COMMUNIQUÉ RÉGLEMENTÉ

par IMERYS (EPA:NK)

Imerys-press-release-FY2023-results-21-February-2024

imagePRESSRELEASE

PARIS, FEBRUARY 21, 2024

Imerys posts full year 2023 current EBITDA in line with guidance and substantial cash flow generation

●      Full year revenue at €3,794 million impacted by weak demand in most markets, in particular residential construction, and adverse currency effect

●      Current EBITDA in line with guidance1 at €633 million; current EBITDA margin resilient at 16.7% benefiting from cost reductions (€126 million)

●      Substantial net current free operating cash flow generation of €191 million (2022: €20 million), and €288 million (2022: €105 million) before strategic capital expenditures, supported by working capital management actions

●      Solid financial structure and strong liquidity position: net debt reduced by €548 million (-33%), improving the net financial debt to current EBITDA ratio to 1.8x compared to 2.3x in December 2022

●      Proposal of a cash dividend of €1.35 per share, representing a total distribution of €115 million

●      New 1.5°C trajectory validated by SBTi: reduction of 42% of scope 1 & 2 greenhouse gas emissions (tCO2eq) and of 25% of scope 3 by 2030 from 2021 base year

Consolidated results234 (€ millions)

FY 2022

FY 2023

Change 2023 / 2022

Revenue

4,282

3,794

-11.4%

Organic growth

+12.5%

-9.0%

-

Current EBITDA

720

633

-12.2%

Current EBITDA margin

16.8%

16.7%

-

Current operating income

439

365

-16.9%

Current operating margin

10.2%

9.6%

-

Operating income5

318

108

-66.2%

Current net income from continuing operations, Group share

278

242

-12.8%

Net income from continuing operations, Group share5

173

8

-

Net income from discontinued activities, Group share

64

44

-

Net income, Group share5

237

51

-78.4%

Net current free operating cash flow (incl. discontinued ope.)

20

191

+855%

Net financial debt (as at December 31)

1,666

1,118

-32.9%

Current net income from continuing operations per share6

€3.28

€2.86

-12.8%

image

1

Guidance announced on July 27, 2023: FY 2023 current EBITDA between €630 million and €650 million

2 According to IFRS 5, HTS is accounted for as a discontinued operation and reported under ‘Net income from discontinued activities’ (its revenue, expenses and pre-tax profits are not detailed in the consolidated income statement)

3

The definition of alternative performance measures can be found in the glossary at the end of the press release

4

Figures may not sum due to rounding

This includes the impairment of the assets serving the paper market for €175 million

Weighted average number of outstanding shares: 84,564,199 in 2023 compared with 84,575,054 in 2022

The audit procedures on the consolidated accounts are finalized. The audit report will be issued after the finalization of the procedures for the verification of the management report, and the presentation of the accounts to be included in the Universal Registration Document, in the format provided for in the ESEF Regulation.

Alessandro Dazza, Chief Executive Officer, said:

In 2023, Imerys continued to demonstrate resilience and agility in a complex market environment.

The current EBITDA margin remained stable and cash flow generation increased significantly. These results have been achieved by a strongly committed team, of which I am extremely proud. Our main markets may have reached a low point and we will utilize every lever at our disposal to increase sales moving forward, supported by recent capacity additions and innovative mobile and sustainable energy products.

At Imerys, we look forward to demonstrating the robustness of our business model and achieving in 2024 new milestones on our strategic roadmap.”

Proposed dividend

At the Shareholders’ General Meeting of May 14, 2024, the Board of Directors will propose an ordinary cash dividend of €1.35 per share (vs. €1.50 ordinary cash dividend paid in 2023), which represents a distribution of €115 million[1]. This amount corresponds to 50% of net income from current operations, Group share (to be compared with 46% of last year for the ordinary cash dividend).

Update on strategic projects

As part of its drive to support the energy transition with mineral solutions, Imerys is:

●      Completing its development in the fast-growing lithium-ion battery market (over €140 million invested in capacity increases over the past 3 years). As per plan, a new production line of carbon black for mobile energy at Willebroek (Belgium) was commissioned in 2023 while the construction of the next one is well underway. The capacity expansion for synthetic graphite production in Bodio (Switzerland) was commissioned in Q4 2023.

●      Investing €43 million in a greenfield plant in Wuhu (China), producing high-quality talc used for lightweighting of polymers and typically addressing automotive applications, EVs in particular. This plant was successfully commissioned in Q4 2023.

In parallel, the lithium projects are progressing well:

●      In France, the EMILI project made significant progress in 2023. The scoping study confirmed the attractiveness of the deposit and robustness of the technology with the production at laboratory scale of the first battery-grade lithium hydroxide from the Beauvoir granite. The locations of the loading station and the conversion plant were announced in January 2024. The "Commission Nationale du Débat Public" will host a public debate in Q2 2024 and will release its report in Q3. In parallel, pre-feasibility study is to be concluded before year end, and the construction of the industrial pilot is on track to be launched in 2024, pending necessary permitting.

●      In the UK, the strategic partnership between Imerys and British Lithium, named “Imerys British Lithium”, aims at becoming the leading lithium hub in the UK, with a targeted annual production of 21,000 tons of lithium carbonate equivalent, enough to equip 500,000 electric cars per year, by the end of the decade. Drilling campaigns will continue to increase the level of accuracy on deposit size and grade.

Battery-grade lithium carbonate has been produced at a pilot lab scale, helping the process optimization as part of the pre-feasibility study still ongoing.

Imerys has received expressions of interest for the potential divestiture of its assets serving the paper market. The Group remains steadfast in its determination to execute its strategy of focusing on its core, high-growth specialty minerals business, and may therefore consider such expressions of interest for the benefit of its customers, employees and shareholders. In this context, and also reflecting current market conditions, Imerys has decided to adjust the value of these assets in its financial accounts.

Sustainability

Highlights

Imerys has further progressed on its ambitious decarbonisation roadmap, and its newly-set targets, validated last July by the SBTi8, are aligned with a 1.5°C trajectory for 2030. The Group set its objectives to reduce absolute scope 1 and 2 greenhouse gas emissions by 42% (tCO2eq) and scope 3 by 25% by 2030 from a 2021 base year. The scope 1 includes direct emissions from sources owned or controlled by Imerys, and scope 2 concerns indirect emissions from the production of electricity, heat or steam purchased by the Group.

To fulfill this ambitious roadmap, the Group has started to implement specific actions, such as a multi-year contract signed with E.On, one of Europe's largest operators of energy networks and energy infrastructure, in May 2023 to valorize waste syngas and generate electricity in Willebroek (Belgium). The majority of the energy produced will be supplied to the local grid to satisfy the yearly consumption of approximately 40,000 households.

Imerys confirmed its commitment to reducing carbon emissions by issuing in November 2023 a €500 million sustainability-linked bond (6-year maturity) with an annual fixed rated coupon of 4.75%. Bond investors will receive a premium payment in 2029 of 0.75% of the principal amount, should the Group not meet its objectives at the end of 2028.

Performance

Following the successful completion of its first ESG sustainability plan, the Group has launched a more ambitious plan for 2025 centered around three core pillars: empowering our people, growing with our customers and caring for our planet. With regards to the Group decarbonisation roadmap, several levers have been activated, such as fuel switching and biomass utilization, electrification, power purchase agreements, energy efficiency and process innovation. In 2023, Imerys has reduced its scope 1 & 2 CO2 emission by 24% compared to 2021 in absolute terms.

FY 2022

(baseline)

FY 2023

Target 2025

Empowering our people

Occupational safety:

●      Total recordable accident frequency rate 9

●      Average level of maturity of operational sites

2.43

3.0

2.36

3.1

2.18 (2024)

3.3

Increase the score of the Diversity, Equity & Inclusion Index10

(including KPIs related to Gender, Nationality, Disability and inclusion)

0%

40%

100%

image

8The Science Based Targets initiative is a collaboration between the CDP, the United Nations Global Compact, World Resources Institute and the World Wide Fund for Nature.

Includes all accidents without lost time whenever a healthcare professional is involved in the treatment, even if only for first aid.

10                     Imerys’ Diversity, Equity & Inclusion Index is a composite metric used to track diversity, equity and inclusion across a range of dimensions including gender balance, pay equity, nationality, disability, as well as inclusion.

Growing with our customers

Business ethics and responsible purchasing management: proportion of suppliers assessed against environmental, social and governance criteria[2]

53%[3]

61%[4]

75%

Assess the Products in Application Combinations (PAC) of Imerys product portfolio (by revenue) according to sustainability criteria[5]

55%

65%

75%

Caring for our planet

Improve water management by ensuring priority sites[6] comply with new water reporting requirements

0%

22%

100%

Reduce impact on biodiversity by filling our Act4nature commitments and conducting biodiversity audits at the priority sites[7]

0%

57%

100%

Reduce Group scope 1 & 2 greenhouse gas emissions (tCO2eq) by 42% from 2021 base year in alignment with a 1.5°C trajectory by the end of 2030

0%

(2021 baseline)

-24%

-42%

(2030)

Outlook

After unprecedented destocking in 2023, markets have stabilized. Construction, notably residential, and, to some extent, Automotive, are expected to remain lackluster, still impacted by high interest rates, while other markets such as Consumers and Life Sciences, or Energy and Electronics are expected to progress. In this uncertain economic and geopolitical environment, Imerys will maintain strict cost discipline and prioritize growth thanks to new industrial capacities, innovative products and its exposure to mobile and sustainable energy.

COMMENTARY ON THE FOURTH QUARTER AND 2023 ANNUAL RESULTS

Revenue

Consolidated results (€ millions)

2022

2023

Change 2023 / 2022

Reported

Change

Like-for-like change

Volumes

Price mix

First quarter

1,013

997

-1.6%

-0.9%

-11.9%

+11.0%

Second quarter

1,129

985

-12.7%

-10.0%

-13.7%

+3.8%

Third quarter

1,116

918

-17.8%

-14.2%

-14.2%

+0.0%

Fourth quarter

1,024

894

-12.6%

-10.4%

-6.1%

-4.4%

Total

4,282

3,794

-11.4%

-9.0%

-11.6%

+2.6%

Revenue was €3,794 million, down 9.0% year-on-year at constant scope and exchange rates in 2023, to be compared with a significant 16.8% increase in 2022. Group sales volumes were down 11.6%, reflecting weakness in main end markets especially residential construction, continued destocking and increasing competition in some geographies.

In a context of high inflation since H2 2022, Imerys’ pricing actions continued in 2023 (+2.6% of price effect), then lowered in Q4 at -4.4% due to a high comparison basis (+18.7% price effect in Q4 2022 vs. previous year) and the end of energy and freight surcharges.

Revenue for full year 2023 included a negative currency effect of €83 million (-1.9%), primarily as a result of USD depreciation vs Euro. The scope effect was -€31 million and related to recent divestitures.

Current EBITDA

Consolidated results (€ millions)

2022

2023

Change 2023 / 2022

First quarter

156

151

-3.4%

Second quarter

219

180

-17.8%

Third quarter

193

150

-22.2%

Fourth quarter

152

152

-0.2%

Total

720

633

-12.2%

Margin

16.8%

16.7%

-

At €633 million, 2023 current EBITDA was in line with the guidance announced on July 27, 2023, after a negative currency effect of -€18 million.

A combination of the positive price effect, significant cost reductions in all input factors (€126 million of savings), together with the dividends received from our joint ventures and associates in 2023, contributed to a resilient EBITDA margin.

Current operating income reached €365 million for 2023, a 16.9% decrease compared to last year.

Current net income

Current net income, Group share, totaled €242 million, down 12.8% vs. 2022. Net financial result was negative at €38 million. The income tax expense of €81 million corresponds to an effective tax rate of 24.9%. Current net income, per share, Group share, reached €2.86.

Net income

(€ millions)

2022

2023

Current net income, Group share

278

242

Net Others, Group share

-105

-235

of which Other, including impairment of paper assets[8]

-120

-257

Tax

14

21

Minority Interest

2

2

Net income from continuing operations, Group share

173

8

Net income from discontinued activities, Group share

64

44

Net income, Group share

237

51

Net income, Group share, totaled €51 million in 2023. Net income from continuing operations reached €8 million after other income and expenses of -€235 million in 2023, including €175 million for the impairment of the assets serving the paper market.

The net income also includes €44 million of net income from discontinued activities and €2 million of minority interests.

Net current free operating cash flow

(€ millions)

2022

2023

Current EBITDA (including discontinued operations)

859

640

Increase (-)/ decrease (+) in operating working capital

-233

86

Notional tax on current operating income

-155

-96

Other

11

9

Net current operating cash flow (before capital expenditure)

482

639

Capital expenditure

-406

-390

Right-of-use assets (IFRS 16)

-56

-58

Net current free operating cash flow

20

191

of which discontinued operations

14

6

Net current free operating cash flow before strategic capex

105

288

Imerys generated a substantial net current free operating cash flow of €191 million in 2023, up €171 million vs the prior year. Capital expenditures amounted to €390 million, lower than last year, and reflecting the Group’s effort on strategic projects aimed at increasing production capacity primarily in mobile energy and the lithium projects (€97 million, up from €85 million). Operating working capital improved by €86 million in 2023, thanks to working capital management actions and lower inflationary pressure. The net current free operating cash was also supported by dividends received from joint ventures and associates in 2023.

(€ millions)

2022

2023

Net current free operating cash flow

20

191

Acquisitions and disposals

86

644

Dividend

-138

-330

Change in equity

-11

-11

Increase (-)/ decrease (+) in other operating items

51

19

Other non-recurring income and expenses

-46

-43

Debt servicing costs

-36

-34

Exchange rates and other

-19

-7

Change in net financial debt

-93

428

(€ millions)

2022

2023

Opening net financial debt

-1,451

-1,666

Change in net financial debt

-93

428

Discontinued operations

-122

119

Closing net financial debt

-1,666

-1,118

Financial structure

(€ millions)

2022

2023

Net financial debt at January 1

1,451

1,666

Net financial debt at December 31

1,666

1,118

Equity at December 31

3,385

3,157

Current EBITDA

720

633

Net financial debt/Equity

49.2%

35.4%

Net financial debt/current EBITDA

2.3x

1.8x

At December 31, 2023, net financial debt totaled €1,118 million, down by €548 million (-33%) compared to December 31, 2022. The reduction in net indebtedness reflects the Group’s continued focus on cash generation and includes the impact of the disposal of HTS completed at the end of January 2023.

With the net debt to current EBITDA and gearing ratios significantly improved compared to the prior year, Imerys demonstrates its ability to maintain a robust financial structure.

Imerys "investment grade" ratings were confirmed by Standard and Poor's (November 24, 2023, BBB-, stable outlook) and Moody's (March 11, 2023, Baa3, stable outlook).

At December 31, 2023, Imerys’ bond financing amounted to €2.2 billion with an average maturity of 4 years, after a new Sustainability Linked bond emission in November for €500 million with a maturity of 6 years, covering the next repayment planned in December 2024. The Group also has €1.3 billion in cash and more than €1 billion available in bilateral credit lines.

SEGMENT PERFORMANCE

Following the High Temperature Solutions disposal, the Group has updated its reporting around three operational segments: “Performance Minerals Americas”, “Performance Minerals EMEA”, “Solutions for Refractories, Abrasives and Construction”.

As the “Graphite & Carbon” segment does not exceed the 10% threshold as defined by IFRS 8, it is reported under “Others”, together with the lithium projects, holdings and joint ventures. For each reporting segment 2022-2023 performance, please refer to Appendix.

Performance Minerals (62% of consolidated revenue)

Q4 2022

Q4 2023

LFL change on Q4 2022

Consolidated data (€ millions)

2022

2023

LFL change on 2022

286

246

-10.9%

Revenue Americas

1,188

1,034

-9.9%

392

336

-11.5%

Revenue EMEA and APAC

1,608

1,423

-9.1%

(46)

(24)

-

Eliminations & others

(197)

(116)

-

633

559

-8.5%

Total revenue

2,600

2,341

-7.2%

Current EBITDA

480

374

-22.1% *

Current EBITDA margin

18.5%

16.0%

-

* reported variation

Revenue generated by the Performance Minerals activity was down 7.2% like-for-like in 2023. On a reported basis, revenue was down 10.0% and includes a negative currency effect of €52 million (-2.0%).

Revenue in the Americas was down 9.9% at constant scope and exchange rates in 2023. Sales in the fourth quarter (-10.9% like-for-like) were impacted by a demand slowdown for minerals dedicated to the construction industry in the US and significant destocking at paper producers worldwide.

Revenue in Europe, Middle East, Africa and Asia-Pacific decreased by 9.1% at constant scope and exchange rates in 2023 and -11.5% in the fourth quarter, impacted by weak construction markets, prolonged destocking and soft consumer demand in Asia.

Current EBITDA for Performance Minerals activity totaled €374 million in 2023. It represents a resilient current EBITDA margin at 16.0% thanks to prices and costs actions partly compensating sales reduction.

Solutions for Refractory, Abrasives and Construction (32% of consolidated revenue)

Q4 2022

Q4 2023

LFL change on Q4 2022

Consolidated data (€ millions)

2022

2023

LFL change on 2022

329

288

-9.4%

Revenue Solutions for Refractory, Abrasives & Construction

1,434

1,233

-11.9%

-

-

-

Eliminations & others

-

-

-

329

288

-9.4%

Total revenue

1,434

1,233

-11.9%

Current EBITDA

208

141

-32.0% *

Current EBITDA margin

14.5%

11.5%

-

* reported variation

The Solutions for Refractory, Abrasives & Construction segment revenue decreased by 14.1% on a reported basis with an unfavorable currency effect of €35 million (-2.4%). Revenue was down -11.9% at constant scope and exchange rates in 2023. Volumes were weighed down by the low construction and industry end-markets, in Europe, in Asia and to a lesser extent in the US. In Europe, certain energy-intensive accounts were lost due to increased competition from Asian players benefiting from lower energy and logistic costs.

In the fourth quarter, the 9.4% like-for-like decrease was driven by lower volumes (weak end-markets and some destoking). Despite adverse market conditions, speciality binders for construction kept good momentum thanks to market share gains.

Current EBITDA for the segment totaled €141 million, or 11.5% of revenue in 2023, impacted by revenue decrease. Savings actions were put in place to mitigate the volume impact.

2023 annual results webcast

The press release is available on the Group’s website www.imerys.com. The Group will hold a live webcast to discuss the 2023 annual results at 09.30 AM (CET) on February 22, 2024, which can be accessed via this link.

Financial Calendar

April 30, 2024

First quarter 2024 results

May 14, 2024

General Meeting of Shareholders

July 29, 2024

First half 2024 results

October 30, 2024

Third quarter 2024 results

These dates are subject to change and may be updated on the Group’s website https://www.imerys.com/finance.

Imerys is the world’s leading supplier of mineral-based specialty solutions for the industry with €3.8 billion in revenue and 13,700 employees in 54 countries in 2023. The Group offers high value-added and functional solutions to a wide range of industries and fast-growing markets such as solutions for the energy transition and sustainable construction, as well as natural solutions for consumer goods. Imerys draws on its understanding of applications, technological knowledge, and expertise in material science to deliver solutions which contribute essential properties to customers’ products and their performance. As part of its commitment to responsible development, Imerys promotes environmentally friendly products and processes in addition to supporting its customers in their decarbonization efforts.

Imerys is listed on Euronext Paris (France) with the ticker symbol NK.PA.

More comprehensive information about Imerys may be obtained from its website (www.imerys.com) in the Regulated Information section, particularly in its Registration Document filed with the French financial markets authority (Autorité des marchés financiers, AMF) on March 22, 2023 under number D.23-0127 (also available from the AMF website, www.amf-france.org). Imerys draws investors’ attention to chapter 2 “Risk Factors and Internal Control” of its Registration Document.

Disclaimer: This document contains projections and other forward-looking statements. Investors should be aware that such projections and forward-looking statements are subject to various risks and uncertainties (many of which are difficult to predict and generally beyond the control of Imerys) that could cause actual results and developments to differ materially from those expressed or implied.

Analyst/Investor Relations:

Cyrille Arhanchiague : +33 (0)1 49 55 64 84 finance@imerys.com

Press contacts:

Claire Garnier : +33 (0)1 49 55 64 27

Mathieu Gratiot : +33 (0)7 87 53 46 60

Hugues Schmitt (Primatice) : + 33 (0)6 71 99 74 58

Olivier Labesse (Primatice) : + 33 (0)6 79 11 49 71

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APPENDIX

KEY INCOME STATEMENT INDICATORS

(€ million)

2022

2023

Change

Revenue

4,282

3,794

-11.4%

Current EBITDA

720

633

-12.2%

Current operating income

439

365

-16.9%

Current financial expense

(50)

(38)

-

Current taxes

(105)

(81)

-

Minority interests

(6)

(3)

-

Current net income from continuing operations, Group share

278

242

-12.8%

Other operating income and expenses, net, Group share

(105)

(235)

-

Net income from continuing operations, Group share

173

8

-

Net income from discontinued activities, Group share

64

44

-

Net income, Group share

237

51

-

Sales per segment

Sales (€ millions)

PM Americas

PM EMEA & APAC

Others PM

PM

2022

2023

2022

2023

2022

2023

2022

2023

First quarter

271

266

376

386

-48

-30

599

622

Second quarter

305

267

419

361

-45

-32

679

596

Third quarter

327

255

421

339

-59

-30

689

564

Fourth quarter

286

246

392

336

-45

-23

633

559

Full Year

1,188

1,034

1,608

1,423

-197

-116

2,600

2,341

Sales (€ millions)

P

M

RAC

Others

Group

2022

2023

2022

2023

2022

2023

2022

2023

First quarter

599

622

356

319

58

56

1,013

997

Second quarter

679

596

388

328

62

61

1,129

985

Third quarter

689

564

362

297

65

57

1,116

918

Fourth quarter

633

559

329

288

62

47

1,024

894

Full Year

2,600

2,341

1,434

1,233

248

221

4,282

3,794

Current EBITDA per segment

Current EBITDA (€ millions)

PM Americas

PM EMEA & APAC

Others PM

PM

2022

2023

2022

2023

2022

2023

2022

2023

First half

110

83

132

100

-3

3

239

186

Second half

118

84

138

102

-15

2

241

188

Full Year

228

167

271

202

-18

4

480

374

Current EBITDA (€ millions)

P

M

RAC

Others

Group

2022

2023

2022

2023

2022

2023

2022

2023

First half

239

186

127

76

9

69

375

331

Second half

241

188

81

66

23

48

345

302

Full Year

480

374

208

141

32

118

720

633


CONSOLIDATED INCOME STATEMENT

(€ millions)

31.12.2023

31.12.2022

Revenue

3 794,4

4 281,6

Raw materials and consumables used

(1365,3)

(1472,5)

External expenses

(990,1)

(1208,9)

Staff expenses

(869,1)

(872,7)

Taxes and duties

(28,5)

(37,6)

Amortization, depreciation and impairment

(299,7)

(303,1)

Intangible assets, mining assets and property, plant and equipment

(249,5)

(254,8)

Right-of-use assets

(50,2)

(48,3)

Other current income and expenses

33,5

25,4

Share in net income of joint ventures and associates

89,5

26,6

Current operating income

364,7

438,8

Gain (Loss) from obtaining or losing control

(14,1)

22,8

Other non-recurring items

(242,9)

(143,2)

Operating income

107,7

318,4

Net financial debt expense

(24,3)

(32,9)

Income from securities

16,7

5,1

Gross financial debt expense

(41,0)

(38,0)

Interest expense on borrowings and financial debt

(36,8)

(34,9)

Interest expense on lease liabilities

(4,2)

(3,1)

Other financial income (expenses)

(14,1)

(17,4)

Other financial income

255,5

228,3

Other financial expenses

(269,6)

(245,7)

Financial income (loss)

(38,4)

(50,3)

Income taxes

(60,4)

(91,0)

Net income from continuing operations

8,9

177,1

Net income from continuing operations, Group share (2)

7,6

172,9

Net income from continuing operations attributable to non-controlling interests

1,3

4,2

Net income from discontinued operations (1)

44,9

77,3

Net income from discontinued operations, Group share

43,7

64,3

Net income from discontinued operations attributable to non-controlling interests

1,2

13,0

Net income

53,8

254,4

Net income, Group share (2)

51,3

237,2

Net income attributable to non-controlling interests

2,5

17,2

(1) High Temperature Solutions line of business (note 25).

(2) Net income per share

Basic net income per share, Group share (in €)

0,61

2,80

Diluted net income per share, Group share (in €)

0,60

2,76

Basic net income from continuing operations per share, Group share (in €)

0,09

2,04

Diluted net income from continuing operations per share, Group share (in €)

0,09

2,01

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(€ millions)

31.12.2023

31.12.2022

Non-current assets

4 469,8

4 357,4

Goodwill

1 839,1

1 852,2

Intangible assets

333,3

287,5

Right-of-use assets

151,4

133,1

Mining assets

391,1

415,5

Property, plant and equipment

1 475,9

1 410,7

Joint ventures and associates

122,7

90,5

Other financial assets

5,6

25,4

Other receivables

36,0

31,8

Derivative financial assets

0,2

-

Deferred tax assets

114,5

110,7

Current assets

2 643,6

2 137,4

Inventories

734,6

789,9

Trade receivables

398,5

489,9

Other receivables

237,1

208,4

Derivative financial assets

14,8

27,0

Other financial assets

673,6

2,0

Cash and cash equivalents

585,0

620,2

Assets held for sale1

38,5

1 376,2

Consolidated assets

7 151,9

7 871,0

(€ millions)

31.12.2023

31.12.2022

Equity, Group share

3 124,0

3 337,9

Share capital

169,9

169,9

Share premium

614,4

614,4

Treasury shares

(16,5)

(18,7)

Reserves

2 304,9

2 335,1

Net income, Group share

51,3

237,2

Equity attributable to non-controlling interests

33,3

47,5

Equity

3 157,3

3 385,4

Non-current liabilities

2 497,6

2 465,6

Provisions for employee benefits

160,6

160,2

Other provisions

426,6

388,8

Borrowings and financial debt

1 691,3

1 694,5

Lease liabilities

119,2

98,1

Other debts

18,4

20,0

Derivative financial liabilities

0,3

4,1

Deferred tax liabilities

81,2

99,9

Current liabilities

1 471,0

1 551,1

Other provisions

43,5

34,3

Trade payables

377,9

540,1

Income tax payable

86,1

104,9

Other debts

364,6

344,3

Derivative financial liabilities

32,1

29,0

Borrowings and financial debt

520,2

452,7

Lease liabilities

41,3

42,1

Bank overdrafts

5,3

3,7

Liabilities related to assets held for sale²

26,0

468,9

Consolidated equity and liabilities

7 151,9

7 871,0

(1) Of which, at December 31, 2023, the bauxite production business for €38.5 million and at December 31, 2022, the High Temperature Solutions line of business for €942.8 million and the business serving the paper market for €433.4 million.

(2) Of which, at December 31, 2023, the bauxite production business for €26.0 million and at December 31, 2022, the High Temperature Solutions line of business for €335.5 million and the business serving the paper market for €133.5 million.

Current EBITDA At December 31, 2023

(€ millions)

PM Americas

PM EMEA &

APAC

Others PM

PM

Revenue

1 033,9

1 422,9

(115,8)

2 341,0

Current operating income

82,2

115,6

4,4

202,2

Adjustments

Amortization, depreciation and impairment

84,0

85,7

-

169,7

Change in current operating write-downs and provisions

1,1

4,5

(0,1)

5,5

Share in net income of joint ventures and associates

(0,7)

(8,7)

(0,1)

(9,5)

Dividends received from joint ventures and associates

0,7

5,2

-

5,9

Current EBITDA

167,3

202,3

4,2

373,8

(€ millions)

PM

RAC

Others

Total

Revenue

2 341,0

1 232,7

220,7

3 794,4

Current operating income

202,2

46,9

115,6

364,7

Adjustments

Amortization, depreciation and impairment

169,7

89,7

40,3

299,7

Change in current operating write-downs and provisions

5,5

4,7

(6,9)

3,3

Share in net income of joint ventures and associates

(9,5)

-

(80,0)

(89,5)

Dividends received from joint ventures and associates (1)

5,9

0,1

48,5

54,5

Current EBITDA

373,8

141,4

117,5

632,7

(1) Of which €48.5 million received from the joint venture The Quartz Corporation

At December 31, 2022

(€ millions)

PM Americas

PM EMEA &

APAC

Others PM

PM

Revenue

1 188,0

1 608,4

(196,7)

2 599,7

Current operating income

125,7

192,5

(8,8)

309,4

Adjustments

Amortization, depreciation and impairment

94,5

85,4

(9,4)

170,5

Change in current operating write-downs and provisions

7,9

(4,2)

-

3,7

Share in net income of joint ventures and associates

(0,6)

(7,7)

-

(8,3)

Dividends received from joint ventures and associates

0,4

4,5

-

4,9

Current EBITDA

227,9

270,5

(18,2)

480,2

(€ millions)

PM

RAC

Others

Total

Revenue

2 599,7

1 434,4

247,5

4 281,6

Current operating income

309,4

120,2

9,2

438,8

Adjustments

Amortization, depreciation and impairment

170,5

91,0

41,6

303,1

Change in current operating write-downs and provisions

3,7

(3,2)

(0,5)

-

Share in net income of joint ventures and associates

(8,3)

(0,1)

(18,2)

(26,6)

Dividends received from joint ventures and associates

4,9

-

-

4,9

Current EBITDA

480,2

207,9

32,1

720,2

NET CURRENT FREE OPERATING CASH FLOW

(€ millions)

31.12.2023

31.12.2022

Items from the Consolidated Income Statement

Revenue

3 867,4

5 172,6

Raw materials and consumables used

(1 403,2)

(1 898,2)

External expenses

(1 000,6)

(1 357,3)

Staff expenses

(882,5)

(1 021,3)

Taxes and duties (1)

(28,7)

(40,7)

Other current income and expenses

30,3

3,7

Share in net income of joint ventures and associates

90,6

32,6

Adjustments

Change in provisions for employee benefits

(1,5)

(2,7)

Change in current operating write-downs and provisions

4,2

(2,9)

Share in net income of joint ventures and associates

(90,6)

(32,6)

Dividends received from joint ventures and associates

54,7

5,8

Current EBITDA

640,1

859,0

of which discontinued operations (2)

7,4

139,0

Income taxes

Notional income tax on current operating income

(95,8)

(155,1)

Adjustments

Change in operating working capital requirement (3)

86,3

(232,8)

Carrying amount of intangible assets and property, plant and equipment disposed of

8,9

10,7

Net current operating cash flow

639,5

481,8

of which discontinued operations (2)

8,2

41,0

Investing activities

Acquisitions of intangible assets and property, plant and equipment (4)

(390,3)

(406,2)

Additions to right-of-use assets

(58,2)

(55,8)

Net current free operating cash flow

191,0

19,8

of which discontinued operations (2)

5,9

14,2

(1) Consolidated Income Statement

(2) High Temperature Solutions line of business.

(3) Change in operating working capital requirement (Consolidated Statement of Cash

Flows)

86,3

(232,8)

Adjustments for decrease (increase) in inventories

135,8

(198,8)

Adjustments for decrease (increase) in trade receivables

133,0

(79,1)

Adjustments for decrease (increase) in trade payables

(182,5)

45,1

(4) Acquisitions of intangible assets and property, plant and equipment

(Consolidated Statement of Cash Flows)

(390,3)

(406,2)

Acquisitions of intangible assets

(68,5)

(44,5)

Acquisitions of property, plant and equipment

(330,1)

(345,1)

Change in payables on acquisitions of intangible assets and property, plant and equipment

8,3

(16,6)

The following table presents the cash flow from non-recurring operations, i.e. non-recurring operating transactions, changes in the scope of consolidation, financing transactions and transactions with shareholders. These cash flows, added to the net current free operating cash flow from the previous table, give the total change in net financial debt.

(€ millions)

31.12.2023

31.12.2022

Net current free operating cash flow

191,0

19,8

Of which discontinued operations (1)

5,9

14,2

Income taxes

Notional income tax on financial income (loss)

5,9

13,3

Change in current and deferred tax assets and liabilities

12,1

12,7

Change in income tax payables and receivables

(22,7)

20,9

Income taxes paid on non-recurring income and expenses

23,3

2,9

Consolidated Income Statement

Financial income (loss)

(36,5)

(52,8)

Other operating income and expenses

(231,9)

(137,6)

Adjustments

Change in non-operating working capital requirement

14,4

1,2

Change in financial write-downs and provisions

(6,4)

2,7

Change in fair value of hedging instruments

2,2

3,6

Non-recurring impairment losses

5,4

108,0

Change in non-recurring write-downs and provisions

211,7

10,0

Share in net income of joint-ventures and associates

-

(3,3)

Gain (loss) on businesses disposed of

(53,6)

(28,5)

Gain (loss) on intangible assets and property, plant and equipment disposed of

0,9

2,4

Investing activities

Acquisition of businesses

(26,0)

(20,3)

Disposal of businesses

666,6

100,9

Disposal of intangible assets and property, plant and equipment

-

0,5

Loans and advances in cash received from (granted to) third parties

3,2

4,6

Equity

Share capital increases (decreases)

3,6

-

Disposals (acquisitions) of treasury shares

(14,8)

(10,9)

Share-based payments

10,3

13,5

Dividends

(330,3)

(137,5)

Change in net financial debt excl. exchange rate effects

428,4

(73,9)

(1) High Temperature Solutions line of business.

CHANGE IN NET FINANCIAL DEBT

(€ millions)

31.12.2023

31.12.2022

Net financial debt at the beginning of the period

(1 666,2)

(1 451,1)

Change in net financial debt excl. exchange rate effect

520,7

(73,9)

Reclassification to/from liabilities related to assets held for sale (1)

35,3

(122,1)

Exchange rate effet

(8,2)

(19,1)

Change in net financial debt

547,8

(215,1)

Net financial debt at the end of the period

(1 118,4)

(1 666,2)

(1) At December 31, 2023, the business serving the paper market for €38.2 million and the bauxite production business for -€2.9 million and at December 31, 2022, the High Temperature Solutions line of business for -€83.1 million, -€38.2 million for the business serving the paper market and -€0.8 million for the hydrous kaolin business in the US.

CONSOLIDATED STATEMENT OF CASH FLOWS

(€ millions)

31.12.2023

31.12.2022

Net income

53,8

254,4

Adjustments

- for depreciation and amortization

510,6

335,4

- for impairment loss on goodwill

5,4

108,0

- for impairment loss (reversal of impairment loss) recognized in profit or loss, trade and other receivables

(4,8)

(2,6)

- for impairment loss (reversal of impairment loss) recognized in profit or loss, inventories

(0,5)

4,8

- for provisions

3,1

(14,4)

- for share-based payments

10,3

13,5

- for losses (gains) on disposal of non-current assets

(54,1)

(25,1)

- for undistributed profits from joint ventures and associates

(90,6)

(35,8)

- for net interest income and expense

24,4

37,6

- for fair value losses (gains)

2,2

3,7

Other adjustments for non-cash items

0,1

(0,9)

Other adjustments for which cash effects are investing or financing cash flow

28,8

16,8

Change in working capital requirement

100,7

(231,6)

- for decrease (increase) in inventories

135,8

(198,8)

- for decrease (increase) in trade receivables

133,0

(79,1)

- for increase (decrease) in trade payables

(182,5)

45,1

- for other receivables and debts

14,4

1,2

Adjustments for income tax expense

57,5

129,7

Net cash flow from (used in) operations

646,9

593,5

Interest paid

(26,4)

(41,9)

Income taxes refund (paid)

(72,4)

(105,4)

Adjustments for dividends received from joint ventures and associates

54,7

5,8

Net cash flows from (used in) operating activities

602,8

452,0

Of which discontinued operations (1)

11,9

17,1

Acquisitions of intangible assets

(68,5)

(44,5)

Acquisitions of property, plant and equipment

(330,1)

(345,1)

Change in payables on acquisitions of intangible assets and property, plant and equipment

8,3

(16,6)

Cash flows used in (from gaining) control of subsidiaries or other businesses

(25,8)

(20,8)

Proceeds from disposals of intangible assets and property, plant and equipment

10,3

10,2

Cash flows from losing control of subsidiaries or other businesses (2)

541,9

84,4

Other cash payments related to the acquisition of equity and debt instruments of other entities

0,9

0,0

Cash advances and loans granted to third parties

(7,5)

(3,0)

Cash receipts from repayment of advances and loans granted to third parties

9,0

7,3

Interest received

9,5

5,5

Cash flow from investing activities

148,0

(322,6)

Of which discontinued operations (1)

(60,7)

23,9

Proceeds from issuing shares

3,6

0,0

Payments to acquire or redeem treasury shares

(14,8)

(10,9)

Dividends paid

(330,3)

(137,5)

Proceeds from borrowings

496,5

0,0

Repayments of borrowings

0,0

(6,8)

Payments of lease liabilities

(52,1)

(61,1)

Other cash inflows (outflows) (3)

(1 033,7)

318,9

Cash flow from financing activities

(930,8)

102,6

Of which discontinued operations (1)

(58,6)

(35,1)

Change in cash and cash equivalents

(180,0)

232,0

(1) High Temperature Solutions line of business.

(2) Of which in 2023, €554.2 million received with respect to the loss of control of High Temperature Solutions line of business and in 2022, €49.0 million received with respect to the loss of control of the US hydrous kaolin business and €33.4 million with respect to the loss of control of the Canadian and Namibian natural graphite business.

(3) In 2023, mainly made up of the acquisition of investment securities (€670.0 million) and repayment of debt securities (€433.0 million) and in 2022, mainly made up of short-term negotiable debt securities issued.

GLOSSARY

Imerys uses “current” indicators to measure the recurrent performance of its operations, excluding significant items that, because of their nature and their relatively infrequent occurrence, cannot be considered as inherent to the recurring performance of the Group (see section 5.5 Definitions and reconciliation of alternative performance measures to IFRS indicators in the 2021 Universal Registration Document).

Alternative Performance Indicators

Definitions and reconciliation to IFRS indicators

Growth at constant scope and exchange rates (also called life-for-like change, LFL growth organic or internal growth)

Calculated by stripping out the impact of currency fluctuations as well as acquisitions and disposals (scope effect).

Restatement of the currency effect consists of calculating aggregates for the current year at the exchange rate of the prior year. The impact of exchange rate instruments qualifying as hedging instruments is taken into account in current data.

Restatement of Group structure to take into account newly consolidated entities consists of:

subtracting the contribution of the acquisition from the aggregates of the current year, for entities entering the consolidation scope in the current year;

subtracting the contribution of the acquisition from January 1 of the current year, until the last day of the month of the current year when the acquisition was made the prior year, for entities entering the consolidation scope in the prior year. Restatement of entities leaving the consolidation scope consists of:

subtracting the departing entity’s contribution from the aggregates of the prior year as from the first day of the month of divestment, for entities leaving the consolidation scope in the current year;

subtracting the departing entity’s contribution from the aggregates of the prior year, for entities leaving the consolidation scope in the prior year.

Volume effect

The sum of the change in sales volumes of each business area between the current and prior year, valued at the average sales price of the prior year.

Price mix effect

The sum of the change in average prices by product family of each business area between the current and prior year, applied to volumes of the current year.

Current operating income

The operating income before other operating income and expenses (income from changes in control and other non-recurring items).

Net income from current operations

The Group’s share of income before other operating income and expenses, net (income from changes in control and other non-recurring items, net of tax) and income from discontinued operations.

Current EBITDA

Calculated from current operating income before operating amortization, depreciation and impairment losses and adjusted for changes in operating provisions and write-downs, share in net income and including dividends received from joint ventures and associates.

Net current operating cash flow

Current EBITDA after notional income tax on current operating income, adjusted for changes in operational working capital requirement and proceeds from divested intangible and tangible assets.

Net current free operating cash flow

Current EBITDA after notional income tax on current operating income, adjusted for changes in operational working capital requirement, proceeds from divested intangible and tangible assets, paid intangible and tangible capital expenditure and changes in right-of-use assets.

Net financial debt

Difference between financial liabilities (borrowings, financial debts, and IFRS 16 liabilities) and cash and cash equivalents.

Notional income tax rate

Income tax rate on current operating income



[1] Ex-dividend and payment dates would be May 21, 2024 and May 23, 2024 respectively

[2] By expenditure.

[3] In 2023, the 2022 baseline was recalculated based on spending from January 1st to December 31st 2022.

[4] Based on spending from January 1st to June 30th 2023.

[5] Based on the SustainAgility Solutions Assessment framework a “SustainAgility Solution” is a product in an application that has scored within the two highest categories of the four possible categories.

[6] Priority sites refer to withdrawal > 1 Mm3 or located in water stress zones.

[7] Priority sites for biodiversity audits have been defined as sites with a quarry that extracts more than 1 million tons per year, or are located within a radius of 5 km of an area classified as IUCN category I, II or III, or are located in a biodiversity hotspot within a radius of 5 km of an area classified IUCN category IV.

[8] Impairment of paper assets: €108 million (2022) and €175 million (2023)

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