2018 group presentation - oi engine...current operating income €4.6 bn revenue 50 countries 270...

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2018 Group Presentation

Mineral solutions to create tomorrow’sworld

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Contents

Imerys general presentation - February 2018

� Group profile

� Key figures

� Our offering

� Our markets

� World presence

� Description of the Group’s businesses� Energy Solutions & Specialties

� Filtration & Performance Additives

� Ceramic Materials

� High Resistance Minerals

� Group development levers� Innovation

� Excellence and continuous improvement programs

� Corporate Social Responsibility

� Value creation at Imerys

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Group profile


Imerys delivers high value-added, functional solutions to a great number of sectors, from processing

industries to consumer goods.

The Group draws on its knowledge of applications, technological expertise and its material science

know-how to deliver resources based on beneficiation of its mineral resources, synthetic minerals and

formulations. These contribute essential properties to customers’ products and performance, including

refractoriness, hardness, conductivity, opacity, durability, purity, lightness, filtration, absorption and

repellency.

Imerys is determined to develop responsibly, in particular by fostering the emergence of

environmentally-friendly products and processes.

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Imerys, world leader in mineral-based solutions for industry

14.1%Operating margin

€648 mCurrent operating income

€4.6 bnRevenue

50Countries

270Operating sites

18,300Employees

€6.2 bnMarket capitalization

54% of capital held by GBL

#1 or #2On most of our markets

12.5%Revenue of new products

2017 figures


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Imerys offers high value-added functional solutions…

� Beneficiated mineral resources

(clay, bentonite, diatomite, feldspar, kaolin, mica,

wollastonite, etc.)

� Formulations (ceramic bodies, continuous casting

fluxes for steel, monolithic refractories, etc.)

� Synthetic minerals (synthetic graphite, zirconia, etc.)

� from high quality assets:

� Unique portfolio of mineral resources

� Wide range of exclusive technologies and processes

� Materials science expertise

� Know how and customers’ applications knowledge


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…that contribute essential properties and performance to its industrial

customers’ products

Thermal and mechanical resistance

of industrial abrasives

World leader in fused minerals for

abrasives

Gloss and opacity

for paint

World leader in wollastonite

and talc for paint

Lifespan and fast charging

of electric vehicle lithium-ion

batteries

World leader in conducting

additives (graphite, carbon black)

Whiteness and toughness of

sanitaryware, floor and wall tiles

World leader in ceramic

pastes for sanitaryware

Filtration of liquids

(food or blood plasma)

World leader in perlite and

diatomite for filtration

Watertightness and insulation

of roofs

French leader

in clay roof tiles

Softness of natural

mineral powders

World leader in talc for health and

beauty

Resistance and lightness

of automotive plastic parts

World leader in talc-based

performance additives for plastics


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Imerys presence is diversified in many markets and regions

The world leader in mineral-based specialties for consumer goods, industrial equipment and

construction, with presence in more 50 countries.*

* 31/12/2017

EUROPE

126 industrial sites

9,500 employeesNORTH AMERICA

54 industrial sites

3,200 employees

AFRICA & MIDDLE EAST

17 industrial sites

500 employeesSOUTH AMERICA

23 industrial sites

1,200 employees

ASIA-PACIFIC

47 industrial sites

3,900 employees


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Imerys businesses are leaders in most of their markets

Energy Solutions

& Specialties

High Resistance Minerals

Filtration

& Performance Additives

Ceramic Materials

� Carbonates

� Monolithic Refractories

� Graphite & Carbon

� Oilfield Solutions

� Fused Minerals

� Aluminates

� Performance Additives

� Filtration

� Metallurgy

� Kaolin

� Roofing

� Ceramics

Revenue

1,327 M€

Revenue

915 M€

Revenue

1,237 M€

Revenue

1,183 M€


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Energy Solutions & Specialties

The Energy Solutions & Specialties business group manufactures

and sells high-performance mineral solutions for various demanding

industries: the consumer goods and paper sectors with Carbonates,

high-temperature industries served by Monolithic Refractories,

Graphite & Carbon applications linked to mobile energy, and oil and

gas exploration served by the Oilfield Solutions division.

� Carbonates � Natural (GCC) and Precipitated (PCC) Calcium Carbonates used

as filling or coating pigment for paper production and functional

additives for paints, rubber and plastics.

� Monolithic Refractories (Calderys)� Unshaped refractory materials used to protect industrial

equipment from high temperatures in heavy industries (steel,

cement, power generation, petro-chemicals).

� Protection for furnaces, kilns, crucibles and incinerators.

� Graphite & Carbon� High performance graphite powder for mobile energy, electronics

and engineering, refractories for the transport and automotive

markets.

� Oilfield Solutions� Production of proppants and mineral solutions for non-

conventional oil and gas exploration.

Revenue

1,327 M€

46%

39%

12%

3%Carbonates

Monolithic refractories

Graphite & Carbon

Oilfield Solutions


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Filtration & Performance Additives

The Filtration & Performance Additives business group enjoys many

high quality minerals and products (bentonite, diatomite, perlite, talc,

wollastonite and steel casting fluxes) supplied to many industries including

agriculture, food, beverages, steel, construction, horticulture, plastics,

paints, rubber, catalysts, paper, pharmaceuticals, beauty and personal

care.

� Performance Additives� The division addresses fast growing markets in which additional

performance is key. The solutions offered consist of functional additives

derived mostly from mica, talc, wollastonite, diatomite, perlite or

vermiculite used for paints, plastics, polymers, rubbers, adhesives,

sealants, pharma & personal care.

� Filtration� Mainly diatomite and perlite used as filter aid for edible liquids (beer,

wine, oil, fruit juice). The division is the world’s leading supplier of

diatomite and expanded perlite-based products for filtration.

� Metallurgy� Serves the metallurgy market along the whole metal production chain,

from raw materials through to the casting of the final products.

� Includes Steel Casting Fluxes, Bentonite & Perlite Intermediates, and

Metalcasting & Absorbents.

Revenue

1,237 M€

40%

28%

32%

Performance additives

Filtration

Metallurgy


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Ceramic Materials

The Ceramic Materials business group is organized around the three

following divisions:

� Kaolin � The broadest product range covering a large spectrum of applications:

from the paper industry to ceramics, including paints, refractories or

fiberglass markets.

� Roofing� With high-quality deposits and an efficient production process, the

Roofing division is France’s largest producer of clay roof tiles. The

division also offers solar roof tiles, metallic profiles and roof

accessories.

� Ceramics

� The division is a global supplier of mineral and prepared bodies for the

sanitary, tableware and tile making industries. The division also

provides a wide range of solutions for technical ceramics, the glass

industry, mainly fiberglass, but also for electrometallurgy, energy and

some construction-related applications, as well as kiln furniture for the

ceramics markets.

Revenue

1,183 M€

26%

33%

41%

Roofing

Ceramics

Kaolin


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High Resistance Minerals

The High Resistance Minerals business group gathers the

Aluminates and Fused Minerals divisions. It mainly serves high

temperature industries, abrasives, automotive and construction

markets.

� Fused Minerals

� Production of fused alumina, fused zirconia and tabular alumina.

The division is the worldwide leader in specialty applications such

as abrasives, refractories, technical ceramics, heating elements

for the iron & steel, automotive, industrial equipment and

construction markets.

� Aluminates

� The Aluminates division, resulting from the merger of the Refractory

Minerals and Kerneos divisions, is the world leader in calcium

aluminate-based performance binders mainly for the refractory,

building chemistry, civil engineering, mining industries, and sewage

systems. This division also enjoys a unique position in the

production of minerals for silico-aluminous refractory solutions used

in acidic or neutral high temperature environments.

Revenue

915 M€

51%27%

22% Fused Minerals

Refractory Minerals

Kerneos

Aluminates division


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Group development lever

Operating expenses Capital expenditure

External growth

� Kerneos

� Bolt-on acquisitions

Development

CAPEX

� Capacity increases

� New products

� Geographical

expansion

Excellence

� Industrial

� Commercial

� Internal efficiency

Innovation

� Incremental

innovations

� New applications

Value Creation


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Revenue from new products (€m) (*)

Innovation, a major organic growth engine for the Group

449490

523

575

12,2% 12,0%12,5% 12,5%

2014 2015 2016 2017

R&D costs:

70 €m

(1.5% of 2017)

Revenue from new products As a % of Group revenue

+ 10.0 %

* New products = less-than-five-years-old products into Imerys’ product range


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Innovation as a means to strengthen the specialty mineral offering


Market Applications Division Product Service

Ne

w a

pp

lica

tio

ns

Electric vehicles

Increased performance of lithium ion batteries for electrical

cars

� Lower CO2 emissions

Graphite

& Carbon �

Health & BeautyNatural mineral solution in cosmetics

� Respect of the environment

Performance

Additives �

Renovation and

new construction

Solar tiles

� More energy efficient constructionsRoofing �

Industrial

equipment

Ultra-fine alumina for high-performance abrasives

� Improved resistance of abrasives

Fused

Minerals �

RecyclingCompatibilization of used plastics

� Recycling

Performance

Additives � �

IndustryAdditives for cryogenic insulation for liquefied gaz storage

� Energy efficiencyFiltration � �

Incr

em

en

tal

inn

ov

ati

on

s

AutomotivePerformance of automotive plastics

� Lighter cars

Performance

Additives �

Refractories for

high temperature

industries

High-purity andalousite

�Thermal and mechanical resistanceAluminates �

FoundryBentonite-based binder

� Improvement in molding precision and yield Metallurgy �

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Excellence and continuous improvement programs


Commercial excellence Internal effciencyIndustrial excellence

� Control over industrial

costs

� Process quality, traceability,

and reliability strengthened

� Safety improvement

� Optimization of production

capacities

� Improved customer offering

� Optimization of sales &

marketing processes

� Systems convergence

� Resource sharing

� Controls

Strengthening the Group’s competitiveness and transform

to support Group growth

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Our global Corporate Social Responsibility approach

To create and protect stakeholder value, the Group has committed to applying global principles and

continuously improve performance setting and monitoring objectives in three key areas:

Environment:

minimizing the impact of

our activities on the

environment

Societal:

ensuring respect and safety

of employees

and communities

Governance:

setting CSR tone at the top

and making sure our

activities are carried out

ethically

1 2 3

Local projects over the past 12 years745118 Local projects in 2017

We develop local initiatives linked to our 3 objectives:

Human Resources

Human Rights and

Supplier Engagement

Environmental

Management

Systems (EMS)

Energy efficiency

and harmful

emissions

Resource

optimization

Preservation

of Biodiversity

Health & Safety

Relations with

Communities

Corporate

Governance

Business Conduct

and Ethics

Our CSR framework is based on commitments to:


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High standards for Sustainable Development

� Management of natural resources

� 61% of non-hazardous industrial waste recycled

� 43% of Group sites ISO 14001 certified in 2017

� Human resources, health and safety in the workplace

� 1,42 lost-time accident per 1,000,000 hours worked

in 2017

� 342 000 hours of training delivered to Group

employees in 2017

� Biodiversity & rehabilitation

� 1,173 hectares rehabilitated in Western Europe in

2017

CO2 emissions as a % of revenue

689 tons

CO2 equivalent/€m- 10%

compared to 2014

Energy consumption as a % of revenue

8.01

Mjoules /€m- 15%

compared to 2014


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Value Creation at Imerys

Value Creation

� Customers

� New products: 12.5% of revenues

in 2017

� Teams

� Safety in the workplace: 1.42 lost-

time accident per 1,000,000

hours worked

� 342,000 hours of raining session

� Corporate and Social Responsibility

� 52 projects pledged to local

communities in 2017

� 1,173 hectares of mine sites

rehabilitated in 2017

� Shareholders

� Return on Invested Capital at 12,2

%

� Net Income from Current

Operations up + 11,4 %

� Dividend payout at 41 %, 2,6 %

yield

� Total Shareholder Return at 11 %

on average over three years

Positioning

� Specialty solutions offering key

properties to industrial clients’

products

� Numerous applications, diversity of

end-markets

Key Assets

� Quality mining and industrial assets

� 267 industrial sites

� More than 30 minerals

� 20 years of reserves on average

� Leadership positions

� # 1 or #2 on most markets

� An agile organization

� 12 divisions close to their markets

� 18,300 employees in 50 countries

� An operational excellence driven

culture

� Deployment of I-Cube program

in 55% of industrial facilities

Develoment Strategy

� Innovation

� 400 employees

� 1,800 patents

� Development capital expenditures

� 341 M€ of capital expenditure,

o/w 121 M€ development capex

in 2017

� Selective acquisitions

� 10 acquisitions integrated in 2017

Market environment

� Opportunities offered by markets

undergoing significant changes

� Durability (green mobility,

recycling, emission reductions,

etc.)

� Health, well-being and lifestyle

(electrification, digitalization,

bioethics, natural extraction, etc.)

� Demography and urbanization

(more efficient construction

technologies, electricity storage,

etc.)


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www.imerys.com

2018 group presentation - oi engine...current operating income €4.6 bn revenue 50 countries 270...

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