Imerys Sa · EURONEXT:NK
Imerys Sa — H1 2014 Earnings Presentation
27 slides from Imerys Sa's earnings presentation, Jul 30, 2014
Slide 1: July 30, 2014 conference call
July 30, 2014 conference call 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: First-half 2014 results
July 30, 2014 conference call First-half 2014 results Outlook 3
Slide 4: Improved results in the first half 2014
Improved results in the first half 2014 Revenue Improved current operations income (M€) LFL growth + 4.4% on comparable basis in all and operating margin (current change: - 2.3%) business at 13.5% (+ 0.5 point) LFL groups 1,986 + 4.4% 265 1,807 1,881 253* 244 248 1,838 13.3% 13.0% 13.5% 13.4% H1 201
Slide 5: Further developments in 2014
Further developments in 2014 Booked capital expenditure (M€) 97 89 Innovation: FiberLeanTM, Innovation: ImerPlastTM, Acquisition: Termorak fibrillated micro-cellulose for polymer recycling Specialist in refractory 92% 88% for the paper industry First production line, UK materials for petrochemicals,
Slide 6: Energy Solutions & Specialties
Energy Solutions & Specialties (34% of consolidated revenue in H1 2014) Forex: (M€) LFL LFL H1 2014 revenue vs. H1 2013 - 32.2 M€ - 3.4% + 9.3% Group 658 structure: + 0.6% current change; + 9.3% on comparable basis 621 - 22.0 M€ 624 Positive overall trends, ramp-up of new capacities Monolithic Refra
Slide 7: Filtration & Performance Additives
Filtration & Performance Additives (30% of consolidated revenue in H1 2014) (M€) Forex: LFL LFL - 18.0 M€ H1 2014 revenue vs. H1 2013 Group - 1.5% + 1.2% structure: - 2.6% current change; + 1.2% on comparable basis - 4.0 M€ 573 574 Firm demand on main markets, except for paper, 559 and good position
Slide 8: Ceramic Materials
Ceramic Materials (19% of consolidated revenue in H1 2014) (M€) H1 2014 revenue vs. H1 2013 600 Group - 6.3% current change; + 3.0% on comparable basis LFL LFL structure: 500 - 3.5% + 3.0% - 31.7 M€ Divestment of Imerys Structure and shutdown 398 Forex: of the Ardoisières d’Angers activity 400 369 -
Slide 9: High Resistance Minerals
High Resistance Minerals (17% of consolidated revenue in H1 2014) (M€) H1 2014 revenue vs. H1 2013 - 2.6 % current change; + 1.3 % on comparable basis LFL LFL Forex: 387 - 11.0% + 1.3% - 13.2 M€ 338 Firm volumes in Fused Minerals except China Slight improvement in Europe (automotive casting) 13.9% 3
Slide 10: Revenue: up + 4.4% on a like-for-like basis
Revenue: up + 4.4% on a like-for-like basis - 2.3% (M€) - 57.6 on current basis - 67.2 + 49.9 + 32.0 1,880.7 (- 3.1%) (+ 1.7%) 1,837.9 ( - 3.6%) ( + 2.7%) LFL + 4.4% H1 2013 Group structure Foreign Volumes Price/Mix H1 2014 (net) exchange Group structure effect: divestment of 4 calcium carbonate sit
Slide 11: Improved operating margin at 13.5%
Improved operating margin at 13.5% (M€) + 24.0 - 4.7 - 24.4 + 1.5 % + 21.5 - 7.1 on current basis - 5.1 - 0.5 247.7 244.0 - 2.3% LFL + 3.8% 13.0% Operating margin 13.5% Group Foreign Volumes Price/Mix Variable Fixed costs Other COI H1 2013 (inc. change COI H1 2014 structure exchange costs & general
Slide 12: Current financial expense
Current financial expense € millions H1 2014 H1 2013 Interest expense, net (20.1) (25.4) Unwinding of long-term provisions (1.2) (1.6) and change in other provisions Net interest expense on pensions (3.8) (5.3) Currency translation, other financial income (2.8) 4.5 and expense and financial instrume
Slide 13: Net income from current operations
Net income from current operations € millions H1 2014 H1 2013 Change Current operating income(1) 247.7 244.0 + 1.5% Current financial expense (27.9) (27.8) Current income tax (62.1) (60.1) Minority Interests (0.2) (1.1) Net income from current operations, 157.5 155.0 +1.6% Group’s share(2)(3) Net in
Slide 14: Net income
Net income € millions H1 2014 H1 2013 Change Net income from current operations, 157.5 155.0 + 1.6% Group’s share(1)(2) Other operating income and expenses, net and net income of assets held for sale (26.0) (26.3) Net income, Group’s share 131.5 128.7 n.a. Other operating income and expenses, net of
Slide 15: Current free operating cash flow
Current free operating cash flow € millions H1 2014 H1 2013 EBITDA 338.4 335.8 Change in operating WCR (57.4) (23.5) Paid capital expenditure (106.6) (119.5) Current free operating cash flow(1) (2) 105.7 129.0 Financial income (net of tax) (20.0) (20.1) Other WCR items 8.5 5.7 Current free cash flow
Slide 16: Sound financial structure
Sound financial structure (M€) Net financial debt: 878 M€, on a par with December 31, 2013 (885 M€) Net debt / Shareholders’ Payment of 124 M€ in dividends equity (%) 38.7 % 46.1 % 39.0 % 38.0 % Payment of Termorak and part of the additional 1,8 contractual price for PyraMax Ceramics, LLC 2,288 2,31
Slide 17: Outlook
July 30, 2014 conference call First-half 2014 results Outlook 17
Slide 18: 2014 Outlook
2014 Outlook 2014 objective: increase in net income from current operations compared with 2013, assuming current economic conditions remain Dynamic activity in North America Some signs of improvement in Europe Uneven activity levels, weaker overall growth in emerging countries Strong euro Refocused
Slide 19: Appendix
July 30, 2014 conference call Appendix 19 July 30, 2014 I First-Half 2014 results
Slide 20: 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 Apr. 2014) 111 US industrial output (as at end May 2014) Chinese industrial output (as at June 2014 ) (base 100: 2007; source: OECD) (base 100: 2007; source: US F
Slide 21: Paper and Construction
Paper and Construction Quarterly production of printing & writing paper 25 Printing & writing paper production 20 H1 14 vs. H1 13 15 Mature countries: - 2% MT 10 Emerging countries: + 2% World: stable 5 0 2008 Q1 2008 Q4 2009 Q3 2010 Q2 2011 Q1 2011 Q4 2012 Q3 2013 Q2 2014 Q1 Mature countries Emergi
Slide 22: 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 23: 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 24: 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 24 July 30, 2
Slide 25: 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 25
Slide 26: 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 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