Imerys Announces 2009 Results
By Imerys, PRNESunday, February 14, 2010
PARIS, February 15, 2010 -
- Sales down - 20% and current operating income - 55% - Effectiveness of action plans launched from end 2008: - Substantial reduction in fixed costs and overheads: - EUR158 million - High current free operating cash flow: EUR450 million - Net financial debt decreased - 38 % at EUR964 million - Operating margin 9.0% for full-year 2009, 9.9% in 2nd half - Proposed dividend: stable at EUR1.00 per share
The Board of Directors of Imerys, meeting today under the
chairmanship of Aimery Langlois-Meurinne, examined the definitive financial
statements for 2009, as presented by Chief Executive Officer Gerard Buffiere.
The financial statements will be submitted for approval at the Annual General
Meeting on April 29, 2010.
Consolidated results 2009 2008(6) % current (EURmillions) change Sales 2 773.7 3 449.2 - 19.6% Current operating income(1) 248.9 414.6 - 40.0% Operating margin 9.0% 12.0% - 3.0 points Net current income, Group's share(2) 119.3 267.1 - 55.3% Net income, Group's share 41.3 161.3 n.s. Financing Current operating cash flow(3) 347.1 462.8 - 25.1% Current free operating cash 450.3 257.8 + 74.6% flow(4) Booked capital expenditure 118.7 238.1 - 50.5% Shareholders' equity 1 855.8 1 546.3 + 20.3% Net financial debt 964.3 1 566.1 - 38.4% Date per share (euros) Net income from current operations, Group's share(2)(5) EUR1.66 EUR3.96 - 58.3% Proposed dividend EUR1.00 EUR1.00 Stable
(1) Operating income before other operating revenue and expenses.
(2) Group's share of net income, before other operating revenue
and expenses, net.
(3) EBITDA minus notional tax on current operating income.
(4) Current operating cash flow after changes in working capital
(including EUR83 million in factoring) and paid capital expenditure.
(5) The weighted average number of outstanding shares (adjusted
following the capital increase of June 2, 2009) was 72,054,523 in 2009
compared with 67,486,365 in 2008.
(6) 2008 results were reprocessed following the two presentation
changes applied as on January 1, 2009, details of which are given in
appendix hereto.
CEO Gerard Buffiere stated: "The unprecedented scope of the
economic crisis the world has been going through since late 2008 led us to
take difficult measures to adapt our production assets to the collapse of our
sales volumes. The results of the actions have exceeded our expectations and
I want to thank all our teams for the work done. In extreme market
conditions, Imerys proved its responsiveness and the soundness of its
business model, which enable it to forecast a return to a double-digit
operating margin and to draw on a stronger balance sheet. Thanks to those
foundations, we will benefit fully from the recovery of growth."
ECONOMIC ENVIRONMENT
- Unprecedented economic downturn in 2009 - Slow recovery towards end of year
The second half of 2009 shows a slow improvement in the
Group's markets after the sharp fall recorded since November 2008. The
inventory reduction trend, which had intensified the slump in industrial
output in mature countries, slowed down in the second half; some industries
benefited from an early inventory rebuilding by their customers towards the
end of the year. Business remained firm in emerging countries, which
represent 24% of the Group's outlets.
The slowdown in investment and capital goods consumption
weighed on industrial markets; steel production in Europe and North America
(29% of global steel) slumped - 26% in 2009. In the last few months of 2009,
the decrease was only - 15% from the healthy levels recorded in the 3rd
quarter of 2008 on both zones, signaling the gradual end of inventory
reduction.
Global production of printing and writing paper, driven by the
demand from emerging economies, is still affected by the downturn in
advertising and the continued restructuring intended to reduce overcapacities
in Europe and North America. In 2009, it decreased - 11%.
In France, the number of single-family housing starts fell
approximately - 20% in 2009. The end of the year, however, shows a downward
trend in the number of permits granted. Roofing renovation is holding out
better. In North America, housing starts remain at historically low levels.
After an inventory reduction period, fast-moving consumer good
sectors returned to late 2008 levels.
EFFECTIVENESS OF ACTION PLANS
- Substantial reduction in fixed costs and overheads: - EUR158 million - High current free operating cash flow: EUR450 million (of which EUR83 million factoring) - Net debt below 1 billion euros
From 2008, Imerys made free cash flow generation its priority
and undertook action plans to cope with the swift downturn in the global
economic climate. These efforts were stepped up in 2009, with results that
exceeded the Group's expectations:
- inventory was reduced by - EUR171 million and working capital represents, on a comparable basis (excluding factoring) 24.9% of annualized sales for the fourth quarter of 2009; - industrial assets were adjusted to demand; fixed production costs and overheads fell by - EUR157.8 million, (the cash portion for fixed production expenses and overheads being reduced by - 15%). The operating margin amounted to 9.0% (vs. 12% in 2008), whereas volumes fell - 23.8%; - booked capital expenditure was down - 50% to EUR118.7 million, mainly with respect to maintenance operations.
Imerys achieved exceptionally high current free operating cash
flow of EUR450.3 million, compared with EUR257.8 million in 2008, making
substantial organic debt reduction possible. As on December 31, 2009, net
financial debt was below EUR1 billion at EUR964.3 million, compared with
EUR1,566.1 million a year earlier. This one-third decrease also results from
the deconsolidating factoring program set up in the third quarter of 2009
(EUR83 million in receivables transferred on December 31, 2009) and the
EUR251 million capital increase that was successfully completed in June.
OUTLOOK
With a 9.9% operating margin in the 2nd half of 2009, Imerys
is on track to meet its 10% operating margin objective for early 2010.
In an uncertain economic environment, the Group maintains its
priorities in terms of tight operating management.
DIVIDEND
The Board of Directors will propose maintaining a dividend of
EUR1.00 per share at the Annual General Meeting of April 29, 2010, despite
lower earnings. This dividend should be paid out from May 11, 2010 for a
total of approximately EUR75.4 million, i.e. 63.2% of the Group's share of
net current income.
DETAILED COMMENTARY ON THE GROUP'S RESULTS.
SALES
Sales Change in sales Comparable of of which (% previous change in which Price/Mix (EUR millions) year) sales(1) Volume effect (% previous effect year) 2008 3 449.2 + 1.4% + 0.7% - 3.7% + 4.5% 2009 2 773.7 - 19.6% - 19.9% - 23.8% + 3.9% Sales Change in sales Comparable of of which (% previous change in which Price/Mix (EUR millions) year) sales(1) Volume effect (% previous effect year) 1st quarter 2009(2) 694.3 - 21.3% - 23.8% - 28.2% + 4.4% 2nd quarter 2009(2) 679.7 - 23.8% - 26.0% - 30.2% + 4.2% 3rd quarter 2009(2) 703.7 - 20.6% - 20.9% - 24.7% + 3.8% 4th quarter 2009(2) 696.1 - 11.8% - 7.6% - 11.1% + 3.5%
- Gradual upturn in volumes in 2nd half, but still below 2008 levels - Firm price and mix components in all activities
At EUR2 773.7 million in 2009, sales fell - 19.6% compared with 2008.
This decrease takes into account:
- A positive exchange rate effect of + EUR17.4 million, mainly reflecting the US dollar's appreciation against the euro. Exchange rates had a favorable effect for the first nine months of the year, before having impact of - EUR25.9 million in the 4th quarter; - - EUR5.7 million impact of changes in Group structure(3).
The collapse in volumes (- 23.8%) was intensified by further inventory
reduction in many value chains that include the Group's products,
particularly in the 1st half of the year. Sales at comparable Group structure
and exchange rates rose + 7.4% in the 2nd half, from the previous six months.
Price effect and product mix, improving in all business groups, increased
+ 3.9% for the Group as a whole.
CURRENT OPERATING INCOME (4)(5)(6)
(EUR millions) 2009 2008 % Change % Comparable change(7) 1st quarter 44.4 116.9 - 62.0% - 66.2% Operating margin 6.4% 13.3% 2nd quarter 65.6 124.6 - 47.3% - 48.8% Operating margin 9.6% 13.9% 3rd quarter 69.8 93.6 - 25.5% - 31.6% Operating margin 9.9% 10.6% 4th quarter 69.1 79.5 - 13.1% - 2.6% Operating margin 9.9% 10.1% Year 248.9 414.6 - 40.0% - 41.0% Operating margin 9.0% 12.0%
- Operating margin gradually restored in second half - Significant savings on fixed costs and overheads - Further inventory reduction despite gradual rise in output
Current operating income totaled EUR248.9 million in 2009 (- 40.0%),
taking into account:
- Positive exchange rate effect (+ EUR5.7 million), with an adverse impact in the 4th quarter of 2009, - Limited impact of changes in Group structure(8) (- EUR1.6 million).
At comparable Group structure and exchange rates, the - EUR169.8 fall
compared with 2008 is due to lower volumes (- EUR372.1 million) and was
heightened by the decrease in in-process and finished product inventory.
The cost reduction plans carried out since late 2008 led to a - EUR157.8
million decrease in fixed production costs and overheads. They particularly
focused on:
- Capacity reductions or temporary unit idlings, with the short-term use of part-time working measures; - Production site closures; - The significant, temporary reduction in expenditure not deemed as necessary (maintenance, travel, overheads).
The improvement in the product price and mix amounts to EUR129.2 million
and easily offsets the limited increase in variable costs observed in the 1st
half.
The Group's operating margin works out at 9.0%.
NET INCOME FROM CURRENT OPERATIONS
Net income from current operations totaled EUR119.3 million (- 55.3%
compared with 2008). This trend reflects the decrease in operating income and
takes the following items into account:
- An increase in financial expense to - EUR83.4 million (vs. - EUR47.1 million as on December 31, 2008), due to the factors below: _ - In 2008, financial expense benefited from non-recurrent gains on exchange and interest rate instruments (for a total of approx. EUR25 million). In 2009, negative exchange result amounts to - EUR5.8 million. _ - The net financial expense of pensions rose + EUR6.0 million during the year. - A - EUR46.2 million (- EUR98.0 million in 2008) tax charge, i.e. an effective tax rate of 27.9%.
NET INCOME
Other operating income and expense, net of tax, totaled - EUR78.0
million.
The gross amount (- EUR87.1 million) can be broken down into:
- cash expense of - EUR53.0 million with respect to restructuring expenses related to the cost reduction plans undertaken during the period, particularly site closures; - a non-cash amount of - EUR45.4 million (depreciation of industrial assets on restructured sites and goodwill impairment); - net capital gains on divestments for EUR11.3 million (mainly, gains on divestment, in May 2009, of Planchers Fabre, a reinforced and pre-stressed concrete beam and joist manufacturing and marketing activity).
After allowing for other operating income and expense, net,
the Group's share of net income for the year totals EUR41.3 million (EUR161.3
million in 2008).
CASH FLOW
EUR millions 2009 2008 EBITDA 416.6 573.4 Current operating cash flow 347.1 462.8 Changes in working capital 235.3 32.3 Paid capital expenditure (138.4) (248.8) Current free operating cash 450.3 257.8 flow* Financial expense (net of (50.4) (29.7) cash) Other working capital items 42.1 (48.3) Current free cash flow 442.0 179.8
* including subsidies, value of divested assets and misc 6.3 11.5
- Sharp reduction in working capital - Record free cash flow generation
In line with efforts to optimize costs and financial structure, a
factoring contract was signed on July 23, 2009. As on December 31, 2009,
EUR83 million in trade receivables were divested and deconsolidated in this
way, with the related risks and benefits transferred to the factoring bank.
In 2009, the decrease of receivables, amplified by factoring and the
substantial EUR171.0 million reduction in inventory together improved
operating working capital by EUR235.3 million.
As on December 31, 2009, operating working capital represented 21.9% of
annualized sales for the 4th quarter (excluding factoring, the ratio would be
24.9%).
Booked capital expenditure was reduced by more than 50.2% compared with
the previous year. It Primarily related to maintenance operations, it totaled
EUR118.7 million and was equivalent to 65% of depreciation expense(9)
(compared with 123% in 2008).
Taking factoring into account, current free operating cash flow(10)
works out at EUR450.3 million, compared with the EUR257.8 million recorded in
2008.
FINANCIAL STRUCTURE
EUR millions December 31, June 30, 2009 December 31, 2009 2008 Net debt 964.3 1,148.2 1,566.1 Shareholders' equity 1,855.8 1,808.1 1,546.3 EBITDA 416.6 204.1 573.4 Net debt/ shareholders' equity 52.0% 63.5% 101.3% Net debt / EBITDA 2.3x 2.5x 2.7x
- Substantial organic debt reduction - Net financial debt below EUR1 billion
Consolidated net financial debt decreased sharply to EUR964.3
million as on December 31, 2009.This debt reduction of above EUR600 million
in one year results from:
- The current free operating cash flows of EUR 450,3 million, generated by the Group's activities, including factoring; - The EUR251.2 million revenue from the rights issue (i.e. EUR247.5 million after deducting issue fees) received on June 2, which was assigned in full to debt reduction; - The dividend payment of EUR62,8 million in the 2nd half 2009, for year 2008.
As on December 31, 2009, Imerys' financial resources total
more than EUR2.3 billion (of which EUR1.4 billion in available financial
resources); no significant repayment is due until late 2012.
Imerys now has all the financial flexibility it needs to
resume its development and seize any growth opportunities.
SUBSEQUENT EVENTS SINCE DECEMBER 31, 2009
No significant subsequent events occurred after the accounts closure date
has to be reported.
COMMENTARY BY BUSINESS GROUP
Minerals for Ceramics, Refractories, Abrasives & Foundry
(28% of consolidated sales)
(EUR millions) Current Comparable 2009 2008(11) change change(12) Sales 794.5 1 159.8 - 31.5% - 32.2% Current operating income (13) 44.0 127.8 - 65.6% - 67.0% Operating margin 5.5% 11.0% Booked capital expenditure 46.0 70.4 - 34.6%
MARKETS
Since the 4th quarter of 2008, the drop in demand for
industrial equipment, automobiles and infrastructure has caused a significant
slump in the main outlets for Minerals for Refractories, Fused Minerals and
Graphite & Carbon. The inventory reduction trend which intensified that
downturn in mature economies faded away in the 2nd half of 2009; an inventory
building effect was even observed towards the end of the year in the most
badly hit businesses. Steel production has slowly picked up in Europe since
the 3rd quarter of 2009; recovery is a little firmer in North America. In
other sectors of business (aluminum, glass, cement), several projects for new
facilities were postponed.
Business remains healthy in emerging countries and the Chinese
market, in particular, has benefited from national stimulus plans.
Minerals for Ceramics markets, affected all year long by the
decline in new construction and renovation in the United States and Europe,
recorded a further slump in those zones that was heightened by production
stoppages towards the end of the year.
HIGHLIGHTS
All the business group's activities reduced their output in order to cut
inventory and adjust to demand. Part-time working and shorter working hours
were primarily used; the periodical or even definitive idling of several
production lines or sites led to substantial workforce reductions in the
countries where the business group is active.
A number of development projects were finalized. Minerals for
Refractories enhanced its mineral reserves portfolio in the 1st half with the
acquisition of high-quality assets in the United States and continued to
invest in andalusite production assets in South Africa and China. Imerys
Technologie Limoges (Haute-Vienne, France), a research center dedicated to
minerals for uprange and specialty ceramics, was opened in the 2nd quarter
with the aim of designing and developing new generation ceramics.
RESULTS
Sales, at EUR794.5 million for 2009, fell - 31.5%, factoring in:
- a limited structure effect (14) of - EUR5.5 million, - positive exchange rate effect (US dollar) of + EUR13.7 million.
Current operating income, at EUR44.0 million, decreased - EUR83.8 million
compared with 2008. This takes into account a structure effect of - EUR3.0
million and a favorable exchange rate effect of + EUR4.8 million.
The impact of lower sales volumes, intensified by the reduction in
inventory of in-process and finished products, was only partly offset by the
result of the energetic actions on fixed production costs and overheads and
by a positive trend in the price/mix component.
Performance & Filtration Minerals
(18% of consolidated sales)
(EUR millions) Current Comparable 2009 2008(15)(16) change change(17) Sales 500.7 571.5 - 12.4% - 14.5% Current operating income(18) 26.9 46.1 - 41.7% - 48.9% Operating margin 5.4 % 8.1% Booked capital expenditure 10.7 47.7 - 77.6%
MARKETS
Markets for Performance Minerals - intended for paint,
coatings, polymers, plastics and adhesives, etc. - continue following
construction sector trends. In Europe, the drop observed in the 2nd half of
2008 continued this year. In the United States, 2009 saw a further slump in
the market, with signs of bottoming out at the lowest ever levels. Growth
kept up in South America and Asia.
Demand for filtration products fell temporarily in late 2008
and early 2009, reflecting inventory reductions carried out by the Group's
customers and by distributors. The trend picked up in the 2nd half in a
stable overall market.
HIGHLIGHTS
Efforts to adapt the cost base continued throughout 2009. The
decrease in input came with the stoppage of mining programs and extended
closures of industrial sites. The geographic reorganization of Performance
Minerals and Filtration Minerals activities in Europe, Asia-Pacific and South
America led to savings on overheads.
RESULTS
Sales, at EUR500.7 million, were down - 12.4%. This trend
takes into account:
- a structure effect(19) of + EUR5.3 million, - exchange rate impact of + EUR7.0 million.
Current operating income totaled EUR26.9 million, down -
EUR19.2 million. It factors in a structure effect of + EUR2.8 million in
addition to favorable exchange rate impact of + EUR0.5 million. At comparable
Group structure and exchange rates, the decrease is - EUR22.5 million, with
cost savings and the improvement in the price-mix component insufficient to
make up for the fall in sales volumes.
Pigments for Paper
(23% of consolidated sales)
(EUR millions) Current Comparable 2009 2008(20)(21) change change(22) Sales 631.9 719.2 - 12.1% - 14.0% Current operating income(23) 41.6 60.2 - 30.9% - 34.2% Operating margin 6.6% 8.4% Booked capital expenditure 32.5 63.5 - 48.8%
MARKETS
Since the low observed in early 2009, production of printing
and writing paper has slowly rebounded, quarter after quarter. Over the year,
it fell - 11%, with the robustness of emerging countries failing to offset
the downturn in developed economies. The sector was affected by the slump in
advertising expenditure in Europe and North America, which was made worse by
the inventory reduction trend early in the year, and continued to restructure
in order to limit overcapacity.
HIGHLIGHTS
In response to lower production, the business group
temporarily idled facilities in most of its production units in Europe, North
America and Brazil. In parallel, capacities were reduced in the Sandersville
(United States) kaolin plant and the calcium carbonate site in Salisbury
(United Kingdom) was closed.
The business group continued its strategic development in Asia
with the commissioning of two new plants in India (Amritsar and Bhadrachalam)
which will enable it to take advantage of calcium carbonates growth in this
area, by accompanying major domestic customers.
RESULTS
Sales, at EUR631.9 million as on December 31, 2009, were down
- 12.1%. This decrease takes into account a + EUR13.7 million exchange rate
effect.
Current operating income totaled EUR41.6 million in 2009, a -
EUR18.6 million decrease. This factors in a + EUR2.0 million exchange rate
effect. At comparable Group structure and exchange rates, the business
group's operating performance decreased - EUR20.6 million. Cost reduction
efforts enabled it to limit the drop in operating margin.
A provision for bad debt was recorded following the bankruptcy
of a major North-American customer. This allowance affects approximately -
0.5% of the business group's margin in 2009.
Materials and Monolithics
(31% of consolidated sales)
(EUR millions) Current Comparable 2009 2008(24) change change(25) Sales 875.6 1 041.4 - 15.9% - 13.9% Current operating income(26) 168.0 228.3 - 26.4% - 25.5% Operating income 19.2% 21.9% Booked capital expenditure 27.3 52.0 - 47.5%
MARKETS
En 2009, single-family housing starts in France fell approximately -
20%(27) compared with 2008. In that context, the clay roof tile segment held
out better (- 11%), due to the firm renovation market, which accounts for
more than half the sector's outlets. The clay brick segment was, of course,
more directly affected by the market downturn, clay bricks addressing mainly
the new single-family housing market. In this segment, their share market is
now more than 30% and is growing steadily because of their ease of laying and
high environmental qualities (H.Q.E.). Besides, clay bricks are being used in
the construction of multi-dwelling and in tertiary buildings, following the
recent launch of products suited to those buildings' specific needs.
In Monolithic Refractories, 2009 was marked by the heavy slump in demand
in the steel sector, with many production stoppages. However, output has
picked up since mid-year, leading to specific maintenance operations prior to
the restart of blast furnaces. Business remained buoyant in Asia all year
long. The foundry segment recorded similar trends. High temperature
industries (cement, glass, incineration, petrochemicals) held out better,
mainly in the 1st half, because of the recurrent maintenance and
commissioning of furnace construction projects launched in 2008. The positive
effect of those projects has since then gradually disappeared, with a
decrease in new orders.
HIGHLIGHTS
In Building Materials, production capacities were gradually adjusted to
lower demand with temporary production stoppages, together with the closure
of production lines (in roof tiles at Pargny sur Saulx - Marne and bricks at
Colomiers -Haute-Garonne) and the Bessens (Tarn-et-Garonne) brick unit.
Modernization of the Wardrecques (Nord) roof tile plant and optimization of
the La Boissiere du Dore (Loire-Atlantique) brick plant were completed in
2009 to improve manufacturing efficiency.
In late May 2009, the concrete beam and joist manufacturing and marketing
activity Planchers Fabre, located in Pibrac (Haute-Garonne), was sold. In
2008, it posted sales of almost EUR20 million. In Monolithic Refractories,
adaptation meant regrouping German production onto the Neuwied site and
closing the Hangelar site in the 2nd half of the year. During the first three
quarters, output was slowed on all sites, with the notable exception of
India, where business remained brisk.
RESULTS
At EUR875.6 million, the business group's sales were - 15.9% down from
2008, taking into account:
- structure effect(28) of - EUR5.5 million, - negative exchange rate impact of - EUR15.7 million.
Current operating income, at EUR168.0 million, decreased - EUR60.3
million compared with 2008. Reprocessed to allow for Group structure (-
EUR1.4 million) and exchange rate (- EUR0.8 million) effects, the business
group's operating performance was down - EUR58.1 million. The reduction in
output levels, intended to speed up inventory reduction, and tight control of
the fixed cost base enabled very good profitability to be maintained despite
lower volumes.
HUMAN RESOURCES
The workforce decreased in 2009 as a result of reorganizations
in activities affected by the global economic crisis. As on December 31, the
Group had 14,592 employees. However, while most business groups posted much
greater drops in sales, the Group's headcount in 2009 decreased by
approximately 2,400, and affected 12.6% of open-ended contracts. These
results were achieved thanks to the quality of industrial dialogue that
prevailed everywhere, enabling the Group to use temporary idling mechanisms
with work contract suspensions, particularly in Western Europe.
The Managers database, set up in late 2008 in compliance with
regulations on sharing and protecting personal data, was rolled out in 2009.
It gives rapid access to employees' career paths and profiles, facilitating
internal mobility. In 2009, more than 70 employees in the first manager
grades were able to benefit from career opportunities in the Group, including
20 in key line or support positions. The Imerys intranet was overhauled in
2009 and also boosted those actions through its vacancies section.
An essential tool for the Group's expansion, training
continued to play an important role in 2009 in enhancing individual skills
and supporting the development of Imerys' various professions: 61% of Group
employees were trained at least once during the year, compared with 58% in
2008. The Imerys Learning Center developed its activities in Asia, where a
growing number of courses are now organized. New modules such as "Industrial
Marketing Essentials" were added, helping to consolidate a real Group
culture.
INNOVATION
Innovation effort was maintained in 2009. Each business group
marketed its share of new products with, as every year, many specifications
with a positive environmental impact. High-tech products were also launched,
such as new graphites and carbons for the Li-Ion battery, new pre-coating
kaolins, quick-drying refractory concretes and even more efficient filtration
media. Carrying on from the innovation projects launched in late 2006, an
Oilfield Minerals division was created to develop sales of Imerys minerals in
that sector.
SUSTAINABLE DEVELOPMENT
In 2009, Imerys kept up its commitment in favor of Sustainable
Development. The lost-time accident rate was reduced to less than 2.8
accidents per million hours worked. Constant improvement on environmental
issues continue on all sites, with the efficient setup of reporting on
environmental incidents and an increase in certifications. In late 2009, 59
sites were ISO or EMAS certified and 107 sites were self-certified on
internal standards. Initiatives were launched on neighboring community
relations, biodiversity and human rights. Finally, the Group continued to
adapt to European REACh legislation(29).
CORPORATE GOVERNANCE
At its last meeting in 2008, the Board of Directors carefully
examined the recommendations resulting from the AFEP-MEDEF Corporate
Governance Code on corporate officers' compensation. The Board confirmed that
the AFEP-MEDEF Corporate Governance Code, as enhanced by the latest
recommendations, is henceforth Imerys' benchmark, with any provisions that
may not be adopted being explained.
In 2009, Imerys strove to adapt its governance practices in
compliance with almost all Code's latest recommendations. In particular,
independence criteria for members of the Board of Directors comply with the
recommendations resulting from the AFEP-MEDEF Corporate Governance Code, with
a proportion (five out of thirteen) of Directors meeting those criteria, more
than the one-third recommended for listed companies with controlling
shareholders. The internal Charter, which can be consulted on Imerys's
website, also sets out the missions of the Board and its three Committees,
their working principles and rules of conduct, and defines Directors' rights
and duties.
In order to comply with best practices and improve their
functioning and performance further, the composition and workings of the
Board of Directors and its Committees, as every year, was the subject of a
self-assessment by its members, who judged them very satisfactory, while
identifying some improvement areas for the future.
Analyst and media meeting
The press release is available on the Group's website
www.imerys.com and can be accessed from the homepage in the
"press releases" section.
Imerys is holding a presentation meeting at 6:15pm today in
Maison des Arts & Metiers (9 bis avenue d'Iena, 75116 Paris), at which the
results for financial 2009 will be commented on. The conference will be
streamed live on the Group's website www.imerys.com.
Upcoming financial communication dates
- 2010 First Quarter results, Annual General Meeting: April 29, 2010; - 2010 First Half results: July 30, 2010; - 2010 Third Quarter Results : November 3, 2010.
These dates are given for guidance only and may be updated on
the Group's website at www.imerys.com, in the Investors & Analysts /
Financial Diary.
The world leader in Adding Value to Minerals, Imerys is active in 47
countries through more than 240 industrial sites. The Group achieved EUR2.8
billion in sales in 2009. Imerys mines and processes minerals from reserves
with rare qualities in order to develop solutions that improve its customers'
product performance and manufacturing efficiency. The Group's products have a
great many applications in everyday life, including construction, personal
care, paper, paint, plastic, ceramics, telecommunications and beverage
filtration.
More comprehensive information about Imerys may be obtained from its
Internet website (www.imerys.com) under Regulated Information,
particularly in its Document de Reference filed with Autorite des marches
financiers on April 3, 2009 under number D.09-0192 (also available from the
Autorite des marches financiers website, www.amf-france.org). Imerys draws
the attention of investors to chapter 4, "Risk Factors", of its Document de
Reference.
Warning on forecasts and forward-looking information: 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 Imerys' control) that could cause actual results and
developments to differ materially from those expressed or implied.
———————————
(1) At comparable Group structure and exchange rates.
(2) Non-audited quarterly data.
(3) Acquisitions made in 2008: Astron China (China, February 2008),
Svenska Silika Verken AB (Sweden, April 2008), Kings Mountain Minerals, Inc.
(USA, October 2008) and Suzorite Mining, Inc. (Canada, October 2008),
deconsolidation of Xinlong (China, January 2009) and divestments made in
2009, primarily Planchers Fabre (France, May 2009).
(4) Operating income before other operating income and expense.
(5) Results for 2008 were reprocessed following the two presentation
changes applied as on January 1, 2009, details of which are given in appendix
hereto.
(6) Non-audited quarterly results.
(7) At comparable Group structure and exchange rate.
(8) Acquisitions made in 2008: Astron China (China, February 2008),
Svenska Silika Verken AB (Sweden, April 2008), Kings Mountain Minerals, Inc.
(USA, October 2008) and Suzorite Mining, Inc. (Canada, October 2008),
deconsolidation of Xinlong (China, January 2009) and divestments made in
2009, primarily Planchers Fabre (France, May 2009).
(9) Booked capital expenditure divided by fixed asset depreciation
expense.
(10) Current operating cash flow minus paid capital expenditure and
change in operating working capital.
(11) Results for 2008 were reprocessed following the two presentation
changes applied as on January 1, 2009, details of which are given in appendix
hereto.
(12) At comparable Group structure and exchange rates.
(13) Operating income before other operating income and expenses.
(14) Astron China (China, February 2008) and divestment of Iberpasta
(Spain, January 2009).
(15) Results for 2008 were reprocessed following the two presentation
changes applied as on January 1, 2009, details of which are given in appendix
hereto.
(16) Transfer of some activities in Asia and South America from Pigments
for Paper to Performance & Filtration Minerals.
(17) At comparable Group structure and exchange rates.
(18) Operating income before other operating income and expenses.
(19) Acquisitions of Kings Mountain Minerals, Inc. (USA, October 2008)
and Suzorite Mining, Inc. (Canada, October 2008) and deconsolidation of
Xinlong (China, January 2009).
(20) Results for 2008 were reprocessed following the two presentation
changes applied as on January 1, 2009, details of which are given in appendix
hereto..
(21) Transfer of some activities in Asia and South America from Pigments
for Paper to Performance & Filtration Minerals
(22) At comparable Group structure and exchange rates.
(23) Operating income before other operating income and expenses.
(24) Results for 2008 were reprocessed following the two presentation
changes applied as on January 1, 2009, details of which are given in appendix
hereto.
(25) At comparable Group structure and exchange rates.
(26) Operating income before other operating income and expenses.
(27) Single-family housing starts (individual and grouped), excluding
constructions on existing buildings Sources: Ministry of ecology,
Environment, Sustainable Development and Land Planning: New single-family
housing starts; Imerys: reprocessed to allow for constructions on existing
buildings.
(28) Acquisition of Svenska Silika Verken AB (Sweden, April 2008);
divestment of Planchers Fabre (France, May 2009).
(29) European Community Regulation on chemicals (Registration,
Evaluation, Authorisation and Restriction of Chemical substances).
2009 RESULTS
Appendix(1) 1. Consolidated sales breakdown Change in consolidated sales % current % % % change structure change comparable effect effect change(2) Imerys Group - 19.6% - 0.2% + 0.5% - 19.9% Quarterly change at comparable Group Q1 09 Q2 09 Q3 09 Q4 09 structure and exchange rates, 2009 vs. 2008 - 23.8% - 26.0% - 20.9% - 7.6% Reminder 2008 vs. 2007 Q1 08 Q2 08 Q3 08 Q4 08 + 3.2% + 5.1 % + 5.0 % - 10.5% Quarterly Q4 Q4 % % change 2008 2009 current comparable change change(2) Minerals for Ceramics, Refractories, Abrasives & Foundry 269.1 215.6 - 19.9% - 15.9% Performance & Filtration Minerals 129.6 122.0 - 5.9% + 1.8% Pigments for Paper 171.2 160.1 - 6.5% - 3.3% Materials & Monolithics 228.4 211.4 - 7.4% - 4.3% Total 788.9 696.1 - 11.8% - 7.6% (table continued) Quarterly 2008 2009 % % change current comparable change change(2) Minerals for Ceramics, Refractories, Abrasives & Foundry 1 159.8 794.5 - 31.5% - 32.2% Performance & 571.5 500.7 - 12.4% - 14.5% Filtration Minerals Pigments for Paper 719.2 631.9 - 12.1% - 14.0% Materials & Monolithics 1 041.4 875.6 - 15.9% - 13.9% Total 3 449.2 2 773.7 - 19.6% - 19.9% Quarterly change Q1 09 Q2 09 H1 09 Q3 09 Q4 09 H2 09 2009 Imerys Group - current change - 21.3% - 23.8% - 22.6% - 20.6% - 11.8% - 16.4% - 19.6% Imerys Group - comparable change, of which: - 23.8% - 26.0 % - 24.9% - 20.9% - 7.6% - 14.6% - 19.9% Minerals for Ceramics, Refractories, Abrasives & Foundry - 35.8% - 40.3% -38.2% - 35.1% - 15.9% - 26.0% - 32.2% Performance & Filtration Minerals - 22.0% - 21.0% - 21.5% - 15.0% + 1.8% - 7.3% - 14.5% Pigments for Paper - 20.2% - 19.1% - 19.6% - 12.9% - 3.3% - 8.3% - 14.0% Materials & Monolithics - 15.9% - 19.1% - 17.5% - 14.8% - 4.3% - 10.0% - 13.9% Sales by business group 2009 2008 Minerals for Ceramics, Refractories, Abrasives 28% 33% & Foundry Performance & Filtration Minerals 18% 15% Pigments for Paper 23% 22% Materials & Monolithics 31% 30% Total 100% 100% Sales by geographic destination (EUR millions) Sales % change % % 2009 2009 vs. 2008 consolidated consolidated sales 2009 sales 2008 Western Europe 1,435.6 - 21.8% 52% 53% United States / Canada 546.0 - 16.7% 19% 19% Japan / Australia 132.0 - 24.5% 5% 5% Emerging 660.1 - 15.8%* 24% 23% countries* Total 2,773.7 - 19.6% 100% 100%
* Of which Chine : - 20% et Eastern Europe - 31%.
2. Simplified income statement
To improve the presentation of the Group's financial statements in line
with the evolution of common practices among the main issuers listed in Paris
on NYSE-Euronext, in 2009 the Group is making two changes to presentation.
On one hand, the financial components of net expenses for defined-benefit
plans for employees (- EUR6.8 million as on December 31, 2009 and - EUR0.8
million as on December 31, 2008), previously recorded under current operating
income, are now recorded under financial income/expense.
On the other hand, the share of net income/loss of affiliates (- EUR0.1
million as on December 31, 2009 and EUR10.4 million as on December 31, 2008),
previously recorded as income after tax, is now recorded under current
operating income.
For the sake of comparison, 2008 full year results were restated
accordingly. Earnings per share for previous periods have been adjusted
accordingly. The weighted number of outstanding shares was also adjusted by
the dilution coefficient for the capital increase carried out on June 2,
2009.
(EUR millions) 2008 Employee Share in 2008 benefit net published financial income/loss restated component of affiliates Sales 3.449.2 3.449.2 Current operating income(3) 403.4 0.8 10.4 414.6 Financial expense (46.3) (0.8) (47.1) Current income tax (98.0) (98.0) Share in net income/loss of 10.4 (10.4) affiliates Minority interests (2.4) (2.4) Net income from 267.1 267.1 currentoperations(4) Other revenue and expenses, (105.8) (105.8) net Net income(4) 161.3 0.0 0.0 161.3 (EUR millions) Q4 2009 Q4 2008 Change H2 2009 H2 2008 Change restated restated Sales 696.1 788.9 - 11.8% 1.399.7 1.675.1 - 16.4% Current operating 69.1 79.5 - 13.1% 138.9 173.1 - 19.8% income(3) Financial expense (24.3) (16.7) (38.5) (26.5) Current income tax (12.4) (16.0) (27.5) (37.8) Minority interests (0.4) (0.5) (0.3) (1.5) Net income from current 32.0 46.3 - 30.9% 72.6 107.3 - 32.3% operations(4) Other revenue and (24.4) (80.7) (43.0) (90.4) expenses, net Net income(4) 7.6 (34.4) n.a. 29.6 16.9 n.a.
APPENDIX Imerys - 2009 Summary financial statements
The Board of Directors met on February 15, 2010 to close financial
statements for the full year 2009. Audit procedures have been performed and
audit reports are currently being issued.
CONSOLIDATED INCOME STATEMENT
(EUR millions) 2009 2008 Revenue 2,773.7 3,449.2 Current revenue and expenses (2,524.8) (3,034.6) Raw materials and consumables used (1,026.1) (1,268.5) External expenses (674.9) (890.7) Staff expenses (587.1) (651.5) Taxes and duties (42.6) (53.0) Amortization, depreciation and impairment losses (181.4) (193.2) Other current revenue and expenses (12.6) 11.9 Share in net income of associates (0.1) 10.4 Current operating income 248.9 414.6 Other operating revenue and expenses (87.1) (114.9) Income on assets disposals 4.3 0.1 Impairment losses, restructuring and litigation (91.4) (115.0) Operating income 161.8 299.7 Net financial debt expense (69.1) (57.0) Income from securities 2.2 4.1 Gross financial debt expense (71.3) (61.1) Other financial revenue and expenses (14.3) 9.9 Other financial revenue 121.1 282.9 Other financial expenses (135.4) (273.0) Financial income (loss) (83.4) (47.1) Income taxes (37.1) (88.9) Net income 41.3 163.7 Net income, Group share 41.3 161.3 Net income, minority interests - 2.4 Net income, Group share 41.3 161.3 Net income from current operations, Group share 119.3 267.1 Other net operating revenue and expenses, Group share (78.0) (105.8) Net basic earnings per share from current operations (in EUR) 1.66 3.96 Net basic earnings per share (in EUR) 0.57 2.39 Diluted net earnings per share (in EUR) 0.57 2.39 Average exchange rate euro/USD 1.3945 1.4708
Imerys - 2009 Summary financial statements
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
(EUR millions) 2009 2008 Non-current assets 2,740.5 2,839.9 Goodwill 897.5 899.4 Intangible assets 43.8 45.0 Mining assets 377.2 395.6 Property, plant and equipment 1,224.1 1,314.0 Investments in associates 50.0 50.0 Available-for-sale financial assets 7.5 7.1 Other financial assets 23.2 13.8 Other receivables 43.7 40.4 Derivative financial assets 17.6 18.7 Deferred tax assets 55.9 55.9 Current assets 1,190.8 1,508.0 Inventories 440.5 611.0 Trade receivables 364.4 523.3 Other receivables 110.7 154.2 Derivative financial assets 5.0 1.1 Marketable securities and other financial assets 5.6 4.4 Cash and cash equivalents 264.6 214.0 Consolidated assets 3,931.3 4,347.9 Equity, Group share 1,836.9 1,526.4 Capital 150.8 125.6 Premiums 339.4 115.8 Reserves 1, 305.4 1,123.7 Net income, Group share 41.3 161.3 Minority interests 18.9 19.9 Shareholders' equity 1,855.8 1 546.3 Non-current liabilities 1,388.9 1 449.8 Provisions for employee benefits 103.9 133.2 Other provisions 157.7 153.7 Loans and financial debts 1,037.7 1,054.7 Other debts 9.5 13.6 Derivative financial liabilities 16.5 19.2 Deferred tax liabilities 63.6 75.4 Current liabilities 686.6 1,351.8 Other provisions 18.6 20.8 Trade payables 260.7 337.9 Income taxes payable 20.6 13.4 Other debts 185.7 199.7 Derivative financial liabilities 2.9 49.8 Loans and financial debts 186.0 727.3 Bank overdrafts 12.1 2.9 Consolidated equity and liabilities 3,931.3 4,347.9 Net financial debt 964.3 1,566.1 Closing exchange rate euro/USD 1.4406 1.3917
Imerys - 2009 Summary financial statements
CONSOLIDATED STATEMENT OF CASH FLOWS
(EUR millions) 2009 2008 Cash flow from operating activities 520.5 365.2 Cash flow generated by current operations 657.3 580.5 Interests paid (67.2) (46.6) Income taxes on current operating income and financial income (loss) (26.1) (127.1) Dividends received from available-for-sale financial assets 0.4 0.2 Cash flow generated by other operating revenue and expenses (43.9) (41.8) Cash flow from investing activities (115.5) (366.1) Acquisitions of intangible assets and property, plant and equipment (138.4) (247.9) Acquisitions of investments in consolidated entities after deduction of cash (10.9) (142.6) acquired Acquisitions of available-for-sale financial assets - - Disposals of intangible assets and property, plant and equipment 18.8 20.9 Disposals of investments in consolidated entities after deduction of cash disposed of 14.2 0.9 Disposals of available-for-sale financial assets 0.1 0.3 Net change in financial assets (1.2) (0.6) Paid-in interests 1.9 2.9 Cash flow from financing activities (365.7) 145.8 Capital increases 249.0 0.9 Capital decreases (17.4) Disposals (acquisitions) of treasury shares 11.5 Dividends paid to shareholders (62.8) (119.0) Dividends paid to minority interests (0.8) (0.7) Loan issues 8.2 490.8 Loan repayments (402.4) (15.2) Net change in other debts (156.9) (205.1) Change in cash and cash equivalents 39.3 144.9 EUR millions) 2009 2008 Opening cash and cash equivalents 211.2 70.8 Change in cash and cash equivalents 39.3 144.9 Impact of changes due to changes in perimeter (2.3) - Impact of changes due to exchange rate fluctuations 4.5 (4.4) Impact of changes in accounting policies (0.1) (0.1) Closing cash and cash equivalents 252.6 211.2 Cash and cash equivalents 264.6 214.0 Bank overdrafts (12.1) (2.8)
(1) Non-audited quarterly information.
(2) Change at comparable Group structure and exchange rates.
Analyst/Investor Relations: Pascale Arnaud - +33(0)1-49-55-63-23 shareholders@imerys.com Press contacts: Pascale Arnaud - +33-(0)1-49-55-63-91/66-55 Matthieu Roquet-Montegon - +33(0)6-16-92-80-65
Analyst/Investor Relations: Pascale Arnaud - +33(0)1-49-55-63-23, shareholders at imerys.com; Press contacts: Pascale Arnaud - +33-(0)1-49-55-63-91/66-55, Matthieu Roquet-Montegon - +33(0)6-16-92-80-65
Tags: February 15, France, Imerys, Paris