Imerys Sa · EURONEXT:NK
Imerys Sa — Imerys Sa Ord — H1 2023 Earnings Presentation
33 slides from Imerys Sa's earnings presentation, Jul 27, 2023
Slide 1: First Half 2023 Results
First Half 2023 Results July 27, 2023 Alessandro Dazza - Chief Executive Officer Sébastien Rouge - Chief Financial Officer 1 July 27, 2023 | Imerys first semester 2023 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.23-0127 on March 22, 2023 with Autorité des Marchés Financiers. Imerys draws the attention of investors
Slide 3: Imerys Highlights
Imerys Financial Highlights Outlook Results 3 July 27, 2023 | Imerys first semester 2023 Results
Slide 4: Highlights
Imerys Financial Highlights Outlook Results 4 July 27, 2023 | Imerys first semester 2023 Results
Slide 5: Resilient profitability and strong cash generation in first half 2023
Imerys reports resilient profitability and strong cash generation in first half 2023 Revenue (€m) and current EBITDA margin (%) ● First half revenue at €1,982 million, down 5.6% like-for-like* vs. last year, impacted by continued customer destocking, macro-economic weakness in key end markets and high
Slide 6: Significant progress on lithium roadmap
Significant progress on lithium roadmap ● Existing mining activity in Cornwall; ● Bespoke lithium processing technology confirmed inferred resources of 161 MT to produce battery-grade lithium from at 0.54% lithium oxide, with life of mine Cornish granite ● First production at laboratory scale of excee
Slide 7: Expansion & Innovation
Expansion & Innovation Willebroek (Belgium) ● Commissioning of the third production line of carbon black for mobile energy completed ● Target sales at capacity: >€60m ● Construction of the fourth line underway 7 July 27, 2023 | Imerys first semester 2023 Results
Slide 8: New milestones in decarbonation roadmap
New milestones in decarbonation roadmap Willebroek (Belgium) Lompoc (California, USA) ● Partnership with TotalEnergies to bring renewable ● Long term contract with E.On to build an energy energy to Imerys site in Lompoc, California recovery plant on Imerys site ● Installation of solar panels and ene
Slide 9: End-markets trends in Q2 2023 (1/3)
End-markets trends in Q2 2023 (1/3) Construction(1) Construction Q4-22 Q1-23 Q2-23 ● Residential remains weak in all main geographies vs. Q4-21 vs. Q1-22 vs. Q2-22 served by the Group; infrastructure robust Europe +1% -1% +1% ● USA: particularly affected by high interest rates and North Am. -8% -7% -
Slide 10: End-markets trends in Q2 2023 (2/3)
End-markets trends in Q2 2023 (2/3) Automotive Light vehicle production (1) Q4-22 Q1-23 Q2-23 ● Production supported by easing in supply chain and vs. Q4-21 vs. Q1-22 vs. Q2-22 high order backlogs, however still below 2019 levels, Europe +15% +25% +11% especially in Europe North Am. +8% +10% +14% ●
Slide 11: End-markets trends in Q2 2023 (3/3)
End-markets trends in Q2 2023 (3/3) Industrial production (1) Industry & Equipment Q4-22 Q1-23 Q2-23 ● Europe: Industrial activity clearly in recession. No recovery vs. Q4-21 vs. Q1-22 vs. Q2-22 expected till late this year, or early 2024. Europe -0% -0% -1% ● USA: Depressed corporate investment, wi
Slide 12: Financial Results
Imerys Financial Highlights Outlook Results 12 July 27, 2023 | Imerys first semester 2023 Results
Slide 13: Sales variances
Sales variances (€m, % change vs prior year period) -1.3% -0.6% -12.9% +7.3% -7.4% Reported 2,142 +152 1,982 -28 -13 -271 2,142 Organic growth: -5.6% H1 2022 H1 2023 revenue Perimeter Currencies Volumes Price revenue Q2 1,129 -8 -26 -150 +42 985 -0.7% -2.3% -13.7% +3.8% -12.7% 13 July 27, 2023 | Ime
Slide 14: Performance Minerals
Performance Minerals Q2 2022 Q2 2023 Like for like (€m) H1 2022 H1 2023 Like for like change vs. Q2 change vs. H1 2022 2022 297 258 -11.0% Revenue: Americas 558 514 -6.4% 348 304 -11.0% Revenue: EMEA 659 632 -2.8% 150 134 -6.0% Revenue: APAC 291 266 -3.5% (53) (37) - Eliminations & others (108) (76)
Slide 15: High Temperature Materials & Solutions
High Temperature Materials & Solutions Q2 2022 Q2 2023 Like for like (€m) H1 2022 H1 2023 Like for like change vs. Q2 change vs. H1 2022 2022 Revenue: Refractory, Abrasives, 387 328 -13.6% 743 647 -12.3% Construction 0 0 - Eliminations & others 0 1 - 387 328 -13.6% Total segment revenue 743 648 -12.
Slide 16: Resilient current EBITDA
Resilient current EBITDA (€m, % change vs prior year period) -11.8% +149 375 Reported +17 331 -6 -3 -68 -2 445 -131 17.5% Current EBITDA margin 16.7% H1 2022 Perimeter Currencies Volumes Price Variable Fixed Change H1 2023 Current costs costs and in inventories Current EBITDA overheads & others EBIT
Slide 17: Current net income from continuing operations
Current net income from continuing operations (€m) H1 2022 H1 2023 Change Current EBITDA 375 331 -11.8% Current operating income 227 218 -4.2% Current financial expenses (19) (26) - Current net income from continuing operations, Group share 149 139 -7.1% Other operating income and expenses, net, Grou
Slide 18: Strong cash flow generation
Strong cash flow generation (€m) H1 2022 H1 2023 Current EBITDA (including discontinued operations) 445 338 Increase (–)/decrease (+) in operating working capital (160) 16 Notional tax on current operating income (79) (61) Others 6 6 Current operating cash flow (before capital expenditure) 213 299 Pai
Slide 19: Sound financial structure
Sound financial structure 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 June 30, 2023 cash flow cost Covenant 2.3 x Net financial debt to curren
Slide 20: Outlook
Imerys Financial Highlights Outlook Results 20 July 27, 2023 | Imerys first semester 2023 Results
Slide 21: Outlook
Outlook ● Limited visibility into customer demand, still impacted by ongoing destocking ● Focus on cost reduction measures and cash generation ● Pricing likely to remain stable at present levels ● Current EBITDA expected to be in the range of €630-650 million for full-year 2023 at current perimeter1
Slide 22: Appendix
Imerys APPENDIX 22 July 27, 2023 | Imerys first semester 2023 Results
Slide 23: Current operating income (COI)
Current operating income (COI) (€m) +149 -4.2% 227 +36 218 +5 -3 -2 293 227 -63 -131 10.6% COI margin 11.0% H1 2022 Perimeter Currencies Volumes Price-mix Variable Fixed Change H1 2023 COI costs costs and in inventories COI overheads and other 23 July 27, 2023 | Imerys first semester 2023 Results
Slide 24: Q2 Net income
Q2 Net income (€m) Q2 2022 Q2 2023 Change Current EBITDA 219 180 -17.8% Current operating income 136 113 -16.9% Current financial expenses (10) (14) - Current net income from continuing operations, Group share 90 72 -20.6% Other operating income and expenses, net, Group share (0) (33) - 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 €1,700m 3.9 years €1,010m 2.8 years Average maturity Average maturity (€m) 31/12/2022 30/06/2023 High level of available resources : Bonds 1,
Slide 26: Imerys in a nutshell
Imerys in a nutshell Who we are What we offer Whom we serve World’s leading supplier High added-value solutions Plastics, rubber, Building of mineral-based specialty solutions paints & adhesives & infrastructure to different industries We succeed through: €4.3bn revenue Best-in-class resources, operat
Slide 27: Imerys end-markets (% revenue, 2022)
Imerys end-markets (% revenue, 2022) Pre-divestitures Post HTS divestiture Ongoing divestiture of Paper Paper most assets serving paper Ongoing divestiture of most assets serving paper 7 0%% Industry & Equipment 9% Industry 11% 32% Construction 12% Construction 37% & Infrastructure Automotive 13% En
Slide 28: Value-added solutions for diverse markets
Value-added solutions for diverse markets Imerys delivers value-added solutions that are formulated to meet the technical specifications of each customer ● Valorization of mineral resources (clay, bentonite, diatomite, feldspar, kaolin, mica, etc.) ● Formulations (ceramic bodies, continuous casting fl
Slide 29: New Mid-Term objectives 2025: Empower our people
New Mid-Term objectives 2025 : Empower our people 1. Reinforce our maturity on core values Drivers of the Group strategy Being a safe and diverse place to work Material Perf Target Target Topic Group Objective 2022 2022 2025 are the cornerstone of Imerys’ company values. Health & Safety Safety : the
Slide 30: New ESG Mid-Term objectives 2025: Grow with our customers
New ESG Mid-Term objectives 2025 : Grow with our customers 2. Accelerate the development of sustainable solutions Drivers of the Group strategy Material Perf Target Target Group Objective Topic 2022 2022 2025 Product sustainability : the ambition is Portfolio management to push the boundaries of our
Slide 31: New Mid-Term objectives 2025: Care for our planet
New Mid-Term objectives 2025 : Care for our planet 4. Strengthen our commitments to preserve the planet Drivers of the Group strategy Environmental management : it is necessary to keep on building expertise and strengthen the Material Perf Target Target Group Objective Environmental Management Syste
Slide 32: 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 33: 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/ 33 July 27, 2023 | Imerys first semester 2023 Results