Vicat: 2012 Results: Resilient Performance in Ongoing Tough Conditions

  Vicat: 2012 Results: Resilient Performance in Ongoing Tough Conditions

Business Wire

PARIS LA DÉFENSE -- March 7, 2013

Regulatory News:

  *Substantial improvement in margins in the second half
  *Build-up on track in India and Kazakhstan
  *Solid operating cash flow
  *Debt under control and healthy financial position
  *Proposed dividend of €1.50 per share, unchanged

The Vicat group (Paris:VCT)(NYSE Euronext Paris: FR0000031775 – VCT) has today
reported its full-year results for 2012.

Audited condensed consolidated income statement:

                                       Change
(€ million)              2012   2011   Reported  At constant scope and
                                                     exchange rates
Consolidated sales        2,292   2,265   +1.2%     -0.2%
EBITDA*                   437     491     -10.9%     -11.4%
EBITDA margin (%)         19.1    21.7
EBIT**                    245     309     -20.8%     -20.3%
EBIT margin (%)           10.7    13.7
Consolidated net income   148     193     -23.4%     -23.2%
Net margin (%)            6.5     8.5
Net income, Group share   129     164     -21.1%     -20.9%
Cash flow                329    363    -9.4%     -10.0%

*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:
"With its greater geographical diversity, the Vicat group confirmed the
resilience of its growth model in 2012 in an operating environment that
remained tough. The Group capitalised on its investments in high-potential
emerging markets, along with the gradual recovery in Turkey and the USA.
Performance improved substantially in the second half and 2012 profitability
remained at a satisfactory level. In addition, Vicat Sagar started operating
in India, completing the Group's development plan without affecting its robust
financial position. From this solid base, the Group has started 2013 confident
of benefiting from its investments of the last six years, and with the stated
intention of maximising cash flow in order to continue reducing debt before
considering the next phase of its international development strategy."

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

1. Income statement

1.1 Consolidated income statement

Consolidated sales  amounted to €2,292 million, an increase of 1.2% compared
with 2011.

Consolidated EBITDA was €437 million, down 10.9% relative to 2011 and down
11.4% at constant scope and exchange rates. This decline was mainly the result
of:

  *lower volumes in Cement and Concrete & Aggregates, due to lower business
    levels in France and Egypt and lower prices in West Africa;
  *particularly difficult production conditions in Egypt, caused by fuel
    shortages;
  *higher energy costs in India, Egypt and Senegal and higher freight costs
    in India.

These negative factors were partly offset by:

  *strong EBITDA growth in Kazakhstan and Turkey;
  *improved performance in the US business, where operating losses fell
    substantially;
  *a slight improvement in EBITDA in Switzerland and Italy.

EBITDA margin was 19.1% in 2012. As forecast, EBITDA margin was 20.3% in the
second half, significantly higher than the first-half figure of 17.8%.

Consolidated EBIT totalled €245 million, 20.8% lower than in 2011 and 20.3%
lower at constant scope and exchange rates. This was the result of the reduced
profitability of operations and higher depreciation charges caused by new
facilities coming into service, particularly in Kazakhstan.
EBIT margin stood at 10.6% in 2012, compared with 13.7% in 2011.

Net interest expenses totalled €40 million, €3.4 million less than in 2011.
This improvement resulted from a greater amount of capitalised investment in
certain projects in India, which offset higher interest expenses resulting
from the increase in average debt outstanding.

Gearing (net debt to equity ratio) was 46.4% at the end of 2012 versus 43.8%
at December31,2011 and 50% at June 30, 2012.

The Group's average tax rate was 29.1%, as opposed to 25.7% in 2011.

The increase in the average tax rate resulted from:

  *the end of the tax exemption period in Egypt on January 1, 2012;
  *the French government's decision to allow only 85% of interest expenses to
    be deducted against tax;
  *higher withholding taxes as a result of higher dividends from Turkey;
  *a higher amount of expenses and charges added back to taxable profit in
    France as a result of the increase in dividends received by Vicat SA.

Consolidated net income was €148 million, down 23.2% at constant scope and
exchange rates, including €129 million Group share, down 20.9% at constant
scope and exchange rates.

Net margin (consolidated net income / consolidated sales) was 6.5% as opposed
to 8.5% in 2011.

As a result, earnings per share amounted to €2.87 in 2012 versus €3.64 in
2011.

On the strength of these full-year 2012 results and confident in the Group’s
ability to pursue further development, the Board of Directors decided at its
meeting on February 24, 2013 to propose an unchanged dividend payment of €1.50
per share to shareholders at the Group’s Annual General Meeting due to be held
on April 26, 2013.

1.2 Income statement broken down by geographical region

1.2.1 Income statement, France

(€ million)         2012  2011  % change
                                   Reported  At constant scope
Consolidated sales  879   939   (6.3%)    (6.8%)
EBITDA               163    202    (19.1%)    (19.0%)
EBIT                104   147   (29.5%)   (29.1%)

Consolidated sales in France fell by 6.8%. This decline in sales and
profitability in the region was mainly due to lower volumes, affected by very
bad weather conditions at the start of the year compared with exceptionally
good conditions in 2011, as well as a slowdown in the construction market over
the full year, resulting from the recession and financial crisis affecting all
of Europe. Against this challenging background, EBITDA in France fell by 19%.
However, the decline in the French business slowed in the second half of 2012,
despite the end of some large projects and much worse weather conditions than
in late 2011. The Group’s business levels and profitability improved
substantially in France during the course of the year. Indeed, EBITDA margin
increased from 17.0% in the first half of 2012 to 20.1% in the second half of
2012, and was 18.5% in 2012 as a whole.

  *In the Cement business, sales were down 11.6%. This decline resulted from
    a fall in s volumes of over 13%, caused by weather conditions at the start
    and end of the year that were substantially worse than in 2011, the end of
    some large projects and the tougher industry environment. Despite this
    operating environment, the average selling price increased slightly
    relative to 2011. Against this backdrop, the Group recorded a marked
    decrease in EBITDA in this business line during 2012, due essentially to
    the drop in volumes. EBITDA margin fell in 2012 as a whole, although it
    improved in the second half relative to the first.
  *In the Concrete & Aggregates business, sales fell by 4.3%. This business
    line was also affected by very poor weather conditions and by the end of
    major infrastructure works that had previously sustained sales,
    particularly during the first half of 2011. At constant scope, full-year
    volumes contracted by around 2% in concrete and by over 9% in aggregates.
    Average selling prices increased slightly over the full year. It is also
    worth noting that business levels were better in the second half of 2012
    than in the first half. In 2012 as a whole, this division sustained a
    marked fall in EBITDA in France, leading to a sharp fall in EBITDA margin.
    However, EBITDA margin improved in the second half of 2012 relative to the
    first half.
  *In Other Products & Services, consolidated sales fell by 4.7%. The decline
    in the Transportation business, impacted by very poor weather conditions
    at the start and end of the year, was only partly offset by growth in the
    Building Chemicals business. Accordingly, the division’s EBITDA
    contribution fell slightly in 2012.

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

                                   % change
(€ million)         2012  2011  Reported  At constant scope and exchange
                                              rates
Consolidated sales  411   403   +2.0%     -0.3%
EBITDA               105    102    +2.4%      0.0%
EBIT                76    72    +5.6%     +3.2%

In Europe ex-France, consolidated sales rose by 2.0% and were virtually
unchanged at constant scope and exchange rates. This reflects a sharp contrast
between a first half that was seriously affected by poor weather conditions
and a second half in which business levels rebounded strongly.
EBITDA in this geographical region was stable relative to 2011.

In Switzerland, sales were stable (-0.2%) at constant scope and exchange rates
in 2012:

  *In Cement, sales rose by 5.0% over the full year, supported by favorable
    volumes. After a 7% drop in volumes in the first half due to adverse
    weather conditions, they recovered well in the second half. Average
    selling prices increased significantly in 2012, supported by a favourable
    product mix. EBITDA for this business line in Switzerland rose very
    slightly relative to 2011. EBITDA margin fell slightly in 2012 as a whole,
    but was higher in the second half relative to both the first half of 2012
    and the second half of 2011.
  *In the Concrete & Aggregates business, sales fell by 5.3% in 2012. This
    business was also badly affected by very poor weather conditions in the
    first half, and the improvement in the second half was not enough to
    offset the sharp decline in early 2012. Concrete volumes fell by 4% in
    2012 as a whole, with aggregates volumes down almost 3%. Average selling
    prices increased slightly in concrete and remained more or less stable in
    aggregates. On this basis, EBITDA for this business line in Switzerland
    was stable in 2012, with EBITDA margin rising in 2012 as a whole.
  *The Precast business posted a 1.9% rise in sales, due to renewed solid
    growth in the second half after a first half that was badly affected by
    adverse weather conditions. EBITDA in this business was stable relative to
    2011.

In Italy, sales fell by 1.2%. The substantial increase in selling prices,
resulting from the targeted commercial policy and growth in export sales, made
up for the sharp fall in volumes in what remains a particularly challenging
domestic market. EBITDA in Italy grew in 2012 relative to 2011, and EBITDA
margin was slightly higher.

1.2.3 Income statement for the United States

                                   % change
(€ million)         2012  2011  Reported  At constant scope and exchange
                                              rates
Consolidated sales  196   165   +18.7%    +9.6%
EBITDA               (5)    (9)    +41.7%     +46.1%
EBIT                (34)  (39)  +13.1%    +19.7%

In 2012, sales in the United States posted strong growth of 9.6%. This
performance reflects the strong rebound in volumes, which translated into a
substantial increase in the utilisation rate of production facilities.
Additionally, there was a slight upturn in selling prices, especially in the
Concrete business.

Profitability improved, particularly in the second half of 2012, and losses at
the EBITDA level fell to €5 million over the full year, versus €9 million in
2011.

  *The Cement division achieved a substantial upturn in sales, which grew by
    18.7%, supported by a 17% rise in volumes over the full year. Although
    prices rose very slightly on a sequential basis during the year, they
    remained lower than those seen in 2011. In view of these factors, EBITDA
    for this business line remained negative in 2012, although there was an
    improvement relative to 2011. The Group's performance improved
    significantly in the second half of 2012, posting positive EBITDA for this
    period.
  *In the Concrete business, sales were up 6.0%. Over the full year, there
    was a solid increase in volumes, particularly in California. For the first
    time in several years, selling prices rose on an annual basis. The Group
    therefore substantially reduced its losses at the EBITDA level relative to
    2011, due to increased profitability in this business line in the second
    half of 2012.

1.2.4 Income statement for Turkey, India and Kazakhstan

                                   % change
(€ million)         2012  2011  Reported  At constant scope and exchange
                                              rates
Consolidated sales  442   348   +27.0%    +27.9%
EBITDA               92     74     +23.9%     +24.6%
EBIT                54    44    +22.6%    +24.2%

In Turkey, sales rose by 12.3% to €221 million in 2012. Following very
unfavourable weather conditions during the first quarter, sales picked up
significantly in the second quarter. This improvement continued in the second
half, boosted by the momentum of the Cement business and more favourable
pricing conditions. EBITDA in these countries totalled almost €48 million,
versus €41 million in 2011.

  *In the Cement business, sales were up 10.9% in 2012 as a whole. Following
    a very sharp fall in volumes in the first half due to particularly
    challenging weather conditions, business levels recovered strongly in the
    second half due to positive developments in domestic markets. In 2012 as a
    whole, volumes increased slightly, despite a substantial fall in export
    volumes. Average selling prices rose in 2012 as a whole, although the
    competitive environment remained tough. Accordingly, the division’s EBITDA
    contribution rose again. However, EBITDA margin fell slightly relative to
    2011.
  *Sales in the Concrete & Aggregates division were up 14.2% in 2012.
    Although concrete volumes fell very sharply in the first half, the rebound
    in the second half carried volumes back to 2011 levels. In aggregates,
    sales volumes were buoyant throughout the year, rising by more than 13%
    relative to 2011. In 2012 as a whole, the Group maintained its selective
    commercial approach, and focused on raising selling prices. Against this
    backdrop and as a result of cost-cutting efforts by the Group, EBITDA and
    EBITDA margin improved sharply relative to 2011.

In India, sales totalled €156 million in 2012, up 30.5% at constant scope and
exchange rates. The Group’s good performance in India was confirmed, with the
continuing ramp-up of Bharathi Cement’s modern manufacturing base. This growth
resulted from a solid increase in volumes and slightly higher selling prices.
In 2012 as a whole, cement sales volumes totalled more than 2.5 million
tonnes. This success validates the Group’s strategy, which is based on selling
high-end cement, supported by a brand name with a strong reputation and a
solid distribution network covering the whole of southern India. At the end of
the year, Vicat Sagar's plant started production. This plant has nominal
capacity of 2.8 million tonnes per year, and is selling its production under
the Bharathi Cement brand since early 2013. EBITDA was €31 million in 2012,
almost unchanged relative to 2011. However, EBITDA margin fell, mainly due to
higher transportation and electricity costs, and the increase in expenses
relating to the Vicat Sagar Cement project.

In Kazakhstan, the build-up of the Jambyl Cement plant continued and full-year
revenue totalled €66 million, versus €27 million in 2011. This performance was
driven by very strong volume growth, with almost 1 million tonnes sold, while
selling prices were favourable. EBITDA rose very sharply to €13 million in
2011, supported by the rapid build-up of production facilities and the plant's
improved operating performance, particularly in the second half of 2012.

1.2.5 Income statement for Africa and the Middle East

                                   % change
(€ million)         2012  2011  Reported  At constant scope and exchange
                                              rates
Consolidated sales  364   411   (11.3%)   (12.9%)
EBITDA               83     122    (31.9%)    (33.0%)
EBIT                46    86    (46.7%)   (47.4%)

In Africa and the Middle East, consolidated sales fell by 12.9%.

EBITDA came to €83 million in 2012 compared with €122 million in 2011.

In Egypt, sales were down 27%. This decline was due to a similar fall in
volumes. Average selling prices rose very slightly in 2012 as a whole. The
Group’s operating performance in the region was affected particularly by fuel
shortages in Egypt - with gas deliveries interrupted following numerous
attacks on the pipeline supplying the plant in the first half, coupled with
severe fuel shortages across the Egyptian market - and a serious deterioration
in security. Due to these events, the Group was unable to operate its two
kilns fully. As a result, EBITDA fell sharply relative to 2011, when
performance was only affected by political events in the second half of the
year. It is nevertheless important to note that since gas supplies were
restored at the start of October 2012, the Group’s operating performance has
improved gradually, although security conditions remain particularly difficult
and restrictive. Although EBITDA margin fell substantially in 2012 as a whole,
it improved in the second half relative to both the first half of 2012 and the
second half of 2011.

In West Africa, sales fell by 5.2%. The decline was due to a fall in average
selling prices in the region, resulting from tougher competition in Senegal
and a geographical mix that showed an increase in export sales. 2012 was a
year of contrasts marked by a first half affected by political events in Mali
and particularly rainy winter weather conditions in the third quarter across
the region. However, cement volumes grew by almost 2% in 2012 as a whole. In
Senegal, the aggregates business suffered from stoppages and delays on a
number of large projects, causing volumes to fall by 12% in 2012. The Group's
EBITDA in this region fell significantly in 2012, and EBITDA margin was also
down substantially.

1.3 Income statement broken down by business segment

1.3.1 Cement

                                         % change
(€ million)           2012    2011    Reported  At constant scope and
                                                    exchange rates
Volume (thousands of  17,894  18,035  -0.8%    
tonnes)
Operational sales      1,377    1,356    +1.6%      +0.6%
Consolidated sales     1,156    1,136    +1.6%      +0.7%
EBITDA                 336      380      -11.5%     -12.0%
EBIT                  204     261     -21.8%    -21.5%

In 2012, operational sales in the Cement business rose by 1.6% and were stable
at constant scope and exchange rates (+0.6%).
Average selling prices improved, with increases in France, Switzerland, Turkey
and Kazakhstan making up for falls in West Africa and the United States.
Selling prices remained generally stable in India and Egypt. This overall
increase in selling prices offset a slight 0.8% reduction in cement volumes.

EBITDA came to €336million, representing a decline of 12.0% at constant scope
and exchange rates. This was mainly the result of the decline in EBITDA
generated in France, Egypt and West Africa. EBITDA margin (EBITDA/operational
sales) came in at 24.4% in 2012.

The Group’s performance in this business line improved significantly in the
second half, resulting in a significant increase in EBITDA margin relative to
the first half of the year (26.1% versus 22.6%).

1.3.2 Concrete & Aggregates

                                                % change
(€ million)                  2012    2011    Reported  At constant scope
                                                           and exchange rates
Concrete volumes (thousands  7,928   7,969   -0.5%    
of m^3)
Aggregates volumes            21,516   22,219   -3.2%
(thousands of tonnes)
Operational sales             855      854      +0.1%      -2.1%
Consolidated sales            826      818      +1.0%      -1.3%
EBITDA                        68       78       -13.4%     -13.8%
EBIT                         20      30      -33.4%    -30.3%

In the Concrete & Aggregates business, operational sales rose by 0.1% in 2012
but fell by 2.1% at constant scope and exchange rates relative to 2011.

This was mainly due to a slowdown in France and Switzerland, resulting from
very unfavourable weather conditions at the start of the year compared with
2011. The decline in sales in these two regions was only partly offset by a
robust performance in the United States, Turkey and India. EBITDA fell to €68
million from €78 million in 2011, and EBITDA margin (EBITDA/operational sales)
was 7.9%.
As in the Cement business, the performance of this business line improved
significantly in the second half of 2012, with an increase in EBITDA margin
relative to the first half (8.6% versus 7.2%).

1.3.3 Other Products & Services

                                   % change
(€ million)         2012  2011  Reported  At constant scope and exchange
                                              rates
Operational sales   401   391   +2.5%     +1.8%
Consolidated sales   310    310    +0.2%      -0.7%
EBITDA               34     33     +1.8%      +0.7%
EBIT                21    18    +15.2%    +13.9%

Consolidated sales in this division rose by 2.5% or 1.8% at constant scope and
exchange rates.
EBITDA was €34 million, very slightly higher than the 2011 figure, and EBITDA
margin was 8.5%.

2. Balance sheet and cash flow statement items

At December 31, 2012, the Group had a solid financial position. Group debt,
having peaked at June 30, 2012 due to the temporary effect of investments in
Vicat Sagar Cement's greenfield plant in India, started to fall in the second
half of the year. This trend is likely to continue in the next few years as
the Group takes advantage of its strong market positions, coupled with the
progressive ramp up of the recent industrial investments realised, the quality
of its production facilities, its strict cost control and a sharp decrease in
the level of capex, with the aim of gradually maximising cash flow.

Net debt stood at €1,144 million at December 31, 2012, compared with €1,077
million at December31,2011. This represents a limited increase given the
Group's capital expenditure of €287 million in 2012.

Consolidated equity totalled €2,464 million, compared with €2,461 million at
December 31, 2011.
Based on these figures, net debt equalled 46% of consolidated equity at the
end of 2012, versus 44% at December31,2011 and 50% at June 30, 2012.

Given the level of the Group’s net debt, bank covenants do not pose a threat
either to the Group’s financial position or to its balance sheet liquidity. At
December 31, 2012, Vicat comfortably met all the ratios in the covenants laid
down in financing agreements.

The Group generated cash flow of €329 million during 2012, compared with €363
million during 2011.

Vicat’s capital expenditure amounted to €287 million in 2012 compared with
€276 million in 2011. This expenditure related for a large part to the
construction of the Vicat Sagar greenfield cement plant in India.

This plant started operating in December 2012, bringing to an end a major
phase of industrial and financial investment that has seen Vicat double its
cement production capacity and increase its geographical diversification. Now
that this final capacity-expansion project has been completed, capital
expenditure in 2013 should settle at less than €160 million.

Financial investments during the period totalled €16 million, down from €36
million in 2011, and mainly related to acquisitions of concrete units in
France.

Taking these factors into account, the Group generated free cash flow of €46
million in 2012, down from €83 million in 2011.

3. Outlook

Vicat Sagar's greenfield plant in India started operating in December 2012,
bringing to an end the Vicat Group's ambitious investment programme. This
programme has considerably increased the Group's geographical diversification
and laid the foundations for long-term profitable growth.

The Group now intends to take advantage of its strong market positions, the
quality of its production facilities and its strict cost control, with the aim
of gradually maximising cash flow and reducing debt, before starting a new
phase of its international development strategy.

For 2013, the Group wishes to provide the following comments concerning its
various markets:

  *In France, the Group expects the economic and sector environment to remain
    difficult in 2013, particularly in the first half. This should lead to a
    further fall in volumes, with prices remaining favorable.
  *In Switzerland, the overall operating environment is likely to remain
    positive, with volumes expected to improve slightly and prices expected to
    be stable.
  *In Italy, the Group expects the situation to improve after a tough year in
    2012. Given current levels of cement consumption, volumes should gradually
    stabilise and selling prices should recover.
  *In the United States, the Group expects its markets to continue improving
    in terms of both volumes and prices.
  *In Turkey, last year's improvement in the sector environment is likely to
    continue in 2013. Although competition remains tough in the broad economy
    and in Vicat's business areas in particular, the Group should be able to
    take full advantage of its efficient production facilities and strong
    market positions.
  *In Egypt, the security situation is likely to remain difficult and
    unpredictable. However, the market should remain buoyant in terms of
    volumes and prices evolution is expected to be more favourable. The Group
    remains confident about the positive performance of the Egyptian market in
    the medium and long term.
  *In West Africa, sales volumes should continue to rise overall. Selling
    prices could come under pressure again, due to ongoing uncertainty about
    developments in the competitive environment. In the circumstances, the
    Group will continue its efforts to use its modern, efficient production
    base to expand sales across the whole West Africa region.
  *In India, Vicat Sagar's greenfield plant started production in late 2012.
    The resulting increase in sales in the first half of 2013, along with the
    ongoing build-up at Bharathi Cement, will gradually make the Group a major
    player in Southern India. With its stronger market position and its
    modern, efficient production facilities, the Vicat Group should benefit
    from a buoyant construction market in 2013, although prices are likely to
    remain volatile.
  *In Kazakhstan, the Group's ideal geographical location and highly
    effective production base should enable it to take full advantage of a
    market poised for solid growth in the construction and infrastructure
    sectors, in what is expected to remain a supportive pricing environment.

4. Conference call

To accompany the publication of the Group’s full-year 2012 results, Vicat is
holding a conference call in English that will place on Friday March 8, 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 77
United Kingdom: +44 (0)20 7784 1036
United States: +1 646 254 3367

To listen to a playback of the conference call, which will be available until
midnight on March 15, 2013, dial one of the following numbers:

France: +33 (0)1 74 20 28 00
UK: +44 (0)20 3427 0598
United States: +1 347 366 9565

Access code: 6738405#

Next publication:
April 24, 2013 (after the market closes): first-quarter 2013 sales

Next date for shareholders:
April 26, 2013: Annual General Meeting of the Shareholders

ABOUT VICAT

___________________________________________________________________________________

The Vicat Group has over 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).

                                   APPENDIX

            AUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR
          ENDED DECEMBER 31, 2012 APPROVED BY THE BOARD OF DIRECTORS
                             ON FEBRUARY 24, 2013

The audited consolidated financial statements for the 2012 financial year and
      the notes are available in their entirety on the Company’s website
                                 www.vicat.fr

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
ASSETS                                                 2012       2011
(€ thousand)                                    Notes            
NON-CURRENT ASSETS                                              
Goodwill                                         3       995,320     1,000,195
Other intangible assets                          4       100,417     100,789
Property, plant and equipment                    5       2,271,210   2,218,465
Investment properties                            7       19,557      19,089
Investments in associated companies              8       37,731      37,900
Deferred tax assets                              25      88,980      2,104
Receivables and other non-current financial     9      108,652    116,928
assets
Total non-current assets                              3,621,867  3,495,470
CURRENT ASSETS                                                  
Inventories and work in progress                 10      381,893     360,104
Trade and other accounts receivable              11      354,877     349,994
Current tax assets                                       29,455      16,685
Other receivables                                11      146,458     144,930
Cash and cash equivalents                       12     237,344    359,404
Total current assets                                  1,150,027  1,231,117
TOTAL ASSETS                                          4,771,894  4,726,587
                                                               
LIABILITIES AND SHAREHOLDERS' EQUITY (€                  2012        2011
thousand)
(€ thousand)                                    Notes            
SHAREHOLDERS’ EQUITY                                            
Share capital                                    13      179,600     179,600
Additional paid-in capital                               11,207      11,207
Consolidated reserves                                 1,939,991  1,920,957
Shareholders’ equity                                  2,130,798  2,111,764
Minority interests                                    334,146    349,054
Shareholders’ equity and minority interests           2,464,944  2,460,818
                                                                     
NON-CURRENT LIABILITIES                                         
Provisions for pensions and other                14      55,039      52,631
post-employment benefits
Other provisions                                 15      84,334      78,370
Financial debts and put options                  16      1,197,703   1,384,444
Deferred tax liabilities                         25      240,133     171,429
Other non-current liabilities                         26,557     21,762
Total non-current liabilities                         1,603,766  1,708,636
CURRENT LIABILITIES                                             
Provisions                                       15      9,967       10,911
Financial debts and put options at less than     16      232,352     106,165
one year
Trade and other accounts payable                         260,189     241,862
Current taxes payable                                    27,751      16,088
Other liabilities                               18     172,925    182,107
Total current liabilities                             703,184    557,133
Total liabilities                                     2,306,950  2,265,769
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY            4,771,894  4,726,587

CONSOLIDATED INCOME STATEMENT
                                                             
                                                   2012         2011
(€ thousand)                            Notes                  
                                                             
Net sales                               19         2,292,219    2,265,472
Goods and services purchased                        (1,461,292)  (1,395,552)
Added value                             1.22       830,927      869,920
Personnel costs                          20          (366,653)     (353,022)
Taxes                                             (43,866)     (45,679)
Gross operating earnings                1.22 & 23  420,408      471,219
Depreciation, amortisation and provisions
                                        21          (191,587)     (167,142)
Other income (expense)                  22         16,162       (2,329)
Operating income                        23         244,983      301,748
Cost of net borrowings and financial     24          (34,443)      (40,419)
liabilities
Other financial income                   24          7,869         9,48
Other financial expenses                24         (13,873)     (12,956)
Net financial income (expense)          24         (40,447)     (43,895)
Earnings from associated companies      8          3,050        1,572
Earnings before income tax                          207,586      259,425
Income taxes                            25         (59,621)     (66,297)
Consolidated net income                             147,965      193,128
Portion attributable to minority interests           18,878        29,521
Portion attributable to Group share                  129,087       163,607
                                                             
                                                             
EBITDA                                  1.22 & 23  437,382      490,938
EBIT                                    1.22 & 23  245,228      309,490
Cash flow                                         328,871      363,030
                                                                   
Earnings per share (in euros)
Basic and diluted Group share of net     13          2.87          3.64
earnings per share

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                                   
(€ thousand)                                2012      2011
                                                   
Consolidated net income                     147,965   193,128
                                                    
Currency translation differences            (48,185)  (123,653)
Cash flow hedges                            (22,972)  8,892
Tax on other comprehensive income           8,897     (4,191)
Other comprehensive income (after tax)      (62,260)  (118,952)
                                                    
Total comprehensive income                  85,705    74,176
Portion attributable to minority interests  3,737     (3,410)
Portion attributable to Group share         81,968    77,586

Tax effects relating to other comprehensive income are as follows:

               2012                         2011
               Before    Tax    After     Before     Tax      After tax
                 tax                tax        tax
Currency
translation     (48,185)  -      (48,185)  (123,653)  -        (123,653)
differences
Cash flow       (22,972)  8,897  (14,075)  8,892      (4,191)  4,701
hedges
Other
comprehensive   (71,157)  8,897  (62,260)  (114,761)  (4,191)  (118,952)
income (after
tax)

CONSOLIDATED STATEMENT OF CASH FLOWS
(€ thousand)                                    Notes  2012       2011
Cash flows from operating activities                            
Consolidated net income                               147,965    193,128
                                                                     
Earnings from associated companies                       (3,051)     (1,572)
Dividends received from associated companies             1,582       2,586
Elimination of non-cash and non-operating
items:
- depreciation, amortisation and provisions              199,689     173,457
- deferred taxes                                         (12,743)    (1,296)
- net (gain) loss from disposal of assets                (2,918)     (1,980)
- unrealised fair value gains and losses                 (1,619)     (1,116)
- other                                                  (34)        (177)
                                                               
Cash flows from operating activities                  328,871    363,030
                                                                     
Change in working capital from operating                 (21,412)    (11,186)
activities - net
                                                               
Net cash flows from operating activities (1)    27     307,459    351,844
                                                                     
Cash flows from investing activities
                                                                     
Outflows linked to acquisitions of fixed
assets:
- property, plant and equipment and intangible           (268,963)   (280,878)
assets
- financial investments                                  (4,203)     (10,695)
                                                                     
Inflows linked to disposals of fixed assets:
- property, plant and equipment and intangible           7,625       11,703
assets
- financial investments                                  3,429       2,954
                                                                     
Impact of changes in consolidation scope                 (10,646)    (23,725)
                                                               
Net cash flows from investing activities        28     (272,758)  (300,641)
                                                                     
Cash flows from financing activities
Dividends paid                                           (87,993)    (122,031)
Increases in capital                                     3,870       6,556
Increases in borrowings                                  108,334     212,860
Redemptions of borrowings                                (177,197)   (64,089)
Acquisitions of treasury shares                          (10,472)    (17,307)
Disposals - allocations of treasury shares               14,165      17,348
                                                               
Net cash flows from financing activities              (149,293)  33,337
Impact of changes in foreign exchange rates           (4,342)    (27,233)
Change in cash position                               (118,934)  57,307
Net cash and cash equivalents – opening          29      344,013     286,706
balance
Net cash and cash equivalents – closing          29      225,079     344,013
balance

(1) Including cash flows from income taxes: €(59,982) thousand in 2012 and
€(64,837) thousand in 2011.
Including cash flows from interest paid and received: €(30,434) thousand in
2012 and €(33,510) thousand in 2011.

STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY
                                                                                                           Total
                          Additional   Treasury   Consolidated   Translation   Shareholders'   Minority    shareholders'
(€ thousand)   Capital  paid-in     shares    reserves      reserves     equity         interests  equity and
                          capital                                                                          minority
                                                                                                           interests
At December    179,600  11,207      (85,297)  2,019,257     16,212       2,140,979      416,123    2,557,102
31, 2010
Consolidated                                   163,607                    163,607        29,521     193,128
net income
Other
comprehensive                              6,243         (92,264)     (86,021)       (32,931)   (118,952)
income
Total
comprehensive                              169,850       (92,264)     77,586         (3,410)    74,176
income
Dividends                                        (65,946)                     (65,946)        (56,323)    (122,269)
paid
Net change in
treasury                               1,407      (896)                        511                         511
shares
Changes in
consolidation                                     (24,182)                     (24,182)        (9,040)     (33,222)
scope
Increases in                                      (6,560)                      (6,560)         11,774      5,214
share capital
Other changes                              (10,624)                  (10,624)       (10,070)   (20,694)
At December    179,600  11,207      (83,890)  2,080,899     (76,052)     2,111,764      349,054    2,460,818
31, 2011
Consolidated                                      129,087                      129,087         18,878      147,965
net income
Other
comprehensive                              (14,798)      (32,321)     (47,119)       (15,141)   (62,260)
income
Total
comprehensive                              114,289       (32,321)     81,968         3,737      85,705
income
Dividends                                         (66,039)                     (66,039)        (22,124)    (88,163)
paid
Net change in
treasury                               5,209      (994)                        4,215                       4,215
shares
Changes in
consolidation                                     (749)                        (749)           (154)       (903)
scope
Increases in                                      (666)                        (666)           4,239       3,573
share capital
Other changes                              305                       305            (606)      (301)
At December                                                                                         
31, 2012                                                                                          
                179,600   11,207       (78,681)   2,127,045      (108,373)     2,130,798       334,146     2,464,944

Group translation differences at December 31, 2012 are broken down by currency
as follows (€ thousand):

US Dollar:            (5,117)
Swiss franc:           135,370
Turkish new lira:      (77,173)
Egyptian pound:        (39,427)
Kazakh tengue:         (31,741)
Mauritanian uuguiya:   (4,333)
Indian rupee:         (85,952)
                       (108,373)

The audited consolidated financial statements for the 2012 financial year and
     the notes are available in their entirety on the Company’s web site
                                 www.vicat.fr

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

Contact:

Investor Relations Contact:
Stéphane Bisseuil, TEL: +33 (0)1 58 86 86 13
s.bisseuil@vicat.fr
or
Press Contact:
Clotilde Huet, TEL: +33 (0)1 58 86 86 26
clotilde.huet@tbwa-corporate.com
 
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