Interim / Quarterly Report • Jul 30, 2013
Interim / Quarterly Report
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PRESS RELEASE PARIS, JULY 30, 2013
On July 29, 2013, Imerys' Board of Directors examined the Group's financial statements for the first half of the year to June 30, 2013.
| Consolidated results | st half 2013 1 |
st half 2012 1 |
% current |
|---|---|---|---|
| (€ millions) | change | ||
| Revenue | 1,880.7 | 1,986.2 | - 5.3% |
| Current operating income (2) | 244.0 | 265.4 | - 8.1% |
| Operating margin | 13.0% | 13.4% | - 0.4 point |
| Net income from current operations, Group's share (3) | 155.0 | 161.0 | - 3.7% |
| Net income, Group's share | 128.7 | 157.3 | n.a. |
| Financing | |||
| Paid capital expenditure | 119.5 | 116.1 | + 3.0% |
| Current free operating cash flow (4) | 129.0 | 130.5 | - 1.1% |
| Shareholders' equity | 2,287.6 | 2,222.3 | + 2.9% |
| Net financial debt | 1,054.5 | 1,039.8 | + 1.4% |
| Data per share (euros) | |||
| Net income from current operations, Group's share (3) (5) | €2.06 | €2.14 | - 3.7% |
Chairman & CEO Gilles Michel commented:
"The Group's reactivity and the action plans implemented enabled Imerys to resist well in a difficult economic environment. While determined cost control actions continue to prove their effectiveness, this is also the result of the Group's positioning on specialties and of its geographic and sectorial diversification. On this base and with unchanged market conditions, Imerys net income from current operations for the second half of 2013, and consequently for the whole year, should be closer to the previous year's. After the acquisition of PyraMax Ceramics, LLC, a milestone in the Group's development, and the completion of two operations in Asia, Imerys is maintaining a sound financial structure to support its ambitions. Effective since July 1, the organization around four business groups with renewed perimeters opens up new prospects for Imerys."
1 Throughout the present press release, "comparable change" means "change at comparable Group structure and exchange rates".
2 Throughout the present press release, "current operating income" means "operating income before other operating revenue and expenses".
3 Group's share of net income before other operating revenue and expenses, net.
4 Current free operating cash flow: EBITDA after deduction of notional tax, changes in working capital and paid capital expenditure.
5 The weighted average number of outstanding shares was 75,365,106 in the 1st half of 2013 vs. 75,127,597 in the 1st half of 2012.
The global economic slowdown was confirmed in the 1st half of 2013. While growth continued in North America, the prolonged recession in the euro zone continued to weigh on the industry and construction sectors in particular. Expansion slowed down in emerging countries.
Several currencies depreciated significantly against the euro (Japanese yen, Indian rupee, Brazilian real, South African rand), while the euro-dollar rate was almost unchanged from the 1st half of 2012. During the 1st half of 2013, inflationary pressure on factor costs was moderate compared with the same period the previous year.
In line with its development strategy, the Group has carried out several operations since the beginning of 2013 that will enable it to increase its exposure to high-potential markets and extend its geographic presence.
The BOUYER LEROUX group's acquisition project of the Imerys Structure activity (wall and partition bricks, chimney blocks), announced on December 12, 2012, has resulted in consultation with personnel representation bodies, which led to a favorable opinion in the 1st quarter of 2013. In addition, French competition authorities notified their approval for the operation on July 26, 2013. With this final condition precedent met, the legal and financial closing of the transaction can take place in fall 2013. Under the agreements entered into with BOUYER LEROUX, the transaction will be made on a basis defined on May 1, 2013 for an enterprise value equivalent to forecast sales for 2013.
In addition, Imerys has strengthened its operating and managerial organization around four business groups. Their perimeters have been revised to draw maximum benefit from development opportunities in a changing environment. Details of this new structure, effective since July 1, 2013, are given on page 14 of this press release.
The half-year consolidated financial statements as of June 30, 2013 were closed by the Board of Directors at its meeting on July 29, 2013. On July 26, 2013, the French Competition Authority allowed the disposal project of the Imerys Structure activity to the BOUYER LEROUX group. With this final condition precedent met, the legal and financial closing of the transaction can take place in fall 2013.
The economic environment, which has prevailed since mid-2012, is likely to continue in the second half of 2013.
In that context, the Group continues to implement actions to protect its operating margin and its cash flow generation. On this basis and with unchanged market conditions, Imerys net income from current operations for the second half of 2013, and consequently for the whole year, should be closer to the previous year's.
Thanks to a financial situation that remains sound, the Group has the resources needed to continue its development plan in order to take advantage of growth opportunities in a changing environment.
| Non-audited quarterly data |
2013 Revenue (€ millions) |
2012 Revenue (€ millions) |
Change revenue (% previous period) |
Comparable change (% previous period) |
of which Volume effect |
of which Price/Mix effect |
|---|---|---|---|---|---|---|
| st quarter 1 |
929.3 | 974.4 | - 4.6% | - 4.0% | - 5.6% | + 1.6% |
| nd quarter 2 |
951.4 | 1,011.8 | - 6.0% | - 3.8% | - 5.0% | + 1.2% |
| st half 1 |
1,880.7 | 1,986.2 | - 5.3% | - 3.9% | - 5.3% | + 1.4% |
Revenue down - 3.9% on comparable basis in 1st half of 2013
Revenue for the 1st half of 2013 totals €1,880.7 million (- 5.3% vs. same period in 2012). It takes into account:
At comparable Group structure and exchange rates, revenue decreased - 3.9% compared with the 1st half of 2012, which was a high comparison basis.
In the 1st half of 2013, the trend in volumes (- €105.7 million, i.e. - 5.3%) is comparable to the second half of 2012. Sectors related to consumer goods (food, health, beauty, pharma, packaging, energy, etc.) were firm in all regions, whereas European activities related to capital expenditure and construction slumped significantly.
The price/mix component, which is positive in all business groups, increased by +€28.6 million (+ 1.4%) for the Group as a whole in a context of lower inflation.
6 Acquisition announced in November 5, 2012 press release. Goonvean's kaolin activities posted annual revenue of approximately £18 million (€22 million) for the last financial year.
| (€ millions) | Revenue H1 2013 | Change % H1 13 vs. H1 12 |
% consolidated revenue H1 13 |
% consolidated revenue H1 12 |
|---|---|---|---|---|
| Western Europe | 884.2 | - 4.9% | 47% | 47% |
| of which France | 293.0 | - 8.9% | 16% | 16% |
| United States / Canada | 419.3 | - 0.6% | 22% | 21% |
| Emerging countries | 486.6 | - 8.1% | 26% | 27% |
| Other (Japan/ Australia) | 90.6 | - 13.5% | 5% | 5% |
| Total | 1,880.7 | - 5.3% | 100% | 100% |
In the 1st half of 2013, the geographic breakdown of sales is equivalent to that of the 1st half of 2012. The decrease recorded in Europe particularly reflects the downturn in the Building Materials activity in France. In North America, strong consumer goods and construction-related activities offset the decrease in steel-related sales. In the other geographic zones, the trend for the period should be seen in the context of some currencies' substantial depreciation against the euro compared with the same period in the previous year (Japanese yen: - 21%; Indian rupee - 7%; Brazilian real: - 11%; South African rand: - 18%).
| Non-audited quarterly data (€ millions) |
2013 | 2012 | % Change | % Comparable change |
|---|---|---|---|---|
| st quarter 1 |
117.0 | 126.2 | - 7.3% | - 9.1% |
| Operating margin | 12.6% | 12.9% | - 0.3 point | |
| nd quarter 2 |
127.0 | 139.2 | - 8.8% | - 3.7% |
| Operating margin | 13.3% | 13.8% | - 0.5 point | |
| st half 1 |
244.0 | 265.4 | - 8.1% | - 6.3% |
| Operating margin | 13.0% | 13.4% | - 0.4 point |
Current operating income totaled €244.0 million (- 8.1%) in the 1st half of 2013 and takes the following items into account:
At comparable Group structure and exchange rates, the decrease in current operating income (- 6.3%) reflects lower sales volumes (- €53.6 million), partly offset by the effect of fixed costs and general expenses reduction measures (€21.5 million), which continued throughout the 1st half. These efforts concerned, in particular:
However, R&D and innovation efforts were kept up.
The product positive price/mix effect contributes to every business group's income. On the consolidated level, the + €20.7 million increase compared with the 1st half of 2012 should be seen in the context of lower inflation in variable costs (- €1.6 million). Higher energy prices were contained thanks to the Group's hedging, while the price of out sourced raw materials decreased.
In this more difficult economic environment, the 1st half operating margin held out well at 13.0% (13.4% in the 1st half of 2012).
Net income from current operations totaled €155.0 million (€161.0 million in 1st half 2012) and takes the following items into account:
Other operating income and expenses, net of tax, total - €26.3 million for the 1st half of 2013. Their pre-tax amount (- €33.4 million) mainly covers:
After taking other operating revenue and expenses, net of tax, into account, net income, Group's share, totals €128.7 million for the 1st half of 2013 (€157.3 million in 1st half 2012).
| (€ millions) | H1 2013 | 2012 | H1 2012 |
|---|---|---|---|
| EBITDA | 335.8 | 662.5 | 355.1 |
| Change in operating working capital | (23.5) | 15.3 | (36.5) |
| Paid capital expenditure | (119.5) | (257.1) | (116.1) |
| Current free operating cash flow * | 129.0 | 289.4 | 130.5 |
| Financial expense (net of tax) | (20.1) | (49.9) | (28.2) |
| Other working capital items | 5.7 | 62.8 | 29.6 |
| Current free cash flow | 114.6 | 302.3 | 131.9 |
| * including subsidies, value of divested assets and miscellaneous | 4.1 | 4.4 | 2.7 |
At 22.3% of annualized sales for the last quarter(7) , working capital requirement remains under control.
Paid capital expenditure amounts to €119.5 million in the 1st half of 2013. The booked amount (€97.4 million) represents 92% of depreciation expense (vs. 89% in 1 st half 2012). Maintenance and overburden operations were stable compared with the same period in 2012 and the Group's development capital expenditure continued. Details of the main projects are given for each business group.
Consequently, Imerys maintained the same level of free current operating cash flow compared with the same period the previous year, at €129.0 million for the 1st half of 2013.
7 Continuation of factoring contract signed on July 23, 2009 under which transferred receivables are deconsolidated, with the risks and benefits related to receivables transferred to the factor bank. €70 million in receivables was factored as on June 30, 2013.
| (€ millions) | June 30, 2013 | December 31, 2012 | June 30, 2012 |
|---|---|---|---|
| Paid dividends | (117.5) | (114.1) | (113.3) |
| Net debt, end of period | 1,054.5 | 874.8 | 1,039.8 |
| Average net debt of the period | 984.0 | 1,009.0 | 1,077.0 |
| Shareholders' equity | 2,287.6 | 2,261.0 | 2,222.3 |
| EBITDA | 335.8 | 662.5 | 355.1 |
| Net debt / shareholders' equity | 46.1% | 38.7% | 46.8% |
| Net debt / EBITDA(8) | 1.6x | 1.3x | 1.5x |
After the payment of €117.5 million in dividends, the acquisition of PyraMax Ceramics, LLC (first payment made on April 10, 2013 for \$US 152 million; second payment planned in August 2013 for approx. \$US 55 million) and the two acquisitions completed by Calderys (Arefcon b.v. and Indoporlen), the Group's net financial debt totals €1.055 billion as on June 30, 2013 (€1.040 billion as on June 30, 2012). Imerys' financial debt ratios remain sound and are comparable to their June 30, 2012 levels, as is net financial debt: net debt represents 46.1% of shareholders' equity and 1.6x EBITDA.
As regards financing, Imerys' total financial resources amount to €2.9 billion (of which €1.5 billion in available financial resources, excluding cash in bank) as of June 30, 2013. Over the past 24 months, total financial resources were increased and diversified and their average maturity extended: more than €850 million in additional bilateral credit facilities has been secured. These financial resources enable the Group to cover 2013 repayments (redemption of US\$ 140 million bond) and the end of its €750 million, syndicated credit in July 2013. Excluding repayments in 2013 and cash, available financial resources total approx. €650 million with an average maturity of 3.3 years.
Furthermore, on April 22, 2013, the rating agency Moody's confirmed the long-term credit rating assigned to Imerys in 2011, "Baa2" with a stable outlook. The short-term rating is "P-2", also with a stable outlook, was also reaffirmed.
Imerys can therefore rely on a sound financial situation for the implementation of its development plan.
8 EBITDA on 12 sliding months.
(30% of consolidated revenue)
| (€ millions) | 2013 | 2012 | Current change |
Comparable change |
|---|---|---|---|---|
| st quarter revenue 1 |
273.7 | 297.8 | - 8.1% | - 6.7% |
| nd quarter revenue 2 |
297.4 | 323.3 | - 8.0% | - 6.5% |
| st half revenue 1 |
571.1 | 621.1 | - 8.0% | - 6.6% |
| Current operating income | 58.1 | 81.6 | - 28.8% | - 28.1% |
| Operating margin | 10.2% | 13.1% | ||
| Booked capital expenditure | 50.2 | 40.6 | + 23.6% | |
| As % of depreciation expense | 166% | 135% |
Business in Minerals for Refractories, Fused Minerals and some Graphite & Carbon segments was hit by the slump in European industrial output and by lower steel production (- 5.1% for the first 6 months of 2013 vs. the same period the previous year – source: World Steel Association). While the industrial output trend was healthier in North America, steel production fell - 5.8% over the same period. The slowdown in China also weighed on the Fused Minerals activity.
Activity remained satisfactory in Mineral for Ceramics, thanks to the recent geographic and technical developments, and demand for Oilfield Minerals gradually recovered in the United States in the 1st half of 2013.
Revenue, at €571.1 million for the 1st half of 2013, fell - 8.0% compared with the 1st half of 2012. This decrease includes a negative exchange rate effect for - €8.6 million; the structure effect is negligible (- €0.4 million).
At comparable Group structure and exchange rates, the decrease was - 6.6% and resulted from lower volumes. The product price/mix component was positive overall but remains impacted by lower zircon prices in China (Fused Minerals).
Current operating income, totaling €58.1 million, takes into account an exchange rate impact of - €0.5 million.
At comparable Group structure and exchange rates, the contraction in income reflects the significant decrease in the sales volumes that make the highest contributions. This contraction was partly offset by the decrease in fixed costs. In addition, the business group's current operating income includes the launch of the new Oilfield Solutions division and the consolidation of PyraMax Ceramics, LLC as of April 10, 2013.
Consequently, the operating margin worked out at 10.2% (13.1% in 1st half 2012).
Capital expenditure continued for projects begun in 2012, particularly in carbon (capacity doubled at the Willebroek, Belgium plant), fused alumina (new plant in Bahrain) and proppants (construction of Wrens plant, Georgia, United States).
(24% of consolidated revenue)
| (€ millions) | 2013 | 2012 | Current change |
Comparable change |
|---|---|---|---|---|
| st quarter revenue 1 |
223.6 | 221.7 | + 0.8% | + 1.2% |
| nd quarter revenue 2 |
240.2 | 233.3 | + 3.0% | + 4.5% |
| st half revenue 1 |
463.8 | 455.0 | + 1.9% | + 2.9% |
| Current operating income | 73.9 | 60.7 | + 21.9% | + 24.9% |
| Operating margin | 15.9% | 13.3% | ||
| Booked capital expenditure | 14.6 | 14.6 | n.s. | |
| As % of depreciation expense | 55% | 53% |
Since the start of 2013, consumer goods markets (food, health, etc.) have enjoyed firm demand in North America, where intermediate industries (plastics, paint, rubber, catalysis, etc.) benefitted from the dynamic construction sector. Activity remained firm in emerging zones. In Europe, a resilient consumer goods sector and growth in talc sales in the automotive industries (additives for polymer plastics) partly made up for the slump in industrial equipment and construction.
At €463.8 million in the 1st half of 2013, revenue rose + 1.9% compared with the 1st half of 2012. This increase takes the following items into account:
At comparable structure and exchange rates, revenue grew + 2.9%.
Current operating income, at €73.9 million, rose + €13.3 million. It takes into account an unfavorable exchange rate impact of - €2.1 million and a limited structure effect (+ €0.3 million). At comparable Group structure and exchange rates, the increase was + 24.9%, thanks to a substantial volume contribution and an improvement in operating efficiency. The increase in the product price/mix component was higher than the rise in variable costs.
The operating margin improved significantly (+ 2.6 points) to 15.9%.
Capital expenditure was kept up in the 1st half of 2013.
(22% of consolidated revenue)
| (€ millions) | 2013 | 2012 | Current change |
Comparable change |
|---|---|---|---|---|
| st quarter revenue 1 |
206.2 | 213.2 | - 3.3% | - 1.2% |
| nd quarter revenue 2 |
206.9 | 216.3 | - 4.3% | - 2.4% |
| st half revenue 1 |
413.1 | 429.5 | - 3.8% | - 1.8% |
| Current operating income | 41.7 | 42.5 | - 1.9% | - 5.0% |
| Operating margin | 10.1% | 9.9% | ||
| Booked capital expenditure | 24.3 | 32.1 | - 24.3% | |
| As % of depreciation expense | 71% | 90% |
In the 1st half of 2013, printing and writing paper production grew further in emerging countries (+ 4.0% - RISI and Imerys estimates), while the structural contraction in mature countries (- 3.8%) continued, with consequences in terms of capacity rationalization. Demand for specialty papers and for packaging applications remained healthy.
Revenue for the 1st half of 2013, at €413.1 million, decreased - 3.8% compared with the 1st half of 2012. Excluding the exchange rate effect (- €8.5 million, i.e. - 2.0%), the decrease was less substantial (- 1.8%) due to the positive contribution of the product price/mix and a limited drop in volumes.
Current operating income, at €41.7 million, was stable compared with the 1st half of 2012. It takes into account a favorable exchange rate effect of + €1.4 million. At comparable Group structure and exchange rates, the decrease in the business group's income (- 5.0%) reflects the lower contribution of sales volumes. The price/mix component offset the rise in variable costs.
Consequently, the operating margin improved to 10.1% (9.9% in 1st half 2012).
The Pigments for Paper & Packaging business group continues to commit capital expenditure selectively. The new lime production unit (Brazil) should come on stream towards the end of 2013 as planned.
(24% of consolidated revenue)
| (€ millions) | 2013 | 2012 | Current change |
Comparable change |
|---|---|---|---|---|
| st quarter revenue 1 |
230.6 | 255.9 | - 9.9% | - 9.0% |
| nd quarter revenue 2 |
214.2 | 253.2 | - 15.4% | - 9.5% |
| st half revenue 1 |
444.8 | 509.1 | - 12.6% | - 9.2% |
| Current operating income | 91.2 | 105.1 | - 13.3% | - 9.9% |
| Operating margin | 20.5% | 20.7% | ||
| Booked capital expenditure | 4.7 | 5.8 | - 19.0% | |
| As % of depreciation expense | 35% | 37% |
In the Refractory Solutions activity (57% of the business group's revenue), the downturn in European steel production and other high-temperature industries (power generation, incineration, casting, cement, petrochemicals, etc.) and a significant slowdown in new project starts affected the business in the 1st half of 2013.
The diversification of Monolithic Refractories' sectorial and geographic presence continued with the acquisition of a 70% interest in Indoporlen, the leading Indonesian manufacturer and installer of a full range of refractory products (bricks, monolithics, prefabricated shapes). This transaction was completed on June 3, 2013 for €15 million. With revenue close to €15 million in 2012, the company has strong positions in the metal conversion and steel segments. Indoporlen can draw on Calderys' know-how and offering to diversify its presence in new, growing sectors (petrochemicals, etc.).
At the start of the second half, Calderys acquired Tokai Ceramics, a renowned Japanese producer of monolithic refractories with 2012 revenue of approximately €7 million. Tokai Ceramics' products are intended for the foundry, reheating furnace and electric arc furnace industries, a positioning that is a good fit with Calderys Japan's. This transaction, closed on July 1, 2013, will enable the new business combination to broaden its customer base and optimize its supply conditions.
These operations are in addition to the acquisition of Arefcon b.v., a Dutch company specialized in refractory fitting for the petrochemicals industry, in January 2013.
In Building Materials in France, new single and grouped single-family housing starts over 12 sliding months reached their lowest point for the past 15 years (approx. 160,000 units launched according to the ministry of the ecology, sustainable development and energy; - 9% vs. 12 sliding months ending May 2012, 2013). No turnaround has been seen in the historically low sales of new single-family housing. In that context, and despite adverse weather conditions, sales of clay roof tiles recorded a lower downturn (- 8 % on 12 sliding months ending June 2013 – source: FFTB, French roof tiles & bricks federation estimates) due to resilient activity in renovation.
The BOUYER LEROUX group's acquisition project of the Imerys Structure activity (wall and partition bricks, chimney blocks), announced on December 12, 2012, has resulted in consultation with personnel representation bodies, which led to a favorable opinion in the 1st quarter of 2013. In addition, French competition authorities notified their approval for the operation on July 26, 2013. With this final condition precedent met, the legal and financial closing of the transaction can take place in fall 2013.
Under the agreements entered into with BOUYER LEROUX, the transaction will be made on a basis defined on May 1, 2013 for an enterprise value equivalent to forecast sales for 2013.
At €444.8 million, the business group's revenue (- 12.6% vs. 1st half 2012) takes into account:
At comparable Group structure and exchange rates, the decrease in revenue (- 9.2%) reflects the impact of sales volumes in both of the business group's activities, which was partly offset by an improved product price/mix component.
Materials & Monolithics' current operating income totaled €91.2 million, including:
At comparable structure and exchange rates, the decrease in current operating income is - 9.9%. Ardoisières d'Angers' (French Roofing Slates activity) difficulties in a slumping market weighed on the business group's profitability. Thanks to a positive price/mix effect and the measures taken by the business group to control costs, the operating margin, at 20.5%, was comparable to the first half of last year's.
In the 1st half of 2013, the business group's capital expenditure focused on the maintenance of industrial assets.
Imerys strengthened its operating and management organization around four business groups. Their perimeters were revised to draw maximum benefit from development opportunities in a changing environment. This configuration will enable the Group to create new synergies, for example in terms of technical or industrial aspects, mineral resources management, business logic and geographic development.
Consequently, as of July 1, 2013, Imerys is organized into four operating business groups as described below:
Frédéric Beucher and Alessandro Dazza, who were until now in charge of the Minerals for Ceramics and Fused Minerals divisions, are promoted to business group heads and join the Executive Committee. In addition, Deputy CEO Christian Schenck, who has voiced the wish to withdraw from his operating responsibilities after 36 years' activity in the Imerys Group, becomes Advisor to the Chairman & CEO.
The breakdown of 2012 revenue by business group and division in the new organization, effective since July 1, 2013, is shown below (non-audited data):
The quarterly financial information for the first nine months of the current year will be published on October 30, 2013 and presented under the new organization. The historical financial data for the past two years (revenue, income, capital employed) will be restated and disclosed on that occasion.
| October 30 | 3rd quarter 2013 results |
|---|---|
| ------------ | -------------------------- |
This date is given for guidance only and may be updated on the Group's website at www.imerys.com in the Investors & Analysts / Financial Agenda section.
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The press release is available from the Group's website www.imerys.com with access via the homepage in the "News" section.
Imerys is holding today, at 9:30am (Paris time), a conference call during which the 1st half 2013 results will be commented on. The call will be webcast live on the Group's website www.imerys.com.
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The world leader in mineral-based specialty solutions for industry, with €3.9 billion revenue and 16,000 employees in 2012, Imerys transforms a unique range of minerals to deliver essential functions (heat resistance, mechanical strength, conductivity, coverage, barrier effect, etc.) that are essential to its customers' products and manufacturing processes.
Whether mineral components, functional additives, process enablers or finished products, Imerys' solutions contribute to the quality of a great number of applications in consumer goods, industrial equipment or construction. Combining expertise, creativity and attentiveness to customers' needs, the Group's international teams constantly identify new applications and develop high value-added solutions under a determined approach to responsible development. These strengths enable Imerys to develop through a sound, profitable business model.
More comprehensive information about Imerys may be obtained from its website (www.imerys.com) under Regulated Information, particularly in its Registration Document filed with the Autorité des marchés financiers on March 21, 2013 under number D.13-0195 (also available from the Autorité des marchés financiers website, www.amf-france.org). Imerys draws the attention of investors to chapter 4, "Risk Factors", of its Registration Document.
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Warning on projections and forward-looking statements: This document contains projections and other forward-looking statements. Investors are cautioned 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.
| Analyst/Investor Relations: | Press Contacts: |
|---|---|
| Pascale Arnaud +33 (0)1 4955 6401 | Pascale Arnaud +33 (0)1 4955 6401 |
| [email protected] | Raphaël Leclerc +33 (0)6 7316 8806 |
| Comparable quarterly change 2013 vs 2012 | Q1 2013 | Q2 2013 | ||
|---|---|---|---|---|
| - 4.0% | - 3.8% | |||
| Reminder 2012 vs 2011 | Q1 2012 | Q2 2012 | Q3 2012 | Q4 2012 |
| + 0.2% | - 3.1% | - 2.8% | - 2.7% |
| Revenue by business group (€ millions) |
Q1 2013 |
Q1 2012 |
change % |
Group structure % |
Exchange rate % |
Comp. change % |
|---|---|---|---|---|---|---|
| Minerals for Ceramics, Refractories, Abrasives & Foundry |
273.7 | 297.8 | - 8.1% | - | - 1.4% | - 6.7% |
| Performance & Filtration Minerals | 223.6 | 221.7 | + 0.8% | + 0.8% | - 1.2% | + 1.2% |
| Pigments for Paper & Packaging | 206.2 | 213.2 | - 3.3% | - | - 2.1% | - 1.2% |
| Materials & Monolithics | 230.6 | 255.9 | - 9.9% | + 0.2% | - 1.1% | - 9.0% |
| Holdings & Eliminations | (4.9) | (14.3) | n.s. | n.s. | n.s. | n.s. |
| Total | 929.3 | 974.4 | - 4.6% | + 0.8% | - 1.5% | - 4.0% |
| Revenue by business group (€ millions) |
Q2 2013 |
Q2 2012 |
change % |
Group structure % |
Exchange rate % |
Comp. change % |
|---|---|---|---|---|---|---|
| Minerals for Ceramics, Refractories, Abrasives & Foundry |
297.4 | 323.3 | - 8.0% | - 0.2% | - 1.4% | - 6.5% |
| Performance & Filtration Minerals | 240.2 | 233.3 | + 3.0% | + 0.7% | - 2.2% | + 4.5% |
| Pigments for Paper & Packaging | 206.9 | 216.3 | - 4.3% | - | - 1.9% | - 2.4% |
| Materials & Monolithics | 214.2 | 253.2 | - 15.4% | - 5.0% | - 0.9% | - 9.5% |
| Holdings & Eliminations | (7.3) | (14.3) | n.s. | n.s. | n.s. | n.s. |
| Total | 951.4 | 1,011.8 | - 6.0% | - 0.7% | - 1.5% | - 3.8% |
| Revenue by business group (€ millions) |
H1 2013 | H1 2012 | change % |
Group structure % |
Exchange rate % |
Comp. change % |
|---|---|---|---|---|---|---|
| Minerals for Ceramics, Refractories, Abrasives & Foundry |
571.1 | 621.1 | - 8.0% | - 0.1% | - 1.4% | - 6.6% |
| Performance & Filtration Minerals | 463.8 | 455.0 | + 1.9% | + 0.8% | - 1.7% | + 2.9% |
| Pigments for Paper & Packaging | 413.1 | 429.5 | - 3.8% | - | - 2.0% | - 1.8% |
| Materials & Monolithics | 444.8 | 509.1 | - 12.6% | - 2.4% | - 1.0% | - 9.2% |
| Holdings & Eliminations | (12.1) | (28.5) | n.s. | n.s. | n.s. | n.s. |
| Total | 1,880.7 | 1,986.2 | - 5.3% | + 0.1% | - 1.5% | - 3.9% |
| Sales by business group | H1 2013 | H1 2012 |
|---|---|---|
| Minerals for Ceramics, Refractories, Abrasives & Foundry | 30% | 30% |
| Performance & Filtration Minerals | 24% | 23% |
| Pigments for Paper & Packaging | 22% | 21% |
| Materials & Monolithics | 24% | 26% |
| Total | 100% | 100% |
Imerys is applying in 2013 standard IAS 19 Revised on employee benefits. 2012 comparative information has been restated.
In 2012, this change in accounting method mainly impacts the Group through the transfer of €10.3 million of financial income from profit or loss to equity. Indeed, the notion of expected return used by the former standard to measure the income generated by plan assets on the basis of management's best estimate, is replaced in the revised standard by a normative return equal to the discount rate of the obligation (Corporate AA) irrespective of the investment strategy. The excess of the actual return over that normative return is immediately credited to equity without subsequent reclassification to profit or loss.
Furthermore, Imerys has established in 2013 that the documentation of the tax bases of some items of property, plant and equipment acquired in the United States as part of business combinations prior to January 1, 2004 was incomplete. As a consequence, as the opening financial statements of the concerned American entities were prepared, erroneous deferred tax assets and liabilities were calculated, mainly for items of property, plant and equipment. These tax bases were already in use before the acquisition by Imerys. If Imerys had been aware of the actual tax bases from the beginning, the greater part of the deferred tax assets and liabilities of these entities would have been adjusted against the goodwill of the Performance Minerals North America cash generating unit. However since this goodwill was fully impaired in 2008 for an amount of €51.6 million, the correction of error recognized in 2013 impacts consolidated equity as of January 1, 2012.
| (in € millions) | 2012 published |
Restatement | 2012 restated |
|---|---|---|---|
| IMPACTS ON INCOME STATEMENT | |||
| Revenue from ordinary activities | 3,884.8 | 3,884.8 | |
| Current operating income (expense) | 490.1 | (2.0) | 488.1 |
| Current financial income | (58.7) | (10.4) | (69.1) |
| Current tax | (119.5) | 2.9 | (116.6) |
| Minorities | (1.7) | (1.7) | |
| Net income from current operations | 310.2 | (9.5) | 300.7 |
| Other revenue and expenses, net | (9.4) | (9.4) | |
| Net income | 300.8 | (9.5) | 291.3 |
| IMPACTS ON CONSOLIDATED FINANCIAL POSITION | |||
| Assets | |||
| Deferred tax assets | 74.1 | (10.1) | 64.0 |
| Liabilities | |||
| Shareholders' equity (including income) | 2,274.5 | (13.5) | 2,261.0 |
| Provisions for personnel benefits | 314.0 | 3.4 | 317.4 |
Restatements are shown in the table below:
| (€ millions) | Q1 2013 | Q1 2012 (restated) |
change | Q1 2012 (published) |
|---|---|---|---|---|
| Revenue | 929.3 | 974.4 | - 4.6% | 974.4 |
| Current operating income | 117.0 | 126.2 | - 7.3% | 126.8 |
| Current financial income (expense) | (15.8) | (19.0) | (16.5) | |
| Current taxes | (28.3) | (30.0) | (30.8) | |
| Minority interests | (0.3) | (0.7) | (0.7) | |
| Net income from current operations (1) | 72.5 | 76.4 | - 5.1% | 78.8 |
| Other operating income and expenses, net | (2.5) | (2.8) | (2.8) | |
| Net income (1) | 70.1 | 73.6 | n.s. | 76.0 |
| (€ millions) | Q2 2013 | Q2 2012 (restated) |
change | Q2 2012 (published) |
|---|---|---|---|---|
| Revenue | 951.4 | 1,011.8 | - 6.0% | 1,011.8 |
| Current operating income | 127.0 | 139.2 | - 8.8% | 139.5 |
| Current financial income (expense) | (12.0) | (20.2) | (17.6) | |
| Current taxes | (31.8) | (33.7) | (34.3) | |
| Minority interests | (0.8) | (0.8) | (0.8) | |
| Net income from current operations (1) | 82.5 | 84.6 | - 2.7% | 86.8 |
| Other operating income and expenses, net | (23.8) | (0.9) | (0.9) | |
| Net income (1) | 58.6 | 83.7 | n.s. | 85.9 |
| (€ millions) | H1 2013 | H1 2012 (restated) |
change | H1 2012 (published) |
|---|---|---|---|---|
| Revenue | 1,880.7 | 1,986.2 | - 5.3% | 1,986.2 |
| Current operating income | 244.0 | 265.4 | - 8.1% | 266.2 |
| Current financial income (expense) | (27.8) | (39.2) | (34.0) | |
| Current taxes | (60.1) | (63.7) | (65.1) | |
| Minority interests | (1.1) | (1.5) | (1.5) | |
| Net income from current operations (1) | 155.0 | 161.0 | - 3.7% | 165.6 |
| Other operating income and expenses, net | (26.3) | (3.7) | (3.7) | |
| Net income (1) | 128.7 | 157.3 | n.s. | 161.9 |
(1) Group's share.
The Board of Directors met on July 29, 2013 to close the financial statements for the six months ending on June 30, 2013.
Audit procedures have been carried out and the audit reports are included in the first-half financial report available on the Internet site www.imerys.com (Finance section/ Regulated Information / Périodic Information) or by request (e-mail : [email protected], tel. : + 33 (0)1 49 55 64 01).
| (€ millions) | 06.30.2013 | 06.30.2012 | 2012 |
|---|---|---|---|
| Restated | Restated | ||
| Revenue | 1,880.7 | 1,986.2 | 3,884.8 |
| Current income and expenses | (1,636.7) | (1,720.8) | (3,396.7) |
| Raw materials and consumables used | (651.3) | (697.6) | (1,377.0) |
| External expenses | (495.0) | (513.8) | (1,010.5) |
| Staff expenses (1) | (385.5) | (392.7) | (790.8) |
| Taxes and duties | (25.2) | (26.5) | (51.6) |
| Amortization, depreciation and impairment losses | (105.5) | (109.6) | (214.7) |
| Other current income and expenses | 23.6 | 16.3 | 44.5 |
| Share in net income of joint ventures and associates | 2.2 | 3.1 | 3.4 |
| Current operating income | 244.0 | 265.4 | 488.1 |
| Other operating income and expenses | (33.4) | (11.9) | (9.4) |
| Gain or loss from obtaining or losing control | (3.7) | (3.4) | (8.9) |
| Other non-recurring items | (29.7) | (8.5) | (0.5) |
| Operating income | 210.6 | 253.5 | 478.7 |
| Net financial debt expense | (25.4) | (29.2) | (57.2) |
| Income from securities | 0.2 | 1.4 | 2.0 |
| Gross financial debt expense | (25.6) | (30.6) | (59.2) |
| Other financial income and expenses | (2.4) | (10.0) | (11.9) |
| Other financial income (1) | 96.9 | 65.4 | 124.1 |
| Other financial expenses (1) | (99.3) | (75.4) | (136.0) |
| Financial income (loss) | (27.8) | (39.2) | (69.1) |
| Income taxes (1) | (53.0) | (55.5) | (116.6) |
| Net income | 129.8 | 158.8 | 293.0 |
| Net income, Group share (2) & (3) | 128.7 | 157.3 | 291.3 |
| Net income, share of non-controlling interests | 1.1 | 1.5 | 1.7 |
| (1) After change in accounting policy on employee benefits (2) Net income per share |
|||
| Basic net income per share (in €) | 1.71 | 2.09 | 3.88 |
| Diluted net income per share (in €) | 1.69 | 2.07 | 3.84 |
| (3) Net income from current operations, Group share | 155.0 | 161.0 | 300.7 |
| Basic net income from current operations per share (in €) Diluted net income from current operations per share (in €) |
2.06 2.03 |
2.14 2.12 |
4.00 3.97 |
| Other net operating income and expenses, Group share | (26.3) | (3.7) | (9.4) |
| (€ millions) | 06.30.2013 | 06.30.2012 | 2012 | 01.01.2012 |
|---|---|---|---|---|
| Non-current assets | 3,300.3 | Restated 3,251.2 |
Restated 3,202.0 |
Restated 3,199.9 |
| Goodwill | 1,098.1 | 1,039.2 | 1,003.0 | 1,019.7 |
| Intangible assets | 65.5 | 42.9 | 48.0 | 37.7 |
| Mining assets | 459.9 | 504.3 | 493.4 | 502.9 |
| Property, plant and equipment | 1,456.0 | 1,384.4 | 1,408.2 | 1,384.1 |
| Joint ventures and associates | 83.0 | 84.1 | 82.9 | 82.4 |
| Available-for-sale financial assets | 4.6 | 4.8 | 4.5 | 4.8 |
| Other financial assets (1) | 20.3 | 20.6 | 20.4 | 18.5 |
| Other receivables | 56.1 | 77.7 | 68.0 | 74.6 |
| Derivative financial assets | 6.4 | 14.0 | 9.6 | 12.7 |
| Deferred tax assets (1) & (2) | 50.4 | 79.2 | 64.0 | 62.5 |
| Current assets | 1,808.3 | 1,758.5 | 1,619.6 | 1,746.4 |
| Inventories | 637.5 | 676.4 | 651.1 | 645.9 |
| Trade receivables | 575.2 | 600.1 | 513.8 | 526.9 |
| Other receivables | 198.0 | 140.3 | 134.3 | 141.0 |
| Derivative financial assets | 0.9 | 1.3 | 2.0 | 2.0 |
| Other financial assets | 65.4 | 23.3 | 57.8 | 6.4 |
| Cash and cash equivalents | 331.3 | 317.1 | 260.6 | 424.2 |
| Assets held for sale | 97.0 | - | - | - |
| Consolidated assets | 5,205.6 | 5,009.7 | 4,821.6 | 4,946.3 |
| Equity, Group share | 2,260.0 | 2,191.1 | 2,237.0 | 2,166.5 |
| Capital | 151.2 | 150.5 | 150.7 | 150.3 |
| Premiums Reserves (1) & (2) |
333.4 1,646.7 |
322.0 1,561.3 |
326.2 1,468.8 |
319.6 1,414.6 |
| Net income, Group share (1) | 128.7 | 157.3 | 291.3 | 282.0 |
| Equity, share of non-controlling interests (1) | 27.6 | 31.2 | 24.0 | 30.8 |
| Equity | 2,287.6 | 2,222.3 | 2,261.0 | 2,197.3 |
| Non-current liabilities | 1,682.8 | 1,714.2 | 1,684.9 | 1,644.7 |
| Employee benefits liabilities (1) | ||||
| Other provisions | 217.3 232.3 |
303.2 266.7 |
317.4 246.4 |
234.8 265.2 |
| Loans and financial debts | 1,009.2 | 1,032.4 | 1,011.0 | 1,028.4 |
| Other debts | 136.2 | 11.8 | 14.8 | 12.2 |
| Derivative financial liabilities | 1.7 | 6.7 | 3.4 | 9.1 |
| Deferred tax liabilities | 86.1 | 93.4 | 91.9 | 95.0 |
| Current liabilities | 1,191.7 | 1,073.2 | 875.7 | 1,104.3 |
| Other provisions | 17.4 | 20.3 | 15.7 | 19.2 |
| Trade payables | 412.6 | 422.9 | 375.2 | 360.0 |
| Income taxes payable | 44.8 | 24.4 | 21.4 | 9.7 |
| Other debts | 262.1 | 240.8 | 272.9 | 261.7 |
| Derivative financial liabilities | 8.7 | 9.0 | 3.7 | 19.0 |
| Loans and financial debts | 436.1 | 348.2 | 167.5 | 422.0 |
| Bank overdrafts | 10.0 | 7.6 | 19.3 | 12.7 |
| Liabilities related to assets held for sale | 43.5 | - | - | - |
| Consolidated equity and liabilities | 5,205.6 | 5,009.7 | 4,821.6 | 4,946.3 |
(1) After change in accounting policy on employee benefits.
(2) After correction of error on the tax bases of property, plant and equipment in the United States.
In addition to the table presented below, analyses on the change in the net financial debt:
is disclosed in Note 20 to the Condensed financial statements, Chapter 3 of the First-Half Financial Report 2013.
| (€ millions) | 06.30.2013 | 06.30.2012 | 2012 |
|---|---|---|---|
| Restated | Restated | ||
| Cash flow from operating activities | 180.9 | 210.9 | 474.5 |
| Cash flow generated by current operations (1) | 311.2 | 293.5 | 663.9 |
| Interests paid | (46.0) | (49.3) | (59.9) |
| Income taxes on current operating income and financial income (loss) | (62.5) | (28.9) | (74.2) |
| Dividends received from available-for-sale financial assets | 0.2 | - | (0.6) |
| Cash flow generated by other operating income and expenses | (22.0) | (4.4) | (54.7) |
| Cash flow from investing activities | (242.4) | (125.8) | (211.2) |
| Acquisitions of intangible assets and property, plant and equipment | (119.5) | (116.1) | (257.0) |
| Acquisitions of investments in consolidated entities after deduction of cash acquired | (127.0) | (13.0) | (38.9) |
| Disposals of intangible assets and property, plant and equipment | 5.2 | 7.0 | 86.2 |
| Disposals of investments in consolidated entities after deduction of cash disposed of | 0.5 | - | - |
| Disposals of available-for-sale financial assets | - | - | 0.2 |
| Net change in financial assets | (1.7) | (4.7) | (3.2) |
| Paid-in interests | 0.1 | 1.0 | 1.5 |
| Cash flow from financing activities | 149.6 | (191.1) | (430.5) |
| Capital increases | 10.3 | 3.5 | 7.9 |
| Disposals (acquisitions) of treasury shares | (0.9) | (0.4) | (7.1) |
| Dividends paid to shareholders | (116.9) | (112.8) | (112.8) |
| Dividends paid to non-controlling interests | (0.6) | (0.5) | (1.3) |
| Acquisitions of investments in consolidated entities from non-controlling interests | (3.6) | (4.2) | (4.7) |
| Loan issues | 194.9 | 4.0 | 1.0 |
| Loan repayments | (23.8) | (77.5) | (280.3) |
| Net change in other debts | 90.2 | (3.2) | (33.2) |
| Change in cash and cash equivalents | 88.1 | (106.0) | (167.2) |
| (€ millions) | 06.30.2013 | 06.30.2012 | 2012 |
| Opening cash and cash equivalents | 241.3 | 411.5 | 411.5 |
| Change in cash and cash equivalents | 88.1 | (106.0) | (167.2) |
| Impact of changes due to exchange rate fluctuations | (8.1) | 4.0 | (3.0) |
| Closing cash and cash equivalents | 321.3 | 309.5 | 241.3 |
| Cash (2) | 219.1 | 237.5 | 200.5 |
| Cash equivalents (3) | 112.2 | 79.6 | 60.1 |
| Bank overdrafts | (10.0) | (7.6) | (19.3) |
(1) After change in accounting policy on employee benefits.
(2) As of June 30, 2012, cash comprises a balance of €6.6 million not available for Imerys SA and its subsidiaries (€3.6 million as of June 30, 2012 and €6.9 million as of December 31, 2012), of which €1.5 million with respect to foreign exchange control legislations (€1.1 million as of June 30, 2012 and €1.8 million as of December 31, 2012) and €5.1 million with respect to statutory requirements (€2.5 million as of June 30, 2012 and €5.1 million as of December 31, 2012).
(3) Cash equivalents are investments with a maturity below three months from their acquisition date, indexed on a monetary market rate and that may be disposed of at any time.
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