Annual Report 2011 - Analist.be

Overview of the activities - ImerysFinancial reportDespite a high basis of comparison,Imerys registered strong growth in 2011.The group’s turnover grew by 9.8%to EUR 3,675 million (EUR 3,347 millionin 2010). This performance reflecteda negative foreign exchange effect ofEUR 67 million and a positive groupstructure effect of EUR 125 million,mainly related to the acquisition ofBrazilian firm PPSA and the integrationof Luzenac group from 1 August 2011.At comparable group structure andexchange rates, turnover increasedby 8.1% over 2010 with a volume effectof + 3.7% and a significant price/mixeffect of + 4.4%.Gross operating income (EBITDA)stood at EUR 686 million, a 10.5%increase over its 2010 level(EUR 621 million). Similarly, currentoperating income (EBIT) increasedby 15.5% to EUR 487 million and 13.7%at comparable group structure andexchange rates.The group’s operating margin was13.3% in 2011 and 12.6% during 2010.Higher prices, an improved product mixand higher volumes more than offset theincrease in costs resulting from higherproduction volumes, the price inflation incertain raw materials and the launch ofinitiatives to develop new markets.The contribution of the different activitiesto EBIT was as follows:• the Minerals for Ceramics, Refractories,Abrasives & Foundry businesscontributed EUR 157 million, a 16.0%increase, or 19.1% at comparable groupstructure and exchange rates comparedwith 2010 (EUR 135 million); the increasein the product price/mix covered thestrong inflation in Zircon.• the Performance & Filtration Mineralsbusiness contributed EUR 83 million;the progression was 26.6%(+ 15.1% at comparable groupstructure and exchange rates) over2010 (EUR 66 million). Since1 August 2011, the integrationof Luzenac group has proceededwell. The profit margin expanded by50 basis points to 11.6%.• The Pigments for Paper & Packagingdivision registered EBIT ofEUR 83 million, an 8.2% increaseover 2010 (EUR 77 million), i.e. + 2.1%at comparable group structure andexchange rates. This result includesEUR 5 million in compensation for theMiyagi plant in Japan.• The Materials & Monolithics branchregistered an 11.6% increasein current operating income toEUR 210 million, i.e. + 11.5% atcomparable group structure andexchange rates. The operating marginremained stable at 20.4%.At EUR 303 million, net currentincome, group’s share, for 2011rose by 25.3% compared to 2010(EUR 242 million). Net result, groupshare, of EUR 282 million includesEUR - 21 million in other income andexpenses.Current free operating cash flowstood at EUR 265 million compared toEUR 302 million for 2010, impacted bygrowth in working capital needs in linewith activity and higher investment innew growth opportunities for an amountof EUR 227 million, compared withEUR 155 million and in spite of anEBITDA increase to EUR 686 millionscompared to EUR 621 million.The group’s net financial debt stood atEUR 1,031 million on 31 December 2011(EUR 873 million at end 2010) under thejoint impact of the acquisition of Luzenacgroup and the dividend increase.Net debt represented 47% of equityand 1.5 times EBITDA at the end ofthe period.The Board will propose to the GeneralMeeting of Shareholders on 26 April 2012to distribute a dividend of EUR 1.50per share for 2011, a 25% increase overthe 2010 payout (EUR 1.20 per share).This distribution represents a ratio ofsome 37% of net current income,group share. The dividend will bepayable from 9 May 2012.Geographical breakdown of turnover (in %)Changes in current operating incomeby sector (in EUR million)Changes in current operating marginby sector (EBIT/turnover in %)Emerging Emerging Emergingcountries countries 27% countries 27% 27%Japan/ Japan/ Japan/Australia Australia Australia5% 5% 5%48% Western 48% Western 48% Western 250Europe Europe Europe20015010050250200150157100501352502001501571005013515783135668366838377668377209188837720918820918825201510525201513.212.210525201513.212.210513.212.211.611.111.611.111.611.110.410.010.410.020.420.310.410.020.420.320.420.3United United States/ United States/ States/Canada Canada 20% Canada 20% 20%000Minerals forCeramics,Refractories, Minerals forAbrasives & Foundry Ceramics,Refractories, Minerals forAbrasives & Foundry Performance Ceramics, &Refractories, FiltrationAbrasives & Foundry Performance Minerals &FiltrationPerformance Minerals Pigments&Paper Filtration &Packaging Minerals Pigmentsfor Paper &Packaging Materials Pigments &Monolithics for Paper &Packaging Materials &MonolithicsMaterials &Monolithics000Minerals forCeramics,Refractories, Minerals forAbrasives & Foundry Ceramics,Refractories, Minerals forAbrasives & Foundry Performance Ceramics, &Refractories, FiltrationAbrasives & Foundry Performance Minerals &FiltrationPerformance Minerals Pigments&Paper Filtration &Packaging Minerals Pigmentsfor Paper &Packaging Materials Pigments &Monolithics for Paper &Packaging Materials &Monolithics2011 2010Materials &Monolithics50 Annual Report 2011