Imerys Sa · EURONEXT:NK
Imerys Sa — Q3 2018 Earnings Presentation
29 slides from Imerys Sa's earnings presentation, Oct 31, 2018
Slide 1: Third Quarter and 9 Months 2018 Results
Third Quarter and 9 Months 2018 Results October 31, 2018 Conrad Keijzer - Chief Executive Officer Olivier Pirotte - Chief Financial Officer
Slide 2: Disclaimer
Disclaimer More comprehensive information about Imerys may be obtained on its website (www.imerys.com), under Regulated Information, including its Registration Document filed under No. D.18-0150 March 20, 2018 with Autorité des Marchés Financiers. Imerys draws the attention of investors to the “Risk
Slide 3: Third Quarter and 9 Months 2018 Results agenda
Third Quarter and 9 Months 2018 Results 1 Highlights 4 2 Financial Review 8 3 Outlook 13
Slide 4: Highlights
1 Highlights Conrad Keijzer - Chief Executive Officer
Slide 5: Key figures for third quarter and first 9 months of 2018
Key figures for third quarter and first 9 months of 2018 (€m) Q3 2017 Q3 2018 Actual Like-for-like proforma of Roofing (1) change Change (2) ■ Revenue 1,103 1,154 +4.6% +3.1% ■ Current operating income (3) 145 141 -3.1% -4.3% ■ Net income from current operations 88 90 +1.3% - (€m) 9M 2017 9M 2018 Ac
Slide 6: Resilience in more challenging market conditions in the third quarter
Resilience in more challenging market conditions in the third quarter Price-mix/ cost balance (€m) ■ Favorable price-mix despite significant inflation 9M 2017: €19m 9M 2018: €30m of input costs ◆ Benefiting from focus on specialty applications ■ More challenging conditions in some markets, weighing
Slide 7: Q3 Highlights
Q3 Highlights Strategic decisions ■ Several divestiture scenarios under review ■ Withdrawal from the ceramic ■ - €5m negative contribution on current operating income proppants market expected for full year 2018 ■ Balance sheet value of €150m at fiscal year 2018 end ■ Namibian operations put on ■ Pr
Slide 8: Financial Review
2 Financial Review Olivier Pirotte - Chief Financial Officer
Slide 9: Q3 pro forma revenue up +4.6%
Q3 pro forma revenue up + 4.6% Q3 revenue bridge (€m) +3.1% +4.6% +2.7% -1.1% 1,173 (71) 34 1,154 29 (12) 1,103 of which Kerneos: €23m Volumes: - 0.9% Price-mix: + 4.0% Q3 2017 Roofing Q3 17 Perimeter FX Volumes Q3 2018 Reported proforma price-mix Reported of Roofing 9-months 3,394 (227) 3,167 +9.3%
Slide 10: Q3 pro forma current operating income down -3.1%
Q3 pro forma current operating income down - 3.1% Q3 current operating income bridge (€m) 145 3 (2) Volumes: (6) Price-mix: 40 13.2% 13.1% Operating margin 12.2% Q3 2017 Perimeter Q3 2018 FX proforma of (including Roofing Kerneos) 9-months 409 32 (22) 419 119 (75) (47) 10 425 ■ Strong price mix offs
Slide 11: Evolution by business group
Evolution by business group 2017 Organic Revenue by division (€m) 2018 proforma growth* Energy Solutions 1% ■ Q3 339 328 (1.2%) & Specialties ■ 9-months 992 975 +2.0% Filtration & Performance ■ Q3 302 325 +3.7% Additives ■ 9-months 932 982 +4.9% Ceramic ■ Q3 215 215 +3.4% Materials ■ 9-months 672 63
Slide 12: Net income from current operations
Net income from current operations (€m) 9M 2017 9M 2018 Proforma Reported Proforma Reported change ■ Current operating income 480 409 425 +3.9% ■ Current financial expense (63) (62) (49) - ■ Current income tax (123) (102) (111) - ◆ Current tax rate 29.5% 29.5% 29.6% - ■ Minority interests (0) (1) 1
Slide 13: Outlook
3 Outlook Conrad Keijzer - Chief Executive Officer
Slide 14: 2018 outlook
2018 outlook ● Market conditions to remain challenging in the fourth quarter ◆ Less supportive macro environment ◆ Persistent headwinds on volumes ◆ Inflation of input costs ● Fourth quarter performance expected to be in line with the third quarter ◆ High comparison basis in the fourth quarter ◆ Fav
Slide 15: Appendix
4 Appendix
Slide 16: 9-months top-line growth
9-months top-line growth Revenue bridge (€m) +9.3% -4.4% +4.5% +9.4% (140) 144 (227) 293 3,464 3,394 of which 3,167 Kerneos: €250m Volumes: + 0.7% Price-mix: + 3.8% 9M 2017 Roofing 9M 17 Perimeter FX Volumes 9M 2018 proforma price-mix Reported of Roofing 16 October 31, 2018 Q3 2018 Results
Slide 17: 9-months current operating income
9-months current operating income Current operating income bridge (€m) 32 (22) 409 Volumes: 13 Price-mix: 105 12.9% 12.6% Operating margin 12.3% 9M 2017 Perimeter 9M 2018 FX proforma of (including Roofing Kerneos) ■ Contribution from acquisitions, as per plan ■ Negative foreign currency impact (- 0.
Slide 18: Revenue and Current Operating Income by quarter
Revenue and Current Operating Income by quarter Historical Data Proforma of Roofing Data Revenue (€m) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Energy Solutions & Specialties 321.6 332.0 338.7 334.3 319.7 321.6 332.0 338.7 334.3 319.7 327.9 327.7
Slide 19: Current Operating Income and margin by semester
Current Operating Income and margin by semester Historical Data Proforma of Roofing Data Current Operating Income (€m) H1 2017 H2 2017 H1 2017 H2 2017 H1 2018 Energy Solutions & Specialties 68,8 72.3 68,8 72.3 57.1 Filtration & Performance Additives 125.0 129.2 125.0 129.2 121.8 Ceramic Materials 10
Slide 20: Revenue breakdown, proforma of Roofing division
Revenue breakdown, proforma of Roofing division Revenue by geography as of 30/09/18 Revenue by end-market (2017) 40% 20 October 31, 2018 Q3 2018 Results
Slide 21: Energy Solutions & Specialties (28% of revenue)
Energy Solutions & Specialties (28% of revenue) (€m) 2017 2018 Change LFL Change (1) ■ H1 653.6 647.6 -0.9% +3.7% ■ Q3 338.7 327.7 -3.2% -1.2% ■ 9 months 992.3 975.3 -1.7% +2.0% Revenue by division 1% ■ Contrasted trends across geographies in the Carbonates division (growth in emerging markets offse
Slide 22: Energy Solutions & Specialties
Energy Solutions & Specialties 9M 2018 Revenue by geography ■ Carbonates ◆ Natural (GCC) and Precipitated (PCC) Calcium Carbonates used as filling or coating pigment for paper production and functional additives for paints, plastics, etc.. ■ Monolithic Refractories ◆ Unshaped refractory materials us
Slide 23: Filtration & Performance Additives (28% of revenue)
Filtration & Performance Additives (28% of revenue) (€m) 2017 2018 Change LFL Change (1) ■ H1 629.4 656.5 +4.3% +5.5% ■ Q3 302.2 325.2 +7.6% +3.7% ■ 9 months 931.5 981.7 +5.4% +4.9% Revenue by division ■ Market environment broadly supportive ■ Performance Additives division impacted by uncertainty o
Slide 24: Filtration & Performance Additives
Filtration & Performance Additives 9M 2018 Revenue by geography ■ Performance Additives ◆ Additives for paints, plastics, polymers, rubbers, 2% adhesives, sealants, pharma & personal care (mainly talc, mica and wollastonite, etc.) ■ Filtration ◆ Filtration minerals providing filter aid for edible li
Slide 25: Ceramic Materials (18% of revenue)
Ceramic Materials (18% of revenue) (€m) 2017 proforma 2018 Change LFL Change (1) ■ H1 456.2 423.3 -7.2% +1.5% ■ Q3 215.4 214.5 -0.4% +3.4% ■ 9 months 671.5 637.8 -5.0% +2.1% Revenue by division ■ Disposal of the Roofing division closed in October 2018 ■ Good momentum in the third quarter of 2018, pa
Slide 26: Ceramic Materials
Ceramic Materials 9M 2018 Revenue by geography ■ Ceramics ◆ Raw materials and bodies for tableware, sanitary and floor tiles, quartz, technical ceramics ■ Kaolin ◆ Kaolin for applications in the paper, paints, plastics, ceramics and refractories markets, etc. 26 October 31, 2018 Q3 2018 Results
Slide 27: High Resistance Minerals (26% of revenue)
High Resistance Minerals (26% of revenue) (€m) 2017 2018 Change LFL Change (1) ■ H1 355.7 633.9 +78.2% +16.3% ■ Q3 263.1 309.4 +17.6% +12.3% ■ 9 months 618.8 943.3 +52.5% +14.6% Revenue by division ■ Like-for-like revenue growth supported by firm price-mix due to a strong inflation in raw materials
Slide 28: High Resistance Minerals
High Resistance Minerals 9M 2018 Revenue by geography ■ Fused Minerals ◆ Fused alumina and bauxite for abrasives (cutting, grinding and polishing mills, sandpapers), zirconium for refractories, oxygen sensor ■ Aluminates ◆ Binders and additives for soil preparation mortars, self-leveling screeds, gl
Slide 29: Imerys
Imerys 43 Quai de Grenelle Investor Relations 75015 PARIS Vincent GOULEY + 33 (0)1 49 55 63 00 + 33 (0)1 49 55 64 69 www.imerys.com [email protected]