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Vicat : 2012 Sales: €2,292 Million

  Vicat : 2012 Sales: €2,292Million

  *Full-year consolidated sales up 1.2% and stable at constant scope and
    exchange rates
  *Further strong growth in India and Kazakhstan, confirmed recovery in
    Turkey and the United States
  *Unfavourable environment in Egypt, France and West Africa
  *Debt under control and very healthy financial position

Business Wire

PARIS LA DÉFENSE -- February 5, 2013

Regulatory News :

Vicat (NYSE Euronext Paris: FR0000031775 – VCT) (Paris:VCT) has today reported
2012 sales of €2,292million, representing an increase of 1.2% and almost
stable at constant scope and exchange rates (down 0.2%).

Consolidated sales by division:

                Financial year  Financial year  Change
(€ million)      to 31 December   to 31 December              At constant
                2012                            Reported  scope and
                                  2011                        exchange rates
Cement           1,156            1,138           +1.6%     +0.7%
Concrete &       826              818              +1.0%      (1.3%)
Aggregates
Other Products   310              310              +0.2%      (0.7%)
& Services
                                                      
Total           2,292           2,265           +1.2%     (0.2%)

Commenting on these figures, the Management Board stated:
“Vicat showed the strong resilience of its business during 2012. The Group
capitalised on the brisk growth in new emerging markets and on a solid
recovery in Turkey and the United States. These trends helped to offset a
number of adverse climate-related and macroeconomic factors in Europe and
political and security concerns in West Africa and Egypt.
With global economic conditions set to become more supportive, the Vicat Group
has major strengths and should benefit gradually from the investments made
over the past six years. Its ambitious investment strategy has not only
modernised all of the Group’s manufacturing facilities, it has also boosted
its production capacity in regions with great potential, while maintaining its
financial strength. The Group now intends to capitalize on the efforts of the
past few years by focusing resolutely on a policy of maximising its cash
generation and reducing its debt before considering the next step in its
international expansion strategy.”

The Vicat Group’s 2012 consolidated sales came to €2,292million, up 1.2% by
comparison with 2011.
This top-line performance reflected:

  *a 0.2% dip in sales at constant scope and exchange rates owing to:

       *mixed business trends, with some regions affected by social and
         political upheavals, such as Egypt and Mali, while others were
         boosted by upbeat sales performances, such as India, Kazakhstan,
         Turkey and the United States,
       *unfavourable weather conditions compared with 2011, particularly in
         France and Switzerland,

  *a positive currency effect of 1.2% resulting predominantly from
    appreciation in the Swiss franc, US dollar and Egyptian pound against the
    euro, which fully offset the impact of depreciation in the Indian rupee,
  *a very small positive impact of 0.2% from changes in the scope of
    consolidation.

Consolidated sales during the fourth quarter of 2012 stood at €562.0 million,
up 4.5% by comparison with the same period of 2011. At constant scope and
exchange rates, the increase was 2.4%. Over the same period, sales recorded by
the Cement and the Concrete & Aggregates divisions respectively posted growth
of 3.4% and 4.3% at constant scope and exchange rates, compared with a
contraction of 5.9% at the Other Products & Services division.

The breakdown of operational sales over the year as a whole between the
Group’s various divisions showed an increase in Cement’s contribution to 52.3%
of operational sales from 52.1% in 2011. The Concrete & Aggregates division
contributed 32.5% of the Group’s operational sales, down slightly from 32.8%
in 2011. Lastly, the Other Products & Services division posted a small
increase in its contribution to the Group’s operational sales to 15.2% from
15.0% in 2011.

In this press release, and unless indicated otherwise, all the changes are
stated on a consolidated basis, using year-on-year comparisons (2012/2011) and
at constant scope and exchange rates.

1. Geographical breakdown of consolidated sales in the year to 31 December
2012

1.1. France

              Financial year to 31   Financial year  Change
(€ million)   December 2012          to 31 December  Reported  At constant
                                       2011                        scope
Consolidated  879                    939             (6.3%)    (6.8%)
sales

Consolidated sales in France decreased by 6.8%. The top-line contraction in
the region was chiefly attributable to the decline in volumes as a result of
the very poor weather conditions at the beginning of the year compared with
the exceptionally good conditions that prevailed during 2011 in the regions
where the Group is operating, and to a slowdown in the construction market
throughout the year owing to the economic and financial crisis affecting the
whole of Europe.
The pace of contraction in the Group’s business in France slowed down
throughout the second half of the year in spite of the completion of some
major construction projects and significantly less favourable weather
conditions than in late 2011. During the fourth quarter, sales declined by
just 2.8% despite a high base of comparison.

By business:

  *In Cement,  sales were down 11.6%. This decline was triggered by a fall of
    over 13% in volumes over the year as a whole as a result of weather
    conditions at the beginning and end of the year that were significantly
    worse than in 2011, the completion of a number of major projects and a
    more challenging industry environment. Nonetheless, the average selling
    price recorded a slight increase on 2011. In the final quarter, sales
    contracted by just 10.8%.
  *Concrete & Aggregates sales slipped 4.3% lower. This business was also
    impacted by the very poor weather conditions and by completion of the
    large infrastructure projects that underpinned business trends during the
    first half of 2011. Accordingly, at constant scope, volumes contracted by
    around 2% in concrete and slightly over 9% in aggregates over the full
    year. Selling prices edged up slightly over the full year. It is worth
    noting that sales picked up significantly during the second half of the
    year compared with the first six months of 2012, with the top line rising
    by 5.6% during the fourth quarter.
  *Other Products & Services recorded a 4.7% decline in sales. The sales
    contraction in the transportation business, which was caused by the very
    poor weather conditions at the beginning and end of the year, was offset
    only partially by the expansion in the building chemicals business.

1.2. Europe (excluding France)

              Financial year  Financial year  Change
(€ million)   to 31 December  to 31 December  Reported  At constant scope
               2012             2011                        and exchange rates
Consolidated  411             403             +2.0%     -0.3%
sales

Sales in Europe excluding France were stable. There was a stark contrast
between the first half, when business was severely affected by the poor
weather conditions, and the second half, when sales posted a strong rebound.

In Switzerland, the Group’s sales held firm (down 0.2%) over the full year and
rose by 4.0% during the fourth quarter.

  *Cement sales rose by 5.0% over the year as a whole and by close to 18% in
    the final quarter. Full-year volumes grew by close to 2%. Following a
    tangible contraction of 7% during the first half owing to the poor weather
    conditions, volumes recorded a solid rebound during the second half, with
    growth accelerating to 12% in the fourth quarter. Average selling prices
    posted solid growth over the full year, boosted by a favourable product
    mix.
  *In Concrete & Aggregates, sales dropped by 5.3% over the full year but
    rose by 1.6% during the fourth quarter. The business was severely affected
    by the very poor weather conditions during the first half, and the
    improvement recorded during the second half was not sufficient to offset
    the steep decline at the beginning of the year. As a result, concrete
    volumes contracted by close to 4% over the full year, in spite of growth
    of over 9% in the final quarter, while aggregates volumes dropped by close
    to 3%, with a stronger decline in the final quarter (down by around 6%).
    Average selling prices improved slightly over the full year in the
    concrete business and remained virtually stable in aggregates.
  *The Precast business recorded a 1.9% increase in its sales over the full
    year, reflecting the return of brisk growth during the second half after
    the poor weather conditions had dragged down performance during the first
    half.

In Italy, sales edged down 1.2% by comparison with 2011. The significant rise
in selling prices resulting from the selective business policy and the
development of export sales helped to offset the steep decline in volumes in
the persistently tough domestic market. This volume decline gained pace during
the final quarter, leading to a contraction of 15% in the Group’s business in
the country.

1.3. United States

              Financial year  Financial year  Change
(€ million)   to 31 December  to 31 December  Reported  At constant scope
               2012             2011                        and exchange rates
Consolidated  196             165             +18.7%    +9.6%
sales

During 2012, sales in the United States recorded a marked progression at 9.6%.
This performance over the full year reflects the sharp rebound in volumes,
which drove a clear improvement in the capacity utilisation rate at the
plants. What’s more, the first signs of an increase in selling prices were
evident, particularly in concrete. During the fourth quarter, business
remained virtually stable, in light of the unfavourable base of comparison and
weather conditions.

  *Cement posted a tangible sales increase of 18.7% over the full year and
    11.7% in the final quarter, with a significant boost coming from volume
    growth of over 17% during 2012. While prices posted a very small
    sequential increase over the full year, they were still lower on average
    than in 2011. This said, it is worth noting that in the final quarter of
    2012, average selling prices moved above the level recorded in the fourth
    quarter of 2011.
  *Concrete sales rose by 6.0% over the full year. Full-year performance was
    underpinned by a solid increase in volumes, particularly in California.
    Selling prices posted an increase on an annualised basis for the first
    time in several years. During the fourth quarter, sales fell back 5.2% due
    to a significant decline of close to 10% in volumes, owing primarily to an
    unfavourable base of comparison and adverse weather conditions.

1.4. Turkey, India and Kazakhstan

              Financial year  Financial year  Change
(€ million)   to 31 December  to 31 December  Reported  At constant scope
               2012             2011                        and exchange rates
Consolidated  442             348             27.0%     27.9%
sales

In Turkey, sales came to €221million, up 12.3% over the full year. After a
first quarter marked by extremely adverse weather conditions, business picked
up sharply during the second quarter and this upturn carried through into the
second six months of the year on the back of the momentum of the Group’s
Cement business and a more supportive pricing environment. Accordingly, sales
rose by 16.9% in the final quarter.

  *In Cement, sales advanced by 10.9% over the full year and by 10.4% in the
    fourth quarter. Following on from the very challenging weather conditions
    that sparked a steep volume contraction in the first six months, the
    second half of the year brought a solid recovery in business thanks to
    supportive trends in the domestic market. Over the year as a whole,
    volumes recorded an increase of close to 2% despite the significant
    contraction in export business. This increase was driven by a marked
    volume growth in the fourth quarter. Average selling prices moved higher
    throughout the period in a still competitive environment.
  *Concrete & Aggregates sales rose by 14.2% in 2012, recording an increase
    of 25.7% in the fourth quarter. After a very steep decline in concrete
    volumes during the first half, the rebound during the second half and the
    fourth quarter in particular (15%) lifted the group back to its 2011
    levels. In aggregates, volumes continued to move in the right direction
    over the full year, posting a year-on-year increase of over 13%, including
    a rise in excess of 17% in the fourth quarter. Throughout the year, the
    Group continued to pursue its strategy of adopting a selective business
    approach and restoring its selling prices.

In India, the Group posted sales of €156million in 2012, representing an
increase of 30.5%. Vicat maintained its strong performance in India, with the
ongoing build-up of production at Bharathi Cement’s modern plant. This growth
resulted from a solid increase in volumes and slightly higher selling prices.
During the fourth quarter, sales rose by 18.9% at constant scope and exchange
rates.
Over the full year, cement volumes totalled more than 2.5million tonnes. This
success vindicates Vicat’s strategy, which is based on selling high-grade
cement supported by a well-known brand and a solid distribution network
covering the whole of Southern India. Towards the end of the year, the Group
started up production at the Vicat Sagar plant, which has a nominal cement
capacity of 2.8million tonnes, and its first products were launched in early
2013 under the Bharathi Cement brand.

In Kazakhstan, the ramp-up in production at the Jambyl Cement plant continued
and it generated sales of €66million over the year as a whole, compared with
€27million in the same period in 2011. This performance was driven by a very
strong increase in volumes, with close to one million tonnes sold in
supportive pricing conditions.

1.5. Africa and Middle East

              Financial year  Financial year  Change
(€ million)   to 31 December  to 31 December  Reported  At constant scope
               2012             2011                        and exchange rates
Consolidated  364             411             (11.3%)   (12.9%)
sales

Sales in the Africa and the Middle East region contracted by 12.9%.

In Egypt, sales fell back 27% during the year. This decline was attributable
to a roughly comparable volume contraction. Average selling prices edged
higher over the full year. During 2012, operating performance in the region
was held back by the fuel shortage in the market (gas deliveries halted as a
result of a series of attacks on the pipeline supplying the plant during the
first half, coupled with a severe fuel shortage affecting the entire Egyptian
market) and a severely degraded security environment. Taking these events into
account, the Group was unable to keep its two kilns running at full tilt. Even
so, it is worth noting that after the gas supply was restored in early October
2012, operating performance gradually improved, albeit in an extremely adverse
and restrictive security environment. During the fourth quarter of 2012, sales
drew down 13.9% owing to the impact of a volume contraction of around 25%.

Sales in West Africa dropped by 5.2% in 2012, with a decline of 0.1% in the
final quarter. The year-on-year contraction was attributable to the fall in
the average selling price in the region, owing to a slightly more competitive
environment in Senegal and a shift in the geographical mix towards higher
export sales. During a mixed year dominated in the first half by political
events in Mali and abundant wintering during the third quarter right across
the region, cement volumes grew by close to 2% over the full year, with a
robust increase of over 9% in the fourth quarter. In Senegal, the Group’s
Aggregates business was hit by delays and shutdowns affecting a number of
major projects, which led to an 11.6% contraction in volumes over the full
year, with a drop of over 15% in the final quarter.

2. Divisional breakdown of 2012 sales

2.1. Cement

                                                   Change
                    Financial year   Financial year              At constant
(€ million)        to 31 December  to 31 December  Reported  scope and
                    2012             2011                        exchange
                                                                 rates
Volume (thousands   17,894           18,035          -0.8%    
of tonnes)
Operational sales   1,377            1,356            +1.6%      +0.6%
Intra-group sales   (221)            (218)
Consolidated       1,156           1,138           +1.6%     +0.7%
sales

During 2012, the Cement division’s operational sales advanced by 1.6% and were
stable at constant scope and exchange rates (up 0.6%).

2.2 Concrete & Aggregates

                                                     Change
                       Financial year   Financial                  At constant
(€ million)           to 31 December  year to 31     Reported  scope and
                       2012             December 2011              exchange
                                                                   rates
Concrete volumes       7,928            7,969          -0.5%    
(thousands of m^3)
Aggregates volume
(thousands of          21,516           22,219          -3.2%
tonnes)
Operational sales      855              854             +0.1%      -2.1%
Intra-group sales      (29)             (36)
Consolidated sales    826             818            +1.0%     -1.3%

Operational sales posted by the Concrete & Aggregates division posted a very
modest increase of 0.1% during 2012, but a decline of 2.1% at constant scope
and exchange rates compared with 2011.

2.3. Other Products & Services

              Financial year  Financial year  Change
(€ million)   to 31 December  to 31 December  Reported  At constant scope
               2012             2011                        and exchange rates
Operational    401              391             +2.5%     +1.8%
sales
Intra-group    (91)             (81)
sales
Consolidated  310             310             +0.2%     -0.7%
sales

Operational sales grew by 2.5% and by 1.8% at constant scope and exchange
rates.

3. Financial outlook for 2012

3.1 Operating profitability

Vicat’s EBITDA margin in 2012 will be adversely affected by the following
factors:

  *lower volumes in France and lower prices in West Africa,
  *the impact of political and social events in Egypt and the difficult
    operating conditions that ensued;
  *an increase in energy costs, owing mainly to higher electricity prices in
    some countries.

On the other hand, several factors will have a positive impact on the 2012
EBITDA margin:

  *the gradual upturn in activity in mature markets in the second half of the
    year following a particularly difficult first half;
  *the continuing brisk momentum of emerging markets;
  *the pursuit of productivity gains, especially greater use of alternative
    fuels,
  *and lastly, the ongoing policy of tight cost control and cost reductions.

Taking account of all of these factors, although the Group expects its
performance to improve in the second half of 2012 relative to the first half
of the year, full-year EBITDA in 2012 will be lower than that posted in 2011.

4. Outlook

The Group will present its outlook for 2013 by market when it reports its
full-year results for 2012 on 7 March 2013.

With the start-up of production at its Vicat Sagar greenfield plant in India
during December 2012, the Vicat Group completed its ambitious investment
programme under which it has considerably enhanced its geographical
diversification while laying the foundations for sustained profitable growth.

The Group now intends to capitalise on its strong market positions, the
quality of its manufacturing base and tight cost control by maximising
progressively its cash generation and reducing its level of debt before
embarking on the next step in its international expansion strategy.

5. Conference call

To accompany the publication of its full-year 2012 sales, the Vicat group is
organising a conference call that will be held in English on Wednesday, 6
February 2013 at 3pm Paris time (2pm London time and 9am New York time).

To take part in the conference call live, dial one of the following numbers:

France:          +33(0)1 70 99 42 71
United Kingdom:   +44(0)20 7136 2051
United States:    +1646 254 3364

To listen to a playback of the conference call, which will be available until
midnight on Wednesday 14 February 2013, dial one of the following numbers:

France:          +33 (0)1 74 20 28 00
United Kingdom:   +44 (0)20 3427 0598
United States:    +1 347 366 9565
Access code:      4653283#

Next publication:
7 March 2013 (after the stock market closes): full-year 2012 results

ABOUT VICAT
____________________________________________________________________________________

The Vicat Group has close to 7,500 employees working in three core divisions,
Cement, Concrete & Aggregates and Other Products & Services, which generated
consolidated sales of €2,292 million in 2012.
The Group operates in eleven countries: France, Switzerland, Italy, the United
States, Turkey, Egypt, Senegal, Mali, Mauritania, Kazakhstan and India. Nearly
62% of its sales are generated outside France.
The Vicat Group is the heir to an industrial tradition dating back to 1817,
when Louis Vicat invented artificial cement. Founded in 1853, the Vicat Group
now operates three core lines of business: Cement, Ready-Mixed Concrete and
Aggregates, as well as related activities.

Disclaimer:
This press release may contain forward-looking statements. Such
forward-looking statements do not constitute forecasts regarding results or
any other performance indicator, 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).

Vicat group - Financial data - Appendices

Breakdown of 2012 sales by division and geographical region

                                        Other
(€ million)    Cement   Concrete &   Products   Intra-group  Consolidated
                          Aggregates    &           sales         sales
                                        Services
France         391.5    434.8        238.8      (185.9)      879.1
Europe
(excluding      175.6     158.2         127.5       (50.8)        410.5
France)
United States   91.2      135.9         -           (30.9)        196.1
Turkey, India   376.6     102.5         34.5        (71.4)        442.1
& Kazakhstan
Africa and     342.2    23.8         -          (1.7)        364.3
Middle East
Operational    1,377.1  855.1        400.7      (340.6)      2,292.2
sales
Intra-group    (221.4)  (29.1)       (90.2)     340.8        
sales
Consolidated   1,155.7  826.1        310.5                  2,292.2
sales

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 505539

RCS NANTERRE

Contact:

Vicat
Investor relations contact:
Stéphane Bisseuil:
T. + 33 1 58 86 86 13
s.bisseuil@vicat.fr
or
Press contacts:
Clotilde Huet / Catherine Bachelot-Faccendini:
+33 1 58 86 86 26
clotilde.huet@tbwa-corporate.com
catherine.bachelot-faccendini@tbwa-corporate.com
 
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