Imerys Sa · EURONEXT:NK
Imerys Sa — H1 2019 Earnings Presentation
23 slides from Imerys Sa's earnings presentation, Jul 25, 2019
Slide 1: H1 2019 Results
H1 2019 Results July 25, 2019 Conrad KEIJZER - CEO Olivier PIROTTE - CFO
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.19-0175 March 20, 2019 with Autorité des Marchés Financiers. Imerys draws the attention of investors to the “Risk
Slide 3: H1 2019 Results agenda
H1 2019 Results 1 Results 4 2 Outlook 16 3 Appendix 19
Slide 4: Results
1 Results
Slide 5: H1 2019 results highlights
H1 2019 results highlights REVENUE ■ Continuing challenging macroeconomic conditions, particularly in €2,263m industrial, refractory and automotive markets ORGANIC GROWTH 1 ■ Positive price - mix (+ 2.7%) more than offsetting inflation of input costs (1.5%) CURRENT OPERATING INCOME 2 ■ Profitability
Slide 6: Q2 volume trends reflect continued challenging macroeconomic environment
Q2 volume trends reflect continued challenging macroeconomic environment Organic growth, volumes and price - mix (y-o-y, proforma1) Organic growth +3.1% +1.4% +4.2% +6.3% +4.7% +6.0% +3.1% +0.3% -0.9% -2.0% (1) Excluding the Roofing division which has been divested in 2018 6 July 25, 2019 First Half
Slide 7: Price - mix more than offsetting cost inflation
Price - mix more than offsetting cost inflation Price - mix and variable cost balance (€m, y-o-y, proforma) Price mix cost balance: €9m Variable costs inflation ■ Contribution of the two business segments to the price - mix ■ Raw material inflation easing in Q2 7 July 25, 2019 First Half 2019 Result
Slide 8: Cost containment measures start delivering visible savings
Cost containment measures start delivering visible savings Reduction of fixed costs and overheads (€m, y-o-y) €(19)m in H1 €(10)m Withdrawal from ceramic proppants market and Namibian operations under care & maintenance regime €(9)m Gradual ramp up of the cost containment measures launched in Q1 201
Slide 9: Effective cash flow management
Effective cash flow management Evolution of net current free operating cash flow (€m) Control over inventories Disciplined capital allocation H1 2019 9 July 25, 2019 First Half 2019 Results
Slide 10: Organic growth reflecting continued challenging market environment
Organic growth reflecting continued challenging market environment (€m) Organic growth: -1.5% 2,311 (53) -2.0% (reported) 2,258 2,263 -2.3% -0.6% +2.3% -4.2% +2.7% Deconsolidation Disposal of non Positive exchange Weak industrial, Positive price mix of North American core assets rate impact, automot
Slide 11: Cost containment measures and Group transformation plan start contributing positively to current operating income
Cost containment measures and Group transformation plan start contributing positively to current operating income (€m) Price mix offsetting rise in variable costs -13.6% 245 Deconsolidation of North American Decisions re. ceramic talc subsidiaries proppants /Namibian operations and cost containment
Slide 12: Performance Minerals: soft market conditions in Europe and in the USA, revenue down 0.9%
Performance Minerals: soft market conditions in Europe and in the USA, revenue down 0.9% LFL excluding Willsboro temporary shutdown H1 19/H1 18 Revenue (€m, LFL 1 change) Q1 2019 Q2 2019 H1 2019 current change ■ Americas 282 (-2.8%) 274 (-3.4%) 555 (-3.1%) -7.8% ■ EMEA 259 (-0.2%) 257 (-3.2%) 515 (-
Slide 13: High Temperature Materials & Solutions: weaker industrial and automotive markets in the second quarter
High Temperature Materials & Solutions: weaker industrial and automotive markets in the second quarter H1 19/H1 18 Revenue (€m, LFL 1 change) Q1 2019 Q2 2019 H1 2019 current change ■ High Temperature Solutions 201 (-1.8%) 209 (-3.4%) 410 (-2.6%) -3.2% ■ Refractory, Abrasives, Construction 319 (-0.2%
Slide 14: Net income from current operations: €159 m
Net income from current operations: €159 m (€m) H1 2018 1 H1 2019 Variation ■ Current operating income 283.8 245.1 2 -13.6% ■ Current financial expense (33.6) (18.4) na ■ Current income tax (74.0) (65.8) + 11.2% ◆ Current tax rate 29.6% 29.0% - 0.6 point ■ Minority interests 0.2 (2.3) - Net income f
Slide 15: Sound financial structure
Sound financial structure Net financial debt evolution in H1 2019 (€m) (€m) As at June 30, 2019 Without IFRS 16 ■ Bonds 1,924 (1) ■ Other indebtedness 224 171 ■ Gross indebtedness 2,148 1,297 ■ Cash 629 1.6x Net Debt to EBITDA 2.0x Net debt without IFRS 16 1,519 (1) 40% Financial gearing (1) 48% Net
Slide 16: Outlook
2 Outlook
Slide 17: Outlook
Outlook 2019 2020 - 2022 Full year net income from current operations Improving organic growth expected to decline by around 10% versus 2018 and profitability ■ Forecasted impact of ca. -7% of the deconsolidation of ■ Gradual ramp-up of organic growth to reach underlying North American talc subsidia
Slide 18: Appendix
3 Appendix
Slide 19: Business Segments
Business Segments 19 July 25, 2019 First Half 2019 Results
Slide 20: Revenue breakdown
Revenue breakdown Revenue by geography in H1 2019 Revenue by end market in 2018 20 July 25, 2019 First Half 2019 Results
Slide 21: Resilient operating profitability despite weaker trading conditions
Resilient operating profitability despite weaker trading conditions COI (€m, as % of revenue) H1 2018 H1 2019 ■ Performance Minerals 182 (14.2%) 144 (11.6%) ■ High Temperature Materials & Solutions 112 (10.7%) 97 (9.3%) ■ Other (10) 4 ■ Group 284 (12.3%) 245 (10.8%) 21 July 25, 2019 First Half 2019
Slide 22: Historical Performance
Historical Performance Revenue (€m) FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Performance Minerals 2,575 668 661 632 641 2,602 632 650 641 636 2,559 623 621 Americas 1,283 324 319 301 325 1,269 295 307 314 310 1,227 282 274 Europe, Middle
Slide 23: 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]