and mining equipment or locomotives and agricultural equipment.

Hours of training per person

Average number of training hours per employee – including internal and external training and training on-the-job. Training on-the-job can include the hours a person is being trained on the shop floor, without being fully productive. The total number of training hours is divided by the average workforce.

Industrial by-products

See Materials, Secondary raw materials.

ISO 14001

‘International Standards Organization’ specification for environmental management systems (ref. ISO).

ISO 45001

An internationally-applied British Standard for occupational health and safety management systems.

Joint venture (JV)

A contractual arrangement whereby Umicore and another party undertake an economic activity that is subject to joint control. Joint ventures are accounted for using the equity method.

Korean Act on the Registration and Evaluation of Chemicals (K-REACH)

Korean chemicals policy to manage the risks from chemicals and provide substance safety information.

Kyoto Protocol

International treaty of the United Nations Framework Convention on Climate Change (UNFCCC) that requires countries listed in its Annex B (developed nations) to cut emissions to 5% below 1990 levels between 2008 and 2012. In 2012, the protocol was extended to 2020 but in 2015 it was effectively replaced by the ‘Paris Agreement’, where UNFCCC signatories agreed to limit global warming to “well below” 2°C.

Light duty vehicle (LDV)

Primarily passenger cars – using diesel, gasoline or other fuel.

Light emitting diode (LED)

LEDs are a semiconductor-based light source offering many advantages over traditional incandescent light sources, among which long lifetime and energy efficiency.

Lithium cobaltite (LCO)

Cathode material used in lithium ion rechargeable batteries, particularly suited for portable electronic applications.

Lithium ion (LI-ION)

Lithium ion is a technology for rechargeable batteries in which lithium ions move from the positive electrode (the cathode) to the negative electrode (the anode) during the charging phase, thereby storing electricity. In the discharging phase, the lithium ions move back to the cathode, thereby releasing electricity.

Lithium nickel manganese cobalt oxide (NMC)

Relatively new type of cathode material, which is used in the emerging (H)EV market and increasingly in portable electronic applications.

Lost-time accident

See Accident

Materiality

The identification of the most relevant and significant factors influencing Umicore and Umicore’s most significant economic, social and environmental impacts.

Market capitalization

Closing price x total number of outstanding shares.

Megaliter

Unit used when measuring water, equal to 1000 m³

Microgram per deciliter (μg/dL)

Unit used when measuring metal content in blood.

Microgram per gram (μg/g)

Unit used when measuring metal content in urine.

Net cashflow before financing

Net operating cashflow – net cashflow generated by (used in) investing activities.

Net financial debt

Non-current financial debt + current financial debt - cash and cash equivalents.

Net debt / LTM adj. EBITDA

Net financial debt divided by adjusted EBITDA of the last 12 months.

Original Equipment Manufacturer (OEM)

In the automotive industry, refers to car manufacturers.

Outstanding shares

Issued shares– treasury shares.

Platform (automotive)

A combination of chassis and engine type that is used on one or more models of passenger car, sometimes between different manufacturers.

Platinum group metals (PGM)

Platinum, palladium, rhodium, ruthenium, iridium and osmium (in Umicore’s case it refers mainly to the first three).

Power Purchase Agreement (PPA)

Long-term agreement concluded for the purchase of electricity. “Green PPA” refers to a Power Purchase Agreement for green or renewable electricity.

Precursor

Chemical substance that participates in the chemical reaction that produces another compound.

Predicted no effect concentrations (PNEC)

The concentration of a chemical which has no predicted effect on the environment.

Process emissions

Emissions generated from manufacturing processes, such as the CO₂ that arises from the breakdown of calcium carbonate (CaCO₃).

Process safety

Safety issues related to the use and storage of hazardous chemical substances that may present a hazard to employees, neighborhood residents and the environment.

R&D expenditure

Gross research and development charges, including capitalized costs. The reported R&D figures exclude R&D of associates.

Raw materials

Primary raw material: Material which has never before been subjected to use or processed into any form of end-use product (or part thereof) other than that required for its manufacture. In the absence of information from the supplier on the nature of the raw materials supplied, these raw materials are considered as primary. The collected data are expressed in terms of total tonnage of incoming material.
Secondary raw material: Material which has been used and/or processed before and can be reused or processed again into any form of end-use product (or part thereof). Includes both pre- and post-consumer materials.
Secondary pre-consumer raw material: Material resulting from the industrial processes in the value chain before that material has been processed into a product. Please note that this includes waste materials originating from intermediate manufacturing steps in the value chain using primary raw materials as input. In all cases the material should not be suitable for consumption in the intermediate manufacturing steps from which it originates.
Secondary post-consumer raw material: Material resulting from products ending at least one lifetime. Please note that this includes waste materials originating from intermediate manufacturing steps in the value chain using secondary raw materials (pre- and or post- consumer raw materials) as input. This also includes material recovered from waste generated by industrial facilities in their role as end-users of a finished product. In all cases the material should not be suitable for consumption in the intermediate manufacturing steps from which it originates. This also includes material recovered from waste generated by industrial facilities in their role as end-users of a finished product.

Metal emissions

Metal emissions to water (load): the total amount of metals emitted after treatment to surface water from effluent(s) expressed in kg/year. If sites make use of an external wastewater treatment plant, the efficiency of that treatment is considered if known to the site.
Metal emissions to air (load): the total amount of metals emitted to air, after emissions abatement where applicable, in solid fraction by all point sources expressed in kg/year. For mercury and arsenic, vapor/fume fractions are counted as well.
Metal emissions to air and water (impact): For each of the metals emitted to water and air, an impact factor is applied to account for the different toxicity and ecotoxicity levels of the various metals when they are emitted to the environment.
Diffuse metal emissions: the average concentration of suspended particulate matter (PM10) in air of relevant metals multiplied by the impact factors to air for the respective metals and normalized against the value of 2020.

Registration, Evaluation and Authorisation of CHemicals (REACH)

European chemicals policy to manage the risks from chemicals and provide substance safety information.

Return on capital employed (ROCE)

Adjusted EBIT / average capital employed.

Revenues (excluding metal)

All revenue elements - value of purchased metals.

Retention rate

100%-voluntary leavers rate

Risk assessment

The evaluation of the risks of existing substances to man, including workers and consumers, and to the environment, in order to ensure better management of those risks.

Science-Based Targets Initiative (SBTi)

Organization that validates greenhouse gas targets. Partnered with CDP, UN Global Compact, World Resources Institute, World Wildlife Fund.

scope 1, 2, 3, 4 CO2e emissions

scope 1 CO2e emissions: A reporting organization’s direct GHG emissions.
scope 2 CO2e emissions: A reporting organization’s indirect GHG emissions from the generation of purchased electricity, heating/cooling, compresses air or steam.
scope 3 CO2e emissions: A reporting organization’s indirect emissions that occur upstream and downstream in the value chain, including purchased goods and services, business travel, employee commuting, waste disposal, use of sold products, transportation and distribution (up- and downstream), investments and leased assets and franchises
scope 4 CO2e emissions: emission reductions which occur outside of a product’s lifecycle or value chain, but as a result of the use of the product. Also referred to as “avoided emissions”.

Secondary (raw) materials

See Materials.

Sub-contractor

A person not belonging to Umicore’s total workforce, providing services to Umicore in one of its premises under terms specified in a contract.

Sustainable Development Goals (SDG)

The 17 Sustainable Development Goals adopted by the United Nations on September 25 2015 build on the Millennium Development Goals and aim at ending poverty, protecting the planet, and ensuring prosperity for all as part of a new UN sustainable development agenda. Each goal has specific targets to be achieved by 2030.

Task Force on Climate-related Financial Disclosure (TCFD)

Recommendations launched in 2017 to improve and increase reporting of climate-related financial information. CDP’s disclosure platform provides the mechanism for reporting in line with the TCFD recommendations.

Training hours

Average number of training hours per employee, including all types of training (formal, training on the job, E-learning, etc.) in which the company provides support, and which are relevant to the business unit or the company. The total number of training hours is divided by the averageworkforce of fully consolidated companies.

Temporary contract, or temporary worker

Umicore employees with a temporary contract, included in the workforce of fully consolidated companies.

Voluntary leavers

Number of employees leaving at their own will (excluding lay-offs, retirement, and end of fixed-term contract). This number is related to the total workforce from fully consolidated companies.

Waste

The total volume of generated waste expressed in tonnes/year. The waste recycling rate is the ratio of the waste recovered by third parties (including waste recovered as energy through incineration) to the total waste.

Water

Water use: The use of water associated with our industrial activities in line with the definition of the term in the ISO14046 standard.
Water withdrawal: withdrawn produced water (water/moisture content of incoming raw materials and liquid solutions), groundwater withdrawn for remediation purposes and cooling water withdrawn from and returned to surface water.

Workforce

Number of employees on Umicore payroll at the end of the period in fully consolidated companies. The number includes part-time and temporary employees but excludes employees with a dormant contract, employees on long-term illness and sub-contracted employees. This applies to all hourly paid, monthly paid, managers and interns on Umicore’s payroll at the end of the reported semester including part-time and temporary employees but excludes employees with a dormant contract (career interruption, parental leave, etc.), employees on long-term illness (country specific length of continuous absence) and early retirees.