Imerys Sa · EURONEXT:NK
Imerys Sa — H1 2016 Earnings Presentation
32 slides from Imerys Sa's earnings presentation, Jul 27, 2016
Slide 1: July 27, 2016 Conference call
July 27, 2016 Conference call Gilles MICHEL – Chairman & Chief Executive Officer Olivier PIROTTE – Chief Financial Officer 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.16-0153 on March 17. 2016 with Autorité des marchés financiers. Imerys draws the attention of investors to the “R
Slide 3: Business review
July 27, 2016 Conference call Business review First-Half 2016 Results Outlook 3
Slide 4: Results increase in first-half 2016
Results increase in first-half 2016 Revenue (€m) + 1.9% Revenue growth of + 1.9% 2,057 2,097 1,838 Integration of acquisitions completed in 2015 Organic growth: - 2.2%, amid markets declining at slower pace H1 14 H1 15 H1 16 Current operating income (€m) + 6.9% Current operating income up + 6.9% 248
Slide 5: Relative improvement in market conditions
Relative improvement in market conditions Quarterly organic growth Construction Sustained growth of individual and collective housing starts in the US 19% (+ 7.1% in H1 2016 (1)) and revenue(*) renovation Moderate and contrasted growth in Europe +0.1% Current Firm current consumption (food and bever
Slide 6: Energy Solutions & Specialties
Energy Solutions & Specialties (29 % of consolidated revenue in H1 2016) Revenue (€m) and operating margin H1 2016 revenue: - 3.0% on current basis, 624 636 617 - 4.8% organic growth vs. H1 2015 Graphite: strong demand for lithium-ion 11.5% 10.9% 10.1% batteries used in mobile energy Creation of a c
Slide 7: Filtration & Performance Additives
Filtration & Performance Additives (27 % of consolidated revenue as of H1 2016) Revenue (€m) and operating margin H1 2016 revenue: + 8.6% including S&B, stable 525 570 500 organic growth vs H1 2015 with tough S&B 325 376 377 comparison basis in Q2 18.4% 17.9% 16.8% Increasing sales of Performance Mi
Slide 8: Ceramic Materials
Ceramic Materials (30 % of consolidated revenue in H1 2016) Revenue (€m) and operating margin Revenue up + 7.1% on current basis, 582 592 635 + 0.2% organic growth 17.9% 18.0% 17.9% Ceramics: traditional markets holding up well Pursuing repositioning strategy; partnership agreement with Spanish grou
Slide 9: High Resistance Minerals
High Resistance Minerals (14% of consolidated revenue in H1 2016) Revenue (€m) and operating margin 329 330 Revenue: - 5.4% organic growth, 300 - 9.2% on current basis 12.5% 13.3% 11.1% Pursuing strategic developments in Fused H1 2014 H1 2015 H1 2016 Minerals Specialty products: Sol Gel for high per
Slide 10: Improvement in Current Operating Income
Improvement in Current Operating Income (€m) 293 114 274 105 107 88 64 67 41 40 Operating margin (%) 10.1 10.9 16.8 18.4 18.0 17.9 12.5 13.3 13.3 14.0 H1 15 H1 16 H1 15 H1 16 H1 15 H1 16 H1 15 H1 16 H1 15 H1 16 Energy Solutions Filtration Ceramic Materials High Resistance Minerals Group & Specialtie
Slide 11: First-Half 2016 Results
July 27, 2016 Conference call Business review First-Half 2016 Results Outlook 11
Slide 12: Revenue increase to €2,097m
Revenue increase to €2,097m (€m) + 112 (27) (46) (1.3 %) + 1.9% (2.2 %) 2,097 2,057 + 5.4 % H1 2015 Group structure Exchange rates Volumes and price mix H1 2016 Integration of acquisitions completed in 2015 Volumes down by - 3.0% vs. - 5.3% in H1 2015 Price mix effect holding up: + 0.8% ; developmen
Slide 13: Current Operating Income up + 6.9%
Current Operating Income up + 6.9% (€m) (6) + 6.9% 13 (10) 17 (23) 16 293 12 274 13.3 % Operating margin 14.0 % H1 2015 Group Foreign Volumes Price/mix Variable costs Fixed costs & Other (change H1 2016 structure (net) exchange overheads in inventories) + 70 bp improvement in operating margin to 14.
Slide 14: Net income from current operations up + 5.2%
Net income from current operations up + 5.2% €m H1 2015 H1 2016 Change Current operating income(1) 274.0 293.0 + 6.9% Current financial expense (23.5) (29.1) of which: Interest expense, net (26.7) (24.9) Average net financial debt for the period 1,379 1,556 Current income tax (74.1) (78.1) Current t
Slide 15: Solid cash flow generation in first-half 2016
Solid cash flow generation in first-half 2016 €m H1 2015 H1 2016 EBITDA 381.2 416.9 Change in operating WCR (38.3) (48.3) WCR as a % of revenue 23.1% 23.4% Paid capital expenditure (121.5) (116.7) Current notional tax (81.0) (86.8) Other 1.0 11.6 Current free operating cash flow(1) 141.4 176.7 Booke
Slide 16: Healthy financial situation maintained
Healthy financial situation maintained Change in net financial debt (€m) Current Operating Acquisitions, net(1) 0 21 Cash Flow(2) Other Share Buyback 62 (177) Dividends 139 Financial resources: 1,480 1,524 Total amount : €3.5bn (maturity: 5.1 years) Available resources excluding cash : €1.2bn Long-t
Slide 17: Outlook
July 27, 2016 Conference call Business review First-Half 2016 Results Outlook 17
Slide 18: 2016 Outlook
2016 Outlook Another year of progress Outlook: increase in net income from current operations for the full year 2016 comparable to that of the first half, assuming a constant environment Tight management of costs, cash and industrial footprint, an ongoing priority Execution of development strategy 1
Slide 19: Appendix
July 27, 2016 Conference call Appendix 19
Slide 20: Production capacity expansion
Production capacity expansion Talc production capacity increase for polymers for the New talc refining process automotive industry for the automotive industry (Timmins, Canada) First production line for (Ludlow, USA) new generation abrasives (Villach, Austria) Capacity increase in diatomite producti
Slide 21: Market indicators for construction, printing & writing paper
Market indicators for construction, printing & writing paper 2015 revenue Renovation New housing 13% 13% Steel 12% Automotive 10% Printing & writing paper (in millions of tons) 7% Commercial printing 25,0 5% 20,0 2% Publishing 6% Business paper 15,0 MT 6% 10,0 Energy 5% 5,0 Industrial equipment 4% 4
Slide 22: Indicators for steel production and passenger car registrations
Indicators for steel production and passenger car registrations 2015 revenue Renovation New housing 13% 13% Steel 12% Automotive 10% 7% Commercial printing 5% 2% Publishing 6% Business paper 6% Energy 5% Industrial equipment 4% 4% 13% Consumer goods Packaging Food & Beverages Others 22 July 27, 2016
Slide 23: Industrial production indicator: industrial equipment
Industrial production indicator: industrial equipment 2015 revenue - EU (28) Renovation New housing 13% 13% Steel 12% Automotive 10% 7% Commercial printing 5% 2% Publishing 6% Business paper 6% Energy 5% Industrial equipment 4% 4% 13% Consumer goods Packaging Food & Beverages Others 23 July 27, 2016
Slide 24: Revenue by region: H1 2016
Revenue by region: H1 2016 Others (Japan/ Australia) 5% Emerging countries 26% Western Europe 44% of which France 12% United States / Canada 25% 24 July 27, 2016 I First Half 2016 results
Slide 25: 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 Q1 2016 Q2 2016 Energy Solutions & 306.7 313.8 319.9 307.8 303.2 321.1 338.9 315.5 312.5 323.5 314.1 303.0 300.8 316.2 Specialties Filtration &
Slide 26: 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 H1 2016 Energy Solutions & Specialties 77.5 65.7 67.9 60.2 72.1 77.5 64.4 55.3 67.0 Filtration & Performance Additives 45.4 44.9 51.3 49.6 58.0 55.4
Slide 27: Energy Solutions & Specialties
Energy Solutions & Specialties Carbonates H1 2016 revenue by region Natural (GCC) and Precipitated (PCC) Calcium Carbonates used as filling or coating pigment for paper production and functional additives for paints, plastics etc.. 9% Monolithic Refractories Unshaped refractory materials used to pro
Slide 28: Filtration & Performance Additives
Filtration & Performance Additives Performance Minerals Additives for paints, plastics, polymers, H1 2016 revenue by region rubbers, adhesives, sealants, pharma & personal care (mainly talc, mica and wollastonite, etc.) Perlite based solutions used in building 3% 25% materials and horticulture 38% M
Slide 29: Ceramic Materials
Ceramic Materials Roofing H1 2016 revenue by region Clay roof tiles in France Ceramics 3% Raw materials and bodies for tableware, sanitary 19% and floor tiles, quartz, technical ceramics, kiln 60% furniture for tiles and ceramics industries 18% Kaolin Kaolin for applications in the paper, paints, pl
Slide 30: High Resistance Minerals
High Resistance Minerals Fused Minerals H1 2016 revenue by region Fused alumina and bauxite for abrasives (cutting, grinding and polishing mills, sandpapers), zirconium for refractories, oxygen sensor 5% 27% 43% Refractory Minerals Production of acidic refractory minerals including andalusite, chamo
Slide 31: Current financial expense
Current financial expense M€ H1 2015 H1 2016 Interest expense, net (26.7) (24.9) Unwinding of long-term provisions (1.9) (1.9) and change in other provisions Net interest expense on pensions (5.1) (4.4) Currency translation, other financial income 10.2 2.0 and expense and financial instruments Curre
Slide 32: Imerys
Imerys 154 rue de l’Université 75007 PARIS + 33 (0) 1 49 55 63 00 www.imerys.com Analysts and investors contact Vincent Gouley + 33 (0) 1 49 55 64 69 [email protected] 32