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INVESTOR DAY 01.12.12 1
IMERYS DEVELOPMENT STRATEGYINVESTOR DAY JANUARY 12, 2012
Christian SCHENCK – Executive Vice-PresidentMATERIALS & MONOLITHICS
INVESTOR DAY 01.12.12 2
MATERIALS & MONOLITHICS HIGHLIGHTS
2011 sales(1) > €1,020 MApprox. 28% of 2011 Group consolidated sales Structured into 2 activities
4,200 employees worldwide as of Dec. 31, 2011 with Building Materials activity in France onlyA global footprint with 40 industrial sites in 16 countries
2011(2) Sales by destination 2011(2) Sales by activity
Japan/Australia2%
Emergingcountries
28%
North America(<0.5%)
Europe24%
(1) 2011 provisional data, non audited(2) 9 months 2011
France45%
INVESTOR DAY 01.12.12 3
Building Materials
INVESTOR DAY 01.12.12 4
THE FRENCH LEADER IN CLAY BUILDING PRODUCTS
Imerys is the French leader in each segment of clay building materials,in a market driven by regional requirements
The company develops, produces and sells performing clay based materials
Structural Blocks
Chimney BlocksRoof Tiles65 models – 69 colors
Partition Bricks
Photovoltaic Tiles
Thermal Tiles
INVESTOR DAY 01.12.12 5
A BUSINESS WELL POSITIONED TO CREATE VALUE
High multi-regional market shares
Each facility has dedicated local mining resources that provide high qualityand cost-effective feedstock supplies on the long term (up to 50 years)
Combined with a manufacturing excellence shared among all locations to produce:• High volumes in large effective plants• Sophisticated products• With a high standard of quality
Sold through local distributors, meeting customers & regulation requirements
LOWEST COST TO MARKETAND TRIGGERING INNOVATION
TO BE A PRICE LEADER
INVESTOR DAY 01.12.12 6
CLAY ROOF TILES:AN ATTRACTIVE AND RESILIENT BUSINESS
Roof market in France estimated at 144Mm² in 2010Pitched roofs represent 50% of the surfaces, and 70% are clay tiles (50Mm2*)Clay tiles market share grew from 50% to 70% between 1985 and 2010
* Source: FFTB
Clay tiles markets:45% new build55% renovation50%
20%
30%Clay rooftiles
Naturalslates
Others
1985
70%14%
16%
2010
INVESTOR DAY 01.12.12 7
EARLY 2000: TURNAROUND FOR CLAY BLOCKS
Increasing market share for clay blocks in individual housing vs. concrete products
Single-FamilyHousing
DevelopersBuildersPersonal
Customers
Decision-maker
CollectiveHousing
DevelopersLocal
Administration
20%
Market Share forClay Products
6%
2003
46%
15%
2011Segment
From a traditional mechanical commodity block to a successful value-added product • Thermal insulation • Easy and quick to install
New products for collective housing• A growing market for clay blocks
INVESTOR DAY 01.12.12 8
CHALLENGING THERMAL REGULATION FOR HOUSING: AN OPPORTUNITY!
• High level of mediatization to address public awareness
• For housing, a plan for unparalleled reduction of energy (energy &CO2)
New housing, a challenging target- 66 % in 2012,Passive housing in 2020
• New requirements for environmental issues:
Indoor air quality Environmental labelling of products (EPD)
-25%
-25%
-16%
-25%
-20%
0
50
100
150
200
250
300
Prior 1974 1982 1988 2000 2005 2012 2020
1st TR*: April 1974
2nd TR: March 1982
3rd TR: April 1988
4th: TR2000
5th : TR2005
Average housing consumption (KWh/m²/)
-66%
-100%
Future TR2012
* TR: Thermal Regulation
INVESTOR DAY 01.12.12 9
CLAY BLOCKS: A THERMAL SOLUTION
OPTIBRIC PV R = 0.78
OPTIBRIC PV3+ R = 1.00
OPTIBRIC PV4G R = 1.32
Glue assembly blocks: a thin mortar is appliedwith a roller with two main benefits:
• Improve thermal insulation• Reduced laying time (by 30%)
From being simple load bearing element,block became a significant partof the thermal performance of the wall
INVESTOR DAY 01.12.12 10
Commenailles
Quincieux
Ste-Foy-l’Argentière
St Germer de Fly
WardrecquesPhalempin
Damiatte
Grossouvre
Blajan
Leguevin
St Geours d’Auribat
Blocks and chimney blocks
Roof tiles
Pargny-sur -Saulx
Doyet
Gironde sur DroptSaint Marcellin
Colomiers
La Boissière du Doré
Mably
Vergongheon
Vihiers
#1 IN FRANCE WITH MULTI-REGIONAL PRESENCE
Roof tilesNumber 1 in France
• Main competitors: Terreal, Monier, Wienerberger• 3,500 direct customers
13 Industrial sitesVolumes sold
• 1,100 KT Tiles and accessories• The equivalent of 150,000 houses • 65 Models, 69 colours,
over 700 models of accessories
Blocks & Chimney blocksNumber 1 in France
• Main competitors: Wienerberger,Bouyer Leroux, Terreal
7 Industrial sitesVolumes sold
• 670 KT of blocks• Equivalent of 22,000 houses
INVESTOR DAY 01.12.12 11
OPERATIONAL EXCELLENCE: Imerys Terre Cuite, most cost-efficient producer in France
Extensive know-how in mining & deposit management• Best quality clay for the most efficient process and product quality
Thorough review and follow-up of Capex
Plant productivity • Highly automated production lines• Broad range of KPI’s used at all levels of the organization
to track inefficiencies and quality issues• Adequate staff training
INVESTOR DAY 01.12.12 12
ENVIRONMENTAL REGULATIONS: INNOVATION & OPPORTUNITIES
NEOPLATE for an increased efficiencyInnovation Awards Nominee at 2011 Batimat Trade Fair – Paris• Significant drop of installation time: - 35%• And adapted to our photovoltaic roof tiles
Opportunities generated by “Grenelle de l’Environnement” regulationImerys Terre Cuite has developed a number of roof equipments to capture energy:• Photovoltaic panel to capture solar energy• Panels to heat water
Clay roof tiles: chemically neutral to collect water• No change in chemical composition of collected rain water – unlike all other roofing solutions
INVESTOR DAY 01.12.12 13
A BREAK-THROUGH
With a number of benefits:
• Acoustic performance (noise insulation)• Thermal performance (thermal inertia, humidity regulation)• Indoor air quality• Durability
Intuitys: an innovative Clay board, for insulating and partition walls – dry mounting on metal framework
• Shock resistance • Accepts all kinds of finishing • Quick and simple to install
INVESTOR DAY 01.12.12 14
INVESTOR DAY 01.12.12 15
A GROWING BUSINESS MOVING FROM MONOLITHIC REFRACTORIESTO COMPLETE SOLUTION
Calderys• World leader in monolithic refractories• 8% CAGR 2005-2011• Created by the merger of Lafarge Refractories & Plibrico in 2005 • > 100 years of experience
The monolithic refractory business model relies on• Local sales with “tailor made solutions” (product adapted to industry specificities,
local practices and based on local raw materials)• Transversal advantages: a global purchasing power, a constant benchmarking
of technical solutions and a globally coordinated R&D effort
Growth fuelled by three key elements• Innovation in order to develop fit-to-purpose materials• Geographical expansion towards high growth areas• Expansion from refractory products to complete solution provider
INVESTOR DAY 01.12.12 16
REFRACTORY MONOLITHICS
Refractories: heat resistant materials• acid and basic varieties • shaped and unshaped (monolithic) types
Monolithics: semi-finished products • Usually mixed with water to be installed• Transformed by heat (ceramic bond)• Formulated products consist of aggregates + binder + additives
INVESTOR DAY 01.12.12 17
MONOLITHIC: A SOLUTION GROWING FASTER THAN THE OVERALL REFRACTORY MARKET
Monolithic as a % of refractory production
Monolithics account for 45% of the total market in developed economies due to several advantages:
− Joint less lining (no weak point)− Ease and speed of installation− Adaptable to complex furnace shapes
and allow for hot repairs by gunning− Short production cycle: can be manufactured
and delivered at short notice
0
10
20
30
40
50
60
70
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Perc
ent o
f Ton
s Pr
oduc
ed
Year
Japan
Europe
China
India
Monolithics substitute refractory bricks
The Monolithics consumption is expected to grow at 3.5% CAGR over 2009-2014, to reach 35% of the total refractory market
The bricks should grow by 1.2% CAGR over the same period
Source: Local associations of refractory producers
INVESTOR DAY 01.12.12 18
CALDERYS IS A FOCUS PLAYER WITH A BALANCED PORTFOLIOAND GLOBAL COVERAGE
Global
Local
High LowCapital intensiveness
Geo
grap
hic
cove
rage
Bricks Monolithics
CALDERYS
MAGNESITA
MINTEQ
REFRATECHNIK
QINGHUA
KROSAKIHARIMA
> 65% of sales in steel
< 50% of sales in steel
> 50% , < 65% of sales in steel
THERMALCERAMICS
VESUVIUS
RHI
Company size basedon 2010 sales
MOST ADVANCED SOLUTIONSLOWER CAPITAL INTENSITYDIVERSIFIED CUSTOMERS
INVESTOR DAY 01.12.12 19
A STRONG INTERNATIONAL NETWORKWITH LOCAL TECHNICAL PRESENCE
2,000 employees in 30 countries 16 plants on 5 continents - industrial presence in India and China since 20073 R&D centers, 11 Design Offices and > 100 technical experts
Vereeniging(South Africa)
Unanderra(Australia)
Zhangjiagang(China)
Kao-Shu(Taiwan)
Nagpur(India)
Puerto Ordaz(Venezuela)
Fiorano(Italy)
Sézanne(France)
Leeds(United Kingdom)
Oosterhout(The Netherlands)
Györ(Hungary)
Vladimirovka(Ukraine)
Åmål(Sweden)
Neuwied(Germany)
Katni(India)
Höganäs(Sweden)
INVESTOR DAY 01.12.12 20
A DIVERSIFIED AND BALANCED CUSTOMER PORTFOLIO
Calderys serves all industries that use refractoriesand has a portfolio of > 1,000 products
Calderys is a long-term partner of many industrial leader and is constantly working with customers to improve their operational performance No customer accounts for more than 5% of sales
IRON & STEEL Arcelor-Mittal, China Steel, NLMK, Severstal, Tata Steel, ThyssenKrupp, Metinvest,…
FOUNDRY &ALUMINIUM
Daimler, PSA, Teksid, Toyota,…Alcoa, EMAL, Qatalum, Rio Tinto Alcan, …
POWER Bharat HEL, Danieli Centro Combustione, Foster Wheeler, Metso Power, …
CEMENT CBMI, Heidelberger, Holcim, Italcementi, Jaypee, Lafarge, …
PETROCHEM Formosa Group, Shell, Total, BP,…
47%
14%
18%
3%
18%I&S
Foundry
Thermal
Petrochem
Other
12%
9%
5%
18%
21%
25%
10% GermanySwedenFranceOther W. EuropeE. Europe & CISAsiaOthers
By market segment (%)
By geography (%)
More than 50% of sales in developing countries
INVESTOR DAY 01.12.12 21
FUNDAMENTAL CONTRIBUTION OF INNOVATION
Innovation is key to adapt to both customer requirements and local practicesCalderys constantly upgrades / adapts its solutions with the support of three world-class R&D centers
Top priorities of Calderys R&D:• Reduce customer equipment downtime:
e.g. Quick-Dry (QD) materials, hot repair materials• Improve health & safety: e.g. dust-free materials• Increase lining life: e.g. alkali resistant versions• Facilitate installation (speed, easiness and reliability):
e.g. Low Porosity Dense Gunning materials & precast solutions• Increase energy savings: e.g. precast solutions in diamond
shape for Reheat Furnace roofs
The refractory lining is resistant to hightemperatures and to stresses caused by thermal,corrosive and abrasive conditions
ALL THOSE FEATURES CONTRIBUTETO IMPROVE TOTAL COST /
PERFORMANCE RATIO
INVESTOR DAY 01.12.12 22
GROWTH FUELED BY GEOGRAPHICAL EXPANSION
Structuring acquisition in India in 2007: Ace Refractories, leader in monolithics
Opportunity to enter the fast growingIndian market with a profitable and wellestablished company, while also• Capitalizing on a strong management team that can
also support Imerys’ future development in India• Improving our understanding of end user needs
in emerging countries • Transferring of business and technical knowledge
within the group needs Selected acquisitions of monolithic manufacturers: • QA Refractories (South Africa) in 2005• Svenska Silikawerken (Sweden) in 2008
Recent opening of sales offices in Turkey, Dubai, Vietnam, Mexico
Specific growth strategy in Asia
BUILD A PLATFORM IN INDIA, STRATEGIC COUNTRY FOR IMERYS
30%
25%
20%
10%
0%
15%
5%
2005 2006 2007 2008 2009 2010 2011
% of Asia sales in total revenues
INVESTOR DAY 01.12.12 23
MONOLITHICSFROM PRODUCTS TO COMPLETE SOLUTION PROVIDER
Calderys does not only sell refractories but also able to design solutionsand manage a whole project including installation of refractories
This capability helps to• Enhance technical dialogue with customers in selecting the most appropriate solution:
products cannot be chosen by customers out of a catalogue • Increase sales: merchandise, installation • Position Calderys
− as a technical partner both on refractories knowledge and engineering & construction− for future maintenance jobs
• Differentiate from small competitors• Maintain price leadership
Project contributed to ¼ of Calderys’ growth in the last 5 years
INVESTOR DAY 01.12.12 24
MONOLITHICS:A CONSTANTLY IMPROVING SYSTEM
Capture value downstream, from material supplier to service provider:an integrated system!
CONTINUOUS IMPROVEMENT OF OUR SOLUTIONS
Raw Material Selection Engineering & Design
Logistics& Delivery
TechnicalSupport
R&D ManufacturingProject Management
Dry-out & Commissioning
Installation & Supervision
INVESTOR DAY 01.12.12
MINERALS FOR CERAMICS, REFRACTORIES, ABRASIVES & FOUNDRY HIGHLIGHTS
2011 Sales(1) > € 1,180M – approx. 32% of Group’s sales5,600 employees worldwide as of Dec. 31, 2011A global footprint with 93 industrial sites in 24 countries
2
26%
26%39%
9%Graphite & CarbonMinerals
for Ceramics
Minerals for Refractories
& Oilfields
Fused Minerals
2011 Sales by activity(2)
Minerals for Ceramics, Refractories, Abrasives & Foundry
Minerals for CeramicsMinerals for Refractories & OilfieldsFused Minerals Graphite & Carbon
A large global business
(1) 2011 provisional sales, non audited(2) 9 months 2011
INVESTOR DAY 01.12.12
FUSED MINERALS: WORLWIDE LEADER
2011 Sales* > €450 M leading market positions on specialties• Fused minerals for abrasives: World #1 • Fused zirconia: World #1
Unique fusion technology and know-how• Key to control critical functional properties: abrasive efficiency, durability,
heat dissipation, opacity, color, purity, etc.
Global presence• Industrial assets in Europe, North and South America, China
Imerys R&D center: CARRD in Villach (Austria)
3
Tren
dsA
sset
s
Bonded abrasives, Coated abrasives, Refractories, Technical ceramics,Laminates/ Paintings, Chemicals, etc.
Products Applications
Fused Minerals: alumina, bauxite, zirconia, magnesia, etc.
Bonded abrasives Coated abrasives Sand blasting Refractories Oxygen sensors
End-markets
Iron & Steel, Foundry, Automotive, Industrial equipment, Electronics/Electrical, Construction (new), Energy, etc.
* 2011 provisional sales, non audited
INVESTOR DAY 01.12.12
MINERALS FOR REFRACTORIES & OILFIELDS: HIGH-ALUMINA PERFORMANCE PRODUCTS
2011 Sales* > €330M, leading position on “acidic” applications• Minerals with high alumino-silicate content: World #1• Fused silica: World #1
High-quality mineral resources• Extensive reserves of high-alumina and high-purity clays (US, France)• World largest andalusite reserves; unique range of crystal sizes and purity (France, South Africa, China, Peru)
Sophisticated and proprietary manufacturing processes • Control of chemistry, crystallography, homogeneity, particle size, etc. • Raw material selection
Global sales and logistics network• Service and final processing centers located close to end-markets
4
Ass
ets
Refractories, Investment casting, Oil & Gas exploration
Products Applications End-markets
Andalusite, Mullite, Chamottes, Ball Clays, Bauxite, Bentonite, Fused Silica, etc.
Refractories Cement Investment casting Oil & gas
Steel, Aluminum, Glass, Foundry, Cement, Energy
* 2011 provisional sales, non audited
INVESTOR DAY 01.12.12
MINERALS FOR CERAMICS: SPECIALTY PRODUCTS FOR CERAMIC INDUSTRIES
2011 Sales* > €310M, leading market position on high-end minerals• Raw materials & ceramic solutions (bodies): sanitary ware: World #1, tableware: EMEA #1• Kaolin for glazes: World #1
World-class mineral assets• UK (Cornwall, Devon, Dorset), France, Thailand, Turkey
Market reference• World-known brands, associated with high product quality (e.g. whiteness, plasticity, purity, strength)
and process efficiency (e.g. rheology, mechanical resistance, deformation)• Technical know-how on customers’ processes
Imerys R&D center in Limoges, France
Global presence:• Assets in EMENA, North America, Asia
5
Ass
ets
Sanitaryware, Tableware, Ceramic tiles, Technical ceramics, etc.
Crucible for solar cells
Products Applications End-markets
Kaolin, Clays, Feldspar, Quartz, Talc, Ready-made Bodies & Formulations, etc.
Technical ceramicsSanitaryware Tableware Floor & wall tiles Electro porcelain
Construction (new and renovation), Tableware, Energy, Automotive, Semiconductor, Electronics, etc.
* 2011 provisional sales, non audited
INVESTOR DAY 01.12.12
GRAPHITE & CARBON: GRAPHITE AND CONDUCTIVE CARBON BLACK POWDER FOR INDUSTRIAL APPLICATIONS
2011 Sales* > €100M, leading market positions in graphite powder specialties• Graphite for Alkaline batteries: World #1• Conductive additives for Li-Ion batteries: World #1• Lubricants for Seamless Tube production: World #1• Large natural graphite flakes: World #1Cutting-edge high-temperature processes (synthesis, crystallization)• For close control of functional properties: purity, crystalline structure, particle size and shape, specific surface, etc.Natural graphite resources of high-quality (Canada) Imerys R&D center in Bodio, SwitzerlandWorldwide commercial network addressing global customers with high level of technical needs
6
Ass
ets
Alkaline & Li-ion Batteries, Hot Metal Forming, Friction, Engineered Polymers, Thermal Management, etc.
Products Applications End-markets
Natural & synthetic graphite, conductive carbon black
Li-ion batteries Friction Electronics Energy Seamless Tube
Energy, Electrical & Electronics, Automotive & Transports, Industrial Equipment, etc.
* 2011 provisional sales, non audited
INVESTOR DAY 01.12.12
MINERALS FOR CERAMICS, REFRACTORIES, ABRASIVES & FOUNDRY: WELL POSITIONED FOR VALUE CREATION AND GROWTH
Value creation potential out of solid specialty business position
Growth potential thanks to attractive end-markets
INVESTOR DAY 01.12.12
VALUE CREATION POTENTIAL AS A RESULT OF SOLID SPECIALTY BUSINESS POSITION
High-performance products for demanding industrial environment• Functional properties key to customers application…
− Refractoriness, abrasiveness, wear / mechanical resistance, whiteness, plasticity, conductivity, purity, etc.• Limited substitution risks as our minerals are essential to customers products or processes
− Usages very demanding: ceramics, refractories, abrasives, semiconductors, production of oil and gas, mobile energy, etc.
Barriers to entry• Sophisticated manufacturing processes, around high-temperature operations
− Fusion, sintering, calcination, etc.• Mining assets essential to competitive position
− Graphite, High-alumina products, Clays, Quartz, etc.
Leading market positions in all 4 businesses• Fused Minerals: Minerals for abrasives: World #1, Fused zirconia: World #1, • Minerals for Refractories & Oilfields: Minerals with high alumina-content: World #1, Fused silica: World #1, • Minerals for Ceramics: bodies for sanitaryware World #1, and for tableware: EMEA #1,
Kaolin for glazes: World #1• Graphite & Carbon: Alkaline batteries: World #1, Conductive additives for Li-Ion batteries: World #1, Lubricants
for Seamless Tube production: World #1, Large natural graphite flakes: World #1
8
INVESTOR DAY 01.12.12
Growth• Dynamic end-markets• Innovation• Emerging countries
GROWTH POTENTIAL: END-MARKETS
9
Main end-markets with potential > worldwide GDP growth
AutomotiveEnergyElectrical / electronicsEnvironmentAir & space
Main applications withpotential > worldwide GDP growth
Li-Ion batteries High-purity quartzOil & gas explorationWaste management, etc.
Growth end-markets represent ~40% of sales
Sales
Rapid growth in emerging countries
Emerging marketsc. 30%
Emerging marketsc. 30%
Mature end-markets
c. 35%
Mature end-markets
c. 35%
5%5%Emerging marketsc. 30%
Mature end-markets
c. 35%
5%
INVESTOR DAY 01.12.12
CRAF a major contributor to Group Innovation• More than one third of Imerys innovation pipeline, representing
more than €300 million* sales potential• Three major innovative projects • And a dense pipeline
Three major projects• To target new end-markets: proppants for Oilfield services,
high-purity quartz for solar cells and semiconductor industries• To reinforce our presence in fast-growing market: Graphite for Li-ion
batteries of electrical cars
Fused Minerals• Sintered rods: new type of abrasive to increase grinding performance• High-purity zirconia: new product for advanced Ceramics oxygen
sensors for emissions control of cars (Bosch)• Ultra high-purity zirconia: zirconium metal for nuclear industry
(Cezus Areva)• etc.
10
Proppants
High Purity Quartz
Carbon for Li Ion
PolyCrystalline, Highly Porous Corundum
Sintered Bauxite Abrasives
* Including sales of Quartz Corp JV
GROWTH POTENTIAL: PRODUCT INNOVATION, A DENSE PIPELINE IN EACH DIVISION
Nuclear Fuel Rods
Courtesy of Areva
INVESTOR DAY 01.12.12
PRODUCT INNOVATION: A DENSE PIPELINE IN EACH DIVISION
Refractories & Oilfields• High purity fused silica: for precision investment casting• etc.
Ceramics• Service: development of integrated supply of bodies and formulations
for large industrial players (e.g. Ikea)• Power plants: AuroraTM for better energy efficiency of combustion
boilers• Technical Ceramics: improved presence with Talc integration • etc.
Graphite & Carbon• Graphite: new products for thermal management,
energy production, energy saving & storage• Carbon black: new products for “high-tech” applications
e.g. ecological buildings (energy saving), medical (safety)• etc.
11
Aurora: fluidized bed prevention
of agglomeration
Carbon additive
for polymer
New mineral for investment
casting
INVESTOR DAY 01.12.12
FOCUS: ENTRY OF TALC INTO PORTFOLIO OFFERING NEW GROWTH AVENUE IN TECHNICAL CERAMICS
Imerys historical presence in technical ceramics• World #1 in high-quality ball clays for electro-porcelain insulators• Steatite or Cordierite full-prepared bodies sold to German automotive industry• High-alumina bodies (>97% Al2O3), calcined and hydrated alumina micronizing for specialty application
Imerys innovation efforts• Patented kaolin from Brazil for automotive catalyst supports commercial development • Formulation knowledge to develop new specialty bodies: e.g. ballistic protection• Leverage on Imerys synergies: 3 Imerys R&D Centers focusing on technical ceramics
Leverage Talc Group existing strong market position• World #1 in talc for automotive catalyst supports• Major supplier of talc for cordierite and steatite bodies
12
INVESTOR DAY 01.12.12
FOCUS: BECOMING THE LEADING RAW MATERIALS SUPPLIER FOR AUTOMOTIVE CATALYSTS SUPPORTS
13
Demand expected to double within the next 5 years, driven by two global trends:
• Increasing demand in developing countries: e.g. +30% p.a. in China
• Tightening regulation in developed countries: e.g. diesel vehicles, including heavy diesel
Ceramic honeycomb=Talc + hydrous kaolin + calcined kaolin + alumina
A growing innovative area for Imerys Ceramics, sales of c. €25 M with significant development prospects
INVESTOR DAY 01.12.12
GROWTH POTENTIAL: DEVELOPMENT OPPORTUNITIES IN EMERGING COUNTRIES
CRAF exposure to emerging markets has been rapidly growing• Up 7 points in 5 years, to 31%• Lowest exposure to Western Europe: 41%• … offering many further opportunities
Fused Minerals• New project in Bahrain: competitive energy costs, expansion East• China: Fused Zirconia business is a platform for growth into other segments / products
Refractories & Oilfields• China: ramp up of andalusite Yilong production site associated with increased demand
for high-performance products
Ceramics• Turkey: ongoing developments, as Middle-East has become world’s 2nd largest production
cluster of traditional Ceramics• South East Asia: expansion resulting from existing platform in Thailand• Brazil: capitalization on RCC kaolin platform in Brazil to grow presence in local market
Graphite & Carbon• China (most important market for Graphite): expand presence in mobile energy,
engineering materials and carbon additives for polymers
14
2011*
Western Europe
42%
USA & Canada
21%
Japan & Australia
5%
Emerging & Other32%
* 9 months 2011
INVESTOR DAY 01.12.12
Acquisition of Astron China in 2008 transformed Imerys position in Fused Zirconia• Main end-markets:
− Specialties: refractories (steel continuous castings), investment casting (precision metallurgy), technical ceramics (e.g.: oxygen sensors), chemicals (e.g.: anti-perspirants), ceramic colors
− Volumes: ceramic wall and floor tiles• Gained presence in Europe and in the US with UCM in 2007• China: largest market for refractories, chemicals, tiles, etc.• Astron China: a leading Asian asset-base, with all production sites and most of sales
in ChinaImerys world leader in Fused Zirconia
Integration and turnaround now completed • Entirely new management team, led by Franco-Chinese
General Management and its extensive experience• Business portfolio centered on high value-added products• Technology transfer to state-of-the-art fusion process and know-how• Imerys Fused Minerals China clear market leader in China in 2011• 2011 Sales(*) > €90 M, double digit operating income profitability
FUSED MINERALS IN CHINA: A PLATFORM FOR FUTURE GROWTH
15
PlantsSales offices
Fused Minerals division
China
* 2011 provisional sales, non audited
INVESTOR DAY 01.12.12
IMERYS FUSED MINERALS IN CHINA: IMERYS POSITION CAN NOW BE LEVERAGED
Continuing to grow the Fused Zirconia Business• Enhance product offering, in order to capture rapidly-growing demand
for specialties― Technical transfers, R&D
• Improve industrial layout― Modernization of industrial equipment
• Increase profitability― Pricing policy
― Focus on high value-added industrial outlet
Expanding into other businesses• Under local management leadership• Downstream: investment / acquisitions• Other Fused Minerals
16