IMERYS IN 2007

Strengths + • The essential • 1 Profile • 2 Our customers’ global partner • 4 Corporate Governance •

10 Key figures • 2007 - our strategy in action • 14 Developing our resources • 16 Optimizing our mineral

processing • 18 Contributing to our customers’ performance • 20 Seizing opportunities for profitable growth •

22 Mobilizing potential • 24 The choice of responsible, sustainable management • 2007 - our performance •

28 Imerys on the stock market • 30 Results by business group • 32 Summary consolidated financial statements •

34 Glossary

We are enhancingour profitable

growth potential.

In 2007,2 new minerals

were added to Imerys’ product portfolio,bringing the total to 29.

Richer

Imerys constantly enriches its mineral portfolio to meet its customers’expectations more fully, move into new markets and consolidate itsworld leadership in industrial minerals.

• Imerys became world #1 in zircon products in 2007 with two acquisitions: UCM, the main European and North Americanproducer of fused zircon and magnesium oxide, and Astron China (1), the Chinese leader in the production and sale of a widerange of zircon products. These two companies are an excellent fit with Imerys’ existing range of solutions for refractories,technical ceramics and investment casting.

• Through a policy of sustained capital expenditure and a dynamic approach to acquisitions, in 2007 Imerys strengthened itsmineral reserves and resources as well as its industrial and commercial capabilities in all its activities.

(1) Acquisition of Astron China completed on February 5, 2008.

In 2007,Imerys' sales in emerging countries

increased + 22%.They now represent 20% of total sales.

More balanced

Imerys is developing in emerging economies to benefit from theirmarkets and growth momentum.

• With the construction of a second plant in India, the start-up of a third plant in Japan and the acquisition of new marblereserves in China, Imerys is swiftly developing its ground calcium carbonate activity in Asia.

• In China, Imerys is making rapid progress by completing several acquisitions, developing its mineral reserves and investingin new production units. This development concerns many of the Group’s businesses – Pigments for Paper, Minerals forRefractories, Fused Minerals, Minerals for Filtration and Graphite – and covers the entire country.

• In India, Imerys is gaining significant presence with the purchase of ACE, the leader in monolithic refractories, and a feldsparfor ceramics producer.

• Imerys is also developing in Minerals for Refractories in Ukraine and Minerals for Filtration in Argentina.

Productivity gains,product range improvements: Imerys consolidates

its technological leadership and the value that its products add for customers.

More forceful

Imerys optimizes its industrial assets and its organization to adaptthem to market trends, increase competitiveness and boost innovationcapacity.

• By specializing its Cornwall (Great Britain) deposits in filler kaolins for paper and transferring coating kaolin production toBrazil, Imerys makes substantial energy savings possible and establishes a more efficient production platform.

• By adapting World Minerals’ industrial assets, Imerys increases its leadership in the development and manufacture of filtrationprocesses.

• By creating an Innovation Department to boost and coordinate the combined efforts and creativity of several divisions, Imerysstimulates its marketing and research people’s imagination and steps up organic growth.

An international recruitment campaign:Imerys strengthens its management potential

to support its growth and plan ahead.

More attractive

Worldwide, Imerys is bolstering its teams with research and productionengineers, geologists and marketing, human resources, financial,safety and environmental specialists.

• Imerys aims for a multicultural environment, decentralized management, immediate responsibilities, broad scope for rapidcareer development, a global playing field and a high-performance business model where individuals are only limited bytheir energy and talent.

• To increase its power to attract talent, Imerys develops compensation, profit-sharing and benefit programs and investsheavily in training. Employees are involved in value creation as they are regularly given the opportunity to becomeshareholders.

• Entrepreneurship, responsibility, transparency, personal commitment: joining Imerys means sharing a state of mind thatencourages everyone to innovate, adapt and progress constantly towards ambitious goals.

Diverse markets

29 260 17,552minerals sites

47countries employees

2007 sales by market (1)

2007 salesby geographic

zone

17%Construction -new

15%Construction -renovation 20%

Emerging countries

55%Western Europe of which France 20%

20%North America(2)

5%Japan /Australia

41%Consumergoods

27%Industrial supplies

(2) United States and Canada.(1) Imerys estimate

1

In Europe, North and South America, Asia and Africa, Imerys mines industrialminerals and turns these natural resources into value-added solutions thatcontribute to its customers’ performance in industry and construction.

Imerys has a unique portfolio of minerals with a sure grasp of their potential properties and applications. The Group mines, purifies andmodifies them by its industrial processes to deliver the effects its customers require. Large-scale mining, conversion and logistics expertiseguarantee consistent quality standards worldwide.

Our people constantly strive to understand the needs of customer products’ end users and develop the Group’s global sales and technicalpresence and innovation capability.

Imerys is listed on Euronext Paris.

We improve our customers’ products and processes.

€3,402 million €478 million €317millionsales current operating income(1)

(1) Before other operating revenue and expenses.(2) Before other operating revenue and expenses, net.

net income from current operations(2)

to our customers worldwide

An integrated group from mineral deposit to market. More than 260 locations in 47 countries across every continent.

Global technical and sales networks.

Innovation capability. 7 Research & Technology centers. 18 specialized laboratories and technical centers. Numerous research

partnerships.

Tailor-made solutions. Implementation services. Proven technical expertise.

Comprehensive, efficient and competitive logistics. Worldwide just-in-time deliveries. Purpose-designed packaging.

Responsible management. World-class operating methods. Environment-friendly site restorations.

Argentina ● Australia ● Austria ● Belgium ● Brazil ● Canada ● Chile ● China ● Czech Republic ● Denmark ● Finland ● France ● Germany ● Great Britain ● Greece ●

Hungary ● India ● Indonesia ● Italy ● Japan ● Luxemburg ● Malaysia ● Mexico ● Netherlands ● New Zealand ● Peru ● Poland ● Portugal ● Romania ● Russia ●

Singapore ● Slovenia ● South Africa ● South Korea ● Spain ● Sweden ● Switzerland ● Taiwan ● Thailand ● Tunisia ● Turkey ● Ukraine ● United Arab Emirates ●

United States ● Venezuela ● Vietnam ● Zimbabwe

2

4 business groups(1)

Leadership in each segment

Minerals for Ceramics,Refractories, Abrasives & Foundry• European #1 in ceramic bodies

for porcelain

• European #2 in raw materials

for floor tiles

• World #1 in minerals for refractory

and abrasive applications

• World #1 in high performance graphite

Performance & Filtration Minerals• World #1 in minerals for plastic

polymer films

• World #1 in diatomite and perlite

for filtration

Pigments for Paper• World #1 in kaolin for paper

• World #2 in ground calcium

carbonate

• World #3 in precipitated calcium

carbonate

Materials & Monolithics• French #1 in clay roof tiles,

bricks and chimney blocks

and natural slate

• World #1 in alumino-silicate

monolithic refractories

(1) Group organization as from February 13, 2008.

With industrial reorganization programs implemented since 2006 nearingcompletion, the Group will leverage commercial synergy between its activitiesby changing operating organization in four business groups (1).

‘07 sales by business group(2008 organization

in 4 business groups)

3

16%Performance & FiltrationMinerals

31%Minerals for Ceramics,Refractories,Abrasives & Foundry

23%Pigments for Paper

30%Materials & Monolithics

7 18Research

& Technology centersSpecialized laboratories and technical centers

Gérard BuffièreCEOand Director

Age 63, French.Joined the Group in 1998,and member of the Managing Board since then.Appointed Chairman of the Managing Board in 2003, he became CEO upon the return to a Board of Directors-based management structure in 2005.

Message from the Chief Executive Officer

Consistency, profitability, responsivenessIn 2007 our markets showed positive trends with a few exceptions but the general economic climate was volatile. We faced a depreciation in the US dollar

against the euro (- 9.1% on average in 2007 vs. 2006) and rises in some cost factors.

In those conditions, the results we posted once again bear out our sound business model: at comparable Group structure and exchange rates, our current

operating income rose + 7.9% and our sales + 4.2%; current operating margin and return on capital improved to 14.1% and 15%, respectively; net income

from current operations per share increased + 3%. 2007 was the 16th straight year of growth in net income from current operations. These results were made

possible by the efforts and responsiveness of all our people on all our operating sites and I want to thank them for that.

High operating performance, faster developmentIn 2007 we invested a record €367 million to maintain the excellence of our industrial assets, make our kaolin and minerals for filtration activities more

competitive, develop our capacities on growing markets for our Group and expand our mining reserves in strategic minerals or regions.

Moreover, we put a net amount of almost €310 million (1) into external growth. The 12 companies that joined us represent around €270 million in sales and

€30 million in operating income on a full year basis.

These acquisitions are full of promise for our Group’s future, as two of them give us leadership in applications for a new mineral – zircon – and ten of them

bolster our positions in emerging economies. Our presence in these high-growth zones accounts for 20% of the Group’s sales in 2007 and we grew + 22%

there from the previous year.

Powerful financial capabilityOur group generated €325 million in free cash flow, after capital expenditure for industrial asset maintenance. This cash is availabe to fund strategic capital

expenditures, as well as acquisitions. Free cash flow totaled €279 million in 2006.

Furthermore, we took advantage of the favorable conditions in the first half of the year to ensure long-term financial resources. Our financial debt at year-end,

€1,343 million, represents 2.1 times the Group’s EBITDA, and we have total financial resources of more than €2,300 million, giving us all the flexibility we

need to seize external growth opportunities.

Optimized organization We have reduced our cost base by around €20 million in our kaolin activity. This upgrading plan will be completed in the first quarter. In parallel, industrial

optimization in our Minerals for Filtration division is nearing completion. The acquisitions made in 2007 (1) will contribute approximately €20 million in additional

income in 2008.

Having optimized our fixed production costs in 2007, now is a good time to improve our product development, marketing and sales structures further in order

to leverage customer synergies between activities. With that aim in mind, our operating organization is structured in four business groups as from February

2008.

In addition, Jérôme Pecresse is appointed Chief Operating Officer of Imerys with the aim of helping me continue our development.

5

(1) Including Astron China, of which acquisition was completed on February 5, 2008; net of divestitures over 2007.

6

We view 2008 with confidence.The + 5.6% increase in dividends that the Board of Directors will put to

the Shareholders’ General Meeting proves this.

Faced with an uncertain economic environment in the early part of this

year, we are now stronger and better equipped to continue improving our

performance.

External factors will disrupt our businesses: the weak US dollar may

penalize our results in euros, but this is essentially the phenomenon of

converting our results from dollar or dollar-based zones into euros, rather

than a loss of our Group’s economic substance. Our major papermaker

customers are reorganizing, but the paper industry will come out of these

changes stronger.We may have to undergo rising costs, but I am confident

that our people’s creativity and responsiveness will enable us to manage

these hazards, which we have already experienced in recent years and

always overcome. Of course, we are not protected from a more extensive

crisis, but no such trend is reflected in our orders to date.

Finally, we are only exposed to North American new housing construction

for 3% and took the necessary measures in 2007 to reduce the

corresponding fixed costs; more than 40% of the final outlets for our

customers’ products are in global household consumption and almost

30% are connected to industrial capital expenditure, which is driven

globally by growth in emerging countries. We benefit significantly from

that growth, whether directly through local bases or indirectly through

sales in Western countries to global customers that export heavily.

With its highly diverse markets, growing exposure to the vitality of emerging

economies, talented, experienced teams, powerful financial capability and

a strong performance culture, Imerys offers a limited risk profile, a sound

economic model and great potential for profitable growth.

EXECUTIVE COMMITTEE

(1)

Christophe DaulmerieVice-President Finance & StrategyAge 39, French.

Joined Imerys in 2000 after holding various positions with the French Ministryof Industry and the European Commission.Was in charge of strategy in Pigments& Additives, sales & marketing in Pigments for Paper Americas and Pigmentsfor Paper operations then managed the business group in Europe.

Olivier HautinPigments for Paper business groupAge 43, French.

Joined Imerys in 1995 after beginning his career in strategy consulting at Mars& Co. he was successively in charge of Strategy & Development for the Group,then in the United States (Atlanta). Since 2000, he held the position of Vice-President and General Manager in several profit centers in Europe and Asiabefore. He was Vice-President and General Manager, Minerals for Ceramicsuntil February 2008.

Daniel MoncinoPerformance & Filtration Minerals business groupAge 45, American.

Joined Imerys in 2002 after holding various positions with the Siemens, BASFand Schlumberger groups. Vice-President and General Manager PerformanceMinerals North America, he was then Vice-President and General ManagerMinerals for Filtration until February 2008.

Christophe Daulmerie Olivier Hautin Daniel Moncino

(1) Group organization as from February 13, 2008.

7

Chaired by CEO Gérard Buffière,the Executive Committee is comprised of Imerys’ principal line and support managers.

Denis MussonGeneral Counsel, Secretary of the BoardAge 44, French.

Joined Imerys in 1999 as General Counsel. His career was previously withPechiney, where he started in the group’s Legal Department before taking overits Corporate department.

Jérôme PecresseChief Operating OfficerMinerals for Ceramics, Refractories, Abrasives & Foundry Business GroupAge 41, French.

Joined Imerys in 1998 as Vice-President Strategy & Development after holdingvarious positions with Crédit Suisse First Boston. Appointed to the ManagingBoard in 2002. Was the Group’s Executive Vice-President Finance & Strategyfrom early 2003 to March 2006.

Thierry SalmonaVice-President Innovation & Business Support, Research & TechnologyAge 53, French.

After holding several positions in the French Ministry of Industry then at Thomson,Sanofi and SKW Trostberg, he joined Imerys in 2000. Managed the BuildingMaterials & Ceramics, then Specialty Minerals business groups. Currently Vice-President Research & Technology, also in charge of innovation, geology, EH&Sand purchasing and energy coordination.

Christian SchenckExecutive Vice-PresidentMaterials & Monolithics Business GroupAge 57, French.

Joined Imetal in 1977 and has remained in the Group throughout his career.Initially uranium and manganese mining operations manager, he joined theGroup’s roof tiles & bricks activity in 1986. In 2002 he was appointed Vice-President for the Building Materials business group, which became Materials& Monolithics in 2005 with the consolidation of Calderys.

Bernard VilainVice-President Human ResourcesAge 53, French.

Joined the Group in 2004 as HR Manager Continental Europe & Asia andappointed Group Vice-President Human Resources in July 2005. Previouslyheld several HR positions with the Schlumberger, DMC and LVMH groups.

Denis Musson Jérôme Pecresse Thierry Salmona Christian Schenck Bernard Vilain

Board of Directors

In 2007, Imerys grew for the 16th year running, with a resumption of dynamic external growth. More

than €233 million(1) was invested in 11 acquisitions, mainly in fast-growing zones where Imerys will

now be more firmly established. Internal growth, supported by €367 million in capital expenditure(2),

was also stepped up with the creation of an Innovation Department, an initiative encouraged by the

Board of Directors. These achievements are the fruit of the Management team’s work, in accordance

with the strategy set down by the Board of Directors in cooperation with the Strategic Committee.

As regards Governance, the proportion of independent members on the Board is higher than the one-

third minimum recommended for listed companies with controlling shareholders like Imerys. A new

independent Director, Mr. Jean Monville, replaced Mr. Yves-René Nanot from May 2, 2007. He also

joined the Audit Committee, which is now chaired by Mr. Aldo Cardoso.

The recommendations resulting from the self-assessment conducted by the Board of Directors in February 2007 to improve its operations and performance,

and those of its Committees, were put into practice. In particular, an additional meeting of the Audit Committee is now specifically dedicated every year to a

review of risks, internal audit and the results of the internal audit assignments.

The Board is also increasingly attentive to Sustainable Development risks and issues, which are examined by the Strategic Committee and the Audit Committee.

The Group’s Sustainable Development policy and results are now the subject of a comprehensive regular report to the Board of Directors. In 2008, they will

be covered by the Group’s third Sustainable Development report.

Non-independent members: 7

Aimery Langlois-Meurinne

Chairman

Paul Desmarais, Jr.

Vice-Chairman

Gérard Buffière

Jacques Drijard

Jocelyn Lefebvre

Maximilien de Limburg Stirum

Thierry de Rudder

Independent members: 7

Aldo Cardoso

Eric Le Moyne de Sérigny(3)

Gilbert Milan

Jean Monville

Grégoire Olivier

Robert Peugeot

Jacques Veyrat

Imerys is governed by a Board of Directors. Control and management functions are separated as Chairman of the Board of Directors and ChiefExecutive Officer (CEO) are two distinct positions. The Board of Directors is comprised of 14 members as on December 31, 2007. Members are appointed for three years, with one-third of seatsrenewed every year.

The Internal Charter of the Board of Directors was drawn up in accordancewith best Corporate Governance practices. The Charter:• sets down the Directors’ individual rights and duties;• defines a code of conduct and principles to be followed in certain areas

such as dealing in Imerys shares;• specifies the missions of the Board and its Committees and their working

principles.

RoleThe Board of Directors’ mission is, in particular, to constantly control the CEO’smanagement of the Group.

Activity• 5 sessions in 2007• Average attendance rate: 73%• 5 sessions planned in 2008

(3) In June 2008, Mr. Le Moyne de Sérigny will cease to have independent status because of the length of his successive terms as Director of Imerys (more than 12 years).

MESSAGE FROM THE CHAIRMAN of the Board of Directors

(1) Not including Astron China, of which acquisition was finalized on February 5, 2008.(2) Booked capital expenditures.

8

Aimery

Langlois-Meurinne

Chairman of the Board

of Directors

CommitteesThree specialized Committees with an advisory role support the Board of Directors in its missions and in preparing its decisions.

Role

• Assist the Board of Directors in defining the Group’s main strategic orientations.

• Control that the strategy implemented by the CEO complies with the orientations

laid down by the Board of Directors.

• Oversee risks with respect to the environment, health, safety and Sustainable

Development and action plans, in cooperation with the Audit Committee.

• Examine the main strategic risks for the Group.

Activity

• 8 sessions planned in 2007

• Average attendance rate: 77%

• 8 sessions planned in 2008

Strategic CommitteeNon-independent members: 5

Aimery Langlois-Meurinne

Chairman

Jacques Drijard

Vice-Chairman

Paul Desmarais, Jr.

Jocelyn Lefebvre

Thierry de Rudder

Independent members: 3

Éric Le Moyne de Sérigny (4)

Gilbert Milan

Aldo Cardoso

Role

• Examine the half-yearly and annual Company and consolidated accounts.

• Control the relevance and consistency of accounting methods.

• Review the main risks to which the Group is exposed, whether financial, legal,

environmental or health and safety-related.

• Oversee environmental, health, safety and Sustainable Development risks

and action plans, in cooperation with the Strategic Committee.

• Examine the program and results of work done by internal auditors on risk

analysis and control.

• Select and recommend candidates for Statutory auditor positions.

Activity

• 3 sessions in 2007

• Average attendance rate: 75%

• 5 sessions planned in 2008

Audit CommitteeNon-independent member: 1

Jocelyn Lefebvre

Independent members: 3

Aldo Cardoso

Chairman

Éric Le Moyne de Sérigny (5)

Jean Monville

Role

• Examine proposed appointments to the Board of Directors and the independent

status of each Director.

• Examine the CEO’s compensation, as well as the general compensation policy

for the Group’s other top managers and the Company stock option or free

share allocation policy.Activity

• 2 sessions in 2007

• Average attendance rate: 83%

• 2 sessions planned in 2008

Appointments & Compensation Committee Non-independent member: 1

Aimery Langlois-Meurinne

Chairman

Independent members: 2

Jacques Veyrat

Robert Peugeot

Statutory auditorsErnst & Young Audit

Represented by Jean-Roch Varon

Alternate Jean-Marc Montserrat

Deloitte & Associés

Represented by Nicholas L.E.Rolt

Alternate Cabinet BEAS

(4) In June 2008, Mr. Le Moyne de Sérigny will cease to have independent status becauseof the length of his successive terms as Director of Imerys (more than 12 years).

(5) M. Le Moyne de Sérigny informed the Board of his resignation from the AuditCommittee as from April 30, 2008, because he no longer had independent member status.

9

KEY FIGURES 2007At €3,402 million, sales rose + 3.5% compared with 2006. Exchange rates had heavy negative impact(- €102 million, i.e. - 3.1%), while Imerys’ active acquisition policy over the period is reflected in a net contributionof + €79 million (+ 2.4%).Organic growth is firm with a + 4.2% increase in sales at comparable Group structure and exchange rates(+ 4.4% in the 1st half, + 3.9% in the 2nd), reflecting higher volumes and a further improvement in the productoffering.

At €478 million, the Group’s current operating income(1) increased + 4.3% compared with 2006. Restated fromGroup structure and exchange rates it improved + €36 million or + 7.9%. Better product offering and increasedvolumes more than compensated the inflation of some external costs.In total, operating margin remains high (14.1% in 2007 vs. 14.0% in 2006) and return on capital (ROI)(2) improvedto 15.0% in 2007, compared with 14.5% in 2006. Imerys has again proved its ability to create value for itsshareholders.

At €317 million, the Group’s share of net income from current operations(3) increased + 2.7% compared with2006. This growth takes into account:• A significant increase in financial expenses, at - €56 million in 2007 compared with - €47 million in 2006.

This change is explained by the increase in average debt and in interest rates;• A current tax charge of - €110 million (compared with - €106 million in 2006), resulting in a stable effective

tax rate at 26.0%.At €5.00, net income from current operations per share increased + 3.0% over the period, with a weightedaverage number of outstanding shares of 63,330,652.The Group’s share of net income totals €284 million (compared with €187 million in 2006). It includes - €33 millionin other operating revenue and expenses, net of tax (restructuring of kaolins for Performance Minerals in theUnited States) compared with - €121 million in 2006 (mainly with respect to the reorganization of the Group’skaolin for paper production).

The Group’s businesses generate extensive current operating cash flow(4) – €523 million in 2007 – that itreinvests in its organic growth in particular. In 2007, attesting to the Group’s confidence in its strategy, heavycapex efforts were made, for a total of €353 million. They represented 186%(5) of depreciation expense.In addition to the capital expenditure needed to maintain production facilities, €208 million was invested in:• The acquisition of strategic reserves; • The rollout of the major industrial improvement programs undertaken in kaolins for paper and in Minerals for

Filtration;• Selected increase of production capacities to support growth on the Group’s markets and develop new products.

Growth combining organicdevelopment and acquisitions

The Group was particularly active on the acquisitions front in 2007, with 11 operations completed for a totalamount of €233 million(6).As on December 31st, 2007, the Group’s net financial debt increased to €1,343 million i.e. 80.7% of shareholders’equity and 2.1 times EBITDA (66% and 1.7 times respectively in 2006).Following a further bond issue in April 2007 for €500 million, as on December 31, 2007 the Group had total financialresources of €2.3 billion with average maturity 6.4 years (vs. 4.5 years as on Dec. 31, 2006). Consequently, theGroup continues to have all the flexibility needed to seize new external growth opportunities.

Sound financial structure

Operating margin remains high

Ongoing growth in results

Extensive cash flow generation to fund growth

(1) Operating income before other operating revenue and expenses.(2) Current operating income divided by average capital invested (including goodwill).(3) Net income before other operating revenue and expenses, net.(4) EBITDA minus tax on current operating income.(5) Booked capital expenditure over depreciation expense.(6) Excluding Astron China, of which the acquisition was completed on February 5, 2008.

10

+ 4.2%

03(7)

Sales (€ millions)

Current operating income (€ millions)

Current operating margin (%)

Net income from current operations,Group share (€ millions)

Current operating cash flow(€ millions)

Net debt(€ millions)

Debt to equity ratio (%)

(7) Consolidated financial statements drawn up under accounting standards R99-02. IFRS standards are applied as from financial 2004.

(8) Development capital expenditure and acquisitions.

organic growth

14.1%operating margin

€441millionused for development(8)

€2.3 billionof total financial resources

16th

yearof growth in net income from current operations

11

04 05 06 07

3,0453,288 3,402

2,8712,729

03(7) 04 05 06 07

288308 317

261219

03(7) 04 05 06 07

480522 523

445378

03(7) 04 05 06 07

434 459 478422

372

03(7) 04 05 06 07

1,140 1,086

1,343

890986

69.9

65.3 67

.6

66.0

80.7

13.6 14

.7

14.3

14.0

14.1

12

Investment Competitiveness InnovationSafety

2007

13

14

DEVELOPING OUR RESOURCES

With 29 minerals, 120 mining sites(1) worldwide and more than 20 years of reserves on average(2), Imerys has the largest,

most diverse and geographically balanced set of industrial mineral deposits in the world. To manage, operate and renew

that portfolio in optimum conditions, Imerys has developed advanced geological expertise. This gives the Group a unique

competitive advantage.

Integrated management of reserves The diversity of needs and end applications demands a diverse portfolio in terms of mineral

nature and quality. Imerys’ mineral reserves are strategic assets as they can be rare and, in

some cases, unique, forming a strong barrier to entry.

Reserves are identified and appraised by a central team of a dozen experienced geologists and

mining engineers who can intervene swiftly around the world to analyze any opportunity. They

are supported in operating divisions by almost 100 geologists and mining engineers, including

around 30 senior professionals. This gives Imerys unique geological expertise.

Imerys assesses its projects’ total cost and profitability taking into account its sites’ future restoration

and all environmental costs. These data are updated throughout a site’s mining lifespan.

The Group is proficient in every mining technique and has powerful digital modeling tools. It is

also able to choose the best techniques, optimize mining planning to draw optimum benefit from

deposits, and adjust production to trends in demand. This expertise enables the Group to keep its

refining and conversion facilities supplied in real time and in optimum conditions with the right amounts

and grades of raw minerals, in order to deliver outstanding quality products to our customers.

A long-term vision The Group strives at all times to have 20 years of reserves(2) for all its minerals on average in

order to secure its long-term growth. For that purpose, it keeps up constant efforts to optimize

deposits in the mining process, plan the mining of other deposits in its portfolio and prospect

for new resources. In 2007, for example, a new geological study of the Lac-des-Iles (Canada)

natural graphite mine was conducted to draw maximum value from the resource.

(1) A mining site may include several mines and quarries.(2) Reserves and resources as defined by the “Code for Reporting of Mineral Exploration Results, Minerals

Resources and Mineral Reserves.”

Positioning on the Chineserefractories market

With the fast-growing Chinese steel

industry driving substantial demand

for refractories, Imerys is positioning

itself as an essential supplier through

the acquisition of the Yilong (Korla,

Xinyiang Province) andalusite reserve.

The deposit offers high quality in terms

of both alumina content and crystal

size.

Reserves 566Proven 408

Probable 158

Resources 1,290Mesured 151

Indicated 268

Inferred 871

Imerys’ reservesand resources in 2007

Mt (millions of metric tons)

15

The Yilong (Xinyiang Province, China) andalusite deposit, acquired in early 2007, was also

exhaustively mapped with a view to the long-term development of this high quality deposit and

the doubling of mined tonnage by 2009.

The extension work begun in 2006 continued on the Ipoh (Malaysia) and Yen Bai Banpu (Vietnam)

white marble reserves. State-of-the-art infrastructures and mining facilities are being set up for

safer, more profitable operation. In addition, the production capacity increase at RCC in Brazil

was also supported by substantial work to expand proven kaolin reserves and new authorizations

were obtained in France to expand clay for tiles and bricks deposits.

Acquiring resources to strengthen our positionsIn 2007, the Group acquired new reserves to gain access to the raw materials needed to serve

tomorrow’s markets.

Imerys significantly enhanced its marble reserves with the purchase of deposits in Greece,

Turkey and China. In China, the Dongshan reserve (Anhui Province) was acquired in addition to

the reserves acquired in 2006 in Zhongshan (Guanxi Province), where mining permits have been

obtained.With extensive white marble reserves(2) in Asia-Pacific, Imerys now has a key competitive

advantage for its development strategy on the region’s fast-growing carbonates market.

The Group also increased its reserves in feldspar, an essential material alongside clays and

kaolins in ceramic manufacturing through two acquisitions. In the United States, the feldspar

deposit operated by The Feldspar Corporation is a good fit since the Group already mines nearby

in North Carolina. In India, Jumbo Mining has first-rate mineral reserves and two units in the

Southeast of the country. These operations enabled Imerys to consolidate its positions on the

North American ceramic applications market with major prospects for industrial synergy and

gave it a base to develop on this vibrant segment in Asia and the Middle East. In parallel, a

strategic feldspar deposit was acquired in Turkey to serve the European floor tiles market. This

enabled Imerys to secure its access to the mineral.

Finally, the Group acquired extensive perlite reserves and an efficient industrial platform in

Argentina with the consolidation of Perfiltra. These reserves enable it to support high market

growth in beer, wine and fruit juice filtration in South America.

Overall, the actions taken by the Group’s people have enabled it to increase its mineral reserves

and resources in strategic areas.

STRENGTHS> Extensive, diverse,

high-quality reserves

> Advanced geological

expertise

> In-depth knowledge

of the properties of every ore

in its different grades

and applications

> World-class mining methods

> Compliance with strict

safety and environmental

procedures

New, more energy-efficient mining methods In Cornwall (Great Britain), wet processes based on the high pressure water cannonstraditionally used to mine kaolin are being replaced by dry methods that makesubstantial energy savings possible.

16

OPTIMIZING OUR MINERAL PROCESSINGImerys converts its minerals to obtain the properties required for its customers’ specific industrial applications.

This transformation calls on complex, often exclusive know-how and processes that are constantly optimized, giving the

Group a decisive market advantage.

Cutting-edge know-how, exclusive processesImerys’ refining and conversion processes are used to obtain, on an industrial scale, the particle

purity, size, shape and distribution that will best deliver the properties needed for a given

application.

Whether directly or through research partnerships with renowned institutes and universities, the

Group has developed a great many processes and so has exclusive technologies and equipment.

Imerys strives to protect its intellectual property in all areas and on every continent. As at the

end of 2007, Imerys owned 3,350 registered or pending trademarks, 984 granted or filed

patents, 179 industrial designs and 3 utility models.

Imerys also has cutting-edge expertise in the grinding, particle sizing, surface chemistry,

calcination, high-temperature melting and packaging of its products. Several Group activities

may share technological advances. Newly acquired companies quickly gain access to this

knowledge. Databases, exchange networks and specific seminars speed up the dissemination

of innovations and best practices in key sectors.

Enhanced competitivenessImerys constantly improves its industrial assets to adapt them to its markets and increase its

competitiveness. This involves both selective production capacity increases and substantial cost

improvement efforts.

The global kaolin for paper restructuring program between Cornwall (Great Britain) and Brazil,

announced in July 2006, was carried out according to schedule. UK coating kaolin production

was stopped at the end of 2007 and the ongoing transition to Brazilian kaolin continues. The

reorganization required an approximately €100 million capital expenditure program to develop

capacities at the Barcarena (Brazil) unit, modernize Cornish units and build a new logistics

platform in Antwerp (Belgium) to distribute Brazilian coating kaolins in Europe. The Group now

has the world’s most effective platform for both coating and filler kaolins for the paper industry.

Process and product innovation in Brazil

Production capacity has been

increased by more than 50%

whilst the total energy consumption

increased by less than 15%,

resulting in a 10% improvement

of energy efficiency.

The world’s largest kaolin for paper

plant achieved this through

two energy-saving innovations:

an exclusive mechanical drying

process and a granulated product

form that sharply reduces energy

consumption as well as dust

emissions during handling.

5th calcium carbonate plant in Asia-Pacific

With the start-up in late 2007 of the ground calcium carbonate (GCC) for paper mill in Niigata (Japan) under a joint venture contract with Hokuetsu Paper Mills, the Japaneseleader in coated paper, Imerys has now built five carbonate plants in Asia-Pacific to supportits growth strategy for the zone.

17

The industrial efficiency improvement drive in World Minerals’ filtration activity is nearing

completion. An important capital expenditure program was implemented in 2007, mostly in the

Lompoc (California, United States) plant to modernize production with new-generation processes

and equipments. The program has led to a significant improvement in the activity’s productivity

and operating flexibility.

In the United States, against the backdrop of a heavy downturn in the construction market, the

Group began to scale down capacity in kaolin for performance minerals in order to reduce the

fixed cost base.

Further progress on energy efficiencyThe energy directly used in manufacturing processes represented approximately 11% of the

Group’s production costs in 2007. Imerys aims for a 5% sustainable improvement in its plants’

energy productivity per year(1). In 2007, the Group improved its energy efficiency by 3%.

For kaolin, energy consumption can vary fourfold depending on the drying process. Efficient

mechanical processes have been rolled out in Europe and Brazil to improve energy efficiency.

For synthetic graphite, which calls for temperatures of 3,000°, process improvements have led

to a 20% reduction in energy consumption in 20 years as part of an ongoing trend.

Roles are being developed for biogas, biomass, cogeneration and alternative energies. In 2007,

biogas feeds came on stream for clay calcinations and brick firing in France and for kaolin

conversion in South Carolina. Use of biomass to produce clay products and chamottes has also

continued to grow. Finally, a 20-30 MW wind power project is being examined in Cornwall.

(1) Measured as energy consumption per production unit.

> Industrial and technological

leadership

> Complex, high value-added

conversion processes

> Exclusive know-how

> Efficient logistics

> Constantly optimized

cost base

STRENGTHS

18

CONTRIBUTING TO OUR CUSTOMERS’PERFORMANCEAs an essential partner in its customers’ performance, Imerys provides them with technical solutions that improve their

manufacturing processes, reduce their costs and enhance the quality of their products. The Group commits substantial

resources to research and is stepping up its in-house development projects.

High value-added solutions Thanks to its unique portfolio of minerals, in-depth knowledge of their properties and its industrial

expertise, Imerys designs solutions that meet its customers’ expectations for their products and

processes. The Group’s ability to combine different mineral properties enables it to improve

several parameters at once.

Imerys works in partnership with its customers to help them make better products more cheaply.

Many new products developed in 2007 achieve those goals.

This is the case for the new graphite TSC30™, used in lithium-ion batteries to extend their

absolute and reversible capacity and make them easier to produce. In Performance Minerals,

Helia Cal™ 3000 and Lumicarb™ 395 pigments, used as additives in paint and plastics, deliver

equivalent brightness for lower energy consumption.

In Monolithics, a new refractory, Kermag dry 6001 and 8010, improves sanitary and working

conditions as it does not give off odors or steam. Rodarox™ Dry 8015, a monolithic refractory

that is efficient from 1,350°C to 1,700°C is designed for foundries with a diverse production

range.

Parkaolin, a new kaolin for sanitaryware that is perfectly suited to emerging industries, and

Optibric PV, a rectified brick with superior insulation and faster laying for small collective housing

units, are more examples of new products that add value every day for many Imerys customers.

Joining forces to satisfy our customers better For a high number of customers, Imerys develops technical solutions on a multi-mineral, multi-

expertise basis. This approach stimulates the innovation capability of Imerys’ people: closer to

their customers, they identify new expectations that give rise to new ideas for solutions. Major

projects were realized in this area in 2007.

A new CeramicResearch Centre in Limoges,France

A ceramic innovation team has been

set up in Limoges to focus on new

applications, particularly in technical

ceramics.

This new laboratory works

in synergy with the European

ceramic competitiveness center,

two engineering schools and

two specialized university laboratories.

Optimat: incredible matting power

Stemming from research on minerals for filtration,

this paint matting agent also ensures even colors,

makes formulations more stable and reduces drying time.

All thanks to a combination of properties created by the right

particle size distribution.

STRENGTHS

In Building Materials, for example, Label Home is one of Imerys’ responses to the demand for

greater energy efficiency in new housing. This range of HQE(1) housing products developed by

Imerys Structure combines the Group’s clay roof tile and brick offerings and guarantees optimum

insulation for low-consumption housing. The addition of photovoltaic roof tiles further reduces

the house’s greenhouse gas impact.

In Minerals for Abrasives, new zircon abrasive grains, Zr 40 UM, are given a surface treatment

that makes it easier to spray them onto substrates, resulting in more efficient and longer-lasting

tools. The market outlook for AlodurTM Rod 96 and Rod 92 abrasives led the business group

to build a new production line in Italy. Used to make large grinding wheels, these products

increase the amount of metal removed for a given abrasive consumption, saving both energy

and abrasives.

In another field, refractories for large industrial furnaces, the Group’s products and services

provide a complete turnkey solution for relinings and upgrades. The range of refractories it has

developed has been enhanced with specific products for high and low temperatures that are

especially convenient for repairs.

Sustained innovation effortsThe Group puts extensive resources into research, investing approximately 1% of its 2007 sales.

270 scientists and technicians work in 7 main centers in Europe (Par Moor, Great Britain; Bodio,

Switzerland; Villach, Austria; Limoges and St-Quentin Fallavier, France) and the United States

(Sandersville, Georgia; Lompoc, California) and in 18 regional laboratories to develop relevant

solutions for every customer and set up cooperation programs with research institutes and

universities.

The Group’s activities are responsible for managing their own Research & Development. They

demonstrate great ability in designing specific innovations for their areas of business and

expertise. Considerable potential for further innovations exist at the crossroads between several

activities. Identifying those opportunities and turning them into new businesses for the Group

is the mission of the new Innovation Department created in early 2007. Around 20 research

projects have already been identified and are being gradually implemented in nanomaterials,

ceramics and functional additives for building materials.

(1) High environmental quality label.

> In-depth knowledge

of markets and

end applications

> Ongoing technical dialog

with customers

> Competitive solutions

that meet customers’ needs

> Substantial resources

committed to research

New, more energy-efficient kiln furnitureThe Kiln Furniture activity has developed a light cordierite composition for making

H-shaped kiln furniture with approximately 15% less weight, enabling roof tile makers

to save energy. Tests are in progress to verify the new products’ mechanical and thermal

strength.

19

Capital expenditure andacquisitions(€ million)

Industrial Capex(2)

Acquisitions

Total, of which

(2) Booked capital expenditure.(3) Not including Astron China, of which acquisition was completed

on February 5, 2008.

20

SEIZING OPPORTUNITIES FOR PROFITABLE GROWTHImerys’ activities generate substantial, recurring cash flow that the Group invests back into its development by combining

internal and external growth. Imerys' ability to integrate its acquisitions and improve and develop their performance swiftly

is a key feature of its value creation model.

A firm capital expenditure policyEvery year Imerys invests to uphold the quality of its industrial assets and to develop through organic

growth. Capital expenditure was particularly significant in 2007, reflecting the Group’s confidence

in its strategy, with €367 million invested, i.e. 186%(1) of depreciation expense.

In addition to the capital expenditure needed to keep production facilities in perfect working order,

important capital expenditure was invested to implement major industrial performance improvement

programs in kaolins for paper and Minerals for Filtration. The plans will lead to substantial

improvements in these activities’ cost bases in 2008. In parallel, industrial optimization actions

continued in all the Group’s activities.

Production capacities were expanded to support growth on the Group’s markets and develop new

products: bottleneck removals at facilities in Minerals for Refractories, where production units had

been stretched by high sales volumes; start-up of new ground calcium carbonate (GCC) for paper

production unit in Niigata (Japan); construction in progress of a production unit for a new generation

of corundums for abrasives in the Domodossola (Italy) plant; the production capacity extension in

the Saint-Germer (France) clay roof tile plant and the Gironde sur Dropt (France) rectified clay bricks

plant.

The capital expenditure in bricks is part of the plan announced in June 2007:€100 million will be

invested by 2011 to address French growth in clay bricks (5% per year) and consolidate Imerys’

leadership in this market segment. Following production capacity increases at two existing rectified

brick plants by 2008, two new plants will enhance the activity’s industrial network in northern and

southern France.

Finally, mining reserves were increased significantly in strategic areas such as carbonates and

feldspar.

(1) Booked capital expenditure over depreciation expense.

Capitalizing on high growth in India

The acquisition of ACE, the Indian

leader in monolithic refractories,

will enable Imerys to draw full benefit

from the high growth on this market

in India (10% per annum in the coming

years). The operation will also enable

the Group to serve its Monolithics

customers in the Middle East

and Asia more effectively.

05 06 07

229 226 367

440 33 233(3)

669 259 600

21

Faster external growthThe Group pursued a very active acquisitions policy in 2007 with 11 operations(4) completed for

a total of €233 million (5).

With the acquisition of UCM (April 2007) and Astron China (early February 2008), Imerys became

the world #1 in fused zircon products, an excellent addition to its offering in refractories, ceramics

and investment casting. These activities represent combined sales of approximately €170 million

on a full-year basis, mainly in China. UCM is also active in magnesia oxides.

In parallel, the Group significantly increased its exposure to growth in emerging countries by

carrying out most (9 out of 11) of its acquisitions in such zones in 2007. After full integration of

acquisitions implemented since the beginning of 2007(6), emerging countries will represent 23%

of Imerys’ sales, compared with 17% in 2006.

In China, the acquisition of Astron China gave Imerys the critical mass it needed with four modern

and efficient new plants and a distribution network with good geographic coverage. The operation

is in addition to the acquisition of Yilong and Xinlong (65% Imerys-owned), companies specializing

in andalusite and vermiculite production – Baotou (85% Imerys), a producer of natural high-

performance graphite – and ZAF (60%), the Group’s third joint venture in brown corundums for

abrasives in China. Imerys also expanded its Chinese reserves of marble for calcium carbonates.

In India, the Group gained a firm foothold through the acquisitions of ACE, the Indian leader in

silico-aluminous monolithic refractories with two plants and five sales agencies in the

country’s major cities, and Jumbo Mining, an Indian feldspar producer. Imerys already

had an industrial base in pigments for paper in India.

The acquisitions of Perfiltra, the Argentinean leader in perlite for filtration, and the

takeover of Vatutinsky (stake raised from 26% to 86%), a Ukrainian company

specializing in the production of chamottes (calcined clays) for refractory markets,

positioned the Group on other high-growth markets.

In parallel, Imerys divested its clay roof tiles and bricks activities in Spain and

Portugal and a company that trades in ceramic products for craftsmen in France,

for a total amount of €41 million. These activities achieved sales of €38 million

in 2006.

(4) Not including Astron China, which acquisition was finalized on February 5, 2008.(5) Net of divestitures.(6) Pro forma 2007 basis including Astron China.

Stronger industrial base in chamottesImerys acquired a controlling stake in Vatutinsky, a Ukrainian company specializing

in the production of low and medium alumina chamottes (calcined clays) that mainly

serves Eastern European markets. The operation strengthens the Group’s production

base in chamottes, which also include facilities in the United States (C-E Minerals)

and France (AGS).

> Substantial recurring

cash flow to fund

development

> Organic growth sustained

by investment capacity

> Stronger positions

in emerging countries

> Proven ability to integrate

and develop acquisitions

STRENGTHS

22

MOBILIZING POTENTIAL

Developing employees’ entrepreneurship, skills and commitment, sharing knowledge and expertise, deploying the

resources needed to keep up strong international development: by strengthening its teams and helping them to express

their potential, Imerys strengthens its growth prospects.

Encouraging mobility, recruiting talent,training our teams From annual performance appraisals and individual career development to compensation &

benefits reviews, straightforward and efficient career management tools are used Group-wide.

Every year, succession plans are draw up with substantial input from our top managers. Internal

mobility is a global reality. In 2007, 613 vacancies in the Group were filled in-house.

Imerys strives to recruit, train and promote high-quality teams to support its growth. Towards

the end of 2007, a three-year campaign was designed to recruit 300 young graduates from all

backgrounds. Mobile, English-speaking candidates will be selected according to the values and

principles that define the attitudes and skills required to join Imerys and develop in the Group.

To develop managers in an international, decentralized context, the Imerys Training Center

enables experienced employees to gain new skills. After the “Geology Essentials” and “Finance

for Non-Specialists” modules created in 2006 and rolled out in the United States in 2007, a

new “Project Management” module has been launched. Marketing training for a broad management

population will also be carried out in 2008.

The Group’s goal is to enhance basic knowledge in selected areas while encouraging personnel

to learn common processes and to network.

Strengthening essential benefitsImerys strives to develop competitive, consistent compensation & benefits programs. For example,

top managers’ annual bonuses are structured in the same way across all the Group’s activities.

A minimum benefits policy defined in 2007 for Latin America and China is being phased in from

January 2008. At the same time, a global assistance/insurance contract was set up to cover all

Group employees traveling for work.

Welcome to Imerys

In 2007, the Group organized three

induction days for its new managers

in Europe. A session also took place

in the United States for the first time.

In China, a special session brought

together old and new managers

for a general presentation of Imerys.

Employees in 2007

(1) United States & Canada.

17,552people

44%Western Europe of which France 20 % and the Great Britain 9 %

16%North America(1)

1%Japan /Australia

39%Emergingcountries

23

Dialog and support for restructuring plansIn all locations, Imerys has regular dialog with personnel representation bodies and 50% of

the Group’s employees are covered by a collective agreement. The European Works Council,

which represents 7,922 employees in 17 countries (45% of all personnel), carefully organizes

its annual plenary meeting, chaired by the Chief Executive Officer. The 2007 session was held

in Germany.

Whenever restructuring is necessary, the Group strives to provide all possible internal and external

placement solutions, backed up by training and personalized support. This was the case in 2007

for employees on the Devon and Cornwall (Great Britain), Arcos (Brazil) and Lamotte-Beuvron

(France) sites.

Almost all the Group’s French subsidiaries have profit-sharing agreements and many subsidiaries

in other countries have set up equivalent schemes. As at the end of 2007, 20.8% of Imerys’

employees held shares in the Group through the successive employee shareholder plans

implemented since 2001.

Bolstering HR teamsBecause the successful rollout of the Group’s human resources programs depends on high-

quality line managers, Imerys bolstered its HR teams in 2007, recruiting experienced managers

in China, the United States and Europe. The Group also brought in international mobility and

career development specialists to speed up implementation of the relevant programs.

Community integrationImerys aims to work in harmony with the communities in which it is based and help to improve

living conditions. In 2007, the Group formalized its principles in terms of commitments to local

communities and trained site managers. Audiovisual training designed for managers in direct

contact with neighboring populations was launched towards the end of the year. It describes

and illustrates the Group’s commitment through tangible examples and completed projects. This

module also enables line managers to analyze local needs in order to address them more

effectively.

The actions undertaken on illiteracy continue. Enabling its employees to grasp basic knowledge –

reading, writing and arithmetic – is a duty for the Group. Pragmatic training standards and

processes, based on successful experiences in Great Britain and Brazil, for example, will be

implemented in 2008.

> Decentralized management

fostering entrepreneurship

and excellence

> Common policies

in essential areas

> High internal mobility

> Group training on

crossfunctional subjects

> Demanding ethics

> Solidarity with local

communities

The Imerys code of business conduct and ethics This document summarizes the main ethical behavior the Group expects of its employees, subcontractors, suppliers and other partners: everyone complies

with local legislation and abides by the principles of responsibility, integrity, fairness and openness that are the Group’s values. The code was translated

into 10 languages in 2007. It is circulated on the Group’s intranet and is now published on the website www.imerys.com.

STRENGTHS

24

THE CHOICE OF RESPONSIBLE,SUSTAINABLE MANAGEMENTImerys views Sustainable Development as a crucial success and improvement factor for the long term. The Group takes

every step to ensure that its commitments are met and to improve the safety of everyone on its sites, its activities’

environmental footprint and relations with third parties, especially local communities.

Strong, group-wide commitmentImerys’ Sustainable Development strategy is defined by a Steering Committee that includes

three Executive Committee members and meets quarterly. The Committee is assisted by a

Sustainable Development Workgroup comprised of Environment, Health & Safety (EHS) and

Human Resources professionals from all the Group’s activities. Efforts are coordinated by the

Vice-President EHS. Every operating division factors the Group’s Sustainable Development

principles into its action plans, guaranteeing that Imerys’ values and ethics are put into practice

wherever it is active.

The Group’s Sustainable Development action plans and performance are examined regularly by

the Group’s Audit and Strategy committees. The last assessment was conducted in December

2007.

The reporting scope now includes all Imerys’ subsidiaries, with indicators that are relevant to

the nature of its activities. New indicators were set up in 2007 for water and waste management.

Since 2005, the Group has had an EHS charter, together with detailed implementation procedures.

The charter was reviewed in 2007 and is based on integrated management systems that foster

continuous improvement processes. An EHS audit program regularly assesses units’ compliance

with regulations and the 25 protocols drawn up the Group. The program is carried out by a team

of 15 in-house experts who conducted 35 audits in 2007.

Safety: a prevention team on every siteImerys treats its employees’ safety and health as a top priority. The target of a lost-time accident

rate below 6(1) was reached in 2007, meaning that the Group has halved this rate since 2005.

(1) Number of accidents causing lost time per million hours worked.

The Imerys Safety Universityin Shanghai

The Group employs 3,100 people

on 44 sites in the Asia-Pacific region.

By holding one of the 10 sessions

in 2007 of its Safety University,

a program for line managers,

in Shanghai, Imerys asserted

its commitment to protecting

and improving safety in every country

where the Group operates,

particularly with recently acquired

companies.

05 06 07

11.79 7.96 5.76

48 65 84

Lost-time accidentsPer million hours worked

ISO 14001 certificationNumber of sites certified

25

The Imerys Safety University is the cornerstone of that improvement. Since it was founded in

2005, the University has trained more than 400 people who in turn cascade skills down through

the Group’s entities. Safety awareness seminars are organized in newly consolidated companies

within a few months of their acquisition. In addition to these resources, in early 2007 Imerys

made extensive prevention efforts in the six areas that cause most serious accidents: work at

heights, isolating facilities, electrical installations, mobile equipment, ensuring stable ground

and protecting machines. In each of these areas, precise safety rules are deployed Group-wide

with the support of specialized training.

In 2007, every site also set up a Safety Prevention team comprised of managers, workers and

subcontractors. The team meets the site’s management every month. Training support tools are

available on the EHS intranet and a dedicated Safety Culture Improvement Team takes action

on sites as needed. Every division draws up a prevention action plan that it monitors monthly

and reports on quarterly to the Chief Executive Officer.

Environment: rolling out the imerys processBeyond compliance with local environmental regulations, Imerys develops common minimum

standards for all its activities on air emissions, water quality, waste management, sound pollution

and post-mining site restoration. From the outset of any mine opening project, plans are made

for the site’s eventual restoration, which significantly influences mining methods. In 2007, several

sites in Brazil and France underwent model restorations, especially in terms of biodiversity.

To step up its improvement, in November 2007 the Group began an Environmental Action Plan

that draws on the experience and organization used for Safety. From January 2008, environmental

incidents will be reported in detail and environmental training is being set up on a regional basis.

Four sessions are scheduled for 2008. Special efforts will also be made on the rollout of the

five environmental protocols that the Group has made its priorities: air emissions; hazardous

substance storage; waste water and rain water; mining restoration; and solid mineral storage.

In parallel, Imerys strives to make its mining and conversion processes increasingly efficient in

terms of natural resource and energy consumption. The Group also offers its customers solutions

for their processes or products that in turn help to protect the environment.

> An integrated Sustainable

Development process

> Quantified, measured and

published improvement

targets

> A stringent EHS audit

program

3rd Imerys Sustainable Development ChallengeThe competition rewards teams who show in the field that Imerys acts as a responsible industrial

citizen that cares about its environment. Since the initiative was launched in 2005, 87 projects have

taken part, 22 of which have won awards in the categories Environment, Innovation, Human

Resources and Community Relations.

STRENGTHS

26

27

GrowthSales doubled in 10 years.16 straight years of growth in net incomefrom current operations.

RobustnessDiverse, global markets.A sound financial structure.

ProfitabilityOperating margin over 14%.Dividend up 77% in 5 years.

PotentialProfitable markets with many projects and the human and financial means to carry them out.

Imerys share price trends (in euros from 12.31.2006 to 29.02.08)

Monthly trading volumes (thousands)

40

45

50

55

60

65

70

75

80

85

Imerys price SBF 120 (Imerys share price on 29/12/06)

In 2007, Imerys stock went through contrasting trends. After reaching a record high of €78.30 on June 1, 2007, the share fell

sharply in the wake of companies in the building materials sector. At the closing rate for the year, €56.24, Imerys was valued at

11.3 times its forecast for 2007.

Daily trading volumes rose significantly in 2007 averaging 172,963 shares compared with 128,799 in 2006.

IMERYS ON THE STOCK MARKET

J 20070

1,000

2,000

3,000

4,000

5,000

6,000

7,000

F M A M J J A S O N D J 2008 F 2008

J 2007 F M A M J J A S O N D J 2008 F 2008

Data per share

2007 2006 2005Net income from current operations per share, Group share €5.00 €4.86 €4.53Net dividend per share €1.90(1)

€1.80 €1.65

Weighted average number of shares outstanding 63,330,652 63,475,098 63,426,126Shares outstanding 63,126,856 63,334,620 63,971,865

High €78.30 €72.55 €65.00Low €52.65 €53.90 €54.15Closing price €56.24 €67.40 €61.10Market capitalization as on December 31 €3,550 million €4,269 million €3,908 million

(1) Proposed to the General Meeting on April 30, 2008. The dividend will be paid on May 13, 2008.

The Imerys share

As on December 31, 2007, Imerys’ capital totaled €126,253,712, divided into 63,126,856

shares with par value €2, to which were attached a total of 97,048,499 voting rights, taking

into account the double voting rights intended to reward shareholder loyalty.

Number % of % of votingAs on December 31, 2007 of shares capital rights

Pargesa Netherlands BV 17,246,462 27.32% 35.38%Belgian Securities BV (GBL group) 16,898,778 26.77% 34.67%

Sub-total 34,145,240 54.09% 70.05%Other shareholders (2) 28,981,616 45.91% 29.95%

(2) Including 5,110,441 shares held by the Prudential Plc group.

Share capital and voting rights

Shareholder information Imerys keeps its shareholders informed about its activities,

strategy and results. The Group publishes a Letter to

Shareholders four times a year, a semi-annual report,

an annual business report in brochure form and a

comprehensive annual report registered with stock market

authorities.The latest edition of the Sustainable Development

report, published every two years, provides further

information in non-financial areas and will be available in

June 2008. Finally, the website www.imerys.com, which

was overhauled in terms of both graphics and user-

friendliness in May 2007, gives access at all times to the

latest information on the Group and to all Imerys’ regulated

financial information over the past five years.

For any information on the Group, the Imerys Shareholders

service can be contacted as follows:

Imerys Financial Communications154 rue de l'Université - 75007 Paris - FranceTel.: + 33 (0) 1 49 55 66 55Fax: + 33 (0) 1 49 55 63 98e-mail: shareholders@imerys.com

Registrar serviceThe registrar service for Imerys shares is handled by:

CACEIS Corporate Trust14 rue Rouget de Lisle 92862 Issy Les Moulineaux Cedex 9 - France• Tel.: + 33 (0) 1 57 78 34 44 • Fax: + 33 (0) 1 49 08 05 80• e-mail: ct-contact@caceis.com

Registering shares in the shareholders' own name eliminates

custody fees. It also entitles shareholders to double voting

rights after two years and lets them receive General

Shareholders’ Meeting notices and other relevant information

from the Group.

Imerys provides registered shareholders with an online

service allowing them to consult their securities account

via www.ct.olisnet.com (login oils@actionnaire).

This secure website gives shareholders access to:

• The value of their securities account;

• Their latest stock movements;

• Their online exercise;

• The status of their rights and

• All documentation on General Shareholders’ Meetings.

To register in their own name, shareholders should contact

their financial intermediary, who will contact CACEIS

Corporate Trust. If necessary, CACEIS Corporate Trust will

send shareholders any documents needed for registration.

Listing marketEuronext Paris - Eligible for deferred settlement (SRD)

Par value: €2

Capitalization as on 12.31.2007: €3.55 billion

Indexes• SBF 120

• DJ Eurostoxx 600

CodesISIN: FR000012085

Reuters: IMTP.PA

Bloomberg: NK.FP

SRI indexes• FTSE4Good

• ASPI Eurozone® index

• Forum Ethibel

29

RESULTS BY BUSINESS GROUPMarket conditionsPerformance Minerals markets (paint, plastics, adhesives, etc.) were healthy in Europe. Business, however,

remained difficult throughout the year in North America, with a further downturn in the construction

segment in the 2nd half of 2007. In Pigments for Paper, global production of printing and writing paper

rose by an estimated + 1.4% in 2007, driven by high growth in Asia-Pacific (+ 6.1%). Restructuring

continues on European and North American markets (paper mill shutdowns), leading to a higher utilization

rate for remaining capacity.

PerformanceSales decreased - 3.1% from 2006, entirely because of the negative impact of exchange rates (- 4.3%).

At comparable structure and exchange rates, sales rose + 0.8% over the year (+ 0.9% in the 1st half;

+ 0.7% in the 2nd), with a slight improvement in product offering and volumes. The improvement in

paper fully offset the downturn in performance minerals.

At €105 million, current operating income increased + 1.3% (+ 14.3% at comparable structure and

exchange rates) and the operating margin improved slightly (9.5% vs. 9.1% in 2006).

Materials & Monolithics

Market conditionsIn Building Materials, the roofing segment was stable over the year, while in structure bricks clay products

continue to win market share from concrete blocks with + 2.7% growth.

The Monolithic Refractories market benefited from brisk business with a dynamic steel sector in Europe

and rapid growth on Asian markets.

PerformanceSales rose +9.7%.At comparable structure and exchange rates, sales grew + 9.1% over the year (+10.6%

in the 1st half; + 7.5% in the 2nd). This growth reflects the combined effect of higher sales volumes,

particularly in monolithic refractories, and an improved product offering in all the business group’s

activities.

At €235 million, current operating income increased + 9.8% (+ 9.0% at comparable structure and

exchange rates) and operating margin was stable at 22.9%.

Ceramics,Refractories,Abrasives & Filtration

Market conditionsMinerals for Ceramic markets grew slightly in Europe but continued their heavy slump in the United

States because of the construction crisis. Minerals for Refractories markets improved significantly, thanks

to a vibrant steel industry. Fused Minerals markets, driven by the industrial equipment sector, were active

in both Europe and North America. In Minerals for Filtration, markets benefited from demand growth in

emerging economies.

PerformanceThe + 4.7% rise in sales takes into account a net structure effect of + 5.0%, with 9 transactions completed

since the beginning of the year, and heavy negative impact of exchange rates (- 3.8%).

At comparable structure and exchange rates, sales increased +3.5% over the period (+ 3.0% in the

1st half; + 4.0% in the 2nd), thanks to a better product offering and higher volumes.

At €173 million, current operating income rose + 1.1% (+ 2.6% at comparable structure and exchange

rates). Operating margin worked out at 13.3%, compared with 13.8% in 2006, reflecting the integration

of newly acquired companies whose profitability is not yet as high as the business group’s other activities.

PerformanceMinerals & Pigments

30

‘07 sales: - 3.1%

Current operating income: + 1.3%

€1,103 million

€105 million

€1,026 million

€235 million

€1,297 million

€173 million

‘07 sales: + 9.7%

Current operating income: + 9.8%

‘07 sales: + 4.7%

Current operating income: + 1.1%

‘07 sales by activity

‘07 sales by activity

‘07 sales by activity

30% of consolidated sales

38% of consolidated sales

32% of consolidated sales

31

67%Pigments for Paper

52%BuildingMaterials

48%Refractory solutions

33%PerformanceMinerals

29%Minerals for Ceramics

22%Minerals for Refractories

25%Fused Minerals

19%Minerals for Filtration

5%Graphite & Carbon

SIMPLIFIED FINANCIAL STATEMENTS

Consolidated balance sheet

(€ millions) 2007 2006 2005

AssetsFixed assets(4) 2,590.5 2,428.7 2,624.9Inventories and receivables 1,305.5 1,237.9 1,179.1Other assets 123.1 108.9 98.6Cash 183.2 225.5 256.6

Total 4,202.3 4,001.0 4,159.2

LiabilitiesShareholders’ equity (including minority interests) 1,663.6 1,646.4 1,686.2Provisions 343.0 417.9 410.9Gross financial debt (5) 1,526.2 1,311.6 1,396.6Other liabilities 669.5 625.2 665.5

Total 4,202.3 4,001.0 4,159.2

(4) Of which net mining reserves: 399.6 437.8 497.2(5) i.e. net financial debt: 1,343.0 1,086.1 1,140.0

Consolidated financial statement

(€ millions) 2007 2006 2005

Sales 3,401.9 3,288.1 3,045.2EBITDA (1) 646.7 643.4 596.9

Current operating income(2) 478.3 458.8 434.0Financial income (expense) (55.7) (46.7) (47.3)Current taxes (110.1) (106.4) (101.0)Equity method 6.9 5.2 4.6Minority interests (2.7) (2.6) (2.7)

Net income from current operations, Group share(3) 316.7 308.3 287.6Other income and expense, net (32.5) (120.9) 21.8

Net income, Group share 284.2 187.4 309.4

(1) Earnings before interest, tax, depreciation and amortization.(2) Operating income before other operating revenue and expenses.(3) Net income before other operating revenue and expenses, net.

32

Cash flow statement

(€ millions) 2007 2006 2005

EBITDA 646.7 643.4 596.9Tax on current operating income and other depreciation (124.1) (121.3) (117.1)

Current operating cash flow 522.6 522.1 479.8

Change in operating working capital (6) (4.9) (66.8) (18.1)Paid capital expenditure (352.6) (217.0) (251.0)

Current free operating cash flow(7) 174.1 245.8 219.4

Financial income (expense) (55.7) (46.7) (47.3)Tax on financial income 14.5 12.1 12.4Change in other working capital items,deferred tax, other (15.6) (12.2) 10.6

Current free cash flow 117.4 199.0 195.1

External growth (232.8) (33.0) (439.6)Divestitures 40.7 19.2 183.8Exceptional cash flow (41.2) (31.2) (30.4)Dividends (116.0) (106.2) (96.3)Share buybacks (39.9) (21.6) (22.6)Exchange rates / other flows 14.9 27.6 (40.2)

Change in net debt (256.9) 53.8 (250.2)

(6) Working capital(7) Including divestments and subsidies 9.0 7.5 8.7

33

Abrasives: substances used for wearing or polishing.

Alumina: aluminum oxide (Al2O3).

Andalusite: a natural alumino-silicate mineral, transforming into mullite,

an essential component in acid refractories, when fired. Contains around

60% alumina.

Biogas: gas resulting from the fermentation of animal or plant matter in

the absence of oxygen. Also called methanization, this process occurs

naturally in marshes or spontaneously in landfills containing organic waste.

Biomass: organic, non-fossil matter of biological origin forming a usable

source of energy.

Cogeneration: simultaneous production of electricity and heat to improve

total energy yield.

Corundum (Fused aluminum oxide, fused bauxite): obtained by

melting alumina (white corundum) or bauxite (brown corundum) in an

electric arc furnace. During fusion, the physical properties of aluminum

oxide are modified (higher density, different crystal size and structure).

Diatomite: a silica-based mineral formed from the fossilized remains of

microscopic aquatic plants. Diatomite is used as a filtration agent to make

beer, fruit juices, some food products and wine and to manufacture

pharmaceuticals and chemicals. It is also used as a mineral filler, mainly

in paints, and as an anti-adhesive for plastic films.

EMAS - Eco-Management and Audit Scheme: an international

standard with the aim of promoting improvement in environmental

performance (assessment, communication on results, training).

Feldspar: natural mineral used for the vitrification of ceramic bodies in

porcelain and earthenware manufacturing.

Fillers and coatings: Fillers are added to paper web to fill up the empty

spaces. White pigments improve the paper’s appearance and printability.

Coating involves applying a thin film containing a mixture of kaolin, GCC,

PCC and selected chemical additives and binders to paper to make it

glossier, brighter and more opaque.

Ground calcium carbonate (GCC): GCC is obtained by grinding and

grading marble to obtain particles with a precise size and shape. The

mineral is originally derived from sediments of shellfish and marine fauna,

exposed to various degrees of heat and pressure over time.

High-performance graphite: natural or synthetic crystallized carbon

used for applications including electrical batteries, friction products (e.g.

brake pads) and technical lubricants.

ISO 14001: a standard defined by an international organization with the

aim of helping businesses to manage the environmental aspects of their

activities, products and services effectively.

Kaolin: also known as china clay, kaolin is a natural white platy mineral

derived from the geological alteration of granite or similar rock. Kaolins

go through complex processing. When ground, they give a range of

products with controlled particle size and platiness.

Kiln furniture: shaped parts made from refractory materials (cordierite,

mullite or silicon carbide) that must provide good resistance to mechanical

and heat shock and be as light as possible to save energy during firing.

Monolithic refractories: made of natural or synthetic mineral raw

materials, including chamottes (calcined clays), andalusite, mullite, bauxite,

tabular or fused alumina, spinel (alumino-silicate monolithics), magnesite,

dolomite and chromite (“basic” monolithics), to which are added binders,

e.g. refractory cement, clay and additives. Monolithic refractories are fitted

by casting, plugging or projection.

Perlite: a volcanic rock containing 2-5% water which, when heated

quickly, turns to steam, dilating its rock matrix to up to 20 times its initial

volume. The result is a lightweight material with a high contact surface.

Perlite is used to filter beverages. It also has significant outlets in

construction (ceiling slabs) and horticulture (off-ground cultivation).

Precipitated calcium carbonate (PCC): PCC is produced artificially

from natural limestone. This is burnt to form lime and then re-precipitated

with carbon dioxide. The process can be controlled to give different particle

sizes and shapes.

Refractories: materials that resist high temperatures. Depending on the

application, they can also bear heavy weights or resist corrosion.

Zircon: zircon is sold in different forms such as zircon sand or flour. Fused

zircon is obtained by melting zircon sand in an electric arc furnace and

takes the form of precisely calibrated grains and powders with sizes

ranging from several millimeters down to less than a micron. Its unique

properties mean it is used as a high value-added raw material in a wide

range of applications, particularly on the refractories, friction and technical

ceramics markets.

GLOSSARY

34

Financial Communication Schedule 2008• February 13 Annual results 2007• April 30 Annual General Meeting

1st quarter 2008 results

• May 13 Payment of dividend• July 31 1st half 2008 results • November 4 3rd quarter results 2008

ContactsImerysFinancial Communications• telephone + 33 (0) 1 49 55 66 55• fax + 33 (0) 1 49 55 63 98• e-mail: shareholders@imerys.com• post: Imerys

Financial Communications154-156 rue de l'Université75007 Paris - France

French corporation (Société anonyme) with Board of Directors and capital of 126,253,712 eurosTrade register: RCS Paris B 562 008 151

Design and production Art Design Fabrication

Photo creditsMichel Bost, Stan Celestian/Glendale Community College Web, Christian Chamourat, Eddy Cervo,Tom Growth, Dominique Lecuivre, Nicolas Richez,Gilles Rolle/REA, Howard Spiers, DR.

This report is printed on paper containing Imerys pigments.

Minerals pictured

1 Andalusite

2 Vermiculite

3 Monolithic refractory

4 “Thiviers” sandstone

5 Corundum

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154-156 rue de l'Université - F - 75007 Paris - France

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