MINERAL SOLUTIONS FOR A CHANGING WORLD

MINERAL SOLUTIONS
FOR A CHANGING WORLD
2015 ANNUAL REPORT
01
PR OF I LE
02 - Interview with Gilles Michel,
Chairman and CEO
05
T R A N S FO R M
T O PER FO R M
06
08
10
12
14
-
Business Groups & Markets
Map of global operations
Development
Innovation
Imerys in figures
15
T R A N S FO R M
T O IN N O VAT E
16
18
20
22
24
-
nergy Solutions & Specialties
E
Filtration & Performance Additives
Ceramic Materials
High Resistance Minerals
Business Groups & Divisions in figures
25
T R A N S FO R M
T O S HA R E
26
28
29
30
32
-
uman resources
H
Safety
Sustainable development indicators
Social and environmental initiatives
Social responsibility in figures
33
GOVER N A N CE
& SHA R EHOLDER S’ N OTEB OOK
34 - Governance
36 - Shareholders’ notebook
38 - Simplified financial statements
MINERAL SOLUTIONS
FOR A CHANGING
WORLD
A WORLD LEADER IN MINERAL-BASED SPECIALTIES
FOR INDUSTRY, IMERYS SUPPLIES HIGH VALUE-ADDED
FUNCTIONAL SOLUTIONS TO A GREAT NUMBER OF
SECTORS, FROM PROCESS INDUSTRIES TO CONSUMER
GOODS. THE GROUP DRAWS ON ITS KNOWLEDGE OF
APPLICATIONS, TECHNOLOGICAL EXPERTISE AND
COMMAND OF MATERIALS SCIENCE TO BENEFICIATE
ITS MINERAL RESOURCES, DEVELOP FORMULATIONS,
AND PRODUCE SYNTHETIC MINERALS. THESE DELIVER
PROPERTIES THAT ARE ESSENTIAL TO ITS CUSTOMERS’
PRODUCTS AND KEY TO THEIR PERFORMANCE,
INCLUDING REFRACTORINESS, MECHANICAL RESISTANCE,
CONDUCTIVITY, OPACITY, DURABILITY, PURITY, DENSITY,
SURFACE CHEMISTRY, FILTRATION AND ADSORPTION.
IMERYS IS FIRMLY COMMITTED TO RESPONSIBLE
DEVELOPMENT, IN PARTICULAR BY FOSTERING
THE EMERGENCE OF ENVIRONMENTALLY FRIENDLY
PRODUCTS AND PROCESSES.
E X T R A C T I O N
WE ENHANCE THE VALUE OF NATURAL MINERAL
RESOURCES We extract, buy and transform a large number of minerals,
including clay, bentonite, diatomite, feldspar, kaolin, mica,
perlite and wollastonite. Our job is to manage our mineral
resources in such a way as to ensure that we can meet our
customers’ long-term requirements.
T R A N S F O R M A T I O N
WE TRANSFORM MINERALS INTO INDUSTRIAL SOLUTIONS
Our job is to transform minerals into industrial solutions. Our
processes, proprietary technologies and developments enable us
to identify new properties and expand the scope of their applications.
We work in partnership with our customers to create value
and be a player in the industrial ecosystem.
I N N O V A T I O N
WE INVENT TOMORROW’S PRODUCTS
Our job is to think up industrial solutions
that will satisfy tomorrow’s needs. Imerys has
400 technicians and engineers working around
the world to find solutions to make lighter
vehicles, recycle plastics, reduce CO2 emissions
and extend battery life. Innovation is
the cornerstone of Imerys’ strategy.
M A R K E T S
WE ARE CLOSE TO OUR CUSTOMERS
Our 250 industrial sites give our customers
the benefit of a unique geographical
network, with top-quality products
and expertise. Our job is to be
at our customers’ side and to support
them in their growth.
C O L L A B O R A T I O N
WE TRUST OUR EMPLOYEES
Fostering our employees’ professional development and
enhancing our expertise in different spheres are among our
priorities. Safety culture is embraced at the highest level of
the company. The Group’s operational excellence approach
leads to improved performance of the production processes.
Thanks to the training we provide, our staff share these goals
and the company’s performance culture.
E N V I R O N M E N T
WE ARE COMMITTED TO SUSTAINABLE DEVELOPMENT
© Alain Lefebvre
Our job is to transform minerals in an environmentally friendly manner.
In order to reduce our CO2 emissions, we are improving our energy
efficiency and optimizing our energy mix by using renewable energy
sources. We actively preserve the mineral resources that are at the heart
of our operations. Under our three-year plan, we define and regularly
review our sustainable development commitments.
C O M M U N I T I E S
WE RESPECT THOSE AROUND US
As part of our work, we also take care of the populations near our sites. We seek to improve
the daily lives of our employees, their families and the communities living near our operational
sites. For over ten years and as a result of the “Sustainable Development Challenge,” innovative
projects in the fields of education, social commitment, professional development, health and
the environment have been improving the living conditions of the people we care about.
Imerys continues its
development strategy
by investing in industrial
capacity, expanding its
business portfolio
and innovating. GILLES MICHEL
CHAIRMAN & CEO
1 1 ——I M
0
I ME R
ER
YY
S S2 20 1
05
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”
INTERVIEW
Another year
of earnings growth
INTERVIEW WITH GILLES MICHEL
CHAIRMAN & CEO
02
Imerys, the world leader in mineral transformation,
is taking the steps needed to enhance its development
potential. In 2015, the Group pursued its growth
strategy and completed a major acquisition with
S&B Industrial Minerals.
What were the highlights of 2015?
Gilles Michel — In 2015, despite a global downturn
that featured sharper contrasts according to geography
and business sector, Imerys continued to grow and
remained strong thanks to its innovation strategy and
various acquisitions, including S&B, enabling us to add
new minerals and new markets to our business portfolio.
The Group’s performance is founded on sound cost
management and operational excellence programs.
Imerys’ business model provides it with the resources
needed – both in terms of profitability and cash flow –
to pursue its growth strategy.
What results has Imerys achieved?
G. M. — In 2015, Imerys achieved its target with 8%
growth in net income from current operations. This
result, achieved in difficult overall market conditions,
attests to the quality of the Group’s fundamentals
and to its teams' responsiveness. The Group's operating
margin was firm at 13.2% and its financial soundness
was strengthened by high generation of current free
operating cash flow at €343 million. Imerys continues
to manage its costs with discipline and has
demonstrated its ability to adjust its industrial
operations to market trends.
+8.0%
growth in net income
from current operations to €342M
+10.8%
growth in revenue in 2015
to €4,087M
03 — I M E RYS 2 015 A N N UA L R E P O RT
What are the most dynamic markets?
G. M. — In 2015, the economy remained dynamic
in North America, India and Southeast Asia, as well as
in sectors such as the automotive industry and consumer
goods. North America was buoyant in all markets,
with the exception of ceramic proppants and
steelmaking. In China, we refocused our activities on
high value-added products. In terms of the current
recession in Brazil, there was little impact on the Group’s
activities there, as Imerys exports over two-thirds of its
production.
Can you describe Imerys’ business model?
G. M. — The Group’s business model is based primarily
on its high value-added positioning and high-quality
mineral assets with long-term availability. It is also
founded on operational excellence and expertise
in the field of materials science, on a broad-ranging
and diversified presence in various geographical regions
and business sectors, and on a responsive and
decentralized organizational structure. In order
to expand the range of our operations and develop
our minerals portfolio, we have continued to make
targeted acquisitions, including the S&B Group,
Solvay’s European Precipitated Carbonated Calcium
operations, BASF’s hydrated kaolin business in
the United States, and Matisco, a French company
specialized in roofing accessories.
In 2015, Imerys continued
to grow and consolidated on
its strength by integrating
S&B’s operations, ramping
up its new production
capacities and pursuing
its innovation strategy.
”
INTERVIEW
Apart from this external growth,
what is the focus of your investment policy?
G. M. — Our main focus is R&D, because innovation
is central to Imerys’ strategy. Over the last four years,
our R&D budget has doubled, totaling €65 million in
2015. New products as a share of the Group’s revenue
have risen from 5% to 12% since 2011. Over the long
term, R&D enables us to establish partnerships with our
customers while providing us with the means for future
development. The innovative solutions currently sold
by the Group have been developed by our 400-strong
research team based around the world. They meet
the changing needs of our markets, such as recycling
plastics, making lighter vehicles, reducing CO2 emissions,
and improving the performance of lithium-ion batteries.
We also invest in increasing production capacity
and building new plants. These investments amounted
to almost €80 million in 2015, enabling us to meet
increasing demand from a number of markets and
support the development of new products stemming
from our R&D, such as our third-generation talc for
automotive polymers, plastic films for the food industry,
and blood plasma fractionation.
How are you managing your production assets
in these unsettled market conditions?
G. M. — Part of our investments are allocated to
improving the performance our production units.
Moreover, the Group has a responsive and decentralized
organizational structure, which gives it flexibility and
enables it to adjust quickly to changing market
conditions. Imerys has industrial assets, production
processes and proven expertise that are supported
by continuous improvement programs. The operational
excellence program, I-Cube, also contributes to
improving the productivity of our plants.
What are the prospects for 2016?
G. M. — The Group has sound fundamentals and
has demonstrated its ability to adapt its cost structure
and industrial organization to fluctuating economic
conditions. In an uncertain environment, Imerys will
pursue its action plans with the aim of maintaining and
improving its operational performance. It will also benefit
from a full year of synergies with S&B, as well as from
the initial positive effects of other recent acquisitions.
In keeping with its development strategy, and thanks to
a high level of cash flow generation, the Group
will continue to invest appropriately in innovation
and in expanding its business portfolio.
04
To grow, to improve and to innovate are the key goals of the Group’s entities.
In partnership with its customers, Imerys innovates and devises industrial solutions
to support their growth and transform our day-to-day life.
TRANSFORM
TO PERFORM
05 — I M E RYS 2 015 A N N UA L R E P O RT
P R E S E N TAT I O N O F T H E G R O U P – B U S I N E S S G R O U P S & M A R K E T S
Business
Groups & Markets
Imerys provides innovative, high value-added mineral specialties,
which are used in many applications in everyday life and meet
the needs of a diverse range of markets worldwide.
ABUNDANT, HIGH-QUALITY
RESERVES; GEOLOGICAL AND
MINING EXPERTISE
Imerys draws on world-class mining
assets. The Group requires high-level
geological expertise to identify
and secure its resources, enhance
their value over the long-term,
and ensure their renewal.
SUPPORTING OUR CUSTOMERS
BY LISTENING TO THEM
As a partner to its customers, Imerys
provides solutions that help to enhance
the quality of their end products,
improve their manufacturing processes,
and reduce their production costs.
MARKETS
CONSTRUCTION
ELECTRONICS
Roof tiles,
window profiles,
cement production, etc.
—
Device structure,
processors,
semiconductors, etc.
—
AUTOMOTIVE,
INDUSTRIAL
EQUIPMENT AND
CONSUMER DURABLES
Plastics, batteries,
paint, bodywork,
tooling, etc.
—
ENERGY
Batteries, photovoltaic
cells and panels,
oil and gas drilling, etc.
—
DECORATIVE
MATERIALS
AND FITTINGS
Sanitaryware,
tableware, flooring,
paint, floor tiles, etc.
—
06
OPTIMIZED INDUSTRIAL ASSETS TAILORED
TO OUR CUSTOMERS’ NEEDS
To adapt its minerals for specific applications, Imerys uses
its expertise and complex industrial processes that are often
proprietary to the Group. Optimizing and improving industrial
assets is an ongoing challenge.
A MARKET-ORIENTED
INNOVATION STRATEGY
Innovation, the driving force behind
the Group’s growth, is based on
understanding its customers' businesses
and is key to providing reliable,
sustainable technical solutions that help
to improve industrial performance.
STEELMAKING
AND METALLURGY
Refractory linings
for furnaces, etc.
—
AGRI-FOOD
PAPER
PACKAGING
Filtration of beer,
wine, drinking water,
fruit juice, etc.
—
Catalogues,
advertising materials,
brochures, magazines,
specialty papers, etc.
—
Plastic films,
special packaging,
cardboard, etc.
—
07 — I M E RYS 2 015 A N N UA L R E P O RT
HEALTH,
BEAUTY AND
PERSONAL CARE
Deodorant,
skin creams,
toothpaste, personal
care products, etc.
—
HORTICULTURE
AND AGRICULTURE
Hydroponics,
UV protection,
repellents, etc.
—
P R E S E N TAT I O N O F T H E G R O U P – M A P O F G L O B A L O P E R AT I O N S
A global presence
Imerys operates on five continents. It has 250 industrial sites
in 50 countries. Its geographical coverage and proximity to its customers
contribute to its strength and responsiveness, which are key
to the profitability of its operations.
CANADA
ENERGY SOLUTIONS
& SPECIALTIES
Carbonates
Monolithic Refractories
Graphite & Carbon
Oilfield Solutions
UNITED STATES
MEXICO
FILTRATION AND
PERFORMANCE ADDITIVES
Filtration & Performance
Additives
Performance Additives
for Metallurgy
BRAZIL
CHILE
CERAMIC MATERIALS
ARGENTINA
Kaolin
Roofing
Ceramics
HIGH RESISTANCE
MINERALS
Fused Minerals
Refractory Minerals
08
NORWAY
SWEDEN
UNITED KINGDOM
NETHERLANDS
GERMANY
BELGIUM
AUSTRIA
FRANCE
SWITZERLAND
CZECH REPUBLIC
UKRAINE
HUNGARY
SLOVENIA BULGARIA
SPAIN
GREECE
GEORGIA
ITALY
TURKEY
BAHRAIN
EGYPT
CHINA
THAILAND
INDIA
VIETNAM
JAPAN
TAIWAN
MALAYSIA
INDONESIA
ZIMBABWE
SOUTH AFRICA
AUSTRALIA
NEW ZEALAND
WESTERN
EUROPE
44%
0 9 — I M E RYS 2 015 A N N UA L R E P O RT
EMERGING
COUNTRIES
27%
NORTH
AMERICA
24%
JAPAN /
AUSTRALIA
5%
P R E S E N TAT I O N O F T H E G R O U P - D E V E L O P M E N T
Industrial
development
and new markets
Imerys’ development strategy relies on innovation to position
the Group on high added-value markets and on targeted acquisitions
to expand its business portfolio and geographical reach.
Market-driven investments
In 2015, the Group continued to
invest heavily in its industrial assets,
adding new production capacity in
various operational sectors.
Abrasives
In Austria, the first new-generation
abrasives production line came on
stream, enabling the Group to meet
performance requirements in
this sector.
INTERVIEW
Gilles Michel
Chairman & CEO
”The acquisition
of S&B in 2015
expanded Imerys’
portfolio to include
new minerals
and applications,
thus paving the way
for promising growth
opportunities.”
Automotive
The production capacities for
high-aspect-ratio talc have been
ramped up at the sites in Luzenac,
France, and Timmins, Canada
(Ontario) to serve the growing
market in polymers for the
automotive, household appliance
and packaging sectors.
Ceramics
In Thailand, the kaolin production
capacity for the ceramics industry has
been expanded to supply growing
markets in Southeast Asia.
Pharmaceutical industry
By increasing the production capacity
for high-purity diatomite at the
facility in Lompoc (United States),
the Group has been able to satisfy
growing needs in the pharmaceutical
industry, particularly for blood
plasma fractionation.
Refractory industries
In response to increasing demand in
the steel, cement, energy, aluminum
and petrochemical markets in India
and the Middle East, Imerys has built
a third facility for the production of
monolithic refractories.
Paper & packaging
A new ground calcium carbonates
(GCC) facility for carton packaging
was opened in India. Two production
plants for manufacturing a
micronized cellulose (MFC)
composite are being built
in the United States and India.
This product, which is marketed
under the brand name FiberLean™,
has significant potential for a number
of industries. In the paper and
packaging sectors, it helps improve
product quality and reduce
production costs.
Plastics
A new carbonates plant for plastic
films for the food industry has been
launched in the United States.
Selective
acquisition strategy
In recent years, Imerys has pursued
an active acquisition policy,
which has been the cornerstone
of its business portfolio expansion.
These acquisitions have enabled
the Group to consolidate its
geographical footprint and expand
its offering on a number of end
markets, such as filtration and
monolithic refractories, as well as
the automotive sector. In 2015,
the Group completed several
acquisitions in keeping with
its strategic goals and the needs
of its customers.
10
S&B
A valuecreating
acquisition
78M
in development investments
in 2015
With the acquisition of S&B,
Imerys has accelerated its
growth by expanding its range
of specialty products.
S&B, which is known for its
industrial expertise and the
quality of its mineral resources,
is the global leader in casting
fluxes for the steel industry,
wollastonite, and perlite-based
solutions used in construction
materials and horticulture.
It is also the European leader
in bentonite, which is used
as a binder in the foundry
sector and in sealing solutions,
and as an additive for drilling,
and a functional additive.
12%
of revenue
generated by new products
INDIA
A new plant
On February 26, 2015, the Group
finalized its acquisition of S&B's main
activities. Their integration into the
Filtration & Performance Additives
business group was completed
according to plan, thereby helping to
ramp up growth by expanding its
range of markets and resources,
particularly in business areas linked
to steelmaking and the automotive
sector.
Imerys also acquired the Precipitated
Calcium Carbonate (PCC) division of
Solvay, the European leader in fine
and ultrafine PCC, which is used as a
functional additive in specialty
applications. The European sites that
joined Imerys supply specialty
markets, such as the automotive
sector (polymers), construction
(paints, fillers and joints) and
11 — I M E R Y S 2 015 A N N U A L R E P O R T
In 2015, the Monolithic
Refractories division
commissioned its third
production line in the State of
Gujarat in India. This new
facility enables Imerys to meet
the growing demand for
common consumer goods (personal
care, health and beauty). They will
contribute to the growth of Imerys’
PCC operations across the world.
The Group has also bolstered its
service offering to the paper market
by acquiring BASF’s paper hydrous
kaolin activity in the United States.
refractory products locally and
in the Middle East. Imerys
provides a full range of services
ranging from product
development and production
through to delivery, installation
and on-site maintenance.
Finally, thanks to its acquisition of
Matisco (Profimo), which specializes
in the manufacture of metal profiles,
the Roofing division can now offer
its customers a comprehensive range
of finished products and accessories
for the roofing market in France,
as well as for export markets.
P R E S E N TAT I O N O F T H E G R O U P - I N N O VAT I O N
Innovative
solutions for
our customers
The Imerys group’s development strategy is founded on innovation.
New products stemming from its research programs are the
cornerstone of its commercial development in growth markets.
S
ome 400 Imerys engineers
and technicians from across
the world contribute to the
development of innovative
solutions tailored to
customer needs. Mirroring the
Group's decentralized organizational
structure, Imerys’ network of
laboratories connects research
centers and applications laboratories
that are located in close proximity to
its customers. The Group continues
to allocate significant resources to
research and is stepping up its efforts
to meet the needs of growth
markets, such as automotive,
packaging, energy, electronics,
semi-conductors, the environment,
personal care, health and beauty,
agriculture, and aerospace.
Tools and monitoring
New tools have been created to
make innovation more of a team
effort. In addition to the yearly
Innovation Seminar, an Innovation
Forum has been created to enable
marketing and technical teams
to talk with their colleagues across
the globe about customer needs,
the major market trends and new
technologies on the market.
The Innovation Fund provides
additional funding for the most
ambitious projects run by the
divisions. In 2015, two technical days
were held in partnership with
American multinationals from the
chemical and consumer goods
90
new products were launched in 2015,
generating revenue of 490 million,
or 12% of the Group total
18
of the 90 new products launched in 2015
are of benefit to the environment
3,000
registered trademarks
as of December 31, 2015
DID YOU KNOW?
Many commonly used products
exist thanks to the functional
properties of Imerys’ specialties.
This combination of expertise leads
to the manufacture of high-tech
products. Once they have been
transformed, the minerals provide
many different properties:
mechanical, thermal, optical,
chemical, or physical. For example,
talc enhances the rigidity
of the polymers in car bumpers,
graphite and carbon improve
the lifespan of batteries,
and diatomite is an essential filter
for oil, beer and wine.
sectors. The annual innovation
strategy review conducted by each
entity is a broad-ranging monitoring
exercise that contributes to aligning
the strategies of the various divisions
and business groups.
Environmental benefit
The resources allocated by the
Group to R&D have steadily
increased in recent years. In 2015,
90 new products were developed.
Products developed over the last
five years ago generated revenue
of €490 million, or 12% of the Group
total. 18 of the 90 new products
launched in 2015 are of benefit
to the environment. The Group
estimates that, by the end of 2016,
over a quarter of the projects and/or
products stemming from innovation
programs will have such an impact.
For Imerys, a product is
environmentally friendly if it meets
one of the following three criteria:
high efficiency, green alternative,
or lower carbon footprint.
The product may help reduce
resource consumption during its use
by the customer, replace existing
solutions that are potentially harmful
to health or the environment,
increase recyclability, or reduce
the environmental impact during
the life cycle of the materials.
12
R&D
A specialist center
in Japan
In June 2015, a new
technical development
center was opened in
Kawasaki, Japan. This
laboratory, which is run
by Imerys Graphite &
Carbon, specializes in
high-performance
synthetic graphite
applications for
rechargeable batteries
and fuel cells.
Imerys Graphite &
Carbon already has a
presence in Japan with
a sales team located in
Tokyo and a production
site in Fuji.
The establishment of
this R&D center has
bolstered the division’s
presence in the
Asia-Pacific area, where
most of the world's
innovations in the field
of lithium-ion batteries
are developed and
produced.
C-NERGY™ ACTILION B3 is a new form of
electroactive carbon for electrodes in
lithium-ion batteries. Automotive batteries
containing ACTILION B3 in the negative part
of the electrode benefit from high energy
densities and reduced recharging time.
2015 products
HAR® – a greener talc
The paper produced is more solid and
requires no further chemical processes
or additional treatment. This innovation
enables wrapping paper manufacturers
to reduce their energy consumption
and costs, and increase their
productivity.
INTERVIEW
Thierry Salmona
Vice-President,
Innovation, Research & Technology
& Business Support
”Our approach is
to continuously seek
improved performance
and lower costs
for our customers
and their customers
through our
new products.”
The Luzenac plant in France has
developed a new-generation HAR®
(High Aspect Ratio) talc with the
support of the laboratory in Toulouse.
By using a wet delamination process,
the production of 3G HAR® – the new
product of reference – uses 63%
less electricity than previously.
3G HAR® significantly contributes
to reducing the weight of the plastic
injection-molded parts used
in the automotive sector.
First commercial
applications for
FiberLean™ MFC
FiberLean™ MFC is a micronized
cellulose composite that replaces
10 to 15% of the fiber in pulp.
13 — I M E RYS 2 015 A N N UA L R E P O RT
With ImerPlast™,
plastics are easier to recycle
ImerPlast™, which won the
IMA-Europe Innovation Award from
the Industrial Minerals Association –
Europe, helps increase the plastics
recycling rate at competitive cost by
reducing the need for sorting; it also
increases outlets for recycled
polymers.
I M E RYS
IN FIGURES
16,000
E M PLOYE ES
250
industrial sites
008
025
400
50
R&D centers
countries
regional laboratories
researchers
90
"Innovation is the cornerstone
of the Group’s strategy.
A significant share of revenue
is dedicated to Research
& Development."
GILLES MICHEL
NEW PRODUCTS
launched in 2015
Chairman & CEO
www.imerys.com
14
The Imerys group is organized into four operational business groups.
They are customer focused and operate on different markets.
Imerys' mineral specialties are used in many everyday applications.
TRANSFORM
TO INNOVATE
15 — I M E RYS 2 015 A N N UA L R E P O RT
P R E S E N TAT I O N O F T H E B U S I N E S S G R O U P S
Energy Solutions
& Specialties
The Energy Solutions & Specialties business group, which comprises
the Carbonates, Monolithic Refractories, Graphite & Carbon and Oilfield
Solutions divisions, manufactures and sells mineral solutions to the consumer
goods and paper sectors, high-temperature industries, mobile energy,
and the oil industry.
CARBONATES
47%
42%
Carbonates
10%
Monolithic
Refractories
Graphite & Carbon
The Carbonates division produces ground calcium
carbonate (GCC), precipitated calcium carbonate (PCC)
and limestone to supply the local paper and packaging
industries, as well as for performance mineral
applications (polymers, rubber, health, beauty and
personal care products, and construction materials).
In 2015, the division’s sales were boosted by
the development of specialty applications for
consumer goods and construction, particularly
in the United States (plastic films, polymers and paints),
the acquisition of Solvay’s precipitated calcium
carbonate activities, and new production lines.
1%
Oilfield Solutions
1,253M
REVENUE
31% of Group total
MONOLITHIC REFRACTORIES
The Monolithic Refractories division develops and sells
monolithic refractories under the Calderys® brand.
These specialty materials are used for building and
repairing refractory linings and can withstand high
temperatures and severe operating conditions.
In 2015, demand held up well in Europe on industrial
markets, but declined on the steel market. The division
opened a third plant in India to meet the growing
demand there and in the Middle East.
GRAPHITE & CARBON
4,870
employees
26
countries
The Graphite & Carbon division is the world leader in
high-performance graphite and carbon black solutions.
In 2015, the division’s sales for the electronics and
automotive markets were buoyant, bolstered
by growth in the lithium-ion battery sector.
OILFIELD SOLUTIONS
The demand for ceramic proppants for nonconventional oilfields slumped further in 2015,
against a backdrop of falling oil prices since late 2014.
74
industrial sites
16
1
2
4
3
5
1 Alkaline batteries - 2 Plastic wrap - 3 Paper - 4 Mobile energy - 5 Thermal plant interior
17 — I M E RYS 2 015 A N N UA L R E P O R T
P R E S E N TAT I O N O F T H E B U S I N E S S G R O U P S
Filtration & Performance Additives
The Filtration & Performance Additives business group’s minerals and
products supply a large number of markets, including the automotive,
steel, agriculture, agri-food, construction, health, beauty and personal
care sectors.
The activities of S&B, acquired in February 2015,
were integrated into the Filtration & Performance
Additives business group, bringing new minerals –
bentonite and wollastonite – and new markets to
its portfolio. In 2015, the business group’s results
benefited from this integration, as well as from the
rapid development of new products, and the strong
performance of the automotive and consumer goods
market segments.
78%
Filtration &
Performance Minerals
22%
Performance Additives
for Metallurgy
1,081M
REVENUE
26% of Group total
3,925
employees
PERFORMANCE MINERALS
The Performance Minerals division offers many
functional additives derived from diatomite, mica,
perlite, talc, wollastonite and vermiculite. Capital
expenditure programs continued in 2015, with the aim
of increasing production capacity to meet growing
demand for talc for automotive polymers at the
Group's plants in Luzenac (France), Timmins
(Ontario, Canada), and Vermont (United States).
FILTRATION MINERALS
The Filtration Minerals activity is the world’s leading
supplier of diatomite and expanded perlite-based
products used to filter beer, wine, sweeteners and
edible oils, as well as for a range of pharmaceutical
and chemical applications. In 2015, this business group
benefited from a firm consumer goods market.
PERFORMANCE ADDITIVES FOR METALLURGY
23
countries
76
industrial sites
The Performance Additives for Metallurgy division
supplies the foundry industry with binders for sand
molds, the iron and steel industry with casting fluxes,
and a large number of intermediate industries with
bentonite- and perlite-based solutions. In 2015,
the division’s results held up well against the slump
in steel production, particularly in Europe, thanks
to the foundry sector, where many downstream
applications are related to the automotive market.
18
1
2
4
3
5
1 Cosmetics - 2 Steel coils - 3 Automotive - 4 Corn cultivation - 5 Oils
19 — I M E RYS 2 015 A N N UA L R E P O RT
P R E S E N TAT I O N O F T H E B U S I N E S S G R O U P S
Ceramic Materials
The Ceramic Materials business group comprises three divisions: Kaolin, which offers
a wide range of applications in the paper, packaging and plastics sectors; Roofing,
where the Group is the leading French producer of clay roof tiles; and Ceramics, where
Imerys is the world leader in ceramic prepared bodies for sanitaryware or tableware.
KAOLIN
42%
33%
Kaolin
Ceramics
The Kaolin division offers a product range based
exclusively on kaolin, hydrous or calcined, mainly
intended for the paper industry and used as fillers
or coating solutions. It also supplies a full range
of products intended primarily for the paints, plastics
and rubber industries. In 2015, the division stepped up
its offer on the specialties markets, while its acquisition
of BASF’s hydrous kaolin operations in the United
States will further consolidate its industrial base.
ROOFING
25%
Roofing
1,172M
REVENUE
28% of Group total
4,278
employees
20
countries
The Roofing division produces clay roof tiles and
accessories, mainly for the French construction market.
Under the umbrella brand Imerys Toiture™ the product
range includes many types of conventional clay roof
tiles, as well as photovoltaic tiles, roofing accessories
and metallic profiles. With the acquisition of Matisco,
a French company specializing in metal accessories
for roofing, the Group is now able to offer its customers
a comprehensive range of roofing solutions. In 2015,
the division's operating performance remained robust
despite the decline in the new construction market
in France.
CERAMICS
The Ceramics division is a global supplier of minerals
and ceramic prepared bodies for the sanitaryware,
tableware, tile, glass, and fiberglass industries. It covers
a broad range of minerals, including ball clay, kaolin,
feldspar, halloysite and quartz, and also provides a
wide range of solutions for technical ceramics,
including kiln furniture made from cordierite or silicon
carbide. In 2015, the division continued to benefit from
its strategy of geographic repositioning in emerging
countries and from its expansion into new segments.
Sales were also firm in traditional markets.
82
industrial sites
20
1
2
4
3
5
1 Floor tiles and sanitaryware - 2 Paints - 3 Tiles - 4 Magazine paper - 5 Aluminum profiles
21 — I M E RYS 2 015 A N N UA L R E P O RT
P R E S E N TAT I O N O F T H E B U S I N E S S G R O U P S
High Resistance
Minerals
The High Resistance Minerals business group designs mineral-based specialties
with key properties such as heat resistance, abrasiveness and conductivity.
The Refractory Minerals and Fused Minerals divisions supply the steel,
automotive and aerospace sectors.
REFRACTORY MINERALS
58%
42%
Fused
Minerals
Refractory
Minerals
The Refractory Minerals division is the world's largest
supplier to the refractory and foundry industries,
providing a comprehensive range of products used
for their mechanical, chemical and corrosion resistance,
as well as for their thermal properties. Their different
functional characteristics meet the refractory industry’s
demand for continuous performance improvement in
areas such as molding technology and precision casting.
In 2015, sales held up well in Europe, thanks to strong
performance in the automotive sector, but were
blighted by weak steel production, particularly in
the United States.
FUSED MINERALS
629M
REVENUE
15% of Group total
2,728
The Fused Minerals division is the world leader in
specialty applications for the abrasives, refractories
and technical ceramics markets, as well as in heating
elements for the iron & steel, automotive, industrial
equipment and construction industries. In 2015,
demand for the division's products was stable in
Europe, unlike in China where, due to the industrial
slowdown, the Group continued to refocus on higher
value-added products. The division's main investment
was a new production line in Austria for a new ultrafine
alumina-based product for high-performance
abrasive applications.
employees
12
countries
28
industrial sites
22
1
2
3
4
5
1 Molten steel - 2 Airplane fuselage - 3 Synthetic floor covering - 4 Ceramic hobs - 5 Abrasive grinding wheel
23 — I M E RYS 2 015 A N N UA L R E P O RT
BUSINESS GROUPS & DIVISIONS
IN FIGURES
30
DIFFERENT MINERALS
extracted and transformed
13 kg
55%
20%
of talc used
to manufacture a car
kaolin in the composition
of a porcelain plate
carbonates in a sheet
of A4 paper
20 kg
OF GRAPHITE
in an electric car
300 g/m
2
I S T H E AV E R AG E A M O U N T
OF ABRASIVE GRAINS
contained in abrasive papers
www.imerys.com
24
To reconcile its growth ambitions with its social responsibilities
over the long term, Imerys has focused its Sustainable Development strategy
on three main areas: social, governance and environment. Guided by a continuous
improvement policy, the Group has established a three-year plan that sets out
yearly priorities and objectives.
TRANSFORM
TO SHARE
25 — I M E RYS 2 015 A N N UA L R E P O RT
S O C I A L A N D E N V I R O N M E N TA L R E S P O N S I B I L I T Y - H U M A N R E S O U R C E S
Strong teams
to foster development
To support its growth strategy, Imerys drew up its Talent Road Map
in early 2015, which has created a genuine human resources momentum
in the Group and led to a number of initiatives: improving recruitment
processes, defining new key behaviors, creating guidelines
for internal mobility, and training.
Attracting
high-potential talent
To strengthen its teams and prepare
the next generation of managers,
the Group launched the Imerys
Graduates Program in 2015,
an international program for
recruiting and nurturing recent
graduates. 25 employees of
13 different nationalities joined
the Group through this program.
Hired into support and operational
functions, these employees will carry
out two, year-long assignments
in different business groups and
geographical locations.
A shared
management model
In 2015, Imerys redefined its
management model based on five
key behaviors, the Imerys
Leadership Behaviors. All activities
related to talent management –
including recruitment, evaluation of
performance and potential, and
individual career development plans
– are based on this model.
Familiarity with these behaviors will
enable employees to better manage
their careers within the Group.
Identifying, encouraging and
sharing the behaviors promoted
by Imerys will contribute to
the success of both the company
and its employees.
Leads self
Is self-aware. Develops self
and is a role model
Leads others
Leads, develops and empowers team
Communicates & collaborates
Demonstrates strong
communication, collaboration
and influence across boundaries
Delivers results
Effectively delivers sustainable results
for the short and long term
Drives improvements
Applies a continuous improvement
mindset. Anticipates future
customer/business needs
26
MANAGEMENT
NURTURING
TOMORROW'S
EXECUTIVES
The Graduates Program at
Imerys is designed to attract
young professionals and
increase their potential by
giving them two consecutive,
year-long assignments within
different business groups.
To complement these diverse
professional experiences,
these new employees also
participate in targeted
onboarding, training and
mentoring programs.
Encouraging professional
development
Next-generation
training solutions
The Group is committed to
furthering professional development
by giving employees internal career
and mobility opportunities.
Over the past year, numerous
employees were promoted through
transfers to existing structures, or to
the newly created Performance
Additives for Metallurgy division.
Furthermore, the strengthening of
operational excellence programs
also played a part in increasing
internal mobility opportunities and
external recruitment for key
functions, particularly in the Mining &
Industrial Operations department.
New hiring in management,
engineering, maintenance, civil
engineering, and procurement will
have a positive impact on the I-Cube
operational excellence program
implemented at all Group sites.
In addition, more detailed succession
plans were developed to better
anticipate needs within certain
functions. At the same time, Imerys
continued its regular external
recruitment efforts to strengthen the
ranks of its divisions and its business
groups.
27 — I M E RYS 2 015 A N N UA L R E P O RT
The three main objectives
of this program are to:
• c reate an incubator that
facilitates mobility among
the Group's different
business groups and functions
• invest in high-potential
employees who will be
the managers and experts
of the future
• f oster employee diversity
and enable professional
development in an
international environment
INTERVIEW
Bernard Vilain,
Human Resources Director
”In 2015, the launch of
the Talent Road Map
created a genuinely
dynamic environment.
In this context,
the acquisition of S&B and
the strengthening of
our industrial excellence
programs played a part in
increasing career
opportunities within
the Group.”
In 2015, after a pilot phase, more
than 1,000 employees took
advantage of the online training
solution IM-Pulse. This program
complements training provided by
the Imerys Learning Center in the
various countries where the Group
operates. Conducting effective
meetings, public speaking, and
working in a multicultural
environment are among the topics
addressed. The Environment,
Health & Safety (EHS) Department
implemented a targeted onboarding
process that introduces new site
directors and EHS managers to the
main elements of the safety system.
75%
of managers were promoted
from within
S O C I A L A N D E N V I R O N M E N TA L R E S P O N S I B I L I T Y - S A F E T Y
Business groups
take safety to heart
Safety and health are key factors in the management of Imerys sites
worldwide. The Imerys safety culture is embraced at the highest level
of the Group. Everyone, from senior management, to staff, to stakeholders,
is actively involved in ensuring the safety of employees and facilities.
The Group's approach to safety is based on three core principles: compliance,
continuous improvement and training.
Stronger safety protocols
Some operations are at higher risk
for accidents than others. Every year,
the Environment, Health & Safety
teams audit the different Group sites
and decide whether existing safety
protocols need to be revised.
In late 2015, the Group identified a
total of 18 safety protocols, all of
which matched the new industrial
standards. The I-Cube operational
excellence program helps employees
remain safety conscious at all times
and share best practices.
Raising awareness
among all employees
In 2015, every division ramped up its
existing efforts by launching and
implementing the Take 5 program,
which raises risk awareness by means
of five simple questions employees
should ask before they safely
proceed with any action.
The Take 5 Challenge competition
enables the best initiatives to be
identified. In 2015, more than 80 best
practices that came out of the
competition were shared with
Group employees.
Disseminating and
embracing the safety culture
For Imerys, and at every level of the
organization, exemplary safety
practices are essential. In 2015,
320
participants attended 9 Imerys
Safety University sessions
INTERVIEW
Chris Sheehey,
Vice-President Environmental,
Health & Safety
”At Imerys, management
at the highest level must
now take the next step
and show visible and
exemplary commitment
to security.”
Group, every site director is trained
in risk assessment, support to
employees, and behavioral safety.
In addition, the Imerys Safety
University (ISU) provides ongoing
training in the many aspects of
the Group's safety culture to increase
the expertise of site directors and
managers.
Finally, because safety issues are not
limited to operational sites, the
Group has published a policy
intended to improve the safety of
employees traveling or living
abroad, particularly in areas
considered to be at risk.
more than 200 of the Group's senior
managers participated in some ten
Safety Summits in order to improve
their risk management expertise.
The safety culture also involves
regular training of managers and
their teams. Shortly after joining the
28
S O C I A L A N D E N V I R O N M E N TA L R E S P O N S I B I L I T Y - I N D I C AT O R S
Sustainable
development indicators
The Group has defined new objectives for its 2015–2017 three-year plan.
T H E N E W S U S TA I N A B L E D E V E L O P M E N T P L A N
Imerys' Sustainable Development strategy is guided by a
continuous performance improvement plan. The new 2015–
2017 plan defines yearly priorities and objectives whose
progress is regularly monitored and evaluated. This plan plays
a key role in determining and validating the Group's
commitments with regard to social responsibility,
environmental management, governance, and ethics, as well
as the way it conducts its business.
LOST-TIME ACCIDENT
FREQUENCY RATE*
2015
1.31
2014
0.95
2013
1.31
*Number of lost-time accidents
x 1,000,000/number of hours worked.
DID YOU KNOW?
CO2 EMISSIONS
CO2 EMISSIONS
2013
2014
2015
In thousands of tons
Scope 1 and 2 of the GHG protocol
2,785
2,815
2,706
Between 2014 and 2015, Imerys' total annual Scope 1 and Scope 2 emissions
decreased by 84 kt. Overall carbon efficiency improved by 1.5%, for a total reduction
of 39 kt of CO2 emissions on a like-for-like basis. New carbon efficiency targets were
included in the 2015–2017 Sustainable Development plan.
BREAKDOWN BY EMISSION SOURCE
9.2%
3.3%
87.5%
In order to reduce direct CO2 emissions,
Imerys is improving its carbon efficiency
and optimizing its energy supply by
integrating renewable sources into the
energy mix of certain Group plants.
Imerys' Sustainable Development
performance is evaluated by
the major Environmental, Social
and Governance (ESG) research
and ratings agencies. Thanks
to the active involvement
of its employees in the area
of Sustainable Development,
the Group appears in the Euronext
Vigeo Europe 120 index, a list of
the 120 highest-rated companies
in Europe, as well as the FTSE4
Good Index Series.
ENERGY CONSUMPTION
3.3%
Energy (excluding biomass)
Processes
SO2 AN D N OX E M ISS I O N S (in to n s)
SO 2 (sulfur dioxide)
emissions
29.3%
NO X (nitrogen oxide)
emissions
6,042
45.2%
22.2%
Biomass
5,822
5,999
Natural gas
Net electricity and steam
Other fossil fuels
4,577
Biomass
3,947
3,796
Total energy consumption*
(in terajoules)
32,870
2013
2014
2015
29 — I M E RYS 2 015 A N N UA L R E P O RT
2013
2014
2015
*Several Imerys sites use combined heat and
power (CHP) production facilities. The surplus
electricity from these facilities is occasionally sold
to the national grid. Total energy consumption
does not include electricity sold.
S O C I A L A N D E N V I R O N M E N TA L R E S P O N S I B I L I T Y - S U S TA I N A B L E D E V E L O P M E N T
Social and environmental
initiatives
Every year, employees have become increasingly involved in the various
social and environmental initiatives established by the Group. With 98
new projects in 2015, the Sustainable Development Challenge attracted
its highest level of participation since its creation.
The purpose of the Group's
Sustainable Development
initiatives is to improve
the daily lives of the employees
and/or communities living near
its operational sites.
The nine winning projects
focused on the themes
of health, environment,
professional development
and education.
COMMUNITIES
Minerals for Filtration,
India
creation of a
portable, domestic
water-treatment system
that is affordable for
low-income families in rural
areas. Thanks to ImerPureTM,
the filtered water is safe
to drink, reducing the risk
of illness.
P ROJ E C T:
HUMAN RESOURCES
Calderys, India
Kaolin, Brazil
Carbonates, Mexico
computer courses
for members of the local
community to develop their
skills and improve their
employability.
P ROJ E C T:
deployment of a hospital
boat on the Amazon to provide
treatment for families who live near
the river and have limited access to
medical care.
P ROJ E C T:
Filtration and Performance
Additives, China
implementation of three
literacy classes per week for
sub-contractors to enable them to
understand safety instructions and
improve their employability.
P ROJ E C T:
improving the living
conditions of orphans in Linjiang,
near the Imerys factory, thanks to
the commitment of ten employees
who volunteered.
P ROJ E C T:
30
ENVIRONMENT
& BIODIVERSITY
Performance Additives
for Metallurgy, Greece
Education and photography:
two main sponsorship
commitments
In early 2015, Imerys redefined its sponsorship
strategy, choosing education and photography
as its key areas of commitment.
E D U C AT I O N
planting 17,500 organic
grapevines on 12 acres of land on
the island of Milos as part of the
rehabilitation of a closed mine.
P ROJ E C T:
Refractory Minerals, France
signing of a ten-year
agreement with a local nonprofit
association to monitor the
reintroduction of the European
bee-eater, a protected bird species,
at the Clérac site in the CharenteMaritime region of France.
P ROJ E C T:
Performance Minerals, France
creation of a new talc
production plant for the automotive
industry, HAR®3G, which enables a
63% reduction in electricity
consumption during the production
process.
P ROJ E C T:
The Imerys commitment
to education
The Group has launched an
educational program for the
benefit of its least-skilled
employees and populations living
near its sites. Through this
program, Imerys is specifically
fighting illiteracy, promoting
education for women and girls,
and supporting the employability
of young adults and their
integration into professional life.
Mastering basic skills (reading,
writing, arithmetics) not only
enables employees to understand
and comply with safety
objectives, but it also improves
the employability of the leastskilled Imerys employees. In India,
China, Brazil, and South Africa, as
well as in Europe and the United
States, Imerys offers literacy and
mathematics courses directly or
through local partners, and it also
participates in building and
renovating schools. The Group
and its employees provide
educational support as well as
school supplies.
PHOTOGRAPHY
Fostering access to culture
and diversity
E U R O P E A N M I N E R A L DAYS
Performance Additives
for Metallurgy, Greece
and Bulgaria
treasure hunt and open
site days for 71 high-school students
at the Milos (Greece) and Rhodopa
(Bulgaria) mines to familiarize
students with the world of minerals.
P ROJ E C T:
31 — I M E RYS 2 015 A N N UA L R E P O RT
By supporting photography,
Imerys aims to demonstrate its
social commitment and foster
access to culture and diversity.
In 2015, in the state of Pará in
Brazil, a photography contest
was organized that drew more
than 140 amateur and
professional photographers.
Approximately 40 of them were
chosen to create a
photographical record of the
Group's social initiatives. The
winning photographs were
exhibited in Brazil and
Argentina, as well as at
traveling exhibitions across
Asia and Europe.
Every year, the Group's sites
and neighboring communities
are photographed by
professional and amateur
photographers in order to
promote the Group's social
initiatives, the minerals and the
people who transform them.
SOCIAL RESPONSIBILITY
IN FIGURES
260,941
HOURS
of training provided in 2015
80
best practices for safety presented
during the Take 5 Challenge
98
PROJ ECTS
entered in the Sustainable
Development competition
49
training modules organized
by Imerys Learning Center
18
new products of proven
benefit to the environment
1.5%
IMPROVEMENT IN CARBON EFFICIENCY
for a total reduction of
39,000 tons in CO2 emissions
www.imerys.com
32
GOVERNANCE
& SHAREHOLDERS’
NOTEBOOK
33 — I M E RYS 2 015 A N N UA L R E P O RT
GOVERNANCE & SHAREHOLDERS’ NOTEBOOK
Executive Committee
Under the responsibility of the Chairman & Chief Executive Officer, the Executive Committee
implements the strategy determined by the Board of Directors, draws up policies, sets
improvement goals for the Group’s performance, determines the action plans to be set up
by operating activities and monitors their progress. It is composed of the Group’s principal
operations and support managers.
GILLES
MICHEL
FRÉDÉRIC
BEUCHER
A L E S S A N D RO
DA Z Z A
OLIVIER
H AU T I N
DA N I E L
MONCINO
Chairman &
Chief Executive Officer
Vice-President,
Ceramic Materials
business group
Vice-President,
High Resistance Minerals
business group
Vice-President,
Energy Solutions &
Specialties business group
Vice-President,
Filtration & Performance
Additives business group
DENIS
MUSSON
OLIVIER
P I ROT T E
T H I E R RY
SALMONA
BERNARD
VILAIN
Vice-President,
General Counsel and
Company Secretary
Chief Financial
Officer
Vice-President, Innovation,
Research & Technology
& Business Support
Vice-President Human
Resources
Board of Directors
The Board of Directors, assisted by its specialized Committees, has permanent control over
Executive Management’s running of the Company. It approves strategic orientations and authorizes
major operations that are decisive for the Group’s future.
At December 31, 2015
Gilles MICHEL
Chairman & Chief Executive Officer
Amaury DE SEZE
Vice-Chairman
Éliane AUGELET-PETIT(1)
Aldo CARDOSO (2)
Paul DESMARAIS III
Ian GALLIENNE
Marion GUILLOU (2)
Colin HALL (3)
Giovanna KAMPOURI MONNAS (2)(3)
Ulysses KYRIACOPOULOS (3)
Fatine LAYT(2)
Xavier Le CLEF
Arielle MALARD DE ROTHSCHILD (2)
Enrico D’ORTONA(1)
Robert PEUGEOT(2)
Laurent RAETS (3)
Katherine TAAFFE RICHARD (2)(3)
Marie-Françoise WALBAUM (2)
Organization and functioning
The Company is organized as a French Limited Liability Company
(Société Anonyme) with a Board of Directors (Conseil d’Administration)
chaired since April 28, 2011, by Mr. Gilles Michel, Chairman and
Chief Executive Officer. The Board also appointed a Vice-Chairman
from among its members, tasked in particular with assisting the Chairman
of the Board of Directors in managing and organizing the work of the Board
and its Committees. Mr. Amaury de Seze was appointed Vice-Chairman
on April 29, 2014.
The Board of Directors is composed of 18 members. Since October 2014,
two Directors represent the employees.
The Board of Directors met six times in 2015, with a 91.42% attendance rate.
5 meetings are scheduled in 2016.
(1) Employee representative Directors
(2) Independent Director
(3) Director appointed during fiscal 2015
34
Specialized Committees
Under the responsibility of the Board of Directors, the specialized Committees have an advisory role.
They give the Board the benefit of their opinions and recommendations in preparing its decisions.
STRATEGIC COMMITTEE
(At December 31, 2015)
APPOINTMENTS AND COMPENSATION COMMITTEE
Amaury DE SEZE – Chairman
Ian GALLIENNE – Chairman
Ian GALLIENNE
Aldo CARDOSO*
Marion GUILLOU*
Paul DESMARAIS III
Arielle MALARD DE ROTHSCHILD*
Ulysses KYRIACOPOULOS
Robert PEUGEOT*
Xavier LE CLEF
Robert PEUGEOT*
Amaury DE SEZE
The Committee examines the
Group’s industrial, commercial and
financial strategic orientations and
checks that the strategy set by the
Board of Directors is implemented
by Executive Management. It also
examines the main risk factors for
the Group and the related internal
controls in the following fields:
external environment (investor
relations, market positions), internal
processes (financial resources
management, human resources
potential, mineral reserves and
resources) and management
information (management control
and financial reporting, capital
projects).
The Strategic Committee met eight
times in 2015, with an 86.36%
attendance rate. 6 meetings are
scheduled in 2016.
S TAT U TO RY
AU D I TO R S
PRINCIPAL: Ernst & Young et Autres
Represented by Jean-Roch Varon
ALTERNATE: Auditex
PRINCIPAL: Deloitte & Associés
Represented by Frédéric Gourd
ALTERNATE: BEAS
A majority of the Committee's members are independent
directors in accordance with the recommendations
of the AFEP-MEDEF Code of Corporate Governance.
The Committee gives an opinion on the composition
of the Board of Directors and proposes changes with regard,
in particular, to the Company's ownership structure,
the diversity of its members and their independent status.
It also reviews Executive Management appointments,
compensation and benefit proposals for corporate officers and
the general long-term compensation and retention policy for
top managers (including performance share awards).
The Appointments and Compensation Committee met twice
in 2015, with an 80% attendance rate. 3 meetings are
scheduled in 2016.
AUDIT COMMITTEE
Aldo CARDOSO* – Chairman
Colin HALL
Marie-Françoise WALBAUM*
Two-thirds of the Committee's
members are independent
directors as recommended by
the AFEP-MEDEF Code of
Corporate Governance.
The Audit Committee reviews
Imerys’ annual and half-yearly
statutory and consolidated
financial statements, makes sure
that the accounting methods
used are appropriate and
consistent, and reviews the
Group’s debt position. It controls
the process for producing and
disseminating accounting and
financial information, supervises
the related communication policy
and procedures, and makes sure
that published information is
consistent and appropriate.
* Independent Director.
35 — I M E RYS 2 015 A N N UA L R E P O RT
The Audit Committee selects and
recommends candidates for
the position of Statutory Auditor.
It reviews the schedule and results
of work performed by the internal
and external auditors and by the
internal control department. It
reviews the orientations and
achievements of the Group’s
Sustainable Development
Strategy, the mapping of the
Group’s main risks and, in depth,
its financial and legal risks, as well
as the related internal controls,
and prevention and insurance
policies.
The Committee met four times
in 2015, with an attendance rate
of 75%. 5 meetings are scheduled
in 2016.
GOVERNANCE & SHAREHOLDERS’ NOTEBOOK
Imerys at the service
of its shareholders
The Imerys share price rose by 5.6% in 2015 after a limited
decline in 2014 in an environment of stock market volatility.
The Group continued to develop its relations
with shareholders and institutional investors.
Keeping you informed
Imerys pays special attention to its
shareholders by keeping them
updated on its activities, strategy,
capital expenditure, results and
outlook. This goal is reflected in
the various communication vehicles
that involve shareholders in the
Group’s life:
- The website www.imerys.com
provides news about the Group’s
developments, share price, etc.
A specific section for individual
shareholders gives direct access
to the “Individual Shareholder’s
Guide”;
- The Letter to Shareholders is
published several times a year,
presenting the Group’s news,
results and outlook;
- Annual business report;
- Registration Document – Annual
Financial Report, and half-year
financial report;
- A dedicated phone line and email
address.
Helping you
to manage your shares
Imerys offers a special service
for its shareholders who opt to
register their shares directly on the
Company's register (1). In addition
to exemption from all custody
fees and some management fees,
the Group also provides a secure
online service where shareholders
can manage their share portfolio,
www.nomi.olisnet.‌com. The website
gives access to information about
the shares, share prices, latest
movements, availability of the
shares and attached voting rights
(each share held for more than
two years benefits from double
voting rights). All documentation
concerning the Company’s Annual
General Meeting is available on the
website and shareholders can also
use it to vote online. Registered
shareholders also receive notice of
General Meetings and information
about the Group. Shareholders
wishing to register their shares on
the Company's register should apply
to their financial intermediary who
will contact CACEIS Corporate Trust.
CACEIS Corporate Trust will then
send you any documents needed for
registration.
Enriching contacts with
the financial community
Imerys maintains ongoing, open
and transparent relations with the
entire financial, institutional and
socially responsible community
through individual meetings, sector
conferences and conference calls.
More than 350 meetings organized
throughout 2015 enabled the
Executive Management and the
Investor Relations team to dialog
with financial analysts, institutional
investors and international fund
managers.
Imerys share
The Imerys share is included in
more than 60 international indexes,
including the SBF 120 and DJ
Eurostoxx 600. The Group remains
attentive to the ratings of nonfinancial rating agencies, particularly
FTSE, Vigeo-EIRIS, EthiFinance,
Oekom, Trucost and Sustainanalytics.
Since September 2006, Imerys
has been part of the FTSE4Good
responsible investing index as well
as the MSCI Global Sustainability
Index Series and STOXX® Global
ESG Leaders. It is also included in
NYSE Euronext Vigeo Europe 120
and Eurozone 120, and Ethibel's
"Excellence Europe" index, which
comprises 200 companies rated on
a best-in-class basis and on ethical
exclusion criteria. Imerys is also
part of EthiFinance's Gaia index,
which comprises the 70 best small
& mid cap stocks based on socially
responsible criteria.
(1) Shares registered in the holder’s name
are kept on Imerys' share register
and administrated by CACEIS.
This identification makes direct,
personalized contact possible.
36
D ATA P E R S H A R E : N E T I N C O M E F R O M C U R R E N T O P E R AT I O N S ,
GROUP SHARE AND DIVIDEND
4.03
1.60
2013
4.15
1.65
2014
Data per share
4.31
Dividend (€)
Net income from current
operations per share (€)
1.75(1)
(1) Proposed at the
Shareholders’ General
Meeting of May 4,
2016. If approved, the
dividend will be paid as
from May 12, 2016.
2015
2013
2014
2015
Weighted average number
of outstanding shares
(thousands)
75,551
76,135
79,276
Outstanding shares on
December 31 (thousands)
76,238
75,886
79,572
High
€63.51
€63.52
€73.41
Low
€45.76
€58.24
€57.00
Closing price
€63.21
€61.01
€64.42
€4,819M
€4,630M
€5,126M
Market capitalization at
December 31
LISTING MARKET
SHARE PRICE TRENDS
FROM JAN. 1, 2015 TO MAR. 31, 2016
Euronext Paris,
Eligible for SRD (deferred settlement)
Eurolist Market Compartment A
Par value: 2
(source: Euronext)
Trading volumes (thousands of shares)
In €
Imerys: stable
SBF 120: +3.4%
70
6,000
60
4,500
50
3,000
40
1,500
0
01/15 02/15 03/15 04/15 05/15 06/15 07/15 08/15 09/15 10/15
Imerys price
SBF 120
11/15
12/15
01/16 02/16 03/16
Imerys volumes
DISTRIBUTION OF CAPITAL AND VOTING RIGHTS
AT MARCH 1, 2016
Total number of theoretical voting tights (%)
3%
5%
54%
41%
70%
INDEXES
Imerys is a member of more than 60
international indexes, including SBF
120, CAC All tradable index, CAC Mid
& Small, DJ Eurostoxx 600, STOXX
Europe 600 Basic Resources, Euro
STOXX Basic Resources, MSCI
Standard Developed, and MSCI
Europe.
FTSE4Good, Vigeo Europe 120 and
Eurozone 120, Ethibel Sustainability
Index Excellence Europe, Gaïa Index,
MSCI Global Sustainability Index
Series, and STOXX Global ESG
Leaders Index.
Financial
Communication
Agenda 2016
F R I D AY, A P R I L 2 9
1st quarter 2016 results
W E D N E S D AY, M AY 4
Shareholders’ General Meeting
T H U R S D AY, M AY 1 2 ( F R O M )
Release dividend payment
27%
Belgian Securities BV (GBL)
Other shareholders
Blue Crest Holding
(Kyriacopoulos Family)
37 — I M E RYS 2 015 A N N UA L R E P O RT
ISIN FR0000120859
Ticker: NK
Reuters IMTP. PA
Bloomberg NK. FP
SRI INDEXES
In 2015, market volatility remained very high, mainly due to concerns about the
slowdown in emerging countries, China in particular. In the second half of the year,
the Imerys share suffered from falling oil prices, which impacted its Oilfield
Solutions division. However, it benefited from the rebound in European stock
markets towards the end of the year, supported by the publication of strong
quarterly results. Against this backdrop, the share price rose by 5.6% over the
period compared with a rise of 9% for its benchmark index, the SBF 120 index.
Total number of shares
as a % of capital
CODES
W E D N E S D AY, J U LY 2 7
1st half 2016 results
F R I D AY, O C T O B E R 2 8
3rd quarter 2016 results
GOVERNANCE & SHAREHOLDERS’ NOTEBOOK
Simplified financial
statements
CONSOLIDATED INCOME STATEMENT ( millions)
Revenue
EBITDA(1)
2012
2013
2014
2015
3,884.8
3,697.6
3,688.2
4,086.7
662.5
650.4
673.8
745.4
Current operating income
488.1
477.0
494.6
538.1
Current financial income
(69.1)
(52.7)
(45.1)
(55.5)
(116.6)
(118.0)
(131.5)
(140.5)
(1.7)
(2.1)
(1.7)
(0.7)
300.7
304.2
316.3
341.5
(9.4)
(62.2)
(44.7)
(273.1)
291.3
242.0
271.6
68.4
2013
2014
2015
(2)
Current tax
Minority interests
Net income from current operations, Group share(3)
Other revenue and expenses net, Group share
Net income, Group share
(1) Current operating income plus depreciation expense and provisions, net of reversals.
(2) Operating income before other operating revenue and expenses.
(3) Net income before other operating revenue and expenses, net.
CONSOLIDATED BALANCE SHEET ( millions)
2012
Assets
Net non-current assets(4)
2,952.6
2,966.1
3,148.0
3,878.3
Current assets
1,367.2
1,282.6
1,426.8
1,573.5
Other assets
202.7
202.5
163.8
285.8
Cash(5)
299.1
421.7
683.8
431.2
4,821.6
4,872.9
5,422.4
6,168.8
2,261.0
2,271.7
2,470.5
2,671.9
Total
Liabilities and shareholders’ equity
Net worth (including minority interests)
Provisions
Gross financial debt(5)
Other liabilities
Total
(4) Of which mining assets
(5) i.e. net financial debt of
579.5
484.7
589.2
646.3
1,174.0
1,307.1
1,553.6
1,911.6
807.1
809.4
809.1
939.0
4,821.6
4,872.9
5,422.4
6,168.8
493.4
874.8
428.2
885.4
471.6
869.8
552.3
1,480.4
38
4,087M
342M
REVENUE
NET INCOME
139M
D I V I D E N D PAYO U T P R O P O S E D
WITH RES PECT TO 2015
CASH FLOW STATEMENT AND CHANGE IN NET FINANCIAL DEBT ( millions)
2012
2013
2014
2015
662.5
650.4
673.8
745.4
(135.7)
(132.7)
(144.6)
(156.7)
15.3
32.0
(48.9)
21.8
(257.1)
(253.1)
(241.5)
(271.6)
Current free operating cash flow
289.4
306.4
244.1
342.5
Financial income (expense) net of tax
(49.9)
(24.3)
(21.0)
(31.8)
EBITDA
Notional tax on current operating income and other
depreciation
Change in operating WCR(1)
Paid capital expenditure
(2)
Change in other WCR items, deferred tax and other
62.8
6.1
4.4
27.7
Current free cash flow
302.3
288.2
227.5
338.4
External growth / Divestments
17.5 (3)
(143.6)
(0.5)
(943.2)
Non-recurring cash flow
(54.7)
(54.5)
(15.0)
(59.5)
Dividends
(114.1)
(119.2)
(125.3)
(132.6)
(2.4)
30.9
(42.6)
227.0
7.7
(12.4)
(28.6)
(40.6)
156.3
(10.6)
15.5
(610.5)
Capital transactions
Foreign exchange / Other movements
Decrease (increase) in net financial debt
(1) Working capital requirement.
(2) Current free operating cash flow: EBITDA deducted from notional tax, changes in working capital requirement and paid capital expenditure.
(3) Including non-recurring sales of fixed assets for €66 million in 2012.
R E G I S T R A R S E RV I C E
C AC E I S CO R P O R AT E T RU S T
14, rue Rouget-de-Lisle
92862 Issy-les-Moulineaux Cedex 9, France
Tel.: +33 (0)1 57 78 34 44
Fax: +33 (0)1 49 08 05 80
e-mail: ct-contact@caceis.com
39 — I M E RYS 2 015 A N N UA L R E P O RT
S H A R E H O L D E R CO N TAC TS
I M E RYS F I N A N C I A L CO M M U N I C AT I O N S
154, rue de l’Université
75007 Paris, France
Tel.: +33 (0)1 49 55 66 55
Fax: +33 (0)1 49 55 63 16
e-mail: shareholders@imerys.com
I M E RYS
ON THE WEB
WWW.IMERYS.COM
FACEBOOK
LINKEDIN
TWITTER
@Imerys
INSTAGRAM
YOUTUBE
ImerysReplay
40
Design
and production —
Photo credits —
Lorena Fadul, Fotolia, Imerys,
iStock, Dominique Lecuivre,
Alain Lefebvre and Metso.
Print —
Chirat. This report is printed on FSC
certified paper and contains Imerys
pigments.
154, rue de l’Université – F–75007 Paris
Telephone: +33 (0)1 49 55 63 00
Fax: +33 (0)1 49 55 63 01
www.imerys.com
TRANSFORM TO PERFORM
Imerys – French limited liability company
(Société Anonyme)
Share capital: €159,144,982
Trade register: RCS Paris 562 008 151