Imerys Sa · EURONEXT:NK
Imerys Sa — Imerys Sa Ord — Q1 2024 Earnings Presentation
23 slides from Imerys Sa's earnings presentation, Apr 30, 2024
Slide 1: 2024 First Quarter Results
2024 First Quarter Results April 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
Imerys Financial Highlights Outlook Results 3 April 30, 2024 | Imerys Q1 2024 Results
Slide 4: Highlights
Imerys Financial Highlights Outlook Results 4 April 30, 2024 | Imerys Q1 2024 Results
Slide 5: First Quarter 2024 - Highlights
First Quarter 2024 - Highlights(1) Revenue Adjusted EBITDA Strategic Roadmap Divestiture of assets €926m €188m Bolt-on acquisition serving the paper market ● Initial signs of demand recovery ● Adjusted EBITDA at €188 million; ● Exclusive negotiations announced on ● Exclusive negotiations announced o
Slide 6: New Business Area - Solutions for Energy Transition
New Business Area - Solutions for Energy Transition ➢ Rationale: ○ Creation of a new business area to better reflect the importance and fast-growing contribution of the Group’s activities in critical minerals. ○ It includes Imerys Graphite & Carbon business and the Group's share (50% ownership) in t
Slide 7: Clear signs of recovery
Clear signs of recovery Revenue in € million ● Initial signs of demand recovery, notwithstanding persistent economic uncertainty in Europe ● Sequential improvement in Q1 024: ○ +1% vs Q3 2023 ○ +4% vs Q4 2023 ○ Supported by volume recovery 7 April 30, 2024 | Imerys Q1 2024 Results
Slide 8: End-market trends in Q1 2024 (1/3)
End-market trends in Q1 2024 (1/3) Construction Construction(1) Robust non-residential & infrastructure activity, but strong Q3-23 Q4-23 vs Q1-24 vs headwinds in residential sector; still uncertain Chinese situation vs. Q3-22 Q4-22 Q1-23 Europe +1% 0% -1% ● Europe: Weak demand continues, impacting a
Slide 9: End-market trends in Q1 2024 (2/3)
End-market trends in Q1 2024 (2/3) Automotive Light vehicle production (1) Q1 24 downturn is expected to continue in 2024 Q3-23 Q4-23 vs Q1-24 vs ● In Europe, demand still low despite price cuts vs. Q3-22 Q4-22 Q1-23 ● In North America, flattish outlook as a consequence of Europe +5% +6% -7% persist
Slide 10: End-market trends in Q1 2024 (3/3)
End-market trends in Q1 2023 (3/3) Industrial production (1) Industry & ● Weak industrial activity in Europe extending into Q1 2024. US Equipment Q3-23 Q4-23 vs Q1-24 vs and Asia benefiting from competitive energy prices vs. Q3-22 Q4-22 Q1-23 Europe -2% -2% -2% ● Industrial activity in the US stable
Slide 11: Cost reduction actions delivering €36m, ie 3.9% of Q1 costs
Cost reduction actions delivering €36m, ie 3.9% of Q1 costs Costs Evolution Key components Energy & Freight as a % of Revenue Inflation: 0% -5.8% 27.6% 26.0% Volume: -1.3% 24.8% FX : -1.0% Perimeter : -0.5% Others: 0.9% Cost saving actions: -3.9% Q1 Q1 FY Q1 Q1 2023 2024 2022 2023 2024 ● €36 million
Slide 12: Financial Results
Imerys Financial Highlights Outlook Results 12 April 30, 2024 | Imerys Q1 2024 Results
Slide 13: Sales variances Q1 2024
Sales variances Q1 2024 (€m) -0.4% -1.5% -3.4% -1.9% -7.1% Reported 997 -34 -18 926 -4 -15 Organic variation: -5.3% 2023 Q1 Perimeter Currencies Volumes Price 2024 Q1 revenue revenue 13 April 30, 2024 | Imerys Q1 2024 Results
Slide 14: Performance Minerals
Performance Minerals (€m) Q1 2023 Q1 2024 Like for like change Revenue vs. 2023 PM Americas 265 259 -1.2% PM EMEA & APAC 386 353 -7.5% Eliminations & others (30) (32) - Total revenue Performance Minerals 622 579 -5.6% ● Demand for minerals in the construction and filtration industries still subdue v
Slide 15: Solutions for Refractory, Abrasives and Construction
Solutions for Refractory, Abrasives and Construction (€m) Q1 2023 Q1 2024 Like for like Revenue change vs. 2023 Revenue Refractory, Abrasives, Construction 319 300 -3.5% ● Sluggish volumes in construction and industrial end-markets ● Some signs of volume recovery in the refractory business, especial
Slide 16: Solutions for Energy Transition
Solutions for Energy Transition (€m) Q1 2023 Q1 2024 Like for like Revenue change vs. 2023 Revenue Graphite & Carbon 55 49 -10.1% ● Persistent destocking across the Electric Vehicles supply chain ● Recovery in the conductive polymers business ● TQC sales will be disclosed on half year basis 16 April
Slide 17: Adjusted EBITDA at €188 million (+9% vs last year)
Adjusted EBITDA at €188 million (+9% vs last year) 188 (€m) +35 +9.2% 172 -5 188 +7 +24 +25 -3 -5 -17 -20 17.2% Adjusted EBITDA margin 20.2% (1) Q1 2023 Perimeter Currencies Volumes Price Variable Fixed Share in net Change Q1 2024 Adjusted costs costs and income of in inventories Adjusted EBITDA ove
Slide 18: Improved current profitability metrics
Improved current profitability metrics (€m) Q1 2023 Q1 2024 Change Adjusted EBITDA 172 188 +9.2% Current operating income 105 123 +17.5% Current financial expenses (12) (16) - Current income tax (25) (24) - Current income tax rate 27% 22% - Minority interest (1) (1) - Current net income from continu
Slide 19: Outlook
Imerys Financial Highlights Outlook Results 19 April 30, 2024 | Imerys Q1 2024 Results
Slide 20: Outlook
Outlook ● Imerys End-markets expected to pick up progressively, supported by sequential sales volumes growth in the quarters to come ● European markets stabilizing while the US and Asia remain resilient ● In the coming months, Imerys expects to benefit from this positive trend and from innovative pr
Slide 21: Appendix
Imerys APPENDIX 21 April 30, 2024 | Imerys Q1 2024 Results
Slide 22: 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 life- • Restatement of the curr
Slide 23: 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/ 23 April 30, 2024 | Imerys Q1 2024 Results