Full Year 2021 Imerys SA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Adrien Tamagno - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I have 2, please. So first, in Performance Minerals in the Americas, you mentioned that you have a backlog of orders that are still expected to be realized in Q1 and Q2 this year, I assume. I was just curious if you had the ability to update your pricing on these pre-agreed, let's say, volumes. That's the first one. And secondly, you mentioned the recyclability of minerals. So can you mention in which vertical this could be the most promising?

Question: Mourad Lahmidi - BNP Paribas Exane, Research Division - Analyst : I have 2. The first one is on pricing. So you mentioned 7% exit rate for pricing in December. Assuming that, I guess, that you're going to implement some further price hikes at the beginning of 2022, if not already done, so what should we look for in terms of price effect on a full year basis? Is it 7%? Or if you annualize, it's going to be less than that? My second question is more on volumes. So you said that the boom behind, the recovery behind. Should we also expect the volume effect to be more consistent with your blended end market growth in 2022? That's my 2 questions.

Question: Mourad Lahmidi - BNP Paribas Exane, Research Division - Analyst : Great. I have a follow-up one on the variable cost start. So you've seen variable costs pick up to almost EUR 100 million in the second half 2021. Is it something that we should expect of the same magnitude in the first half of 2022 and then receding in the second half? Is it fair to make that assumption given the level of raw material costs at the moment?

Question: Mourad Lahmidi - BNP Paribas Exane, Research Division - Analyst : If I may, let me just add a follow-up one on that subject in particular. So you -- in case inflation (inaudible) significantly, just a scenario here. Do you pass that on to customers in terms of price reduction? Because from my recollection, I've never seen a negative price effect at Imerys history. So is that something that you are looking to prevent a decline for that?

Question: Kevin Samir Said Kerdoudi - BofA Securities, Research Division - Analyst : Just a follow-up on the price-mix and volumes. So you're saying that like, yes, you've been shocked by the price increases. I guess your clients, your customers have been like even more shocked. You're also saying that likely the growth of your volume should be in line with the growth of the different economies in which you are involved. Do you -- what is your view on demand disruptions that could come with like price increases at like 6%, 7%, 8%? Do you think that like your customers can still match those price increases? And in terms of volumes, do you expect any reduction in terms of volume because of those price increases in 2022?

Question: Adrien Tamagno - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I just have another question on automotive. You seem pretty optimistic on the impact it can have on Imerys' top line. So just wanted to understand a bit more what level of outperformance compared with cars production should we expect for Imerys with the ramp-up of new graphite and black carbon capacity?