Vicat : 2018 Consolidated nine months sales

2018 consolidated nine-month sales

•  Growth of +7.6% in consolidated sales over the first nine months of the year at constant exchange rates*

•  Very strong currency headwinds leading to a negative impact of -€125 million at end September

•  All countries delivered growth at constant exchange rates except for Egypt and Switzerland

•  Increase of +4.0% in third-quarter sales at constant exchange rates

Paris La Défense, 6 November 2018: the Vicat group (Euronext Paris: FR0000031775 - VCT) today reported its nine-month 2018 sales, which totalled €1,947 million, up +7.6% at constant exchange rates. On a reported basis, the Group's sales rose +1.4% compared with the same period of 2017.

In the third quarter, sales grew +4.0% at constant exchange rates and contracted -1.1% on a reported basis.

Consolidated sales by business segment:

VICAT INVESTOR

CONTACTS:

STÉPHANE BISSEUIL TEL. [phone]

VICAT PRESS

CONTACTS:

ALIZEE REMAUD

TEL. [phone]

HEAD OFFICE:

TOUR MANHATTAN

6 PLACE DE L'IRIS

F-92095 PARIS - LA DEFENSE CEDEX

TEL.: [phone]

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A FRENCH REGISTERED COMPANY WITH SHARE

CAPITAL OF €179,600,000

EU VAT IDENTIFICATION NUMBER: FR 92 - 057 505 539

(€ million)	Nine-months 2018	Nine-months 2017	Change (%)
			Reported	At constant scope and exchange rates*
Cement Concrete & Aggregates Other Products & Services	948 735 263	932 739 249	+1.8% -0.6% +5.7%	+10.2% +4.1% +8.2%
Total	1,947	1,921	+1.4%	+7.6%

Commenting on these figures, the Group's Chairman and CEO said: "Over the first nine months of the year, Vicat recorded solid sales growth at constant scope and exchange rates. The Group achieved healthy increases over the period in all our territories, except Switzerland and Egypt. In the third quarter, business trends held up well despite a downturn in the economic and industry environment in Turkey, which was hit by the sharp depreciation in its currency. The acquisition of Ciplan in Brazil, a country with tremendous potential, reinforces Vicat's strategy of sustainable growth, leveraging its high-quality assets and strong regional positions to generate cash flow."

RCS NANTERRE

* The alternative performance measures (APMs), such as "at constant scope and exchange rates", "operational sales", "EBITDA", "net debt", "gearing" and "leverage" are defined in the appendix to this press release.

The Vicat Group's consolidated sales in the first nine months of 2018 came to €1,947 million, up +1.4% on a reported basis and up +7.6% at constant scope and exchange rates compared with the same period of 2017.

At constant scope and exchange rates, growth in operational sales by business was as follows:

•  +8.4% in Cement

•  +4.2% in Concrete & Aggregates

•  +8.1% in Other Products and Services

In the third quarter of 2018, consolidated sales totalled €666 million, up +4.0% at constant exchange rates, but down -1.1% on a reported basis compared with the same period of 2017.

Third-quarter operational sales advanced +4.0% at constant exchange rates and declined -1.1% on a reported basis compared with the same period of 2017.

By business, trends in operational sales at constant scope and exchange rates in the last quarter were as follows:

•  +5.8% in Cement

•  +1.9% in Concrete & Aggregates

•  +0.5% in Other Products and Services

In this press release, and unless indicated otherwise, all changes are calculated based on the first nine months of 2018 by comparison with the first nine months of 2017 and are stated at constant scope and exchange rates.

1. Analysis of consolidated sales in the nine months to 30 September 2018 by geographical region

1.1. France

(€ million)	Nine-months 2018	Nine-months 2017	Change (%)
			Reported	At constant scope
Consolidated sales	709	665	+6.6%	+6.4%

The growth in consolidated sales in France in the nine months to 30 September 2018 reflects the improvement in economic and industry conditions. During the third quarter, consolidated sales came to €236 million, up +6.9% both on a reported basis and at constant scope.

•  In the Cement business, operational sales rose +3.8% over the nine-month period (consolidated sales up +6.7%). Volumes sold rose by over +3% in the period despite a sharp fall in export sales. Selling prices edged up in the domestic market and firmed up more significantly in export markets.

  • o Operational sales recorded by the Cement business in the third quarter rose +4.5% supported by volume growth of close to +3% in the third quarter. Selling prices in the domestic market rose again, and more substantially, compared with the third quarter of 2017.

•  The operational and consolidated sales recorded by the Concrete & Aggregates business grew respectively +3.1% and +3.2% at constant scope. On a reported basis, they rose +3.4% and +3.5%. This performance was underpinned by a rise in average Concrete selling prices, which offset the decline of over -2% in volumes. Aggregates volumes rose close to +3% while prices firmed up.

  • o Sales recorded by the business in the third quarter, with operational sales up +5.5%. Third-quarter volumes were stable in Concrete and posted an increase of over +3% in Aggregates. Selling prices rose significantly in Concrete and in Aggregates.

•  In the Other Products & Services business, operational sales advanced +11.7% (+13.6% on a consolidated basis). In the third quarter, operational sales rose +10.6%.

1.2. Europe (excluding France)

(€ million)	Nine-months 2018	Nine-months 2017	Change (%)
			Reported	At constant scope and exchange rates
Consolidated sales	292	315	-7.1%	-3.0%

Nine-month 2018 sales in Europe excluding France were down compared with the same period of 2017 due to a decrease in business activity in Switzerland. In Italy, sales increased in a more favourable environment especially towards the end of the period. During the third quarter, sales came to €108 million, down -8.1% at constant exchange rates (-8.3% on a reported basis).

In Switzerland, the Group's consolidated sales over the first nine months of 2018 declined -3.4% at constant perimeter and exchange rates (-7.7% on a reported basis). This contraction, which affected Cement, Concrete and Aggregates, was attributable to an unfavourable base of comparison and to a slowdown in the major construction projects in the regions in which the Group is active, which was even more pronounced in third quarter. Consolidated sales fell -9.3% at constant exchange rates (-9.6% on a reported basis).

•  In the Cement business, operational sales declined -5.9% at constant exchange rates (-11.3% on a reported basis) in the first nine months of the year as a result of the -10% dip in volumes as selling prices firmed up very slightly.

  • o In the third quarter, operational sales recorded by the business fell back -5.4% at constant exchange rates and dropped -6.8% on a reported basis.. Volumes decreased by more than -8% during the period. Lastly, selling prices were very slightly lower than in the third quarter of 2017.

•  In the Concrete & Aggregates business, operational sales dropped -5.8% at constant exchange rates (-8.2% on a reported basis) in the first nine months of 2018. Consolidated sales slid -6.5% lower at constant scope and exchange rates (-8.7% on a reported basis). The key factors behind this fall were declines in Concrete volumes of close to -11% and of over -10% in Aggregates, as certain road construction and civil engineering projects came to an end. Despite this backdrop, selling prices moved higher in both Concrete and Aggregates.

  • o In the third quarter of 2018, operational sales fell -4.0% at constant exchange rates and -5.5% on a reported basis. Consolidated sales fell -6.4% at constant exchange rates (-4.8% on a reported basis). Volumes declined -11% in Concrete and close to -7% in Aggregates during the third quarter. Lastly, selling prices were stable in Aggregates and posted a tangible increase in Concrete.

•  The Precast business posted growth in its operational and consolidated sales of +1.4% at constant scope and exchange rates (-4.4% on a reported basis).

  • o In the third quarter, operational sales decreased by -15.0% at constant exchange rates and -16.5% on a reported basis. The key factors at work here were a decline in selling prices on mass-market products, which was partially offset by further deliveries to the rail sector.

In Italy, consolidated sales advanced +10.9% over the nine-month period as a result of strong business growth in the third quarter. Volume growth of close to +5% was backed up by firmer selling prices.

•  Consolidated sales in Italy soared +41.7% higher in the third quarter owing to growth of over +25% in volumes delivered in the period. Selling prices moved well above their level in the third quarter of 2017.

1.3. United States

(€ million)	Nine-months 2018	Nine-months 2017	Change (%)
			Reported	At constant scope and exchange rates
Consolidated sales	307	297	+3.4%	+11.0%

Business in the United States maintained its growth momentum in a still upbeat macroeconomic environment providing support for the construction sector. As a result, the Group's consolidated sales rose +11.0% at constant scope and exchange rates

(+3.4% on a reported basis).

In the third quarter, the Group's business trends remained firm. Its consolidated sales totalled €113 million, up +7.4% at constant scope and exchange rates (+7.9% on a reported basis).

•  In the Cement business, operational sales grew +11.9% at constant scope and exchange rates (+4.2% on a reported basis) in the first nine months of the year. Volumes continued to grow (by over +6%) on the back of the very brisk trends in the South-East region where weather conditions were far more favourable than in 2017. Selling prices rose in both zones as a result of the full impact of the hikes introduced in 2017 and those announced during the first half of 2018.

  • o Operational sales recorded by the business in the third quarter rose +10.6% at constant exchange rates and +11.1% on a reported basis. Volumes grew by close to +5%, with a contraction in California in the aftermath of the vast fires of early August 2018 offset by strong growth in the South-East region, reflecting far more favourable weather conditions than in 2017. Selling prices continued to move significantly higher in both regions during the quarter.