in PDF (7120Ko) - Imerys, Transform to perform

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IMERYS IN 2010
IMERYS IN 2010
29 MINERALS
A MULTITUDE
OF CONVERSION PROCESSES
Imerys mines the most extensive, diverse and geographically
balanced portfolio of any industrial minerals specialist.
These raw materials, several of which are rare, are essential
for a great number of industrial applications.
Close to its customers on every continent, Imerys deploys an industrial
network of mineral conversion and beneficiation. The Group’s wealth
of know-how enables it to turn its resources into value-added products
that meet the needs of specific applications.
15,090 EMPLOYEES
THOUSANDS
OF USES WORLDWIDE
Multicultural teams in 47 countries form a global network
of engineers, technicians and sales & marketing professionals,
all focused on developing the range of specialties.
Domestic and technical ceramics, abrasive grain, refractory protections,
graphites and carbons for Lithium-ion batteries, additives for paint, flame
retardants for plastics, pigments for packaging paper, insulation bricks,
solar tiles… Imerys products have applications in many growing markets.
154, RUE DE L’UNIVERSITÉ | 75007 PARIS | FRANCE
TEL: + 33 (0) 1 49 55 63 00 | FAX: + 33 (0) 1 49 55 63 01
www.imerys.com
IMERYS EN 2010
75437_Imerys_RA2010_UK-couves-WarmGrey.indd 1
07/04/11 14:58
WORLD LEADER
IN INDUSTRIAL MINERALS
EUROPE & MIDDLE EAST
AUSTRIA
BELGIUM
CZECH REPUBLIC
DENMARK
FINLAND
FRANCE
GERMANY
GREECE
HUNGARY
ITALY
LUXEMBURG
NETHERLANDS
POLAND
PORTUGAL
ROMANIA
RUSSIA
SLOVENIA
SPAIN
SWEDEN
SWITZERLAND
TURKEY
UKRAINE
UNITED ARAB EMIRATES
UNITED KINGDOM
245
47
7
DATA PER SHARE
2010
Net income from current operations, Group’s share
(1) (2)
Net dividend per share (1)
INDUSTRIAL SITES
Weighted average number of outstanding shares (thousands)
(1)
Outstanding shares on December 31 (thousands)
COUNTRIES
2009
2008
3.19 €
1.66 €
3.96 €
1.20 € (3)
1.00 €
0.93 €
75,406
72,054
67,486
75,474
75,389
62,787
(1)
High
50.84 €
42.46 €
55.37 €
Low (1)
36.86 €
20.21 €
23.44 €
49.89 €
42.02 €
30.14 €
3,765 M€
3,166 M€
2,041 M€
Closing price
(1)
Market capitalization as of December 31
(1)
2008 data adjusted following the rights issue of June 2, 2009.
Group’s share of net income before operating revenue and expenses, net.
(3)
Proposed at the Shareholders’ General Meeting of April 28, 2011. The dividend will be paid out from May 11, 2011.
(2)
MAIN RESEARCH
CENTERS
17
SHARE PRICE AND MONTHLY TRADING VOLUMES
LISTING MARKET
from 1/1/2010 to 2/28/2011 (source: Euronext)
REGIONAL
LABORATORIES
Trading
volumes
(thousands
of shares)
In €
Imerys: + 21.0%
52
4,000
Euronext Paris
Eligible for SRD
(deferred settlement system)
Eurolist Market
Compartment A
Nominal: €2
48
3,000
SBF 120: + 7.4%
NORTH
AMERICA
44
2,000
40
1,000
CODES
ISIN
FR0000120859
NK
Mnemo
Reuters
IMTP.PA
Bloomberg NK.FP
INDICES
36
01/10
CANADA
UNITED STATES
02/10
03/10
Imerys price
04/10
05/10
SBF 120
06/10
07/10
08/10
09/10
10/10
11/10
12/10
01/11
02/11
SBF 120
DJ Eurostoxx 600
Imerys volumes
SRI INDICES:
On financial markets, 2010 was marked by ongoing concern over sovereign debt, particularly in
the 2nd quarter. In mid-year the firmness of the economic upturn affected certain sectors on a nonrecurring basis, such as construction in the 3rd quarter. Imerys stock followed market trends until
that period and rose substantially after the publication of its results to September 30. The share
ended 2010 at €49.89, up + 18.7% from December 31, 2009. Over the same period, the SBF 120
index was stable (+ 0.1%).
SOUTH
AMERICA
ARGENTINA
BRAZIL
CHILE
MEXICO
PERU
VENEZUELA
Imerys
a French limited liability company (société anonyme) with Board of Directors
Share capital 150,948,310 euros - Trade register RCS Paris B 562 008 151
ASIA & OCEANIA
NUMBER OF
INDUSTRIAL SITES
1-5
MAIN RESEARCH
CENTERS
+ 10
6-9
FTSE4Good
ASPI Eurozone®
REGIONAL
LABORATORIES
AFRICA
SOUTH AFRICA
TUNISIA
ZIMBABWE
AUSTRALIA
CHINA
INDIA
INDONESIA
JAPAN
MALAYSIA
NEW ZEALAND
SINGAPORE
SOUTH KOREA
TAIWAN
THAILAND
VIETNAM
Design and production:
Photo credits: Luz do Amanha, Michel Bost, Mehosh Dziadzio, Gernot Gleiss, Tom Grow, Clive Kessell, Dominique Lecuivre, Romuald
Meigneux, Claire Morel Fatio, Xolisa Mvinjelwa, Raimundo Pacó, Tom Parker, Nicolas Richez, Rod Rolle, Jon Rowton, Hélio Souza,
Howard Spiers, Gérard Uféras, Charlie Varley, Gettyimages, iStockphoto, Photothèque Imerys TC, Photothèque Imerys, DR, X
The report is printed on 100% recycled paper that is FSC and European Ecolabel certified and contains Imerys pigments
07/04/11 14:58
WORLD LEADER
AUSTRIA
BELGIUM
CZECH REPUBLIC
DENMARK
FINLAND
FRANCE
GERMANY
GREECE
HUNGARY
ITALY
LUXEMBURG
NETHERLANDS
POLAND
PORTUGAL
ROMANIA
RUSSIA
SLOVENIA
SPAIN
SWEDEN
SWITZERLAND
TURKEY
UKRAINE
UNITED KINGDOM
245
47
7
DATA PER SHARE
2010
(1) (2)
INDUSTRIAL SITES
(1)
COUNTRIES
2009
2008
3.19 €
1.66 €
3.96 €
1.20 € (3)
1.00 €
0.93 €
75,406
72,054
67,486
75,474
75,389
62,787
(1)
High
50.84 €
42.46 €
55.37 €
Low (1)
36.86 €
20.21 €
23.44 €
49.89 €
42.02 €
30.14 €
3,765 M€
3,166 M€
2,041 M€
Closing price
(1)
(1)
(3)
(2)
MAIN RESEARCH
CENTERS
17
LISTING MARKET
REGIONAL
LABORATORIES
Trading
volumes
(thousands
of shares)
In €
Imerys: + 21.0%
52
4,000
Euronext Paris
Eligible for SRD
Eurolist Market
Compartment A
Nominal: €2
48
3,000
SBF 120: + 7.4%
NORTH
AMERICA
44
2,000
40
1,000
CODES
ISIN
FR0000120859
NK
Mnemo
Reuters
IMTP.PA
Bloomberg NK.FP
INDICES
36
01/10
CANADA
UNITED STATES
02/10
03/10
Imerys price
04/10
05/10
SBF 120
06/10
07/10
08/10
09/10
10/10
11/10
12/10
01/11
02/11
SBF 120
DJ Eurostoxx 600
Imerys volumes
SRI INDICES:
SOUTH
AMERICA
ARGENTINA
BRAZIL
CHILE
MEXICO
PERU
VENEZUELA
Imerys
ASIA & OCEANIA
NUMBER OF
INDUSTRIAL SITES
1-5
MAIN RESEARCH
CENTERS
+ 10
6-9
FTSE4Good
ASPI Eurozone®
REGIONAL
LABORATORIES
AFRICA
SOUTH AFRICA
TUNISIA
ZIMBABWE
AUSTRALIA
CHINA
INDIA
INDONESIA
JAPAN
MALAYSIA
NEW ZEALAND
SINGAPORE
SOUTH KOREA
TAIWAN
THAILAND
VIETNAM
07/04/11 14:58
IMERYS IN 2010
IMERYS IN 2010
29 MINERALS
A MULTITUDE
15,090 EMPLOYEES
THOUSANDS
OF USES WORLDWIDE
TEL: + 33 (0) 1 49 55 63 00 | FAX: + 33 (0) 1 49 55 63 01
www.imerys.com
IMERYS EN 2010
07/04/11 14:58
PROFILE
The world leader in industrial minerals, Imerys designs, manufactures and sells high value-added mineral-based products
that enable its customers to optimize their own products or production processes, whether in consumer goods, industrial
equipment or housing construction and renovation.
The Group mines high-quality mineral reserves and benefits from specific industrial processes, high-performance sales
forces and logistical systems to meet and anticipate its customers’ needs through its innovative Research & Development
and Marketing teams.
Imerys constantly broadens the range of minerals that it transforms. Its decentralized organization based on autonomous,
responsible profit centers enables teams to respond swiftly to market trends.
The Group’s high free cash flow generation and financial soundness allow it to seize the growth opportunities arising from
today’s fast-changing world.
€3,347 million
€419 million
SALES
CURRENT OPERATING INCOME
MINERALS FOR CERAMICS,
REFRACTORIES, ABRASIVES
& FOUNDRY
PERFORMANCE
& FILTRATION MINERALS
World #1
World #1
World #1
World #1
World #1
World #1
Ceramic bodies
Abrasive minerals and silico-aluminous refractories
Fused zirconia
High-performance graphite powders
World #1
World #1
Minerals for breathable polymer films
Mica for engineered plastics
and high-performance coatings
Diatomite-based products
Diatomite and perlite-based products for filtration
PIGMENTS FOR PAPER
MATERIALS & MONOLITHICS
World #1
World #2
French #1
French #1
World #1
World #1
Kaolin for paper
Ground calcium carbonate for paper
Clay roof tiles, bricks and chimney blocks
Natural slate
Monolithic alumino-silicate refractories
Kiln furniture for roof tiles
CONTENTS
PAGE 2. ACTIVITIES PAGE 10. GOVERNANCE PAGE 18. SOUND STRATEGIC CHOICES PAGE 20. Strengthening leadership to serve customers
PAGE 24. Innovating to speed up growth PAGE 28. Supporting customers and winning new markets PAGE 30. Making a long term commitment
PAGE 32. Developing talents to prepare for the future PAGE 34. STRONG IMPROVEMENT IN RESULTS PAGE 36. Activities and results in 2010
PAGE 38. Sustainable Development indicators PAGE 40. Results by business group PAGE 42. Financial statements (simplified)
PAGE 44. Imerys on the stock market
To find out more, www.imerys.com
1
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High-purity quartz is valued for
its high-tech applications. The mineral
is an essential component in the manufacturing
chain for mono-crystalline silicon used in the
electronic and photovoltaic industries.
With unique reserves of pure silica sand and
exclusive industrial facilities in the United States
for transforming it into high-purity quartz, Imerys
is in an excellent position to take full benefit
from the market’s firm growth and thus
strengthen its world leadership.
3
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Celite CynergyTM is a filtration and stabilizing
additive developed by Imerys for the beer market.
It makes beer look appealing, ensures its flavor
remains intact and keeps it pure over time by
eliminating proteins (“stabilization”). One major
advantage is the effective combination of filtration
and stabilization functions. While conventional
stabilizers impair the filtration agent’s mechanical
performance, the Imerys solution improves
efficiency, throughput, shelf life and total cost
while reducing solid waste.
5
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Combined with wood fibers, the pigments
in the BarrisurfTM and E-TypeTM ranges deliver
outstanding qualities for the production, appearance
and strength of paper as well as giving it new qualities.
Drawing on the unique specifications of Imerys’
North American kaolins, BarrisurfTM and E-TypeTM
enable paper makers or board producers to reduce
the amount of cellulose fiber needed. The selective
barrier formed by the pigments makes paper
impermeable to water and grease. This application has
great potential in food packaging. After a promising
launch in the United States, both lines are
now being marketed worldwide.
7
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Savings
Speed
Efficiency
Availability
07/04/11 15:14
Calderys’ customers work molten metals
and other materials in extreme conditions. The Imerys
subsidiary is the leader in monolithic refractories.
Its Quick Dry No Cement Castable (QDNCC) range
helps customers overhaul the linings of their steelmaking,
casting and aluminum furnaces more quickly.
Used on site, the new product shortens installation
and drying times by up to 50% compared with
conventional concrete. With higher equipment
availability and lower fuel consumption, QD range
improves our customers’ efficiency.
9
07/04/11 15:14
GOVERNANCE
IMERYS HAS STRENGTHENED
THE MEANS FOR ITS FUTURE
DEVELOPMENT
Interview with
GÉRARD BUFFIÈRE
Chief Executive Officer*
Director**
* Term of office expires at Shareholders’
Meeting on 04/28/2011.
** Directorship expires following Shareholders’
Meeting on 04/28/2011, at which
its renewal will be proposed.
10
What is your view of 2010 and,
more generally, the way Imerys went
through and came out of the economic
and financial crisis?
The crisis we went through from November 2008 was extremely
violent. Imerys was heavily affected by this economic cataclysm:
our 2009 sales volumes were almost 25% down on the previous
year. High inventory rebuilding in our customer chain partly
explains that decrease. In 2010, our average volumes bounced
back 13%. At the end of the year, they were still 15% below
pre-crisis levels, whereas we believe inventory rebuilding is over.
This figure makes me optimistic for the future.
IMERYS IN 2010
07/04/11 15:14
+ €300 million
€2.2 billion
FREE CURRENT OPERATING CASH FLOW
FINANCIAL RESOURCES
The crisis showed how quickly the Group can react.
We undertook an internal cost reduction drive without delay.
From February 2009 it gained the expected momentum, with
costs down 15% excluding depreciation compared with the
previous year. Product sales prices and mix improved, with
Imerys showing leadership on its market segments. In 2010, our
plants came back on stream with no delays or downtime, and
we were able to raise the quality of our sales. I believe this proves
the efficiency of a decentralized structure where personally
responsible teams, directly in touch with markets and production
units, make quick decisions to optimize customer service and
our costs. This organization motivates everyone: overcoming
crises is as gratifying a task as managing abundance and ease.
How have preparations been made
for the future?
The Group’s sales, at €3,347 million, rose + 20.7% from 2009.
We kept up more than 50% of our cost reductions. At €419 million in 2010, our operating income is on a par with 2008
(€414 million), as is our operating margin at 12.5% (12.3%
in 2008).
Net income from recurring operations doubled compared with
2009, totaling €240 million. Our net debt now represents just
40% of shareholders’ equity and 1.4 times our EBITDA.
These figures show that with the same profitability as in 2008,
far lower volumes, reduced debt and greater free cash flow,
Imerys’ development capacity is much greater than it was before
the crisis.
What lessons can be drawn
from this period?
The crisis was painful. Was it useful? It certainly put our business
model to the test and sharpened our teams’ professionalism.
Overcoming the obstacle, they know they belong to a winning
company. That means something. Our operating performance
in 2010 attests to the improvement in our overall productivity.
This is a good sign for the future. Our customers appreciated
the quality of our service in those difficult circumstances and
our shareholders proved their confidence by subscribing to the
rights issue carried out in 2009.
We have reached a milestone in Imerys’ history and strengthened
the means for its future development.
“With the same profitability
as in 2008, far lower volumes,
reduced debt and greater free cash
flow, Imerys’ development capacity
is much greater than it was
before the crisis.”
In 2009, we judged that the economic situation was too uncertain
to make acquisitions, but we didn’t cut down on marketing and
development. The improved product mix reflects this in 2010 and
our activities’ organic growth will prove it in the future. In 2010,
we acquired Pará Pigmentos SA in Brazil and we are of course
looking into other projects. In late February 2011, we announced
we had entered into exclusive talks with Rio Tinto to acquire 100%
of the Luzenac Talc group.
We will of course grow in emerging countries. In ten years, starting
from very little, we have already established presence that weighs
more than a quarter of our sales. However, we won’t forget that
developed countries are in absolute value the largest share of
the global economy and that their growth, even if it is lower, is still
a real source of opportunities.
We are now the world leader in adding value to industrial minerals.
We’ll bolster that leadership wherever we can, broadening and
developing a business model which, in ten years or so, has proved
its relevance and passed the test of a major recession.
These developments will be carried out with a constant concern for our employees’ and contractors’ safety, respect for our
neighboring communities and the reduction of our environmental
footprint. A good example is our commitment, alongside the international group Orascom Hotels & Development, which specializes
in this kind of project, to the promotion and construction of EcoBos, a green village in Cornwall, United Kingdom. The project will
involve remediating 700 hectares of former mining deposits and
industrial facilities.
What’s the spirit behind
this growth strategy?
By divesting everything unrelated to minerals processing,
from 1999 Imetal turned into Imerys, emerging through
a determined strategy as a leader with profitable, self-funded
growth. Active in almost 50 countries today, Imerys is an
increasingly global group that its customers know well, with
a strong culture of individual responsibility and performance.
Our profit centers are responsible for their actions through plans
that are regularly discussed and adjusted. This decentralization
is coordinated through a strict financial framework, thanks to
a dynamic human resources policy and vigilant legal control and
assistance. Networked technical and innovation teams enable
us to capitalize on each activity’s progress. These lightweight
but proactive central structures help operating managers to
achieve their goals and the Group to leverage its size while
maintaining the SME-style entrepreneurial spirit we value. >>>
11
07/04/11 15:14
GOVERNANCE
WITH A 12.5% OPERATING
MARGIN, IMERYS ACHIEVED
ITS TARGET FOR 2010
This way of working fosters the integration of new activities
into our Group, whether internal developments or acquisitions.
Its flexibility and responsiveness will be extremely useful in a
complex, increasingly volatile world.
>>>
After eight years at the head of Imerys,
you’re preparing to hand over the reins
to Gilles Michel. What do you have
to say about this transition?
During my eight years at the head of the Group, I’ve been surrounded by motivated, welcoming teams who are determined to
overcome obstacles and do their utmost for growth. Imerys has
benefited from constant support from its controlling shareholders,
often personally voiced by Albert Frère and Paul Desmarais Jr.,
or through the Chairman of the Board of Directors, Aimery
Langlois-Meurinne.
I’d like to thank them all.
We are lucky to be joined by Gilles Michel, a man with great international experience who is no stranger to industrial and commercial
problems in complex businesses, sometimes close to ours. He’ll
be able to take our model further. The story will continue for the
benefit of our customers, our neighboring communities and all our
shareholders, and will enable Imerys’ men and women once more
to confirm, on every level, that their careers can mean adventure,
satisfaction and pride in helping to build a robust, sustainable group
– in short the joy of living.
Now I’m handing over to him. I’m doing so with nostalgia for the
time that has gone by too fast, but with the pleasure of those who
look to the future with confidence.
GILLES MICHEL, Deputy Chief Executive Officer - Director
Appointed by the Board
of Directors as Director
and Deputy Chief Executive
Officer on November 3, 2010.
His appointment as
Chairman and Chief
Executive Officer of Imerys
will be submitted to the
approval of the relevant
corporate bodies of the
Company on April 28, 2011.
Before joining Imerys in September
2010, he managed the French
Strategic Investment Fund (FSI) from
December 1, 2008. He previously held
positions with the World Bank and
the Saint-Gobain and PSA Peugeot
Citroën groups.
12
IMERYS IN 2010
07/04/11 15:14
LOOKING BACK AT 10 YEARS
OF DEVELOPMENT
In ten years, Imerys has become the world #1 in industrial minerals with presence
on every continent, leadership on its markets and 26% of its sales achieved
in emerging countries. An active acquisitions policy and sustained organic growth
efforts, in accordance with strict financial criteria, enable the Group to generate
substantial cash every year, making future developments possible.
1999
Birth of Imerys
English China Clays (ECC) is taken over by
Imetal, creating a global player in mineral
processing that refocuses on that business.
To reflect that change Imetal becomes
Imerys. The Group has sound positions
in white pigments, refractories, clays
and ceramics.
2004
2007
Growth in Pigments
for Paper and Building Materials
Six calcium carbonate units built, mostly in
Asia (India, China, Indonesia, Japan); major
white marble reserves acquired (Malaysia,
China, Vietnam). Expansion in bricks in
France and technical ceramics in Hungary.
Expansion into emerging
countries
China: majority stake bought in Yilong
(andalusite), joint venture created in
corundum for abrasives. ACE, the Indian
leader in monolithic refractories, joined
the Group and became ACE Calderys.
Developments in India, USA and Turkey
in feldspar, South Africa for Calderys,
Ukraine in Refractory Minerals
and Argentina in filtration.
Launch of TSC30TM graphite for LithiumIon battery production. Creation of the
Innovation Department, focusing on new
avenues for organic growth.
2000
Creation of Minerals
for Abrasives
The Minerals for Abrasives activity is formed
by the acquisition of Treibacher Schleifmittel
(Austria), the world’s leading corundum
producer. The Performance Minerals
business grows with acquisitions in calcium
carbonates in Latin America and Asia.
A new mineral, halloysite for fine porcelain,
is integrated.
2001
New acquisitions
in the Americas and Europe
Reserves and businesses acquired: kaolins
for glass fiber, clays for fine ceramics,
feldspar (USA, Mexico) and corundum
(Czech Republic, Germany).
Star products launched: Monomur brick,
Alodur® abrasive range, OpaciliteTM
opacifier kaolin for paint and FilmLinkTM
for breathable plastic films.
2002
Development in Asia
Acquisitions in Thailand in applications for
sanitaryware and refractories.
New products: narrow join OptibricTM,
ImersealTM carbonate for joint waterproofing
and ContourTM coating kaolin.
2008
2005
New activity: Minerals for Filtration
– Birth of Calderys
Two new minerals (diatomite and perlite)
added with the acquisition of World Minerals
(USA), the world leader in Minerals for
Filtration. Lafarge Refractories acquired,
merging with Plibrico to form Calderys,
the leader in monolithic refractories.
In ceramics, developments in Europe
(acquisition of Denain-Anzin Minéraux)
and new base in Tunisia.
Launch of OptibricTM with vertical
perforations for better insulation. Multiminerals strategy with the CarboflexTM
range, a blend of ground (GCC) and
precipitated (PCC) calcium carbonate.
World leader in fused zirconia
Acquisition of Astron China after the
takeover of UCM Group Plc (United Kingdom
– 2007), making Imerys world #1 in zirconia.
Growth in Performance Minerals in North
America with high quality mica. Creation
of CapteliaTM with EDF ENR for the
expansion of photovoltaic roofing.
Launch of the BarrisurfTM range of
nano-sized, ultra-flat kaolins designed
for lightweight barrier packaging paper,
and FiberlinkTM carbonate additives
for non-woven fibers.
2006
2009
Refractories offering broadened
Integration of AGS (France): extension of
range and global network in Minerals for
Refractories.
Launch of CeltixTM and OpTiMatTM, innovative
diatomites with high coverage for paint.
Priority: cash generation
Operating margin restored, external
growth put on back burner.
Product launches: C-NERGYTM, very high
purity, graphite and carbon-based additive;
E-TypeTM and FiberleanTM, kaolins for
packaging paper; IntuitysTM, the first clay
partition system; a new range of quick-dry,
cement-free refractory concrete; Celite
CynergyTM, a filtration and stabilizing agent
for beer.
13
08/04/11 17:24
GOVERNANCE
1 / GÉRARD BUFFIÈRE
2 / GILLES MICHEL
1
2
3
EXECUTIVE COMMITTEE
3 / CHRISTIAN SCHENCK
Materials & Monolithics
with Umesh Deveshwar, Imerys India
Chaired by the Chief Executive Officer, the Executive
Committee implements the strategy defined by the Board
of Directors, draws up major policies, sets down
performance improvement goals for the Group, decides
on the action plans to be carried out by operating entities
and monitors their progress. The Executive Committee is
comprised of the Group’s main line and support managers.
4
4 / JÉRÔME PECRESSE
Minerals for Ceramics, Refractories,
Abrasives & Foundry
5 / OLIVIER HAUTIN
Pigments for Paper
with Susan Boss
Pigments for Paper Asia-Pacific
5
6
6 / DANIEL MONCINO
Performance & Filtration Minerals
7 / MICHEL DELVILLE
Finance
8 / DENIS MUSSON
Legal & General Counsel
7
8
9
10
9 / THIERRY SALMONA
Innovation, Research & Technology
and Business Support
10 / BERNARD VILAIN
Human Resources
14
IMERYS IN 2010
07/04/11 15:14
IMERYS RESTORED
ITS FINANCIAL SOUNDNESS
MESSAGE
FROM THE CHAIRMAN
OF THE BOARD
OF DIRECTORS
AIMERY
LANGLOIS-MEURINNE
Dear Shareholders,
his year 2010 was marked by the recovery of Imerys’ main
markets, from which the Group drew full benefit. Although
the Group’s sales volumes did not regain their pre-crisis
levels, the significant improvement in operating and financial
results in 2010 reflects the scale the determined cost-saving
efforts made by management and all Imerys’ people in 2009.
Activities optimized their cash flow and returned to profitability
on a par with 2008, enabling the Group to resume its external
growth policy, as seen in the acquisition of Brazilian company
Pará Pigmentos SA in July.
T
With its financial soundness restored – a debt-to-equity ratio
below 40% at year-end – Imerys is again able to take advantage
of all the internal or external value-creating opportunities that
may be identified or arise in the future.
Confident in the Group’s prospects and keen to show its gratitude to the shareholders who proved loyal during the difficulties
of the recession, your Board of Directors has proposed a + 20%
increase in your dividend to €1.20 per share.
As regards Governance, Imerys remains attentive to the quality
of the workings of the Board and its Committees, and to its
continuous improvement, as borne out by the annual selfappraisal by Directors. The Board also intends to increase the
proportion of female members. In that respect it will propose
appointing Arielle Malard de Rothschild as a new Director at the
next Shareholders’ Meeting, after the appointment of Fatine Layt
in 2010.
I also want to voice on behalf of the Board our admiration and
gratitude to Gérard Buffière who will be stepping down as
Chief Executive Officer but who will remain a Director of the
Company. In more than eight years at the head of Imerys,
he has done an outstanding job by forming a highly skilled,
close-knit executive team, driving a strategy of profitable growth,
both internal and external, managing the Company with energy
and clear-sightedness through the crisis, and now handing it
over to his successor, Gilles Michel, in excellent condition.
He has worked in symbiosis with the Board and controlling
shareholders in the best interest of the Company and all its
shareholders.
In conclusion, on behalf of the Board, we are fully confident that
Gilles Michel will keep up that momentum and speed up Imerys’
development.
+ 20%
DIVIDEND INCREASE
15
07/04/11 15:14
GOVERNANCE
ORGANIZATION
AND MISSIONS
The Board of Directors, assisted by its specialized Committees, constantly
controls the management of the Company’s by the Executive Management.
It approves strategic orientations and authorizes the major operations that bind
the Group’s future. The workings and activity of the Board and its Committees
are subject, every year, to self-appraisal by its members in order to comply
with best practices and further improve efficiency.
BOARD OF DIRECTORS
COMPOSITION AS ON DECEMBER 31, 2010
43.62%*
25.64%
Aimery
Langlois-Meurinne (1)
Chairman
Jacques Drijard
Jean Monville*
Ian Gallienne
Robert Peugeot *
Gérard Buffière (1)
Chief Executive Officer (2)
Fatine Layt *
Olivier Pirotte
Jocelyn Lefebvre
Amaury de Sèze
Eric Le Moyne
de Sérigny
Pierre-Jean Sivignon*
(3)
Gilles Michel
Deputy Chief Executive
Officer (2)
30.74%
Aldo Cardoso* (1)
Jacques Veyrat * (1)
Maximilien
de Limburg Stirum (1)
* Independent members
(1)
Term of office as Director expires following the Shareholders’ Meeting of April 28, 2011,
at which its renewal will be proposed.
(2)
Until April 28,2011.
(3)
Term of office as Director will be proposed for ratification at the Shareholders’ Meeting of April 28, 2011.
% OF CAPITAL
as on December 31, 2010
* Of which 6.48% held by M&G Investment
Management Limited (Prudential Plc group)
and 5.17% held by Vanguard Precious Metals
and Mining Funds (The Vanguard Group, Inc.)
representing 4.35% and 3.47% of voting rights,
respectively.
29.68%
32.56%
37.76%
% OF VOTING RIGHTS
as on December 31, 2010
Pargesa Netherlands BV
Belgian Securities BV (GBL group)
Other shareholders
The proposed reclassification of Imerys stock within
the Pargesa-GBL Group announced on March 21st,
2011 would, subject to its completion, result in a
change in the shareholding breakdown as stated
above and a reduction in the total number of voting
rights in the Company.
16
FUNCTIONING
A French Limited Liability Company
(Société Anonyme) with Board of Directors
(Conseil d’Administration) since May 3,
2005, Imerys opted to dissociate the functions of Chairman of the Board of Directors
and Chief Executive Officer. These positions are held by Mr. Langlois-Meurinne
and Mr. Buffière, respectively, both of
whom preferred not to request the renewal
of their term of office at the Shareholders’
Meeting of April 28, 2011. Consequently,
the Board announced, upon the appointment of Mr. Michel as Director and Deputy
Chief Executive Officer in November 2010,
that it intended to merge the positions
of Chairman and Chief Executive Officer
and to appoint Mr. Michel to hold them.
The Board of Directors confirmed those
intentions at its meeting of February 15,
2011 and stated that it also intended to
appoint Mr. Langlois-Meurinne, subject to
the renewal of his Directorship at the next
Shareholders’ Meeting, as Vice-Chairman
in the capacity of “Lead Director”; he would
assist the Chairman in organizing the work
of the Board and its Committees and in
the Company’s relations with its controlling
shareholders, while making sure that best
practices are applied in terms of Corporate
Governance.
This governance structure, adopted by the
great majority of stock market-listed French
companies with a Board of Directors,
would simplify the Company’s operational
management in order to further improve its
efficiency. Furthermore, it would provide for
a harmonious transition of offices between
the current incumbents and Mr. Michel,
while taking into account the presence of
controlling shareholders in the Company’s
capital and the application of best Corporate
Governance practices. The Company complies with French regulations in this area
and refers to the AFEP-MEDEF Corporate
Governance Code (4), as amended by the
new recommendations of April 2010.
The Board of Directors met five times in
2010, with an attendance rate of 82%. Five
meetings are planned in 2011.
(4)
This is available from the website
www.imerys.com, “Our Group / Corporate
Governance” section.
IMERYS IN 2010
07/04/11 15:14
SPECIALIZED COMMITTEES
Under the responsibility of the Board of Directors,
the specialized Committees have an advisory role.
They give the Board the benefit of their opinions
and recommendations in preparing its decisions.
Strategic Committee
Audit Committee
Aimery Langlois-Meurinne, Chairman (1)
Jacques Drijard, Vice-Chairman
Aldo Cardoso* (1)
Ian Gallienne
Jocelyn Lefebvre
Eric Le Moyne de Sérigny
Jean Monville*
Olivier Pirotte
Amaury de Sèze
Aldo Cardoso*, Chairman (1)
Jocelyn Lefebvre
Jean Monville *
[FOCUS]
The Committee examines Imerys’
annual and semi-annual corporate
and consolidated financial statements,
controls the relevance and consistency
of accounting methods and examines
the Group’s debt position. It controls the
process for producing and disseminating
accounting and financial information
and supervises related communication
policy and procedures and checks the
consistency and relevance of published
information. This Committee selects and
recommends candidates for Statutory
Auditor positions. It examines the
schedule and results of work by internal
and external auditors and by Internal
Control. It reviews the Group’s main
legal or financial risks and the related
internal controls or policies on prevention
and insurance. The Audit Committee
also supervises the orientations and
achievements of the Group’s Sustainable
Development policy.
Imerys now updates the analysis
of its main risks annually and
checks that the action plans
needed to improve their control
are gradually implemented.
The approach and results are
reviewed and approved by
Executive Committee members,
then presented to the Audit
Committee.
The Committee examines the Group’s
industrial, commercial and financial
strategic orientations and checks
that the strategy set by the Board
of Directors is implemented by the
Executive Management. It also
examines the main risks factor for
the Group and the related internal
controls in the following fields: external
environment (investor relations, market
positions), internal processes (financial
resources management, human
resources potential, mineral reserves
and resources) and management
information (management control and
financial reporting, capital projects).
The Strategic Committee met seven
times in 2010, with an 86% attendance
rate. Seven meetings are planned
in 2011.
Appointments and
Compensation Committee
Aimery Langlois-Meurinne, Chairman (1)
Robert Peugeot *
Jacques Veyrat * (1)
The Committee gives an opinion
on the composition of the Board of
Directors with respect, in particular,
to the shareholding of the Company,
the proportion of men and women
and the independent status of each
Director. It also studies the appointment
proposals of Directors and members
of the Executive Management, their
compensation as well as the general
compensation and retention policy
for top managers (grant of stock
subscription or purchase options, or
performance shares in the Company).
The Committee met five times in 2010
with an attendance rate of 93%. Five
meetings are scheduled in 2011.
Statutory Auditors
Acting: Ernst & Young et Autres
Represented by François Carrega
Alternate: Auditex
Acting: Deloitte & Associés
Represented by Arnaud de Planta
Alternate: Cabinet BEAS
IDENTIFYING RISKS
Substantial internal
communication efforts are made
to ensure the Group’s charters
and main policies are applied.
Imerys is currently reviewing its
general compliance program,
including the prevention of fraud
and corruption risks, which
should lead to new actions
being taken from 2011.
The Group is also continuing
its program of regular selfassessments on the main line
and support processes that
can generate material risks for
the Group in its main entities
(approx. 65% of consolidated
sales). Since 2010, the Group’s
smallest legal entities also go
through this self-assessment in
rotation, on a more limited basis
that is better suited to their size.
* Independent members
(1)
Term of office as Director expires following
the Shareholders’ Meeting of April 28, 2011,
at which its renewal will be proposed.
The Appointments and Compensation
Committee met four times in 2010 with
a 100% attendance rate. Two meetings
are scheduled for 2011.
17
08/04/11 17:25
P20
STRENGTHENING
leadership to serve
customers
P24
INNOVATING
to speed up
growth
P30
P32
MAKING
a long term
commitment
DEVELOPING
talents to prepare
for the future
18
IMERYS IN 2010
07/04/11 15:14
SOUND
STRATEGIC CHOICES
P28
SUPPORTING
customers and winning
new markets
Imerys’ efficient, responsive
industrial assets enabled
it to take full advantage
of the economic upturn
in 2010.
Profitability improved
significantly and the Group
bolstered its leadership while
keeping up its development
projects. In this way, Imerys
continues to optimize its
customer relations, based on
understanding their needs
and sharing common goals.
It is also looking ahead with
many promising innovations
and implementing its
Sustainable Development
policy, founded on a culture
of initiative.
19
07/04/11 15:14
SOUND STRATEGIC CHOICES
STRENGTHENING
LEADERSHIP
TO SERVE CUSTOMERS
Every year Imerys bolsters
its global leadership by improving
the management of its deposits,
the deployment of its industrial
network close to markets, and the yield
and quality of its production. These
efforts were kept up in 2010 against
a backdrop of recovering demand.
merys’ leadership positions are based on a model that is
unmatched worldwide: converting industrial minerals into high
value-added components that are critical to the performance
and quality of our customers’ products. Imerys’ specialties are
used in many applications in daily life including construction,
paper, packaging, paint, plastics, ceramics, telecommunications,
transport, energy and personal care. The Group guarantees a
long-term supply for these durable, promising sectors through
its unique range of 29 minerals, almost all produced from its
116 mining sites.
I
Developing leadership in growing zones
573
million tons
MINERAL RESERVES (1)
1
,413
million tons
MINERAL RESOURCES (1)
(1)
Reserves and resources as defined by PERC,
which came into force in January 2009 in
compliance with CRIRSCO (Committee for Mineral
Reserves International Reporting Standards)
international reporting principles.
20
In Minerals for Ceramics, Refractories, Abrasives & Foundry,
Imerys is a leader with significant positions. Its strengths are
the control of highly complex industrial processes using rare
and geographically balanced mineral reserves – in the United
States, South Africa, the United Kingdom, France and China
in particular – and high-quality customer service. All these
advantages enable Imerys to seize the fast growth of emerging markets by developing exports to those zones, such as
Minerals for Ceramics in the Middle East and North Africa, and
through industrial facilities located close to customers. In China,
a new andalusite production plant came on stream near the
deposit in 2010. This refractory mineral’s excellent heat shock
resistance improves the efficiency of blast furnaces and other
high-temperature facilities. This market is growing in China and
was previously served from South Africa. Another significant
trend is the development of promising segments such as the
use of technical ceramics for solar power.
Deeper, broader markets
Taking advantage of continued firm demand in South America
and Asia and an upturn in Europe and the United States,
the Performance & Filtration Minerals business group is reaping
the benefits of its recent upgrading investments, particularly
at the Lompoc, California plant. Several sites completed their
ramp-up in 2010 while reducing their costs. The business group
continues to develop new applications. Carbonates for plastics
are already used in PVC pipes, plastic bottles and film. Now they
can be incorporated directly into polypropylene, nylon and other
non-woven fibers. This technology opens up prospects on the
cleaning and personal care markets.
IMERYS IN 2010
07/04/11 15:14
Greater presence on expanding markets
In Pigments for Paper, European and North American markets
are structurally in slow decline, sales in emerging countries continue to grow, particularly in Asia. After opening two plants in
India and China in 2009, Imerys is bringing a new unit on stream
in this last country in 2010. Another strategic avenue is growth on
the packaging market. Imerys’ unique multi-pigment approach
and its world #1 and #2 positions in kaolin and calcium carbonate, respectively, enable it to offer high value-added solutions.
For example, BarrisurfTM and E-TypeTM, which form a barrier
against water, gas and grease kept up their sales momentum
with success in food packaging in particular. They are recyclable and improve the chain’s carbon footprint, an essential
criterion for papermakers. The third avenue is an innovation
drive to increase the share of minerals in paper composition
as a substitute for paper fiber and certain chemicals, with very
promising industrial results.
[FOCUS]
1. Villach Minerals for Abrasives plant (Austria)
2. Sandersville kaolin plant (USA)
LEADERSHIP BUILT
ON LONG-TERM RESERVES
In response to the upturn in demand, Imerys’
geologists focused their efforts on exploration
in order to “prove” additional reserves or
resources and add tonnage at least equivalent
to the Group’s consumption to its portfolio.
New mining campaigns were launched with the
ramp-up of the Milas pit (feldspar, Turkey), the
extension of the Kavala site (carbonates, Greece),
continuation of work at Zongshan (carbonates,
China) for operations from early 2011, a new
mining plan in Ipoh (carbonates, Malaysia) and
development of Brazilian kaolin reserves with
the acquisition of PPSA. Imerys continues to roll
out best practices and bolster its teams, with
around 20 new specialists increasing the number
of its geoscientists to 115. Launched in 2004,
the multiannual program for auditing the Group’s
main units shows significant progress in resource
reporting in line with the mining code in force,
as well as better management for sustainable,
optimized operation of those resources.
A technological edge
In France, the upturn in single-family housing sales observed in
2010 should lead to a rise in construction starts in the coming
quarters. The technological advantages of clay solutions (bricks
and roof tiles) and solar roofing should also continue to benefit the Group as new, increasingly stringent standards come
into force for low-consumption buildings. With benefits in terms
of insulation, heat inertia and healthiness, clay building materials are energy-efficient and give superior thermal comfort.
The range was enhanced in 2010 with IntuitysTM. The healthy,
insulating, easy to fit and long-lasting clay partition has enjoyed
great success since its launch.
Mainly supplying, steel, aluminum, cement and glass makers,
Calderys’ Monolithic Refractories are taking advantage of
a European upturn and firm growth in India and China.
In 2010, the speed at which teams satisfied customers who
were bringing their blast furnaces back on stream accelerated
the improvement in operating performance. Launched in 2009
to improve the profitability of customer facilities, the CaldeTM
quick-dry concrete range also met their needs perfectly in the
recovery phase by helping to shorten production cycles.
21
07/04/11 15:14
CLOSE-UP
DEVELOPMENTS
OF YEAR 2010
Plants and port terminals Imerys RCC and PPSA (Brazil)
The Group’s activities achieved their
good performance in 2010 while
working on major development projects,
particularly in fast-growing markets.
Major capital projects were completed
in China, India, Brazil and South Africa.
Emerging countries now account for
26% of the Group’s outlets.
21%
INCREASE IN SALES
22
Brazil
ACQUISITION
OF PPSA
In 2010, Imerys acquired the Brazilian
company Pará Pigmentos SA (PPSA),
along with mining rights in Pará State.
In this country with firm growth, the
operation enhances the Pigments for
Paper business group with a large
kaolin deposit, a conversion unit
and logistical facilities (pipeline and
port terminal) close to its industrial
activities.
As a result, the business group’s
supply of white pigments for its global
paper and packaging markets will
be significantly more secure and its
control over long-term mining costs
will be greater.
IMERYS IN 2010
12/04/11 18:40
India
A STRONGER
ORGANIZATION
IN INDIA
With its firm industrial development
and growing domestic consumption,
India is another promising market
for Imerys. The Group’s growth
gained further momentum with the
appointment of Umesh Deveshwar
as Chairman of Imerys India from
January 1, 2011. He works to develop
Imerys’ businesses by spotting
opportunities and contributing to the
definition of priorities and the related
strategies. His role is also to enhance
the Group’s image and represent it
with the various stakeholders.
China
EXPANDING THE INDUSTRIAL NETWORK
Imerys’ growth in China follows its
rationale of decentralized organization,
with the Group’s Chinese activities
implementing a market-focused strategy.
A country management team dedicated
to the Group’s development was set up
in early 2010 to strengthen its image with
partners and public authorities. It also
helps to improve sales synergy between
the different activities, particularly
through Imerys Astron China’s vast
domestic distribution network.
The Group’s greater presence makes
understanding local manufacturers
easier in order to deliver relevant
responses to their needs. Imerys is now
in a better position to sell its high valueadded products in a country where
consumption is growing constantly.
Major progress was made in 2010.
A new precipitated calcium carbonate
(PCC) facility was opened in Yueyang
(Hunan). This joint venture with Tiger
Forest & Paper is next to its Yueyang
Paper plant. In this way Imerys is
contributing to and benefiting from
the growth of a major integrated
Chinese paper group, from forest to
pulp and paper manufacturing. The
Yilong (Xinjiang) plant, which produces
andalusite mined from the nearby
deposit, started up early in the year.
This appointment is also a milestone
in Imerys’ operational development
in India. Four Pigments for Paper
production units have been opened
since 2004, Ace Refractory, acquired in
2007, has been integrated into Calderys
and a specific team was set up in 2010
for Performance & Filtration Minerals
to support the activity’s swift growth
in the country.
With its cutting-edge technology, Imerys
develops a high-quality offering that
is suited to the specific demands of
Chinese manufacturers and improves
their performance.
South Africa
ANDALUSITE DEPOSIT EXTENDED
Imerys operates several andalusite deposits in South Africa, including
Havercroft/Annesley, which produces RandalusiteTM, a unique, world-class
specialty. In a good fit with the Glomel, France and Yilong, China reserves,
this unique major asset is being extended. The substantial operation
is being carried out in close liaison with local authorities, in order to protect
the environment and neighboring communities. In time this development will
lead to new jobs and greater economic fallout for the region. It will also
strengthen Imerys’ global leadership in andalusite. The Group is already the
world’s foremost producer of the refractory mineral used to make refractory
bricks or concretes for steel, aluminum, cement and glass production.
23
07/04/11 15:14
INNOVATING
TO SPEED UP
GROWTH
In line with its leadership positions,
Imerys’ Research & Development
facilities enable it to perfect its offering
and so help customers to improve
their performance. This dynamic
combines expertise in mineral analysis
and conversion with an effective
innovation organization.
ne of the primary goals of Imerys’ research policy is
to improve its customers’ manufacturing processes,
product quality and costs. Through its innovations, the
Group also optimizes its own processes to increase productivity,
reduce energy consumption and carbon emissions and make
better use of natural resources. More recently, a third avenue for
research efforts has gained importance with every year: developing new products for new sectors of business.
O
The constant rationalization and enhancement of the minerals
range and conversion processes also include the prospective
analysis of end markets and applications. With more than
20 years of mineral reserves and resources, the Group
guarantees its customers a durable supply based on long-term
mining and industrial assets.
The long process from idea to market
To implement that strategy, R&D work is managed within each
activity. This decentralization fosters close relations between
research and marketing teams and between production units
and customers, helping to anticipate markets’ future needs.
In total, 270 scientists and technicians work in 7 international
training centers equipped with the best analysis and conversion
tools, as well as 17 regional laboratories with the mission of
adapting solutions to every customer.
This approach has proven effective for a decade. From the initial
idea through to industrial production, a series of stages follows
formalized yet flexible processes. This innovation cycle is seldom
under four years because of the complexity of the processes
used and the technologically advanced nature of the required
products.
Giving minerals maximum value
Imerys’ know-how is based on structural knowledge of minerals
and the accurate appraisal of the properties obtained by their
conversion. Thermal and mechanical strength, rheology, optical
properties, barrier effect and other qualities are developed and
combined. The Group’s ability to blend mineral properties gives
its customers access to significant, quantifiable improvements:
better controlled, more economic production, lower consumption of costly raw materials, better energy efficiency, reduced
emissions and environmental impacts, shorter manufacturing
cycles and greater valued added by products, etc.
1. Lompoc Minerals for Filtration research center (United States)
To obtain the required specifications, a conversion process
is chosen and the mineral selected from the Group’s natural
resources if its intrinsic qualities or economic criteria warrant it.
If not, an external supply source may be preferred.
24
IMERYS IN 2010
07/04/11 15:14
Collective momentum for maximum
creativity
Imerys’ research effectiveness also stems from its teams’ multidisciplinary skills. Projects are managed by portfolio and regular
reviews define technical orientations and resources. Moreover,
management is closely involved and strong ties are maintained
with universities (thesis support, contracting out analysis
resources or complete program sections).
From the outset of a project, marketing specialists support scientists and technicians by helping to find attractive markets
where Imerys projects could be used. They then take part in
assessing every idea to guide research in progress and are
directly involved in product launches by segmenting markets
correctly, identifying customers likely to accept the proposed
innovation, training sales teams and preparing commercial and
technical support material.
The industrialization of new products plays a major role in the
success of the Group’s research programs. Four pilot facilities are dedicated to trial batches and tests at customer units,
essential stages prior to the construction of specific manufacturing lines.
Managed at Group level by the Innovation Department, a
common momentum lets research teams benefit from significant synergy. With a database grouping together the research
reports produced in the past two decades, as well as in-depth
discussions at regular seminars, cooperation between laboratories is constantly growing.
Protected assets
Innovation forms valuable capital for Imerys. That’s why its legal
protection is factored into the product development process
from the outset. These essential assets are protected by a relevant intellectual property policy. More than 3,300 trademarks
are registered or pending, and Imerys holds 810 granted or
pending patents and more than 190 industrial or utility models.
This portfolio is regularly rationalized in order to optimize its
cost. As for Imerys’ name, it is registered as a trademark in 90
countries.
[FOCUS]
A GLOBAL RESEARCH EFFORT
Over the past five years, Imerys
has ploughed back 1% of its sales
on average into its Research &
Development, maintaining that effort
despite the economic crisis.
The 17 regional laboratories located
near customers and in development
zones (5 in Asia-Pacific) gradually
take over the work done in the 7
main historical research centers
(Refractories, Abrasives and
technical Ceramics in Villach, Austria,
Performance and Filtration Minerals
in Lompoc, United States, processes
and kaolins for Paper and Packaging
in Sandersville, United States,
Monolithic Refractories in SaintQuentin-Fallavier, France, Minerals
for Ceramics and bodies in Limoges,
France, kaolins and carbonates
for Paper, Performance Minerals
in Par Moor, United Kingdom, and
Graphites and Carbons in Bodio,
Switzerland).
270
SCIENTISTS
AND TECHNICIANS
2. Barcarena Pigments for Paper laboratory (Brazil)
3. Par Moor research center - Cornwall (United Kingdom)
25
07/04/11 15:14
CLOSE-UP
INNOVATIONS THAT
MAKE THE DIFFERENCE
Par Moor research center
- Cornwall (United Kingdom)
Imerys’ innovative solutions reduce
the environmental impact of its products
throughout their lifecycle while helping
to improve its customers’ creativity,
quality yield and ease of production.
Here are a few examples of products
launched by the different activities in 2010.
Performance
Minerals
FIBERLINK™
CARBONATES
FOR HOUSEHOLD
HYGIENE
In Performance Minerals,
FiberLink™ 101 S enhanced the
range of calcium carbonates for
nonwoven fibers. These are used to
make disposable wipes for cosmetics,
personal care and household products.
The new products deliver major
benefits: more efficient manufacturing
processes, better finished product
functionality, lower environmental
impact and carbon footprint, and
a significant proportion of organic
compounds replaced by minerals.
26
IMERYS IN 2010
07/04/11 15:14
Minerals for Ceramics
A DREAM COME
TRUE FOR CERAMIC
PRODUCERS
With the development of “Super Fine
Fireclay™” (Super FFC, a superfine
grogged stoneware), Imerys is making a
dream come true for manufacturers
of top-of-the-range sanitaryware.
The solution combines the benefits
of two previously incompatible
technologies:
• The “vitreous” sanitaryware (or glazed
ceramic sanitaryware) technique delivers
good surface quality but requires
long mold development times and is
unsuitable for certain shapes;
• The traditional technology of fine
fireclay makes producing complex
molds easier by reducing post-firing
deformation, but does not result in an
attractive surface without the application
of an intermediary layer known as an
engobe between the ceramic body and
the enamel.
Marketed as a ready-to-use prepared
body, Imerys “Super FFC” delivers easy
molding while guaranteeing flawless
surface quality. The innovation was
presented at the Tecnargilla trade fair in
Rimini (Italy) in 2010 to great success.
This confirms the interest in the Group’s
broad product range (kaolin, ball clay,
feldspar, chamottes) of raw materials
for ceramics and the future growth
potential.
Pigments
for Paper
MINERALS IN A BOX
Materials
& Monolithics
INSULATION
BRICKS AND PAINT
GUNNING
LinerMAX™ is a new converted
kaolin designed for linerboard
production. When added as a filler
in proportions of 3-5%, it maintains
the mechanical properties of outer
board layers while reducing the energy
needed for production. As part of its
organic components are replaced
by a mineral product, linerboard
containing LinerMAX™ needs less
steam to dry out.
This innovation shows how Pigments
for Paper technologies are spreading
into packaging. Kaolin was not used
in linerboard – a 17 million ton market
in North America alone – before, so
LinerMAX™ has tremendous potential.
OpaciCote™, a filler for white recycled
paper board, was also launched
in 2010. This kaolin blend optimizes
the production cost of white board
by replacing more expensive chemical
additives.
Clay roof tiles and bricks’ (Imerys TC)
comprehensive offering anticipates
changes to norms. Designed to meet the
demands of low-consumption buildings
and regulations that will apply from 2012,
Optibric PV S25 improves the thermal
performance of insulation-added walls
and satisfies future European seismic
standards (eurocodes 8). Its thermal
resistance of 1.61 m2.K/W is equivalent
to 5 cm additional insulation.
Another new development in the Monolithics activity is the development of paint
gunning, a new application technique
particularly used by the incineration
industry. This innovative process makes
it possible to apply 20-30 mm layers
of CALDE™ GUN LF 52 AG33.
By strengthening the existing lining,
the product prevents unscheduled
production stoppages. Paint gunning
combines several advantages. As well as
protecting the environment by extending
the lifespan of existing linings, it is highly
economical and simple to use. Moreover,
it works with new, silicon carbide-free
monolithic refractories.
27
12/04/11 18:40
SUPPORTING
CUSTOMERS AND WINNING
NEW MARKETS
Knowing the issues facing each
customer and their own customers,
understanding their expectations
to the extent of anticipating them,
offering them the best solutions
and tailor-made service to help
them in their projects: these are
Imerys’ strengths.
merys provides its customers with far more than just the sale
of products, however sophisticated they may be. Every activity
offers solutions that meet customers’ specific needs in terms
of production, yield, quality, protecting the environment, saving
energy, innovation and, more generally, development.
I
Shared language, common goals
Imerys draws on perfect knowledge of its customers’ sectorial
and geographic markets, but also their specific constraints,
expectations and technologies. That knowledge extends as
far as the needs and characteristics of their own customers,
whether manufacturers or end users. Through a process
that goes beyond commercial and technical support, Imerys’
teams seek to move forward alongside their customers.
Scientific, technical and marketing dialogue in a shared language
often leads to the research and development of innovative
solutions under partnerships. These result in the design and
launch of new applications in line with the underlying trends on
end markets.
1. Kaolin loading at the PPSA logistics platform – Pigments for Paper (Brazil)
2. Lixhe calcium carbonate plant – Performance Minerals (Belgium)
28
IMERYS IN 2010
07/04/11 15:14
Close to all customers,
attentive to each one
Because of the variety of its markets, Imerys has a wide,
diverse customer base. Nevertheless, the Group listens to and
supports customers on a personalized basis with a specialist
assigned to each sector. Drawing on great technical skills, he
or she analyzes the customers’ needs. Together they make a
forward-looking analysis of the customer’s positioning, strategy
and evolution. In this way, Imerys specialists examine the best
solutions for the customer’s lasting satisfaction and offer new
development avenues such as using minerals as a substitute
for other components.
This customer-focused organization is supported by decentralized management, a worldwide network of bases and a global,
flexible and efficient logistics organization.
Full ranges of solutions
For some markets, Imerys develops full ranges of solutions. Its
grasp of the properties of very different minerals and its diverse
technological skills enable the Group to propose complementary
offerings. The solutions it develops are unique on the market and
enable customer to stand out from the competition.
For example, Calderys, the world leader in refractory solutions,
supplies customers with turnkey solutions that are suited to
their sites’ specificities, from monolithic refractory formulation
through to fitting in furnaces. To complete the offering,
subcontractor and fitter training is organized through the
Calderys Academy.
3. Kaolin logistics platform (Belgium)
[FOCUS]
The combination of different minerals in the same product
is another promising development avenue for customers.
For example, their multiple properties reduce the number of steps
in an industrial process. With half a dozen minerals previously
reserved for other markets, the Group recently entered the oil
drilling market with an extensive offering.
Responsiveness driven by decentralization
TANGIBLE BENEFITS
FOR EVERY CUSTOMER
Every application delivers significant
progress: firing kilns at lower
temperature, stronger and better
insulated furnaces for steel, cement
and glass, faster, more reliable
polishing, high quality plastics with
just 30% oil derivatives, paper and
packaging that resist humidity and
cost less thanks to the inclusion of
minerals, brighter or more matt paint,
longer-lasting batteries or healthier
houses with walls and roofs that are
quick to build, insulate perfectly and
even produce energy.
The Group’s organization is a major advantage in ensuring its
teams are empowered and able to act quickly. In 2010, this was
proved when customers quickly resumed production. Thanks
to their responsiveness and sense of service, Imerys’ teams
delivered the products and services customers needed and
worked alongside them to solve any difficulties arising as they
fired up their production lines.
20%
LESS THAN
TOTAL WEIGHT OF IMERYS’
10 BIGGEST CUSTOMERS
IN ITS SALES, REFLECTING
THE DIVERSITY OF THE
GROUP’S OUTLETS
29
07/04/11 15:14
MAKING
A LONG-TERM COMMITMENT
In line with its long-term growth
strategy, Imerys has formalized
a determined Sustainable Development
process. Meeting its responsibilities
to stakeholders is a crucial factor
in the Group’s continued development.
ith a presence over the world and leadership in its businesses, Imerys implements a Sustainable Development
strategy that matches its scale and ambitions.
The Group’s policies in this area are formalized and defined for
specific axes. For each axis, the issues, specific priorities, goals
and required actions are analyzed and the results are monitored.
W
Specific goals on major issues
Sustainable Development strategy is defined by the Chief
Executive Officer, based on the recommendations of a Steering
Committee that includes three Executive Committee members.
Every quarter, the Steering Committee measures progress and
adapts programs based on the work of a crossfunctional team.
The Board of Directors is attentive to the results obtained and has
tasked the Audit Committee with an annual review.
Imerys’ commitments concern the following axes:
• The environment, particularly the control of the Group’s impacts
and responsible exploitation of mining reserves,
• The health and safety of teams in their workplace,
• Human resources, with the aim of enabling all employees
worldwide to progress in their role, evolve and benefit from
effective social benefits that are consistent with the country in
which they work,
• Relations with the communities where the Group is based,
• Innovation to develop environment-friendly processes and
products,
• Corporate governance, with a concern for transparency, efficiency and compliance with best practices.
Meeting stakeholders’ expectations
In each of these axes, stakeholders – employees, communities,
shareholders and civil society as a whole – have many expectations. Giving them tangible responses to satisfy their interests is
an essential condition for the Group’s continued development.
Its performance on environmental and social matters is a key
component of its results.
Internal consultation on a new action plan
Drawn up in 2008, the 2009-2011 Sustainable Development
action plan was ambitious and its implementation has led to
significant improvements. For 2010, 87% of goals have been
achieved. As the plan nears to its end, an internal consultation process will be organized in the second half of 2011 in
order to define the Group’s goals for the next three years.
As part of this exercise, the Sustainable Development
Charter and the Environment, Health & Safety Charter setting out Imerys’ concrete commitments will be reexamined.
The Group is also working to improve the overall efficiency
of its data collection methods in anticipation of the new
regulatory obligations resulting from the “Grenelle II” environmental law (1). Imerys tracks a limited number of performance
indicators that have been selected based on their relevance to
its activities, the directives of the GRI (2) and the Green House
Gas Protocol (3).
(1)
Law passed on July 12th, 2010 forming a “national commitment
for the environment.”
(2)
The Global Report Initiative (GRI) is designed to foster change
that helps to “anchor social and environmental economic reporting
in companies’ practices in the same way as financial reporting
or to ensure their comparability.”
(3)
Global reporting on energy and CO2 emissions.
30
IMERYS IN 2010
12/04/11 19:21
47%
OF THE 66 PROJECTS
IN THE IN-HOUSE SUSTAINABLE
DEVELOPMENT CHALLENGE FOCUSED
ON COMMUNITY RELATIONS
Strengthening safety culture
Imerys’ business demands great attention to safety. The Group,
therefore, fosters a culture that anchors accident prevention in
daily work. Since 2005, a number of strategic initiatives have
supported line managers’ efforts using relevant tools and training.
These include clearly defined safety protocols, a global training
plan, systematic accident analysis, fatal accident prevention,
behavioral coaching and regular audits. The momentum created
by these programs has resulted in a more than 82% reduction
in lost-time accidents. As of December 31, 2010, the lost time
accident rate for Imerys employees was 2.16 and the combined
rate for employees and contractors was 2.39.
In 2011, the Group will again put special emphasis on the
prevention of serious accidents. The “Six Critical Protocols”,
covering the activities related to the highest risk of serious injury
or fatality in mining, will be the focus of monthly self-diagnoses
by each site’s operating managers. The results will be presented
to Executive Management quarterly.
1. Tour of Barcarena Pigments for Paper plant (Brazil)
2. Remediation of a Pigments for Paper quarry (United States)
Strict management
of environmental impacts
The compliance of every mining and industrial site is monitored
through in-depth EHS audits by cross-functional internal teams.
To go beyond compliance, Imerys aims to have an environmental
management system (EMS) set up in every operation. The
establishment of EMS has been supported by specific actions
to raise awareness by providing practical tools on the intranet
and organizing training seminars for the global network. The
status of progress is presented quarterly to the Group’s Executive
Committee.
Rolling out a global process
In emerging countries, close attention is paid to the environment,
as well as health, safety and human rights. During the first year
following a company’s acquisition, an orientation seminar is
organized to roll out the Group’s strategy and practices in the
acquired entity.
[FOCUS]
IMERYS IMPLEMENTS ECO-TOWN
IN CORNWALL
To manage the environmental impact
of mining, a restoration plan is
required for every quarry during
its operation and in preparation
for its closure.
This is the context for the ambitious
Eco-Town project that Imerys
Minerals Ltd is implementing in
Cornwall (UK) in partnership, since
May 2010, with the international
property development group
Orascom. Under the Eco-Bos project
(“bos” is Cornish for “house”), 700
acres of industrial land that belongs
to Imerys and is no longer required
for the Group’s operating needs will
be restored and developed.
31
07/04/11 15:14
DEVELOPING
TALENTS TO PREPARE
FOR THE FUTURE
After a very difficult 2009,
mostly given over to managing
the crisis, all the Group’s resources
mobilized in 2010 to facilitate the
return to growth and plan ahead.
he Group’s teams have to be constantly sustained
and enhanced to ensure its continued growth. Imerys’
development is based on a corporate culture that
encourages initiative, dialogue and diversity, in compliance with
strong ethics.
T
Promoting initiative
Decentralized organization fosters responsibility and responsiveness among teams, who at all times make the decisions needed
to develop new products, adapt manufacturing processes,
optimize customer service or keep costs under strict control.
The brutal economic crisis in 2009 and the often rapid
upturn that followed bore out the soundness of Imerys’ business model but were also a rich source of lessons. The Group’s
employees were able to put their sense of initiative in achieving
ambitious goals.
While volumes remain 15% lower than pre-crisis levels, the financial results obtained in 2010 testify the skill of Imerys’ teams
in all its businesses.
1. Par Moor research center - Cornwall (United Kingdom)
[FOCUS]
ETHICS: A CODE OF CONDUCT
SHARED BY ALL
Available in ten languages, the Imerys
Code of Business Conduct and
Ethics sets out the Group’s ethical
and business conduct principles.
It is shown on Imerys’ web and
intranet sites and made available to
all employees. In 2010, actions to
raise awareness of strict compliance
with the Code were extended with
interactive online training designed for
the main managers. Since its launch
in 2007, all US employees and all
senior managers – a total population
of 1,900 – have benefited from this
training. From 2011, it will be included
in the induction program of every
manager hired.
32
IMERYS IN 2010
07/04/11 15:14
Bolstering teams
in high-growth countries
Imerys also continues to strengthen its workforce in high-growth
countries, which now account for 41% of its personnel, particularly strategic development zones for the Group such as India,
Brazil and China. Combined with the global internship program
for students at leading schools and universities and the quality
of recruitment policy worldwide, the growing mobility and the
multiculturalism of its employees are ensuring the Group has a
well-prepared, dynamic future.
Nurturing talent
Internal mobility is encouraged to promote the Group’s employees
and benefit from shared experience. More than 250 transfers were
made in 2010, including 4 promotions to activity head positions.
These changes are particularly supported by the Imerys Learning
Center’s in-house training programs. Following “Basics of Geology
& Mining”, “Fundamentals of Project Management”, “Essentials of
Industrial Marketing” and “Fundamentals of Finance”, the offering
was enhanced this year with new modules such as “Enhancing
Sales Performance”. In total, 33 sessions were organized in
Europe, North America and Asia.
2. Barcarena Pigments for Paper laboratory (Brazil)
Harmonizing compensation systems
High-quality industrial dialog
Beyond the compliance of compensation systems with each
country’s standards, Imerys continues to methodically examine
benefits (particularly illness, disability and death coverage) in
zones where it is active. Measures have been taken to significantly
improve the content or scope of these programs, in Spain for
example but also in Ukraine and China where Imerys’ presence
is more recent. The information systems used in compensation
review processes continue to be extended and optimized to
harmonize the Group’s practices in this field.
Against the backdrop of a sharp upturn in business, high-quality
dialog was kept up with personnel or union representatives to
avoid calling into question the adaptation efforts made in 2009.
The European Works Council ratified the new agreement on its
workings, duties and powers. To help prepare personnel representatives for their role on the Council, a two-day training session
was organized with a specialized firm prior to the annual plenary
session in October.
[FOCUS]
41%
44%
26%
5%
1%
21%
14%
EMPLOYEES
BY GEOGRAPHIC ZONE
SALES
BY GEOGRAPHIC ZONE
Employees as on December 31, 2010 :
15,090
2010 sales:
€3,347 million
Western Europe of which 20% France
and 8% United Kingdom
United States / Canada
Japan / Australia
Emerging countries
of which 12% China
Western Europe
United States / Canada
Japan / Australia
Emerging countries
FORMAL POLICY ON DIVERSITY
48%
Imerys is a multicultural group
that views the diversity of its
employees as an essential asset.
To develop it further, a specific
policy was presented to the
Executive Committee in 2010.
It is scheduled for implementation
from the beginning of 2011.
Over the medium term, the policy
should enable Imerys to promote
more female profiles in its
operating activities and encourage
representation of minorities.
Another goal is to step up efforts
on integrating disabled personnel.
33
12/04/11 18:40
P36
ACTIVITIES
and results in 2010
P38
SUSTAINABLE
DEVELOPMENT
indicators
P40
RESULTS
by business
group
P44
IMERYS
on the stock
market
34
IMERYS IN 2010
07/04/11 15:14
STRONG
IMPROVEMENT IN RESULTS
P42
FINANCIAL STATEMENTS
(simplified)
Most of the markets served
by Imerys’ mineral specialties
evolved favorably in 2010,
including industrial equipment
manufacturing, printing and
writing paper production,
beverages, personal care
products and building renovation.
The Group’s operating indicators
reflect this upturn: current
operating income and margin
returned to 2008 levels despite
significantly lower sales volumes.
Thanks to high cash generation,
Imerys’ financial situation was
strengthened, giving the Group
more flexibility to continue its
growth. These good results
come with further progress
on Sustainable Development.
35
07/04/11 15:14
STRONG IMPROVEMENT IN RESULTS
ACTIVITIES
AND RESULTS IN 2010
Imerys benefited from improvement on its markets in 2010, together with
inventory rebuilding in industrial chains. The Group also took advantage
of the euro’s competiveness and the dynamism of emerging countries,
where it now makes 26% of its sales. Imerys achieved its operating
margin target and generated substantial cash flow. External growth
policy resumed with the acquisition of Pará Pigmentos S.A., a Brazilian
producer of kaolin for paper, while the Group’s sound financial strategy
allows it to look at new developments.
SALES
CURRENT OPERATING INCOME
€ millions
3,402
€ millions
3,449
483
3,347
2,774
419
415
249
2007
2008
2009
2007
2010
Imerys’ 2010 sales were up €573 million from the previous year
(+ 20.7%). In addition to recovery in demand, a major inventory rebuilding effect contributed to the rise in sales volumes
(€362 million, i.e. + 13.1%). The product price/mix component also improved. Exchange rates fluctuated significantly in
the second half and had a favorable effect for the year
(€134 million). The positive impact of changes in Group structure (€24 million) covers sales by Pará Pigmentos S.A. as from
August 1, 2010, the date of the company’s consolidation, and
reflects the divestment of Planchers Fabre (concrete beams,
France) in May 2009.
2009
2010
Regaining its 2008 level, current operating income(1) rose
68% thanks to the upturn in sales volumes (€161 million) and
strict cost management: in 2010, Imerys kept up more than
half of the €158 million in savings achieved in 2009 through
fixed production costs and overheads reduction plans.
Product price and mix trends were favorable (€27 million) while
variable costs, particularly energy, decreased slightly (€22
million). Foreign exchange and Group structure effects were
limited. At 12.5%, operating margin gained 3.5 points and was
on target.
(1)
36
2008
Operating income before other operating revenue and expenses.
IMERYS IN 2010
07/04/11 15:14
NET INCOME FROM CURRENT OPERATIONS,
GROUP SHARE € millions
CASH FLOW & CAPITAL EXPENDITURE
€ millions
450
317
267
258 238
2008
2009
169
177
119
2007
303
367
240
2010
119
2007
2008
2009
Free current operating cash flow
Booked capital expenditure
The Group’s share of net income from current operations (2) doubled compared with 2009, reflecting the growth in
current operating income. The tax rate worked out at 28.9%,
which represents a current tax charge of €100 million. In line with
the decrease in average financial debt over the period, financial
expenses totaled €75 million (€83 million in 2009).
Net income from current operations per share rose + 93% in
2010 to €3.19 per share, up from €1.66 in 2009. The weighted
average number of outstanding shares was 75,405,857 for the
year (72,054,523 in 2009).
2010
(3)
Free current operating cash flow (3) was higher than pre-crisis
levels. Operating working capital requirements were kept under
control during the upturn and were stable compared with 2009
at 21.8% of annualized sales. Capital expenditure was mainly
given over to facility maintenance and stripping operations.
The booked amount represents 79% of depreciation expense
for the year, compared with 65% in 2009.
Allowing for other operating revenue and expenses (+ €0.5 million), the Group’s share of net income totaled €241 million,
compared with €41 million in 2009.
(3)
(2)
Net income, Group share, before other operating revenue
and expenses, net.
SHAREHOLDERS’ EQUITY & DEBT
FINANCIAL RESOURCES & MATURITY
€ millions
80.7%
101.3%
52.0%
EBITDA minus notional tax on current operating income, changes
in working capital (including 71 M€ in factoring) and paid capital
expenditure.
€ millions
39.7%
2,196
6.4
5.5
4.5
3.8
2,329
2,354
2,345
2,232
2007
2008
2009
2010
1,856
1,664
1,343
1,546 1,566
964
2007
2008
Shareholders’ equity
Net financial debt
2009
873
2010
Debt-to-equity ratio (%)
Substantial generation of free cash flow (4) (€274 million) led to
a reduction in net debt and financed the €76 million dividend
payout with respect to 2009 as well as external growth (mainly
the acquisition of Pará Pigmentos SA (PPSA). Net financial debt
amounted to €873 million as of December 31, 2010, down
€92 million from the previous year.
Financial
resources
Average maturity of financial
resources as of December 31
As of December 31, 2010, Imerys had access to total financial
resources of €2.2 billion, of which €1 billion available resources.
No significant repayment is due before the end of 2012.
Imerys has all the financial flexibility needed to continue its development and benefit from any opportunities that arise.
At year-end 2010, net financial debt represented just 39.7%
of net worth and 1.4x EBITDA.
(4)
Free current operating cash flow, minus financial expense net of tax
and other changes in working capital.
General note: 2007 and 2008 data, restated for the presentation changes intended to improve the presentation of the Group’s financial statements
in accordance with changes in majority practices among the main issuers listed on NYSE-Euronext in Paris.
37
07/04/11 15:14
SUSTAINABLE
DEVELOPMENT INDICATORS
Imerys’ commitment to Sustainable Development was reflected
in further progress in 2010, with 87% of targets achieved.
Here are a few examples.
SAFETY AND HEALTH DATA
SAFETY
FREQUENCY RATE (1)
Since the launch of the Group’s safety programs in 2005, the
lost-time accident rate has been cut by 82%.
8.10
A highlight of 2010 was a further reduction in the frequency rate,
which was reduced to 2.16 at the end of December 2010.
5.67
4.68 4.22
HEALTH
Imerys implements measures to improve its personnel’s work
environment and audits to verify compliance with applicable
local regulations. An industrial hygiene protocol sets forth
requirements to identify, assess and control potential sources
of exposure to hazardous substances. Preventing exposure to
noise and vibrations, and improving working conditions and
ergonomics are also priorities for the Group. In 2010, training
on potential risks with respect to noise and dust was included
in EHS universities and a webinar on workplace health was
attended by 100 operating and EHS managers.
3.96
2.86
2007
2008
Imerys employees
3.36
2.16
2009
Other employees
2010
(2)
(1)
Frequency rate: (lost-time accidents x 1,000,000) / hours worked.
(2)
Employees of a company under contract with Imerys, for example
sub-contractors or agency workers, tasked with a specific operation
on site or providing a service.
ENVIRONMENTAL DATA
WATER CONSUMPTION AND WASTE PRODUCTION
TOTAL WATER CONSUMPTION
Water pumped to keep quarries in good condition and to
transform minerals is stored in retention basins, then reused
or released after treatment and purification. After an inventory
was drawn up in 2009 of the Group’s plants that consume the
most water, a webinar was organized to foster the sharing of
best practices.
(millions of liters)
Imerys’ activities produce relatively small quantities of industrial
waste (99% of which is non-hazardous), as its mineral
conversion processes are mainly mechanical and physical.
The aim of Imerys’ processing is to separate minerals with value
for customers from those with no market value. The latter are
stored for future use or used as backfill for site remediation.
38
76,991
63,237
2007
2008
49,693 53,303
2009
2010
IMERYS IN 2010
07/04/11 15:14
ENVIRONMENTAL DATA
ENERGY AND CARBON EFFICIENCY
TOTAL ENERGY CONSUMPTION (1)
The use of fuel for conversion operations is the primary source
of the Group’s greenhouse gas emissions (50% of total). Indirect
emissions with respect to the generation of electricity consumed
for production is the second largest source (40% of total). Finally,
some of the processes themselves cause CO² emissions (10%
of total).
(Thousands of Gj)
43,223 40,511
21 Imerys industrial sites take part in the greenhouse gas emission
trading scheme in place in the European Union. In 2010, those
sites’ emissions were below the allocated quotas.
Production activity increased in 2010, without reaching 2008
levels. Nevertheless, Imerys succeeded in achieving in 2010 a
2.3% improvement in energy efficiency compared with 2009.
Specific CO2 emissions from fossil fuels and processes decreased
2.5% from 2009, reflecting a slight improvement in the energy
mix. The relative share of consumed biomass was stable at 4%
of total energy consumption.
36,563
28,265
2007
(1)
2008
2009
2010
Net of resold electricity.
BREAKDOWN BY ENERGY SOURCE
(%)
4%
33%
25%
Electricity
Natural gas
Other fossil fuels
Biomass
38%
ENVIRONMENT MANAGEMENT SYSTEMS
The compliance of every mining and industrial site is monitored
through in-depth EHS audits conducted by crossfunctional
internal teams.
NUMBER OF SITES WITH ENVIRONMENTAL
MANAGEMENT SYSTEMS
160
In 2010, the focus was on the development of environmental
management systems (EMS) covering all issues and risks. A selfappraisal procedure was initiated centering on eight pillars of an
effective EMS. The results of the self-appraisals are presented
quarterly to Management. As at the end of 2010, 160 sites had
an EMS, up 50% from 2009.
103
91
37
2007
BIODIVERSITY
Imerys strives to reduce negative impact on biodiversity by
keeping the surface area of affected zones to a minimum, continuously remediating it whenever possible and taking offset
measures. The Group conducted a biodiversity sensitivity study
of European sites in 2009 and this was extended to Brazil and
the United States in 2010. This study will be further extended
in 2011 to cover Asia-Pacific. Approximately 18% of the sites in
these regions are close to zones that are considered of interest
in terms of biodiversity.
70
61
54
90
107
59
42
2008
48
2009
2010
Certified ISO 14001 or EMAS (1)
Sites with the 8 pillars of a good EMS
(1)
EMAS: Eco Management and Audit Scheme (European standard).
See all the Group’s Sustainable Development goals and objectives at www.imerys.com
39
12/04/11 18:40
RESULTS
BY BUSINESS GROUP
MINERALS FOR CERAMICS,
REFRACTORIES, ABRASIVES & FOUNDRY
PERFORMANCE & FILTRATION
MINERALS
8%
29%
Minerals for Ceramics
Minerals for Refractories
& Oilfield Minerals
Fused Minerals
Graphite & Carbon
36%
Performance Minerals
Minerals for Filtration
44%
56%
27%
104
24
5,664 54
17
2,769
INDUSTRIAL SITES
COUNTRIES
EMPLOYEES
COUNTRIES
EMPLOYEES
€1,105 million
SALES
(32% of Group total)
INDUSTRIAL SITES
€595 million
SALES
ECONOMIC ENVIRONMENT
Markets for Refractories & Abrasives (steelmaking, automotive,
industrial equipment) and Graphite (mobile energy, etc.), which
were heavily affected by the global economic crisis, benefited
in 2010 from an upturn in demand that came with an inventory
rebuilding effect. Recovery was less marked on Minerals for
Ceramics markets, with construction in developed countries
improving only slightly.
After the slump observed in 2009, Performance and Filtration
Minerals markets were healthier in 2010. Trends in fastmoving consumer goods (beverages, edible oils, personal care
products, etc.) and specialties for industry (plastics, rubber,
filtration, catalysis, etc.) were positive. Construction grew
slowly in Europe, with however no detectable improvement
in the United States.
PERFORMANCE
PERFORMANCE
The €311 million increase in sales (+ 39.1%), driven by the
sharp rise in volumes, also benefited from higher relative growth
in value-added products. The currency translation effect was
positive (€32 million).
Sales increased by €94 million (+ 19%) compared with 2009
thanks to the upturn in sales volumes and a positive price/mix
effect. The exchange rate effect was + €35 million.
Combined with control of fixed costs, higher volumes explain the
threefold increase in current operating income to €135 million.
Operating margin improved from 5.5% in 2009 to 12.2% in 2010.
In response to the rise in global demand, capital projects for
development resumed in andalusite (a refractory mineral used
in steel, aluminum, cement and glass making): a new plant was
opened in China and capacity increased in South Africa. The
Ceramics activity is growing in new segments (electro-porcelain,
glass fiber) and extending into emerging economies.
40
Current operating income totaled €65 million: higher activity
came with a controlled rise in fixed production costs and
overheads. Operating margin doubled to 10.9% (5.4% in 2009).
The industrial optimization plan for Filtration Minerals in the United
States, particularly the renovation of the Lompoc diatomite plant
(California), enabled the activity to serve demand efficiently with
better profitability in 2010.
IMERYS IN 2010
07/04/11 15:14
PIGMENTS
FOR PAPER
MATERIALS
& MONOLITHICS
18%
8%
46%
Europe
North America
South America
Asia-Pacific
Building materials
Refractory Solutions
56%
44%
28%
47
19
2,364 40
16
4,028
INDUSTRIAL SITES
COUNTRIES
EMPLOYEES
COUNTRIES
EMPLOYEES
€767 million
SALES
INDUSTRIAL SITES
€923 million
SALES
Global production of printing and writing paper, which slumped
heavily during the crisis, gradually picked up in 2010 (+ 6.1%).
Demand was firm in emerging countries (+ 5.7%) and mature
markets recovered well (+ 6.5%). European papermakers also
benefited from higher competiveness thanks to the euro’s depreciation against the US dollar.
In France, advance indicators for single-family housing (houses
sales, construction permits) improved slightly, without however
any impact on housing starts, which only grew + 1.7% in 2010.
Affected by particularly adverse weather conditions in January,
February and December 2010, renovation decreased slightly.
PERFORMANCE
Sales increased by €135 million (+ 21%), factoring in + €42 million exchange rate impact and a + €31 million structure effect
resulting from the consolidation of PPSA since August 1, 2010.
At €76 million, current operating income benefited from the
upturn in sales and the control of fixed costs, together with a
decrease in variable costs. The operating margin worked out
at 9.9% (6.6% in 2009).
Keeping up its development, the business group brought a new
calcium carbonate unit on stream in China to serve a local customer and enhanced its mining, industrial and logistical assets
in Brazilian kaolin with the acquisition of PPSA.
The sharp upturn in steelmaking drove business in Monolithic
Refractories. Other high-temperature industries (cement, incineration, petrochemicals), which had been less affected by the
crisis, grew slightly.
PERFORMANCE
The business group’s sales increased by €47 million (+ 5.4%),
including a + €26 million currency translation effect and the
- €6 million impact of changes in structure (divestment of a concrete flooring activity in May 2009). At comparable structure and
exchange rates, firm business in Monolithic Refractories offset
lower sales volumes in Building Materials.
Current operating income, at €188 million, rose + 11.6%
thanks to strict cost management. Operating margin was 20.3%
(19.2% in 2009).
Industrial capital expenditure was restricted to maintenance as
production facilities have been upgraded in recent years.
41
07/04/11 15:14
FINANCIAL
STATEMENTS (simplified)
CONSOLIDATED INCOME STATEMENT
(€ millions)
2010
2009
2008
2007
3,346.7
2,773.7
3,449.2
3,401.9
621.0
416.6
573.4
649.6
Current operating income
419.0
248.9
414.6
482.9
Current financial income (expense)
(74.7)
(83.4)
(47.1)
(53.4)
Current tax
(99.5)
(46.2)
(98.0)
(110.1)
(4.5)
-
(2.4)
(2.7)
240.3
119.3
267.1
316.7
0.5
(78.0)
(105.8)
(32.5)
240.8
41.3
161.3
284.2
2010
2009
2008
2007
Net non-current assets (4)
2,726.1
2,542.6
2,654.0
2,590.5
Current assets
1,164.6
959.3
1,328.9
1,305.5
Other assets
182.7
136.6
128.2
123.1
Cash (5)
353.4
292.8
236.8
183.2
4,426.8
3,931.3
4,347.9
4,202.3
2,196.4
1,855.8
1,546.3
1,663.6
298.7
280.2
307.7
343.0
1,226.2
1,255.2
1,802.9
1,526.2
705.5
540.1
691.0
669.5
Sales
EBITDA(1)
(2)
Minority interests
(3)
Net current income, Group’s share
Other revenue and expenses, net, Group’s share
Net income, Group’s share
(1)
Current operating income plus depreciation expense and provisions, net of reversals.
Operating income before other operating revenue and expenses.
(3)
Net income before other operating revenue and expenses, net.
(2)
CONSOLIDATED BALANCE SHEET
(€ millions)
Assets
Total
Liabilities and shareholders’ equity
Net worth (including minority interests)
Provisions
Gross financial debt
(5)
Other liabilities
Total
4,426.8
3,931.3
4,347.9
4,202.3
(4)
Of which mining assets
453.5
377.2
395.6
399.6
(5)
i.e. net financial debt:
872.8
964.3
1,566.1
1,343.0
General note: 2007 and 2008 data restated following the presentation changes intended to improve the presentation
of the Group’s financial statements, in accordance with the evolution of majority practices by the main issuers
listed on NYSE-Euronext in Paris.
42
IMERYS IN 2010
07/04/11 15:14
€453 million €873 million €91million
DIVIDEND DISTRIBUTION
PROPOSED FOR FINANCIAL 2010
NET FINANCIAL DEBT
MINING ASSETS
CASH FLOW STATEMENT AND CHANGE IN NET FINANCIAL DEBT
(€ millions)
EBITDA
2010
2009
2008
2007
621.0
416.6
573.4
649.6
(121.0)
(69.5)
(110.6)
(124.1)
Current operating cash flow
500.0
347.1
462.8
522.6
Change in operating WCR (1)
(45.7)
235.3
32.3
(4.9)
(154.9)
(138.4)
(248.8)
(352.6)
303.1
450.3
257.8
174.1
(46.6)
(50.4)
(29.7)
(41.2)
17.7
42.1
(48.3)
(15.6)
Current free cash flow
274.2
442.0
179.8
117.4
External growth / Divestments
(66.7)
4.9
(154.6)
(192.1)
Non-recurring cash flow
(15.8)
(44.2)
(42.4)
(41.2)
Dividends
(76.3)
(63.6)
(119.7)
(116.0)
Notional tax on current operating income
and other depreciations
Paid capital expenditure
Current free operating cash flow
(2)
Financial income (expense), net of tax
Change in other WCR (1) items,
deferred taxes and other
Capital transactions
Foreign exchange / Other movements
Decrease (increase) in net financial debt
(3)
(4.5)
248.8
(5.0)
(39.9)
(19.4)
13.9
(81.2)
14.9
91.5
601.8
(223.1)
(256.9)
(1)
Working capital requirements
Of which divestments and subsidies
(3)
Mainly rights issue of June 2, 2009
(2)
To find out more, www.imerys.com/Registration Document 2010 – chapter 5.
43
07/04/11 15:14
IMERYS
ON THE STOCK MARKET
On difficult financial markets in 2009, Imerys’ shareholders
showed their confidence in the Group by contributing
to the success of its rights issue. In 2010, stock markets
remained volatile. Imerys stock gained almost 19%,
ending the year at €49.89.
Shareholder information and services
Imerys is attentive to its relations with shareholders and strives
to keep them informed of its activities, strategy, investments,
results and outlook. That aim leads the Group to circulate
several communication vehicles that involve shareholders
in its life:
• a Letter to Shareholders published three or four times a year;
• an annual business report in brochure form;
• a Registration Document – Annual Financial Report, plus a
first-half financial report;
• a Sustainable Development report, published every two years;
• the www.imerys.com website that gives access at all times to
the Individual Shareholders Guide and to all Imerys’ regulated
financial information over the past five years.
Registering shares in the shareholders' own name eliminates
custody fees and entitles shareholders to double voting rights
after two years. Shareholders thus registered receive General
Shareholders’ Meeting notices and other information on the
Group, and can consult their securities account on the secure
website www.olisnet.com/actionnaire. The value of their securities account, their latest stock movements, the availability of
their shares, their voting rights and the prices and characteristics
of the securities in their portfolio are all given. All documentation on General Shareholders’ Meetings is also provided on the
website, where shareholders can also vote online.
To register in their own name, shareholders should make a
request to their financial intermediary who will contact CACEIS
Corporate Trust, which will send shareholders any documents
needed for registration.
Relations with the financial community
Imerys keeps up ongoing, open and transparent relations with
the entire institutional and socially responsible financial community. Meetings and conference calls are regularly held in the
world’s main financial marketplaces with analysts and fund
managers. Approximately 350 meetings were organized in 2010.
On the SBF 120 and DJ Eurostoxx 600 indices, Imerys stock
is part of the “General Mining Activities” sector (1775 General
Mining under ICB classification).
The Group remains attentive to the ratings of non-financial analysis agencies, particularly Eiris Ethifinance, Innovest, Vigéo and
Oekom. Since September 2006, Imerys has been part of the
FTSE4Good responsible investing index and ASPI Eurozone®
(Advanced Sustainable Performances Indices). It is also listed
on Ethibel’s “Excellence” investment register.
SHAREHOLDER CONTACTS
Imerys Financial Communications
154, rue de l’Université
75007 Paris
Tel: + 33 (0) 1 49 55 66 55
Fax: + 33 (0) 1 49 55 63 98
e-mail: [email protected]
REGISTRAR SERVICE
CACEIS Corporate Trust
14, rue Rouget-de-Lisle
92862 Issy-les-Moulineaux
Cedex 9 - France
Tel: + 33 (0) 1 57 78 34 44
Fax: + 33 (0) 1 49 08 05 80
e-mail: [email protected]
44
FINANCIAL COMMUNICATION SCHEDULE 2011
• Tuesday, February 15
2010 results
• Thursday, April 28
Shareholders’ General Meeting
– 1st quarter 2011 results
• Wednesday, May 11
Dividend payment (from)
• Friday, July 29
1st half 2011 results
• Thursday, November 3
3rd quarter 2011 results
IMERYS IN 2010
12/04/11 18:40
WORLD LEADER
AUSTRIA
BELGIUM
CZECH REPUBLIC
DENMARK
FINLAND
FRANCE
GERMANY
GREECE
HUNGARY
ITALY
LUXEMBURG
NETHERLANDS
POLAND
PORTUGAL
ROMANIA
RUSSIA
SLOVENIA
SPAIN
SWEDEN
SWITZERLAND
TURKEY
UKRAINE
UNITED KINGDOM
245
47
7
DATA PER SHARE
2010
(1) (2)
INDUSTRIAL SITES
(1)
COUNTRIES
2009
2008
3.19 €
1.66 €
3.96 €
1.20 € (3)
1.00 €
0.93 €
75,406
72,054
67,486
75,474
75,389
62,787
(1)
High
50.84 €
42.46 €
55.37 €
Low (1)
36.86 €
20.21 €
23.44 €
49.89 €
42.02 €
30.14 €
3,765 M€
3,166 M€
2,041 M€
Closing price
(1)
(1)
(3)
(2)
MAIN RESEARCH
CENTERS
17
LISTING MARKET
REGIONAL
LABORATORIES
Trading
volumes
(thousands
of shares)
In €
Imerys: + 21.0%
52
4,000
Euronext Paris
Eligible for SRD
Eurolist Market
Compartment A
Nominal: €2
48
3,000
SBF 120: + 7.4%
NORTH
AMERICA
44
2,000
40
1,000
CODES
ISIN
FR0000120859
NK
Mnemo
Reuters
IMTP.PA
Bloomberg NK.FP
INDICES
36
01/10
CANADA
UNITED STATES
02/10
03/10
Imerys price
04/10
05/10
SBF 120
06/10
07/10
08/10
09/10
10/10
11/10
12/10
01/11
02/11
SBF 120
DJ Eurostoxx 600
Imerys volumes
SRI INDICES
SOUTH
AMERICA
ARGENTINA
BRAZIL
CHILE
MEXICO
PERU
VENEZUELA
Imerys
ASIA & OCEANIA
NUMBER OF
INDUSTRIAL SITES
1-5
MAIN RESEARCH
CENTERS
+ 10
6-9
FTSE4Good
ASPI Eurozone®
REGIONAL
LABORATORIES
AFRICA
SOUTH AFRICA
TUNISIA
ZIMBABWE
AUSTRALIA
CHINA
INDIA
INDONESIA
JAPAN
MALAYSIA
NEW ZEALAND
SINGAPORE
SOUTH KOREA
TAIWAN
THAILAND
VIETNAM
12/04/11 18:54
IMERYS IN 2010
IMERYS IN 2010
29 MINERALS
A MULTITUDE
15,090 EMPLOYEES
THOUSANDS
OF USES WORLDWIDE
TEL: + 33 (0) 1 49 55 63 00 | FAX: + 33 (0) 1 49 55 63 01
www.imerys.com
IMERYS EN 2010
07/04/11 14:58

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