VICAT 
By PRESS RELEASE
? Consolidated sales up 3.2% at constant scope and exchange rates
? Upbeat business trends in the United States,
Kazakhstan Turkey, Switzerland and? Continued ramp-up of Group activity
market environment in India i n a difficult competitive? Overall business trends confirmed in the third q uarter, with a rise of 3.1%
at constant scope and exchange rates marked activity in France by a stabilisation of the? Solid
financial position, with a healthy balance sheet and debt under control Paris La Défense, 5 November 2013: TheVicat grou p (NYSE Euronext Paris:
VICAT INVESTOR CONTACTS:
STÉPHANE BISSEUIL TEL.: +33 (0)1 58 86 86 13
stephane.bisseuil@vicat.f r
FR0000031775 - VCT) today reported its sales for the nine months ended 30 September
2013, which were stable compared with the same period of the previous year at ?1,740 million. At constant scope and exchange rates, the Group's sales recorded an increase of 3.2% compared with the same period of 2012.
Consolidated sales by business segment:
VICAT PRESS
CONTACTS:
CLOTILDE HUET
TEL.: +33 (0)1 58 86 86 26 clotilde.huet@tbwa-
corporate.com
REGISTERED OFFICE:
TOUR MANHATTAN
6 PLACE DE L'IRIS F-92095 PARIS - LA DEFENSE CEDEX
TEL.: +33 (0)1 58 86 86 86
FAX: +33 (0)1 58 86 87 88
A FRENCH REGISTERED COMPANY WITH SHARE CAPITAL OF ?179,600,000
Commenting on these figures, the Group's CEO said: "Vicat's performance over the first nine months provides further evidence of the pertinence of the Group's b alanced expansion strategy. In an economic environment still varying from one region to another, Vi cat posted an encouraging top- line increase at constant scope and exchange rates. The United S tates, Switzerland, Turkey and Kazakhstan again delivered healthy business levels while political a nd security factors in Egypt and
EEC IDENTIFICATION: FR 92 -
competition in
ndia and Senegal continued to weigh on the Group's performance in these regions.
0 7 505 539
RCS NANTERRE
Although third-quarter sales dropped back 1.5% owing to a highl y negative currency effect, the
Group's performance at constant scope and exchange rates rema ined solid (up 3.1%) owing in particular to a return to a stabilising of its global level of activity in France. Against this backdrop, Vicat is confidently pursuing its strategy of maximising its cash flow a nd paying down its debt."
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PRESS RELEASE
Consolidated sales came to ?1,740 million in the first nine months of the 2013 financial year, representing an increase of 0.6% and growth of 3.2% at constant scope and exchange rates compared with the same period of 2012.
A breakdown of operational sales between
the Group's various business segments shows a small
decrease in the Cement division's contribution, which stood at 51.1% of operational sales, down from
52.6% in the same period of first nine months of 2012. Concrete & Aggregates generated 33.5% of operational sales, compared with 31.9% in the first nine months of 2012. Other Products & Services
posted a stable contribution of equivalent period of 2012.
15.3% of
2013 operational sales, compared with 15.4% in the
Consolidated sales during the third quarter of 2013 stood at ?593 million, down 1.5% compared with the same period of 2012, but up 3.1% at constant scope and exchange rates. Over the same period, Cement sales at constant scope and exchange rates edged 1.6% lower, while Concrete & Aggregates sales moved up 10.8%. Other Products and Services sales were almost stable (down 0.7%).
In this press release, and unless indicated otherwise, all changes are calculated based on the first nine months of 2013 by comparison with the first nine months of 2012 and are stated at constant scope and exchange rates.
1. Geographical breakdown of consolidated sales in the nine months to 30 September 2013 1.1. France(? million) | Nine- months 2013 | Nine-months 2012 | % change | |
(? million) | Nine- months 2013 | Nine-months 2012 | Reported | At constant scope |
Consolidated sales | 651 | 663 | -1.9% | -2.7% |
Sales in France posted a decline of 2.7% over the first nine months of 2013. The decline during the period, which had one business day less than the previous year, was due mainly to the slowdown in the construction market and unfavourable weather cond tions, which affected the first half of the year. Conversely, the global level of activity stabilised in France with operational sales stable at 0.6% and consolidated sales up 1% in the third quarter.
? In Cement, sales contracted by 7.4%. Operational sales (before inter-sector eliminations) fell
back
5.1%, reflecting a gradual, yet
steady improvement in business levels since the first
quarter of the year. This top-line contraction was the product of a decline of just over 6% in
volumes given
the unfavourable weather conditions at
the beginning of the
year and a
downbeat economic and industry environment throughout the period. In spite of this backdrop, the average selling price moved higher. During the third quarter, operational sales were still down by 3% while consolidated sales were almost stable (down 0.9%).
? In Concrete &
Aggregates, sales
grew by 2.8%. Concrete volume s moved up 2.8%, with
aggregates volumes rising by 6.5%. The average selling price eroded slightly in Concrete but
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PRESS RELEASE
moved higher in Aggregates. During the third quarter, sales rose by marked increase in aggregates volumes.
3.6% on the back of a
? In Other Products & Services, sales fell back 7.7% compared with the beginning of the year
and by 2.5% in the third quarter. As
the year has gone on, business trends have gradually
narrowed the gap on the previous year's levels.
(? million) | Nine- months 2013 | Nine- months 2012 | % change | |
(? million) | Nine- months 2013 | Nine- months 2012 | Reported | At constant scope and exchange rates |
Consolidated sales | 318 | 307 | +3.6% | +5.8% |
In Europe, excluding France, sales rose by 5.8% at constant scope and exchange rates and by 7.0%
in the third quarter.
In Switzerland, the Group's sales grew to ?303 million over the first nine mo nths of the year. During the third quarter, the strong business performance in Switzerland continued, with sales moving up to
?116 million.
? In Cement, consolidated sales picked up to ?84 million amid still highly competitive conditions,
causing selling prices to fall slightly
from one year to the next. In the third quarter, healthy
momentum in the Swiss market continued with sales rising by 3.4% under the positive trend created by new infrastructure projects.
? In Concrete & Aggregates, sales grew by 9.8% over the period as
a whole. Selling prices
remained almost unchanged in Concrete and
declined in Aggregates. The
Group's third-
quarter sales recorded strong growth (up 18.6%) as a
Concrete and Aggregates.
result of higher volumes in both
? Precast sales grew by 3.4% over the first nine months of the year and by 1.2% in the third quarter when competitive pressures intensified slightly.
In Italy, sales dropped by 18.0% over the
first nine months of the year and by 22.0% in the third
quarter. Business has been severely depressed since the beginning of
the year
by a highly
challenging macroeconomic and industry environment. The steady rise in selling prices resulting from
the selective business policy and the development of export sales did not
make up for the steep
decline in volumes (down 25%) that deepened in the third quarter (down 29%).
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PRESS RELEASE
(? million) | Nine- months 2013 | Nine-months 2012 | % change | |
(? million) | Nine- months 2013 | Nine-months 2012 | Reported | At constant scope and exchange rates |
Consolidated sales | 166 | 151 | +10.4% | +13.7% |
In the United States, sales climbed 13.7% and surged 20.6% in the third quarter. This performance reflected the progressive recovery in US economic conditions over the past few quarters. Volume growth continued, coupled with moderate rises in selling prices, even if these rises vary from one region to another.
? In Cement, consolidated sales recorded a substantial increase of 5.3% in the first nine months of the year (operational sales up 9.1%). Volumes continued to move higher (2.4%), with good growth in California underpinned by the start-up of infrastructure projects, which helped to fully
offset the slight contraction recorded in the
South-East, owing largely to poor weather
conditions. Selling prices edged moderately higher in California, but to a far more significant
extent in the
South-East. During the third quarter, consolidated
sales moved up 7.3%
(operational sales up 11.2%).
? In Concrete, sales advanced by 17.5%. This performance was driven by a rise of 12.5% in volumes, reflecting a significant increase in the South-East and to a lesser extent in California. This volume growth was accompanied by a solid increase in selling prices in both areas. Sales growth continued into third quarter (up 26.8%).
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PRESS RELEASE
(? million) | Nine- months 2013 | Nine- months 2012 | % change | |
(? million) | Nine- months 2013 | Nine- months 2012 | Reported | At constant scope and exchange rates |
Consolidated sales | 361 | 332 | + 8.8% | + 17.3% |
In Turkey,
sales rose
19.5% to ?183 million. After a
first half in which the Group, like the entire
industry, made the most of the supportive
weather conditions and an upbeat macroeconomic and
industry environment, sales climbed more moderately in the third quarter (up 12.6%) owing chiefly to a high base of comparison.
? In Cement, consolidated sales moved up 17.2% over the period.
This trend came from a
significant rise in volumes together with a rise in selling prices. During the third quarter, the top line expanded by 14.6% on the back of significant volume growth and a still positive pricing environment.
? Concrete & Aggregates sales rose by 23.1%. Growth in Concretes & Aggregates volumes was supported by work on major housing projects, particularly in the Ankara region. During the
third
quarter,
sales rose
more moderately (up 9.5%)
wing chieffly to a high base of
comparison, since the large Ankara projects began during the second half of 2012.
In India, the Group's sales rose by 12.5% to ?119 million during the first nine months of 2013 after taking into account the elimination of sales and volumes of the first quarter, prior to the effective start- up of the Vicat Sagar plant. With the start-up of Vicat Sagar, volumes posted a significant increase of
close to 25%, with cement deliveries of the Group totalling over 2.3 million tonnes.
Conversely,
competition
remained
very fierce throughout a period marked
by a slowdown in investment in
infrastructure ahead
of the elections due to be held
at the end of the first half of
2014. In this
environment, selling prices remained highly volatile and recorded a steep decline over the period as a whole.
During the third quarter, the Group's sales in India posted a 14.6% increase, underpinned by volume growth of 24%.
In Kazakhstan, a high-potential
market, the Group pursued its
deployment, with volume growth
running at over 9% in a favourable pricing environment. All in all, sales for the period rose by 21.2% to
?59 million.
This performance reflects the
positive momentum in a rapidly-expanding
market, the
progressive efficiency improvement of the manufacturing facilities and graduall expansion in the areas served by the Group.
Business contracted slightly, by 4.9%, during the third quarter. Afte
a highly positive first half, delivery
volumes declined in that quarter owing to maintenance operations made to
the production facilities
and to low levels of stock over the summer. The pricing environment remained supporti up for part of this decline.
e and made
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PRESS RELEASE
(? million) | Nine- months 2013 | Nine- months 2012 | % change | |
(? million) | Nine- months 2013 | Nine- months 2012 | Reported | At constant scope and exchange rates |
Consolidated sales | 245 | 278 | -12.1% | -8.4% |
In the Africa and Middle East region, sales declined by 8.4% over the first nine months and by 12.9%
during the third quarter.
In Egypt, sales fell back 18.3% over the period owing to a significant decline in volumes offset partly by a rise in average selling prices during the first nine months of 2013. Since the beginning of the
year, the Group's operations have been affected by
a challenging security environment that has
disrupted operation of the plant and marketing of its products. During the third quarter, the second wave of political unrest across the country coupled to the Ramadan period sparked a hefty top-line
contraction
(34.1%) particularly
during August when
action was
taken by
Government forces to
restore security in the
Sinai region. Since
the launch
of the offensive, the gradual restoration of
security has enabled the Group to achieve a significant improvement during
September. That said,
deliveries remain restricted by the measures taken to persistent lack of visibility in the short term.
maintain order in a
context marked by the
In West Africa, sales fell by 3.9%. Since the beginning of the year, cement volumes have held stable (down 0.5%). Although selling prices were broadly stable on a sequential basis, they are still below their 2012 level. During the third quarter, sales recorded a 3.4% decline.
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PRESS RELEASE
2.1. Cement
(? million) | Nine- months 2013 | Nine- months 2012 | % change | |
(? million) | Nine- months 2013 | Nine- months 2012 | Reported | At constant scope and exchange rates |
Volume (thousands of tonnes) Operational sales Eliminations Consolidated sales | 13,679 1,026 (171) 855 | 13,485 1,043 (164) 879 | +1.4% -1.7% -2.8% | +2.1% +1.4% |
Consolidated Cement
sales dropped by 2.8% but rose by 1.4% at constant scope and exchange
rates. Volumes grew by 1.4% over the period. During the third quarter, consolidated sales
declined by 8.1% and by 1.6%
at constant scope and
exchange rates. Third-quarter volumes contracted by 3.1%.
2.2. Concrete & Aggregates
(? million) | Nine- months 2013 | Nine- months 2012 | % change | |
(? million) | Nine- months 2013 | Nine- months 2012 | Reported | At constant scope and exchange rates |
Concrete volumes (km3) Aggregates volumes (thousands of tonnes) Operational sales Eliminations Consolidated sales | 6,405 17,181 673 (18) 655 | 5,805 16,015 633 (23) 610 | +10.3% +7.3% +6.3% +7.4% | +7.3% +8.3% |
Consolidated Concrete & Aggregates sales grew by exchange rates.
7.4% and
by 8.3%
at constant scope and
Concrete delivery volumes rose by 10.3% over the period, with Aggregates
7.3%.
volumes moving up by
In the third quarter, consolidated sales rose by 7.6% and by 10.8% at constant scope and exchange rates. At the same time, volumes grew by 6.3% in Concrete and 14.4% in Aggregates.
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2.3. Other Products & Services
(? million) | Nine- months 2013 | Nine- months 2012 | % change | |
(? million) | Nine- months 2013 | Nine- months 2012 | Reported | At constant scope and exchange rates |
Operational sales Eliminations Consolidated sales | 307 (77) 230 | 306 (65) 241 | +0.4% -4.4% | +1.9% -3.3% |
Consolidated Other Products & Services sales declined by 4.4% and by 3.3% at constant scope and exchange rates. During the third quarter, consolidated sales fell by 2.0% a nd by 0.7% at constant scope and exchange rates.
3. Trends in financial str cture
Vicat's financial position remains very healthy. Gearing was 51.3% at 30 September 2013, versus
53.3% at 30 June 2013.
Bank covenants do not pose a threat to either the Group's financial position or its balance sheet liquidity. Vicat meets all the ratios in the covenants laid down in financing agreements.
The Vicat Sagar greenfield plant in India became operational in December 2012, marking the end of an
ambitious investment programme that has considerably extended the Vicat and laid the foundations for long-term profitable growth.
Group's geographical reach
The Group
now intends to take advantage
of its strong market positions,
the quality of its production
facilities and its strict
cost control, with the
aim of gradually maximising cash flow and reducing
debt,
before starting a new phase of its international development strategy.
For 2013, the Group wishes to provide the following comments concerning its various markets:
? In France, the Group expects the economic and sector environment to remain difficult, which is likely to lead to a further fall in volumes in a continued favourable price environment.
? In Switzerland, the overall operating environment is likely to re main positive, with volumes expected to improve.
? In Italy, the market remains difficult in an improving pricing environment. Given current levels of cement consumption, volumes should very gradually stabilise and selling prices begin to recover.
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PRESS RELEASE
? In the United States, the Group anticipates further improvement in its business, in terms of both volumes and prices.
? In Turkey, the improvement in the sector environment is continuing in 2013. The Group should be able to take full advantage of its efficient production facilities and strong market positions.
? In Egypt, the market remains disrupted by the current security troubles, even if it is improving, with
volumes expected to fall
but in a continued favourable price environment. The Group remains
confident in the Egyptian market's positive outlook in the medium and long term.
? In West Africa, volumes remain stable. The Group therefore intends to capitalise on its modern, efficient production base to expand sales across the whole West Africa region.
? In India, the
Vicat Sagar greenfield plant became operational in late 2012. The resulting
commercial deployment in the first
half of 2013, along
with the ongoing ramp-up at Bharathi
Cement, will gradually make the Group a major player in Southern India. The Group's ramp-up in India takes place in a market that is nevertheless currently marked by a slowdown in cement consumption and low prices.
? In Kazakhstan, the Group's ideal
geographical location
and highly effective
production base
enables it to
take advantage of a
market
poised for
solid growth in the
construction and
infrastructure sectors, in what is expected to remain a supportive pricing environment.
To accompany the publication
of its nine-month 2013 sales,
the Vicat
group is
organising a
conference call that will be held in English on Wednesday 6 November 2013 at 3pm Paris time (2pm
London time and 9am New York time).
To take part in the conference call live, dial one of the following numbers:
France:
United Kingdom: United States:
+33 (0)1 76 77 22 36
+44 (0)20 3427 1924
+1 646 254 3387
To listen to a playback of the conference call, which will be available until 7pm on 13 November 2013, dial one of the following numbers:
France:
+33 (0) 1 74 20 28 00
United Kingdom: +44 (0)20 3427 0598
United States: +1 866 932 5017
Access code: 9158211#
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PRESS RELEASE
Investor relations contact:
Stéphane Bisseuil:
Tel.: + 33 (0) 1 58 86 86 13 stephane.bisseuil@vicat.fr
Press contacts:
Clotilde Huet
Tel.: +33 (0)1 58 86 86 26 clotilde.huet@tbwa-corporate.com
ABOUT VICAT
The Vicat
Group has
over 7,500 employees working in three
core divisions, Cement, Concrete &
Aggregates and Other Products & Services, which generated consolidated
2012.
sales of ?2,292 million in
The Group operates in eleven countries: France, Switzerland, Italy, the United States, Turkey, Egypt, Senegal, Mali, Mauritania, Kazakhstan and India. Nearly 62% of its sales are generated outside France.
The Vicat
Group is the heir to an industrial tradition
dating back to 1817,
when Louis Vicat invented
artificial cement. Founded in 1853, the Vicat Group now operates three core lines of business: Cement, Ready-Mixed Concrete and Aggregates, as well as related activities.
Disclaimer:
This press
release may contain
forward-looking statements. Such forward-looking statements
do not
constitute forecasts regarding results or any other performance indicator, These statements are by their nature subject to risks and uncertainties as
but rather trends or targets. described in the Company's
annual report available on its
website (www.vicat.fr). These
statements do not reflect the
future
performance of the Company, which may differ significantly. The Company does not undertake to provide updates of these statements. Further information about Vicat is available from its website (www.vicat.fr).
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PRESS RELEASE
Cement | Concrete & Aggregates | Other Products & Services | Inter-sector eliminati ons | Consolidated sales | |
France Europe (excluding France) United States Turkey, Kazakhstan, India Africa and Middle East | 280 135 74 306 230 | 328 126 119 83 16 | 178 98 - 31 - | (136) (42) (27) (59) (2) | 651 318 166 361 245 |
Operational sales | 1,026 | 672 | 307 | (265) | 1,740 |
Inter-sector eliminations | (171) | (18) | (77) | 265 | - |
Consolidated sales | 855 | 655 | 230 | - | 1,740 |
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