Professional Documents
Culture Documents
to create
tomorrow’s world
2 016 AN N UAL RE PO RT
02
Interview with
Gilles Michel
Chairman and CEO
05
EXCE L
17
I N N O VAT E
18 - Innovation
22 - Innovation Notebook
24 - Operational Excellence
27
R EN EW
37
C O M MI T
38 - Human Resources
42 - Sustainable Development
44 - Social and Environmental Initiatives
46 - Education & Sponsorship
49
G OV E R N A N C E A N D S H A R E H O L D E R S ’ N OT E B O O K
50 - Governance
52 - Shareholders’ Notebook
54 - Simplified Financial Statements
Mineral solutions
to create
tomorrow’s world
World leader in mineral-based specialties
for industry, Imerys delivers high value-added,
functional solutions to a great number of sectors,
from processing industries to consumer goods and
building products. The Group draws on its
knowledge of applications, scientific expertise and
technological know-how to offer solutions
beneficiating its mineral resources,
produce synthetic minerals and develop
formulations. Imerys thus contributes essential
properties to customers’ products and
performance, such as refractoriness, hardness,
conductivity, opacity, durability, purity, lightness,
filtration, absorption and repellency.
Imerys meets ambitious criteria for responsible
development, regarding social, environmental
or Corporate Governance.
2 I N T E RV I E W
W
hat were the key
issues for Imerys
in 2016?
Gilles Michel —
2016 saw Imerys
improve on
performance and
achieve its target
net income
from current operations, driven by the relative
upturn in some of its markets towards the end
of the year. The Group's results also stem
from the programs set up to enhance
our operational excellence and from
a development strategy that combines internal
growth – steered by innovation – and external
expansion, notably the acquisition of S&B
where the synergies are already in place,
a year ahead of schedule.
“Capitalize on our
critical mass to be
even more efficient,
more agile and
more attractive.”
IMERYS 2016 ANNUAL REPORT
5
EXCEL
To develop and retain our high value-added
positioning, we subscribe to a unique vision
and business model based on our ability to
constantly excel in what we do and how we do it.
Excel in geographical terms through global
expansion, excel in our expertise by meeting
increasingly complex demands on highly
diversified markets, and excel in the relations
we maintain with our customers by ensuring
we remain a privileged partner, able to meet
their needs and expectations.
01
ENERGY
Answering
Solutions for batteries, photovoltaic cells
and panels, oil and gas drilling, etc.
diversified
markets’
needs
IMERYS’ MINERAL SOLUTIONS
PROPERTIES ALLOW FOR
DIVERSIFIED USES AND ANWSER
THE NEEDS OF MANY INDUSTRIES.
03
STEELMAKING
AND METALLURGY
Solutions for steel,
refractory linings for
furnaces, etc.
08
07 PAPER
Solutions for catalogues,
advertising materials,
THERMAL RESISTANCE brochures, magazines,
Ceramic hob specialty papers, etc.
02 AUTOMOTIVE, INDUSTRIAL
EQUIPMENT AND CONSUMER
DURABLES
Solutions for plastics, batteries,
paint, bodywork, tooling, etc.
CONSTRUCTION
Solutions for roof tiles,
window profiles, cement
production, etc.
04 05
DECORATIVE MATERIALS
06
AND FITTINGS
Solutions for sanitaryware, HEALTH, BEAUTY
tableware, flooring, paint, AND PERSONAL CARE
floor tiles, etc. Solutions for deodorants,
skin creams, toothpaste,
personal care products, etc.
11
09 HORTICULTURE AND
AGRICULTURE
Solutions for cultures, UV
AGRI-FOOD protection, repellents, etc.
Solutions for filtration
of drinking water, beer,
wine, fruit juice, etc.
12
ELECTRONICS
Mineral solutions
for processors,
semiconductors, etc.
10
PACKAGING
Solutions for plastic
films, special
packaging, cardboard,
etc.
1 2
O U R ST R E N GT H S
World-class
Mining
Gathering assets mining assets
High-quality mineral
our strengths
reserves: Imerys draws
on a large range
of minerals and assets
for our
that help guarantee
the quality and resources
supply over the long-
customers’
term, and ensure their
renewal.
benefits
BEING THE LEADER IS ABOUT CAPITALIZING ON
MANY ASSETS TO DEVELOP AN INCREASINGLY
INNOVATIVE OFFER OF HIGH ADDED VALUE
+30
FUNCTIONAL SOLUTIONS. THESE ASSETS
ARE THE REASON WHY IMERYS IS THE
PRIVILEGED PARTNER OF ITS CUSTOMERS.
different minerals mined
and transformed
3 4
Optimized
Industrial
assets
industrial assets
+250
Expertise in materials
science and sophisticated
processes combined
with a close proximity
to customers: Imerys
specialties are formulated
industrial sites
to meet the technical
specifications of each
industry.
Sharp knowledge
Customers’
knowledge
of our customers’
needs
Innovation
The solutions formulated
and developed by Imerys bring
essential properties to
the final products and their
CANADA
UNITED STATES
— Energy
Solutions
& Specialties MEXICO
Carbonates
Monolithic Refractories
Graphite & Carbon
Oilfield Solutions
— Filtration
& Performance
Additives BRAZIL
Performance Additives
Filtration
Metallurgy
energie & spé
Carbonates
Réfractaires Monolithiques
— Ceramic CHILE
minéraux
IMERYS 2016 ANNUAL REPORT
Minéraux Réfractaires
Minéraux Fondus
11 E XC E L
FINLAND
SWEDEN
DANEMARK
UNITED KINGDOM
NETHERLANDS
GERMANY
AUSTRIA UKRAINE
HUNGARY
FRANCE SLOVENIA
SWITERLAND
BULGARIA
ITALY GEORGIA
SPAIN
GREECE TURKEY
BAHRAIN
JAPAN
CHINA
INDIA TAIWAN
THAILAND
VIETNAM
MALAYSIA INDONESIA
ZIMBABWE
SOUTH AFRICA
5% NEW-ZEALAND
25%
North America
Japan / Australia
43%
27%
Emerging countries
Western Europe
Words
2016
and figures
Employees
+250
The diverse profiles of Imerys’ teams
and their expertise are a source
of wealth which the Group looks
to constantly foster. Management
industrial sites
models, recruitment, employer
brand, internal mobility, training
and programs for recent
graduates, the Group also develops
a number of initiatives to prepare
and nurture its future managers.
Operational
excellence
Through I-Cube, its program to
continuously improve its industrial
€4,165M revenue
processes, Imerys’ goal is to achieve
the highest level of operational
excellence. Encouraging sharing
and knowledge transfer, developing
programs geared towards a culture
16,000
of safety, strengthening team spirit
and generating healthy competition
between sites: these priorities apply to
the Group teams at every level.
employees
Commitment
Committed to responsible
growth, the Group’s strategy is
also embodied in the initiatives
in place for employees, the
Innovation neighbouring communities of
its industrial and mining sites,
but also for the surrounding
In today’s constantly-evolving and nature and wildlife. All Imerys
competitive market, Imerys maintains employees are involved
an exacting R&D policy linked to in the Group’s Sustainable
the transformation of minerals, Development strategy.
the development of formulations and
the production of synthetic minerals
- three core competencies that make
Imerys a world leader in speciality
minerals for industry.
114
projects were submitted as part
of an internal competition linked
to sustainable development
70%
of sites are certified Acquisitions
ISO 9001 Imerys is continuing with its
targeted acquisition strategy
aimed at widening the scope
of its activities and increasing
its portfolio of minerals, whilst
at the same time conforting
its geographical expansion.
Its global presence and proximity
to its customers is a key factor
in ensuring its profitability.
ST R AT EGY
A robust business
model for lasting
value creation
IMERYS’ STRATEGY AIMS AT ENSURING
THE GROUP’S RESULTS A STEADY GROWTH WHILE
CREATING LONG-TERM VALUE. INNOVATION,
INVESTMENTS AND TARGETED ACQUISITIONS Imerys’ ambition is to steadily improve
its results with lasting value creation by
CONTRIBUTE TO BROADENING THE GROUP’S drawing on a tried and tested business
model combined with an internal and
BUSINESS PORTFOLIO AND GEOGRAPHICAL external growth strategy.
FOOTPRINT WHILST PROVIDING
ACCESS TO NEW MARKETS. A tried and tested
business model
— Imerys’ business model
owes its success to:
- premium mineral resources;
- expertise in materials science to deliver
high value-added functional solutions;
- significant resources allocated to
innovation to widen activities to include
new and growing markets;
- sophisticated processes and
close proximity to customers;
- leadership positions
on numerous markets;
- a global presence with a broad
and diversified sector footprint;
- a responsive and decentralised
organisation.
— Damolin,
specialist
in absorbents
Imerys has acquired Damolin, a Danish
producer of mineral solutions based
on bentonite, moler or diatomaceous
earth, a mineral that can only be found
in Denmark. Since it was founded
in 1942, this highly specialised company
has manufactured and sold absorbents
for oils and chemicals, mineral
solutions for cat litters and products
for numerous applications in the
agricultural, horticultural, metallurgic,
construction, petrochemicals and
environmental protection sectors.
With entities in Denmark, Germany
and France, Damolin generated
€45 million revenue in 2015.
Inauguration of the Imerys Ceramics site
in Ranong, Thailand.
Ambitious internal
developments Investments have also led to
— 2016 saw Imerys continue to the reinforcement of the Group’s
strengthen its presence on several presence in India, where the Ceramics
growth markets including: division has joined the Wankaner
+€500
- consumer goods: new carbonates (Gujarat) platform shared by other
for plastic films for the food industry, divisions, for greater proximity
development of wollastonite with customers from India’s tiles
for polymers; manufacturing hub in Morbi. As well as
million revenue
- automotive: new talc refining from new products a new unit to manufacture filter cartridges
processes for polymers; that ensure clean drinking water at home
- energy: optimised production (following the success of ImerPureTM), the
of carbon black powder and Group has also built a unit that produces
synthetic graphite; Micro Fibrillated Cellulose for paper
- food wrapping paper: Micro Fibrillated applications. Operations have also been
Cellulose developed by FiberLean™ extended in Indonesia where Imerys has
Technologies, a joint venture equally set up a new blending platform to serve
owned by Imerys and Omya. both the tile and sanitaryware markets.
Targeted acquisitions
— The various external growth
— Kerneos, a key
operations carried out in recent step in Imerys’
years mean that Imerys now
ranks as the global leader development strategy
in mineral solutions for industry. On December 11, 2016, Imerys announced
In 2016, the Group completed several the project to acquire Kerneos, the
bolt-on acquisitions which should world leader in calcium aluminate-based
contribute more than €100 million to high-performance binders. The operation
2017 revenue (essentially Alteo, Damolin will strengthen the Group’s specialty
and Spar). It also acquired the specialty offering in high-potential markets.
alumina activities of Alteo group (fused Thanks to its expert command of calcium
and tabular alumina used in refractory, aluminate technology, Kerneos develops
abrasive and ceramic applications) which high-performance binders for the
generated revenue close to €50 million construction, civil engineering and
in 2015. They were integrated into the refractory sectors. Present in Europe,
North America and various emerging
Fused Minerals division in December
countries, Kerneos employs 1,500 people
2016. Imerys’ Monolithic Refractories
and reported consolidated revenue
division extended its geographical
of €415 million (year-on-year on
footprint with the acquisition of US September 30, 2016). The acquisition,
producer, SPAR (petrochemicals, energy, which remains subject to relevant workers’
cement) and Swedish producer, Fagersta council consultation, as well as regulatory
Eldfasta. It also created Calderys USA in authorities’ approval, should be
Roswell (Georgia) where the Group is completed by mid-2017.
already present. The bentonite, moler
and diatomaceous earth mineral-based
solutions producer Damolin in Denmark
joined Imerys’ Metallurgy division. In
December 2016, Imerys reached a new
milestone in its development strategy — Strong growth
with the project to acquire Kerneos, the
world leader in calcium aluminate-based in graphite for the
high-performance binders. mobile energy sector
Today, Imerys is able to draw upon a To support growth in demand for lithium-ion
wider palette of minerals and an batteries, particularly in electric vehicles, in 2016
extended range of technologies and the Group launched a multi-year annual investment
transformation processes. program, focused on R&D, further geographic
expansion, and the ramp-up of its industrial
capabilities and mining resources. This program
notably led to the creation of a joint venture
in Namibia for the production and mining
of natural graphite.
INNOVATE
Essential to our growth strategy, innovation
is more than ever a precious resource.
At Imerys we build it on three cornerstones:
talent, high expectations and inventiveness.
It is based on the continuous search for operational
excellence, an increasing command of materials
science and a constantly-evolving innovative
offer of high value-added functional solutions.
An innovation strategy
for constant and
lasting value creation
— Imerys’ development strategy
is based on innovation and its capacity
to combine minerals and functionalities
to deliver substantial and measurable
improvements for customers: improved
product characteristics, increased
production performance, expanded
energy efficiency, lower reject rates
INNOVATION
and environmental impacts. FUND
This expertise is invaluable in meeting
Imerys’ increasingly ambitious
the major technological challenges
with which today’s industrial operators Innovation Fund
are confronted: lighter structural parts was set up to support
for the automotive sector, greater the most inspired projects
consumer well-being through health presented by the Group’s divisions.
and beauty products, recycling,
increased energy efficiency, clean
energy and power storage, etc. In 2016,
90 new products were launched which
are the results of continuous innovation
to improve existing product ranges,
but also of ground-breaking innovations
based on the development
of entirely new concepts.
Anticipating
client needs
Imerys focuses its research efforts
on sectors with the highest growth
potential.
— Energy
The centre dedicated to graphite
and carbon in Switzerland as well as
the laboratory for graphite applications
for batteries and fuel cells in Japan focus
their research on materials chemistry,
electrochemistry and the physics of
carbon. Their primary target markets
are the storage, conversion and
Graphite & Carbon transmission of energy, mobile energy,
research laboratory. automotive applications, consumer
electronics, household appliances and
electronics. Their main products range
from carbon black conductive additives
+90
for lithium-ion batteries and high voltage
cables to sustainable and eco-friendly
solutions for graphite anodes for
lithium-ion batteries used in electric
vehicles, rechargeable electric vehicles
new products and power storage. A multi-year
launched in 2016 investment program in research
and development and the acquisition
of new deposits will enable the Group
to meet growing technological needs.
— Functional additives
The applications laboratories located
in Imerys’ different R&D centres work
“R&D at Imerys together, sharing their expertise and
technological resources to develop
has the unique capacity tomorrow’s products. Within the Group’s
divisions, including Carbonates,
to generate value-added Performance Additives, Metallurgy,
Kaolin and Filtration, more than one
2 3
— Filtration expert
In April 2016, Imerys joined the Springboard
Initiative developed by PATH, a health sector NGO
supported by the Bill & Melinda Gates Foundation.
With nearly two billion people around the world
deprived of direct access to safe drinking water,
the aim of the Springboard Initiative program
is to improve water filter systems in developing
countries. Through the Springboard Initiative,
PATH has developed a universal, efficient and
affordable household water treatment and storage
system for low-income families. Harnessing its
mineral expertise, Imerys adopted PATH’s
fundamental design principles and completed
an R&D program, to develop a new household water
treatment and storage system that contains a new
high performance filter cartridge called ImerPure™.
Successfully tested in the field it has already
delivered effective results. Production is scheduled
to begin before the end of 2017 at the facility built
by Imerys in Gujarat, India in 2016. The ImerPure™
filters will be distributed through partnerships
with disaster relief organisations, social enterprises,
NGOs and household goods manufacturers.
ImerPure™ offers a viable alternative to consumers
in developing countries where existing filter
technologies are ineffective.
Ramp-up in innovation
— The variety of products launched
in 2016 led to an acceleration in the
Group’s development in many growing
markets. Sol Gel, for instance, offers
abrasives producers a high-tech process for a natural alternative to plastic
for transforming powder into a solid microbeads used in beauty products.
material. ImerCare® P-Scrub offers With ImerCare® P-Scrub Imerys
a 100% natural scrub for the cosmetics received the 2016 IMA-Europe
market. Derived from perlite and “Innovation” award.
developed using patented technology, Other products have also been
the ImerCare® range provides soft successfully launched. They include
exfoliation by combining the natural the High Aspect Ratio talc range sold
hardness of volcanic rock with the gentle under the HAR® reference, the new
abrasive qualities of a mineral scrub product benchmark that allows
bead to meet growing market demand car manufacturers to produce
lighter vehicles needing less fuel.
With regard to energy, C-Therm is
a synthetic graphite range that improves
the thermal conductivity of plastic
sockets for household and industrial
LED lighting appliances.
In filtration, CynerSorb™ is a high-
performance absorbent used to purify
edible oils and biodiesel. It helps
reduce the need for filter aid,
simplify production process, increase
refining capacity and reduce costs.
The Imerys team presented with the 2016
IMA Europe Award for ImerCare ®.
Innovation
notebook
MANY INNOVATIVE SOLUTIONS WERE LAUNCHED IN 2016. ACTILION B is a new
carbon reference with
FOCUS ON SOME EMBLEMATIC EXAMPLES. improved performance at
high rate discharge required
for lithium-ion batteries
used in electric vehicles.
HAR® 3G, a new reference in the talc range developed mainly
for polymer applications, for the automotive sector in particular.
>
>
are increasingly used by the automotive industry, as they enable
car manufacturers to produce lighter vehicles, thus reducing
fuel consumption.
>
Imerys Carbonates has developed
an innovative solution for synthetic
rubber gloves. Adding calcium
carbonate allows glove producers to
offer thinner products with enhanced
feel, better puncture resistance,
at competitive prices.
These synthetic rubber gloves
avoid allergic reactions and have
superseded natural latex in many
sectors (medical and household).
O PE R AT I O N A L E XC E LLE N C E
commitment
ensure that action plans are ambitious
but also realistic. Each site is charged
with implementing a three-year I-Cube
cycle with yearly updates for plans,
improvement
projects with a strong quantitative and
qualitative impact, the program
ensures engagement at every level
of the organisation.
— Millionaires Club
Over the course of 2016, 23 sites were presented with the
Millionaires Safety Award (compared with 18 in 2015) and
became members of the Group’s “Millionaires Club”. The award,
which recognises those sites that abide by the highest safety
standards, is based on four assessment criteria: the completion
of one million working hours with no lost time accident; no
accidental death over the past five years; the completion of all
monthly self-assessments required; no major gap in compliance
with environment, health and safety guidelines. In Canada, the
Graphite & Carbon division won the regional Health and Safety
Leader prize awarded by the Standards Commissions for Equity,
Health and Safety) protocols. In 2016, Health and Safety at Work (CNESST).
emphasis was placed on the highest
risks of serious accidents, with the
addition of new protocols, including
in the laboratories and R&D centres.
The Group’s Audit EHS team carried out
22 compliance audits at the different
sites over the year.
Progress bearing
initiatives
— The I-Cube related initiatives carried
out by the Imerys teams help drive
the Group’s vision and ambitions.
Each year, the seminars organised are an
opportunity to exchange best practices,
with those taking place in 2016 providing
a forum to share ideas and experiences
on the guiding principles that govern already in place in China and Taiwan.
I-Cube, safety and even human In India, over 20 representatives from
resources management, including each divisions met in Pune in February
training for plant managers. 2016 to define the manner in which the
In the Asia Pacific region, where I-Cube I-Cube program was to be rolled out;
was launched in March, Imerys’ sites are the aim being to appoint a local
charged with deploying the program champion for each plant and one or
according to an approach that is more operational excellence officers to
adapted to each region and the diversity track the progress of each action plan.
of languages and cultures. The goal is to The environment and production
build coherent processes and processes are just two of the areas
procedures that are also tailored to the for progress defined for the region.
specific needs of countries that are as The best practice competitions held
different as India or China. I-Cube is every two months have proved to be
RENEW
Finding new uses for existing products, adapting to
new technological challenges and the increasingly
sophisticated needs of our customers is what
motivates Imerys to constantly renew its offering.
Through our processes, proprietary technologies,
and developments which open up infinite scope
for new properties and applications, Imerys’ minerals
are an increasing part of our everyday objects.
B US I N ESS G RO U PS
— Energy
Solutions
& Specialties
THE ENERGY SOLUTIONS & SPECIALTIES BUSINESS
GROUP, WHICH COMPRISES THE CARBONATES,
MONOLITHIC REFRACTORIES, GRAPHITE & CARBON
while the ceramic proppants market
AND OILFIELD SOLUTIONS DIVISIONS, has not yet recovered, the Group
maintained its commercial and
MANUFACTURES AND SELLS MINERAL SOLUTIONS industrial presence. As expected,
TO THE CONSUMER GOODS AND PAPER SECTORS, the division’s negative contribution
to the Group’s current operating
HIGH-TEMPERATURE INDUSTRIES, MOBILE ENERGY, income was lower than the previous
AND THE OIL INDUSTRY. year (€23 million vs. €27 million in 2015).
— 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
Year trend for performance mineral applications
(polymers, rubber, health, beauty
— The Energy Solutions & Specialties and personal care products,
business group’s revenue totaled and construction materials).
€1,250.7 million in 2016. The business
group’s current operating income — Monolithic Refractories
increased + 8.5% to €129.9 million The Monolithic Refractories division
thanks to a positive price/mix and develops and sells monolithic
effective control over fixed and refractories under the Calderys® brand.
overhead costs. Consequently, These specialty materials are used for
the business group’s operating margin building and repairing refractory linings
improved + 0.8 point to 10.4%. and can withstand high temperatures
Investment in capacity expansion and and severe operating conditions.
the extension of its specialty offering
(plastic film, polymer, paint etc.) — Graphite & Carbon
REVENUE
enabled the Carbonates division to The Graphite & Carbon division
€1,251
MILLION
benefit from vibrant North American
and Southeast Asian markets, while
the paper market continued to slump.
In the Monolithic Refractories division,
is the world leader in high performance
solutions based on specialized graphite
and carbons. It produces a large variety
of natural and synthetic graphite
30% of Group total
activity trends remained healthy powders, as well as conductive carbon
in India and Asia, and the slump blacks for mobile energy, automotive,
on the European steel market eased electronics, engineering and refractories
71
off towards the end of the year. in the transport and automotive industry.
The division’s cost adjustments helped
the business group’s profitability. — Oilfield Solutions
The Graphite & Carbon division’s The ceramic proppants and mineral-
industrial sites
in 28 countries sales were driven by rapid growth in based soutions made by the Oilfield
lithium-ion batteries for mobile energy. Solutions division are used by the oil
In the Oilfield Solutions division, and gas industries.
2
1
— 2016
Revenue split
49% 39%
Carbonates Monolithic Refractories
10% 2%
Graphite & Carbon Oilfield Solutions
1 Digital Tablet.
2 Electrical Cables.
3 Oil refinery.
4 Toothpaste.
4
B US I N ESS G RO U PS
— 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.
In addition, the division will enlarge
its specialty offer to the industrial
adsorbents and agriculture sectors
through the acquisition of Damolin,
a Danish mineral-based solutions
producer.
— Performance Additives
The Performance Additives division
offers many functional additives derived
Year trend mostly from mica, talc and wollastonite.
They are necessary to many applications,
— The Filtration & Performance including agriculture, food, and a large
Additives business group’s revenue number of industries such as automotive,
totaled €1,144.5 million in 2016, a 5.8% construction, as well as intermediate
increase over 2015. The business goods (paint, rubber, catalysts, paper,
group’s current operating income pharma, personal care & beauty).
increased + 20.5% to €214.6 million.
As a result, operating margin improved — Filtration
+ 2.3 points to 18.8%. The Filtration division is the world’s
The Performance Additives division’s leading supplier of diatomite and
activity was firm all year long. Trends expanded perlite-based products for
were healthy on all market segments, filtration. Calcium silicate-based and
particularly polymers for the magnesium silicate-based products are
REVENUE automotive sector. Recent innovations also supplied for specialty applications,
helped to boost sales. The Filtration such as technical rubber and pesticides.
€1,145
MILLION
division’s sales were driven by a firm
consumer goods sector (beer, wine,
edible oils, sweeteners, etc.).
The Group also benefited from sales
Vermiculite completes the range and is
sold for construction, insulation and fire
retardant applications.
27% of Group total — Metallurgy
growth in high-purity solutions for
the healthcare sector and its The Metallurgy division offers industrial
developments in new segments. solutions based on bentonite and perlite
83
The performance of the Metallurgy to a global base of customers operating
division, serving the casting and in the steel and foundry sector as well as
steelmaking markets, was satisfactory civil engineering, agriculture and animal
and sustained by synergies from the litter markets. The division also provides
industrial sites
in 25 countries S&B acquisition achieved one year specialised additives for steel casting
ahead of schedule and the bentonite flux formulations and casting flux feeder
activity development in China. services.
— 2016
Revenue split
41% 30%
Performance Additives Filtration
2
1
2
Cat litter.
Car.
29%
3 Fruit juice. Metallurgy
B US I N ESS G RO U PS
— Ceramic
Materials
THE CERAMIC MATERIALS BUSINESS GROUP
COMPRISES THREE DIVISIONS: ROOFING, WHERE
THE GROUP IS THE LEADING FRENCH PRODUCER
OF CLAY ROOF TILES; KAOLIN, WHICH OFFERS
A WIDE RANGE OF APPLICATIONS IN THE PAPER,
PACKAGING AND PLASTICS SECTORS; AND
CERAMICS, WHERE IMERYS IS THE WORLD LEADER
IN CERAMIC PREPARED BODIES
FOR SANITARYWARE OR TABLEWARE.
— 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,
Year trend metallic profiles, gutters and
downspouts for rainwater drainage.
— The Ceramic Materials business These products are mostly intended for
group’s revenue totaled €1,222 million the building and renovation of
in 2016. Current operating income residential housing and small buildings.
grew + 6.3% to €223.4 million and
reflects a firm product price/mix. At — Kaolin
18.3%, the business group’s operating The Kaolin division offers the world’s
margin improved + 0.4 point over 2015. broadest kaolin range, and thanks to the
REVENUE Confronted to a clay roof tile market diversity and quality of its mines, it
decrease, notably due to a sluggish covers a large spectrum of applications:
€1,222
MILLION
renovation trend, the Roofing division
nevertheless showed solid
performances. The Kaolin division,
from the paper industry, to ceramics,
including paints, refractories or
fiberglass.
29% of Group total
which mainly serves the paper market,
continued to gain positive momentum — Ceramics
thanks to the contribution of BASF’s The Ceramics division is a global
hydrous kaolin activities, as well as the supplier of mineral and prepared bodies
76
development of board packaging and for the sanitary, tableware and tile
specialty applications (paint, rubber, making industries. The division also
plastic, ink, etc.). On markets with provides a wide range of solutions for
healthy overall trends (sanitaryware, technical ceramics, the glass industry,
industrial sites
in 20 countries tableware and floor tiles), the Ceramics mainly fiberglass, as well as for
division’s sales were firm in emerging electrometallurgy, energy and some
countries. construction-related applications.
— 2016
Revenue split
44% 31%
Kaolin Ceramics
25% 1
2
3
Roof tiles.
Magazine paper.
Tableware.
Roofing 4 Paint.
B US I N ESS G RO U PS
— 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.
Year trend
— Revenue for the High Resistance
Minerals business group, which mainly
serves high temperature (steel, casting,
glass, aluminum, etc.) and abrasives
industries, totaled €597.8 million in
2016. The business group’s current
operating income totaled €78.0 million;
the operating margin was stable at — Refractory Minerals
REVENUE 13.0%. In a market environment that The Refractory Minerals division is the
remains difficult, Imerys continued to world’s largest supplier to the refractory,
€598
MILLION
restructure its industrial asset base of
the Refractory Minerals division,
particularly in China. In the Fused
precision casting and foundry industries,
providing a comprehensive range
of products used for their mechanical,
14% of Group total
Minerals division, demand was chemical and corrosion resistance,
healthier in the fourth quarter. as well as for their thermal properties.
This notably allowed for accelerated
revenue growth at the fused alumina — Fused Minerals
28
plant in Bahrain. The Group also The Fused Minerals division is the world
recorded its first sales of alumina for leader in specialty applications for the
high performance abrasives. abrasives, refractories and technical
The acquisition of the Alteo group’s ceramics markets, as well as in heating
industrial sites
in 12 countries specialty alumina activities enables elements for the iron & steel,
the Group to broaden its product range automotive, industrial equipment
with tabular alumina. and construction industries.
— 2016
Revenue split
63% 37%
Fused Minerals Refractory Minerals
E X H I B IT I O N S
IN-COSMETICS
— At the international Cosmetics
Exhibition, held in Paris from
April 12 to 14, 2016, the Performance Additives
division presented the last additions to its ImerCare®
range: SheerSilk, Velluto and P-Scrub.
ImerCare® SheerSilk et Velluto are premium talc products
developped solely for cosmetics applications. ImerCare®
SheerSilk improves the optical and sensory properties
— K Show, the world’s of make-up powders whilst ImerCare® Velluto confers
K SHOW
COMMIT
Strongly committed to achieving responsible
growth, Imerys sets high development,
environmental, social and governance standards
through a wide range of initiatives.
H U M A N R ESO U RC ES
Empower
employees
AS REAL PERFORMANCE CAN
ONLY EVER BE ACHIEVED THROUGH
COLLECTIVE INVOLVEMENT, IMERYS
Develop a Group
HAS INTRODUCED AN AMBITIOUS
dynamic
ROADMAP FOR MANAGING TALENT.
— The fundamental role of the Imerys
ITS PRIORITY? TO DEVELOP Human Resources Department is to
create all of the right conditions
THE EMPLOYABILITY OF ITS TEAMS to ensure that the Group has the teams
AND THE CAPACITY OF THE GROUP it needs to grow. It is also to define
the rules and processes that apply
AND ITS PEOPLE TO MOVE FORWARD to everyone and are in keeping with
the management policies in place
TOGETHER IN THE MOST EFFECTIVE WAY.
at Imerys. It has three core priorities:
to provide the Group with fair and
transparent processes so that each
individual can progress to the best
of their ability; to meet employee
expectations, notably in terms of
working conditions, safety, welfare
and professional development;
and to define management principles
that comply with the Group’s ethics,
especially as regards diversity,
social dialogue and respect for others.
— Compliance
and business ethics
Committed to setting the example
for the highest ethics in business
conduct, Imerys Group regularly updates
its internal protocols. The Imerys
Code of Ethics and Business Conduct
summarises the principles of ethical
behaviour that the Group expects
from all of its employees, contractors,
suppliers, and other partners.
The Code is presented at in-house
seminars, including at the Welcome
Sessions held for new hires.
Training sessions focusing on anti-fraud,
anti-corruption and anti-trust policies,
as well as on international trade
restrictions, are regularly organised
throughout the Group by members
of Imerys’ legal team, who in turn are
regularly assisted by outside experts.
70% of senior
38
manager roles filled
internally
10
nationalities
employee behaviour where needed.
In terms of compensation and benefits,
the Group reviewed its Management
in the 2016 Graduates Authority Rules defining the respective
Program roles of operational entities and
the Group, when deciding on the
recruitment and remuneration of senior
managers. Remuneration practices are
in line with best international standards.
The Group also continued to subscribe
to social security and benefit plans
for employees worldwide.
The Group has expanded and diversified
its training offer. The number of
employees trained has also risen.
Over the year, 79% of employees took Optimise talent and
part in at least one training program.
Thanks to the e-learning platform,
career management
IM-Pulse, more than 4,000 Group — In order to accelerate career
employees and managers have access to development, Imerys has been using
Imerys’ entire training offer, including for the past few years shared tools to
the Imerys Learning Centre (ILC) assess individual performances and
programs, focusing in particular on review the Group’s talent and structures.
fundamentals in management, finance, In 2016, reviews were carried out
geology and project management, in certain key functions, such as finance,
training in reporting and consolidation, industry and geology/mines, to identify
industry and safety, and dedicated the measures needed to expand and
courses for certain divisions. Multiple develop Imerys’ talent pool and
training formats are also available, anticipate future needs. An ambitious
with classroom or distance learning, project was also launched to redefine,
or a combination of the two. In 2016, standardise and restructure the career
the Imerys Learning Centre provided management processes within a single
9,800 hours of training through global system. This means that, today,
40 programs, distance learning all of the Group’s Human Resources
programs accounted for 4,436 hours. teams can work using
Imerys Safety University (ISU) the same information base.
programs were adapted to coach site Internal mobility and promotions
managers on how to train and influence are other top priorities for the Group.
supervisors on safety issues and skills. In 2016, new career moves were possible
Over the year, approximately for 55 of the 250 members of its
300 participants took part in 12 special management teams, and nearly
ISU sessions, with 260 managers and 70% of senior manager roles were
supervisors enrolling online for the filled internally across all functions
safety training program on and geographical zones.
1. Discussions during
the Graduates Program.
2. Imerys employees
at the Foulées des Entreprises
race in Toulouse.
— Expatriate
and travel safety
At a time when the boundaries
for safety and security are
constantly shifting, Imerys has
reinforced its security measures
for employees travelling on
business. With the help of experts,
1 the Group has implemented a new
policy aimed at better protecting
travelling employees and
expatriates against certain
risks linked to international
business trips.
Launched in January 2016 and
Employee engagement deployed in all Group businesses
with immediate effect, its
— Charity races are a popular sport guidelines apply to all Imerys
for Imerys employees. In 2016, several employees and service providers
initiatives to encourage sports and carrying out professional
exercise were taken at different assignments abroad. The Group
divisions, including the Carbonates is on-hand to provide all of the
and Graphite & Carbon divisions. information that can be useful
As part of well-being month organised when preparing for business
by the Performance Additives division, travel and to implement
23 office employees in Toulouse ran support measures if necessary.
Security requirements for
the cross companies race, les Foulées
travellers and expatriates are
des Entreprises, and raised €6,000
based on a classification of
to support cancer research.
potential threat levels by country
which is provided and frequently
updated by an international
insurance organisation.
S USTA I N A B LE D E V E LO PM E NT
Responsible
together
IMERYS’ CORPORATE SOCIAL RESPONSIBILITY
STRATEGY IS ENSHRINED IN THE SUSTAINABLE
DEVELOPMENT CHARTER APPLIED
BY ALL EMPLOYEES.
1. Purification of water,
Kaolins de Bretagne,
France.
2. Hydroponic farming
in Doseropolis, Brazil.
— Environmental
issues
The Group’s social responsibility
policy is rewarded by its rating
in the world’s top indices such as
the 120 Euronext, Vigeo Europe
and the FTSE4 Good Index Series.
Health and safety are basic values for all the management of basic utilities such
Imerys operations worldwide. Respect as energy and water, the restriction and
for health and safety standards is a treatment of gas and liquid pollutants,
condition of employment at Imerys. the reduction of greenhouse gases,
and the preservation of biodiversity.
The Group Health and Safety Charter On this last issue, in its efforts to
engages its management, employees, preserve the biodiversity and
contractors, visitors and neighbouring ecosystems surrounding its operations
communities alike. throughout the life of its mines, Imerys
supports numerous projects to revitalise
Strict requirements and natural habitats and protect endangered
species. At the end of 2016, 31 of its
the highest standards 140 mining operations were located
on or adjacent to areas of high
— The Group implements compliance
biodiversity value, and the Group’s
and monitoring programs linked to
objective of establishing site-specific
employment law and individual rights
biodiversity management plans at all
issues. Aware of the importance of
operations in areas of high biodiversity
applying high environmental, social and
value had been achieved.
governance standards to all of its
operations, the Group expects the same
of its business partners and suppliers.
In 2016, Imerys launched its supplier-
specific environmental, social and
governance standards, requesting
adhesion from its suppliers representing
more than €2 million in spending.
Down the line, the Group intends to
apply these standards to its entire
procurement chain.
C S R I N IT IAT IV ES
Committed together
IMERYS ACTIVELY SUPPORTS
Microcredit: feeding
THE ECONOMIC AND SOCIAL DEVELOPMENT
Brazil’s economy
OF ITS NEIGHBOURING COMMUNITIES.
— Crescer (“grow” in Portuguese) is
an Imerys Capim microcredit program
that supports the development of
micro-enterprise in the Amazon region,
as well as sustainable growth for small
businesses, revenue for communities
surrounding the Imerys site, and the
socio-economic transformation of
the city of Barcarena. This project is
In 2016, 83% of the Group’s sites had the result of a partnership between
specific community relations plans (73% Imerys, Amazon Bank and the NGO
in 2015) and 18 (including 6 mining AmazonCred, based on an agreement
operations) underwent critical review. prepared by the legal team at Imerys
The Group also successfully launched Capim. A coordinator was also
its first community relations seminar appointed to oversee relations between
in Belém, Brazil. The event provided the three partners at the request of
the opportunity to lay the groundwork Imerys. Loans are granted based on
for a new network for sharing best social specific criteria and applicant interviews
responsibility practices. 2016 was a conducted by analysts from the partner
particularly active year for promoting bank. To date, 84 entrepreneurs have
best practices worldwide at Imerys. been registered, interviewed and
— India’s award-winning
CSR program
Imerys India received a special SD Challenge award
for its significant contribution to the Group’s
Sustainable Development Plan. After identifying
assessed, and 24 have been granted several themes for engaging with communities
micro loans of up to €4,000. The Amazon and creating a positive social impact, 32 projects
Bank has enlisted two analysts to hold covering education (for both communities and
interviews and review the employees), hygiene, health, sanitation, clean
creditworthiness of applicants. drinking water and diversity were implemented by
The offices of Casa Imerys, a structure the Group’s divisions. The team from the Monolithics
dedicated to social initiatives led by Refractories division in Nagpur supports struggling
Imerys, are used for the registration farmers in this region which suffers from a scarce
process and for training, and an external water supply. The objective of this outstanding
mentor is on-hand to teach and advise project is to help them implement two water
collection projects (by reinforcing river banks
entrepreneurs throughout the process
and monitoring dams around two villages)
until their micro loan is repaid.
to replenish the water tables. The project is being led
jointly with village and local government authorities
SD Challenge, all and with the support of a charity organisation.
At its Kadthal and Kothakota sites in the
about the community Mahabubnagar district, the team from Imerys
— Every year, Imerys organises an Ceramics India provides free anti-snake venom at its
internal sustainable development plants and makes these medicines available to nearby
competition called SD Challenge that villages and hospitals. Twenty serious snake bites
have already been treated successfully.
aims to motivate employees, promote
participation in social action and
strengthen ties with the community.
In 2016, 114 Sustainable Development
Charter compliant projects were
implemented by Imerys sites (98 in 2015).
A total of 745 projects have participated
in the program over the last 12 years.
The number of quality projects
submitted increases every year, as does
the number of employees involved.
In 2016, around one-third of projects
were devoted to developing
community relations.
52
7,000 tourists each year, the site works rehabilitated its quarries to produce
in partnership with local organisations. wind and solar energy. Two solar farms
Imerys’ Ceramics division launched and one wind farm produce green
a program called CeraBees to energy to power Imerys’ private network
projects linked to
counter the disappearance of the bee relations with
directly at stable prices while reducing
population. More than 50 beehives neighbouring communities its carbon emissions. The Roofing
have been introduced at its sites were submitted for division has also installed solar panels
across the world. the 2016 SD Challenge. at some of its old quarries.
E D U C AT I O N & CO RPO R AT E S PO N SO R S H I P
Sharing culture
and knowledge
IMERYS’ CORPORATE SPONSORSHIP
STRATEGY FOCUSES ON EDUCATION
AND PHOTOGRAPHY. THE GROUP
ALSO SUPPORTS TECHNOLOGICAL
PARTNERSHIPS.
Education as a means
to greater independence
— Education is a key focus for Imerys.
In 2015, the Group set up a training
program to teach basic skills that
are essential for its workforce and the
communities surrounding its plants.
Achievement objectives were integrated
into the 2015-2017 Sustainable
Development Plan and include the
requirement for sites to run at least two
training programs for the least skilled
in their workforce, predominantly
covering basic literacy and numeracy.
“The Energy
Challenge project
perfectly embodies
our responsible
commitments
to promote
the environment
and education.”
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.
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.
of its shareholders
The website gives access to information
about shares, share prices, latest
movements, availability of the shares
and attached voting rights (each share
IN 2016, THE TOTAL PERFORMANCE OF IMERYS SHARES held for more than two years benefits
from double voting rights).
(TOTAL SHAREHOLDER RETURN) RAISED TO +14.6%. All documentation concerning
the Company’s Annual General Meeting
THIS INCLUDED AN EXCHANGE RATE INCREASE is available on the website and
OF +11.9%, WHICH EXCEEDED THE SBF 120 (+4.7%) shareholders can also use it to vote
online. Registered shareholders also
AND DJ STOXX 600 (-1.2%), AND RESULTED IN THE receive notice of General Meetings
DISTRIBUTION OF A DIVIDEND OF €1.87 PER SHARE and information about the Group.
Shareholders wishing to register their
(CORRESPONDING TO A PERFORMANCE RATE OF 2.7%). shares on the Company’s register should
apply to their financial intermediary
THE IMERYS GROUP SEEKS TO MAINTAIN A QUALITY who will contact CACEIS Corporate
RELATIONSHIP WITH THE FINANCIAL COMMUNITY Trust. CACEIS Corporate Trust will
then send you any documents needed
AS A WHOLE, INCLUDING SHAREHOLDERS, INDIVIDUAL for registration.
AND INSTITUTIONAL INVESTORS.
A trusting relationship
with the financial
community
— Imerys maintains ongoing, open
Keeping you informed and transparent relations with the entire
financial, institutional and socially
— Imerys pays special attention to its responsible community through
shareholders by keeping them updated individual meetings, sector conferences
on its activities, strategy, capital and conference calls. More than
expenditure, results and outlook. 450 meetings organized throughout
This goal is reflected in the various 2016 enabled the Executive
communication tools that involve Management and the Investor Relations
shareholders in the Group’s life: team to dialog with financial analysts,
- the website www.imerys.com provides institutional investors and international
news about the Group’s developments, fund managers.
share price, etc. A specific section for
individual shareholders gives direct
access to the “Individual Shareholder’s Imerys share
Guide”; — The Imerys share is included in more
- the Letter to Shareholders is published than 60 international indexes, including
several times a year, presenting the SBF 120 and DJ Eurostoxx 600. The
the Group’s news, results and outlook; Group remains attentive to the ratings of
- Annual business report; nonfinancial rating agencies, particularly
- Registration Document – Annual FTSE, Vigeo-EIRIS, EthiFinance, Oekom,
Financial Report, and half-year financial Trucost and Sustainanalytics. Since
report; September 2006, Imerys has been part
- a dedicated phone line and email of the FTSE4Good responsible investing
address. index as well as the MSCI Global
Sustainability Index Series and STOXX®
Helping you to manage Global ESG Leaders. It is also included
your shares in NYSE Euronext Vigeo Europe 120 and
Eurozone 120, and Ethibel’s “Excellence
— Imerys offers a special service for Europe” index, which comprises 200
its shareholders who opt to register companies rated on a best-in-class basis
their shares directly on the Company’s and on ethical exclusion criteria. Imerys
(1) Shares registered in the holder’s
register (1). In addition to exemption is also part of EthiFinance’s Gaia index,
name are kept on Imerys’ share from all custody fees and some which comprises the 70 best small and
register and administrated by CACEIS.
This identification makes direct,
management fees, the Group also mid cap stocks based on socially
personalized contact possible. provides a secure online service where responsible criteria.
DATA PER SHARE: NET INCOME FROM CURRENT OPERATIONS, GROUP SHARE AND DIVIDEND
LISTING MARKET
Euronext Paris,
Eligible for SRD (deferred settlement)
SHARE PRICE TRENDS Eurolist Market Compartment A
FROM JAN. 1, 2016 TO MAR. 24, 2017 Par value: €2
(source: Euronext)
CODES
ISIN FR0000120859
in € Trading volumes (thousands of shares)
Mnemo NK
Imerys: stable
SBF 120: +3,4% Reuters IMTP. PA
Bloomberg NK. FP
6,000
5,000 INDEXES
Imerys is a member of more than 60
4,000
international indexes, including SBF
3,000 120, CAC All tradable index, CAC Mid
& Small, DJ Eurostoxx 600, STOXX
2,000
Europe 600 Basic Resources, Euro
1,000 STOXX Basic Resources, MSCI
0
Standard Developed, and MSCI
01/16 02/16 03/16 04/16 05/16 06/16 07/16 08/16 09/16 10/16 11/16 12/16 01/17 02/17 Europe.
Imerys price SBF 120 Imerys volumes
SRI INDEXES
Although the Imerys share price was impacted by a difficult FTSE4Good, Euronext Vigeo Europe
environment that weighed on all stock markets during the first nine 120 and Eurozone 120, Ethibel
months of 2016, it benefited from a relative improvement in steel Sustainability
production and markets Industrial companies in Europe at the end Index Excellence Europe, Gaïa Index,
of the year, but also from the publication of strong annual results. In MSCI Global Sustainability Index
this context, the Imerys share rose by 18.7%, while its benchmark, Series, and STOXX Global ESG
SBF 120, rose by 8.6% over the period. Leaders Index.
Simplified financial
statements
Consolidated income statement (€ millions)
2016 2015 2014 2013
(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.
Assets
Net non-current assets(4) 4,028.2 3,878.3 3,148.0 2,966.1
Current assets 1,595.6 1,573.5 1,426.8 1,282.6
Other assets 289.4 285.8 163.8 202.5
Cash(5) 819.2 431.2 683.8 421.7
Total 6,732.4 6,168.8 5,422.4 4,872.9
Liabilities and shareholders’ equity
Net worth (including minority interests) 2,914.2 2,671.9 2,470.5 2,271.7
Provisions 661.8 646.3 589.2 484.7
Gross financial debt (5)
2,185.7 1,911.6 1,553.6 1,307.1
Other liabilities 970.7 939.0 809.1 809.4
Total 6,732.4 6,168.8 5,422.4 4,872.9
(4) Of which mining assets 585.4 552.3 471.6 428.2
(5) i.e. net financial debt of 1,366.5 1,480.4 869.8 885.4
REGISTRAR SERVICE
CACEIS CORPORATE TRUST SHAREHOLDER CONTACTS
IMERYS FINANCIAL COMMUNICATIONS
14, rue Rouget-de-Lisle
154, rue de l’Université
F-92862 Issy-les-Moulineaux
F-75007 Paris, France
Cedex 9, France
Tel.: +33 (0)1 49 55 66 55
Tel.: +33 (0)1 57 78 34 44
Fax: +33 (0)1 49 55 63 16
Fax: +33 (0)1 49 08 05 80
e-mail: shareholders@imerys.com
e-mail: ct-contact@caceis.com
WWW.IMERYS.COM
FACEBOOK
TWITTER
@Imerys
YOUTUBE
ImerysReplay
Photo credits —
Xavier Bourgeois, J.-C. Chapelain, Seydou Keïta,
Untitled, silver gelatin print, Suisse, Genève,
Contemporary African Art Collection © Seydou Keïta /
SKPEAC / photo courtesy CAAC – The Pigozzi Collection,
Genève / Design graphique: Alain Bourdon
© Affiche Rmn-Grand Palais, Paris 2016, Fotolia, Imerys,
i Stock, Nathalie de La Falaise, Julie-e Lefebvre,
Aaron McConomy/Colagene, Richard N’Go/L’un&L’autre.
Print —
This document is printed in France on PEFC certified
paper and contains Imerys pigments.
154, rue de l’Université – F-75007 Paris – France
Telephone: +33 (0)1 49 55 63 00
Fax: +33 (0)1 49 55 63 01
www.imerys.com
TRANSFORM TO PERFORM