Imerys Sa · EURONEXT:NK
Imerys Sa — Q3 2019 Earnings Presentation
23 slides from Imerys Sa's earnings presentation, Oct 28, 2019
Slide 1: Third Quarter and 9 Months 2019 Results
Third Quarter and 9 Months 2019 Results October 28, 2019 Patrick Kron - Chairman and interim 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 Registration Document filed under No. D.19-0175 March 20, 2019 with Autorité des Marchés Financiers. Imerys draws the attention of investors to the “Risk
Slide 3: Agenda
Agenda 1 Results 4 2 Updated outlook 15 3 Appendix 17 3 28/10/2019 | Third Quarter and 9 Months 2018 Results
Slide 4: Results
Agenda 1 Results 4 2 Updated outlook 15 3 Appendix 17 4 28/10/2019 | Third Quarter and 9 Months 2018 Results
Slide 5: Nine months 2019 highlights
Nine months 2019 highlights ● Patrick Kron appointed non executive Chairman of the Board in place of Gilles Michel Evolution of the on July 25, 2019 governance ● Resignation of Conrad Keijzer on October 21, 2019 and replacement by Patrick Kron as CEO for an interim period Challenging market ● Weak m
Slide 6: Third quarter 2019 highlights
Third quarter 2019 highlights ● Deterioration of the automotive, industrial equipment and steel markets Weaker than anticipated market conditions ● Impacted by ○ Decline of sales volumes (-6.9%, -€41 million vs. last year) ○ Deconsolidation of North American talc subsidiaries and shutdown of Current
Slide 7: Tougher market environment impacting sales volumes
Tougher market environment impacting sales volumes Organic growth, volumes and price - mix (y-o-y, proforma1) 9M 2019: -2.7% +4.7% +6.0% +3.1% +0.3% -0.9% -2.0% -5.1% Organic growth +4,3% +3,2% +4,0% +3,3% +2,7% +2,7% +1,5% +1,7% +1,7% -0,9% -2,9% -3,6% -4,8% -6,9% (1) Excluding the Roofing division
Slide 8: Price-mix more than offsetting variable cost increase
Price-mix more than offsetting variable cost increase Price - mix and variable cost balance (€m, y-o-y, proforma) 9M 2019 YTD: 65 YTD: 82 8 28/10/2019 | Third Quarter and 9 Months 2019 Results
Slide 9: €31 million cost savings on the first nine months
€31 million cost savings on the first nine months Cumulated savings on fixed costs and overheads (€m, y-o-y) 31 20 17 Savings generated by cost reduction measures and transformation program 10 6 Ceramic proppants and Namibian operations 9 28/10/2019 | Third Quarter and 9 Months 2019 Results
Slide 10: Volumes impacting even more revenue evolution in third quarter
Volumes impacting even more revenue evolution in third quarter (€m) Organic growth: -5.1% 1,154 (35) -6.3% on current basis -3.0% -0.6% +2.4% -6.9% +1.7% Positive Deconsolidation Weak industrial, exchange rate Positive price of North Disposal of non automotive and impact, mix in all American talc co
Slide 11: Price-mix and cost containment measures contributing to current operating income
Price-mix and cost containment measures contributing to current operating income (€m) Price mix offsetting rise in variable costs -19.8% on current basis (*) Deconsolidation of North Cost American talc containment subsidiaries measures/ Group transformation 12.2% 11.5% 12.2% 11.2% Operating margin 1
Slide 12: Performance Minerals: contrasted situation of the markets
Performance Minerals: contrasted situation of the markets Revenue (€m, LFL 1 change) Q3 2019 9M 2019 Reported change vs. 9M18 Americas 272 (-4.6%) 3 828 (-3.6%) -9.7% 2 EMEA 238 (-4.3%) 754 (-2.5%) -2.4% APAC 117 (-3.2%) 346 (+1.1%) +7.8% Eliminations (31) (88) - Performance Minerals 597 (-4.8%) 1,8
Slide 13: High Temperature Materials & Solutions: slowdown of iron & steel
High Temperature Materials & Solutions: slowdown of iron & steel Revenue (€m, LFL 1 change) Q3 2019 9M 2019 Reported change vs. 9M18 High Temperature Solutions 204 (-5.5%) 614 (-3.6%) -4.0% Refractory, Abrasives, Construction 304 (-5.7%) 953 (-3.0%) -1.7% Eliminations (12) (34) - High Temperature Ma
Slide 14: Net income from current operations and Net income, Group share
Net income from current operations and Net income, Group share (€m) Q3 2018 Q3 2019 Change 9M 2018 1 9M 2019 Change IFRS 16 3 IFRS 16 4 Current operating income 141 113 -19.8% 425 358 -15.7% Current financial expenses (16) (15) (49) (33) Current income tax (37) (28) (111) (94) Current tax rate 29.6%
Slide 15: Updated outlook
Agenda 1 Results 4 2 Updated outlook 15 3 Appendix 17 15 28/10/2019 | Third Quarter and 9 Months 2018 Results
Slide 16: Updated 2019 outlook
Updated 2019 outlook ● Full year net income from current operations revised: expected decline by around 20% versus 2018 1 ● Updated outlook including forecasted impact of ca. -7% from the deconsolidation of North American talc subsidiaries and the shutdown of Willsboro plant (USA) in first half ● Ma
Slide 17: Appendix
Agenda 1 Results 4 2 Updated outlook 15 3 Appendix 17 17 28/10/2019 | Third Quarter and 9 Months 2018 Results
Slide 18: Business Segments
Business Segments 18 28/10/2019 | Third Quarter and 9 Months 2018 Results
Slide 19: Revenue breakdown by geography and end market
Revenue breakdown by geography and end market Revenue by geography in 9M 2019 Revenue by end market in 2018 19 dd/mmm/yyyy 28/10/2019 | Third | Presentation Quarter and title 9 Months 2018 Results
Slide 20: LFL revenue
LFL revenue 1 Performance Minerals (€m, LFL change) Q1 2019 Q2 2019 Q3 2019 9M 2019 Americas 282 (-2.8%) 273 (-3.4%) 272 (-4.6%) 828 (-3.6%) EMEA 259 (-0.2%) 257 (-3.2%) 238 (-4.3%) 754 (-2.5%) APAC 115 (+2.8%) 115 (+3.7%) 117 (-3.2%) 346 (+1.1%) Eliminations (32) (24) (31) (88) Performance Minerals
Slide 21: Quarterly performance
Quarterly performance Revenue (€m) FY 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Q1 2019 Q2 2019 Q3 2019 Performance Minerals 2,575 668 661 632 641 2,602 632 650 641 636 2,559 623 621 597 Americas 1,283 324 319 301 325 1,269 295 307 314 310 1,227 282 273 272
Slide 22: Half-year performance
Half-year performance IFRS 16 Current operating income (€m) FY 2016 H1 2017 H2 2017 FY 2017 H1 2018 H2 2018 FY 2018 H1 2019 Performance Minerals 373 198 192 390 182 171 353 144 Operating margin 14.5% 14.9% 15.1% 15.0% 14.2% 13.4% 13.8% 11.6% High Temperature Materials & 135 84 88 173 112 109 221 97
Slide 23: Thank you for your attention
Thank you for your attention February 13, 2020 2019 FY Results April 29, 2020 Q1 2020 results July 27, 2020 H1 2020 results November 2, 2020 9M 2020 results Visit www.imerys.com for more information. Or connect with us: @imerys www.linkedin.com/company/imerys/ www.facebook.com/imerysgroup/ 23 28/10/