MINERAL SOLUTIONS FOR A CHANGING WORLD · mineral solutions for a changing world a world leader in...

2015 ANNUAL REPORT

MINERAL SOLUTIONS FOR A CHANGING WORLD

01 PROFILE

02 - Interview with Gilles Michel, Chairman and CEO

05 TRANSFORM TO PERFORM

06 - Business Groups & Markets08 - Map of global operations 10 - Development12 - Innovation14 - Imerys in figures

15 TRANSFORM TO INNOVATE

16 - Energy Solutions & Specialties18 - Filtration & Performance Additives20 - Ceramic Materials22 - High Resistance Minerals24 - Business Groups & Divisions in figures

25 TRANSFORM TO SHARE

26 - Human resources28 - Safety29 - Sustainable development indicators 30 - Social and environmental initiatives32 - Social responsibility in figures

33 GOVERNANCE & SHAREHOLDERS’ NOTEBOOK

34 - Governance36 - 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 NWE 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 NWE 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 NWE 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 CO

2 emissions

and extend battery life. Innovation is the cornerstone of Imerys’ strategy.

M A R K E T SWE 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 NWE 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 TWE ARE COMMITTED TO SUSTAINABLE DEVELOPMENT

Our job is to transform minerals in an environmentally friendly manner. In order to reduce our CO

2 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.

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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.

1 — I M E R Y S 2 0 1 5 A N N U A L R E P O R T0 1 — I M E R Y S 2 0 1 5 A N N U A L R E P O R T

GILLES MICHELCHAIRMAN & CEO

Imerys continues its development strategy by investing in industrial capacity, expanding its business portfolio and innovating. ”

0 2

Another year of earnings growthINTERVIEW WITH GILLES MICHEL CHAIRMAN & CEO

I N T E R V I E W

0 3 — I M E R Y S 2 0 1 5 A N N U A L R E P O R T

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.

+10.8%growth in revenue in 2015 to €4,087M

+8.0%growth in net income from current operations to €342M

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.”

I N T E R V I E W

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.

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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


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Business Groups & MarketsImerys 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.

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

CONSTRUCTIONRoof tiles, window profiles, cement production, etc.—

ELECTRONICSDevice structure, processors, semiconductors, etc.—

AUTOMOTIVE, INDUSTRIAL EQUIPMENT AND CONSUMER DURABLES Plastics, batteries, paint, bodywork, tooling, etc.—

ENERGYBatteries, photovoltaic cells and panels, oil and gas drilling, etc.—

DECORATIVE MATERIALS AND FITTINGS Sanitaryware, tableware, flooring, paint, floor tiles, etc.—

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


STEELMAKING AND METALLURGY Refractory linings for furnaces, etc.—

AGRI-FOOD Filtration of beer, wine, drinking water, fruit juice, etc.—

PAPERCatalogues, advertising materials, brochures, magazines, specialty papers, etc.—

PACKAGINGPlastic films, special packaging, cardboard, etc.—

HEALTH, BEAUTY AND PERSONAL CAREDeodorant, skin creams, toothpaste, personal care products, etc.—

HORTICULTURE AND AGRICULTUREHydroponics, UV protection, repellents, etc.—

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.

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CZECH REPUBLIC

SWITZERLAND SLOVENIA

AUSTRIA HUNGARY

UKRAINE

BULGARIA

GEORGIA

SWEDEN

NETHERLANDSGERMANY

ITALYGREECE

NORWAY

BELGIUM

UNITED KINGDOM

FRANCE

SPAIN

EGYPT

BRAZIL

UNITED STATES

CANADA

ARGENTINA

CHILE

TURKEY

BAHRAIN

INDIA

THAILAND

CHINA

ZIMBABWE

SOUTH AFRICA AUSTRALIA

VIETNAM

MALAYSIA

MEXICO

INDONESIA

JAPAN

NEW ZEALAND

TAIWAN

A global presenceImerys 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.

ENERGY SOLUTIONS & SPECIALTIES

CarbonatesMonolithic RefractoriesGraphite & CarbonOilfield Solutions

FILTRATION AND PERFORMANCE ADDITIVES

Filtration & Performance AdditivesPerformance Additives for Metallurgy

CERAMIC MATERIALS

KaolinRoofingCeramics

HIGH RESISTANCE MINERALS

Fused MineralsRefractory Minerals

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


CZECH REPUBLIC

SWITZERLAND SLOVENIA

AUSTRIA HUNGARY

UKRAINE

BULGARIA

GEORGIA

SWEDEN

NETHERLANDSGERMANY

ITALYGREECE

NORWAY

BELGIUM

UNITED KINGDOM

FRANCE

SPAIN

EGYPT

BRAZIL

UNITED STATES

CANADA

ARGENTINA

CHILE

TURKEY

BAHRAIN

INDIA

THAILAND

CHINA

ZIMBABWE

SOUTH AFRICA AUSTRALIA

VIETNAM

MALAYSIA

MEXICO

INDONESIA

JAPAN

NEW ZEALAND

TAIWAN

NORTH AMERICA

24%EMERGING COUNTRIES

27%JAPAN /

AUSTRALIA

5%WESTERN EUROPE

44%

1 0

Industrial development and new marketsImerys’ 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.

AbrasivesIn Austria, the first new-generation abrasives production line came on stream, enabling the Group to meet performance requirements in this sector.

AutomotiveThe 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.

CeramicsIn 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 industriesIn 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 & packagingA 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.

PlasticsA new carbonates plant for plastic films for the food industry has been launched in the United States.

Selective acquisition strategyIn 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.

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

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.”

11 — I M E R Y S 2 0 1 5 A N N U A L R E P O R T

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

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.

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.

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.

S & B

A value-creating acquisition

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.

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

I N D I A

A new plant

78Min development investments

in 2015

12%of revenue

generated by new products

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Innovative solutions for our customersThe 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.

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

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.

S 90

new products were launched in 2015, generating revenue of 490 million,

or 12% of the Group total

18of the 90 new products launched in 2015

are of benefit to the environment

3,000registered trademarks

as of December 31, 2015

P R E S E N TAT I O N O F T H E G R O U P - I N N O V AT I O N

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.

D I D Y O U K N O W ?


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.”

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.

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.

R & D

A specialist center in Japan

2015 productsHAR® – a greener talc

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.

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.

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.

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E M P L O Y E E S

90N E W P R O D U C T S

launched in 2015

"Innovation is the cornerstone of the Group’s strategy.

A significant share of revenue is dedicated to Research

& Development."GILLES MICHELChairman & CEO

www.imerys.com

I M E R Y S I N F I G U R E S

16,000

50countries

250industrial sites

008 R&D centers

025 regional laboratories

400 researchers


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

1 6

CARBONATES

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.

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

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 non-conventional oilfields slumped further in 2015, against a backdrop of falling oil prices since late 2014.

Energy Solutions & Specialties

1,253M

4,870 employees

74industrial sites

26countries

42%Monolithic Refractories

47%Carbonates

10%Graphite & Carbon

1%Oilfield Solutions

R E V E N U E

31% of Group total

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.

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


1 Alkaline batteries - 2 Plastic wrap - 3 Paper - 4 Mobile energy - 5 Thermal plant interior

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3

4

1

5

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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.

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

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.

Filtration & Performance Additives

3,925 employees

76industrial sites

23countries

R E V E N U E

26% of Group total

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.


22%Performance Additives

for Metallurgy

78%Filtration &

Performance Minerals

1,081M


1 Cosmetics - 2 Steel coils - 3 Automotive - 4 Corn cultivation - 5 Oils

1

4

3

5

2

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KAOLIN

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

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.

Ceramic Materials

4,278 employees

82industrial sites

20countries

33%Ceramics

42%Kaolin

25%Roofing

R E V E N U E

28% of Group total

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.


1,172M


1 Floor tiles and sanitaryware - 2 Paints - 3 Tiles - 4 Magazine paper - 5 Aluminum profiles

1

3

2

5

4

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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

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.

High Resistance Minerals

58%Fused

Minerals

42%Refractory 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.


2,728 employees

28industrial sites

12countries

R E V E N U E

15% of Group total

629M


1 Molten steel - 2 Airplane fuselage - 3 Synthetic floor covering - 4 Ceramic hobs - 5 Abrasive grinding wheel

1

54

2

3

2 4

D I F F E R E N T M I N E R A L S

extracted and transformed

13 kgof talc used

to manufacture a car

20%carbonates in a sheet

of A4 paper

20 kg 300 g/m2

O F G R A P H I T E

in an electric car

I S T H E A V E R A G E A M O U N T O F A B R A S I V E G R A I N S

contained in abrasive papers

www.imerys.com

B U S I N E S S G R O U P S & D I V I S I O N S I N F I G U R E S

30

55%kaolin in the composition

of a porcelain plate


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

2 6

Strong teams to foster developmentTo 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 talentTo 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 modelIn 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 selfIs self-aware. Develops self and is a role model

Leads othersLeads, develops and empowers team

Communicates & collaboratesDemonstrates strong communication, collaboration and influence across boundaries

Delivers resultsEffectively delivers sustainable results for the short and long term

Drives improvementsApplies a continuous improvement mindset. Anticipates future customer/business needs

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


M A N A G E M E N T

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.

The three main objectives of this program are to:• create 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

• foster employee diversity and enable professional development in an international environment

75%of managers were promoted

from within

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.”

Encouraging professional developmentThe 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.

Next-generation training solutionsIn 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.

2 8

Business groups take safety to heartSafety 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 protocolsSome 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 employeesIn 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 cultureFor Imerys, and at every level of the organization, exemplary safety practices are essential. In 2015,

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

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.

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

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.”

320participants attended 9 Imerys

Safety University sessions


The Group has defined new objectives for its 2015–2017 three-year plan.

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

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.

D I D Y O U K N O W ?

ENERGY CONSUMPTION

Total energy consumption* (in terajoules)

32,870

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.

*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.

CO2 EMISSIONS 2013 2014 2015

In thousands of tonsScope 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 CO

2 emissions on a like-for-like basis. New carbon efficiency targets were

included in the 2015–2017 Sustainable Development plan.

C O2

E M I S S I O N S

BREAKDOWN BY EMISSION SOURCE

Energy (excluding biomass) Processes Biomass

Sustainable development indicators

SO2 (sulfur dioxide)

emissionsNOX (nitrogen oxide)

emissions

S O2 A N D N O

X E M I S S I O N S ( i n t o n s )

2015

3,7963,947

20142013

4,577

2015

5,9995,822

20142013

6,042

*Number of lost-time accidents x 1,000,000/number of hours worked.

LOST-TIME ACCIDENT FREQUENCY RATE*

1.31

0.95

1.312015

2014

2013

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.

45.2%22.2%

3.3%

29.3%

Other fossil fuels

Biomass

Net electricity and steam

Natural gas

87.5%

3.3%9.2%

3 0

Social and environmental initiativesEvery 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.

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

Calderys, India

Minerals for Filtration, IndiaP R O J E C T : 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.

Filtration and Performance Additives, China

P R O J E C T : improving the living conditions of orphans in Linjiang, near the Imerys factory, thanks to the commitment of ten employees who volunteered.

Kaolin, BrazilP R O J 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 R O J E C T : implementation of three literacy classes per week for sub-contractors to enable them to understand safety instructions and improve their employability.

Carbonates, Mexico

P R O J E C T : computer courses for members of the local community to develop their skills and improve their employability.

C O M M U N I T I E S

H U M A N R E S O U R C E S


Education and photography: two main sponsorship commitmentsIn early 2015, Imerys redefined its sponsorship strategy, choosing education and photography as its key areas of commitment.

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.

Performance Additives for Metallurgy, Greece

P R O J E C T : planting 17,500 organic grapevines on 12 acres of land on the island of Milos as part of the rehabilitation of a closed mine.

Refractory Minerals, France P R O J E C T : 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 Charente-Maritime region of France.

Performance Minerals, FranceP R O J E C T : 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.

Performance Additives for Metallurgy, Greece and Bulgaria

P R O J E C T : 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.

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

E D U C A T I O N

The Imerys commitment to education

P H O T O G R A P H Y

Fostering access to culture and diversity

and comply with safety objectives, but it also improves the employability of the least-skilled 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.

E N V I R O N M E N T & B I O D I V E R S I T Y

E U R O P E A N M I N E R A L D A Y S

3 2

260,941H O U R S

of training provided in 2015

49training modules organized by Imerys Learning Center

80 best practices for safety presented

during the Take 5 Challenge

18new products of proven

benefit to the environment

98 1.5% P R O J E C T S

entered in the Sustainable Development competition

I M P R O V E M E N T I N C A R B O N E F F I C I E N C Y

for a total reduction of 39,000 tons in CO

2 emissions

www.imerys.com

S O C I A L R E S P O N S I B I L I T Y I N F I G U R E S


GOVERNANCE & SHAREHOLDERS’ NOTEBOOK

3 4

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.

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.

G I LLES M I CH E LChairman &

Chief Executive Officer

D E N IS M USSO N

Vice-President, General Counsel and Company Secretary

FRÉ D É RI C B EUCH E R

Vice-President, Ceramic Materials

business group

O LIVI E R P I ROT TE

Chief Financial Officer

ALESSAN D RO DA Z Z A

Vice-President, High Resistance Minerals

business group

TH I E RRY SALM O NA

Vice-President, Innovation, Research & Technology

& Business Support

O LIVI E R HAUTI N

Vice-President, Energy Solutions &

Specialties business group

B E RNARD VI L AI N

Vice-President Human Resources

DAN I E L M O N C I N OVice-President,

Filtration & Performance Additives business group

At December 31, 2015

Gilles MICHEL Chairman & Chief Executive Officer

Amaury DE SEZE Vice-Chairman

Éliane AUGELET-PETIT(1)

Aldo CARDOSO(2)

Paul DESMARAIS IIIIan GALLIENNE

Marion GUILLOU(2)

Colin HALL(3)

Giovanna KAMPOURI MONNAS(2)(3)

Ulysses KYRIACOPOULOS(3)

Fatine LAYT(2)

Xavier Le CLEFArielle 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 functioningThe 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

G O V E R N A N C E & S H A R E H O L D E R S ’ N O T E B O O K

Executive Committee

Board of Directors


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.

* Independent Director.

STRATEGIC COMMITTEE(At December 31, 2015)

Ian GALLIENNE – Chairman

Aldo CARDOSO*

Paul DESMARAIS III

Ulysses KYRIACOPOULOS

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.

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.

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.

APPOINTMENTS AND COMPENSATION COMMITTEE

Amaury DE SEZE – Chairman

Ian GALLIENNE

Marion GUILLOU*

Arielle MALARD DE ROTHSCHILD*

Robert PEUGEOT*

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.

STATUTO RY AU D ITO RS

PRINCIPAL: Ernst & Young et AutresRepresented by Jean-Roch Varon

ALTERNATE: Auditex

PRINCIPAL: Deloitte & AssociésRepresented by Frédéric Gourd

ALTERNATE: BEAS

Specialized Committees

3 6

Imerys at the service of its shareholdersThe 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 informedImerys 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 sharesImerys 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

(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.

Imerys shareThe 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 non-financial 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.

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 communityImerys 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.



L I S T I N G M A R K E T

Euronext Paris,Eligible for SRD (deferred settlement)Eurolist Market Compartment APar value: 2

C O D E S

ISIN FR0000120859Ticker: NKReuters IMTP. PABloomberg NK. FP

I N D E X E S

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.

S R I I N D E X E S

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 2016F R I D AY, A P R I L 2 91st quarter 2016 results

W E D N E S D AY, M AY 4Shareholders’ General Meeting

T H U R S D AY, M AY 1 2 (F RO M)

Release dividend payment

W E D N E S D AY, J U LY 2 71st half 2016 results

F R I D AY, O C T O B E R 2 83rd quarter 2016 results

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

41%

5% 3%

54%

Belgian Securities BV (GBL)

Other shareholders

Blue Crest Holding(Kyriacopoulos Family)

SHARE PRICE TRENDS FROM JAN. 1, 2015 TO MAR. 31, 2016

(source: Euronext)

DISTRIBUTION OF CAPITAL AND VOTING RIGHTS AT MARCH 1, 2016

Total number of theoretical voting tights (%)

27%70%

Imerys volumes SBF 120Imerys price

Trading volumes (thousands of shares)In €Imerys: stable

SBF 120: +3.4%

0

1,500

3,000

4,500

6,000

03/1602/1601/1612/1511/1510/1509/1508/1507/1506/1505/1504/1503/1502/1501/15

40

50

60

70

Data per share 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

Market capitalization at December 31

€4,819M €4,630M €5,126M

(1) Proposed at the Shareholders’ General Meeting of May 4, 2016. If approved, the dividend will be paid as from May 12, 2016.

Dividend (€)Net income from current operations per share (€)

2014 20152013

4.15 4.314.03

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 , G R O U P S H A R E A N D D I V I D E N D

1.65 1.75(1)1.60

3 8

Simplified financial statements

CONSOLIDATED INCOME STATEMENT ( millions)

2012 2013 2014 2015

Revenue 3,884.8 3,697.6 3,688.2 4,086.7

EBITDA(1) 662.5 650.4 673.8 745.4

Current operating income(2) 488.1 477.0 494.6 538.1

Current financial income (69.1) (52.7) (45.1) (55.5)

Current tax (116.6) (118.0) (131.5) (140.5)

Minority interests (1.7) (2.1) (1.7) (0.7)

Net income from current operations, Group share(3) 300.7 304.2 316.3 341.5

Other revenue and expenses net, Group share (9.4) (62.2) (44.7) (273.1)

Net income, Group share 291.3 242.0 271.6 68.4

(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 2013 2014 2015

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

Total 4,821.6 4,872.9 5,422.4 6,168.8

Liabilities and shareholders’ equity

Net worth (including minority interests) 2,261.0 2,271.7 2,470.5 2,671.9

Provisions 579.5 484.7 589.2 646.3

Gross financial debt(5) 1,174.0 1,307.1 1,553.6 1,911.6

Other liabilities 807.1 809.4 809.1 939.0

Total 4,821.6 4,872.9 5,422.4 6,168.8

(4) Of which mining assets(5) i.e. net financial debt of

493.4874.8

428.2885.4

471.6869.8

552.31,480.4



4,087MR E V E N U E

342MN E T I N C O M E

139MD I V I D E N D P A Y O U T P R O P O S E D

W I T H R E S P E C T T O 2 0 1 5

REG ISTR AR S E RVI CEC ACE IS CO RPO R ATE TRUST

14, rue Rouget-de-Lisle92862 Issy-les-Moulineaux Cedex 9, France

Tel.: +33 (0)1 57 78 34 44Fax: +33 (0)1 49 08 05 80

e-mail: [email protected]

S HARE H O LD E R CO NTACTS I M E RYS F I NAN C IAL CO M M U N I C ATI O NS

154, rue de l’Université75007 Paris, France

Tel.: +33 (0)1 49 55 66 55Fax: +33 (0)1 49 55 63 16

e-mail: [email protected]

CASH FLOW STATEMENT AND CHANGE IN NET FINANCIAL DEBT ( millions)

2012 2013 2014 2015

EBITDA 662.5 650.4 673.8 745.4

Notional tax on current operating income and other depreciation

(135.7) (132.7) (144.6) (156.7)

Change in operating WCR(1) 15.3 32.0 (48.9) 21.8

Paid capital expenditure (257.1) (253.1) (241.5) (271.6)

Current free operating cash flow(2) 289.4 306.4 244.1 342.5

Financial income (expense) net of tax (49.9) (24.3) (21.0) (31.8)

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)

Capital transactions (2.4) 30.9 (42.6) 227.0

Foreign exchange / Other movements 7.7 (12.4) (28.6) (40.6)

Decrease (increase) in net financial debt 156.3 (10.6) 15.5 (610.5)

(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.

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I M E R Y S O N T H E W E B

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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 ParisTelephone: +33 (0)1 49 55 63 00Fax: +33 (0)1 49 55 63 01www.imerys.com

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Imerys – French limited liability company (Société Anonyme)Share capital: €159,144,982Trade register: RCS Paris 562 008 151

MINERAL SOLUTIONS FOR A CHANGING WORLD · mineral solutions for a changing world a world leader in...

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Transcript of MINERAL SOLUTIONS FOR A CHANGING WORLD · mineral solutions for a changing world a world leader in...