Vicat : Sales for the Nine Months to 30 September 2013

  Vicat : Sales for the Nine Months to 30 September 2013

  *Consolidated sales up 3.2% at constant scope and exchange rates
  *Upbeat business trends in the United States, Turkey, Switzerland and
    Kazakhstan
  *Continued ramp-up of Group activity in India in a difficult competitive
    market environment
  *Overall business trends confirmed in the third quarter, with a rise of
    3.1% at constant scope and exchange rates marked by a stabilisation of the
    activity in France
  *Solid financial position, with a healthy balance sheet and debt under
    control

Business Wire

PARIS LA DÉFENSE -- November 5, 2013

Regulatory News :

The Vicat group (Paris:VCT) (NYSE Euronext Paris: FR0000031775 – VCT) today
reported its sales for the nine months ended 30 September 2013, which were
stable compared with the same period of the previous year at €1,740 million.
At constant scope and exchange rates, the Group’s sales recorded an increase
of 3.2% compared with the same period of 2012.

Consolidated sales by business segment:

                Nine-months  Nine-months  % change
(€ million)     2013         2012         Reported  At constant scope and
                                                        exchange rates
Cement           855           879           -2.8%     +1.4%
Concrete &       655           610           +7.4%      +8.3%
Aggregates
Other Products   230           241           -4.4%      -3.3%
& Services
                                                
Total           1,740        1,731        +0.6%     +3.2%

Commenting on these figures, the Group’s CEO said: “Vicat’s performance over
the first nine months provides further evidence of the pertinence of the
Group’s balanced expansion strategy. In an economic environment still varying
from one region to another, Vicat posted an encouraging top-line increase at
constant scope and exchange rates. The United States, Switzerland, Turkey and
Kazakhstan again delivered healthy business levels while political and
security factors in Egypt and competition in India and Senegal continued to
weigh on the Group’s performance in these regions. Although third-quarter
sales dropped back 1.5% owing to a highly negative currency effect, the
Group’s performance at constant scope and exchange rates remained solid (up
3.1%) owing in particular to a return to a stabilising of its global level of
activity in France. Against this backdrop, Vicat is confidently pursuing its
strategy of maximising its cash flow and paying down its debt.”

Consolidated sales came to €1,740 million in the first nine months of the 2013
financial year, representing an increase of 0.6% and growth of 3.2% at
constant scope and exchange rates compared with the same period of 2012.
A breakdown of operational sales between the Group’s various business segments
shows a small decrease in the Cement division’s contribution, which stood at
51.1% of operational sales, down from 52.6% in the same period of first nine
months of 2012. Concrete & Aggregates generated 33.5% of operational sales,
compared with 31.9% in the first nine months of 2012. Other Products &
Services posted a stable contribution of 15.3% of 2013 operational sales,
compared with 15.4% in the equivalent period of 2012.

Consolidated sales during the third quarter of 2013 stood at €593 million,
down 1.5% compared with the same period of 2012, but up 3.1% at constant scope
and exchange rates. Over the same period, Cement sales at constant scope and
exchange rates edged 1.6% lower, while Concrete & Aggregates sales moved up
10.8%. Other Products and Services sales were almost stable (down 0.7%).

In this press release, and unless indicated otherwise, all changes are
calculated based on the first nine months of 2013 by comparison with the first
nine months of 2012 and are stated at constant scope and exchange rates.

1. Geographical breakdown of consolidated sales in the nine months to 30
September 2013

1.1. France

                   Nine-months      Nine-months     % change
(€ million)        2013             2012            Reported  At constant
                                                                  scope
                                                                
Consolidated       651              663             -1.9%     -2.7%
sales

Sales in France posted a decline of 2.7% over the first nine months of 2013.
The decline during the period, which had one business day less than the
previous year, was due mainly to the slowdown in the construction market and
unfavourable weather conditions, which affected the first half of the year.
Conversely, the global level of activity stabilised in France with operational
sales stable at 0.6% and consolidated sales up 1% in the third quarter.

  *In Cement,  sales contracted by 7.4%. Operational sales (before
    inter-sector eliminations) fell back 5.1%, reflecting a gradual, yet
    steady improvement in business levels since the first quarter of the year.
    This top-line contraction was the product of a decline of just over 6% in
    volumes given the unfavourable weather conditions at the beginning of the
    year and a downbeat economic and industry environment throughout the
    period. In spite of this backdrop, the average selling price moved higher.
    During the third quarter, operational sales were still down by 3% while
    consolidated sales were almost stable (down 0.9%).
  *In Concrete & Aggregates, sales grew by 2.8%. Concrete volumes moved up
    2.8%, with aggregates volumes rising by 6.5%. The average selling price
    eroded slightly in Concrete but moved higher in Aggregates. During the
    third quarter, sales rose by 3.6% on the back of a marked increase in
    aggregates volumes.
  *In Other Products & Services, sales fell back 7.7% compared with the
    beginning of the year and by 2.5% in the third quarter. As the year has
    gone on, business trends have gradually narrowed the gap on the previous
    year’s levels.

1.2. Europe (excluding France)

              Nine-months  Nine-months  % change
(€ million)   2013         2012         Reported  At constant scope and
                                                      exchange rates
                                                    
Consolidated  318          307          +3.6%     +5.8%
sales

In Europe, excluding France, sales rose by 5.8% at constant scope and exchange
rates and by 7.0% in the third quarter.

In Switzerland, the Group’s sales grew to €303million over the first nine
months of the year. During the third quarter, the strong business performance
in Switzerland continued, with sales moving up to €116million.

  *In Cement, consolidated sales picked up to €84million amid still highly
    competitive conditions, causing selling prices to fall slightly from one
    year to the next. In the third quarter, healthy momentum in the Swiss
    market continued with sales rising by 3.4% under the positive trend
    created by new infrastructure projects.
  *In Concrete & Aggregates, sales grew by 9.8% over the period as a whole.
    Selling prices remained almost unchanged in Concrete and declined in
    Aggregates. The Group’s third-quarter sales recorded strong growth (up
    18.6%) as a result of higher volumes in both Concrete and Aggregates.
  *Precast sales grew by 3.4% over the first nine months of the year and by
    1.2% in the third quarter when competitive pressures intensified slightly.

In Italy, sales dropped by 18.0% over the first nine months of the year and by
22.0% in the third quarter. Business has been severely depressed since the
beginning of the year by a highly challenging macroeconomic and industry
environment. The steady rise in selling prices resulting from the selective
business policy and the development of export sales did not make up for the
steep decline in volumes (down 25%) that deepened in the third quarter (down
29%).

1.3. United States

              Nine-months  Nine-months  % change
(€ million)   2013         2012         Reported  At constant scope and
                                                      exchange rates
                                                    
Consolidated  166          151          +10.4%    +13.7%
sales

In the United States, sales climbed 13.7% and surged 20.6% in the third
quarter. This performance reflected the progressive recovery in US economic
conditions over the past few quarters. Volume growth continued, coupled with
moderate rises in selling prices, even if these rises vary from one region to
another.

  *In Cement, consolidated sales recorded a substantial increase of 5.3% in
    the first nine months of the year (operational sales up 9.1%). Volumes
    continued to move higher (2.4%), with good growth in California
    underpinned by the start-up of infrastructure projects, which helped to
    fully offset the slight contraction recorded in the South-East, owing
    largely to poor weather conditions. Selling prices edged moderately higher
    in California, but to a far more significant extent in the South-East.
    During the third quarter, consolidated sales moved up 7.3% (operational
    sales up 11.2%).
  *In Concrete, sales advanced by 17.5%. This performance was driven by a
    rise of 12.5% in volumes, reflecting a significant increase in the
    South-East and to a lesser extent in California. This volume growth was
    accompanied by a solid increase in selling prices in both areas. Sales
    growth continued into third quarter (up 26.8%).

1.4. Turkey, India and Kazakhstan

              Nine-months  Nine-months  % change
(€ million)   2013         2012         Reported  At constant scope and
                                                      exchange rates
                                                    
Consolidated  361          332          + 8.8%    + 17.3%
sales

In Turkey, sales rose 19.5% to €183million. After a first half in which the
Group, like the entire industry, made the most of the supportive weather
conditions and an upbeat macroeconomic and industry environment, sales climbed
more moderately in the third quarter (up 12.6%) owing chiefly to a high base
of comparison.

  *In Cement, consolidated sales moved up 17.2% over the period. This trend
    came from a significant rise in volumes together with a rise in selling
    prices. During the third quarter, the top line expanded by 14.6% on the
    back of significant volume growth and a still positive pricing
    environment.
  *Concrete & Aggregates sales rose by 23.1%. Growth in Concretes &
    Aggregates volumes was supported by work on major housing projects,
    particularly in the Ankara region. During the third quarter, sales rose
    more moderately (up 9.5%) owing chiefly to a high base of comparison,
    since the large Ankara projects began during the second half of 2012.

In India, the Group’s sales rose by 12.5% to €119million during the first
nine months of 2013 after taking into account the elimination of sales and
volumes of the first quarter, prior to the effective start-up of the Vicat
Sagar plant. With the start-up of Vicat Sagar, volumes posted a significant
increase of close to 25%, with cement deliveries of the Group totalling over
2.3million tonnes. Conversely, competition remained very fierce throughout a
period marked by a slowdown in investment in infrastructure ahead of the
elections due to be held at the end of the first half of 2014. In this
environment, selling prices remained highly volatile and recorded a steep
decline over the period as a whole.
During the third quarter, the Group’s sales in India posted a 14.6% increase,
underpinned by volume growth of 24%.

In Kazakhstan, a high-potential market, the Group pursued its deployment, with
volume growth running at over 9% in a favourable pricing environment. All in
all, sales for the period rose by 21.2% to €59million. This performance
reflects the positive momentum in a rapidly-expanding market, the progressive
efficiency improvement of the manufacturing facilities and gradual expansion
in the areas served by the Group.
Business contracted slightly, by 4.9%, during the third quarter. After a
highly positive first half, delivery volumes declined in that quarter owing to
maintenance operations made to the production facilities and to low levels of
stock over the summer. The pricing environment remained supportive and made up
for part of this decline.

1.5. Africa and Middle East

              Nine-months  Nine-months  % change
(€ million)   2013         2012         Reported  At constant scope and
                                                      exchange rates
                                                    
Consolidated  245          278          -12.1%    -8.4%
sales

In the Africa and Middle East region, sales declined by 8.4% over the first
nine months and by 12.9% during the third quarter.

In Egypt, sales fell back 18.3% over the period owing to a significant decline
in volumes offset partly by a rise in average selling prices during the first
nine months of 2013. Since the beginning of the year, the Group’s operations
have been affected by a challenging security environment that has disrupted
operation of the plant and marketing of its products. During the third
quarter, the second wave of political unrest across the country coupled to the
Ramadan period sparked a hefty top-line contraction (34.1%) particularly
during August when action was taken by Government forces to restore security
in the Sinai region. Since the launch of the offensive, the gradual
restoration of security has enabled the Group to achieve a significant
improvement during September. That said, deliveries remain restricted by the
measures taken to maintain order in a context marked by the persistent lack of
visibility in the short term.

In West Africa, sales fell by 3.9%. Since the beginning of the year, cement
volumes have held stable (down 0.5%). Although selling prices were broadly
stable on a sequential basis, they are still below their 2012 level. During
the third quarter, sales recorded a 3.4% decline.

2. Breakdown of nine-month 2013 sales by division

2.1. Cement

                   Nine-months  Nine-months  % change
(€ million)        2013         2012         Reported  At constant scope
                                                           and exchange rates
Volume (thousands   13,679        13,485        +1.4%    
of tonnes)
Operational sales   1,026         1,043         -1.7%      +2.1%
Eliminations        (171)         (164)
Consolidated       855          879          -2.8%     +1.4%
sales

Consolidated Cement sales dropped by 2.8% but rose by 1.4% at constant scope
and exchange rates. Volumes grew by 1.4% over the period.
During the third quarter, consolidated sales declined by 8.1% and by 1.6% at
constant scope and exchange rates. Third-quarter volumes contracted by 3.1%.

2.2. Concrete & Aggregates

                                                     % change
                            Nine-months   Nine-months              At constant
(€ million)                2013         2012         Reported  scope and
                                                                   exchange
                                                                   rates
Concrete volumes (km^3)     6,405         5,805         +10.3%   
Aggregates volumes          17,181        16,015        +7.3%
(thousands of tonnes)
Operational sales           673           633           +6.3%      +7.3%
Eliminations                (18)          (23)
Consolidated sales         655          610          +7.4%     +8.3%

Consolidated Concrete & Aggregates sales grew by 7.4% and by 8.3% at constant
scope and exchange rates.
Concrete delivery volumes rose by 10.3% over the period, with Aggregates
volumes moving up by 7.3%.
In the third quarter, consolidated sales rose by 7.6% and by 10.8% at constant
scope and exchange rates. At the same time, volumes grew by 6.3% in Concrete
and 14.4% in Aggregates.

2.3. Other Products & Services

               Nine-months  Nine-months  % change
(€ million)    2013         2012         Reported  At constant scope and
                                                       exchange rates
                                                     
Operational     307           306           +0.4%      +1.9%
sales
Eliminations    (77)          (65)
Consolidated   230          241          -4.4%     -3.3%
sales

Consolidated Other Products & Services sales declined by 4.4% and by 3.3% at
constant scope and exchange rates. During the third quarter, consolidated
sales fell by 2.0% and by 0.7% at constant scope and exchange rates.

3. Trends in financial structure

Vicat’s financial position remains very healthy. Gearing was 51.3% at 30
September 2013, versus 53.3% at 30 June 2013.

Bank covenants do not pose a threat to either the Group's financial position
or its balance sheet liquidity. Vicat meets all the ratios in the covenants
laid down in financing agreements.

4. Outlook for 2013 by geographical region

The Vicat Sagar greenfield plant in India became operational in December 2012,
marking the end of an ambitious investment programme that has considerably
extended the Vicat Group's geographical reach 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, which is likely to lead to a further fall in volumes in a
    continued favourable price environment.
  *In Switzerland, the overall operating environment is likely to remain
    positive, with volumes expected to improve.
  *In Italy, the market remains difficult in an improving pricing
    environment. Given current levels of cement consumption, volumes should
    very gradually stabilise and selling prices begin to recover.
  *In the United States, the Group anticipates further improvement in its
    business, in terms of both volumes and prices.
  *In Turkey, the improvement in the sector environment is continuing in
    2013. The Group should be able to take full advantage of its efficient
    production facilities and strong market positions.
  *In Egypt, the market remains disrupted by the current security troubles,
    even if it is improving, with volumes expected to fall but in a continued
    favourable price environment. The Group remains confident in the Egyptian
    market's positive outlook in the medium and long term.
  *In West Africa, volumes remain stable. The Group therefore intends to
    capitalise on its modern, efficient production base to expand sales across
    the whole West Africa region.
  *In India, the Vicat Sagar greenfield plant became operational in late
    2012. The resulting commercial deployment in the first half of 2013, along
    with the ongoing ramp-up at Bharathi Cement, will gradually make the Group
    a major player in Southern India. The Group’s ramp-up in India takes place
    in a market that is nevertheless currently marked by a slowdown in cement
    consumption and low prices.
  *In Kazakhstan, the Group's ideal geographical location and highly
    effective production base enables it to take advantage of a market poised
    for solid growth in the construction and infrastructure sectors, in what
    is expected to remain a supportive pricing environment.

5. Conference call

To accompany the publication of its nine-month 2013 sales, the Vicat group is
organising a conference call that will be held in English on Wednesday 6
November 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 76 77 22 36
United Kingdom:   +44 (0)20 3427 1924
United States:    +1 646 254 3387

To listen to a playback of the conference call, which will be available until
7pm on 13 November 2013, dial one of the following numbers:

France:          +33 (0) 1 74 20 28 00
United Kingdom:   +44 (0)20 3427 0598
United States:    +1 866 932 5017

Access code: 9158211#

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).

Vicat group – Financial data - Appendices

Breakdown of nine-month sales to 30 September 2013 by business segment &
geographical region

                                       Other
              Cement  Concrete &   Products   Inter-sector  Consolidated
                         Aggregates    &           eliminations   sales
                                       Services
France         280     328          178        (136)         651
Europe
(excluding      135      126           98          (42)           318
France)
United States   74       119           -           (27)           166
Turkey,
Kazakhstan,     306      83            31          (59)           361
India
Africa and     230     16           -          (2)           245
Middle East
Operational    1,026   672          307        (265)         1,740
sales
Inter-sector   (171)   (18)         (77)       265           -
eliminations
Consolidated   855     655          230        -             1,740
sales

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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 505539

RCS NANTERRE

Contact:

Vicat
Investor relations contact:
Stéphane Bisseuil: Tel.: + 33 (0) 1 58 86 86 13
stephane.bisseuil@vicat.fr
Press contacts:
Clotilde Huet: Tel.: +33 (0)1 58 86 86 26
clotilde.huet@tbwa-corporate.com