Imerys Sa · EURONEXT:NK
Imerys Sa — 9M 2014 Earnings Presentation
27 slides from Imerys Sa's earnings presentation, Oct 31, 2014
Slide 1: Results to September 30, 2014
Results to September 30, 2014 Conference Call October 31, 2014 Gilles MICHEL – Chairman & CEO Michel DELVILLE – CFO 1
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.14-0173 on March 20, 2014 with Autorité des marchés financiers. Imerys draws the attention of investors to the “R
Slide 3: Conference call: Results to September 30, 2014
Conference call October 31, 2014 Results to September 30, 2014 Outlook 3
Slide 4: Continued growth in results
Continued growth in results Organic growth Current operating income Net income from current (M€) in 9-month revenue and operating margin operations 2,970 387 301 304 2,806 368 375 2,782 + 2.4% 13.5% + 4.2% 239 234 239 13.0% 13.1% 9M12 9M13 9M14 9M12 9M13 9M14 2012 2013 2014 Year 9M XX% Organic growt
Slide 5: Economic environment trends in 3rd quarter 2014
Economic environment trends in 3rd quarter 2014 Wider contrasts within Europe and Emerging countries zones New uncertainties in Europe, particularly over industrial activity with recent slowdown in Germany Firm environment in USA Basis of comparison less favorable in Q3 2014 Revenue by geographic de
Slide 6: Solutions for Energy & Specialties
Solutions for Energy & Specialties (35% of consolidated revenue to September 30, 2014) Organic growth Forex: in 9-month revenue - 40 M€ Positive overall trends, ramp-up of new capacities Group (M€) structure: Monolithic Refractories: good global activity levels in Q3; firm 990 - 35 M€ 940 + 10.4% 96
Slide 7: Filtration & Performance Additives
Filtration & Performance Additives (30% of consolidated revenue to September 30, 2014) Organic growth Forex: in 9-month revenue - 14 M€ Performance & Filtration Minerals: Group (M€) structure: positive momentum on main underlying markets 865 860 849 - 6 M€ Consumer goods + 1.1% 868 840 Construction
Slide 8: Ceramic Materials
Ceramic Materials (18% of consolidated revenue to September 30, 2014) Organic growth in 9-month revenue Minerals for Ceramics: geographic redeployment Group structure: and diversification of offering (M€) 583 - 33 M€ Vibrant demand in emerging zones, improvement in Forex: 539 - 2 M€ Northern Europe
Slide 9: High Resistance Materials
High Resistance Materials (17% of consolidated revenue to September 30, 2014) Organic growth Fused Minerals: impact of slowdown in 9-month revenue in manufacturing activity in Germany (M€) Forex: 574 - 11 M€ and construction in China Chinese activities affected by market trends, 554 497 483 - 0.5% p
Slide 10: Organic growth in 9M revenue: +4.2%
Organic growth in 9M revenue: + 4.2% (M€) - 0.9% - 73.7 on current basis + 45.4 2,806.3 - 68.6 + 72.3 2,781.7 (- 2.6%) (+ 1.6%) ( - 2.5%) ( + 2.6%) Organic growth (LFL): + 4.2% 9M revenue Group structure Forex Volumes Price/Mix 9M revenue 2013 (net) 2014 Group structure effect: mainly divestments (4
Slide 11: Solid operating margin at 13.5%
Solid operating margin at 13.5% (M€) + 35.3 + 2.0% on current + 30.0 - 9.1 basis + 4.8 - 42.3 - 5.9 - 5.6 374.7 367.5 13.1% Operating margin 13.5% 9M COI 2013 Group structure Forex Volumes Price/Mix Variable costs Fixed costs Other 9M COI 2014 (net) & general expenses Contribution of volumes from ne
Slide 12: Current financial expense
Current financial expense € millions 9M 2014 9M 2013 Interest expense, net (29.2) (35.7) Unwinding of long-term provisions (2.2) (3.0) and change in other provisions Net interest expense on pensions (5.9) (7.9) Currency translation, other financial income (0.8) 5.8 and expense and financial instrume
Slide 13: +2.4% growth in net income from current operations
+ 2.4% growth in net income from current operations € millions 9M 2014 9M 2013 Change Current operating income(1) 374.7 367.5 + 2.0% Current financial expense (38.1) (40.8) Current income tax (96.6) (91.2) Minority Interests (0.9) (2.0) Net income from current operations, 239.1 233.5 + 2.4% Group’s
Slide 14: Net income
Net income € millions 9M 2014 9M 2013 Change Net income from current operations, Group’s share (1)(2) 239.1 233.5 + 2.4% Other operating income and expenses, net, and net income of assets held for sale (32.5) (34.0) Net income, Group’s share 206.6 199.5 + 3.5% Other operating income and expenses, ne
Slide 15: Outlook
Conference call October 31, 2014 Results to September 30, 2014 Outlook 15
Slide 16: Outlook: guidance confirmed for 2014
Outlook: guidance confirmed for 2014 Based on the sound performance of the first 9 months, the objective of higher net income from current operations in 2014 than 2013 is maintained In an economic environment characterized by new uncertainties in Europe, in particular over industrial activity Contin
Slide 17: Appendix
Conference call October 31, 2014 Appendix 17
Slide 18: Increase of industrial output and steel production
Increase of industrial output and steel production Manufacturing indexes Europe United States China European industrial output (as at end July 2014) US industrial output (as at end July 2014) Chinese industrial output (as at August 2014 ) (base 100: 2007; source: OECD) (base 100: 2007; source: US Fe
Slide 19: Paper and Construction
Paper and Construction Quarterly production of printing & writing paper 25 000 Printing & writing paper production 9M 2014 vs. 9M 2013 20 000 Mature countries: - 2.4% 15 000 Emerging countries: + 1.8% MT 10 000 World: - 0.4% 5 000 0 2007 Q1 2007 Q4 2008 Q3 2009 Q2 2010 Q1 2010 Q4 2011 Q3 2012 Q2 201
Slide 20: Operationnal organization
Operationnal organization Revenue breakdown by activity * Alessandro Dazza Olivier Hautin Frédéric Beucher Dan Moncino * On full-year 2013 basis 20 October 31, 2014 I Results to September 30, 2014
Slide 21: Quarterly revenue by business group
Quarterly revenue by business group Energy Solutions & Specialties Filtration & Performance Additives + 12,4% LFL in Q3 14 + 0,8% LFL in Q3 14 339 (M€) 314 320 321 307 308 303 293 286 285 291 281 272 274 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Ceramic Mate
Slide 22: Main financial indicators by business group
Main financial indicators by business group (M€) 2013 2012 2011 ENERGY SOLUTIONS & SPECIALTIES Revenue 1,248.2 1,287.9 1,240.4 Current operating income 129.4 143.5 145.7 Current operating margin 10.4% 11.1% 11.7% FILTRATION & PERFORMANCE ADDITIVES Revenue 1,132.2 1,145.8 932.1 Current operating inco
Slide 23: Energy Solutions & Specialties
Energy Solutions & Specialties Carbonates (16% of 2013 Group revenue): 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 (14%): Unshaped refractory materials used
Slide 24: Filtration & Performance Additives
Filtration & Performance Additives Performance & Filtration Minerals (17% of 2013 Group revenue): A wide range of minerals with cutting-edge functional properties Performance Minerals (talc and mica, mostly): additives for paints, plastics, polymers, rubbers, adhesives, sealants, pharma & personal c
Slide 25: Ceramic Materials
Ceramic Materials Building Materials (10% of 2013 Group revenue): Clay roof tiles in France Minerals for Ceramics (8%): Raw materials and bodies for tableware, sanitary and floor tiles, quartz, technical ceramics Kiln furniture (1%): Kiln furniture for the tiles and ceramics industries Japan / Austr
Slide 26: High Resistance Minerals
High Resistance Minerals Fused Minerals (10% of 2013 Group revenue): Fused alumina and bauxite for abrasives (cutting, grinding and polishing mills, sand papers), zirconium for refractories, oxygen sensors Refractory Minerals (7%): Production of acidic refractory minerals as andalusite, chamottes Au
Slide 27: Imerys contact details
Imerys 154 rue de l’Université F-75007 Paris + 33 (0) 1 49 55 63 00 www.imerys.com Analysts / Investors contact Pascale ARNAUD + 33 (0) 1 49 55 64 01 [email protected] 27