VICAT : Full-Year 2011 Results: Solid Performance in a Mixed Environment

Regulatory News:

• Healthy margin resilience in spite of the events in Egypt
• Solid operating cash flow
• Successful strategy of geographical diversification
• Debt under control and very healthy financial position
• Dividend of ?1.50 per share proposed

The Vicat group (Paris:VCT)(NYSE Euronext Paris: FR0000031775 - VCT) has today reported its full-year results for 2011.

(? million)		2011		2010		% change
						Reported		At constant scope and exchange rates
Consolidated sales		2,265		2,014		+12.5%		+9.6%
EBITDA*		491		504		-2.6%		-4.8%
EBITDA margin (%)		21.7		25.0
EBIT**		309		337		-8.1%		-10.9%
EBIT margin (%)		13.7		16.7
Consolidated net income		193		264		-26.9%		-28.4%
Net margin (%)		8.5		13.1
Net income, Group share		164		203		-19.3%		-21.1%
Cash flow		363		409		-11.2%		-13.1%

^* EBITDA: sum of gross operating income and other income and expenses on ongoing business.

^** EBIT: sum of EBITDA and net depreciation, amortisation and provisions on ongoing business.

Commenting on these figures, the Group's CEO stated:

"The Vicat group has published a solid set of full-year results in a very contrasted environment. The EBITDA margin on consolidated sales came to 21.7%, with the knock-on effects of events in Egypt taking a toll. Excluding the non-recurring impact related to the cement tax in Egypt, the Group's EBITDA posted a small increase in 2011 compared with 2010. The resilience of our earnings reflects the benefits of the geographical diversification of the Group's business activities, the impact of the Performance 2010 plan and the ongoing efforts to unlock productivity gains and keep a grip on fixed costs. Thanks to its robust balance sheet and operational successes in India and Kazakhstan, the Group is confident in its ability to reap the full benefit of the investments made in recent years."

In this press release, and unless indicated otherwise, all the changes are stated on an annual basis (2011/2010), and at constant scope and exchange rates.

1. Income statement

1.1 Consolidated income statement

Consolidated sales in the 2011 financial year came to ?2,265 million, representing an increase of 12.5% and growth of 9.6% at constant scope and exchange rates compared with 2010.

Over the same period, the sales recorded by the Cement business posted a rise of 9.5%, while sales at the Concrete & Aggregates and Other Products & Services businesses advanced by 8.5% and 12.4% respectively.

The breakdown of operational sales in 2011 between the Group's various businesses showed a small decline at the Cement division, which contributed 52.1% compared with 53.0% in 2010. The Concrete & Aggregates division contributed 32.8% of operational sales, up very slightly from 32.6% in 2010. The Other Products & Services division generated 15.0% of operational sales in 2011 compared with 14.4% in 2010.

This sales growth achieved by the Group during 2011 was driven by its continued momentum in emerging markets, with the exception of Egypt, an improving economic and industry picture in mature markets and the impact of more clement weather conditions in Europe. In addition, the Group's performance was boosted by a positive impact from changes in the scope of consolidation, owing chiefly to the consolidation over the full year of Bharathi Cement in India (consolidated starting from May 1^st, 2010) and to a lesser extent, the first-time consolidation of concrete and aggregates companies in Switzerland and France.

Vicat's geographical sales mix showed a strong increase in the contribution from Turkey, India and Kazakhstan (+35.3%) and France (+10.7%). The top line rose briskly in Europe (+6.8%), and trends improved in the United States (+3.3%). Given the knock-on effects of events on the market at the beginning of the year in Egypt, sales in the Africa and Middle East region declined by 3.1%.

The Group's operating performance (EBITDA margin) was down compared with 2010, primarily as a result of:

• The very significant impact of events in Egypt on the market and on the operating environment ; in addition, the Group did not benefit in 2011 from the ?18 million in non-recurring income recorded in 2010 in respect of the retroactive adjustment to the clay tax,
• the macroeconomic situation in the United States, even though the Group noted an improvement in trends during the second half of 2011,
• start-up costs related to the greenfield Jambyl Cement plant in Kazakhstan,
• a slight increase in energy costs.

Conversely, 2011 operating performance benefited from the following factors:

• a positive volume effect deriving from the gradual business recovery in mature markets and further strong momentum in emerging markets, with the exception of Egypt,
• the positive effects of the successful geographical diversification of the Group's business activities and in particular the rapid ramp-up in the Bharathi Cement plant in India,
• the combined effects of efficient plants and of the ongoing efforts to keep costs under control.

As a result, the Group's consolidated EBITDA dropped 2.6% compared with 2010 to reach ?491 million, representing a fall of 4.8% at constant scope and exchange rates. Stripping out the non-recurring gain of ?18 million recorded in Egypt during 2010, the Group's EBITDA posted a small increase during 2011 compared with 2010.

The 2011 EBITDA margin slipped to 21.7%. During the second half of the year, the EBITDA margin contracted slightly to 21.2% from 22.1% in the first half of 2011 owing chiefly to the deterioration in market and operating conditions in Egypt as a result of the political events that occurred at the beginning of the year. Though lower over the full year, the level of Vicat's operating margin in 2011 reflects the Group's resilience and solid finances given the events that occurred in Egypt, the persistently challenging macroeconomic situation in the United States and, as expected, the start-up costs related to the greenfield Jambyl Cement plant in Kazakhstan and higher energy costs. However, excluding Egypt's contribution, the EBITDA margin was stable at 21%.

The amortisation charge increased by close to ?14 million in 2011 notably due to the ramp-up of the Jambyl Cement greenfield plant in Kazakhstan and the start of the second kiln in Bharathi Cement in India. As a result, consolidated EBIT fell by 8.1% compared with 2010 to reach ?309 million, down 10.9% at constant scope and exchange rates. The EBIT margin stood at 13.7% in 2011, compared with 16.7% in 2010.

The substantial rise in its net interest expenses was the main factor in the significant increase in the Group's net debt expense. This trend reflected the combined effect of higher interest rates, a larger portion of its debt carrying a fixed rate and a long maturity date, and an increase in the Group's average outstanding debt owing chiefly to the acquisition of Bharathi Cement in India.

The Group's gearing (net debt to equity ratio) remained moderate at 43.8% at December 31 2011 compared with 38.6% recorded at December 31, 2010.

The Group's effective tax rate stood at 25.7%, compared with 14.6% in 2010. This marked rise in the effective tax rate was attributable to an adverse shift in the country mix. There was a strong drop in the contribution from Egypt, where the Group benefited from a preferential tax regime, plus a larger contribution from countries with higher tax rates, including France, Turkey and India. In addition, the rate was also boosted by the non-recurring impact in the cost of subsidiaries taking advantage of the tax amnesty in Turkey.

The net margin was 8.5% of consolidated sales, compared with 13.1% in 2010.

Net income, Group share totaled ?164 million, compared with ?203 million in 2010, representing a drop of 19.3% or 21.1% at constant scope and exchange rates.

On the strength of these full-year 2011 results and confident in the Group's ability to pursue further development, the Board of Directors decided at its meeting on March 8, 2012 to propose a dividend payment of ?1.50 per share to shareholders at the Group's Annual General Meeting due to be held on May 4, 2012. The payout ratio is thus set to rise from 33% in 2010 to 41% in 2011.

1.2 Income statement broken down by geographical region

1.2.1 Income statement, France

(? million)		2011		2010		% change
						Reported		At constant scope
Consolidated sales		939		832		+12.9%		+10.7%
EBITDA		202		184		+9.6%		+7.9%
EBIT		147		131		+11.8%		+10.1%

Consolidated sales in France recorded a strong rise of 10.7% over the full year in 2011. EBITDA advanced by 7.9% to ?202 million. The EBITDA margin came to 20.9%, slightly below the 21.9% posted in 2010. This small erosion in the Group's operating margin was primarly caused by the contraction in the Cement division's EBITDA margin as a result of higher energy costs.

• In the Cement division, consolidated sales grew at a brisk pace of 9.4% reflecting the upturn in the environment during the year. The Group capitalised on a significant rise of 8.7% in volumes and slightly firmer selling prices owing to positive product and geographical mixes. This momentum was underpinned by the improvement in market conditions and by the impact of the favourable weather conditions during the first quarter of 2011 and again towards the end of the year. Accordingly, the division's EBITDA contribution posted a solid rise. Conversely, the EBITDA margin on operational sales fell by 240 basis points notably as a result of the higher energy costs.
• The consolidated sales recorded by the Concrete & Aggregates division rose by 8.4% at constant scope. Concrete & Aggregates volumes moved up significantly, posting rises of over 10% and close to 9% respectively. Selling prices remained stable over the period in Concrete and posted a slight increase in Aggregates. The division as a whole was boosted by the rebound in economic activity in France and clement weather conditions at the beginning and end of the year. As a result, the EBITDA margin on operational sales expanded very slightly.
• The Other Products & Services division recorded an 18.6% increase in its consolidated sales. All the businesses experienced growth, including a significant rise in Transportation (40.5%) owing to the combined effects of the firmer macroeconomic environment and more favourable weather conditions during the first and last quarter of the year. As a result of these factors, the EBITDA margin on operational sales advanced by 40 basis points.

1.2.2 Income statement for Europe (i.e. Europe excluding France)

(? million)		2011		2010		% change
						Reported		At constant scope and exchange rates
Consolidated sales		403		318		+26.8%		+6.8%
EBITDA		102		86		+18.6%		+5.5%
EBIT		72		59		+21.9%		+9.0%

Consolidated sales in the financial year to December 31, 2011 moved up 26.8% and by 6.8% at constant scope and exchange rates in Europe excluding France.
EBITDA also recorded a strong increase to ?102 million. The EBITDA margin on operational sales declined as a result of the significant margin contraction in Italy and smaller decline in Switzerland.

In Switzerland, the Group's consolidated sales advanced by 26.8% and by 5.6% at constant scope and exchange rates on the back of strong market momentum and the favourable weather conditions seen during the first and fourth quarter.

• In the Cement division, consolidated sales posted a healthy rise of 12.4%. At constant scope and exchange rates, the top line was stable (up 0.4%). Operational sales (before intra-group eliminations) increased by almost 11% at constant scope and exchange rates. Volumes rose by more than 5%, as the Group fully capitalised on the momentum of the Swiss market, which was underpinned by a consistently robust construction sector over the year and by clement weather conditions in the first and fourth quarter. Selling prices continued to firm up throughout the period. Accordingly, the divisional EBITDA contribution from the Swiss operations posted a solid rise despite a contraction of 230 basis points in EBITDA margin predominantly as a result of higher energy costs.
• The consolidated sales recorded by the Concrete & Aggregates division rose by 51.0% and by 12.7% at constant scope and exchange rates. Concrete and Aggregates volumes rose sharply. They were boosted by the momentum of the Swiss market in both the infrastructure and residential sectors, as well as by highly favourable weather conditions and the positive impact of changes in the scope of consolidation in concrete. Selling prices moved higher in Concrete, but slipped slightly lower in Aggregates. As a result of these factors, the division's EBITDA in Switzerland increased significantly. Even so, the EBITDA margin on operational sales declined very slightly.
• The Precast division's sales climbed 15.6% and rose by 3.2% at constant scope and exchange rates on the back of volume growth and EBITDA grew over the period.

In Italy, consolidated sales increased by 26.0%, lifted by volume growth amid still depressed market conditions, reflecting the impact of clement weather conditions during the first and fourth quarter. Although selling prices recorded a rise on a sequential basis, the increase was too small to offset the sharp contraction seen during 2010. Sales surged by 45.3% during the fourth quarter, driven again by volume growth.
Together, these factors generated EBITDA of close to ?2 million over the full year. It is also worth noting that EBITDA was significantly better during the second than in the first half of 2011.

1.2.3 Income statement for the United States

(? million)		2011		2010		% change
						Reported		At constant scope and exchange rates
Consolidated sales		165		168		-1.5%		+3.3%
EBITDA		-9		-6		-55.7%		-63.3%
EBIT		-39		-37		-6.0%		-11.2%

Consolidated sales in the United States slipped 1.5% lower on a reported basis, but grew by 3.3% at constant scope and exchange rates. This performance was underpinned by the slight improvement in the construction market during the second half. During the first half, it was dragged down by downbeat economic conditions and poor weather in both Alabama and California.

Amid these tough conditions, the Group posted negative EBITDA of ?9 million in 2011, compared with negative ?6 million in 2010.

• The Cement division's consolidated sales contracted by 8.5% and by 4.0% at constant scope and exchange rates, as prices slipped below their 2010 levels, especially in Alabama. That said, prices were broadly stable on a sequential basis in California. Volumes sold rose by over 3% on the back of a healthy increase in California and stable volumes in the south-eastern US. Operational sales were almost flat (down 0.6%) at constant scope and exchange rates. This performance was underpinned by the slight improvement in the construction market during the second half of 2011, after a difficult first half in both Alabama and California. In an environment depressed by a three-year economic slump, divisional EBITDA in the United States remained negative.
• The consolidated sales recorded by the Concrete division rose by 1.5% and by 6.5% at constant exchange rates. This performance came on the back of a brisk increase in volumes sold in both the south-eastern US and in California, which fully made up for the impact of the drop in selling prices compared with 2010. Even so, given the very low level of volumes and selling prices, the division's EBITDA contribution in the United States was negative.

1.2.4 Income statement for Turkey, India and Kazakhstan

(? million)		2011		2010		% change
						Reported		At constant scope and exchange rates
Consolidated sales		348		256		+36.2%		+35.3%
EBITDA		74		39		+91.5%		+89.5%
EBIT		44		18		+140.0%		+134.8%

In Turkey, consolidated sales came to ?195 million during 2011, representing a decline of 6.5%, but an increase of 9.3% at constant scope and exchange rates. Notwithstanding a slight slowdown in the construction market from spring 2011 onwards, sales volumes continued to move in the right direction thanks to the Cement division's momentum, with infrastructure and commercial projects leading the way. Against this backdrop, selling prices posted a healthy increase. As a result, the EBITDA margin on operational sales rose by 360 basis points to 21.2%.

• In the Cement division, volumes continued to move in the right direction thanks to the momentum of infrastructure and commercial projects, despite the slight slowdown in the construction market referred to above. The consolidated sales recorded by the division rose by 1.0% and by 18.1% at constant scope and exchange rates. Operational sales rose by over 13% at constant scope and exchange rates. This upbeat performance flowed from a healthy rise in the average selling price throughout the period backed up by a favourable geographical sales mix. Volumes were almost flat in 2011 compared with 2010, with a slight increase in domestic market volumes, offsetting the significant decline in export volumes. This trend was in line with the Group's strategy of fully capitalising on the momentum of its local markets. As a result of these factors, the EBITDA margin on operational sales recorded another strong improvement.
• The Concrete & Aggregates division's consolidated sales declined by 15.8% and by 1.5% at constant scope and exchange rates. Volumes dropped considerably in concrete and aggregates as a result of an unfavourable base of comparison, as the Group's performance during 2010 was boosted by exceptionally high demand from infrastructure projects. In line with the Group's strategy of improving its selling prices to their previous levels, prices were raised sharply and almost offset the impact of the volume contraction. As a result, given the cost-cutting drive, divisional EBITDA in Turkey posted a slight increase on its 2010 level.

In India, the Group posted sales of ?126.4 million during 2011, compared with ?47.3 million in the period from May 1, 2010 (the date from which Bharathi Cement was first consolidated) to December 31, 2010. Organic growth came to 90%.
With market conditions still impacted by temporary overcapacity and a weaker increase in demand than anticipated by the market, Bharathi Cement continues to execute its deployment plan in line with the Group's expectations. With over 2 million tonnes of cement sold, Vicat recorded an excellent performance during the period. Selling prices posted a solid increase of close to 40% during 2011. This success validates the wisdom of the Group's strategy predicated on a brand name with a strong reputation and a solid distribution network covering the whole of southern India, including rural areas.
The EBITDA margin on operational sales came to 25.1% during the year, up from 9.9% in 2010. The key factors driving this increase were the rapid ramp-up in production, the price increase and the first-class technical performance of the Bharathi Cement plant.

In Kazakhstan, Vicat continued to ramp up the industrial and commercial operations launched on April 1, 2011 at a brisk pace, in line with the Group's expectations. Volumes of cement sold totalled over 500,000 tonnes during the period in a favourable pricing environment. As a result, sales totalled ?26.9 million over the period.
Accordingly, the Group recorded positive EBITDA of just over ?1 million during the year.

1.2.5 Income statement for Africa and the Middle East

(? million)		2011		2010		% change
						Reported		At constant scope and exchange rates
Consolidated sales		411		441		-6.8%		-3.1%
EBITDA		122		202		-39.2%		-36.9%
EBIT		86		165		-48.0%		-46.0%

The Africa and Middle East region recorded consolidated sales of ?411 million in the financial year to December 31, 2011, down 6.8% and down 3.1% at constant scope and exchange rates. The momentum of the Group's business in West Africa partly offset the significant decline in the Egyptian market, which was hard hit by political events earlier in the year and the complex situation that has arisen since.

The EBITDA margin on consolidated sales came to 29.2% in 2011, well short of the 45.5% posted in 2010. This downturn largely reflects the very steep decline in margins in Egypt owing to the combined effect of the business contraction (volumes and selling prices), the significant increase in production costs and, lastly, the impact of an ?18 million non-recurring gain registered in 2010 on the retroactive adjustment to cement tax.

• In Egypt, consolidated sales recorded a contraction of 33.3% and a decline of 26.4% at constant scope and exchange rates. This fall was attributable to a contraction of around 15% in volumes and selling prices. These trends are chiefly attributable to the political events that occurred at the beginning of the year, as they have had an impact on market conditions and the operating environment. The current situation and in particular the associated security problems have given rise to a number of additional costs, notably including energy and quarry operating costs.
  As a result, the EBITDA margin on operational sales experienced a very significant downturn. In these conditions, EBITDA generated in Egypte in 2011 was down by two-thirds when compared to 2010, including the impact of the non-recurring element. Even so, the Group remains confident about the performance of the Egyptian market in the medium and longer term and in its ability to reap the full benefit of its expansion.

• In West Africa, sales rose 19.0% and 19.6% at constant scope and exchange rates. This performance was driven by brisk growth in cement volumes. The average selling price for the region declined slightly owing primarily owing to an unfavourable mix, albeit one in line with the Group's geographical diversification strategy, and the resulting strong increase in export sales. EBITDA recorded solid progress even if EBITDA margin dropped back 330 basis points owing predominantly to the increase in transportation costs and electricity costs inflated by gas procurement issues, which temporarily obliged the Group to use alternative and more costly means of generating electricity.

1.3 Income statement broken down by business segment

1.3.1 Cement

(? million)		2011		2010		% change
						Reported		At constant scope and exchange rates
Volume (k tonnes)		18,035		16,179		+11.5%
Operational sales		1,356		1,224		+10.7%		+10.4%
Consolidated sales		1,138		1,033		+10.1%		+9.5%
EBITDA		380		413		-8.0%		-8.5%
EBIT		261		303		-13.8%		-14.7%

Consolidated sales recorded by the Cement division grew by 10.1% and by 9.5% at constant scope and exchange rates. Volumes increased by 11.5% over the period.

EBITDA came to ?380 million, representing a decline of 8.5% at constant scope and exchange rates. The EBITDA margin on operational sales dropped to 28.0% from 33.7% in 2010.
The contraction largely reflects the strong downturn in profitability in Egypt and the dilutive impact of Kazakhstan as operations gradually ramp up there.

1.3.2 Concrete & Aggregates

(? million)		2011		2010		% change
						Reported		At constant scope and exchange rates
Concrete volumes (km3)		7,969		7,749		+2.8%
Aggregates volumes (k tonnes)		22,219		20,766		+7.0%
Operational sales		854		752		+13.5%		+8.4%
Consolidated sales		818		716		+14.2%		+8.5%
EBITDA		78		62		+24.9%		+13.8%
EBIT		30		19		+61.4%		+32.4%

The Concrete & Aggregates division recorded consolidated sales up 14.2% and up 8.5% at constant scope and exchange rates. Concrete delivery volumes grew by 2.8% over the period, while Aggregates volumes moved up 7%.

Given the improvement in the division's trading environment, more positive pricing trends and the Group's efforts to cut costs over recent years, EBITDA rose by 24.9% and 13.8% at constant scope and exchange rates. The EBITDA margin on operational sales rose to 9.1% from 8.3% in 2010.

1.3.3 Other Products & Services

(? million)		2011		2010		% change
						Reported		At constant scope and exchange rates
Operational sales		391		333		+17.3%		+13.5%
Consolidated sales		310		264		+17.4%		+12.4%
EBITDA		33		29		+14.8%		+8.1%
EBIT		18		16		+17.3%		+10.3%

Consolidated sales recorded by the Other Products & Services division advanced by 17.4% and by 12.4% at constant scope and exchange rates.

EBITDA rose by 14.8% compared with 2010 to reach ?33.4 million, representing an increase of 8.1% at constant scope and exchange rates.

2. Balance sheet and cash flow statement items

The Group announced on January 12, 2011 that it had issued US$450 million and ?60 million in bond debt via a private placement in the US market. The issue, which was largely oversubscribed, illustrates the Group's determination to maintain healthy diversification of its sources of financing and to extend the maturity of its debt.

In addition, the Group renewed early a syndicated credit line due to mature in July 2012 for a period of five years on more favourable terms. The new ?480 million line is due to reach maturity in 2016.

These two transactions have significantly extended the average maturity of the Group's debt. This now stands at five years, compared with slightly more than two years prior to the transactions.

Net debt stood at ?1,077 million at December 31, 2011, compared with ?988 million at December 31, 2010. Consolidated equity totalled ?2,461 million, compared with ?2,557 million at December 31, 2010.

Based on these figures, net debt stood at 43.8% of consolidated equity, up from 38.6% at December 31, 2010, but down from 48% at June 30, 2011.

Given the level of Group's net debt, the bank covenants do not pose a threat to either the Group's financial position or its balance sheet liquidity. At December 31, 2011, Vicat comfortably met all the ratios in the covenants laid down in financing agreements.

The Group generated a cash flow of ?363 million during 2011, compared with ?409 million during 2010.

Vicat's capital expenditure amounted to ?276 million in 2011 compared with ?335 million in 2010. A substantial portion (more than ?120 million) consists of the continuing investments made in India. The remainder corresponds to the investments made in Kazakhstan, the maintenance and improvement capex across all the countries in which the Group is active and also controlling land ownership.

Following the finalisation of the Group's capital expenditure programme under the Performance 2010 plan, the additional capacity it created stands at around 6 million tonnes, plus 1.1 million tonnes in Kazakhstan and 5 million tonnes in India. Most of the capacity was added in emerging markets, lifting the Group's capacity in these countries to over 18 million tonnes, including India and Kazakhstan, out of a total of close to 27 million tonnes. Between 2006 and 2011, the Performance 2010 plan, the construction of the greenfield Jambyl Cement plant in Kazakhstan, which was started up in early 2011, and the acquisition of a majority stake in Bharathi Cement in India, helped to shift the Group's centre of gravity further towards emerging markets, which now account for close to 68% of the Group's total capacity, compared with 44% previously.

This trend is set to continue with the ongoing construction of the greenfield Vicat Sagar cement plant in India. This 5.5 million tonne capacity cement plant will have two production lines, representing a total investment cost of around US$650 million. The first line is expected to enter service in mid-2012.

Taking these factors into account, the overall amount of capital expenditure in 2012 is expected to decline to between ?200 million and ?250 million, with a significant portion being devoted to the first kiln line at the greenfield Vicat Sagar Cement plant in India.

In line with the funding policy implemented by Vicat, investments are financed using the Group's cash flow. Special financing arrangements have been put in place for the construction of the greenfield plants via local subsidiaries. The project in Kazakhstan was set up in 2008, while the Vicat Sagar project in India was finalised during the first half of 2010.

Financial investments over the period totalled ?36 million, compared with ?277 million in 2010. They primarily reflect the increase in the Group's interest in the Kazakh holding company from 60% to 84%.

Taking these factors into account, the Group generated free cash flow of ?83 million in 2011, down from ?99 million in 2010.

3. Outlook

For 2012, the Group wishes to provide the following guidance concerning its various markets:

• In France, the Group anticipates, excluding weather condition effects, a very slight downturn in volumes during 2012 in a more favourable pricing environment.
• In Switzerland, the environment is likely to remain broadly positive, excluding weather condition effects, with stable volumes and prices expected to firm up slightly.
• In Italy, the Group expects the situation to improve after a very tough year in 2011. Even so, given current levels of cement consumption, volumes should gradually stabilise and selling prices should pick up.
• In the United States, the Group anticipates a very gradual improvement in its markets, in terms of both volumes and pricing.
• In Turkey, the improvement in the industry environment in 2011 is likely to continue into 2012 despite tighter macroeconomic conditions. Against this backdrop, the Group should be able to take full advantage of its efficient production facilities resulting from its investments under the Performance 2010 plan.
• In Egypt, despite a situation that should remain fragile especially during the first half, the market remains upbeat in terms of volume terms and prices are expected to be more favourable, but operational conditions will remain complex. The Group remains confident about the positive performance of the Egyptian market in the medium and long term.
• In West Africa, in a market environment that is likely to remain broadly favourable, the Group will continue to build up its commercial positions across the region, drawing on a fully modernised and efficient manufacturing base, given that a new competitor is expected to arrive in Senegal during the second half of 2012, which may have a negative impact on the market.
• In India, the ramp-up in Bharathi Cement is set to continue, in line with the Group's expectations. In addition, the gradual start-up of the Vicat Sagar plant's lines during the second half of the year will give rise to two major players in southern India, serving complementary markets, able to draw on substantial business synergies, with total nominal capacity of over 7 million tonnes.
• In Kazakhstan, thanks to its ideal geographical location and highly effective production base, the Group should gradually be able to take full advantage of a market poised for solid growth in the construction and infrastructure sectors in what is expected to be a supportive pricing environment.

In this environment, Vicat will pursue its development strategy combining growth in its sales and operating income, while gradually reducing its debt burden.

4. Conference call

To accompany the publication of the Group's full-year 2011 results, Vicat is holding a conference call in English that will place on Tuesday March 13, 2012 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: [phone]
United Kingdom: [phone]
United States: [phone]

To listen to a playback of the conference call, which will be available until midnight on Thursday March 20, 2012, dial one of the following numbers:
France: [phone]
United Kingdom: [phone]
United States: [phone]
Access code: 6438553#

Next publication:
May 2, 2012 (after the market closes): first-quarter 2012 sales

Next date for shareholders:
May 4, 2012: Annual General Meeting of the Shareholders

ABOUT VICAT
The Vicat Group has close to 7,400 employees working in three core divisions, Cement, Concrete & Aggregates and Other Products & Services, which generated consolidated sales of ?2,265 million in 2011.
The Group operates in eleven countries: France, Switzerland, Italy, the United States, Turkey, Egypt, Senegal, Mali, Mauritania, Kazakhstan and India. Nearly 59% 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, but rather trends or targets. These statements are by their nature subject to risks and uncertainties as 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).

APPENDIX

AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR TO 31 DECEMBER 2011 APPROVED BY THE BOARD OF DIRECTORS ON 8 MARCH 2012

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS (in thousands of euros)		Notes		2011		2010
NON-CURRENT ASSETS
Goodwill		3		1,00,195		1,031,189
Other intangible assets		4		100,789		101,496
Property, plant and equipment		5		2,218.465		2,179,837
Investment properties		7		19,089		18,086
Investments in associated companies		8		37,900		38,536
Deferred tax assets		25		2,104		2,553
Receivables and other non-current financial assets		9		82,899		83,229
TOTAL NON-CURRENT ASSETS				3,461,441		3,454,926
CURRENT ASSETS
Inventories and work-in-progress		10		360,104		356,521
Trade and other accounts receivable		11		349,994		302,801
Current tax assets				16,685		10,622
Other receivables		11		144,857		145,422
Cash and cash equivalents		12		359,404		296,176
Total current assets				1,231,044		1,111,542
TOTAL ASSETS				4,692,485		4,566,468
LIABILITIES (in thousands of euros)		Notes		2011		2010
SHAREHOLDERS' EQUITY
Share capital		13		179,600		179,600
Additional paid-in capital				11,207		11,207
Consolidated reserves				1,920,957		1,950,172
Shareholders' equity				2,111,764		2,140,979
Minority interests				349,054		416,123
Shareholders' equity and minority interests				2,460,818		2,557,102
NON-CURRENT LIABILITIES
Provisions for pensions and other post-employment benefits		14		52,631		49,737
Other provisions		15		78,370		87,103
Financial debts and put options		16		1,350,415		1,203,963
Deferred tax liabilities		25		171,429		146,458
Other non-current liabilities				21,762		22,808
Total non-current liabilities				1,674,607		1,510,069
CURRENT LIABILITIES
Provisions		15		10,911		10,168
Financial debts and put options at less than one year		16		106,092		90,515
Trade and other accounts payable				241,862		238,587
Current taxes payable				16,088		9,496
Other liabilities		18		182,107		150,531
Total current liabilities				557,060		499,297
Total liabilities				2,231,667		2,009,366
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY				4,692,485		4,566,468

CONSOLIDATED INCOME STATEMENT
(in thousands of euros)		Notes		2011		2010
Net sales		19		2,265,472		2,013,659
Goods and services purchased				(1,395,552)		(1,182,523)
Added value		1.21		869,920		831,136
Personnel costs		20		(353,022)		(324,532)
Taxes				(45,679)		(45,055)
Gross operating earnings		1.21 & 22		471,219		461,549
Depreciation, amortization and provisions		21		(167,142)		(158,485)
Other income (expense)		22		(2,329)		30,442
Operating income		23		301,748		333,506
Cost of net borrowings and financial liabilities		24		(40,419)		(25,258)
Other financial income		24		31,324		6,655
Other financial expenses		24		(34,800)		(8,747)
Net financial income (expense)		24		(43,895)		(27,350)
Earnings from associated companies		8		1,572		2,680
Earnings before income tax				259,425		308,836
Income taxes		25		(66,297)		(44,595)
Consolidated net income				193,128		264,241
Portion attributable to minority interests				29,521		61,505
Portion attributable to Group share				163,607		202,736
EBITDA		1.21 & 22		490,938		504,294
EBIT		1.21 & 22		309,490		336,942
Cash flow from operations				363,030		408,912
Earnings per share (in euros)
Basic and diluted Group share of net earnings per share		13		3.64		4.52

CONSOLIDATED STATEMENT OF CASH FLOWS
(in thousands of euros)		Notes		2011		2010
Cash flows from operating activities
Consolidated net income				193,128		264,241
Earnings from associated companies				(1,572)		(2,680)
Dividends received from associated companies				2,586		135
Elimination of non-cash and non-operating items:
- depreciation, amortization and provisions				173,457		166,443
- deferred taxes				(1,296)		(12,394)
- net (gain) loss from disposal of assets				(1,980)		(7,942)
- unrealized fair value gains and losses				(1,116)		1,184
- other				(177)		(75)
Cash flows from operating activities				363,030		408,912
Change in working capital from operating activities - net				(11,186)		(6,192)
Net cash flows from operating activities (1)		27		351,844		402,720
Cash flows from investing activities
Outflows linked to acquisitions of fixed assets:
- property, plant and equipment and intangible assets				(280,878)		(321,265)
- financial investments				(10,695)		(22,467)
Inflows linked to disposals of fixed assets:
- property, plant and equipment and intangible assets				11,703		17,678
- financial investments				2,954		9,202
Impact of changes in consolidation scope				(23,725)		(224,952)
Net cash flows from investing activities		28		(300,641)		(541,804)
Cash flows from financing activities
Dividends paid				(122,031)		(83,584)
Increases in capital				6,556		9,729
Increases in borrowings				212,860		698,176
Redemptions of borrowings				(64,089)		(424,106)
Acquisitions of treasury shares				(17,307)		(22,749)
Disposals - allocations of treasury shares				17,348		27,320
Net cash flows from financing activities				33,337		204,786
Impact of changes in foreign exchange rates				(27,233)		7,993
Change in cash position				57,307		73,695
Net cash and cash equivalents - opening balance		29		286,706		213,011
Net cash and cash equivalents - closing balance		29		344,013		286,706

(1)
Including cash flows from income taxes ?(64,837) thousand in 2011 and ?(46,910) thousand in 2010.
Including cash flows from interests paid and received ?(33,510) thousand in 2011 and ?(19,392) thousand in 2010.

STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
(In thousands of euros)		Capital		Addi-tional paid-in capital		Treasury shares		Consolidated reserves		Translation reserves		Share-holders' equity		Mino- rity inte-rests		Total share-holders' equity and minority interets
At December 31, 2009		179,600		11,207		(89,616)		1,874,368		(93,370)		1,882,189		199,384		2,081,573
Consolidated net income								202,736				202,736		61,505		264,241
Other comprehensive income								3,480		109,582		113,062		6,845		119,907
Total comprehensive income								206,216		109,582		315,798		68,350		384,148
Dividends paid								(65,875)				(65,875)		(17,998)		(83,873)
Net change in treasury shares						4,319		166				4,485				4,485
Changes in consolidation scope												0		150,381		150,381
Increases in share capital								4,529				4,529		19,573		24,102
Other changes								(147)				(147)		(3,567)		(3,714)
At December 31, 2010		179,600		11,207		(85,297)		2,019,257		16,212		2,140,979		416,123		2,557,102
Consolidated net income								163,607				163,607		29,521		193,128
Other comprehensive income								6,243		(92,264)		(86,021)		(32,931)		(118,952)
Total comprehensive income								169,850		(92,264)		77,586		(3,410)		74,176
Dividends paid								(65,946)				(65,946)		(56,323)		(122,269)
Net change in treasury shares						1,407		(896)				511				511
Changes in consolidation scope								(24,182)				(24,182)		(9,040)		(33,222)
Increases in share capital								(6,560)				(6,560)		11,774		5,214
Other changes								(10,624)				(10,624)		(10,070)		(20,694)
At December 31, 2011		179,600		11,207		(83,890)		2,080,899		(76,052)		2,111,764		349,054		2,460,818

Group translation differences at December 31, 2011 are broken down by currency as follows (in thousands of euros):

US Dollar:		773
Swiss franc:		130,234
Turkish new lira:		(85,736)
Egyptian pound:		(29,133)
Kazakh tengue:		(27,169)
Mauritanian ouguiya:		(3,369)
Indian rupee:		(61,652)
		(76,052)

The audited consolidated financial statements for the 2011 financial year and the notes are available in their entirety on the Company's web site www.vicat.fr

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