i Merys Group Pres February 2013

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IMERYS

Group presentation

2Group presentation I February 2013

Table of contentsGroup presentation

Imerys: the world leader of mineral-based specialty products

A profitable and solid business model

Development strategy: accelerating growth by enlargingour business footprint


Disclaimer

More comprehensive information about Imerys is available on the Company’s website(www.imerys.com), under Regulated Information, including its Registration Document filedunder No. D.12-0193 on March 22, 2012 with Autorité des marchés financiers. Imerys drawsthe attention of investors to the “Risk factors” set forth in section 4 of the RegistrationDocument.This document contains projections and other forward-looking statements. Investors arecautioned that such projections and forward-looking statements are subject to various risksand uncertainties (many of which are difficult to predict and generally beyond the control ofImerys) that could cause actual results and developments to differ materially from thoseexpressed or implied.

Photo credits: Imerys photo library, RR, X.


IMERYS

2012 Key figures

Listed on NYSE Euronext ParisMarket capitalization: 3.7Bn€ (February 2013)57% of capital held by GBLIndexes: SBF 120, DJ Eurostoxx, FTSE4Good

Revenue 3,885 M€

Operating margin12.6%

ROCE13.1%

16,026 employeesin 48 countries

More than 250industrial sites

8 R&D centers and 20 regional laboratories


Imerys is the world leader of mineral-based specialty products

… IN THOUSANDS OF APPLICATIONS…

A WIDE RANGE OF HIGH-PERFORMANCE SPECIALITY PRODUCTS…

Finished product

Process enabler

Mineral component

Functional additive

… ALL OVER THE GLOBE.

… FOR DIVERSIFIED END-MARKETS…

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From functional properties to mineral-based specialty products

Many well known products exist as a result of properties brought by Imerys specialties

MineralsProcess:Beneficiate & Transform


FUNCTIONAL ADDITIVES – 45%Ingredient added to our customers’

product composition so as to enhance its properties, e.g.:

PROCESS ENABLERS – 20%Product used in the processes of our

customers but not present in the finished product, e.g.:

Monolithic refractoriesfor

industrial equipments

HIGH-TEMPERATURE, HIGH WEAR RESISTANCE

Our products provide high-performance and key functionalities

MINERAL COMPONENTS – 25%Important constituent of a mineral

formula of our customers’ products, e.g.:

Clay, kaolin, feldsparfor

sanitaryware & tableware

WHITENESS, STRENGTH

Kaolin, mica, talc, feldspar for paints

OPACITY, MATTING EFFECT

Paper RefractoryTiles Paints & coatingIron & Steel AbrasivesFiltration ThermalPlastics and polymers Floor and wall tilesSanitaryware BricksPerformance minerals specialties Board and PackagingCement Films & PackagingTableware FoundryOther RubberMobile Energy Adhesives & Caulks & SealantsAutomotive Electrical / electronicsPharma, health & beauty Technical ceramicsKiln Furniture Glass / fiber glassCarbon additives Chemical / petrochemicalsAggregates PhotovoltaicOther fine ceramics Agriculture / horticultureSlates Building & constructionHot metal forming Metal alloysInsulation Silanes & SiliconesEnergy Oilfield

FINISHED PRODUCTS – 10%Use as such and not further

transformed by our customers, e.g.:

Clay bricks and tilesfor housing

ENERGY EFFICIENCY,DURABILITY

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Wide range of applications

<2% each

3-5% each

20%

5-10% each


Diversity of applications

* Imerys estimates: 2010 sales proforma for Talc acquisition

Consumption40%

Durable goods 38%

Investment 22%

More cyclical

Less cyclical

12-15% of sales each

<2% of sales each

2-5% of sales each

5-8% of sales each

Good balance between different economic cyclesNo end-market > 15% of sales*


Presence in 48 countries with more than 250 industrial facilities

4 Business groups close to their markets

Minerals for CeramicsMinerals for Refractories and OilfiedsFused MineralsGraphite & Carbon

Minerals for Ceramics, Refractories, Abrasives & Foundry

Performance MineralsMinerals for Filtration

Performance Minerals & Filtration

Pigments for Paper & PackagingPigments for Paper & Packaging

Building MaterialsRefractory Solutions

Materials & Monolithics


2012 revenues3,885 M€

1 %

42 %

17 %

40 % 16,026 employeesas of December 31, 2012

Global presence

* 2012 Revenue by destination

Number of employees by geographic areaConsolidated revenue* by geographic area

Japan / Australia5%

Western Europe 46%

North America22%

Emerging countries

27%





Development strategy: accelerating growth by enlargingour business footprint


Imerys positioned for high value

Specialty products and services Products specified and engineered for value (not commodities)Important service dimension ( logistics and supply chain, integration into customer manufacturing process, reclaim of used products, etc.)Prices not subject to external markets evolutions, but negotiated bilaterally

Sustained usePerformance, functionalities essential to customer applicationsCost to switch typically significant (qualification, process adjustments, etc.)Share of total customer cost typically low (< 4% in paper, < 1% in beer, < 2% in alkaline batteries)

Strong commercial positions#1 or #2 on most markets Very diverse competitive environment across businesses without any dominant competitor


Leadership positions in all business groups

* 2012 consolidated sales

Market Positions Main Competitors

Minerals for Ceramics, Refractories, Abrasives & Foundry(30% of sales*)

• World #1 in raw materials and ceramic solutions for sanitaryware• World #1 in kaolin for glazes • World #1 in minerals with high alumino-silicate content• World #1 in fused silica• World #1 in fused minerals for abrasives and in fused zirconia • World #1 in graphite for alkaline batteries and conductive additives for Li-ion

batteries

AKW, Sibelco, Rio Tinto, Almatis, Saint-Gobain, Washington Mills, Nacional de Grafite

Performance & Filtration Minerals(23% of sales*)

• World #1 in diatomite and perlite for filtration• World #1 in talc for plastics, paints, paper, ceramics, health, etc. • World #1 in minerals for breathable polymer films• World #1 in mica for engineered plastics and high performance coatings

BASF, Huber, Sibelco, Omya, Eagle Picher, CECA, S&B, Grefco, Mondo

Pigments for Paper & Packaging(22% of sales*)

• World #1 in kaolin for paper• World #2 in ground calcium carbonate (GCC) for paper

BASF, KaMin, AKW, Thiele, Omya, SMI

Materials& Monolithics(25% of sales*)

• French #1 in clay roof tiles• World #1 in alumino-silicate monolithic refractories• World #1 in kiln furniture for roof tiles

Terreal, Monnier, Wienerberger, Vesuvius, RHI


Our unique range of mineral assets is leveragedas a source of competitive advantage

Over 20 years of high-quality mineral reservesAbout 30 minerals totaling 600 Mt of reserves121 mining sites

Strong in-house geological and mining expertise140 geologists

Upward integration to the mine whenever necessary to sustain cost / quality / availability

2/3 of Imerys sales generated “from mine to market”


Our core competitive advantages include know-how, technology, industrial efficiency

Unique process know-howMechanical treatment (sorting, shaping, sieving, cycloning, elutriation, etc.)Thermal treatment (fusion, calcination, sintering, etc.)Formulation of proprietary recipesHigh-volume production (tiles)

Operational excellenceGroup-wide Key Performance IndicatorsThree-year Sustainable Development Plan to make further progressacross the Group (governance, human rights, environment, safety, communities, innovation, purchasing, human resources)


Sustainable development: implementation of triennal 2012-2014 plan

Further improvement in safety performanceWorkplace accident frequency rate divided by 2 in 4 years (employees and subcontractors)Deployment of Imerys Safety System

Environment90% of group facilities equipped with environmental management systemsEnergy efficiency and carbon emissionsImproved performance in 2012, despite lower volumesBiodiversity: ongoing deployment of processes

Human resourcesGroup-wide diversity charter with initiatives across business groups

Ethics and GovernanceAnti-fraud and corruption programsAnti-child labor programs

* Net of electricity sold** Production sites only

* Number of lost time accidents x 1,000 ,000 / number of work hours

Energyproductivity**(base 100in 2009)

Combined accident frequency rate* (employees/subcontractors)

Total energy consumption* (in thousand of Gigajoules)

28,322

35,180 35,654 35,202 100

97.7 96.9 96.5

2009 2010 2011 2012

3.092.46

1.74 1.51

2009 2010 2011 2012

- 13 %


Sustainable development: implementation of triennal 2012-2014 plan

Further improvement in safety performanceWorkplace accident frequency rate divided by 2 in 4 years (employees and subcontractors)Deployment of Imerys Safety System

Environment90% of group facilities equipped with environmental management systemsEnergy efficiency and carbon emissionsImproved performance in 2012, despite lower volumesBiodiversity: ongoing deployment of processes

Human resourcesGroup-wide diversity charter with initiatives across business groups

Ethics and GovernanceAnti-fraud and corruption programsAnti-child labor programs

* Net of electricity sold** Production sites only

* Number of lost time accidents x 1,000 ,000 / number of work hours

Energyproductivity**(base 100in 2009)

Combined accident frequency rate* (employees/subcontractors)

Total energy consumption* (in thousand of Gigajoules)

3.092.46

1.74 1.51

2009 2010 2011 2012

- 13 %


The organization is reactive and results-driven

Decentralized organisation & empowered managementShort command chainBusiness unit managers fully responsible for their P&L

Lean structureSG&A: 12% of salesLimited, focused corporate functions: 130 FTE

Management incentives driven by profitability at all levels70% of bonuses related to economic targets (operating income, free cash flow, ROCE)


Expansion supported by active external growth strategy

Note: Exchange rates as at date of transaction. Acquisitions made in several steps assumed to have taken place in full when we acquired control.

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World Minerals: diversification into filtration market

ACE: investment into monolithic refractories in India Astron China:

diversification into fused zirconia business

Talc: major complement to white pigment portfolio

Treibacher Schleifmittel: diversification into abrasives market

Lafarge Refractories: diversification into monolithic refractories business

More than 1.8 Bn € of investments and 73 acquisitions over 12 yearsAsset disposals: ca. 0,4 bn €

€396m

€94m€44m €49m €47m

€463m

€35m

€230m

€138m

€8m€59m

€232m

€49m

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Itatex : expansion of product offering for polymers, paints and rubber markets Goonvean : high purity kaolin for ceramics and performance products


Group strengths

Operating margin at 12.6% despite adverse change in activity mix in 20122011 COI margin back to pre-crisis level with lower volumes than 2008

Stronger balance sheet as of Dec 31, 2012, historically low debt rationsNet debt to EBITDA ratio at 1.3x vs. 2.7x in 2008Gearing down to 47% from 101% in 2008Financial flexibility to implement the development plan

Higher exposure to emerging regions and to growth markets

Business portfolio expanded with innovative products less than 5 years old

Imerys is well positioned to grow further





Development strategy: accelerating growth by enlarging our business footprint


Three directions to enhance our potentialfor more profitable growth

Sources: Various economic databases and market studies – Brokers reports 2010 / 2011

< Worldwide GDP ≥ Worldwide GDP

Mature end-markets

55%

Emerging countries

27%

Growth end-markets

25%

Innovateand

manage for cash

Enlarge businessportfolio:

innovate and invest

Grow presence

Imerys sales

2

1

3


Sales in emerging markets

Expanding our presence in emerging markets

Group sales by geography

174 M€

675 M€

1,034 M€

6%

20%

27%

0

5

10

15

20

25

30

35

40

45

50

2001 2007 2012

Share of emerging markets in Group sales

Group development programs to grow in India, China and Brazil

Focus resources on building a critical size in 6-7 countries, then launch Group-wide initiatives

Accelerate regional development in each business group


Main markets with growth potential above world GDP for Imerys applications *

AutomotivePackaging EnergyElectronics / semi-conductorsEnvironmentCosmetics and healthcareAgricultureAerospace

Capex and acquisitions to increase Group revenues in growth markets

Revenues in growth markets

* Sources : Various data bases, market studies and sell-side research 2010/2011

400 M€

900 M€14 %

25 %

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

0

100

200

300

400

500

600

700

800

900

1000

2005 2010PF

% of group revenues


2003 2004

Antiblocks

Carbonfor Li-Ion

Graphitefor FuelCells

Siliconerubberfillers

2005 2006

Latexglovescarbonatefillers

Carbonatefor Woodfiberscomposite

New aluminaabrasive:Alodur Rod

2007

Astrafil K,new fillerfor fiberreplacement(Canada)

Carbonatefor nonwoven

2008

Natural DEfor Laminate

Cristal silicacontrolledDiatomite

Barrisurf

2009 2010

Carbon forconductiveplastics

Nanodimensionmineralsfor UVcoating

Cynergy, a chilledproof filteraid

Boosting innovation to play a major role in expansion plan

In 2012, approx. 250 M€ of sales generated from products not in our portfolio 5 years ago (+ 25% vs. 2011)

2011 2012

Honey combstructure for solarreceiver

New spray castable, quick dry , monolithicrefractory

Second Generationagglomeratedabrasives

Argical pro A cropprotection naturalproduct

Lowtemperatureporcelaine body


2012 R&D budget increased to 56 M€2012 R&D budget increased to 56 M€

Project pipeline monitored on a quarterly basisIncrease in number of projects effectively monitoredMore than 200 innovation projectsAcross all business groupsGrowth investments prioritized with IRR target > 15 %

Several major initiatives to tap growth markets

Example: new proppant facility in Georgia (USA) on stream since end 2012

Confirmation of growth potential: up 700 M€ of additional revenues to be generated by 2016, based on project portfolio and market outlook

HydraulicFracturing

Shale

Shale

Proppantskeeps fractures

open

Fractures

FractureWell

Natural gasflows from

fractures intowell


Acquisitions have been the main driver behind the expansion of the Group’s business portfolio

Successful track-recordTreibacher: entry into Abrasives applications, new competence in fusionWorld Minerals: entry into non-cyclical filtration business, new application competencies Lafarge Refractories: build-up from existing monolithic refractories business PlibricoGroupe Luzenac: a new mineral to strengthen current applications and increase penetration of polymers applications used in automotive industry

Business portfolio expansion will continue mainly through acquisitionsWith stringent return criteria: target ROCE of 15%

Growth potential of target a key decision factor

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Imerys 154 rue de l’UniversitéF-75007 Paris + 33 (0) 1 49 55 60 01 www.imerys.com

i Merys Group Pres February 2013

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