Key figures

From capital goods (machine tools, aerospace, etc.), consumer durables (automotive, household appliances, etc.), fast moving consumer goods (food, health, electronics, etc.) and packaging, construction and renovation of buildings: in 2012, end markets served by Imerys’ specialty minerals have been dynamic in the US and in emerging regions while activity slowed down in Europe. Imerys was reactive to adapt to more difficult market environment and has benefitted from widened exposure to growth markets and regions.

The Group increased its results in 2012 and achieved its target. Imerys continued to implement its development strategy and launched the first stages of the 2012-2016 plan: step up of Research & Development programs and selective capital expenditure.

This section presents Imerys' 2012 key figures and comments changes compared with the previous year:

• Sales
• Current Operating Income*
• Net Income from Current Operations (Group's share)**
• Current Free Operating Cash Flow and Capital Expenditure***
• Shareholders' equity and net debt

• 

  Sales

  

  At €3,885 M, revenue for financial 2012 rose almost + 6% compared with the previous year. Luzenac Group acquisition brought €186 M additional revenue for 7 months and foreign exchange impact had a €96 M positive effect. At comparable Group structure and exchange rates, the - 2 % decrease in revenue illustrates trends which varied considerably across sectors and regions. Product price/mix improved + 3%. Stepping up its R&D spending, the Group achieved €250 million in revenue with products launched in the past five years, which represents a strong increase (+ 25%) compared to 2011.
  
  (1) 2010 results have been restated following the change in accounting method related to the recognition of employee benefits, applied on January 1, 2011 and detailed in annual results's press release 2011.
• 

  Current Operating Income*

  

  Current operating income totaled €490 M (+ 1%). If the decline of sales volumes (- €103 M) affected the highest-contributing divisions, operating margin held well at 12.6%. Thanks to measures taken to adjust activity to lower demand, the Group reduced fixed production costs and general expenses, without undermining either Research & Development or the launch of new projects (proppants for the oilfield industry). The €109 M price/mix effect offset increase in variable costs (- €71 M related to some raw materials, energy costs and freight).
  
  * Operating income before other operating revenue and expenses
• 

  Net Income from Current Operations (Group's share)**

  

  At €310 M, net income from current operations benefitted from the rise in current operating income while financial expense was stable (- €57 M) and tax rate decreased slightly at 28% (vs. 28% in 2011). With the + 2% rise in net income from current operations, the Group achieved the target announced on July 27, 2012, which targeted a net income from current operations at least comparable to 2011 one (€303 M).
  
  ** Net income before other operating revenue and expenses, net.
• 

  Current Free Operating Cash Flow and Capital Expenditure***

  

  For the second year in a row, industrial capital expenditures increased: they will allow Imerys to reach new growth drivers: presence in new markets (proppants for Oilfield services commissioned in 2012), new capacities to support growth in demand, geographical expansion in Asia, Brazil, and Middle-East. Current free operating cash flow generation remained strong despite the financing of this ambitious capex program, showing Imerys also remains vigilant on cash flow management.
  
  *** EBITDA minus taxes on current operating income
• 

  Shareholders' equity and net debt

  

  The Group’s consolidated net financial debt decreased €160 M and returned to its year-end 2010 level at €875 M. Within 2 years, thanks to strict cash flow management, Imerys financed the acquisition of Luzenac Group (€230 M in 2011), invested almost €500 M and distributed more than €200 M dividend to its shareholders. As respect to its cautious financing policy, the Group secured more than a billion euros in bilateral credit facilities maturing in 2015-2016 in order to increase and diversify its financial resources. As of December 31, 2012, Imerys’ total financial resources totaled €2.8 billion, with average maturity 2.9 years. Moody’s confirmed Imerys’ long-term credit rating “Senior unsecured debt rating” from Baa3 to Baa2 with a stable outlook. As of December 31, 2012, shareholders' equity amount to €2.3 Bn: the net debt/ shareholders' equity ratio is below 40% (39%). Imerys therefore has a very sound financial situation to implement its development plan.