14th World Conference on Investment Casting

Thierry Salmona
April 18, 2016
Imerys, mineral-based specialty solutions for industry
Imerys transforms and processes minerals,
develops services…
From a wide range of minerals: calcium carbonates,
kaolin, graphite, mica, talc, feldspar, bentonite, etc.
To provide specialty solutions for the industry:
Functional additives (making polymers more
resistant, plastic films breathable, being corrosion-
resistant, etc.)
Mineral components (producing abrasives,
electrodes of Li-ion batteries, oxygen sensors, etc.)
Agent for process enablers (filtering edible oils,
protecting industrial furnace, producing casting mold,
etc.)
Finished products (roofing sealing, placing
elements in a ceramic furnace, etc.)
April 2016 World Investment casting conference
2015 Key figures

2015 Revenue breakdown by region

Revenue Current operating income
4.1 Bn€ 538 M€
Japan/
Australia
5%

Net income from current

Operating margin operations
13.2 % 342 M€ Western
Emerging Europe
markets 44%
27%

Workforce N°1 or 2
16,130 on most of our markets

North America
Global presence Sales offices 24%

250 industrial sites 50 countries

April 2016 World Investment casting conference

Imerys offers a comprehensive set of diversified businesses

Carbonates
Energy Solutions Monolithic Refractories Sales Operating margin
& Specialties Graphite & Carbon 1,253 M€ 9.6 %
Oilfied Solutions

Filtration Performance Minerals Sales Operating margin

& Performance Minerals for Filtration
Additives Additives for Metallurgy 1,081 M€ 16.5 %

Kaolin Sales Operating margin

Ceramic Materials Ceramics
Roofing 1,172 M€ 17.9 %

High Resistance Fused Minerals Sales Operating margin

Minerals Refractory Minerals 629 M€ 13.0 %

2015 data

April 2016 World Investment casting conference

Sustainability: a great focus for Imerys
The Group has made commitments in three key areas: social, environment and governance. Beyond its regulatory
obligations, Imerys aims for an exemplary attitude in partnership with the local players. The main actions deal with:
local communities development
on-going quarries rehabilitation
protection of endangered species

Spreading safety awareness among its employees and reducing its operations impact on the environment is a primary
concern for Imerys.
Safety: accident frequency rate Carbon efficiency
(Number of lost-time accidents / million hours worked) (base 100 in 2009)
2.46
- 61 %
2.46 97.5
97.5 96.5 95.5
1.70
1.7 1.51 1.31 94.3
1.51 1.31 92.1
0.95 2015
1.31 91
0.95 89.6
1.31
1.51 1.31 0.95 1.31
2010 2011 2012 2013 2014 2011
2010 2011
2010 2011 2012
20122013
20132014
2014 2015 2010 2011 2012 2013 2014 2015
April 2016 World Investment casting conference
 Results of our innovation efforts are strong

(M€) Revenue from new products

2012 2013 2014 2015

490 Patents filed 37 30 54 63

449
470
333 + 29% Patents granted 22 18 13 19
361
250 295
200
As a% of
5% 6% 9% 12% 12%
revenue

2011 2012 2013 2014 2015

New products (incl. ceramic proppants)
Excl. Ceramic proppants
New patent filing
Annual R&D spend(1)
70
60
63 65
55 56 50
40
32 1.7% 30 63
1.4% 1.5% 1.6% 54
0.9% 20 37
30
10 17
0
2011 2012 2013 2014 2015 2011 2012 2013 2014 2015

R&D spend as a% of revenue

(1) Personnel costs, research, process, industrial trials

April 2016 World Investment casting conference

Collaborative Innovation We already have good structure in place, and
want to accelerate transformation

Stage Gate process

Knowledge / Skill database
Additional
Yearly innovation seminar recommendations
Group of Community
CEO review scientists
gathered Resources
Tech days at the end
of 2014 Programs
700M€ reporting
Technology platforms
Innovation fund
Internal social network

April 2016 World Investment casting conference

Imerys organize their innovation efforts to take advantage of
megatrends

Megatrend Consequence Imerys products Case study

innovation
Lightweight Plastics replacing Products for Plastics HAR Talc, Polaris Genesis
steel in automotives processes
Industrial Better abrasives Sol Gel Abrasive Innovation in Sol Gel
Efficiency Grains
Recycling Barriers to recycling Recycling enablers Imerplast
are fought
Well being Food / Pharma / Range of food and Imerys range of products
Cosmetics pharma additives for cosmetics
Demography Need for sound Range of Imerys range for
agricultural products environmentally agriculture
friendly products for
agriculture

April 2016 World Investment casting conference

 High Tech Minerals ? Talc sales in polypropylene for cars benefitting
from light-weighting trend in automotive
Plastic Composition in a Typical Passenger Car

Average talc usage(1):

13 kg in 2015 from
4.9 kg in 2006

Further growth
expected

(1) in a Medium European Vehicle

Talc improves stiffness, impact resistance and dimensional stability of thermoplastic automotive parts
Diatomite, Kaolin, Mica and GCC are already sold in automotive applications such as sound dampener, polishes, etc.

April 2016 World Investment casting conference

Megatrend: Industrial efficiency
Case study: Sol Gel Abrasives
Sol Gel Abrasives are well COATED ABRASIVES BONDED ABRASIVES
known. They are made Fibers discs, Belts Vitrified Wheels Phenolic Resin Bonded
through the gelification /
polymerisation of an hydrous
alumina.
Imerys is proposing a new
range of sol gel abrasives
with improved properties.

Imerys projected sales of new products

in abrasives
50

40

30

20

10

0
2013 2014 2015 2016 2017 2018

April 2016 World Investment casting conference

Megatrend: Recycling
Case study IMERPLAST: Enabler of more recycling in plastics
Application: Plastics

A pipe extruded from recycled

polypropylenes and
polyethylenes blended together
will present many failures
because of miscibility issues
With Imerplast, miscibility is
improved and failures
disappear
Before Imerplast After Imerplast
April 2016 World Investment casting conference
 High tech minerals? Our mobile equipment require more and more
minerals
Cover made of resistant, lightweight, fire-
Steel reinforcement proofed and recyclable thanks to our Miniature batteries for
manufactured in blast carbonates, mica, talc, carbon black high-speed charging and
furnaces insulated by our enhanced longevity thanks
refractory minerals, then to our graphite and
rolled after re-heating in carbon black
furnaces lined with our
monolithic refractories Micro-chip and
printed circuit boards
Grinding, milling
Grinding, Sizing Refining
made of silicium,
Milling
manufactured in furnaces
Calcining Sintering Fusion Plasma insulated by our
High-tech screens with refractories then casted
high-tactile sensitivity and Bleaching Surface Magnet Flotation for refining in high purity
Chemistry

ultra-strength polished quartz crucibles

with ultra-high precision Pressin
g
Extruding Pelletizing Casting

abrasives
Insulating foils to avoid
Spray Formulation Mineralogy, LogistIcs
drying Analytics overheating of the micro-
chip: graphite foils

April 2016 World Investment casting conference

Zircon replacement : ALODUR WRG IC ESR
Zircon prices uncontrolled
Surface similar to Zircon face coat
Leads to new products as Zircon replacer
WRG IC ESR (Easy Shell
Removal) is a modifIed
aluminium-oxide flour designed
as a primary coat for
castings of steel an Ni-based
super alloys
With even better surface properties
No reaction between metal and mold
April 2016 World Investment casting conference
Improving the hot mechanical properties of back-up system:
TECO-SIL® HYBRID
The best of two worlds? Through the perfect blend
Designed for back-up slurry,
Amorphous silica appreciated Teco-Sil® Hybrid formulations
for easy shell removal associates the hot mechanical
Alumino silicates have better performance of alumino
creep resistance silicates with the shell removal
effect.

Best hot
deformation
performance

April 2016 World Investment casting conference

Safer Product: GREEN SHELL

Need for a safer product?

At high temperature, silica 65% residual cristobalite in fused

generates crystobalite, a silica shell vs 1 % in green shell
dangerous product 70%
60%
Replacing Zircon also makes a
50%
safer product
40%
30% 65%
Two systems solve the problem
20%
Green Shell 1: Molochite based 10%
Nearly no Crystalline Silica 1%
0%
Green Shell 2: Teco-Sil and fused Fused Silica Shell Green Shell
silica based: better knock out
behavior

April 2016 World Investment casting conference

Why we all have a great future: Investment Casting Market 2015-2020
WW IC Sales WW – $13,6 B Developed Countries IC Sales Emerging Countries IC Sales
Incast Incast Incast
Others Automotive
Automotive
13% 10% Automotive
Others 14%
30% 21%

60% 19%
Others High added Value
56% 78%
High added Value High added Value

18.0

16.0 CAGR: 3.5%

14.0
Emerging Aerospace and High Tech
12.0
Emerging Automotive
10.0
Emerging Other
8.0
Developed Aerospace and High Tech
6.0 Developed Automotive
4.0 Developed Other

2.0

0.0
2015 2016 2017 2018 2019 2020

April 2016 World Investment casting conference

Raw Materials Consumption in Investment Casting
500.000 tons of casting in IC
350kt of moulding materials are
used in investment casting
350.000 tons of materials for IC moulding

Natural Calcined or Fused Chemical

Sintered Materials for moulding by type –
Zircon silicate 350kt
Molochite™
Calcined clays
(chamottes) Binder
Stuccos
57% 14%
Sintered mullite (Mulcoa) (201) (49)
/kyanite/sillimanite
Fused silica
Fused alumina 29%
(102)
Tabular alumina Flour
Fused mullite
Stabilised zirconia
Fused yttria
Colloidal silica/ ethyl
silicate Manufactured by Imerys
April 2016 World Investment casting conference
More Sustainable Minerals

EU plans for
A resource efficient low carbon Europe
A reindustrialised Europe

Have lead to a roadmap to the future

More resource efficient

Even more recycling
More available
Low Carbon
Consumption of energy of the minerals industry
Contribution to low carbon
Highly Innovative
Competitive

April 2016 World Investment casting conference

Recycling

Minerals are recyclable and recycled

Roadmap’s plans are to further increase recyclability of minerals,

through the promotion of recycling of their application
Example: recycling of Polyolefin is limited by their miscibility. ImerplastTM is a
product that solves the problem
Example: paper is today recycled at 72 %, it should increase by a further 8%
A 20% increase of recycling of minerals is foreseen for 2050

April 2016 World Investment casting conference

Low carbon economy
Vision: double the energy efficiency of the mineral industry by 2050
Industry approach: use all possible levers to improve our energy and
carbon efficiency
The example of Imerys: 270 kt of carbon emissions avoided since 2009
3500 102
100 2974 2868 100
3000 2827 2773 2815 2706
98
2500 2219 97.5 96
2000 95.5 94
94.3
1500 92
92.1 91 90
1000
89.6 88
500 86
0 84
2009 2010 2011 2012 2013 2014 2015
Total CO2 émissions (in thousand
tonnes)

Minerals also participate to the low carbon economy through helping light
weighting
April 2016 World Investment casting conference
Conclusion

Minerals’ is a very evolving and innovative industry

In investment casting minerals offer permanent new solutions, more
productive, more respectful of the environment, and more protective of
our workers
Investment casting will grow fast with sophisticated applications such
as automotive, aerospace, defense, etc.

April 2016 World Investment casting conference