Imerys Sa · EURONEXT:NK
Imerys Sa — Imerys Sa Ord — FY2023 Earnings Presentation
31 slides from Imerys Sa's earnings presentation, Feb 22, 2024
Slide 1: 2023 Annual Results
2023 Annual Results February 22, 2024 Alessandro Dazza - Chief Executive Officer Sébastien Rouge - 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.22-0127 in March 22, 2023 with Autorité des Marchés Financiers. Imerys draws the attention of investors
Slide 3: Imerys Highlights, Financial Results, Outlook
Imerys Financial Highlights Outlook Results 3 February22, February 22,2024 2024| |Imerys Imerys2023 2023Annual AnnualResults Results
Slide 4: Imerys Highlights
Imerys Financial Highlights Outlook Results 4 February22, February 22,2024 2024| |Imerys Imerys2023 2023Annual AnnualResults Results
Slide 5: Full Year 2023 - Financial highlights
Full Year 2023 - Financial highlights(1) Current EBITDA Substantial cash flow Revenue Proposed dividend in line with guidance(2) generation €3,794m €633m €288m(3) €1.35 per share ● Revenue down 9% like-for-like ● Current EBITDA at €633 in line ● Substantial cash generation of ● Current net income fr
Slide 6: Resilient current EBITDA margin over the last 3 years
Resilient current EBITDA margin over the last 3 years ● Stable current EBITDA margin despite volume Revenue (€m) and current EBITDA margin (%) decline, reflecting the robustness of the business model ● Prices adjusted to reflect evolution of variable costs and other inflationary impacts Fixed costs and
Slide 7: Cost reduction actions delivering €126m, ie 3.3% of total costs in 2023
Cost reduction actions delivering €126m, ie 3.3% of total costs in 2023 Costs Evolution Key components -9.0% ● Our actions delivered €126 million of Inflation: +2.8% cost savings (3.3% of total costs) more Volume -4.7% than offsetting overall inflation (2.8%) FX : -2.2% ● Programs covered all areas of
Slide 8: Imerys end-markets
Imerys end-markets 8 February22, February 22,2024 2024| |Imerys Imerys2023 2023Annual AnnualResults Results
Slide 9: End-markets trends in Q4 2023 (1/3)
End-markets trends in Q4 2023 (1/3) Construction Construction(1) ● Infrastructure and non-residential trending upward Q2-23 Q3-23 Q4-23 vs ● Residential construction severely impacted by higher interest vs. Q2-22 vs. Q3-22 Q4-22 rates and credit tightening in Europe and America Europe +1% +1% +1% ●
Slide 10: End-markets trends in Q4 2023 (2/3)
End-markets trends in Q4 2023 (2/3) Automotive Light vehicle production (1) ● Quite a robust Q4 activity in all geographies in line with Q3 Q2-23 Q3-23 Q4-23 vs vs. Q2-22 vs. Q3-22 Q4-22 ● In Europe, backlog depleting, reflecting weakening consumers Europe +17% +4% +4% demand due to high prices and c
Slide 11: End-markets trends in Q4 2023 (3/3)
End-markets trends in Q4 2023 (3/3) Industrial production (1) ● Significant industrial downturn in Europe. A recovery is Industry & expected, though modest, in 2024, potentially benefiting from Equipment Q2-23 Q3-23 Q4-23 vs gradual easing of monetary policy vs. Q2-22 vs. Q3-22 Q4-22 Europe -1% -2% -2
Slide 12: 2024: A milestone year for lithium projects
2024: A milestone year for lithium projects EMILI project (France) Steps already achieved 2024 Next Steps ● 34kT per year production of ● Successive drilling campaigns ● “Public Debate” to start in Q2 and hydroxide lithium confirming attractiveness of the report released in Q3 deposit (size, grade, s
Slide 13: More than 50 new mineral solutions launched in 2023
More than 50 new mineral solutions launched in 2023 Natural Solutions for Solutions for Energy Transition Sustainable Construction Consumers goods ● New metakaolin grades enabling low carbon concrete ● European cordierite saggars for ● Diatomite and perlite filters aids to lithium-ion battery makers
Slide 14: 2023 Status of Group mid-term targets: well on track
2023 Status of Group mid-term targets: well on track EMPOWERING OUR PEOPLE GROWING WITH OUR CUSTOMERS CARING FOR OUR PLANET Safety & Human Business Sustainable Environmental Climate Health Capital Conduct Solutions Stewardship Change Safety Culture Group EcoVadis Environmental Water Reporting Scope
Slide 15: Accelerating decarbonisation by aligning with a 1.5°C trajectory
Accelerating decarbonisation by aligning with a 1.5°C trajectory Decarbonisation levers Trajectory aligned with 1.5°C* tCO2e - scope 1 & 2 ● Energy efficiency ● Fuel switching and biomass use ● Electrification -42% ● Power purchase agreements -24% tCO2e ● Process innovation * The Group new target align
Slide 16: Financial Results
Imerys Financial Highlights Outlook Results 16 February22, February 22,2024 2024| |Imerys Imerys2023 2023Annual AnnualResults Results
Slide 17: Impact of volume decline contained by positive pricing
Impact of volume decline contained by positive pricing (€m) -0.7% -1.9% -11.6% +2.6% -11.4% Reported 4,282 -483 3,794 +109 -31 -83 Organic variation: -9.0% 2022 Perimeter Currencies Volumes Price-mix 2023 revenue revenue Q4 1,024 0 -25 -61 -43 894 0% -2.4% -6.1% -4.4% -12.6% 17 February22, February
Slide 18: Performance Minerals
Performance Minerals Q4 2022 Q4 2023 Like for like (€m) 2022 2023 Like for like change vs. Revenue change vs. 2022 Q4 2022 286 246 -10.9% PM Americas 1,188 1,034 -9.9% 392 336 -11.5% PM EMEA & APAC 1,608 1,423 -9.1% (46) (24) - Eliminations & others (197) (116) - 633 559 -8.5% Total revenue 2,600 2,
Slide 19: Solutions for Refractory, Abrasives and Construction
Solutions for Refractory, Abrasives and Construction Q4 2022 Q4 2023 Like for like (€m) 2022 2023 Like for like change Revenue change vs. Q4 2022 vs. 2022 329 288 -9.4% Refractory, Abrasives, Construction 1,434 1,233 -11.9% - - - Eliminations & others - - - 329 288 -9.4% Total revenue 1,434 1,233 -1
Slide 20: Current EBITDA at €633 million, in line with FY 2023 guidance
Current EBITDA at €633 million, in line with FY 2023 guidance (*) 720 -12.2% (€m) +35 633 +106 +10 +25 -6 -18 -240 16.8% Current EBITDA margin 16.7% 2022 Perimeter Currencies Volumes Price-mix Variable Fixed Change 2023 Current costs costs and in inventories Current EBITDA overheads and other EBITDA
Slide 21: Current net income from continuing operations reached €242 million
Current net income from continuing operations reached €242 million (€m) 2022 2023 Change ● Net other operating income Current EBITDA 720 633 -12.2% and expenses impacted by Current operating income 439 365 -16.9% the impairment of the assets Current financial expenses (50) (38) - serving the paper ma
Slide 22: Substantial free operating cash flow generation supported by working capital management actions
Substantial free operating cash flow generation supported by working capital management actions (€m) 2022 2023 Current EBITDA (including discontinued operations)* 859 640 Increase (–)/decrease (+) in operating working capital (233) 86 Notional tax on current operating income (155) (96) Others 11 9 Cu
Slide 23: Net debt reduced by €548 million (-33%) compared to December 31, 2022
Net debt reduced by €548 million (-33%) compared to December 31, 2022 Change in net financial debt (€m) Net Debt Net current Debt Other income Acquisition Dividends Discontinued Other Net Debt Dec. 31, 2022 free operating servicing and expenses net of disposals operations Dec 31, 2023 cash flow cost
Slide 24: Outlook
Imerys Financial Highlights Outlook Results 24 February22, February 22,2024 2024| |Imerys Imerys2023 2023Annual AnnualResults Results
Slide 25: Outlook
Outlook ● After unprecedented destocking in 2023, markets have stabilized ● Construction, notably residential, and, to a lesser extent, Automotive are expected to remain low, still impacted by high interest rates, while other markets such as Consumers and Life Sciences, or Energy and Electronics are
Slide 26: Appendix
Imerys APPENDIX 26 February22, February 22,2024 2024| |Imerys Imerys2023 2023Annual AnnualResults Results
Slide 27: 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 4.0 years €1,010m 3.3 years Average maturity Average maturity (€m) 31/12/2022 31/12/20223 High level of available resources : Bonds 1
Slide 28: Sales per quarter and reporting segment
Sales per quarter and reporting segment PM Americas PM EMEA & APAC Others PM PM Sales (€ millions) 2022 2023 2022 2023 2022 2023 2022 2023 First quarter 271 266 376 386 -48 -30 599 622 Second quarter 305 267 419 361 -45 -32 679 596 Third quarter 327 255 421 339 -59 -30 689 564 Fourth quarter 286 246
Slide 29: Current EBITDA per quarter and reporting segment
Current EBITDA per quarter and reporting segment Current EBITDA (€ PM Americas PM EMEA & APAC Others PM PM millions) 2022 2023 2022 2023 2022 2023 2022 2023 First half 110 83 132 100 -3 3 239 186 Second half 118 84 138 102 -15 2 241 188 Full Year 228 167 271 202 -18 4 480 374 Current EBITDA (€ PM RA
Slide 30: Glossary
Glossary Alternative Performance Definitions and reconciliation to IFRS indicators Indicators 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 eff
Slide 31: Thank you for your attention
Thank you for your attention Visit www.imerys.com for more information. Or connect with us: @imerys www.linkedin.com/company/imerys/ www.facebook.com/imerysgroup/ 31 February February July 22,2024 27, 2021 22, | 2024 | |Imerys Imerys Imerys 2023 first half 2023 Annual 2021 Annual Results Results Resu