Imerys Sa · EURONEXT:NK
Imerys Sa — FY2009 Earnings Presentation
25 slides from Imerys Sa's earnings presentation, Feb 15, 2010
Slide 1: 2009 Results
2009 Results Meeting of February 15, 2010 d Gérard Buffière Chief Executive Officer d Michel Delville Chief Financial Officer 1
Slide 2: Agenda
d 2009: sharp collapse in volumes d Efficiency of action plans d Strengthened financial structure d Outlook 2
Slide 3: 2009 highlights
2009 highlights 3 d Record collapse in volumes z Sales: €2,773.7 million Æ -19.9% at comparable Group structure and exchange rates of which -23.8% volume effect d Efficiency of action plans z Current operating margin: 9.0% (- 3.0 points) Æ Reduction in fixed costs and overheads (cash): - 15% z Curre
Slide 4: Unprecedented collapse in volumes in all business groups
Unprecedented collapse in volumes 4 in all business groups ( - 0.2%) + 17.4 (- 23.8%) 3,449.2 - 5.7 (+ 0.5%) - 19.6% on current + 132.6 basis - 819.8 (+ 3.9%) 2 773.7 (€ millions) - 19.9% at comparable Group Structure and exchange rates 2008 sales Structure Exchange Volumes Price/Mix 2009 sales rate
Slide 5: Agenda: Efficiency of action plans
d 2009: sharp collapse in volumes d Efficiency of action plans d Strengthened financial structure d Outlook 5
Slide 6: Efficiency of action plans
Efficiency of action plans 6 d Results of action plans exceed our expectations z Inventories: - €171 million Sharp decline in production z Fixed cost savings: - €158 million Q1 2009 H1 2009 9 M 2009 2009 Q1 2009 H1 2009 9 M 2009 2009 - 42.0 - 129.4 - 155.1 - 171.0 € millions - 28.6 - 85.6 - 133.5 -
Slide 7: Operating margin in line with 10% target for early 2010
Operating margin in line with 10% target 7 for early 2010 12.0% Operating margin 9.0% + 5.7 - 41.0% at comparable Group 414.6 - 1.6 - 372.1 Structure and exchange rates + 157.8 - 40.0% on current basis (€ millions) - 70.2 248.9 + 129.2 - 14.5 COI Group Exchange Volumes Price/Mix Variable Fixed costs
Slide 8: Minerals for Ceramics, Refractories, Abrasives & Foundry
Minerals for Ceramics, Refractories, 8 Abrasives & Foundry (28% of consolidated sales) (€ millions) 2009 2008(1) Change - 32.2% Sales 794.5 1,159.8 Comparable(2) Current operating income 44.0 127.8 - 65.6% Current operating margin 5.5% 11.0% - 5.5 points d Sharp downturn in industrial equipment, d S
Slide 9: Performance & Filtration Minerals
Performance & Filtration Minerals 9 (18% of consolidated sales) (€ millions) 2009(1) 2008(2) Change - 14.5% Sales 500.7 571.5 Comparable(3) Current operating income 26.9 46.1 - 41.7% Current operating margin 5.4% 8.1% - 2.7 points d US housing starts at lowest level since 1963 d Mining programs stop
Slide 10: Pigments for Paper
Pigments for Paper 10 (23% of consolidated sales) (€ millions) 2009(1) 2008(2) Change - 14.0% Sales 631.9 719.2 Comparable(3) Current operating income 41.6 60.2 - 30.9% Current operating margin 6.6% 8.4% - 1.8 point d Slow recovery in paper production d Industrial assets adjusted to downturn since 3
Slide 11: Materials & Monolithics
Materials & Monolithics 11 (31% of consolidated sales) (€ millions) 2009 2008(1) Change - 13.9% Sales 875.6 1,041.4 Comparable(2) Current operating income 168.0 228.3 - 26.4% Current operating margin 19.2% 21.9% - 2.7 points d Downturn in single-family housing starts in d Industrial reorganization i
Slide 12: Agenda: Strengthened financial structure
d 2009: sharp collapse in volumes d Efficiency of action plans d Strengthened financial structure d Outlook 12
Slide 13: Strengthened financial structure
Strengthened financial structure 13 d Sharp decrease in operating working capital : - €235 million Allowing for the factoring program d Net debt reduction of approximately €600 million at €964 million d Financial structure z Net debt / EBITDA: 2.3x z Net debt / Shareholders’ equity: 52% z Total fina
Slide 14: Tight management of Operating Working Capital
Tight management of Operating Working 14 Capital (OWC) (€ millions) 600 - €144 million in 2009 Receivables 500 of which factoring d Implementation of a deconsolidating 400 factoring contract in 3rd quarter 2009 300 (€83.0 million trade receivables 12/31/2008 12/31/2009 200 Q1 2009 Q2 2009 Q3 2009 tr
Slide 15: Net debt reduction to €964 million
€1,566 million Net debt 12/31/2008 (1) Of which factoring: €83 million Fre cas e curr h fl e + 450 ow (1)nt op e rat ing Fin a -8 and ncia oth l res er W ults reduction: CR Ext - 44 Organic debt €398 million(1) cas raord h fl inar ow y Net debt below €1 billion Rig hts iss ue + 251 Div ide nd - 63 D
Slide 16: Financial expense
Financial expense 16 (€ millions) 2009 2008(1) Net financial debt expense (69.2) (57.0) Change (5.8) 11.8 Net financial expenses related to pensions (6.8) (0.8) Other financial income and expenses (1.6) (1.1) Financial expense (83.4) (47.1) (1) 2008 results were restated following two presentation c
Slide 17: Net income from current operations
Net income from current operations 17 (€ millions) 2009 2008(1) Change Current operating income(2) 248.9 414.6 - 40.0% Financial expense (83.4) (47.1) Current income tax (46.2) (98.0) Net income from current 119.3 267.1 - 55.3% operations, Group share(3)(4) (1) 2008 results were restated following t
Slide 18: Net income affected by restructuring plans
Net income affected by restructuring 18 plans (€ millions) 2009 2008(1) Change Net income from current operations, 119.3 267.1 - 55.3% Group share(2)(3)(4) Other revenue and expenses, net (78.0) (105.8) • Income from asset disposals 11.3 0.1 • Cash expenses (53.0) (55.6) (restructuring, litigations)
Slide 19: Agenda: Outlook
d 2009: sharp collapse in volumes d Efficiency of action plans d Strengthened financial structure d Outlook 19
Slide 20: Stable dividend despite fall in current net income
Stable dividend 20 despite fall in current net income 2009 2008 Change Net income from current 1.66 3.96 - 58.3% operations per share (euros) Dividend per share 1.00(1) 1.00 Stable (euros) Total payout (€ millions) 75.4 62.8 + 20.0% Payout ratio 63.2% 23.5% Average weighted number 72 054 523 67 486
Slide 21: Very slow economic recovery
Very slow economic recovery 21 Steel production in Europe and North America Global production of printing and writing paper EU (27): - 30% USA: - 34% - 11% 2009 vs. 2008 000's tonnes 29,000 17 0 0 0 2009 vs. 2008 28,000 15 0 0 0 27,000 13 0 0 0 26,000 11 0 0 0 25,000 9 000 24,000 7 000 23,000 5 000
Slide 22: Yet-to-be confirmed signs of recovery
Yet-to-be confirmed signs of recovery 22 Impact of volumes on sales Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 d Slight improvement in volumes since 3rd quarter 2009 - 11,1% d Favorable base effect towards end -17,1% of year -24,7% - 25,5% Æ Q4 2009 vs. Q4 2007: - 25.5% -28,2% -30,2%
Slide 23: 2010 outlook
2010 outlook 23 d Limited visibility into business momentum for the coming quarters d Target of 10% operating margin in early 2010 confirmed d Priorities remain cash flow generation and disciplined management d Industrial assets in perfect working order to benefit fully from the upturn d Higher grow
Slide 24: In conclusion, Imerys means
In conclusion, Imerys means 24 d A proven business model z Steady growth, accelerated by acquisitions z Cash generation z Ability to achieve a double-digit operating margin on a regular basis d A world leader in its business d Strong competitive advantages z High quality industrial assets (mines, pr
Slide 25: 2009 Results
2009 Results Meeting of February 15, 2010 d Gérard Buffière Chief Executive Officer d Michel Delville Chief Financial Officer 25