OUR GROUP

Profitable Growth and Financial Solidity

In 10 years Imerys has becomed the world leader in industrial minerals thanks to a dynamic acquisitions policy and sustained organic growth efforts. The strict criteria used for those investment decisions enable the Group to generate substantial cash flows and the constant optimization of its financial structure safeguards its future development. Against a backdrop of economic slowdown and credit crunch, this discipline is more than ever an essential strength.

Ownership of extensive reserves, constant optimization of industrial facilities, in-depth knowledge of our customers’ manufacturing processes and products, and skilled, experienced people in our business: these advantages enable Imerys to draw on a highly robust core business that has been generating substantial cash flow – almost €2 billion⁽¹⁾ for 2004.

The Group ploughs that cash back into its development by combining internal and external growth along three lines: strengthening its market leadership, increasing its presence in emerging countries with higher growth, and acquiring new industrial minerals by playing an active role in the sector’s consolidation. The diversity of minerals and industries served lowers Imerys’ risk profile and boosts its innovation capability.

For 2004, Imerys has been investing almost €700 million in internal development projects to improve the efficiency of its industrial processes, increase its capacities to meet demand, support new product launches and develop outlets on new markets.

Over the same period, the Group completed more than 35 external growth operations – of which 18 in emerging countries – for a total amount of approximately €900 million. Its ability to integrate acquisitions remains a feature of Imerys’ development model. New entities quickly add value through the mobilization of internal skills to operate reserves, process minerals or develop applications.


Greater responsiveness in a more uncertain environment
2009 was marked by an unprecedented downturn in Imerys’ end markets. An inventory reduction trend intensified the decrease in industrial output in mature companies. The construction sector remained extremely slack in Europe and North America. Emerging countries, which now account for 24% of the Group’s outlets, were more robust. In 2008, Imerys undertook action plans to adapt to the collapse in demand and make free cash flow generation the priority. Efforts were stepped up in 2009, with results that exceeded the targets set by the Group:

• Inventory was reduced by 27%
• The cash fixed costs and overheads base was reduced by 15%
• Capital expenditure was focused on maintenance operations.

⁽¹⁾ Available cash flows for development.