Imerys Sa · EURONEXT:NK
Imerys Sa — Q1 2020 Earnings Presentation
23 slides from Imerys Sa's earnings presentation, Apr 29, 2020
Slide 1: First Quarter 2020 Results
First Quarter 2020 Results April 29th, 2020 Alessandro Dazza - Chief Executive Officer Olivier Pirotte - Chief Financial Officer
Slide 2: Disclaimer
Disclaimer More comprehensive information about Imerys may be obtained on its website (www.imerys.com), under Regulated Information, including its Universal Registration Document filed under No. D.20-0165 March 24, 2020 with Autorité des Marchés Financiers. Imerys draws the attention of investors to
Slide 3: Agenda
Agenda 1 Covid-19 Update 4 2 Results 9 3 Outlook 18 4 Appendix 20 3 April 29th, 2020 | First Quarter 2020 Results
Slide 4: Covid-19 Update
Agenda 1 Covid-19 Update 4 2 Results 9 3 Outlook 18 4 Appendix 20 4 April 29th, 2020 | First Quarter 2020 Results
Slide 5: Swift response to Covid-19
Swift response to Covid-19 EMPLOYEES All necessary measures in place ● Implementation of measures to ensure health & safety of employees ● Crisis management team in place (Covid-19 protocol, Personal Protective Equipments) ● Strict monitoring process under the supervision of the Executive Committee
Slide 6: Covid-19 impact on operations to date
Covid-19 impact on operations to date EMEA Americas APAC (48% of revenue, 110 plants) (29% of revenue, 66 plants) (23% of revenue, 48 plants) Covid-19 first ● Mid March ● April ● January impact ● 14 plants closed and 28 plants partially ● 2 plants closed and 7 ● 6 plants closed and 11 plants Situati
Slide 7: Action plan to limit impact on results and cash flow
Action plan to limit impact on results and cash flow ACTION PLAN FIXED COSTS CAPEX WCR ● Current operating income to ● Reduction of capex to max. ● Reduction of working capital benefit from savings on fixed €250 million in 2020, requirement consistent with costs and overheads in 2020 significantly be
Slide 8: Strong liquidity and sound balance sheet
Strong liquidity and sound balance sheet Cash (€m) Credit Facilities (€m) Bonds (€m) ca. €800 m as of March 31st, 2020 2 years average maturity 5 years average maturity ● Strong liquidity position at €1.8 billion ● €224 m bond repayment in 2020 fully covered ● Gearing ratio at 53% as of December 31,
Slide 9: Results
Agenda 1 Covid-19 Update 4 2 Results 9 3 Outlook 18 4 Appendix 20 9 April 29th, 2020 | First Quarter 2020 Results
Slide 10: Q1 2020 Highlights
Q1 2020 Highlights Current operating income Revenue Current EBITDA (COI) €1,029m (-8.5%) €165m (-11.5%(1)) €83m (- 24.7%) Organic growth: -7.5% Current EBITDA margin: 16.0% COI margin: 8.0% ● Performance affected by Covid-19 pandemic, with -3.3% impact on revenue ● Soft iron & steel and automotive m
Slide 11: Sales volumes decline amid Covid-19 pandemic outbreak
Sales volumes decline amid Covid-19 pandemic outbreak Quarterly volumes evolution (vs prior year) Revenue by end market Covid-19 exposure Moderate Low Moderate -5.2% High -9.0% Covid-19 Moderate -3.3% estimated High impact Moderate ● Light vehicle production: ● Paper markets: -24% in Q1 2020 vs. Q1
Slide 12: Positive price-mix maintained
Positive price - mix maintained Contribution of price-mix and evolution of variable costs (€m, vs prior year) Price-mix impact on revenue +1.7% +1.0% 19 13 9 (2) Price-mix impact on current Evolution of variable costs operating income 12 April 29th, 2020 | First Quarter 2020 Results
Slide 13: Decline in volumes due to soft markets and impact of Covid-19
Decline in volumes due to soft markets and impact of Covid-19 (€m) Organic change: -7.5 % -1.5% -0.5% +1.1% -8.5% +1.0% 1,124 -8.5% (17) 1,107 (6) 12 (96) reported 11 1,029 Deterioration 1.5 months of of automotive and Disposal Positive effect deconsolidation of Particularly USD iron & steel North A
Slide 14: Current EBITDA impacted by decline in volumes
Current EBITDA impacted by decline in volumes (€m, post IFRS 16) -2.1% 2 2 3 32 1 reported 168 (3) 165 (48) (0) 165 9 2 14 Positive Strong Drop in volumes contribution of the Deconsolidation of price-mix and with approx. 50% Connect & Shape North American decreasing contribution program talc subsidi
Slide 15: Performance Minerals: APAC first impacted by Covid-19
Performance Minerals: APAC first impacted by Covid-19 (€m) Q1 2019 Q1 2019 Q1 2020 Like-for-like Reported change Reported restated from change(1) / vs. Kaolin (3) Q1 2019 Q1 2019 restated Revenue: Americas 282 261 251 +0.6% -3.9% (2) Revenue: Europe, Middle East, Africa (EMEA) 259 291 273 -7.7% -6.0%
Slide 16: High Temperature Materials & Solutions: iron & steel and industrial markets decline
High Temperature Materials & Solutions: iron & steel and industrial markets decline (€m) Q1 2019 Q1 2020 Like-for-like Reported change change(1) / vs. Q1 2019 Q1 2019 Revenue: High Temperature Solutions 201 164 -14.5% -18.7% Revenue: Refractory, Abrasives, Construction 319 297 -8.0% -7.0% Eliminatio
Slide 17: Net income
Net income (€m) Q1 2019 Q1 2020 Change Post IFRS 16 Post IFRS 16 Current EBITDA 168.3 (1) 164.8 -2.1% (2) Of which one-off costs (18.0) - - Current operating income 109.6 82.6 -24.7% Current financial expenses (2.4) (13.0) n.a. Of which reimbursement of the yen +17.0 - - denominated private placemen
Slide 18: Outlook
Agenda 1 Covid-19 Update 4 2 Results 9 3 Outlook 18 4 Appendix 20 18 April 29th, 2020 | First Quarter 2020 Results
Slide 19: Outlook 2020
Outlook 2020 ● Challenging market conditions to prevail, in particular in the second quarter ● Proven resilience thanks to a diversified geographical footprint and a portfolio of specialty minerals ● Comprehensive action plan launched to ○ Limit the adverse impact of volume shortfalls on the Group’s
Slide 20: Appendix
Agenda 1 Covid-19 Update 4 2 Results 9 3 Outlook 18 4 Appendix 20 20 April 29th, 2020 | First Quarter 2020 Results
Slide 21: Current operating income
Current operating income (€m) 2 3 110 (48) -24.7% (2) 108 -78 reported 8 83 9 2 (1) 9.8% 9.8% Operating margin 8.0% Q1 2019 Current 2019 COI after Perimeter Currencies Volumes Price-mix Variable Fixed costs Change Q1 2020 Operating deconsolidation of costs and in inventories COI Income NA talc overh
Slide 22: Performance Minerals: restated revenue split by business areas
Performance Minerals: restated revenue split by business areas (€m) Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Americas 261 253 253 240 1,007 251 EMEA 291 289 270 260 1,110 273 APAC 123 123 117 117 480 111 Eliminations (51) (43) (44) (42) (181) (47) Performance Minerals 623 621 597 575 2,415 589 Q
Slide 23: Thank you for your attention
Thank you for your attention Next events May 4, 2020 Annual General Meeting July 27, 2020 H1 2020 Results November 2, 2020 Results 9M 2020 For more information: www.imerys.com Or on social media : @imerys www.linkedin.com/company/imerys/ www.facebook.com/imerysgroup/ 23 April 29th, 2020 | First Quar