Vicat

Quarterly Report • Apr 29, 2019

New geographical information and impacts of IFRS 16

Paris La Défense, 29 April 2019:

New geographical segmentation: following the acquisition of Ciplan in Brazil, the Group has adjusted the geographical structure of its internal reporting used by Senior Management to monitor and measure the Group's economic performance. Vicat will report its figures, as of the publication of the first-quarter 2019 sales, based on the following six regions:

• France
• Europe (excluding France), combining Switzerland and Italy
• Americas, made up of the United States and Brazil
• Asia, encompassing India and Kazakhstan
• Mediterranean, consisting of Turkey and Egypt
• Africa, comprising Senegal, Mali and Mauritania

First-time adoption of IFRS 16: the Group has adopted the full retrospective approach at the transition date. The main impacts of the first application of IFRS16 on equity as at January 1, 2018 and on the 2018 annual and interim consolidated financial statements are presented below.

In order to compare the Group's future performance with that of 2018 in each of these new regions, the 2018 quarterly sales, half-year and full-year results are presented below on a pro forma basis (excluding Brazil), after taking into account the application of IFRS16.

VICAT INVESTOR CONTACTS: STÉPHANE BISSEUIL TEL. +33 (0)1 58 86 86 13 stephane.bisseuil@vicat.fr

PRESS CONTACT VICAT:

ALIZEE REMAUD TEL. +33 (0)1 58 86 86 26 alizee.remaud@tbwacorporate.com

HEAD OFFICE:

TOUR MANHATTAN 6 PLACE DE L'IRIS F-92095 PARIS - LA DÉFENSE 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 EU VAT IDENTIFICATION NUMBER: FR 92 - 057 505 539 RCS NANTERRE

1. First-time adoption of IFRS 16

1.1 Consolidated statement of financial position: reconciliation from reported to restated figures at 30 June and 31 December 2018

				Consolidated statement of financial position
ASSETS	31/12/2017 restated	Restatements IFRS 16	31/12/2017 published	30/06/2018 restated	Restatements IFRS 16	30/06/2018 published	31/12/2018 restated	Restatements IFRS 16	31/12/2018 published
(in thousands of euros) NON CURRENT ASSETS
Goodwill	1 006 987		1 006 987	1 005 213		1 005 213	1 006 753		1 006 753
Other intangible assets	117 959		117 959	112 950		112 950	118 316		118 316
Rights of use relating to leases	200 725	200 725	0	202 542	202 542	0	223 792	223 792	0
Property, plant and equipment	1 837 759		1 837 759	1 800 464		1 800 464	1 806 040		1 806 040
Investment properties	16 240		16 240	15 735		15 735	15 491		15 491
Investments in associated companies	40 696		40 696	42 358		42 358	53 044		53 044
Deferred tax assets	98 603	2 970	95 633	119 328	3 340	115 988	93 394	3 848	89 546
Receivables and other non current financial assets	77 557		77 557	108 424		108 424	152 831		152 831
Total non current assets	3 396 526	203 695	3 192 831	3 407 014	205 882	3 201 132	3 469 661	227 640	3 242 021
CURRENT ASSETS
Inventories and work in progress	351 303		351 303	341 166		341 166	385 133		385 133
Trade and other accounts	408 092		408 092	493 708		493 708	407 085		407 085
Current tax assets	45 001		45 001	49 555		49 555	42 215		42 215
Other receivables	174 251		174 251	194 636	(43)	194 679	142 745	(59)	142 804
Cash and cash equivalents	265 364		265 364	278 227		278 227	314 633		314 633
Total current assets	1 244 011	0	1 244 011	1 357 292	(43)	1 357 335	1 291 811	(59)	1 291 870
TOTAL ASSETS	4 640 537	203 695	4 436 842	4 764 306	205 839	4 558 467	4 761 472	227 581	4 533 891
LIABILITIES	31/12/2017	Restatements	31/12/2017	30/06/2018	Restatements	30/06/2018	31/12/2018	Restatements	31/12/2018
(in thousands of euros)	restated	IFRS 16	published	restated	IFRS 16	published	restated	IFRS 16	published
SHAREHOLDERS' EQUITY
Share capital	179 600		179 600	179 600		179 600	179 600		179 600
Additional paid in capital	11 207		11 207	11 207		11 207	11 207		11 207
Consolidated reserves	1 976 285	(9 028)	1 985 313	1 922 354	(10 022)	1 932 376	2 068 460	(11 671)	2 080 131
Shareholders' equity	2 167 092	(9 028)	2 176 120	2 113 161	(10 022)	2 123 183	2 259 267	(11 671)	2 270 938
Minority interests	233 369	(73)	233 442	215 428	(37)	215 465	221 474	(26)	221 500
Shareholders' equity and minority interests	2 400 461	(9 101)	2 409 562	2 328 589	(10 059)	2 338 648	2 480 741	(11 697)	2 492 438
NON CURRENT LIABILITIES
Provisions for pensions and other post employment benefits	115 084		115 084	114 271		114 271	118 344		118 344
Other provisions	70 703		70 703	107 685		107 685	70 757		70 757
Financial debts and put options	928 403		928 403	1 042 986	(163)	1 043 149	882 203	(141)	882 344
Lease liabilities	166 596	166 596	0	168 532	168 532	0	193 306	193 306	0
Deferred tax liabilities	182 291	(150)	182 441	166 571	(117)	166 688	181 392	(210)	181 602
Other non current liabilities	1 398		1 398	1 292		1 292	5 365	9 0	5 275
Total non current liabilities	1 464 475	166 446	1 298 029	1 601 337	168 252	1 433 085	1 451 367	193 045	1 258 322
CURRENT LIABILITIES
Provisions	8 738		8 738	8 175		8 175	9 604		9 604
Financial debts and put options at less than one year	138 499		138 499	149 935	(45)	149 980	153 516	(45)	153 561
Lease liabilities at less than one year	46 350	46 350	0	48 227	48 227	0	47 048	47 048	0
Trade and other accounts payable	328 450		328 450	337 336	(536)	337 872	358 753	(441)	359 194
Current taxes payable	41 188		41 188	37 800		37 800	38 273		38 273
Other liabilities	212 376		212 376	252 907		252 907	222 170	(329)	222 499
Total current liabilities	775 601	46 350	729 251	834 380	47 646	786 734	829 364	46 233	783 131
Total liabilities	2 240 076	212 796	2 027 280	2 435 717	215 898	2 219 819	2 280 731	239 278	2 041 453
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	4 640 537	203 695	4 436 842	4 764 306	205 839	4 558 467	4 761 472	227 581	4 533 891

1.2 Consolidated income statement: reconciliation from reported to restated figures for H1 2018 and FY 2018

		Consolidated income statement
(in thousands of euros)	30/06/2018 restated	Restatements IFRS 16	30/06/2018 published	31/12/2018 restated	Restatements IFRS 16	31/12/2018 published
Sales	1 281 261		1 281 261	2 582 465		2 582 465
Goods and services purchased	(834 071)	27 565	(861 636)	(1 644 858)		57 802 (1 702 660)
Added value	447 190	27 565	419 625	937 607	57 802	879 805
Personnel costs	(213 458)		(213 458)	(428 963)		(428 963)
Taxes	(34 508)		(34 508)	(59 431)		(59 431)
Gross operating income	199 224	27 565	171 659	449 213	57 802	391 411
Depreciation, amortization and provisions	(117 220)	(24 354)	(92 866)	(236 075)	(51 981)	(184 094)
Other income and expenses	19 650		19 650	35 698		35 698
Operating income	101 654	3 211	98 443	248 836	5 821	243 015
Cost of net financial debt	(15 177)	(4 164)	(11 013)	(29 359)	(8 772)	(20 587)
Other financial income	7 091		7 091	20 024		20 024
Other financial expenses	(7 814)		(7 814)	(18 708)		(18 708)
Net financial income (expense)	(15 900)	(4 164)	(11 736)	(28 043)	(8 772)	(19 271)
Earnings from associated companies	2 070		2 070	3 737		3 737
Profit (loss) before tax	87 824	(953)	88 777	224 530	(2 951)	227 481
Income tax	(26 739)	243	(26 982)	(65 867)	790	(66 657)
Consolidated net income	61 085	(710)	61 795	158 663	(2 161)	160 824
Portion attributable to minority interests	2 949	3 7	2 912	9 781	5 2	9 729
Portion attributable to the Group	58 136	(747)	58 883	148 882	(2 213)	151 095
EBITDA	224 343	27 565	196 778	492 318	57 802	434 516
EBIT	106 996	3 212	103 784	255 059	5 821	249 238
Cash flow from operations	171 289	23 401	147 888	387 476	49 034	338 442
Earnings per share (in euros)
Basic and diluted Group share of net earnings per share	1,29	-0,02	1,31	3,32	-0,05	3,37

1.3 Statement of comprehensive income: reconciliation from reported to restated figures for H1 2018 and FY 2018

Consolidated statement of comprehensive income
(in thousands of euros)	30/06/2018 restated	Restatements IFRS 16	30/06/2018 published	31/12/2018 restated	Restatements IFRS 16	31/12/2018 published
Consolidated net income	61 085	(710)	61 795	158 663	(2 161)	160 824
Other comprehensive income items
Items not recycled to profit or loss :
Remeasurement of the net defined benefit liability	4 536		4 536	6 289		6 289
Tax on non-recycled items	(1 165)		(1 165)	(1 613)		(1 613)
Items recycled to profit or loss :
Net income from change in translation differences	(46 158)	(250)	(45 908)	(61 365)	(437)	(60 928)
Cash flow hedge instruments	(3 594)		(3 594)	759		759
Tax on recycled items	928		928	(197)		(197)
Other comprehensive income (after tax)	(45 453)	(250)	(45 203)	(56 127)	(437)	(55 690)
Total comprehensive income	15 632	(960)	16 592	102 536	(2 598)	105 134
Portion attributable to minority interests	(7 003)	3 5	(7 038)	(2 454)	4 6	(2 500)
Portion attributable to the Group	22 635	(995)	23 630	104 990	(2 644)	107 634

1.4 Statement of cash flow: reconciliation from reported to restated figures for H1 2018 and FY 2018

Consolidated statement of cash flow
(in thousands of euros)	30/06/2018 restated	Restatements IFRS 16	30/06/2018 published	31/12/2018 restated	Restatements IFRS 16	31/12/2018 published
Cash flows from operating activities
Consolidated net income	61 085	(710)	61 795	158 663	(2 161)	160 824
Earnings from associated companies	(2 070)		(2 070)	(3 737)		(3 737)
Dividends received from associated companies	1 346		1 346	2 492		2 492
Elimination of non cash and non operating items :	0			0
- depreciation, amortization and provisions	112 540	24 354	88 186	233 671	51 981	181 690
- deferred taxes	1 571	(243)	1 814	4 720	(790)	5 510
- net (gain) loss from disposal of assets	(3 454)		(3 454)	(8 582)		(8 582)
- unrealized fair value gains and losses	157		157	353		353
- other	114		114	(108)		(108)
Cash flows from operating activities	171 289	23 401	147 888	387 472	49 030	338 442
Change in working capital requirement	(61 082)		(61 082)	(5 394)		(5 394)
Net cash flows from operating activities	110 207	23 401	86 806	382 078	49 030	333 048
Cash flows from investing activities
Outflows linked to acquisitions of non-current assets :
- property, plant and equipment and intangible assets	(78 402)		(78 402)	(180 224)		(180 224)
- financial investments	(21 608)		(21 608)	(28 469)		(28 469)
Inflows linked to disposals of non-current assets :
- property, plant and equipment and intangible assets	4 529		4 529	14 049		14 049
- financial investments	4 983		4 983	3 939		3 939
Impact of changes in consolidation scope	(12 984)		(12 984)	(22 686)		(22 686)
Net cash flows from investing activities	(103 482)	0	(103 482)	(213 391)	0	(213 391)
Cash flows from financing activities
Dividends paids	(76 872)		(76 872)	(72 976)		(72 976)
Increases in capital	0			0
Proceeds from borrowings
Repayments of borrowings	126 976		126 976	114 838		114 838
	(47 464)	(23 401)	(24 063)	(226 824)	(49 030)	(177 794)
Repayments of lease liabilities	0		0	0		0
Acquisitions of treasury shares Disposals or allocations of treasury shares	(16 153) 17 658		(16 153) 17 658	(927) 68 876		(927) 68 876
Net cash flows from financing activities	4 145	(23 401)	27 546	(117 013)	(49 030)	(67 983)
Impact of changes in foreign exchange rates	(8 676)		(8 676)	(9 766)		(9 766)
Change in cah position	2 194	0	2 194	41 908	0	41 908
Net cash and cash equivalents - opening balance	220 058		220 058	220 058		220 058
Net cash and cash equivalents - closing balance	222 252		222 252	261 969		261 969

1.5 Statement of changes in consolidated equity: reconciliation from reported to restated figures at 30 June 2018

Statement of changes in consolidated equity
(in thousands of euros)	Capital	Additional paid in capital	Treasury shares	Consolidate d reserves	Translation reserves	Share holders' equity	Minority interests	Total share holders' equity and minority interests
At January 1, 2018 published	179 600	11 207	(60 714)	2 406 371	(360 344)	2 176 120	233 442	2 409 562
Restatements IFRS16 1/01/2018				(9 028)		(9 028)	(72)	(9 100)
At January 1, 2018 restated	179 600	11 207	(60 714)	2 397 343	(360 344)	2 167 092	233 370	2 400 462
Half-year consolidated net income				58 883		58 883	2 912	61 795
Restatements IFRS16 on the half-year consolidated net income				(747)		(747)	3 7	(710)
Other comprehensive income				(75)	(35 179)	(35 254)	(9 950)	(45 204)
Restatements IFRS16 on the other comprehensive income					(247)	(247)	(2)	(249)
Total comprehensive income				58 808	(35 179)	23 629	(7 038)	16 591
Restatements IFRS16 on the total comprehensive income				(747)	(247)	(994)	3 5	(959)
Total comprehensive income restated				58 061	(35 426)	22 635	(7 003)	15 632
Dividends paids				(66 375)		(66 375)	(6 696)	(73 071)
Net change in treasury shares			1 979	(352)		1 627		1 627
Changes in consolidation scope and additional acquisitions				(10 884)		(10 884)	(4 806)	(15 690)
Other changes				(934)		(934)	563	(371)
At June 30, 2018 published	179 600	11 207	(58 735)	2 386 634	(395 523)	2 123 183	215 465	2 338 648
Restatements IFRS16 at June 30, 2018				(9 775)	(247)	(10 022)	(37)	(10 059)
At June 30, 2018 restated	179 600	11 207	(58 735)	2 376 859	(395 770)	2 113 161	215 428	2 328 589

1.6 Statement of changes in consolidated equity: reconciliation from reported to restated figures at 31 December 2018

Statement of changes in consolidated equity
(in thousands of euros)	Capital	Additional paid in capital	Treasury shares	Consolidate d reserves	Translation reserves	Share holders' equity	Minority interests	Total share holders' equity and minority interests
At January 1, 2018 published	179 600	11 207	(60 714)	2 406 371	(360 344)	2 176 120	233 442	2 409 562
Restatements IFRS16 1/01/2018				(9 028)		(9 028)	(72)	(9 100)
At January 1, 2018 restated	179 600	11 207	(60 714)	2 397 343	(360 344)	2 167 092	233 370	2 400 462
Consolidated net income				151 095		151 095	9 729	160 824
Restatements IFRS16 on the consolidated net income				(2 212)		(2 212)	5 1	(2 161)
Other comprehensive income				(3 888)	(39 573)	(43 461)	(12 229)	(55 690)
Restatements IFRS16 on the other comprehensive income					(431)	(431)	(5)	(436)
Total comprehensive income				147 207	(39 573)	107 634	(2 500)	105 134
Restatements IFRS16 on the total comprehensive income				(2 212)	(431)	(2 643)	4 6	(2 597)
Total comprehensive income restated				144 995	(40 004)	104 991	(2 454)	102 537
Dividends paids				(66 180)		(66 180)	(6 765)	(72 945)
Net change in treasury shares			4 570	(3 397)		1 173		1 173
Changes in consolidation scope and additional acquisitions				(10 880)		(10 880)	(4 806)	(15 686)
Other changes				63 071		63 071	2 129	65 200
At December 31, 2018 published	179 600	11 207	(56 144)	2 536 192	(399 917)	2 270 938	221 500	2 492 438
Restatements IFRS16 at December 31, 2018				(11 240)	(431)	(11 671)	(26)	(11 697)
At December 31, 2018 restated	179 600	11 207	(56 144)	2 524 952	(400 348)	2 259 267	221 474	2 480 741

2. New geographical segmentation

2.1 Quarterly consolidated sales in 2018

In thousands of euros	Q1 2018	Q1 2017	% change	% change (const. scope and exch. rates)
France	208,481	195,954	+6.4%	+5.9%
Europe (excluding France)	73,688	80,388	-8.3%	-1.9%
Americas (excluding Brazil)	87,004	83,918	+3.7%	+19.7%
Asia	94,078	78,570	+19.7%	+33.3%
Mediterranean	49,019	52,084	-5.9%	+11.5%
Africa	60,508	60,261	+0.4%	+1.4%
Total	572,777	551,174	3.9%	+10.8%

In thousands of euros	Q2 2018	Q2 2017	% change	% change (const. scope and exch. rates)
France	264,336	248,376	+6.4%	+6.4%
Europe (excluding France)	110,469	116,279	-5.0%	+1.4%
Americas (excluding Brazil)	106,648	107,918	-1.2%	+7.6%
Asia	105,437	94,456	+11.6%	+26.1%
Mediterranean	60,297	73,006	-17.4%	+5.9%
Africa	61,296	56,473	+8.5%	+8.8%
Total	708,484	696,507	+1.7%	+8.6%

In thousands of euros	Q3 2018	Q3 2017	% change	% change (const. scope and exch. rates)
France	236,085	220,888	+6.9%	+6.9%
Europe (excluding France)	108,051	117,884	-8.3%	-9.9%
Americas (excluding Brazil)	112,909	104,673	+7.9%	+9.5%
Asia	106,389	97,276	+9.4%	+9.5%
Mediterranean	51,259	78,230	-34.5%	+9.1%
Africa	50,961	53,953	-5.5%	+6.2%
Total	665,654	672,903	-1.1%	+4.0%

In thousands of euros	Q4 2018	Q4 2017	% change	% change (const. scope and exch. rates)
France	241,054	225,201	+7.0%	+7.0%
Europe (excluding France)	97,968	95,524	+2.6%	-1.6%
Americas (excluding Brazil)	97,702	96,395	+1.4%	-2.6%
Asia	93,144	93,213	-0.1%	+7.3%
Mediterranean	43,063	76,455	-43.7%	-26.7%
Africa	62,619	56,090	+11.6%	+11.5%
Total	635,550	642,879	-1.1%	+0.7%

2.2 2018 operational sales by business

	2018
In thousands of euros	Cement	Concrete Aggregates	Other Products and Services	Inter-sector eliminations	Consolidated sales
France	378,986	479,131	280,794	-188,955	949,956
Europe (excluding France)	153,019	158,356	124,898	-46,096	390,176
Americas (excluding Brazil)	217,353	248,498	0	-61,588	404,263
Asia	390,296	5,896	7,797	-4,941	399,048
Mediterranean	162,001	66,825	18,304	-43,493	203,638
Africa	184,092	51,461	0	-170	235,384
Operational sales	1,485,748	1,010,167	431,793	-345,243	2,582,465
Inter-sector eliminations	-233,538	-19,932	-91,773	345,243
Consolidated sales	1,252,210	990,235	340,020	0	2,582,465

2.3 2018 EBITDA (after first-time adoption of IFRS 16)

In thousands of euros	H1 2018	H2 2018	2018
France	74,643	100,692	175,335
Europe (excluding France)	39,132	56,819	95,952
Americas (excluding Brazil)	40,324	43,123	83,447
Asia	32,335	44,256	76,591
Mediterranean	13,853	1,899	15,752
Africa	24,056	21,190	45,247
Total	224,343	267,980	492,323

2.4 2018 EBIT (after first-time adoption of IFRS 16)

In thousands of euros	H1 2018	H2 2018	2018
France	34,359	59,271	93,630
Europe (excluding France)	21,840	39,147	60,986
Americas (excluding Brazil)	20,955	24,996	45,950
Asia	15,971	26,236	42,207
Mediterranean	4,447	-6,975	-2,528
Africa	9,425	5,388	14,812
Total	106,996	148,063	255,059

2.5 2018 Operating profit (after first-time adoption of IFRS 16)

In thousands of euros	H1 2018	H2 2018	2018
France	34,460	59,655	94,115
Europe (excluding France)	18,683	38,517	57,201
Americas (excluding Brazil)	20,955	24,996	45,950
Asia	16,016	26,242	42,258
Mediterranean	2,740	-6,633	-3,894
Africa	8,799	4,407	13,206
Total	101,653	147,183	248,837

3. Definition of alternative performance measures (APMs):

• Performance at constant scope and exchange rates is used to determine the organic growth trend in P&L items between two periods and to compare them by eliminating the impact of exchange rate fluctuations and changes in the scope of consolidation. It is calculated by applying exchange rates and the scope of consolidation from the prior period to figures for the current period.
• A geographical (or a business) segment's operational sales are the sales posted by the geographical (or business) segment in question less intra-region (or intra-segment) sales.
• Value-added: value of production less consumption of materials used in the production process.
• Gross operating income: value-added, less staff costs, taxes and duties (other than on income and deferred taxes) plus operating subsidies
• EBITDA (earnings before interest, tax, depreciation and amortization): sum of gross operating income and other income and expenses on ongoing business.
• EBIT (earnings before interest and tax): EBITDA less net depreciation, amortisation, additions to provisions and impairment losses on ongoing business.
• Cash flow: net income before net non-cash expenses (i.e. predominantly depreciation, amortisation, additions to provisions and impairment losses, deferred taxes, gains and losses on disposals and fair value adjustments).
• Free cash flow: net operating cash flow after deducting capital expenditure net of disposals.
• Net debt represents gross debt (consisting of the outstanding amount of borrowings from investors and credit institutions, residual financial liabilities under finance leases, any other borrowings and financial liabilities excluding options to sell and bank overdrafts), net of cash and cash equivalents, including remeasured hedging derivatives and debt.
• Gearing is a ratio reflecting a company's financial structure calculated as net debt/consolidated equity.
• Leverage is a ratio reflecting a company's profitability, which is calculated as net debt/consolidated EBITDA.

Next report: first-quarter 2019 sales after the close on 6 May 2019.

Investor relations contact:

Stéphane Bisseuil: Tel: +33 (0)1 58 86 86 05 stephane.bisseuil@vicat.fr

Press contacts:

Alizee Remaud: Tel: +33 (0)1 58 86 86 26 alizee.remaud@tbwa-corporate.com

ABOUT VICAT

The Vicat Group has over 9,000 employees working in three core divisions, Cement, Concrete & Aggregates and Other Products & Services, which generated consolidated sales of €2,582 million in 2018. The Group operates in twelve countries: France, Switzerland, Italy, the United States, Turkey, Egypt, Senegal, Mali, Mauritania, Kazakhstan, India and Brazil. Over 63% 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.

Important information:

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).