Imerys Sa · EURONEXT:NK
Imerys Sa — Investor Day (November 2022)
114 slides from Imerys Sa's investor day presentation, Nov 7, 2022
Slide 1: Unlocking Better Futures
Unlocking Better Futures Capital Markets Day | November 7, 2022 1 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 2: Disclaimer
Disclaimer More comprehensive information about Imerys may be obtained on its website (www.imerys.com), under Regulated Information, including its Universal Registration Document filed under No. D.22-0131 in March 22, 2022 with Autorité des Marchés Financiers. Imerys draws the attention of investors
Slide 3: Today's Speakers
Today’s Speakers Alessandro Dazza Olivier Pirotte Philippe Bourg CEO Chief Strategy Senior Vice President Italian & M&A Officer Refractory, Belgian Abrasives & Construction French Sébastien Rouge Frank Wittchen Guillaume Delacroix CFO Vice President Senior Vice President French and General Manager P
Slide 4: Agenda
Agenda ◆ 14:00 - 14:30 Vision and strategic roadmap: Unlocking better futures (A. Dazza) Where ◆ 14:30 - 15:00 Financial performance, ambition and capital allocation (S. Rouge) we want ◆ 15:00 - 15:30 ESG at the core of our strategy (L. Wilson) to go ◆ 15:30 - 16:00 Q&A session SHORT BREAK (30 minut
Slide 5: Vision and strategic roadmap: Unlocking better futures
Vision and strategic roadmap: Unlocking better futures Alessandro Dazza CEO 5 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 6: Diagnostic on Investors' concerns
Diagnostic on Investors’ concerns Lack of organic growth Significant exposure to structurally declining markets (paper, foundry) Complex company to understand Relies on acquisitions to grow Losing market shares High exposure to cyclical markets (iron & steel) 6 November 7, 2022 | Imerys 2022 Capital
Slide 7: Welcome to the New Imerys
Welcome to the New Imerys ● We transformed to be more: efficient and profitable, more customer-centric and market-focused ● We are posting organic growth and gaining market shares ● We have positioned ourselves on growing underlying markets: ongoing divestitures will largely remove exposure to decli
Slide 8: Imerys in a nutshell
Imerys in a nutshell Who we are What we offer Whom we serve World’s leading supplier High added-value solutions Plastics, rubber, Building paints & adhesives & infrastructure of mineral-based specialty solutions to different industries We succeed through: €4.4bn revenue Best-in-class resources, oper
Slide 9: Imerys: a solid business model in an attractive industry
Imerys: a solid business model in an attractive industry Minerals are essential to society and a key component in our lives, our homes and our economies. A winning business model ● Market leader in 75% of our businesses ● Strong customer loyalty ● Partner for innovation (more than 80 new products in
Slide 10: Imerys has delivered on its Connect & Shape transformation
Imerys has delivered on its Connect & Shape transformation, and is ready for the challenges of the future Imerys is now a more agile, customer-centric organization with a simplified / delayered structure, supported by centers of excellence Reminder: “Connect & Shape” objectives as presented during 2
Slide 11: We want more of Imerys to grow faster together!
A clear message from Imerys Customers: We want more of Imerys to grow faster together! Ease of Doing business with Imerys Innovations that matter for my Growth “To have a single point of contact “The large portfolio of Imerys is now more @Imerys makes it easier to work understandable” with and speed
Slide 12: A new Imerys: entering the next phase of growth
A new Imerys: entering the next phase of growth Specialty Downstream Market Underlying minerals & installation trend megatrends Lightweighting, Plastics / Adhesives / Sustainable Rubber / Paints construction ● Portfolio management: regular review of Sustainable Ceramics construction performance and
Slide 13: Ongoing divestitures position Imerys on growing end-markets
Ongoing divestitures position Imerys on growing end-markets Imerys end-markets (% revenue 2021) Pre-divestitures New Imerys Ongoing divestiture Paper of paper assets Industry & Equipment 9 0% % Industry 13% 11% 30% Construction Energy & Electronics 11% 40% Construction & Infrastructure Automotive 13
Slide 14: Benefiting from megatrends, Imerys is ready to deliver superior growth
Benefiting from megatrends, Imerys is ready to deliver superior growth Alignment with megatrends post contemplated divestitures (% revenue 2021) >85% Industry revenue & Equipment supported by 3 key megatrends Energy & Electronics 13% Sustainable Construction 11% 40% Construction & Infrastructure Gre
Slide 15: Ready to invest in fast growing markets with higher profitability
Ready to invest in fast growing markets with higher profitability Green Mobility Sustainable Natural solutions Development & Sustainable Energy Construction for consumer goods into Lithium Mobile energy Green energy High performance Feeding the world and durable building Lightweighting Reduced CO2 e
Slide 16: Accelerating organic growth: +3-5% CAGR 2023-2025
Accelerating organic growth: +3-5% CAGR 2023-2025 ● Contemplated disposals of declining Annual organic growth 2023 - 2025 net of inflation activities (graphic paper, -6% p.a. on average) and cyclical businesses (HTS) improving the Group’s growth profile ● Exposure to society’s megatrends and dedicat
Slide 17: Wrap-up | Unlocking better futures
Wrap-up | Unlocking better futures ● Successfully transformed: efficient and customer centric organization driving sales growth and market shares gains ● Proven and resilient business model, delivering superior performance ● Accelerating organic growth, thanks to exposure to growing underlying marke
Slide 18: Financial performance, ambition and capital allocation
Financial performance, ambition and capital allocation Sébastien Rouge Chief Financial Officer 18 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 19: After Transformation and Covid-19, Imerys is a stronger Group
After “Transformation” and the Covid-19 crisis, Imerys is a stronger Group More More More profitable focused dynamic ● Structural progress on cost base/ ● Contemplated disposal of assets ● Acceleration of organic growth productivity gains serving the paper markets thanks to investments and the High
Slide 20: Resilient financial performance despite Covid-19 and high inflation
Resilient financial performance despite Covid-19 crisis and current high inflation context Current EBITDA (€m) and margin (%) ● Track record of business resilience Guidance ● Delivering on savings plan during Covid-19 793 810-840 777 765 761 ● Tight control of operating spend 631 ● Pricing disciplin
Slide 21: Strong track record of selling price increases
Strong track record of selling price increases to compensate cost inflation Selling price increase Price – cost balance (€m) Variable cost Fixed costs and overheads Price effect 48 11.9% 18.3% 34 3.7% 3.2% 22 2.2% 1.1% 0.7% 29 54 2017 2018 2019 2020 2021 2022 YTD 2017 2018 2019 2020 2021 2022 1 2 3
Slide 22: Solid cash generation to support future developments
Solid cash generation to support future developments Net current free operating cash flow (€m) ● Solid and resilient cash throughout the period 373 348 ● Maintaining strict control 294 286 300 on working capital despite 45 Growth inflationary trend capex ● Increased capex to support future growth 25
Slide 23: New Imerys focused on performance minerals, with strong balance sheet
New Imerys focused on performance minerals, with strong balance sheet Imerys pre ongoing divestitures Imerys post ongoing divestitures Actual FY 2021 Proforma FY 2021 Current Margin as % Net financial Current Margin as % Net financial Revenue EBITDA of revenue debt ratio Revenue EBITDA of revenue de
Slide 24: Improving current EBITDA margin
Improving current EBITDA margin Increase of current EBITDA margin With normalized inflation levels from 2023 ● Step up of organic growth ● Acceleration of purchasing and industrial 18-20% cost optimization programs: 16.5% Contribution Acceleration of strategic ○ Transversal expertise to optimize cos
Slide 25: Maintaining a disciplined capital allocation
Maintaining a disciplined capital allocation and focus on profitable growth Net current free operating cash flow Proceeds from ongoing disposals (before growth/ strategic capex) Investing Retaining an investment grade Delivering attractive in the business credit rating shareholder return ● Ambitious
Slide 26: Potential capital allocation 2023-2025
Potential capital allocation 2023-2025 Capital resources and allocation Resources Potential uses ● Proceeds from disposals exclude 2023-2025 2023-2025 earn-out, minority interests and other adjustments Cash flow ca. 33% Strategic capex ● Strategic capex as per current business before strategic ca. 5
Slide 27: Committed to retaining an investment grade credit rating
Committed to retaining an investment grade credit rating Financial leverage ratios ● Strong credit profile • Gearing and net leverage back to historically low levels • Commitment to remain Investment Grade • Bond maturity: €1.7bn with 5.4 years average maturity • Financial flexibility with €1.16 bil
Slide 28: Investing in the business through growth capex
Investing in the business through growth capex Capex (€m) Growth capex, excluding lithium project Recurring capex ● Capex program in fast-growing businesses: 500 • 40% of annual capex on average between 2023 and 2025 400 • Targeted IRR >15% 336 300 ● Optimization of recurring capex year-on-year 292
Slide 29: Integrating ESG considerations in investments and financing
Integrating ESG considerations in investments and financing Concrete actions ● Integrating climate considerations in our investments to reduce carbon emissions of our operations • Introduction of an internal carbon price in our capex and acquisition projects (carbon price increased from €50 to €80 p
Slide 30: Imerys 2023-2025: entering a new phase of profitable growth
Imerys 2023-2025: entering a new phase of profitable growth and attractive shareholders return Revenue growth Profitability Financial leverage Shareholders return 3.0-5.0% 18-20% current Investment DPS +[3.0]% p.a. EBITDA on sales Grade increase Organic growth Supported by growth, pricing, Maintaini
Slide 31: ESG at the core of our strategy
ESG at the core of our strategy Leah Wilson Chief Sustainability Officer 31 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 32: Our ambition is to unlock the sustainable potential of minerals
Our ambition is to unlock the sustainable potential of minerals As consumption levels around the world increase, the growing demand for natural resources places pressure on our natural systems. As the world’s leading supplier of mineral-based specialty solutions, the technical expertise and innovati
Slide 33: Robust governance and engaged teams
Robust governance and engaged teams: driving sustainable performance ● Active stewardship Board of by Board of Directors Directors ● ESG Referent Director on the Board ● Executive pay linked to quantified Sustainability Committee ESG targets chaired by CEO ● Group ambitions cascaded Operational Comm
Slide 34: Creating value for our stakeholders is our license to operate
Creating value for our stakeholders is our license to operate Commitments Key achievements Going forward ● Align operations with the UN 365 Global Compact Ten Principles local community initiatives developed since 2012 ● Take strategic actions to advance the UN Sustainable Development Goals 55 initi
Slide 35: Caring for our planet by decarbonizing our operations
Caring for our planet by decarbonizing our operations Commitments Key achievements Going forward ● 2°C trajectory SBTi validated Greenhouse Gas Emission Reduction ● Report transparently on progress target (tCO2/Eur) using robust metrics and targets in line with the TCFD ● Reduce Group CO2 emissions
Slide 36: Caring for our planet by accelerating towards 1.5°C trajectory
Caring for our planet by accelerating towards 1.5°C trajectory Future commitments Trajectory towards 1.5°C ● Committed to submitting updated SBTi targets aligned to 1.5°C in absolute values within the next 6 months ● Reduce Group CO2 emissions by 42% by 2030 in absolute terms -42% tCO2e (tCO2) from
Slide 37: Caring for our planet by operating with no net loss of biodiversity
Caring for our planet by operating with no net loss of biodiversity Commitments Key achievements Going forward ● Signatory of act4nature Achieve the ambitions defined within Group act4nature commitments ● Improve Imerys environmental and scientific expertise 100% ● Implement actions to reduce the co
Slide 38: Caring for our planet by operating with no net loss of biodiversity
Caring for our planet by operating with no net loss of biodiversity Commitments Key achievements Going forward ● Optimize the use of natural resources 26% of sites reporting recycled water ● Contribute to resource recovery by finding destinations 20% for our wastes increase compared to 2020 ● Introd
Slide 39: Building for the future by assessing our portfolio of sustainable solutions
Building for the future by assessing our portfolio of sustainable solutions Commitments Key achievements Going forward ● Assess 40% of our portfolio using SustainAgility Solution Assessments ● Quantify and demonstrate the SustainAgility Solutions the enabling potential of minerals Assessment framewo
Slide 40: Building for the future by steering our innovation and portfolio
Building for the future by steering our innovation and portfolio Commitments Key achievements Going forward Ensure at least ● Integrate environmental ● Push the boundaries of Group and social criteria as a key levers 50% products to meet customers’ needs for innovation and portfolio of New Product D
Slide 41: ESG testimony Evelyne Prat
Building for the future by helping our customers achieve their targets ESG testimony Evelyne Prat Cementitious Technology Head 41 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 42: Leading within our industry by setting the bar higher
Leading within our industry by setting the bar higher For our people For our customers For our planet Delivering solutions Protecting the environment Leading with health and safety that create value and promoting biodiversity Fostering a diverse, equitable Pioneering the solutions Decarbonizing our
Slide 43: Recognized performance from leading ESG rating agencies
Recognized performance from leading ESG rating agencies 2021/2022 selected ESG ranking ● Quantification of performance with robust scientific methodologies (-D to A) (0 to 100) (CCC to AAA) (100 - 0) 0 = low risk ● Alignment with leading standards on dialogue and transparency B 70 AA 32 ● Communicat
Slide 44: Wrap-up | ESG at the core of our strategy
Wrap-up | ESG at the core of our strategy Reducing the environmental footprint of our operations Developing sustainable Driving sustainable Leading the industrial performance solutions that meet mineral industry to solve at all levels societal needs global challenges of our organization Helping our
Slide 45: Q&A
Q&A 45 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 46: Agenda
Agenda ◆ 14:00 - 14:30 Vision and strategic roadmap: Unlocking better futures (A. Dazza) Where ◆ 14:30 - 15:00 Financial performance, ambition and capital allocation (S. Rouge) we want ◆ 15:00 - 15:30 ESG at the core of our strategy (L. Wilson) to go ◆ 15:30 - 16:00 Q&A session SHORT BREAK (30 minut
Slide 47: Green Mobility & Sustainable Energy
Green Mobility & Sustainable Energy Frank Wittchen Vice President Graphite and Carbon Olivier Pirotte Chief Strategy & M&A Officer 47 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 48: Green Mobility and Sustainable Energy
Green Mobility and Sustainable Energy Mobile energy Lightweighting Sustainable energy 48 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 49: Mobile energy
Mobile energy Frank Wittchen Vice President Graphite and Carbon 49 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 50: Imerys Graphite & Carbon at a glance
Imerys Graphite & Carbon at a glance The business Main applications (not exhaustive) ● Global business offering high tech carbon-based solutions MOBILE ENERGY (Focus of this section) (carbon black, synthetic graphite) c.55% IGC revenue, contributing to Energy transition 2021-2025 CAGR ● Contributing
Slide 51: Fast-growing global business
Fast-growing global business Revenue growth (€m) Revenue by geography CAGR +14% p.a. Americas EMEA APAC 16% 26% 58% 205 138 Serving 2018 2021 (excl. Lac des Iles) (excl. Lac des Iles) ALL TOP 15 battery makers in the world 13% EBITDA margin >> Group’s average 51 November 7, 2022 | Imerys 2022 Capita
Slide 52: Conductive additives: a key ingredient for the performance of batteries
Conductive additives: a key ingredient for the performance of batteries Imerys is the world leader LIB typical composition and cost structure in conductive additives Illustrative Battery Key Material Imerys products recognized as best-in-class structure materials cost3 for their superior performance
Slide 53: Demand for Lithium-ion batteries expected to boom
Demand for Lithium-ion batteries expected to boom, driven by EV adoption Expected growth of Lithium-ion Major factors fostering EV adoption battery demand6 (TWh) EV Others Decreasing Automotive producers Governmental EV costs strategy policies 1.5 0.2 CAGR +36% Decreasing battery Reducing EV product
Slide 54: Demand for conductive additives to experience similar growth
Demand for conductive additives to experience similar growth Demand for conductive additives expected Potential upside factors to accelerate growth to triple by 20257 (kTons) Accelerated adoption of EVs (vs. current scenario) CAGR +31% p.a. Higher penetration of Lithium-Iron-Phosphate (LFP) cathodes
Slide 55: Imerys ideally positioned to benefit from growth of Fuel-Cell
Imerys ideally positioned to benefit from growth of Fuel-Cell, an emerging technology Exceptional growth of fuel-cell demand Imerys products used across multiple expected over the next years8 (GW) parts of a fuel cell stack Fuel cell stack Supplied by Imerys Polymeric x6 Bipolar Plates 30 Carbon Bla
Slide 56: Production capacity expansion to maintain leadership
Production capacity expansion to maintain commercial and technological leadership and capture future market growth Yearly sales in mobile energy Key pillars of Imerys growth plan for mobile energy vs. 2021 ● Expansion of existing assets (€180m capex Expand already committed over past 2 years) produc
Slide 57: Our ambition
Our ambition Ambitioned revenue growth 2025 (€m) ambition Ongoing development plan x1.8 Leadership position >700 # 1 strengthened by capacity increases & product innovation Capex already launched x2.0 x1.6 400 x3 Revenue growth vs. 2018 205 138 -50% CO2 emissions vs. 2018 9 2018 2021 2025 2030 57 No
Slide 58: Lightweighting
Lightweighting Olivier Pirotte Chief Strategy & M&A Officer 58 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 59: Imerys lightweighting business at a glance
Imerys lightweighting business at a glance Imerys sales breakdown by end-market Industry & Equipment ● Lightweighting application for polymers, already accounting 13% Energy for >€100m of sales & Electronics 11% 40% Construction & Infrastructure (~25% of Auto & Transportation) ● The most advanced HA
Slide 60: Lightweighting: a global, increasing requirement
Lightweighting: a global, increasing requirement Legislative requirements Growing demand for EVs for CO2 emission reduction (Push) and high gas-mileage vehicles (Pull) ● Country specific standards more and more ● Consumers (e.g. Gen Z.) preferring clean energy stringent, pushing demand for lightweig
Slide 61: High Aspect Ratio (HAR) minerals: proprietary technology for lightweighting
High Aspect Ratio (HAR®) minerals: an Imerys proprietary technology for lightweighting Imerys solution Growth perspectives ● Imerys’ High Aspect Ratio (HAR®) minerals (e.g.; mica, ● Market growing at a fast pace (~20% per year), with Imerys wollastonite, etc.) improve polymer performance being the u
Slide 62: Project JADE: Imerys growth engine to accelerate in China
Project JADE: Imerys growth engine to accelerate in China Building a greenfield plant …to leverage and unlock in China (JADE)… Imerys potential in Asia ● Serving global and regional leading compounders supplying ● Imerys leadership in Europe enabling sales transfer to existing all major automotive T
Slide 63: Imerys Carbonates
W Imerys Carbonates Prod Ore Processing area Storage Storage Area Jade Plant 63 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 64: Sustainable energy
Sustainable energy Olivier Pirotte Chief Strategy & M&A Officer 64 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 65: The Quartz Corporation at a glance
The Quartz Corporation at a glance The business Main applications 2019-2025 CAGR (HPQ volume) ● Company created in 2011 (JV between Imerys & Norsk Mineral)11 ● Active in the mining & processing of High Purity Quartz +25% p.a. ● Serving the world’s electrification & connectivity industries with solut
Slide 66: Biofuel feedstock purification: rapid growth driven by capacity additions
Biofuel feedstock purification: rapid growth driven by future capacity additions CynerSorb & Traditional Filter Aids ● Cost-effective filter aids for the purification of fats, oils and greases used in bio-diesel and aviation fuel plants ● Lower processing cost by removing unwanted contaminants ● Red
Slide 67: Wrap-up | Green Mobility & Sustainable Energy will drive Imerys growth
Wrap-up | Green Mobility & Sustainable Energy will drive Imerys growth ● Ongoing expansions and future plans will generate >€250m new sales by 2025 and >€600m new sales by 2030 ● EBITDA significantly above Group’s average ● World leader in conductive additives for Lithium-ion batteries, lightweighti
Slide 68: Sustainable Construction
Sustainable Construction Philippe Bourg Senior Vice President Refractory, Abrasives & Construction 68 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 69: Sustainable Construction
Sustainable Construction High performance Decarbonization and sustainable building solutions 69 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 70: Imerys ready to address the sustainability challenges of construction
Imerys ready to address the sustainability challenges of the construction industry xx Existing solution Construction Sustainability Challenges xx Under development Performing & long Energy Carbon Imerys solutions (examples): lasting materials Efficiency12 Footprint Drymix Mortars SEWPER® Coat / Line
Slide 71: High performance and sustainable building
High performance and sustainable building 71 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 72: High performance & sustainable building products at a glance
High performance & sustainable building products at a glance Strong growth in 2021, exceeding Serving mostly the drymix Imerys outperforming market pre-Covid-19 levels and renovation industry Building & Construction Revenues Revenues Breakdown Drymix & Renovation Industry – (€m) by Application (%, 2
Slide 73: Drymix mortar market: rapid growth driven by future capacity additions
Drymix mortar market: Performing & Long lasting materials rapid growth driven by future capacity additions ● Global presence in key markets, where progressive sophistication drives drymix mortar business growth ● Strong push in fast growing markets: South East Asia, India and Middle East ● Sustainab
Slide 74: SEWPER Liner: long-lasting protection from acid corrosion
SEWPER® Liner: long-lasting protection from acid corrosion Performing & Long lasting materials in wastewater infrastructure Longer service life with much lower environmental impact ● SewperLiner®: a unique and innovative solution part of our Sewper® product line ● Multiple benefits: sustainably prot
Slide 75: Mineral Foam & ETICS: solutions for a new way of insulating
Energy Mineral Foam & ETICS: 2 solutions for a new way of insulating Efficiency Mineral foam insulation for buildings High durability solutions for facades ● Development of a mineral foam material ● High performance renders for facades achieving insulation, good mechanical ● Sustainable benefits: re
Slide 76: Decarbonization solutions
Decarbonization solutions 76 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 77: Imerys: comprehensive offer to help customers reduce CO2 emissions
Imerys: comprehensive offer to help our customers reduce CO2 emissions TiO2 substitutes with low carbon footprint in paints Calcium carbonates (carbonate, kaolin, etc.) in plastics (PVC etc.) Natural pozzolans (perlite & metakaolin) Lower CO2 tiles & glass used as a partial replacement for cement th
Slide 78: Decarbonizing the building industry in cement, glass and tiles
Carbon Decarbonizing the building industry in cement, glass and tiles Footprint Green cement through clinker substitution Lower CO2 tiles & glass through minerals use Perlite and metakaolin (pozzolan) as substitute Partnering with key customers in the ceramic to clinker, and calcium aluminates indus
Slide 79: Minerals in plastics for construction: less oil-based chemicals
Energy Efficiency, Minerals in plastics for construction: less oil-based chemicals Carbon Footprint Replacing petrochemical products while exceeding product performances in pipe, siding and appliances ● Lower carbon footprint and requiring less energy and faster production (faster heating & cooling)
Slide 80: Circular economy: integrating waste into building materials
Performing & Long Circular economy: integrating waste into building materials lasting materials, Carbon Footprint Remined™: recycled calcium carbonate providing 100% pre-consumer post-industrial recycled content ● Helping customers reduce carbon footprint & increase LEED13 credits in products such a
Slide 81: Wrap-up | Partner of choice to help decarbonize the construction industry
Wrap-up | Partner of choice to help decarbonize the construction industry ● €1.2 billion in revenues, growing above construction market average ● Ongoing initiatives to generate > €150m of additional revenue by 2025 ● Sizeable development opportunities in the next 5 to 10 years, driven by the need t
Slide 82: Natural solutions for consumer goods
Natural solutions for consumer goods Jim Murberger Senior Vice President Performance Minerals Americas 82 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 83: Natural solutions for consumer goods
Natural solutions for consumer goods Feeding the world Good health and well being 83 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 84: Consumer & Healthcare market at a glance
Consumer & Healthcare market at a glance Above 2019 level, after small Diversified application landscape Imerys outperforming market decrease due to Covid Consumer & Healthcare Revenues Revenues Breakdown Consumer & Healthcare – (excl. Paper) by Application (%, 2021) Imerys Growth vs. Market c. €700
Slide 85: Feeding the world
Feeding the world 85 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 86: Sustainable solutions to improve crop yield
Sustainable solutions to improve crop yield Mineral-based solutions to improve productivity of arable land for organic or conventional farming ● Wollastonite and diatomite having biostimulant effects to increase a plant’s resistance to stress (pest and disease): higher yield ● Mechanical insecticide
Slide 87: Mineral solutions in animal feed
Mineral solutions in animal feed Natural mineral solutions for healthy animals ● Used in diversified applications: • As functional additives in animal feed for adsorbing harmful toxins present in feed • For replacing chemically produced nutrient carriers • As flowability agents • As additives in org
Slide 88: Good health and well being
Good health and well being 88 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 89: Saving lives: Celpure
Saving lives: Celpure® Ultra-high purity filter aid for blood plasma fractionation ● High-performance filter aid engineered for biological components and optimized blood plasma fractionation ● Proprietary technology for mineral purification with state-of-the-art facility to meet strict pharmaceutica
Slide 90: Natural solutions for cosmetics: Imercare
Natural solutions for cosmetics: Imercare® Natural mineral solutions for replacing microplastics and chemicals in cosmetic formulations ● Competitive advantage: high naturality index14 for the same performance ● Preferred solution: high sustainability, low CO2 footprint, sustainable sourcing ● Key n
Slide 91: Wrap-up | Promoting natural solutions for consumer goods
Wrap-up | Promoting natural solutions for consumer goods ● Resilient and growing underlying markets with +€100m potential annual revenue by 2025 from ongoing development projects ● Profitability above Group’s average ● Mineral solutions replacing chemical products in a growing number of applications
Slide 92: Lithium: a game changer
Lithium: a game changer Guillaume Delacroix Senior Vice President Performance Minerals EMEA 92 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 93: Lithium: a key resource for the energy transition
Lithium: a key resource for the energy transition and achieving net zero GHG emissions ● Europe's target (EU Green Deal): net zero greenhouse gas emissions by 2050 ● Fuel combustion across the road transport sector: 20% of EU total greenhouse gas emissions15 ● European Parliament has voted to ban ne
Slide 94: Lithium: a critical component for European independence
Lithium: a critical component for European independence ● Thanks to massive investments, ● However, Europe is currently very dependent the European value chain for batteries on lithium imports is developing downstream • Announced European lithium extraction projects cover less than 50% of the final
Slide 95: Project EMILI: strong economic fundamentals
Project EMILI: strong economic fundamentals Based on ongoing scoping study assumptions, EMILI Project offers an extraordinary potential for Imerys: ● Lithium hydroxide production: 34kt per year18 ● Lithium resources: sufficient to operate at least 25 years with potential for significantly more ● Pro
Slide 96: Imerys' ambition: become a major player in lithium supply to Europe
Imerys’ ambition: become a major player in lithium supply to Europe in the coming five years ● Become one of the primary European suppliers of lithium Announced European lithium projects (kt LCE) for batteries in 5 years and a key player in the energy transition in France and Europe ● Targeted produ
Slide 97: Emili project: Key milestones going forward
Emili project: Key milestones going forward Industrial milestones, subject to authorisations and stakeholder acceptance H1 2024 2025 2028 2023 Preliminary Detailed characterization Industrial pilot Commercial plant mine design of the deposit and plant launch and mine launch established Life of Mine
Slide 98: Mining and industrial technology adapted to the Beauvoir deposit
Imerys best in class mining and industrial technology to be adapted to the specific nature of the Beauvoir deposit Main stages of the process considered for the scoping study Mining Concentration Conversion Feldspar and Tin / Tantalum concentrate Ore Mica Concentrate Calcination, Lithium Crushing, l
Slide 99: Emili deposit attractiveness confirmed
Emili deposit attractiveness confirmed RESOURCE ● Deposit attractiveness confirmed ● 117 mt of inferred resources with an average content of 0.9% of lithium oxide (Li2O), representing more than 1 mt Li2O ● Highest lithium grade in the world for a known lithium-bearing mica project KEY ELEMENTS CONSI
Slide 100: Responsible mining by design
Responsible mining by design ● Targeting an existing industrial zone ● Underground mine with tailings largely 4 ● Maximize use of rail to avoid truck transport backfilled underground to minimize the environmental impact as well as noise and dust 1 and reduce environmental & noise impact ● Electrical
Slide 101: Potential for European Lithium with best-in-class CO2 emissions
Potential for European Lithium with best-in-class CO2 emissions Existing hard rock lithium sources are CO2 intensive Hard rock – Mostly mined in Australia CO2 emissions and converted in China (tCO2 / tLCE): ● Lengthy logistics from the mine reduced by half to the conversion plant to the final custom
Slide 102: Lithium: a game changer for Imerys
Lithium: a game changer for Imerys ● Project EMILI potentially represents a game changer for Imerys, and which could position the Group among the top producers of Lithium in the world ● A dedicated structure and financing will be put in place in due time to support a rapid realization of the EMILI p
Slide 103: Beyond EMILI – Exploring Lithium potential in other Imerys locations
Beyond EMILI – Exploring Lithium potential in other Imerys locations ● Imerys has reviewed potential of lithium in other of its operations with a focus on kaolin quarry ● Imerys is a major player in Kaolin mining in Cornwall (UK) • A thorough assessment of lithium potential in Cornwall is on-going •
Slide 104: Wrap-up | Emili project: a game changer
Wrap-up | Emili project: a game changer ● Lithium is key to achieve the energy transition ● With 34,000 tonnes of lithium hydroxide per year, Imerys could become a leading supplier of lithium in Europe ● >25 years of reserves exploitable at competitive cost ● Imerys lithium will have one of the lowe
Slide 105: Conclusion
Conclusion Alessandro Dazza CEO 105 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 106: Imerys 2023-2025: entering a new phase of profitable growth
Imerys 2023-2025: entering a new phase of profitable growth Revenue growth Profitability Financial leverage Shareholders return 3.0-5.0% 18-20% current Investment DPS +[3.0]% p.a. EBITDA on sales Grade increase Organic growth Supported by growth, pricing, Maintaining investment Dividend per share ou
Slide 107: New Imerys: Unlocking better futures – Our Vision
New Imerys: Unlocking better futures OUR VISION We aim to lead the global specialty minerals industry. Our solutions play a vital role in fulfilling societal needs. The sustainable and innovative products and technologies we offer will increasingly address the global challenges of a greener and equi
Slide 108: Our values
Our values Creating a safe, healthy, and inclusive PEOPLE Every person matters. environment Helping our customers solve tomorrow’s CUSTOMERS Partner of choice. challenges COLLABORATION One team together. Collaborating for better results Continuously learning, improving PERFORMANCE Strive for better.
Slide 109: The new Imerys: an attractive investment proposition
The new Imerys: an attractive investment proposition ● Strong track record of execution 1 Resilient business model ● Market leader, favorable price / cost balance ● Diverse applications and geographies ● Contemplated divestiture of declining and cyclical activities 2 Focus on long term growth ● Posi
Slide 110: Q&A
Q&A 110 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 111: Appendices
Appendices 111 November 7, 2022 | Imerys 2022 Capital Markets Day
Slide 112: Lexicon (1/2)
Lexicon (1/2) Note number Chapter Slide Source / Comments 1 Mobile Energy Imerys Graphite & Carbon at a glance GWh demand 2 Mobile Energy Imerys Graphite & Carbon at a glance GW capacity 3 Mobile Energy Conductives additives Prices as of 2021 - Bloomberg New Energy Finance, excluding manufacture & o
Slide 113: Lexicon (2/2)
Lexicon (2/2) Note number Chapter Slide Source / Comments Lithium: a key resource for the energy transition Includes battery-powered electric vehicles and rechargeable hybrid electric vehicles. 15 Emili project and achieving net zero GHG emissions Sources: Imerys estimate based on market intelligenc
Slide 114: Thank you for your attention
Thank you for your attention Visit www.imerys.com for more information Or connect with us: @imerys www.linkedin.com/company/imerys/ www.facebook.com/imerysgroup/ 114 November 7, 2022 | Imerys 2022 Capital Markets Day