Vicat

v v v v v v v v v v v
VVVVVVVVVVV
7 7 7 7 7 7 7 7 7 7 7 7
v v v v
v v v v v v v v v v v v v
**

2015 sales: €2.46 billion

Sales growth of +1.5% on a reported basis in 2015
Top-line growth in the United States and Asia
Lower sales in West Africa and the Middle East
Stable revenues in the fourth quarter, marked by renewed growth in France

Paris La Défense, 4 February 2016: The Vicat group (Euronext Paris: FR0000031775 – VCT) has today reported full-year 2015 sales of €2,458 million, up +1.5% compared with the previous year. At constant scope and exchange rates, the Group's sales fell by -4.4% compared with 2014. In the fourth quarter, sales were stable (-0.1%) on a reported basis and slightly down (-1.6%) at constant scope and exchange rates.

Consolidated sales by business segment:

			Change (%)
(€ million)	Full-year 2015	Full-year 2014	Reported	At constant scope and exchange rates
Cement	1,256	1,261	-0.4%	-5.9%
Concrete &	892	860	+3.7%	-2.8%
Aggregates Other Products & Services	310	301	+2.9%	-2.6%
Total	2,458	2,423	+1.5%	-4.4%

Commenting on these figures, the Group's Chairman and CEO said: "The sales growth achieved by the Vicat group in 2015 again reflected a contrasting picture from one region to another. Business momentum in the United States and Asia helped to offset the impact of a more challenging macroeconomic and competitive environment in West Africa and the Middle East, as well as in Europe.

Notably, the Group's activity returned to growth in France in the fourth quarter, helped by a positive weather effect and a stabilising industry environment.

Against this backdrop, Vicat remains focused on its objectives of maximising its cash flow and reducing its debt, while leveraging the efficiency of its manufacturing facilities, its geographical diversification and its strong positions in its local markets."

VICAT INVESTOR CONTACTS:

STÉPHANE BISSEUIL TEL.: +33 (0)1 58 86 86 13 [email protected]

VICAT PRESS

CONTACTS:

MARION GUERIN TEL.: +33 (0)1 58 86 86 26 [email protected]

HEAD 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 EEC IDENTIFICATION: FR 92 - 057 505 539 RCS NANTERRE

Full-year 2015 consolidated sales came to €2,458 million, representing an increase of +1.5% and a decline of -4.4% at constant scope and exchange rates compared with 2014.

A breakdown of operational sales by segment showed:

growth in the Cement business of +0.8% on a reported basis (down -4.8% at constant scope and exchange rates);
an increase in the Concrete & Aggregates business of +3.6% on a reported basis (down -2.8% at constant scope and exchange rates);
stability (+0.4%) in Other Products & Services on a reported basis (down -3.6% at constant scope and exchange rates).

As a result, an analysis of operational sales by the Group's various businesses shows a very small decrease in the contribution from Cement, which stood at 53.2% of operational sales, down from 53.7% in full-year 2014. The Concrete & Aggregates business accounted for 32.5% of operational sales, compared with 31.9% in 2014. Lastly, Other Products & Services now accounts for 14.3% of operational sales in 2015, compared with 14.4% in 2014.

Fourth-quarter 2015 consolidated sales came to €575 million, stable (-0.1%) compared with the same period of 2014, and slightly down (-1.6%) at constant scope and exchange rates.

Operational sales advanced in the fourth quarter by +1.1% on a reported basis and was stable (-0.4%) at constant scope and exchange rates. This overall trend reflected:

a contraction in the Cement business by -4.7% on a reported basis (-4.6% at constant scope and exchange rates);
a healthy increase of +9.2% in the Concrete & Aggregates business (+5.3% at constant scope and exchange rates);
a +5.1% increase in the Other Products & Services business (+3.1% at constant scope and exchange rates).

In this press release, and unless indicated otherwise, all the changes are stated for 2015 on an annual basis (2015/2014), and at constant scope and exchange rates.

1. Geographical breakdown of consolidated full-year 2015 sales

1.1. France

			Change (%)
(€ million)	Full-year 2015	Full-year 2014	Reported	At constant scope
Consolidated sales	777	831	-6.5%	-6.5%

Consolidated sales in France fell -6.5% at constant scope and exchange rates to €777 million. Consolidated sales returned to brisk growth of +4.0% in the fourth quarter, benefiting from supportive weather conditions, but also confirming the gradual stabilisation in the market at a historically low level.

In the Cement business, operational sales declined -4.8% over the period as a whole (consolidated sales down -3.1%). This decline was chiefly attributable to a volume contraction of less than -2% and a slight decrease in average selling prices.
o Operational sales recorded by the business grew by +7.2% in the fourth quarter (consolidated sales rose by +9.6%). Following declines in operational sales of -14.1% in the first quarter, -7.5% in the second quarter and -3.3% in the third quarter, the growth recorded in the final quarter confirms the change in the expected turnaround in this market. This growth also benefited from favourable weather conditions, especially in the regions in which Vicat operates. The firming-up in business trends in the final quarter was driven by volume growth of close to +13% compared with the previous year. Conversely, average selling prices recorded a steeper decline in the final quarter as a result of adjusted end-of-year rebates linked to the strong volume growth during this period and an unfavourable geographical and product mix.
In the Concrete & Aggregates business, operational sales fell back -11.3% (consolidated sales down -11.5%) over the full year. The volume contraction of just under -10% in Concrete and slightly over -9% in Aggregates during the period reflected the impact of weak demand in a challenging macroeconomic environment, as well as far less favourable weather conditions than in 2014 over the first part of the year. Selling prices posted a slight increase in Aggregates, but declined slightly in Concrete.
o After the very steep operational sales contraction in the first three quarters, the trend of a progressive stabilization has been confirmed in the

fourth quarter with a limited decrease of -1.0%. In this final quarter, volumes delivered were stable (-0.3%) in Concrete and increased by close to +3% in Aggregates. Average selling prices declined in Concrete and posted a healthy increase in Aggregates.

In the Other Products & Services business, operational sales fell -2.2% over the full year (up +1.1% on a consolidated basis). The fourth quarter confirmed the firmer trend seen in the third quarter, with operational sales advancing by +8.3% (growth of +9.3% on a consolidated basis).

1.2. Europe (excluding France)

				Change (%)
(€ million)	Full-year 2015	Full-year 2014	Reported	At constant scope and exchange rates
Consolidated sales	425	418	+1.7%	-10.2%

Full-year 2015 sales recorded in Europe excluding France rose by +1.7% on a reported basis, but fell -10.2% at constant scope and exchange rates.

In the fourth quarter, sales dropped -3.9%, with a decline of -12.8% at constant scope and exchange rates.

In Switzerland, the Group's consolidated sales grew by +3.1% in 2015. At constant scope and exchange rates, they declined by -9.4%. This contraction reflected an unfavourable base of comparison created by the exceptionally mild weather conditions of the first quarter of 2014, the end of a number of major projects in the second half of 2014 and an unfavourable pricing effect.

In the fourth quarter, sales declined by -3.1% on a reported basis and by -12.5% at constant scope and exchange rates.

In the Cement business, operational sales rose by +1.1%, but declined -11.2% at constant scope and exchange rates. Consolidated sales moved up +1.8%, but fell back -10.5% at constant scope and exchange rates. Volumes declined by close to -7% over the period by comparison with the very brisk trends recorded in 2014. Average selling prices dropped significantly owing to fiercer competition and a contraction in the construction market.
o Fourth-quarter operational sales dropped back -8.3% on a reported basis and by -17.1% at constant scope and exchange rates (consolidated sales down -23.0%). This contraction was attributable to a volume decline of -12% and a significant fall in prices in the third quarter.
In the Concrete & Aggregates business, operational sales picked up by +2.6%, but they declined -9.8% at constant scope and exchange rates. Consolidated sales advanced +3.0%, but fell -9.5% at constant scope and exchange rates. After a record performance in 2014, the top-line contraction in 2015 was the result of a dip in volumes of over -11% in Concrete and -7% in Aggregates, offset partly by a very slight improvement in average selling prices.
o In this business, the trend of weaker performance than in the previous year continued in the fourth quarter, with operational sales down -6.8% at constant scope and exchange rates (consolidated sales down -5.7%). This decline reflects a significant contraction in concrete volumes (of close to -13%) and an increase in aggregates (over +6%). Selling prices posted a significant decline in the fourth quarter both in Concrete and Aggregates.
Consolidated sales recorded by the Precast business fell -8.4% at constant scope and exchange rates owing chiefly to a drop in sales of rail sleepers following completion of the Gotthard tunnel in 2014. Another contributing factor was the later start-up of track replacement and modernisation work.
o The fall in consolidated sales in the fourth quarter was significant (-11.2%) owing to a decline in volumes and slightly lower selling prices amid fiercer competition.

In Italy, consolidated sales dropped -27.5%. This decline reflected a steep contraction in volumes sold (by more than -25%) in a domestic market still very badly affected by the macroeconomic and industry environment and by the Group's selective business policy intended to keep a tight rein on its credit risk. Against this backdrop, average selling prices dipped slightly.

Fourth-quarter sales contracted by -19.9%, with volumes declining by more than -21%, representing a slightly slower pace than in the first three quarters of the year. Selling prices were almost stable.

1.3. United States

				Change (%)
(€ million)	Full-year 2015	Full-year 2014	Reported	At constant scope and exchange rates
Consolidated sales	342	247	+38.7%	+15.9%

Business in the United States again recorded strong growth in a firm macroeconomic environment that was supportive for the construction sector. As a result, the Group's consolidated sales soared +38.7% and +15.9% at constant scope and exchange rates.

In the fourth quarter, the Group recorded another significant increase in its consolidated sales in the region (up +14.5% at constant scope and exchange rates).

In the Cement business, full-year operational sales grew by +23.6% at constant scope and exchange rates (up +48.0% on a reported basis). Consolidated sales moved up +24.7% at constant scope and exchange rates (up +49.4% on a reported basis). This performance was driven by volume growth of close to +15%, with very strong momentum in the south-eastern US and price hikes in both areas, and still more marked in California.
o Top-line expansion continued in the fourth quarter, with operational sales growing by +20.8% at constant scope and exchange rates (+26.8% on a consolidated basis). Volumes delivered continued to expand (by close to +16%), with a more brisk increase in the South-East owing to the strength of demand in Atlanta, where the Group has very strong positions, than in California. Selling prices continued to move higher in both regions.
In the Concrete business, consolidated sales advanced by +12.2% in 2015 at constant scope and exchange rates (up +34.3% on a reported basis) on the back of healthy volume growth (over +7%), especially in California. Average selling prices also rose in both regions.
o In this business, too, fourth-quarter performance reflected the strength of the Group's business in the region, with consolidated sales advancing by +9.5% at constant scope and exchange rates (+24.9% on a reported basis). Volumes increased by over +3% across the region, with solid growth in California and a stable performance in the South-East region given the adverse weather conditions. Average selling prices continued to rise, with the increase slightly more marked in California than in the South-East.

1.4. Asia (Turkey, India and Kazakhstan)

			Change (%)
(€ million)	Full-year 2015	Full-year 2014	Reported	At constant scope and exchange rates
Consolidated sales	568	530	+7.1%	+3.1%

Sales across Asia as a whole came to €568 million, up +7.1% on a reported basis and up +3.1% at constant scope and exchange rates.

The Group's performance in the region improved further in the fourth quarter, with consolidated sales advancing by +8.5% at constant scope and exchange rates (down -0.7% on a reported basis).

In Turkey, full-year sales came to €234 million, up +6.4% at constant scope and exchange rates (growth of +2.4% on a reported basis).

Business growth improved again in the fourth quarter, in line with the market, with consolidated sales growing by +19.3% at constant scope and exchange rates (up +6.7% on a reported basis).

In the Cement business, the Group recorded an increase in its full-year operational sales of +3.5% at constant scope and exchange rates (up +0.3% on a consolidated basis). This performance was driven by growth in volumes of close to +5% over the full year, in spite of the severe disruption to the first quarter caused by poor weather conditions. Growth was firmer in the markets of Bastas, especially Ankara, than in those of Konya. Selling prices posted a very small drop, as the increase recorded in the Bastas region was offset by the fall in the Konya region.
o In the fourth quarter, the Group recorded healthy top-line growth, with operational sales growing by +10.0% (consolidated sales up +3.2%) at constant scope and exchange rates. This further increase in sales was underpinned by volume growth of over +10%, fully offsetting the slight erosion in average selling prices.
The operational sales recorded by the Concrete & Aggregates business rose +17.1% at constant scope and exchange rates (up +17.8% on a consolidated basis). This healthy business growth was underpinned by an increase of close to +22% in Concrete volumes and +15% in Aggregates, amid slightly weaker pricing conditions.

o In the fourth quarter, the Group's business improved sharply, with its operational sales soaring +47.6% (+51.0% on a consolidated basis) at constant scope and exchange rates. Driving this growth was a significant volume increase of over +49% in Concrete and close to +28% in Aggregates, amid very slightly negative pricing conditions.

In India, the Group posted consolidated sales of €268 million in 2015, up +16.5% on a reported basis and up +2.3% at constant scope and exchange rates. The steep hike of close to +16% in average selling prices over the period helped to make up for a contraction in Cement volumes of close to -11%, i.e. over 4 million tonnes sold. It reflected the more selective business strategy implemented by the Group from the second half of 2014 across all its operations to reap the full benefit of the firm recovery in selling prices.

o In the fourth quarter, consolidated sales rose by +3.7% at constant scope and exchange rates. The Group posted renewed growth in its sales volumes of over +2% in the period. Average selling prices edged slightly higher.

Kazakhstan recorded a -5.4% decrease in its consolidated sales at constant scope and exchange rates (down -8.3% on a reported basis) to €65 million. Volumes rose by more than +5%, with more than 1.3 million tonnes of cement delivered over the full year. This further volume growth was not sufficient to offset the steep fall in selling prices initiated at the beginning of the year by a fiercer competition as a result of imports from Russia.

Fourth-quarter sales declined by -20.3% at constant scope and exchange rates. This fall was attributable to the marked drop in prices and also a volume contraction of close to -14% owing to highly unfavourable weather conditions in the final quarter and a tighter market environment.

1.5. Africa and Middle East

			Change (%)
(€ million)	Full-year 2015	Full-year 2014	Reporte d	At constant scope and exchange rates
Consolidated sales	346	397	-12.9%	-16.6%

In the Africa and Middle East region, sales came to €346 million, down -12.9% on a reported basis and down -16.6% at constant scope and exchange rates.

In the fourth quarter, the Group posted a significant contraction in its consolidated sales across the region of -24.6% at constant scope and exchange rates (down - 23.5% on a reported basis) owing to a steep fall in its business in Egypt.

In Egypt, full-year sales came to €113 million, down -18.5% at constant scope and exchange rates (down -10.3% on a reported basis). This performance reflected a marked decline in selling prices from the second quarter onwards, together with a volume contraction of over -7% over the period as a whole.

o In the fourth quarter, the Group recorded a strong decline in its sales of -38.1% at constant scope and exchange rates (down -37.3% on a reported basis). The volume contraction was particularly significant in the quarter (around -26%) owing to disruption related to refurbishment work on the Suez Canal tunnel, the main crossing point to Cairo and the west of the country. These projects were completed beginning of 2016, and normal traffic resumed. Lastly, average selling prices recorded another very significant fall over the quarter amid persistently fierce and volatile competition.
In West Africa, sales totalled €232 million, down -15.6% at constant scope and exchange rates (down -14.2% on a reported basis) from a very high level of activity in 2014. This decline mainly reflected the impact on the competitive landscape caused by a newcomer in Senegal during early 2015, which resulted in a contraction in Cement volumes sold of close to -12%. Average selling prices edged slightly lower over the full year, due to the competitive environment.
o In the fourth quarter, sales drew down -17.2% at constant scope and exchange rates. This contraction was caused by a volume decline in cement of just over -10% and a slightly larger dip in average selling prices than in the first three quarters of 2015.

2. Breakdown of full-year 2015 sales by business

2.1. Cement

	Full-year	Full-year		Change (%)
(€ million)	2015	2014	Reported	At constant scope and exchange rates
Volume
(thousands of Operational	19,792	20,530	-3.6%
sales Inter-segment	1,495	1,483	+0.8%	-4.8%
eliminations Consolidated	(239)	(221)
sales	1,256	1,261	-0.4%	-5.9%

Consolidated sales in the Cement business were stable (down -0.4%), but declined by -5.9% at constant scope and exchange rates. Volumes moved -3.6% lower over the period.

In the fourth quarter, consolidated sales declined by -7.8% or -7.0% at constant scope and exchange rates. Cement volumes were virtually stable (-0.9%) over the final quarter.

2.2. Concrete & Aggregates

			Change (%)
(€ million)	Full-year 2015	Full-year 2014	Reported	At constant scope and exchange rates
Concrete volumes (thousands of m3 )	8,535	8,273	+3.2%
Aggregates volumes (thousands of tonnes)	20,945	21,215	-1.3%
Operational sales	914	882	+3.6%	-2.8%
Inter-segment eliminations	(22)	(22)
Consolidated sales	892	860	+3.7%	-2.8%

Consolidated sales in the Concrete & Aggregates business rose slightly (+3.7%), but dipped -2.8% at constant scope and exchange rates.

Concrete volumes grew by +3.2% over the period, but Aggregates volumes declined by -1.3%.

In the fourth quarter, consolidated sales advanced by +9.6% or +5.6% at constant scope and exchange rates. Volumes moved up +13.5% in Concrete and rose by +10.2% in Aggregates.

2.3. Other Products & Services

			Change (%)
(€ million)	Full-year 2015	Full-year 2014	Report ed	At constant scope and exchange rates

Operational sales	400	399	+0.4%	-3.6%
Inter-segment eliminations	(90)	(98)
Consolidated sales	310	301	+2.9%	-2.6%

Consolidated sales in the Other Products & Services business climbed +2.9%, but slipped -2.6% lower at constant scope and exchange rates. In the fourth quarter, consolidated sales advanced by +4.8% and were stable (+0.7%) at constant scope and exchange rates.

3. Elements to appreciate the Group's profitability and balance sheet position in 2015

The Group has stated that the level of EBITDA generated in 2015 on a reported basis will reflect the benefit of an improved operating performance in the United States and India by comparison with 2014. These positive factors should offset the negative impact on EBITDA caused by the top-line contraction in France, West Africa and the Middle East and, lastly, Kazakhstan.

Taking all these factors into account, the EBITDA on a reported basis generated by the Group in 2015 should be in line with that posted by the Group in 2014.

Due to investments in Egypt and in Turkey, total amount of capital expenditure is expected to increase slightly in 2015 on the level recorded in 2014, while the Group's net debt at 31 December 2015 should show another slight reduction on its level at 31 December 2014.

4. Conference call

To accompany the publication of its full-year 2015 sales, the Vicat group is organising a conference call that will be held in English on Friday, 5 February 2016 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:	+33 (0)1 76 77 22 20
United Kingdom:	+44 (0)20 3427 1917
United States:	+1 212 444 0895

To listen to a playback of the conference call, which will be available until 7pm on 12 February 2016, dial one of the following numbers:

France:	+33 (0) 1 74 20 28 00
United Kingdom:	+44 (0)20 3427 0598
United States:	+1 347 366 9565
Access code:	6306463#
	-----------------------------------------------------------------------------

Investor relations contact:

Stéphane Bisseuil: Tel.: +33 (0) 1 58 86 86 13 [email protected]

Press contacts: Marion Guérin: +33 1 58 86 86 26 [email protected]

ABOUT VICAT

The Vicat Group has close to 7,900 employees working in three core divisions, Cement, Concrete & Aggregates and Other Products & Services, which generated consolidated sales of €2,458 million in 2015.

The Group operates in eleven countries: France, Switzerland, Italy, the United States, Turkey, Egypt, Senegal, Mali, Mauritania, Kazakhstan and India. Nearly 68% 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.

Breakdown of sales to 31 December 2015 by business & geographical region

Further information about Vicat is available from its website (www.vicat.fr ).

		Concrete &	Other Products	Inter-sector	Consolidated
	Cement	Aggregates	& Services	eliminations	sales
France	342	374	229	(168)	777
Europe (excluding France)	169	175	134	(54)	425
United States	169	234	-	(61)	342
Asia	492	107	37	(68)	568
Africa and Middle East	322	24		(0)	346
Operational sales	1,495	914	400	(351)	2,458
Inter-sector	(239)	(22)	(91)	351
eliminations
Consolidated sales	1,256	892	310	-	2,458

AI Terminal

1749_iss_2016-02-04_faa48d00-a43c-404a-9193-898d59b88b0a.pdf