IMERYS. Group presentation

Transcription

1 IMERYS Group presentation 1

2 Group Table presentation of contents Imerys: the world leader of mineral-based specialty products A profitable and solid business model Development strategy: accelerating growth by enlarging our business footprint 2

3 Disclaimer More comprehensive information about Imerys is available on the Company s website ( under Regulated Information, including its Registration Document filed under No. D on March 22, 2012 with Autorité des marchés financiers. Imerys draws the attention of investors to the Risk factors set forth in section 4 of the Registration Document. This document contains projections and other forward-looking statements. Investors are cautioned that such projections and forward-looking statements are subject to various risks and uncertainties (many of which are difficult to predict and generally beyond the control of Imerys) that could cause actual results and developments to differ materially from those expressed or implied. Photo credits: Imerys photo library, RR, X. 3

4 IMERYS 2012 Key figures Revenue 3,885 M Operating margin 12.6% ROCE 13.1% 16,026 employees in 48 countries More than 250 industrial sites 8 R&D centers and 20 regional laboratories Listed on NYSE Euronext Paris Market capitalization: 3.7Bn (February 2013) 57% of capital held by GBL Indexes: SBF 120, DJ Eurostoxx, FTSE4Good 4

5 Imerys is the world leader of mineral-based specialty products 1 A WIDE RANGE OF HIGH-PERFORMANCE SPECIALITY PRODUCTS Mineral component Functional additive Finished product Process enabler 4 ALL OVER THE GLOBE. 2 IN THOUSANDS OF APPLICATIONS 3 FOR DIVERSIFIED END-MARKETS 5

6 From functional properties to mineral-based specialty products Many well known products exist as a result of properties brought by Imerys specialties Process: Beneficiate & Transform Minerals 6

7 Our products provide high-performance and key functionalities FUNCTIONAL ADDITIVES 45% Ingredient added to our customers product composition so as to enhance its properties, e.g.: MINERAL COMPONENTS 25% Important constituent of a mineral formula of our customers products, e.g.: <2% each Wide range of applications 20% Kaolin, mica, talc, feldspar for paints Clay, kaolin, feldspar for sanitaryware & tableware 0 OPACITY, MATTING EFFECT WHITENESS, STRENGTH 3-5% each 5-10% each FINISHED PRODUCTS 10% Use as such and not further transformed by our customers, e.g.: Clay bricks and tiles for housing ENERGY EFFICIENCY, DURABILITY PROCESS ENABLERS 20% Product used in the processes of our customers but not present in the finished product, e.g.: Monolithic refractories for industrial equipments HIGH-TEMPERATURE, HIGH WEAR RESISTANCE Paper Tiles Iron & Steel Filtration Plastics and polymers Sanitaryware Performance minerals specialties Cement Tableware Other Mobile Energy Automotive Pharma, health & beauty Kiln Furniture Carbon additives Aggregates Other fine ceramics Slates Hot metal forming Insulation Energy Refractory Paints & coating Abrasives Thermal Floor and wall tiles Bricks Board and Packaging Films & Packaging Foundry Rubber Adhesives & Caulks & Sealants Electrical / electronics Technical ceramics Glass / fiber glass Chemical / petrochemicals Photovoltaic Agriculture / horticulture Building & construction Metal alloys Silanes & Silicones Oilfield 7

8 Diversity of applications No end-market > 15% of sales* Good balance between different economic cycles <2% of sales each 2-5% of sales each 12-15% of sales each More cyclical Investment 22% Consumption 40% Durable goods 38% Less cyclical 5-8% of sales each * Imerys estimates: 2010 sales proforma for Talc acquisition 8

9 Presence in 48 countries with more than 250 industrial facilities 4 Business groups close to their markets Minerals for Ceramics, Refractories, Abrasives & Foundry Minerals for Ceramics Minerals for Refractories and Oilfieds Fused Minerals Graphite & Carbon Performance Minerals & Filtration Performance Minerals Minerals for Filtration Pigments for Paper & Packaging Pigments for Paper & Packaging Materials & Monolithics Building Materials Refractory Solutions 9

10 Global presence Consolidated revenue* by geographic area Number of employees by geographic area * 2012 Revenue by destination Emerging countries 27% Japan / Australia 5% 1 % 2012 revenues 3,885 M 40 % 16,026 employees as of December 31, % Western Europe 46% 17 % North America 22% 10

11 Group Table presentation of contents Imerys: the world leader of mineral-based specialty products A profitable and solid business model Development strategy: accelerating growth by enlarging our business footprint 11

12 Imerys positioned for high value Specialty products and services Products specified and engineered for value (not commodities) Important service dimension ( logistics and supply chain, integration into customer manufacturing process, reclaim of used products, etc.) Prices not subject to external markets evolutions, but negotiated bilaterally Sustained use Performance, functionalities essential to customer applications Cost to switch typically significant (qualification, process adjustments, etc.) Share of total customer cost typically low (< 4% in paper, < 1% in beer, < 2% in alkaline batteries) Strong commercial positions #1 or #2 on most markets Very diverse competitive environment across businesses without any dominant competitor 12

13 Leadership positions in all business groups Minerals for Ceramics, Refractories, Abrasives & Foundry (30% of sales*) Performance & Filtration Minerals (23% of sales*) Market Positions World #1 in raw materials and ceramic solutions for sanitaryware World #1 in kaolin for glazes World #1 in minerals with high alumino-silicate content World #1 in fused silica World #1 in fused minerals for abrasives and in fused zirconia World #1 in graphite for alkaline batteries and conductive additives for Li-ion batteries World #1 in diatomite and perlite for filtration World #1 in talc for plastics, paints, paper, ceramics, health, etc. World #1 in minerals for breathable polymer films World #1 in mica for engineered plastics and high performance coatings Main Competitors AKW, Sibelco, Rio Tinto, Almatis, Saint-Gobain, Washington Mills, Nacional de Grafite BASF, Huber, Sibelco, Omya, Eagle Picher, CECA, S&B, Grefco, Mondo Pigments for Paper & Packaging (22% of sales*) World #1 in kaolin for paper World #2 in ground calcium carbonate (GCC) for paper BASF, KaMin, AKW, Thiele, Omya, SMI Materials & Monolithics (25% of sales*) French #1 in clay roof tiles World #1 in alumino-silicate monolithic refractories World #1 in kiln furniture for roof tiles Terreal, Monnier, Wienerberger, Vesuvius, RHI * 2012 consolidated sales 13

14 Our unique range of mineral assets is leveraged as a source of competitive advantage Over 20 years of high-quality mineral reserves About 30 minerals totaling 600 Mt of reserves 121 mining sites Strong in-house geological and mining expertise 140 geologists Upward integration to the mine whenever necessary to sustain cost / quality / availability 2/3 of Imerys sales generated from mine to market 14

15 Our core competitive advantages include know-how, technology, industrial efficiency Unique process know-how Mechanical treatment (sorting, shaping, sieving, cycloning, elutriation, etc.) Thermal treatment (fusion, calcination, sintering, etc.) Formulation of proprietary recipes High-volume production (tiles) Operational excellence Group-wide Key Performance Indicators Three-year Sustainable Development Plan to make further progress across the Group (governance, human rights, environment, safety, communities, innovation, purchasing, human resources) 15

16 Sustainable development: implementation of triennal plan Further improvement in safety performance Workplace accident frequency rate divided by 2 in 4 years (employees and subcontractors) Deployment of Imerys Safety System Environment 90% of group facilities equipped with environmental management systems Energy efficiency and carbon emissions Improved performance in 2012, despite lower volumes Biodiversity: ongoing deployment of processes Human resources Group-wide diversity charter with initiatives across business groups Ethics and Governance Anti-fraud and corruption programs Anti-child labor programs Combined accident frequency rate* (employees/subcontractors) 3.09 * Number of lost time accidents x 1,000,000 / number of work hours Total energy consumption* (in thousand of Gigajoules) , ,180 35,654 35, % Energy productivity** (base 100 in 2009) * Net of electricity sold ** Production sites only 16

17 Sustainable development: implementation of triennal plan Further improvement in safety performance Workplace accident frequency rate divided by 2 in 4 years (employees and subcontractors) Deployment of Imerys Safety System Environment 90% of group facilities equipped with environmental management systems Energy efficiency and carbon emissions Improved performance in 2012, despite lower volumes Biodiversity: ongoing deployment of processes Human resources Group-wide diversity charter with initiatives across business groups Ethics and Governance Anti-fraud and corruption programs Anti-child labor programs Combined accident frequency rate* (employees/subcontractors) % * Number of lost time accidents x 1,000,000 / number of work hours Total energy consumption* (in thousand of Gigajoules) Energy productivity** (base 100 in 2009) * Net of electricity sold ** Production sites only 17

18 The organization is reactive and results-driven Decentralized organisation & empowered management Short command chain Business unit managers fully responsible for their P&L Lean structure SG&A: 12% of sales Limited, focused corporate functions: 130 FTE Management incentives driven by profitability at all levels 70% of bonuses related to economic targets (operating income, free cash flow, ROCE) 18

19 Expansion supported by active external growth strategy More than 1.8 Bn of investments and 73 acquisitions over 12 years Asset disposals: ca. 0,4 bn 396m 463m 5 94m 44m 49m 47m 35m 230m 138m 8m 59m 232m 49m Treibacher Schleifmittel: diversification into abrasives market Lafarge Refractories: diversification into monolithic refractories business ACE: investment into monolithic refractories in India World Minerals: diversification into filtration market Astron China: diversification into fused zirconia business Talc: major complement to white pigment portfolio Itatex : expansion of product offering for polymers, paints and rubber markets Goonvean : high purity kaolin for ceramics and performance products Note: Exchange rates as at date of transaction. Acquisitions made in several steps assumed to have taken place in full when we acquired control. 19

20 Group strengths Operating margin at 12.6% despite adverse change in activity mix in COI margin back to pre-crisis level with lower volumes than 2008 Stronger balance sheet as of Dec 31, 2012, historically low debt rations Net debt to EBITDA ratio at 1.3x vs. 2.7x in 2008 Gearing down to 47% from 101% in 2008 Financial flexibility to implement the development plan Higher exposure to emerging regions and to growth markets Business portfolio expanded with innovative products less than 5 years old Imerys is well positioned to grow further 20

21 Group Table presentation of contents Imerys: the world leader of mineral-based specialty products A profitable and solid business model Development strategy: accelerating growth by enlarging our business footprint 21

22 Three directions to enhance our potential for more profitable growth Imerys sales < Worldwide GDP Worldwide GDP Emerging countries 27% 2 Grow presence 1 Innovate and manage for cash Mature end-markets 55% Growth end-markets 25% 3 Enlarge business portfolio: innovate and invest Sources: Various economic databases and market studies Brokers reports 2010 /

23 Expanding our presence in emerging markets Group sales by geography 50 1,034 M Group development programs to grow in India, China and Brazil 675 M 20% 27% Focus resources on building a critical size in 6-7 countries, then launch Group-wide initiatives 174 M 6% Accelerate regional development in each business group Share of emerging markets in Group sales Sales in emerging markets 23

24 Capex and acquisitions to increase Group revenues in growth markets % 14 % 900 M 400 M PF 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% Main markets with growth potential above world GDP for Imerys applications * Automotive Packaging Energy Electronics / semi-conductors Environment Cosmetics and healthcare Agriculture Aerospace % of group revenues Revenues in growth markets * Sources : Various data bases, market studies and sell-side research 2010/

25 Boosting innovation to play a major role in expansion plan In 2012, approx. 250 M of sales generated from products not in our portfolio 5 years ago (+ 25% vs. 2011) Antiblocks Carbon for Li-Ion Graphite for Fuel Cells Silicone rubber fillers Latex gloves carbonate fillers Carbonate for Wood fibers composite New alumina abrasive: Alodur Rod Astrafil K, new filler for fiber replacement (Canada) Carbonate for non woven Natural DE for Laminate Cristal silica controlled Diatomite Barrisurf Carbon for conductive plastics Nano dimension minerals for UV coating Cynergy, a chilled proof filter aid Low temperature porcelaine body Honey comb structure for solar receiver Second Generation agglomerated abrasives New spray castable, quick dry, monolithic refractory Argical pro A crop protection natural product 25

26 Several major initiatives to tap growth markets Confirmation of growth potential: up 700 M of additional revenues to be generated by 2016, based on project portfolio and market outlook Project pipeline monitored on a quarterly basis Increase in number of projects effectively monitored More than 200 innovation projects Across all business groups Growth investments prioritized with IRR target > 15 % Example: new proppant facility in Georgia (USA) on stream since end 2012 Natural gas flows from fractures into well Proppants keeps fractures open 2012 R&D budget increased to 56 M Hydraulic Fracturing Shale Fracture Well Shale Fractures 26

27 Acquisitions have been the main driver behind the expansion of the Group s business portfolio Successful track-record Treibacher: entry into Abrasives applications, new competence in fusion World Minerals: entry into non-cyclical filtration business, new application competencies Lafarge Refractories: build-up from existing monolithic refractories business Plibrico Groupe Luzenac: a new mineral to strengthen current applications and increase penetration of polymers applications used in automotive industry Business portfolio expansion will continue mainly through acquisitions With stringent return criteria: target ROCE of 15% Growth potential of target a key decision factor 27

28 Imerys 154 rue de l Université F Paris + 33 (0)