IMERYS (EPA:NK) - Imerys presents its 2019-2022 strategic plan at its Capital Markets Day

Transparency directive : regulatory news

12/06/2019 17:40

PRESS RELEASE

PARIS, JUNE 12, 2019

  Imerys presents its 2019-2022 strategic plan at its Capital Markets Day

* Implementation of a 6-pillar Group transformation program "Connect & Shape"
* Ambition to gradually ramp up organic growth to reach underlying markets
  level(1) by 2022
* EUR100 million expected cost savings in full in 2022
* Operating profitability target: 2022 Current EBITDA margin up by +200 basis
  points vs. 2018(2)

Imerys will host a Capital Markets Day on June 13 in London, during which the
Group will present its strategic 2019-2022 orientations.

CEO Conrad Keijzer commented:

" Imerys has successfully repositioned its portfolio into a pure player in
specialty mineral solutions to become the global leader with a strong Corporate
and Social Responsibility commitment. It has achieved leadership positions in
most of its businesses, with a strong customer base and a diversified portfolio
of high-performance solutions. Imerys has launched a transformation program
with an ambition to step up organic growth and improve profitability. With this
"Connect & Shape" program, we will become more market focused and
customer-centric, while building a simpler organization. We will drive
functional excellence with more expertise and standardized processes and
accelerate in high growth geographies. Our new operating model will allow for
better operating leverage and easier integration and synergies extraction from
future acquisitions."

Connect & Shape action plan

With our "Connect & Shape" transformation program, Imerys adopts a new
operating model which relies on 6 pillars aiming to step-up its organic growth
and improve its operating profitability in the medium term.

Ambition to step up organic growth

* Customer-centric organization to capture full growth potential
* Differentiated business mandates to allocate resources to higher growth
  businesses
* Increased focus on high-growth geographies
* Continued M&A with better integration model

Target to improve profitability

* Leaner and more efficient organization
* Functional excellence in operations and purchasing

(1) Estimated average underlying markets growth of ca. 2% per year in normal
trading conditions.
(2) Current EBITDA margin was 17.3% in 2018.

2022 key financial targets

Imerys has the ambition to gradually ramp up its organic growth and increase
its profitability.

Improved growth and profitability profile

* Ambition to gradual ramp up of organic growth to reach underlying markets
  level by 2022
* EUR100 million expected cost savings in full in 2022
* 2022 current EBITDA margin up by +200 bp versus 2018

Disciplined capital allocation

* EUR300 million - EUR350 million annual total capital expenditures
* Development capital expenditures with target IRR of 15%
* Acquisitions with ROCE > WACC within 3 full years of integration

Sound balance sheet

* Solid investment grade rating

Commitment to attractive shareholder returns

* Consistent dividend growth in line with growth in net income from current
  operations per share, with flexible payout ratio

Live webcast and replay

The event will start at 9:30 CET in London on June 13, 2019. It can be watched
on a live webcast at the following address:

https://channel.royalcast.com/webcast/imerys/20190613_1/.

The presentations may be downloaded and subsequently a replay will be made
available at: www.imerys.com/finance.

Financial agenda 2019

July 25, 2019 (post market)       H1 2019 Results
October 29, 2019 (post market)    Q3 2019 Results

These dates are tentative and may be updated on the Group's website at
www.imerys.com/finance, in the Investors & Analysts / Financial Agenda section.

The world leader in mineral-based specialty solutions for industry, with EUR4.6
billion revenue and 18,000 employees, Imerys delivers high value-added,
functional solutions to diversified set of industrial sectors, from processing
industries to consumer goods. The Group draws on its knowledge of applications,
technological expertise and its material science know-how to deliver solutions
based on beneficiation of its mineral resources, synthetic minerals and
formulations. These contribute essential properties to customers' products and
performance, including refractoriness, hardness, conductivity, opacity,
durability, purity, lightness, filtration, absorption and repellency. Imerys is
determined to develop responsibly, in particular by fostering the emergence of
environmentally-friendly products and processes.

More comprehensive information about Imerys may be obtained from its website
(www.imerys.com) under Regulated Information, particularly in its Registration
Document filed with Autorité des marchés financiers on March 20, 2019 under
number D.19-0175 (also available from the Autorité des marchés financiers
website, www.amf-france.org). Imerys draws the attention of investors to
chapter 4, "Risk Factors and Internal Control", of its Registration Document.

Disclaimer: This document contains projections and other forward-looking
statements. Investors are cautioned that such projections and forward-looking
statements are subject to various risks and uncertainties (many of which are
difficult to predict and generally beyond the control of Imerys) that could
cause actual results and developments to differ materially from those expressed
or implied.

Analyst / Investor Relations:

Vincent Gouley - +33 (0)1 4955 6469
finance@imerys.com

Press contacts:

Claire Garnier - +33 (0)1 4955 6427
Philémon Tassel - +33 (0)6 3010 9611

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