Imerys Sa · EURONEXT:NK
Imerys Sa — FY2015 Earnings Presentation
39 slides from Imerys Sa's earnings presentation, Feb 12, 2016
Slide 1: 2015 Results
2015 Results February 12, 2016 Gilles MICHEL - Chairman & CEO Olivier PIROTTE - 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.15-0173 on March 19, 2015 with Autorité des marchés financiers. Imerys draws the attention of investors to the “R
Slide 3: 2015 Highlights
February 12, 2016 2015 Results 2015 Highlights 3 February 12, 2016 I 2015 results
Slide 4: 2015: net income from current operations on target
2015: net income from current operations on target Another year of profit growth, in challenging environment Revenue: + 10.8% (- 4.6% LFL(1)) Current operating income (2): + 8.8% Solid operating margin at 13.2% Net income from Positive contribution positive from S&B, initial synergies current operat
Slide 5: Contrasting trends in 2015
Contrasting trends in 2015 Robust growth in new residential and collective housing in the US (+ 11% vs 2014 (1)) Construction 19% Moderate and uneven recovery in Europe & renovation of revenues(*) Current Steady current consumption (e.g. food, consumer electronics, cosmetics, etc.) 15% consumption F
Slide 6: Revenue growth above 4 Bn€
Revenue growth above 4 Bn€ (M€) + 10.8% reported + 218 (216) + 46 + 5.9% 4,087 (5.9%) + 1.3% + 350 3,688 + 9.5% LFL: - 4.6% Ceramic proppants excl.: - 2.5% o/w integration of S&B Revenue 2014 Scope Currencies Volumes Price/mix Revenue 2015 S&B consolidated as of March 1 Positive effects from currenc
Slide 7: Solid operating margin at 13.2%
Solid operating margin at 13.2% (M€) + 8.8% + 41.1 (95.9) reported + 20.4 (24.5) + 47.7 + 19.6 + 35.1 538.1 494.6 494,6 13.4% Operating margin 13.2% 2014 COI Group Currencies Volumes Price/mix Variable costs Fixed costs & Other 2015 COI structure overheads Positive contribution from S&B Favorable im
Slide 8: Improved current operating income
Improved current operating income (M€) COI by business group 538 495 211 210 494,6 178 150 +3 S&B 113 120 Ceramic 82 proppants 73 -27 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 Energy Solutions Filtration & Ceramic High Resistance Group & Specialties Performance Materials Minerals Additives F
Slide 9: Ongoing R&D and innovation efforts
Ongoing R&D and innovation efforts Examples of new products (M€) Revenue from new products Lighter auto parts Talc solutions for stronger and lighter plastic parts 490 as a substitute for steel parts 449 Formulations for investment casting 470 333 361 + 29% New energies 250 295 Graphite for Li-ion b
Slide 10: Capacity investments
Capacity investments Development capital expenditure in 2015: 78 M€ (82 M€ in 2014) Talc production capacity increase for polymers for the automotive industry First production line (Timmins, Canada) for new generation abrasives New talc refining (Villach, Austria) process for the automotive industry
Slide 11: New developments in external growth
New developments in external growth S&B : integration in line with plan Other recent acquisitions Operational integration completed Solvay’s European precipitated calcium Synergies (costs and development) on track carbonates division (PCC) with roadmap 4 production sites for thin and ultra-thin solu
Slide 12: Energy Solutions & Specialties (31% of 2015 revenue)
Energy Solutions & Specialties (31% of 2015 revenue) Revenue (M€) 1,279 Revenue: - 6.6 % (LFL); stable excluding ceramic proppants 1,248 1,253 & COI (%) 12.2% Carbonates excl. 11.7% proppants Good momentum in specialty applications 10.3% 9.6% First contribution from the precipitated calcium carbonat
Slide 13: Filtration & Performance Additives (26% of 2015 revenue)
Filtration & Performance Additives (26% of 2015 revenue) 1 081 Revenue (M€) & COI (%) S&B Revenue growth: + 2.2% (LFL) 635 658 733 Positive impact on growth from new products 17.2% 16.5% 15.9% Performance Minerals 2013 2014 2015 Sustained demand in the automotive industry Operating margin Minerals f
Slide 14: Ceramic Materials (28% of 2015 revenue)
Ceramic Materials (28% of 2015 revenue) Revenue (M€) LFL revenue: - 4.2% (LFL) & COI (%) 1 204 1 157 1 172 Reported: + 1.3% 18.2% 18.2% 17.9% Ceramics Positive trend sustained in traditional end-markets Expansion in new segments 2013 2014 2015 18,2% 18,2% 17,9% Operating margin Revenue Roofing by di
Slide 15: High Resistance Minerals (15% of 2015 revenue)
High Resistance Minerals (15% of 2015 revenue) Revenue (M€) & COI (%) 654 642 629 Revenue: - 8.0% (LFL), - 1.9% (reported) 13.0% 10,7% 11,3% Fused Minerals Resilient demand in Europe 2013 2014 2015 Industrial activity down in China 13,1%and Brazil Operating margin 10,7% 11,3% Revenue by division Ref
Slide 16: Financials
February 12, 2016 2015 Results Financials February 12, 2016 I 2015 results 16
Slide 17: Net income from current operations up + 8.0%
Net income from current operations up + 8.0% M€ 2014 2015 Variation Current operating income(1) 494.6 538.1 + 8.8% Current financial expense (45.1) (55.5) Average net financial debt over the period 922.3 1,466.9 + 545 M€ Average cost of net financial debt 4.4% 3.3% - 1.1 point Current income tax (13
Slide 18: Net income
Net income M€ 2014 2015 Variation Net income from current operations, 316.3 341.5 + 8.0% Group’s share(1)(2) Other income and expenses, net (44.7) (273.1) Of which restructuring and acquisition costs (44.7) (64.1) Of which non-cash impairment charge - (209.0) Net income, Group share 271.6 68.4 Non c
Slide 19: Strong generation of current free operating cash flow: 343 M€
Strong generation of current free operating cash flow: 343 M€ (+ 98M€ vs 2014) M€ 2014 2015 Revenue 3,688.2 4,086.7 EBITDA 673.8 745.4 Change in operating WCR (48.9) 21.7 Paid capital expenditure (241.5) (271.6) Current notional income tax (144.6) (156.7) Other 5.3 3.6 Current free operating cash fl
Slide 20: Sound financial structure
Sound financial structure (M€) Net debt as at 31/12/2015 Current free cash flow(3) Dividends 133 Financial resources: 2,9 Bn€ as of 12/31/2015 Share buyback(1) 74 338 of which 1 Bn€ available non-cash resources Acquisitions, net(2) 642 Average maturity: 4.6 years, Others, net no repayment before 201
Slide 21: Proposed dividend: 1.75€ per share
Proposed dividend: 1.75€ per share (€ per share) Evolution of dividend per share and pay-out ratio 1.75 1.65 1.60 1.55 1.50 38.8% 39.7% 39.8% 40.6% 37.2% 2011 2012 2013 2014 2015 Dividend per share to be paid in year+1 Net income from current operations pay-out ratio February 12, 2016 I 2015 results
Slide 22: Outlook
February 12, 2016 2015 results Outlook February 12, 2016 I 2015 results 22
Slide 23: 2016 Outlook
2016 Outlook Uncertain macro-economic environment Strong fundamentals Innovation and new products to continue to drive momentum Efficient cost-cutting programs Priority to cash-generation Additional strengths Positive impact from full-year integration and ramp up of S&B synergies Contribution of oth
Slide 24: Appendices
February 12, 2016 Appendices February 12, 2016 I 2015 results 24
Slide 25: Contrasting market trends in 2015
Contrasting market trends in 2015 Western Europe Weak growth in Europe: Current consumption up 1,796 M€ Moderate and uneven recovery in construction 44% of 2015 rev. Slight pickup in manufacturing industry, driven by the auto (45% in 2014) industry North America Dynamic North American markets: Susta
Slide 26: Market indicators for construction, printing & writing paper
Market indicators for construction, printing & writing paper CA 2014 proforma S&B Renovation New housing 13% 13% Steel 12% Automotive 10% 7% Magazines 5% Printing & writing paper (in millions of tons) Commercial 20000 2% printing 18000 8% Business paper 16000 7% 14000 4% Energy 3% 4% 12000 12% Indus
Slide 27: Indicators for steel production and passenger car registrations
Indicators for steel production and passenger car registrations CA 2014 proforma S&B Renovation New housing 13% 13% Steel 12% Automotive 10% 7% Magazines 5% Commercial 2% printing 8% Business paper 7% 4% Energy 3% 4% 12% Industrial equipment Consumer goods Packaging Other Food & Beverages February 1
Slide 28: Industrial production indicator: industrial equipment
Industrial production indicator: industrial equipment CA 2014 proforma S&B Renovation New housing 13% 13% Steel 12% Automotive 10% 7% Magazines 5% Commercial 2% printing 8% Business paper 7% 4% Energy 3% 4% 12% Industrial equipment Consumer goods Packaging Other Food & Beverages February 12, 2016 I
Slide 29: Contribution from price-mix effects and variable costs on current operating income
Contribution from price-mix effects and variable costs on current operating income Price-mix effect (M€) on revenue (%) -20 2015 35 + 1.3% 2014 5 45 + 1.5% 2013 1 37 + 1.2% 2012 71 109 + 3.3% 2011 91 154 + 4.4% Increase (decrease) in variable costs Impact of price-mix on C.O.I. February 12, 2016 I 2
Slide 30: Revenue and Current Operating income by quarter
Revenue and Current Operating income by quarter Revenue (M€) Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Energy Solutions & Specialties 306.7 313.8 319.9 307.8 303.2 321.1 338.9 315.5 312.5 323.5 314.1 303.0 Filtration & Performance 155.7 166.7 159
Slide 31: Current operating income and operating margin by semester
Current operating income and operating margin by semester Current operating income (M€) H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015 Energy Solutions & Specialties 77.5 65.7 67.9 60.2 72.1 77.5 64.4 55.3 Filtration & Performance Additives 45.4 44.9 51.3 49.6 58.0 55.4 88.0 90.1 Ce
Slide 32: Current financial expense
Current financial expense M€ 2014 2015 Interest expense, net (40.2) (49.1) Unwinding of long-term provisions (3.1) (3.9) and change in other provisions Net interest expense on pensions (7.6) (11.0) Currency translation, other financial income 5.8 8.5 and expense and financial instruments Current fin
Slide 33: Changes in financial position
Changes in financial position (M€) 2014 2015 Current free cash flow 227.5 338.4 External growth (72.3) (950.5) Divestments 71.8 7.3 Cash flow from other revenue and expenses (15.0) (59.5) Rights issue (42.6) 227.0 Dividends (incl. share to minority shareholders of Group subsidiaries) (125.3) (132.6)
Slide 34: Financial flexibility strengthened
Financial flexibility strengthened Net debt breakdown Maturity profile (as of December 31, 2015) (as of December 31, 2015) Bonds 1.5 Md€: 5.5 years M€ 31/12/2015 Credit lines. 1.4 Md€: 3.8 years Private placement Bonds 1,484.0 400 Commercial paper 347.6 Other debt 80.0 Gross debt 1,911.6 28 620 Cash
Slide 35: Energy Solutions & Specialties
Energy Solutions & Specialties Carbonates (14% of Group revenue in 2015): 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 (13%): Unshaped refractory materials u
Slide 36: Filtration & Performance Additives
Filtration & Performance Additives Performance Minerals Additives for paints, plastics, polymers, rubbers, adhesives, sealants, pharma & personal care (mainly talc, mica and wollastonite), etc. Perlite based solutions used in building materials and horticulture (20% of Group revenue in 2015) Mineral
Slide 37: Ceramic Materials
Ceramic Materials Roofing (7% of Group revenue in 2015) Clay roof tiles in France Ceramics (9%) Raw materials and bodies for tableware, sanitary and floor tiles, quartz, technical ceramics Kaolin (12%) Kaolin for applications in the paper, paints, plastics, 2015 revenue by region ceramics and refrac
Slide 38: High Resistance Minerals
High Resistance Minerals Fused Minerals (9% of Group revenues in 2015) Fused alumina and bauxite for abrasives (cutting, grinding and polishing mills, sandpapers), zirconium for refractories, oxygen sensor Refractory Minerals (6%): Production of acidic refractory minerals including andalusite, chamo
Slide 39: Imerys contact details
Imerys 154 rue de l’Université 75007 PARIS + 33 (0) 1 49 55 60 01 www.imerys.com Contact Analystes / Investisseurs Vincent GOULEY + 33 (0) 1 49 55 64 69 [email protected] 39