Earnings Release • Jul 27, 2021
Earnings Release
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"Imerys significantly improved its financial performance in the first half of the year, supported by strong commercial momentum and the global recovery of underlying markets in all geographies. Continued focus on cost savings and pricing discipline contributed to increased profitability even in the current inflationary environment. We are confident that demand for the Group's specialty minerals solutions will continue at a good pace throughout the year, driven by the prospect of continued economic recovery worldwide. In this context, Imerys expects to reach revenue of €4.2 billion for the year 2021, with current EBITDA margin close to 18%, above the 2019 level, assuming constant exchange rates and no deterioration in the macro-economic environment."
The limited review procedures on the half-year financial statements have been performed. The limited review report is being issued.
| 11 Unaudited consolidated results (€ millions) |
H1 2020 | H1 2021 | Change (%) |
|---|---|---|---|
| Revenue | 1,900.2 | 2,158.3 | +13.6% |
| Organic growth | -15.9% | +16.7% | - |
| Current EBITDA | 289.6 | 400.4 | +38.3% |
| Current EBITDA margin | 15.2% | 18.6% | +340 bps |
| Current operating income | 132.1 | 245.0 | +85.5% |
| Current operating margin | 7.0% | 11.3% | +440 bps |
| Operating income | 111.3 | 223.2 | +100.5% |
| Net income from current operations, Group share | 72.8 | 158.3 | +117.4% |
| Net income, Group share | 56.6 | 141.8 | +150.4% |
| 2 Net income from current operations per share |
€0.91 | €1.87 | +104.2% |
1 The definition of alternative performance measures can be found in the glossary at the end of the press release.
2 Weighted average number of outstanding shares: 84,709,730 in H1 2021 compared with 79,560,430 in H1 2020.
As part of its growth strategy, Imerys will invest €60 million over the next two years to expand carbon black production capacity at its plant in Willebroek, Belgium, in order to support the fast-growing market of Lithium-ion batteries for electric vehicles. With a unique portfolio of natural and synthetic graphite powders, conductive carbon blacks and tailor-made dispersions, Imerys will continue to develop innovative materials for safer and higher-performing batteries in close cooperation with the leading Lithium-ion battery producers in the world.
On May 14, Imerys successfully issued its first sustainability-linked bond for a principal of €300 million, with an annual coupon of 1% maturing in 2031. With this bond, the Group confirms it is fully committed to achieving its broad sustainability ambitions and to reducing greenhouse gas emissions by 36.0% in 2030 relative to revenue (tCO2/M€) from a 2018 base year.
Imerys is rated B by CDP, above the industry average (C), Platinum by Ecovadis and AA by MSCI.
On July 24, Imerys signed an agreement to sell to Thiele Kaolin Company, one of the world's leading producers of processed kaolin clay, certain assets and mining resources supplying hydrous kaolin to the paper & packaging markets. These assets, which are part of Imerys' Performance Minerals Americas business segment, posted revenue of approximately \$76 million in 2020 with 109 employees. This transaction is expected to be completed in the second part of the year.
Imerys expects to generate this year net proceeds of ca. €100 million from the sale of these assets and other recent disposals (i.e. Imerys' stake in Fiberlean Technologies, related production facilities, other minor non-strategic assets).
Assuming constant exchange rates and no deterioration in the macro-economic environment, Imerys expects to reach revenue of €4.2 billion for the year 2021, with current EBITDA margin close to 18%, above 2019 level (17.6%).
This outlook reflects the Group's confidence in continued, sustained demand for its specialty minerals solutions across all segments and its ability to deliver on cost savings and positive price-mix in the current inflationary environment. Imerys is ideally positioned to capitalize on the global recovery that is gathering pace.
In April, the Plan of reorganization jointly proposed by Imerys and the representatives of current and future potential claimants reached the required 75% approval threshold from the relevant voting creditors and claimants. The relevant US District Court of Delaware recently rescheduled the confirmation hearing on the proposed Plan to mid-November, resulting in a delay to the beginning of 2022 of the potential final judicial approval of the Plan and closure of the Chapter 11 process.
| Total | 1,900.2 | 2,158.3 | +13.6% | +16.7% | +15.2% | +1.5% |
|---|---|---|---|---|---|---|
| Second quarter | 871.6 | 1,099.9 | +26.2% | +28.9% | +26.3% | +2.6% |
| First quarter | 1,028.5 | 1,058.5 | +2.9% | +6.3% | +5.8% | +0.5% |
| Unaudited quarterly data (€ millions) |
2020 | 2021 | Reported Change |
Like-for-like change |
Volumes | Price mix |
Revenue for the first half of 2021 was €2,158.3 million, up 16.7% year-on-year at constant scope and exchange rates, including an exceptional growth of 28.9% in the second quarter. Group sales volumes were up 15.2%, in the first half as the recovery across all underlying markets continued to gain traction.
In a context of high inflation, Imerys' price mix accelerated in Q2 (+2.6%), averaging 1,5% for the first half versus the prior year.
Revenue included a significant, negative currency effect of €82.5 million (-4.3%), primarily as a result of the depreciation of the U.S. dollar against the euro.
The scope effect was €37.6 million for the first half, related mostly to the positive contribution of recent bolt-on acquisitions (Haznedar group, Cornerstone, Sunward Refractories and Hysil) and the divestiture of the kaolin operations in Australia.
| Unaudited quarterly data (€ millions) |
2020 | 2021 | Change |
|---|---|---|---|
| First quarter | 164.8 | 182.7 | +10.9% |
| Second quarter | 124.8 | 217.7 | +74.5% |
| Total | 289.6 | 400.4 | +38.3% |
| Margin | 15.2% | 18.6% | +340 bps |
Current EBITDA reached €400.4 million for the first half of 2021, a 38.3% increase vs. H1 2020. Current EBITDA margin improved by 340 basis points to 18.6% versus the first half of 2020.
It benefitted from positive volume contribution (€138.7 million), strong price mix (€11.9 million) and good cost control. Variable costs were stable (+€0.7 million), as inflation was offset by savings related to purchasing initiatives and the I-Cube industrial excellence program. Fixed costs and overheads were up €36.1 million vs last year, following increased activity at all production sites.
The currency effect was negative at €21.8 million.
Current operating income reached €245.0 million for the first half of 2021, an 85.5% increase compared to the first half of last year.
Net income from current operations, Group share, totaled €158.3 million, up 117.4% vs. 2020. Net financial result was negative at -€18.0 million. The income tax expense of €61.3 million corresponds to an effective tax
rate of 27.0%, compared with 28.0% in the first half of 2020. Net income from current operations, Group share, per share, was up 104.2% to €1.87.
Net income, Group share, totaled €141.8 million in the first half of 2021, after -€16.5 million of other income and expenses, after tax.
| (€ millions) | H1 2020 | H1 2021 |
|---|---|---|
| Current EBITDA | 289.6 | 400.4 |
| Increase (-) / decrease (+) in operating working capital | 46.4 | (62.7) |
| Notional tax on current operating income | (37.0) | (66.1) |
| Other | 2.9 | 2.8 |
| Net current operating cash flow (before capital expenditure) | 301.9 | 274.4 |
| Capital expenditure | (149.4) | (142.7) |
| Right of use assets (IFRS 16) | (13.4) | (9.5) |
| Net current free operating cash flow | 139.1 | 122.2 |
Imerys generated a solid net current free operating cash flow of €122.2 million in the first half of 2021, thanks primarily to disciplined working capital management. This figure includes:
| (€ millions) | H1 2020 | H1 2021 |
|---|---|---|
| Net current free operating cash flow | 139.1 | 122.2 |
| Acquisitions and disposals | (32.0) | 12.7 |
| Dividend | (137.0) | (98.4) |
| Change in equity | 118.1 | (1.8) |
| Change in non-operating working capital | (20.9) | (33.1) |
| Other non-recurring income and expenses | (32.8) | (30.7) |
| Debt servicing costs | (18.9) | (11.4) |
| Exchange rates and other | (33.4) | 0.9 |
| Change in net financial debt | (17.8) | (39.7) |
| (€ millions) | Dec 31, 2020 | June 30, 2021 |
|---|---|---|
| Net financial debt | 1,508.0 | 1,547.6 |
| Shareholders' equity | 2,955.6 | 3,128.4 |
| Net financial debt / shareholders' equity | 51.0% | 49.5% |
| Net financial debt/current EBITDA* | 2.4x | 2.1x |
*Based on the last twelve month current EBITDA
As of June 30, 2021, net financial debt totaled €1,547.6 million, which corresponds to a net financial debt to current EBITDA ratio of 2.1 x, improving vs last year.
The Group's financial structure is solid, as evidenced by the "investment grade" ratings confirmed by Standard and Poor's (September 14, 2020, BBB-, stable outlook) and Moody's (March 31, 2021, Baa3, stable outlook).
Performance Minerals (56% of consolidated revenue)
| Q2 2020 (€ millions) |
Q2 2021 (€ millions) |
Like for like change on Q2 2020 |
Unaudited quarterly data | H1 2020 (€ millions) |
H1 2021 (€ millions) |
Like for like change on H1 2020 |
|---|---|---|---|---|---|---|
| 214 | 242 | +20.5% | Revenue Americas | 464 | 473 | +10.1% |
| 228 | 300 | +33.7% | Revenue Europe, Middle East and Africa (EMEA) |
501 | 583 | +17.9% |
| 106 | 125 | +27.3% | Revenue Asia-Pacific (APAC) | 217 | 255 | +26.6% |
| (45) | (50) | - | Eliminations | (92) | (98) | - |
| 501 | 616 | +27.7% | Total revenue | 1,090 | 1,212 | +16.6% |
| - | - | - | Current EBITDA | 202 | 263 | +30.2% * |
| - | - | - | Current EBITDA margin | 18.5% | 21.7% | +320 bps |
* Reported growth
Revenue generated by the Performance Minerals segment was up 16.6% like-for-like in the first half of 2021. On a reported basis, revenue was up 11.2% after a negative currency effect of €50.4 million (-4.6%) and a positive scope effect of €1.9 million (+0.2%).
Revenue in the Americas was up 10.1% at constant scope and exchange rates in the first half of 2021, of which +20.5% in the second quarter, despite persisting logistic issues which created a significant order backlog. The overall rebound in activity was supported by sales of paints, rubber, polymers and ceramic products in the construction industry and a better performance of filtration and agriculture markets in the consumer goods sector.
Revenue in Europe, Middle East and Africa increased by 17.9% at constant scope and exchange rates in the first half of 2021. During the second quarter (+33.7%), the Group benefited from a dynamic construction sector (paints, coatings, rubber and ceramic applications) and better consumer goods market (filtration and life science applications), which returned to pre-crisis levels. Despite a strong upturn, automotive - which continued to suffer from global chip availability issues - and paper markets remained below their 2019 levels.
Revenue in Asia-Pacific was up 26.6% at constant scope and exchange rates in the first half of 2021 (+27.3% in the second quarter) thanks to the rebound of all end markets and geographies, in particular in Graphite & Carbon for mobile energy.
| Q2 2020 (€ millions) |
Q2 2021 (€ millions) |
Like for like change on Q2 2020 |
Unaudited quarterly data | H1 2020 (€ millions) |
H1 2021 (€ millions) |
Like for like change on H1 2020 |
|---|---|---|---|---|---|---|
| 137 | 198 | +30.8% | Revenue High Temperature Solutions |
301 | 385 | +18.0% |
| 246 | 311 | +31.9% | Revenue Refractory, Abrasives & Construction |
543 | 606 | +16.4% |
| (6) | (16) | - | Eliminations | (18) | (28) | - |
| 377 | 493 | +29.4% | Total revenue | 826 | 962 | +16.0% |
| - | - | - | Current EBITDA | 88 | 140 | +60.6% * |
| - | - | - | Current EBITDA margin | 10.6% | 14.6% | +400 bps |
* Reported growth
Revenue generated by the High Temperature Materials and Solutions segment was up 16.0% in the first half of 2021 at constant scope and exchange rates. On a reported basis, revenue increased by 16.5% with a positive scope effect of €35.7 million (+4.3%) and a negative currency effect of €27.2 million (-3.3%).
Revenue in High Temperature Solutions, which is serving the iron & steel, thermal and foundry markets, increased by 18.0% year-on-year at constant scope and exchange rates in the first half of 2021, posting growth of 30.8% growth in the second quarter. The business continued to benefit from the strong underlying markets recovery, particularly in the US and Asia, and to a lesser extent in Europe, currently lagging behind in the recovery cycle. The rebound was supported by the dynamism of the construction sector and by the automotive market, which however has not yet fully recovered to its pre-crisis level mainly as a consequence of the global chip shortage. Last year's bolt-on acquisitions (Haznedar in Turkey, Sunward in Taiwan and Hysil in India) are performing above expectations.
Revenue in the Refractory, Abrasives & Construction business area was up 16.4% at constant scope and exchange rates in the first half of 2021, driven by an increase in volumes in all market segments, thanks to a strong global rebound in demand for industrial equipment, especially in the second quarter, and further growth in building and infrastructure (specialty binders). In India, where the recovery was particularly strong in the first half despite the Covid-19, the new greenfield plant in Vizag continued its ramp up to serve the dynamic domestic refractory and construction markets.
The press release is available on the Group's website www.imerys.com. The Group will hold a live webcast to discuss the first half 2021 results at 6.30 PM (CET) on July 27, 2021, which can be accessed on the Group's website www.imerys.com.
| November 2, 2021 | Third quarter 2021 Results |
|---|---|
| February 17, 2022 | 2021 annual results |
| April 28, 2022 | 1st quarter 2022 results |
| July 28, 2022 | 1st half 2022 results |
| November 2, 2022 | 3rd quarter 2022 results |
These dates are subject to change and may be updated on the Group's website https://www.Imerys.com/finance.
The world's leading supplier of mineral-based specialty solutions for industry with €3.8 billion in revenue and 16,400 employees in 2020. Imerys delivers high value-added, functional solutions to a great number of sectors, from processing industries to consumer goods. The Group draws on its understanding of applications, technological knowledge and expertise in material science to deliver solutions by beneficiating its mineral resources, synthetic minerals and formulations. Imerys' solutions contribute essential properties to customers' products and their performance, including heat resistance, hardness, conductivity, opacity, durability, purity, lightness, filtration, absorption and water repellency. Imerys is determined to develop responsibly, in particular by fostering the emergence of environmentally-friendly products and processes.
More comprehensive information about Imerys may be obtained from its website (www.imerys.com) in the Regulated Information section, particularly in its Registration Document filed with the French financial markets authority (Autorité des marchés financiers, AMF) on March 22, 2021 under number D.21-0167 (also available from the AMF website, www.amf-france.org). Imerys draws investors' attention to chapter 2 "Risk Factors and Internal Control" of its Registration Document.
Disclaimer: This document contains projections and other forward-looking statements. Investors should be aware that such projections and forward-looking statements are subject to various risks and uncertainties (many of which are difficult to predict and generally beyond the control of Imerys) that could cause actual results and developments to differ materially from those expressed or implied.
Press contacts:
Vincent Gouley: +33 (0)1 49 55 64 69
Claire Lauvernier: +33 (0)1 49 55 66 65 Hugues Schmitt (DGM Conseil): +33 (0)1 40 70 11 89
| Revenue by business group (€ millions) |
Q2 2020 | Q2 2021 | Reported change |
Group structure |
Exchange rates |
Like for like change |
|---|---|---|---|---|---|---|
| Performance Minerals | 501 | 616 | +22.9% | +0.2% | -3.3% | +27.4% |
| High Temperature Materials & Solutions |
377 | 493 | +30.7% | +4.8% | -2.5% | +29.4% |
| Holding & Eliminations | (6) | (18) | n.s. | n.s. | n.s. | n.s. |
| Total | 872 | 1,100 | +26.2% | +2.0% | -3.5% | +28.9% |
| (€ millions) | Q1 2020 | Q1 2021 | Change |
|---|---|---|---|
| Revenue | 1,028.5 | 1,058.5 | +2.9% |
| Current EBITDA | 164.8 | 182.7 | +10.9% |
| Current operating income | 82.6 | 116.3 | +40.8% |
| Current financial expense | (13.0) | (11.7) | - |
| Current taxes | (19.5) | (28.2) | - |
| Minority interests | (0.9) | (3.1) | - |
| Net income from current operations, Group share | 49.2 | 73.3 | +48.9% |
| Other operating income and expenses, net | (5.2) | (1.3) | - |
| Net income, Group share | 44.0 | 72.0 | +63.6% |
| (€ millions) | Q2 2020 | Q2 2021 | Change |
|---|---|---|---|
| Revenue | 871.6 | 1,099.9 | +26.2% |
| Current EBITDA | 124.8 | 217.7 | +74.5% |
| Current operating income | 49.5 | 128.7 | +159.9% |
| Current financial expense | (16.2) | (6.3) | - |
| Current taxes | (9.3) | (33.0) | - |
| Minority interests | (0.4) | (4.4) | - |
| Net income from current operations, Group share | 23.6 | 85.0 | +260.6% |
| Other operating income and expenses, net | (11.0) | (15.2) | - |
| Net income, Group share | 12.6 | 69.8 | +453.2% |
| (€ millions) | H1 2020 | H1 2021 | Change |
|---|---|---|---|
| Revenue | 1,900.2 | 2,158.3 | +13.6% |
| Current EBITDA | 289.6 | 400.4 | +38.3% |
| Current operating income | 132.1 | 245.0 | +85.5% |
| Current financial expense | (29.2) | (18.0) | - |
| Current taxes | (28.8) | (61.3) | - |
| Minority interests | (1.3) | (7.4) | - |
| Net income from current operations, Group share | 72.8 | 158.3 | +117.4% |
| Other operating income and expenses, net | (16.2) | (16.5) | - |
| Net income, Group share | 56.6 | 141.8 | +150.4% |
| (€ millions) | June 30, 2021 | June 30, 2020 | 2020 |
|---|---|---|---|
| Revenue | 2,158.3 | 1,900.2 | 3,798.5 |
| Raw materials and consumables used | (728.8) | (650.5) | (1,292.9) |
| External expenses | (555.1) | (486.6) | (968.4) |
| Staff expenses | (464.7) | (448.2) | (875.2) |
| Taxes and duties | (18.7) | (21.0) | (41.7) |
| Amortization, depreciation and impairment losses | (160.0) | (161.9) | (342.3) |
| Intangible assets, mining assets and property, plant and equipment |
(135.9) | (128.3) | (268.9) |
| Right-of-use assets | (24.1) | (33.6) | (73.4) |
| Other current income and expenses | 13.9 | 0.1 | 20.5 |
| Current operating income | 245.0 | 132.1 | 298.5 |
| Gain (loss) from obtaining or losing control | 4.0 | (2.6) | (5.0) |
| Other non-recurring items | (25.7) | (18.2) | (155.5) |
| Operating income | 223.2 | 111.3 | 138.0 |
| Net financial debt expense | (18.2) | (24.1) | (44.4) |
| Income from securities | 1.4 | 1.4 | 2.7 |
| Gross financial debt expense | (19.7) | (25.5) | (47.1) |
| Interest expense on borrowings and financial debt | (17.8) | (22.9) | (42.2) |
| Interest expense on lease liabilities | (1.9) | (2.6) | (4.9) |
| Other financial income (expenses) | 0.2 | (5.1) | (17.0) |
| Other financial income | 122.4 | 177.5 | 270.8 |
| Other financial expenses | (122.2) | (182.6) | (287.8) |
| Financial income (loss) | (18.0) | (29.2) | (61.4) |
| Income taxes | (58.3) | (24.8) | (44.3) |
| Net income | 146.9 | 57.4 | 32.3 |
| (1) Net income, Group share |
141.8 | 56.6 | 30.1 |
| Net income attributable to non-controlling interests | 5.1 | 0.7 | 2.2 |
| (1) Net income per share: | |||
| Basic net income per share (in €) | 1.67 | 0.71 | 0.37 |
| Diluted net income per share (in €) | 1.65 | 0.70 | 0.36 |
| (€ millions) | June 30, 2021 | June 30, 2020 | 2020 |
|---|---|---|---|
| Non-current assets | 4,816.0 | 5,004.8 | 4,862.4 |
| Goodwill | 2,155.5 | 2,140.3 | 2,149.1 |
| Intangible assets | 288.4 | 289.0 | 287.6 |
| Right-of-use assets | 176.7 | 223.8 | 192.5 |
| Mining assets | 412.6 | 479.0 | 425.6 |
| Property, plant and equipment | 1,489.6 | 1,555.9 | 1,506.9 |
| Joint ventures and associates | 105.5 | 99.6 | 87.3 |
| Other financial assets | 25.9 | 45.5 | 49.1 |
| Other receivables | 42.5 | 28.4 | 29.8 |
| Derivative financial assets | 0.4 | - | 4.1 |
| Deferred tax assets | 119.0 | 143.2 | 130.4 |
| Current assets | 2,376.7 | 2,612.4 | 2,128.7 |
| Inventories | 751.3 | 778.4 | 691.8 |
|---|---|---|---|
| Trade receivables | 677.3 | 549.7 | 568.0 |
| Other receivables | 213.1 | 204.8 | 196.3 |
| Derivative financial assets | 39.5 | 3.7 | 14.2 |
| Other financial assets | 7.5 | 11.9 | 9.9 |
| Cash and cash equivalents | 687.9 | 1,063.9 | 648.5 |
| Assets held for sale | 59.7 | - | - |
| Consolidated assets | 7,252.3 | 7,617.2 | 6,991.1 |
| Equity, Group share | 3,067.9 | 3,007.3 | 2,896.6 |
| Share capital | 169.9 | 170.0 | 169.9 |
| Share premium | 614.4 | 617.3 | 614.4 |
| Treasury shares | (6.3) | (11.1) | (6.7) |
| Reserves | 2,148.1 | 2,174.3 | 2,088.9 |
| Net income, Group share | 141.8 | 56.6 | 30.1 |
| Equity attributable to non-controlling interests | 60.5 | 47.5 | 59.0 |
| Equity | 3,128.4 | 3,054.8 | 2,955.6 |
| Non-current liabilities | 2,669.3 | 2,763.3 | 2,740.1 |
| Provisions for employee benefits | 277.1 | 337.7 | 352.3 |
| Other provisions | 414.8 | 414.4 | 394.9 |
| Borrowings and financial debt | 1,701.3 | 1,694.8 | 1,698.3 |
| Lease liabilities | 148.9 | 174.5 | 167.8 |
| Other debts | 21.5 | 32.4 | 34.3 |
| Derivative financial liabilities | 8.1 | 5.8 | 0.5 |
| Deferred tax liabilities | 97.6 | 103.8 | 92.0 |
| Current liabilities | 1,442.1 | 1,799.1 | 1,295.4 |
| Other provisions | 42.7 | 23.3 | 58.8 |
| Trade payables | 582.4 | 500.8 | 475.6 |
| Income taxes payable | 101.3 | 74.0 | 79.2 |
| Other debts | 325.2 | 277.6 | 371.6 |
| Derivative financial liabilities | 3.0 | 25.5 | 6.0 |
| Borrowings and financial debt | 323.9 | 817.3 | 260.9 |
| Lease liabilities | 43.2 | 69.4 | 42.6 |
| Bank overdrafts | 20.4 | 11.2 | 0.7 |
| Liabilities related to assets held for sale | 12.4 | - | - |
| Consolidated equity and liabilities | 7,252.3 | 7,617.1 | 6,991.1 |
Net current free operating cash flow corresponds to the residual cash flow from recurring operations after current operating income taxes and operating capital expenditure, taking into account proceeds from operating asset disposals and cash changes in operating working capital requirement. In comparison with the cash flow presented in the Consolidated Statement of Cash Flows, net current free operating cash flow corresponds to the recurring portion of "Net cash flows from (used in) operating activities" adjusted for acquisitions and disposals of intangible assets and property, plant and equipment in "Cash flow from investing activities" after income taxes.
| (€ millions) | June 30, 2021 June 30, 2020 | 2020 | |
|---|---|---|---|
| Consolidated Income Statement | |||
| Revenue | 2,158.3 | 1,900.2 | 3,798.5 |
| Raw materials and consumables used | (728.8) | (650.5) | (1,292.9) |
| External expenses | (555.1) | (486.6) | (968.4) |
| Staff expenses | (464.7) | (448.2) | (875.2) |
| (1) Taxes and duties |
(18.7) | (21.0) | (41.7) |
| Other current income and expenses | 13.9 | 0.1 | 20.5 |
|---|---|---|---|
| Adjustments | |||
| Change in provisions for employee benefits | (2.8) | (1.9) | (2.5) |
| Change in current operating write-downs and provisions | 1.4 | (4.0) | (10.0) |
| Share in net income of joint ventures and associates | (5.5) | 1.1 | (1.2) |
| Dividends received from joint ventures and associates | 2.4 | 0.4 | 4.4 |
| Current EBITDA | 400.4 | 289.6 | 631.5 |
| Income taxes | |||
| Notional tax on current operating income | (66.1) | (37.0) | (83.0) |
| Adjustments | |||
| (2) Change in operational working capital requirement |
(62.7) | 46.4 | 74.9 |
| Carrying amount of intangible assets and property, plant and equipment disposed of |
2.8 | 2.9 | 35.7 |
| Net current operating cash flow | 274.4 | 301.9 | 659.1 |
| Investing activities | |||
| (3) Acquisitions of intangible assets and property, plant and equipment |
(142.7) | (149.4) | (262.1) |
| Additions to right-of-use assets | (9.5) | (13.4) | (23.5) |
| Net current free operating cash flow | 122.2 | 139.1 | 373.5 |
| (1) Consolidated Income Statement | |||
| (2) Change in operating working capital requirement (Consolidated Statement of Cash Flows) |
(62.7) | 46.4 | 74.9 |
| Adjustments for decrease (increase) in inventories | (55.7) | 16.7 | 86.3 |
| Adjustments for decrease (increase) in trade receivables | (103.0) | 52.6 | 34.9 |
| Adjustments for increase (decrease) in trade payables | 96.0 | (23.0) | (46.3) |
| (3) Acquisitions of intangible assets and property, plant and equipment (Consolidated Statement of Cash Flows) |
(142.7) | (149.4) | (262.1) |
| Acquisitions of intangible assets | (12.2) | (11.9) | (22.3) |
| Acquisitions of property, plant and equipment | (103.8) | (88.9) | (231.6) |
| Change in payables on acquisitions of intangible assets and property, plant and equipment |
(26.7) | (48.6) | (8.2) |
The following table presents the cash flow from non-recurring operations, i.e. non-recurring operating transactions, changes in the scope of consolidation, financing transactions and transactions with shareholders. These cash flows, added to the net current free operating cash flow from the previous table, give the total change in net financial debt.
| (€ millions) | June 30, 2021 |
June 30, 2020 |
2020 |
|---|---|---|---|
| Net current free operating cash flow | 122.2 | 139.1 | 373.5 |
| Income taxes | |||
| Notional income tax on financial income (loss) and non-recurring income and expenses |
4.9 | 8.2 | 17.1 |
| Change in current and deferred tax assets and liabilities | (1.7) | (31.5) | (16.4) |
| Change in income tax payables and receivables | 11.1 | 12.6 | 0.8 |
| Income taxes paid on non-recurring income and expenses | 3.6 | 13.0 | 17.7 |
| Consolidated Income Statement | |||
| Financial income (loss) | (18.0) | (29.2) | (61.4) |
| Other operating income and expenses | (21.7) | (20.7) | (160.5) |
| Adjustments | |||
| Change in non-operating working capital requirement | (47.0) | (5.3) | 34.7 |
| Change in financial write-downs and provisions | 1.7 | 2.1 | 4.1 |
|---|---|---|---|
| Change in fair value of hedging instruments | - | 0.4 | 0.4 |
| Non-recurring impairment losses | (1.7) | - | 12.7 |
| Change in non-recurring write-downs and provisions | (9.3) | (26.1) | 48.2 |
| Investments in associates | 1.4 | - | 8.9 |
| Gain (loss) on businesses disposed of | (3.8) | 1.3 | 2.7 |
| Gain (loss) on intangible assets and property, plant and equipment disposed of |
0.7 | (0.3) | 1.3 |
| Investing activities | |||
| Acquisition of businesses | (27.1) | (33.3) | (99.0) |
| Disposal of businesses | 17.6 | - | 0.8 |
| Disposal of intangible assets and property, plant and equipment | - | 0.5 | 0.5 |
| Loans and advances in cash received from (granted to) third parties | 22.1 | 0.8 | (0.1) |
| Equity | |||
| Share capital increases (decreases) | 0.8 | - | - |
| Disposals (acquisitions) of treasury shares | (2.6) | (1.7) | (0.5) |
| Share-based payments | 4.6 | 2.9 | 5.8 |
| Dividends | (98.4) | (17.4) | (17.6) |
| Change in net financial debt excl. exchange rate effects | (40.6) | 15.6 | 173.5 |
| (€ millions) | June 30, 2021 |
June 30, 2020 |
2020 |
|---|---|---|---|
| Net income | 146.9 | 57.4 | 32.3 |
| Adjustments | |||
| Adjustments for depreciation and amortization | 171.3 | 161.6 | 407.7 |
| Adjustments for impairment loss on goodwill | - | - | 12.7 |
| Adjustments for impairment loss (reversal of impairment loss) recognized in profit or loss, trade and other receivables |
0.2 | 2.3 | 1.0 |
| Adjustments for impairment loss (reversal of impairment loss) recognized in profit or loss, inventories |
(6.0) | (1.7) | 7.5 |
| Adjustments for provisions | (14.6) | (30.3) | (32.7) |
| Adjustments for share-based payments | 4.6 | 2.9 | 5.8 |
| Adjustments for losses (gains) on disposal of non-current assets | (7.3) | 0.1 | 1.6 |
| Adjustments for undistributed profits from joint ventures and associates | (4.1) | 1.1 | 7.7 |
| Adjustments for net interest income and expense | 18.3 | 23.0 | 42.0 |
| Adjustments for fair value losses (gains) | 0.4 | 5.5 | 0.4 |
| Other adjustments for non-cash items | 1.3 | 1.1 | 2.2 |
| Other adjustments for which cash effects are investing or financing cash flow |
1.4 | 1.3 | 2.3 |
| Change in working capital requirement | (109.7) | 41.1 | 109.5 |
| Adjustments for decrease (increase) in inventories | (55.7) | 16.7 | 86.3 |
| Adjustments for decrease (increase) in trade receivables | (103.0) | 52.6 | 34.9 |
| Adjustments for increase (decrease) in trade payables | 96.0 | (23.0) | (46.3) |
| Adjustments for other receivables and debts | (47.0) | (5.3) | 34.6 |
| Adjustments for income tax expense | 58.3 | 24.8 | 44.2 |
| Net cash flow from (used in) operations | 261.2 | 290.0 | 644.2 |
|---|---|---|---|
| Interest paid | (12.3) | (17.3) | (46.5) |
| Income taxes refund (paid) | (48.3) | (34.6) | (63.9) |
| Adjustments for dividends received | (0.5) | - | - |
| Adjustments for dividends received from joint ventures and associates | 2.4 | 0.4 | 4.4 |
| Net cash flows from (used in) operating activities | 202.4 | 238.6 | 538.2 |
| (€ millions) | June 30, 2021 |
June 30, 2020 |
2020 |
| Acquisitions of intangible assets | (12.2) | (11.9) | (22.3) |
| Acquisitions of property, plant and equipment | (103.8) | (88.9) | (231.6) |
| Change in payables on acquisitions of intangible assets and property, plant and equipment |
(26.7) | (48.6) | (8.2) |
| Cash flows used in (from gaining) control of subsidiaries or other businesses |
(28.1) | (34.5) | (71.3) |
| Proceeds from disposals of intangible assets and property, plant and equipment |
5.3 | 4.3 | 38.7 |
| Cash flows from losing control of subsidiaries or other businesses | 16.8 | - | 0.5 |
| Cash advances and loans granted to third parties | 54.8 | 3.5 | 4.9 |
| Cash receipts from repayment of advances and loans granted to third parties |
(30.1) | (2.7) | (7.8) |
| Interest received | 1.4 | 1.4 | 2.4 |
| Cash flow from investing activities | (122.7) | (177.4) | (294.7) |
| Proceeds from issuing shares | 0.8 | - | - |
| Payments to acquire or redeem treasury shares | (2.6) | (1.7) | (0.5) |
| Dividends paid | (97.9) | (17.4) | (17.6) |
| Proceeds from borrowings | 299.0 | 322.9 | 30.5 |
| Repayments of borrowings | (5.5) | (24.2) | (294.0) |
| Payments of lease liabilities | (26.6) | (33.7) | (79.3) |
| Other cash inflows (outflows) | (234.2) | 116.2 | 144.2 |
| Cash flow from financing activities | (67.0) | 362.1 | (216.9) |
| Change in cash and cash equivalents | 12.7 | 423.4 | 26.6 |
| (€ millions) | June 30, 2021 |
June 30, 2020 |
2020 |
|---|---|---|---|
| Cash and cash equivalents at the beginning of the period | 647.8 | 653.2 | 653.2 |
| Change in cash and cash equivalents | 12.8 | 423.4 | 26.6 |
| Effect of exchange rate changes | 7.0 | (23.9) | (32.0) |
| Cash and cash equivalents at the end of the period | 667.6 | 1,052.7 | 647.8 |
| Cash | 481.8 | 792.9 | 455.2 |
| Cash equivalents | 206.1 | 271.0 | 193.3 |
| Bank overdrafts | (20.4) | (11.2) | (0.7) |
Imerys uses "current" indicators to measure the recurrent performance of its operations, excluding significant items that, because of their nature and their relatively infrequent occurrence, cannot be considered as inherent to the recurring performance of the Group (see section 5.5 Definitions and reconciliation of alternative performance measures to IFRS indicators in the 2020 Universal Registration Document).
| Alternative Performance Indicators | Definitions and reconciliation to IFRS indicators |
|---|---|
| Growth at constant scope and exchange rates (also called life-for-like change, LFL growth organic or internal growth) |
Calculated by stripping out the impact of currency fluctuations as well as acquisitions and disposals (scope effect). Restatement of the currency effect consists of calculating aggregates for the prior year at the exchange rate of the current year. The impact of exchange rate instruments qualifying as hedging instruments is taken into account in current data. Restatement of Group structure to take into account newly consolidated entities consists of: subtracting the contribution of the acquisition from the aggregates of the current year, for entities entering the consolidation scope in the current year; subtracting the contribution of the acquisition from January 1 of the current year, until the last day of the month of the current year when the acquisition was made the prior year, for entities entering the consolidation scope in the prior year. Restatement of entities leaving the consolidation scope consists of: subtracting the departing entity's contribution from the aggregates of the prior year as from the first day of the month of divestment, for entities leaving the consolidation scope in the current year; subtracting the departing entity's contribution from the aggregates of the prior year, for entities leaving the consolidation scope in the prior year. |
| Volume effect | The sum of the change in sales volumes of each business area between the current and prior year, valued at the average sales price of the prior year. |
| Price mix effect | The sum of the change in average prices by product family of each business area between the current and prior year, applied to volumes of the current year. |
| Current operating income | The operating income before other operating income and expenses (income from changes in control and other non-recurring items). |
| Net income from current operations | The Group's share of income before other operating income and expenses, net (income from changes in control and other non-recurring items, net of tax) and income from discontinued operations. |
| Current EBITDA | Calculated from current operating income before operating amortization, depreciation and impairment losses and adjusted for changes in operating provisions and write-downs, share in net income and dividends received from joint ventures and associates. |
| Net current operating cash flow | Net current free operating cash flow before capital expenditure and right-of-use assets (to reflect the IFRS 16 calculation). |
| Net current free operating cash flow | The Group's current EBITDA after deducting notional tax, changes in working capital requirement and paid capital expenditure and including subsidies, value of divested assets and miscellaneous. |
| Net financial debt | The difference between borrowings and financial debt and cash and cash equivalents. |
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