Imerys Sa · EURONEXT:NK
Imerys Sa — Imerys Sa Ord — H1 2024 Earnings Presentation
27 slides from Imerys Sa's earnings presentation, Jul 30, 2024
Slide 1: 2024 First Semester Results
2024 First Semester Results July 30, 2024 Alessandro Dazza - Chief Executive Officer Sébastien Rouge - Chief Financial Officer April 30, 2024 | Imerys Q1 2024 Results
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.24-0183 on March 26, 2024 with Autorité des Marchés Financiers. Imerys draws the attention of investors
Slide 3: Imerys Highlights, Financial Results, Outlook
Imerys Financial Highlights Outlook Results 3 July 30, 2024 | Imerys H1 2024 Results
Slide 4: Imerys Highlights
Imerys Financial Highlights Outlook Results 4 July 30, 2024 | Imerys H1 2024 Results
Slide 5: First semester 2024 - Highlights
First semester 2024 - Highlights(1) Solid cash flow Revenue Adjusted EBITDA Strategic Roadmap generation €1,919m €384m €120m Sustainability ● Third quarter of sequential growth ● H1 2024 adjusted EBITDA at €384 ● Solid cash generation in H1 2024, ● Disclosure of Climate Transition Plan, leading to H
Slide 6: Sales recovery confirmed
Sales recovery confirmed Revenue in € million ● Robust Q2 2024 sales performance: ○ +7% vs Q1 2024 ○ +1% vs Q2 2023 ● Higher volumes: +2.7% in Q2 2024 vs Q2 last year ● Stabilizing price effect: -0.6% in Q2 2024 vs Q2 last year 6 July 30, 2024 | Imerys H1 2024 Results
Slide 7: Significant improvement in adjusted EBITDA margin
Significant improvement in adjusted EBITDA margin Adjusted EBITDA in € million and margin as a % of revenue ● H1 2024 adjusted EBITDA margin at 20% (+260 bps vs H1 2023) fuelled by: ○ Volume recovery ○ Positive price/cost balance ○ Cost savings (€70m, i.e. 3.9% costs) ○ Increase in contribution of jo
Slide 8: End-market trends in Q2 2024 (1/3)
End-market trends in Q2 2024 (1/3) Construction Short-term outlook improving for residential construction, thanks to lower Construction(1) inflation and interest rate cuts Q4-23 vs Q1-24 vs Q2-24 vs Q4-22 Q1-23 Q2-23 ● Europe: signs of recovery as interest rates are cut, impacting all Europe 0% -1% +
Slide 9: End-market trends in Q2 2024 (2/3)
End-market trends in Q2 2024 (2/3) Automotive Light vehicle production (1) Weakness expected to continue for the rest of the year Q4-23 vs Q1-24 vs Q2-24 vs ● Europe: stronger than expected drop and negative outlook for the Q4-22 Q1-23 Q2-23 rest of the year Europe +6% -7% -5% ● North America: US de
Slide 10: End-market trends in Q2 2024 (3/3)
End-market trends in Q2 2024 (3/3) Industrial production (1) Industry & Equipment Q4-23 vs Q1-24 vs Q2-24 vs ● Europe: industrial production starting to recover, driven by rising Q4-22 Q1-23 Q2-23 incomes and energy prices falling from previous highs Europe -2% -3% -1% ● Industrial activity in the U
Slide 11: Financial Results
Imerys Financial Highlights Outlook Results 11 July 30, 2024 | Imerys H1 2024 Results
Slide 12: Sales variances H1 2024
Sales variances H1 2024 (€m) -0.5% -1.1% -0.4% -1.2% -3.2% Reported 1,982 -7 1,919 -24 -10 -23 Organic variation: -1.6% 2023 H1 Perimeter Currencies Volumes Price 2024 H1 revenue revenue 985 -6 -8 +27 -5 992 Q2 -0.6% -0.8% +2.7% -0.6% +0.7% 12 July 30, 2024 | Imerys H1 2024 Results
Slide 13: Performance Minerals
Performance Minerals Like-for-like Consolidated amount Like-for-like Q2 2023 Q2 2024 H1 2023 H1 2024 change (€ millions) change 267 284 +7.1% Revenue Americas 533 543 +3.0% 361 375 +4.5% Revenue Europe, Middle East and Africa and Asia-Pacific 747 727 -1.7% -32 -38 - Eliminations -62 -71 - 597 620 +4.
Slide 14: Solutions for Refractory, Abrasives & Construction
Solutions for Refractory, Abrasives & Construction Like-for-like Consolidated amount Like-for-like Q2 2023 Q2 2024 H1 2023 H1 2024 change (€ millions) change 328 320 0.0% Revenue Refractory, Abrasives & Construction 647 620 -1.7% - - - Adjusted EBITDA 76 81 +6.6% (1) - - - Adjusted EBITDA margin 11.
Slide 15: Solutions for Energy Transition
Solutions for Energy Transition H1 2023 Solutions for Energy Transition H1 2024 Reported change Graphite & Carbon TQC (50%) SET (€ millions) Graphite & Carbon TQC (50%) SET SET 117 117 Revenue 102 102 - 29 29 Adjusted EBITDA 20 20 - 39 39 Share in net income from JVs 78 78 - 67 Adjusted EBITDA SET 9
Slide 16: Adjusted EBITDA at €384 million (+11% vs last year)
Adjusted EBITDA at €384 million (+11% vs last year) 384 (€m) +11.4% +40 +9 345 +57 188 +25 -4 -21 -9 -4 -29 17.4% Adjusted EBITDA margin 20.0% H1 2023 Perimeter Currencies Volumes Price Variable Fixed Share in net Change H1 2024 Adjusted costs costs and income of in inventories Adjusted EBITDA overh
Slide 17: Improved current profitability metrics
Improved current profitability metrics (€m) H1 2023 H1 2024 Change Adjusted EBITDA 345 384 +11.4% Current operating income 218 253 +15.9% Current financial expenses (26) (27) - Current income tax (52) (50) - Minority interests (1) (3) - Current net income from continuing operations, Group share 139 17
Slide 18: Strong cash flow generation in H1
Strong cash flow generation in H1 (€m) H1 2023 H1 2024 Adjusted EBITDA (including discontinued operations) 352 384 Increase (–)/decrease (+) in operating working capital 16 (15) Notional tax on current operating income (61) (56) Other adjustments (8) (30) Current operating cash flow (before capital ex
Slide 19: Sound financial structure
Sound financial structure Change in net financial debt (€m) Net Debt Net current Debt Other income Acquisition Dividends Assets held for Other Net Debt Dec. 31, 2023 free operating servicing and expenses net of disposals sale June 30, 2024 cash flow cost Covenant 1.7x Net financial debt to adjusted E
Slide 20: Outlook
Imerys Financial Highlights Outlook Results 20 July 30, 2024 | Imerys H1 2024 Results
Slide 21: Imerys end-markets exposure (based on 2023 revenue)
Imerys end-markets exposure (based on 2023 revenue) Before disposal of assets After disposal (*) serving the paper market ● Construction & infrastructure ● Consumers & healthcare ● Automotive & transportation ● Energy & electronics ● Industry & equipment *Certain board and packaging activities remai
Slide 22: Outlook
Outlook ● The Group expects to continue benefiting from a positive business momentum in H2 2024, supported by its well diversified geographical footprint, broad applications offering, and improved economic conditions. ● Assuming no material change in the current macroeconomic environment and a significa
Slide 23: Appendix
Imerys APPENDIX 23 July 30, 2024 | Imerys H1 2024 Results
Slide 24: Q2 Net income
Q2 Net income (€m) Q2 2023 Q2 2024 Change Revenue 985 992 +0.7% Adjusted EBITDA 173 197 +13.6% of which share of net income from JVs 23 28 - Current operating income 113 129 +14.4% Current financial expenses (14) (12) - Current income tax (27) (26) - Minority interests (1) (2) - Current net income fr
Slide 25: Strong liquidity position
Strong liquidity position Bond maturity profile (€m) Bilateral credit lines maturity profile (€m) Bonds Average maturity Bilateral credit lines Average maturity €2,200m 3.5 years €960m 3.2 years Average maturity Average maturity (€m) 31/12/20223 30/06/2024 High level of available resources : Bonds 2,2
Slide 26: Glossary
Glossary Alternative Performance Definitions and reconciliation to IFRS indicators Measures Growth at constant scope and • Calculated by stripping out the impact of currency fluctuations as well as acquisitions and disposals (scope effect). exchange rates (also called • Restatement of the currency effec
Slide 27: Thank you for your attention
Thank you for your attention Visit www.imerys.com for more information. Or connect with us: www.linkedin.com/company/imerys/ 27 July 30, 2024 | Imerys H1 2024 Results