Results to September 30, 2012

Transcription

1 Conference call November 5, 2012, 6:15pm Gilles MICHEL Chairman & Chief Executive Officer Michel DELVILLE Chief Financial Officer 1 November 5, 2012 I

2 Disclaimer More comprehensive information about Imerys may be obtained on its 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 its 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. 2 November 5, 2012 I

3 Conference call November 5, :15pm Results for the first nine months of 2012 Recent developments Outlook 3 November 5, 5, 2012 II Results to to September 30, 2012

4 Improved results for the 1 st nine months of 2012 Confirmed greater geographic contrasts in 3 rd quarter Slow down in industrial activity and construction in Europe, with Northern countries less affected Firm demand in North America and emerging countries Revenue: 2,970 M, up + 8.0% vs. 9M 2011 (- 1.9% on comparable basis*) Lower volumes: - 5.5% (- 5.2% in H1 2012) Favorable exchange rate effect, particularly in Q Contribution of Talc activity higher than forecast Current operating income: + 1.8% vs. 9M 2011 to 389 M Operating margin maintained at 13.1% despite decrease in volumes Net income from current operations up + 3.4% vs. 9M 2011 to 246 M Stable financial structure, continuation of development plans (Capex, R&D) * At comparable Group structure and exchange rates 4 November 5, 2012 I

5 Revenue up + 8% ( millions) 2, ( + 6.7%) ( + 3.2%) ( - 5.5%) (+ 3.6%) + 8.0% on current basis 2, % at comparable structure and exchange rates 9M rev Structure (net) Successful integration of the Luzenac Group s activities, consolidation of Itatex (Brazil) Favorable exchange rate effect, particularly in Q3 2012: depreciation of euro (vs. US dollar US, in particular 1 = US$ for 9M 12 vs US$ 9M11, i.e. - 9%) Lower volumes against a high basis of comparison Good contribution of product price/mix Exchange rates Volumes Price/Mix 9M rev November 5, 2012 I

6 Quarterly change in consolidated revenue ( millions) Q vs. Q M Comparable structure , Q vs. Q M Comparable structure 883 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Revenue 9M 2011: 2,750 M 9M 2012: 2,970 M Group activity in Q slightly lower than in Q2 Continuation of trends already observed, but with downturn in Monolithic Refractories in Q Seasonal variation effect 53% of revenue generated outside Europe 6 November 5, 2012 I

7 Operating margin at 13.1% ( millions) % on current basis % Operating margin 13.1% COI 9M 2011 Structure (net) Exchange rates Volume Price/Mix Variable costs Product price/mix offsetting rise in variable costs (particularly raw materials, some energy sources, freight) Fixed costs & general expenses reduction in Q Q operating margin: 12.5% Fixed costs & general expenses Other COI 9M 2012 (including changes in inventory ) 7 November 5, 2012 I

8 Industrial output Manufacturing indexes Europe European industrial output (as at end August 2012) (base 100: 2007; source: OECD) USA American industrial output (as at end September 2012) (base 100: 2007; source: US Federal Reserve) China Chinese industrial output (as at end August 2012) (base 100: 2007 source: National Bureau of Statistics) Steel production in Europe, North America and China K metric tons Growth in steel production (9M 12 / 9M 11) European Union (27): - 4.6% North America: + 3.9% China: + 1.7% World: + 0.6% Source: IISI European Union (27) North America China 8 November 5, 2012 I

9 Other indicators: Paper and Construction MT 20,0 18,0 16,0 14,0 12,0 10,0 8,0 Quarterly production of printing and writing paper Production of printing and writing paper (9M 12 / 9M 11) Mature countries: - 4.3% Emerging countries: + 4.8% World: - 0.3% Source: RISI, Imerys estimates Mature countries Emerging countries Single-family housing starts in France Housing starts in the USA annual trend (12 rolling months) % change in past 12 months (as of end September 2012) - 16 % 9M 2012 vs. 9M K units , % Source: Ministry of Ecology, Sustainable Development and Energy and Imerys estimates, data for mainland France Source: Census bureau 9 November 5, 2012 I

10 Minerals for Ceramics, Refractories, Abrasives & Foundry (30% of consolidated revenue) ( millions) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Revenue on comp. basis 9M 11 9M 12 Revenue 9M 12 / 9M 11: + 3.8% Favorable effects of exchange rates for M and Group structure (1) for M - 2.4% on comparable basis (2) vs. 9M 11 against a high basis of comparison (sharp upturn in activity in Q2 2011) Mostly exposed to European markets Wide contrasts by geography and sector Clear downturn in demand in European refractory industry Dynamic domestic demand in USA Healthy trend in emerging markets Resilient traditional ceramics sector Firm business in some specialty segments (technical ceramics, mobile energy, etc.) Proppants production and sales now in line with plan 1. Talc sales for ceramics markets integrated into business group since January 1, At comparable structure and exchange rates 10 November 5, 2012 I

11 Performance & Filtration Minerals (23% of consolidated revenue) ( millions) Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q on comp. basis 9M 11 9M 12 9M12 vs. 9M11 revenue: % M structure effect: contribution of Luzenac Group s Performance Minerals activities Positive exchange rate effect ( M) + 3.7% on comparable basis (1) High exposure to US markets Contrasting demand by geography and sector Firm activity overall in North America (construction, consumer durables) Resilience in Europe despite downturn in industrial production and construction Sound markets overall in fast-moving consumer goods Revenue Very good performance of Talc 1. At comparable Group structure and exchange rates 11 November 5, 2012 I

12 Pigments for Paper & Packaging (22% of consolidated revenue) ( millions) on comp. basis 9M12 / 9M11 revenue: + 6.6% M structure effect (1) M exchange rate effect - 3.3% on comparable basis (2) Mostly European and US exposure Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 9M 11 9M 12 Continued trends Stable global paper production Dynamic emerging markets Downturn in end demand in mature countries intensified by the wave of rationalizations by papermakers in North America and Europe Revenue 1. Talc sales for paper markets integrated into the business group since January 1, At comparable structure and exchange rates 12 November 5, 2012 I

13 Materials & Monolithics (25% of consolidated revenue) ( millions) M12 / 9M11 revenue: - 4.6% M exchange rate effect 750 on comp. basis - 5.1% on comparable basis (1) against a high basis of comparison in first 9 months of Monolithic Refractories High impact of weaker European steelmaking demand Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 9M 11 9M 12 Building Materials Slump in activity as result of ongoing decrease in single-family housing sales Resilient renovation segment Revenue Fixed costs & general expenses reduction program launched in both activities 1. At comparable structure and exchange rates 13 November 5, 2012 I

14 Current financial expense ( millions) 9M M 2011 Net interest expense (44.0) (43.2) Unwinding of long-term provisions and change in other provisions (2.8) (2.4) Financial expense with respect to benefit plans Currency translation, other financial revenue & expenses and financial instruments 0.8 (0.4) Current financial expense (45.3) (45.7) Stable current financial expense Sound financial structure maintained (net financial debt around 1 billion) 14 November 5, 2012 I

15 Increase in net income from current operations ( millions) 9M M 2011 Change Current operating income (1) % Current financial expense (45.3) (45.7) Current income tax (95.1) (95.8) Net income from current operations, Group share (2)(3) % Net income from current operations per share, Group share (4) % Other revenue and expenses, net (6.1) (7.4) Net income, Group share % Current income tax: 27.7% (vs. 28.5% 9M 2011) 1. Including share in income (loss) of affiliates 2. Net of minority interests 3. Net income before other operating revenue and expenses, net 4. Weighted average number of outstanding shares: 75,148,233 in first 9 months of 2012 vs. 75,328,051 in first 9 months of November 5, 2012 I

16 Conference call November 5, :15pm Results for the first nine months of 2012 Recent developments Outlook 16 November 5, 5, 2012 II Results to to September 30, 2012

17 Internal and external developments Broadening of mineral assets to reinforce specialties products offering Agreement signed to acquire Goonvean s kaolin activities (Cornwall, UK) 2011 revenue 18 M Very high-purity kaolin deposit for specialties in performance minerals and ceramics Brazil (Pará State): Bauxite deposit acquired from Vale Essential mineral for a number of key refractory and abrasive applications Continuation of capital projects USA: Celite Cynergy TM production line (filtration/stabilization of edible liquids) Malaysia: New FilmLink TM production line (strength and porosity of baby hygiene products) Belgium: Carbon for Lithium-ion batteries production capacity to be doubled Brazil: Construction of lime production plant launched Bahrain: Launch of a fused alumina plant under joint venture 17 November 5, 2012 I

18 Conference call November 5, :15pm Results for the first nine months of 2012 Recent developments Outlook 18 November 5, 5, 2012 II Results to to September 30, 2012

19 Outlook Objective confirmed: maintaining a net income from current operations in 2012 at least at a level comparable to the previous year based on the following items: Results achieved for first 9 months of 2012 (net income from current operations + 3.4% vs. 9M 2011) Significant slowdown confirmed in Europe, more specifically: continued slump in intermediate industries downturn in construction (particularly in France) Current activity levels maintained in United States and emerging countries Fixed cost and general expenses reduction measures reinforced, cash management Continuation of current macroeconomic trends in the short term Continuation of projects with growth potential (Capex, R&D) 19 November 5, 2012 I

20 Conference call November 5, :15pm Appendix 20 November 5, 5, 2012 II Results to to September 30, 2012

21 Geographic trends ( millions) 2, % 2, % + 5% Japan / Australia Emerging countries % of consolidated revenue as on 09/30/2012 5% 27% % 636 USA / Canada 21% + 5% 1,323 1,385 Western Europe of which France 47% 16% 9M M % of sales achieved outside Europe (47% in 2008) Exposure still limited in Southern Europe (Portugal, Italy, Greece, Spain: < 7% of consolidated revenue) Impact of consolidation of Luzenac Group in Europe and North America 21 November 5, 2012 I

22 Conference call November 5, 2012, 6:15pm Gilles MICHEL Chairman & Chief Executive Officer Michel DELVILLE Chief Financial Officer 22 November 5, 2012 I