Slide 1: Imerys Third Quarter and Nine Months 2020 Results
Imerys Third Quarter and Nine Months 2020 Results November 2, 2020 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.20-0165 March 24, 2020 with Autorité des Marchés Financiers. Imerys draws the attention of investors to
Slide 3: Highlights
Sommaire 1 Highlights Alessandro Dazza – Chief Executive Officer 3 November 2, 2020 | Third Quarter and Nine Month 2020 Results
Slide 4: Sales recovery in Q3, costs savings in line with objectives
Sales recovery in Q3, costs savings in line with objectives Revenue and like-for-like1 Current EBITDA1 • Improvements in all markets confirm trend change vs. 2019 (€m) and margin (€m) reversal after Q2 Covid-crisis peak • Positive price-mix maintained also in Q3 -7.5% • Cost savings measures, both f
Slide 5: Improvement in all underlying markets, though at uneven pace
Improvement in all underlying markets, though at uneven pace Volumes evolution (vs prior year) Revenue by end market Covid-19 impact Q1 20 Q2 20 Q3 20 Moderate Limited High High High 9 months -15.1% High N/A Year-on-year selected end market evolution Paper production(3) Construction(4) Light vehicle
Slide 6: Positive price-mix maintained also in Q3
Positive price - mix maintained also in Q3 Contribution of price-mix and evolution of variable costs (€m, vs prior year) Price-mix impact on revenue +1.7% +1.0% +0.5% +0.3% 19 13 9 8 9 (2) (4) (6) Price-mix impact on current EBITDA Evolution of variable costs 6 November 2, 2020 | Third Quarter and N
Slide 7: €100 million cost savings in the first nine months 2020
€100 million cost savings in the first nine months 2020 Evolution of fixed costs and overheads (€m) 1,294 (13) (12) (10) 19 (37) 1,213 (28) Connect & Shape Covid-19 Transformation plan action plan €(35)m €(65)m Cumulative savings of fixed and overheads at In line with targets €61m since 2019 Inflatio
Slide 8: Financials
Sommaire 2 Financials Sébastien Rouge – Chief Financial Officer 8 November 2, 2020 | Third Quarter and Nine Month 2020 Results
Slide 9: Relative improvement in Q3 after sharp decline in volumes in Q2 caused by Covid-19
Relative improvement in Q3 after sharp decline in volumes in Q2 caused by Covid-19 (€m) Organic change: -14.4% -0.5% +0.1% -1.1% 9M -15.1% +0.6% 3,345 3,328 2 (35) -15.9% (17) (504) 21 reported Particularly 2,812 Volume drop Positive USD vs. EUR mainly due effect in the 3rd to Covid-19 of price - mi
Slide 10: Performance Minerals: all regions showing gradual recovery in Q3
Performance Minerals: all regions showing gradual recovery in Q3 Q3 2019 Q3 2020 LFL change vs. (€m) 9M 2019 9M 2020 LFL change vs. restated from Q3 2019 restated restated from 9M 2019 restated Kaolin (1) Kaolin (1) 253 217 -5.3% Revenue: Americas 766 681 -7.4% 270 244 -10.3% Revenue: EMEA 850 745 -
Slide 11: High Temperature Materials & Solutions: I&S, industrial markets still weak in Q3
High Temperature Materials & Solutions: I&S, industrial markets still weak in Q3 Q3 2019 Q3 2020 LFL change vs. (€m) 9M 2019 9M 2020 LFL change vs. Q3 2019 9M 2019 204 160 -14.5% Revenue: High Temperature Solutions 614 461 -19.5% Revenue: Refractory, Abrasives, 303 243 -17.2% 953 785 -17.5% Construc
Slide 12: Current EBITDA margin at 18.1% in Q3 thanks to significant costs savings
Current EBITDA margin at 18.1% in Q3 thanks to significant costs savings 9M Positive (€m) 0 price-mix and 586 (2) 584 9 decreasing -22.4% of which (248) variable costs 75 reported -€9M In Q3 10 (1) 25 454 Drop in volumes Covid-19 with approx. action plan and 40% Connect contribution & Shape program 1
Slide 13: Net income
Net income (€m) Q3 2019 Q3 2020 Change 9M 2019 9M 2020 Change Current EBITDA 194 165 -15.2% 586 454 -22.4% Current operating income 113 78 -31.2% 358 210 -41.4% Current financial expenses (15) (15) - (33) (2) (44) - Current income tax (28) (18) -31.3% (94) (48) -48.8% Current tax rate 29.6% 28.5% -
Slide 14: Outlook
Sommaire 3 Outlook Alessandro Dazza – Chief Executive Officer 14 November 2, 2020 | Third Quarter and Nine Month 2020 Results
Slide 15: Investing for future growth: geography and capacity expansion
Investing for future growth: geography and capacity expansion External developments Internal developments • Agreement for the acquisition of a 60% • €35 million investment in the production of majority stake in the Haznedar group synthetic graphite in Bodio, Switzerland ○ Turkish-based high-quality
Slide 16: Outlook: gradual sales recovery subject to macroeconomic uncertainties; continued focus on costs and cash
Outlook: gradual sales recovery subject to macroeconomic uncertainties; continued focus on costs and cash generation ● End markets expected to continue recovering, but pace subject to the impact of the sanitary situation on the economy, especially in Europe ● Continued focus on cost savings and cash
Slide 17: Appendix
Sommaire A Appendix 17 November 2, 2020 | Third Quarter and Nine Month 2020 Results
Slide 18: Current operating income (COI)
Current operating income (COI) 9M (€m) 356 4 0 358 (2) 110 -78 -41.4% 69 reported (248) 12 (11) 25 210 10.7% 9.8% 10.7% Operating margin 7.5% 9M 2019 NA talc 9M 2019 COI Perimeter Currencies Volumes Price-mix Variable Fixed costs Change in 9M 2020 COI subsidiaries after costs and inventories COI dec
Slide 19: Revenue
Revenue Q3 (€m) Organic change: -11.4% -11.8% +0.3% +0.4% -4.7% -15.7% 5 reported 1,081 (51) (127) 4 912 Q3 2019 Perimeter Currencies Volumes Price-mix Q3 2020 revenue revenue 19 November 2, 2020 | Third Quarter and Nine Month 2020 Results
Slide 20: Current EBITDA
Current EBITDA Q3 (€m) 4 -15.2% (9) reported 194 (65) 165 6 24 8 2 18.0% EBITDA margin 18.1% Q3 2019 Perimeter Currencies Volumes Price-mix Variable Fixed costs Change Q3 2020 Current costs and in inventories Current EBITDA overheads, net and other EBITDA of inflation 20 November 2, 2020 | Third Qua
Slide 21: Current operating income (COI)
Current operating income (COI) Q3 (€m) 113 1 -78 -31.2% (9) reported (65) 25 (0) 78 3 8 10.5% Operating margin 8.5% Q3 2019 Perimeter Currencies Volumes Price-mix Variable Fixed costs Change Q3 2020 COI costs and in inventories COI overheads, net and other of inflation 21 November 2, 2020 | Third Qu
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 Americas 261 253 253 240 1,007 EMEA 291 289 270 260 1,110 APAC 123 123 117 117 480 Eliminations (51) (43) (44) (42) (181) Performance Minerals 623 621 597 575 2,415 Quarterly 2019 revenue has bee
Slide 23: Revenue per business segment
Revenue per business segment Q3 2019 Q3 2019 Q3 2020 Reported (€m) 9M 2019 9M 2019 9M 2020 Reported reported restated from change vs. reported restated from change vs. Kaolin Q3 2019 Kaolin 9M 2019 restated restated 272 253 217 -14.3% Revenue: Americas 828 766 681 -11.1% 238 270 244 -9.9% Revenue: E
Slide 24: Strong cash flow generation
Strong cash flow generation (€m) H1 2019 H1 2020 Change Change (%) Current EBITDA 391.3 289.6 -101.7 -26.0% Change in operating Working Capital (73.1) 46.4 117.5 n.a. Requirement Notional tax on current operating income (71.1) (37.0) 34.1 - Other 3.0 2.9 -0.1 - Net current operating cash flow (before
Slide 25: Strong cash flow generation
Strong cash flow generation Net current free operating cash flow (€m) Current EBITDA Net current free 391 ● Strong cash generation despite operating cash flow 290 significant drop in current EBITDA +40% Current H1 2019 H1EBITDA 2020 Change in WCR 139 ● Reduction of operating working 46 Change 99 in W
Slide 26: Sound financial structure
Sound financial structure Change in net financial debt (€m, post IFRS 16) Net Debt Net current Debt Other income Acquisition Dividends Other Net Debt FX impact Net Debt Dec. 31, 2019 free operating servicing and expenses net of disposals June 30, 2020 June 30, 2020 cash flow cost excl. FX Pre Covenan
Slide 27: Strong liquidity position
Strong liquidity position Bonds €1,924m Average Bond maturity ● High level of available resources : Average maturity 4.7 years maturity €1.0 billion undrawn credit lines and profile (€m) €1.1 billion cash as of June 30, 2020 ● Limited bond repayment in the short term: €224 million in November 2020 ●
Slide 28: Talc litigations: agreement on a joint Plan of Reorganization
Talc litigations: agreement on a joint Plan of Reorganization Representatives Imerys SA (1) The “Talc Subsidiaries” of existing and potential future (“the Group”) claimants JOINT PLAN OF REORGANIZATION Agreement to resolve historic talc-related liabilities filed in the US Bankruptcy Court for the Di
Slide 29: Talc litigations: financial Terms of the joint Plan of Reorganization
Talc litigations: financial Terms of the joint Plan of Reorganization Imerys Group’s contribution to the joint Plan of Reorganization Additional amount of up to USD $102.5 million Minimum cash payment of USD $75 million + subject to a reduction mechanism proportionate to the sale price for the assets
Slide 30: Talc litigations: revised indicative timetable of the Joint Plan of Reorganization
Talc litigations: revised indicative timetable of the Joint Plan of Reorganization Approval process of the Affirmative vote on the Final approval of joint Plan of proposed Plan by the the Plan from the Reorganization Hearing for Plan requisite majority of relevant (“Plan”) approval talc-related clai
Slide 31: Strong commitment to sustainability with significant achievements
Strong commitment to sustainability with significant achievements EMPOWERING our people CARING for our planet BUILDING for the future COVID-19 related initiatives Increase women in senior Assess 40% of portfolio(3) Reduce CO2 emissions management to 30% against sustainability (in tCO2/€) by 36% by 20
Slide 32: Glossary
Glossary 32 November 2, 2020 | Third Quarter and Nine Month 2020 Results
Slide 33: Thank you for your attention
Thank you for your attention Next events For more information: www.imerys.com February 17, 2021 2020 annual results Or on social media : April 29, 2021 1st quarter 2021 results @imerys July 27, 2021 1st half 2021 results November 2, 2021 3rd quarter 2021 results www.linkedin.com/company/imerys/ www.