Vicat: 2015 Results

PARIS LA DÉFENSE--(BUSINESS WIRE)-- Regulatory News:

• EBITDA up +1.5% on a reported basis
• Consolidated net income stable at €143 million
• Capital expenditure under control
• Gearing improves to 40%
• Proposed dividend of €1.50 per share, unchanged

The Vicat group (Paris: VCT) (Euronext Paris: FR0000031775 – VCT) has today reported its 2015 results.

Audited condensed consolidated income statement:

(€ million)		2015		2014		Change (%)
						Reported		At constantscope andexchange rates
Consolidated sales		2,458		2,423		+1.5%		-4.4%
EBITDA*		448		442		+1.5%		-4.3%
EBITDA margin (%)		18.2		18.2
EBIT**		250		263		-4.8%		-10.4%
EBIT margin (%)		10.2		10.9
Consolidated net income		143		144		-0.6%		-6.9%
Net margin (%)		5.8		5.9
Net income, Group share		121		128		-5.4%		-11.0%
Cash flow		346		321		+7.9%		+1.9%

*EBITDA: sum of gross operating income and other income and expenses on ongoing business.**EBIT: EBITDA less net depreciation, amortization and provisions on ongoing business.

Commenting on these figures, the Group’s Chairman and CEO said: “The year was marked by strong commercial momentum in the United States, confirming its recovery, and in India, where the growth potential remains very important. In France, the historical market of the Group, the market is gradually stabilising at a historically low level. Vicat intends to leverage the investments made in recent years and its strong market positions to maintain its strong cash generation and reduce its debt.”

In this press release, and unless indicated otherwise, all changes are stated on a year-on-year basis (2015/2014), and at constant scope and exchange rates.

The audited consolidated financial statements for the 2015 financial year and the notes are available in their entirety on the Company’s web site www.vicat.fr

1. Income statement

1.1 Consolidated income statement

Consolidated sales in the 2015 financial year came to €2,458 million, representing an increase of +1.5% or a decrease of -4.4% at constant scope and exchange rates compared with 2014.

Consolidated EBITDA grew +1.5% compared with 2014 to €448 million, but declined -4.3% at constant scope and exchange rates. The Group’s EBITDA improved during the second half, with an increase of +4.7% on a reported basis and of +0.8% at constant scope and exchange rates compared with the second half of 2014.

The decline in EBITDA at constant scope and exchange rates over the full year was essentially derived from:

• a smaller contribution from France, mainly as a result of the significant fall in profitability in the Concrete & Aggregates business owing to a contraction in volumes and a reduction in selling prices;
• a strong fall in EBITDA in Egypt owing to the sharp increase in energy costs over the first nine months of 2015 and the downturn in prices from the second quarter onwards;
• a smaller contribution from Switzerland, impacted by the decline in volumes and the drop in prices, especially in the second half of the year;
• a contraction in EBITDA in Turkey owing to the lower profitability of the Cement business as a result of disruption caused by the restart of the Bastas plant’s kiln 1, the dip in prices in the markets served by the Konya plant, and lower profitability in Concrete & Aggregates given the lower sales recorded in this business;
• and, lastly, a small decline in the contribution from West Africa and Kazakhstan.

These negative factors were offset partly by:

• a strong improvement in the Group’s performance in India given the selective business strategy adopted, which drove a significant recovery in selling prices, thereby making up to a very large extent for the impact of lower volumes;
• a very substantial increase in EBITDA in the United States on the back of solid growth in volumes and selling prices.

Taking these factors into account, the EBITDA margin on consolidated sales was stable compared with 2014 at 18.2%. In the second half, the EBITDA margin improved by close to one percentage point to 20.2% from 19.4% in the second half of 2014.

Consolidated EBIT settled at €250 million. It declined -10.4% over the period at constant scope and exchange rates, chiefly as a result of a higher charge for depreciation and amortization, with currency effects partly contributing to this decline. The EBIT margin was 10.2% in 2015, compared with 10.9% in 2014.

Net financial expense improved by +17.0% on a reported basis to €(48) million. This improvement came from the decrease in the average interest rate applied to gross debt to 3.59% in 2015, compared with 4.23% in 2014. The key factor was the early repayment of debt by Kalburgi and Gulbarga Power in India refinanced by Vicat SA in floating-rate euro-denominated debt. The annual interest rate saving on this debt stood at close to 10%.

The +7.1% increase in tax expense on a reported basis compared with the previous year to €(63.7) million reflected the growth of +1.6% in income before tax and also an increase in the tax rate to 31.6% of income before tax in 2015, compared with 30.0% in 2014. The main factor of this increase in tax pressure came from a change in the geographical sales mix of the Group’s earnings, with a smaller contribution from countries with a tax exemption or a low tax rate, the increase in tax rates in India and a new withholding tax on dividends paid by certain subsidiaries outside France.

Consolidated net income was €142.7 million, down -6.9% at constant scope and exchange rates.The net margin came to 5.8% of consolidated sales, compared with 5.9% in 2014.

Net income, Group share came to €121.5 million, or €2.71 per share in 2015, compared with €2.86 in 2014.

Gearing (net debt-to-equity ratio) stood at 40.0% at the end of 2015 versus 41.6% at December 31, 2014 and 46.8% at June 30, 2015.

On the strength of these full-year 2015 results and given its confidence in the Group’s ability to pursue further development, the Board of Directors decided at its March 9, 2015 meeting 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 29, 2015.

1.2 Income statement broken down by geographical region

1.2.1 Income statement, France

(€ million)		2015		2014		Change (%)
						Reported		At constant scope
Consolidated sales		777		831		-6.5%		-6.5%
EBITDA		113		134		-15.7%		-15.7%
EBIT		55		84		-33.9%		-33.9%

Consolidated sales in France fell -6.5% at constant scope and exchange rates to €777 million. Consolidated sales returned to brisk growth of +4.0% in the fourth quarter, thanks to far more supportive weather conditions than at the beginning of the year, but also confirming the gradual stabilisation in the market at a historically low level.Over the full year, EBITDA contracted by -15.7% to €113 million, with the EBITDA margin on sales slipping to 14.5% from 16.1% in 2014. After a significant decline of close to -28% in the EBITDA generated in the first half, the second half brought a significant improvement in the trend, with a modest decline in EBITDA of less than -4%.

• In the Cement business, operational sales declined -4.8% over the period as a whole. This decline was chiefly attributable to a volume contraction of less than -2% and a slight decrease in average selling prices. Taking these factors into account, EBITDA declined by just -1.7%. The EBITDA margin on operational sales rose by close to one percentage point over the year. This improvement was driven by a significant increase in the EBITDA margin in the second half, as the volume environment for this business was far more supportive.
• In the Concrete & Aggregates business, operational sales fell back -11.3% over the full year. The volume contraction over the period was close to -10% in Concrete and slightly over -9% in Aggregates. Selling prices posted a small increase in Aggregates, but declined slightly in Concrete. As a result, the division’s EBITDA in France fell very sharply (-61.4%), with a decline in the EBITDA margin on operational sales of over three percentage points.
• In the Other Products & Services business, operational sales fell -2.2% over the full year. EBITDA declined by more than -36% over the full year, with the EBITDA margin on operational sales down close to two percentage points.

1.2.2 Income statement for Europe excluding France

(€ million)		2015		2014		Change (%)
						Reported		At constant scope andexchange rates
Consolidated sales		425		418		+1.7%		-10.2%
EBITDA		102		103		-0.3%		-12.1%
EBIT		76		70		+7.5%		-5.4%

Full-year 2015 sales recorded in Europe excluding France rose by +1.7% on a reported basis, but fell -10.2% at constant scope and exchange rates. EBITDA was stable on a reported basis (-0.3%), but declined -12.1% at constant scope and exchange rates.

In Switzerland, the Group’s consolidated sales grew by +3.1% in 2015. At constant scope and exchange rates, they declined by -9.4%. EBITDA fell back -0.8% on a reported basis and -12.8% at constant scope and exchange rates, reflecting a contraction in the EBITDA margin on consolidated sales of around one percentage point to 24.4% vs. 25.3% in 2014.

• In the Cement business, operational sales rose by +1.1%, but declined -11.2% at constant scope and exchange rates. Driving this decline was a decrease in volumes and in average prices in a contracting construction market, together with fiercer competition. As a result, EBITDA declined by -16.0%, with the EBITDA margin on operational sales dropping almost two points over the full year.
• In the Concrete & Aggregates business, operational sales grew +2.6%, but they declined -9.8% at constant scope and exchange rates. After a record performance in 2014, the top-line contraction in 2015 was the result of a dip in volumes of over -11% in Concrete and -7% in Aggregates, offset partly by a very slight improvement in average selling prices. As a result of these factors, EBITDA dropped -7.0% at constant scope and exchange rates. The EBITDA margin on operational sales recorded a small increase of close to one percentage point.
• Consolidated sales recorded by the Precast business fell -8.4% at constant scope and exchange rates owing chiefly to a drop in sales of rail sleepers following completion of the Gothard tunnel in 2014 and the later start-up of track replacement and modernization work. As a result of these factors, EBITDA declined by -13.5%.

In Italy, consolidated sales decreased -27.5%. This decline was the result of a steep contraction in volumes sold (over -25%) in a domestic market still very badly affected by the macroeconomic and industry environment and also reflected the Group’s selective business policy intended to keep a tight rein on its credit risk. These factors led to a small dip in average selling prices. Even so, given the more favourable conditions for purchasing clinker, EBITDA grew by +20.6% and the EBITDA margin rose by close to seven percentage points over the full year.

1.2.3 Income statement for the United States

(€ million)		2015		2014		Change (%)
						Reported		At constant scopeand exchange rates
Consolidated sales		342		247		+38.7%		+15.9%
EBITDA		42		17		+149.6%		+108.5%
EBIT		17		(5)		+412.6%		+361.0%

Business in the United States again recorded strong growth in a firm macroeconomic environment that was supportive for the construction sector. As a result, the Group’s consolidated sales rose +38.7% and +15.9% at constant scope and exchange rates. The Group delivered a very strong increase in its EBITDA to €42 million over the full year (up +108.5%) and positive EBIT of €17 million, compared with a loss of €(5) million in 2014.

• In the Cement business, full-year operational sales grew by +23.6% at constant scope and exchange rates (up +48.0% on a reported basis). This performance was driven by volume growth of close to +15% overall, as well as a price increase in both regions. As a result of these factors, the Group’s EBITDA rose by +133.3% at constant scope and exchange rates, with a near-doubling in the EBITDA margin on operational sales in this business.
• In the Concrete business, consolidated sales recorded an increase of +12.2% in 2015 at constant scope and exchange rates on the back of healthy volume growth of over +7%. Average selling prices also rose in both regions. As a result of these factors, the Group enjoyed very significant growth in its EBITDA (+58.7% at constant scope and exchange rates), and an improvement of more than one percentage point in its EBITDA margin.

1.2.4 Income statement for Asia (Turkey, India, Kazakhstan)

(€ million)		2015		2014		Change (%)
						Reported		At constant scopeand exchange rates
Consolidated sales		568		530		+7.1%		+3.1%
EBITDA		135		112		+20.9%		+16.1%
EBIT		85		67		+27.8%		+23.5%

Sales across Asia as a whole came to €568 million, up +7.1% on a reported basis and up +3.1% at constant scope and exchange rates. The EBITDA generated in the region posted a significant increase of +16.1% at constant scope and exchange rates owing to a tangible improvement in the operating margin (EBITDA/consolidated sales), which stood at 23.8% vs. 21.1% in 2014. This performance was driven by the improvement in India, offsetting the erosion in margins seen in Turkey and Kazakhstan.

In Turkey, full-year consolidated sales came to €234 million, up +6.4% at constant scope and exchange rates. Conversely, EBITDA declined by -9.1%, with the EBITDA margin down to 21.6% of consolidated sales from 25.3% in 2014.

• In the Cement business, the Group recorded an increase in its full-year operational sales of +3.5% at constant scope and exchange rates. This performance reflected a rise in sales volumes of close to +5% over the full year. Selling prices dipped very slightly. As a result of these factors, the division’s EBITDA fell back -6%, and the EBITDA margin on operational sales dropped by almost 3 percentage points. This contraction was attributable to the fall in average selling prices and to disruption caused by the modernisation and restart of kiln 1 at the Bastas plant. Lastly, the high level of activity in the second half obliged the Group to run down its inventories significantly.
• The operational sales recorded by the Concrete & Aggregates business rose +17.1% at constant scope and exchange rates (up +17.8% on a consolidated basis). This healthy business growth was underpinned by an increase of close to +22% in Concrete volumes and +15% in Aggregates, amid slightly weaker pricing conditions. EBITDA declined -67.4% over the full year owing to the additional transport costs caused by the latest regulatory changes and as a result of the remoteness of some major construction projects. As a result, the division’s EBITDA margin on operational sales contracted by almost 3 percentage points.

In India, the Group posted consolidated full-year 2015 sales of €268 million, up +2.3% at constant scope and exchange rates. The strong increase of close to +16% in average selling prices over the period helped to make up for a contraction in Cement volumes of around -11%. On this basis, EBITDA grew by a very strong +88.9% at constant scope and exchange rates. The EBITDA margin on operational sales recorded a very strong increase to 24.1%, up from 13.0% in 2014 in spite of a persistently low level of plant capacity utilization over the period (around 50%).

Kazakhstan recorded a -5.4% decrease in its consolidated sales at constant scope and exchange rates to €65 million. Volumes advanced by more than +5% over the full year, which was not sufficient to offset the full impact of the steep cut in selling prices introduced at the beginning of the year. As a result, EBITDA fell -14.2% at constant scope and exchange rates. The EBITDA margin on consolidated sales came to 30.4%, representing a decline of around three percentage points.

1.2.5 Income statement for Africa and the Middle East

(€ million)		2015		2014		Change (%)
						Reported		At constant scopeand exchange rates
Consolidated sales		346		397		-12.9%		-16.6%
EBITDA		56		77		-27.4%		-28.9%
EBIT		17		48		-63.9%		-63.5%

In the Africa and Middle East region, consolidated sales came to €346 million, down -16.6% at constant scope and exchange rates. EBITDA fell back -28.9% to €56 million.

In Egypt, full-year sales came to €113 million, down -18.5% at constant scope and exchange rates. This trend was the product of a significant reduction in selling prices and a volume contraction of over -7% in the period. Taking these factors into account and also the impact of higher energy costs over the first nine months of the year before the two coal grinders entered service, EBITDA declined by -79.9% at constant scope and exchange rates.

In West Africa, sales totalled €232 million. This represented a decline of -15.6% at constant scope and exchange rates from a very high level of activity in 2014. This reduction mainly reflected the impact on the competitive landscape of the start-up of a newcomer’s facility in Senegal in early 2015. It resulted in a contraction in Cement volumes sold of close to -12% and a slight dip in average selling prices. As a result, the EBITDA generated by the Group in the region posted a decline of -8.8%, albeit with a slight increase in the margin on operational sales, thanks to the decline in fuel costs and cost-cutting measures taken to adapt to the new environment.

1.3 Income statement broken down by business segment

1.3.1 Cement

(€ million)		2015		2014		Change (%)
						Reported		At constant scopeand exchangerates
Volume (thousandsof tonnes)		19,792		20,530		-3.6%
Operational sales		1,495		1,483		+0.8%		-4.8%
Consolidatedsales		1,256		1,261		-0.4%		-5.9%
EBITDA		362		341		+6.1%		+0.9%
EBIT		214		220		-2.9%		-7.0%

Consolidated sales in the Cement business were stable (down -0.4%), but they declined -5.9% at constant scope and exchange rates.This top-line reduction at constant scope and exchange rates was primarily attributable to a decline in volumes sold of -3.6%, since the strength of business trends in the United States and Turkey was not enough to make up for the contraction in Europe, West Africa, Egypt and India. After a significant decline in volumes in the French market during the first half of 2015 (close to -8%), the second half of the year brought a clear-cut rebound in volumes sold (over +5%) owing to supportive weather conditions at the end of the year and cement consumption stabilising at a historically low level.Trends in average selling prices, which recorded a small overall decline, were mixed across the regions in which the Group is present. They recorded a solid increase in India and the United States, helping to offset the small declines in France, Italy, Turkey and West Africa and larger falls in Egypt, Kazakhstan and Switzerland.

EBITDA came to €362 million, representing an increase of +0.9% at constant scope and exchange rates. This trend reflected a significant contraction in the contribution from Egypt, France, and Switzerland and, to a lesser extent, from Kazakhstan and Western Africa. The decline in these regions was offset by the strong increases in India and the United States.The EBITDA margin on operational sales posted a significant improvement over the year to 24.2% from 23.0% in 2014. This performance reflected significant margin improvement in India and the United States and a more moderate upswing in France, Italy and West Africa, helping to offset the strong fall in Egypt, and smaller contractions in Kazakhstan, Turkey and Switzerland.Lastly, EBIT decreased -7.0% at constant scope and exchange rates to €214 million from €220 million in 2014.

1.3.2 Concrete & Aggregates

(€ million)		2015		2014		Change (%)
						Reported		At constant scopeand exchangerates
Concrete volumes(thousands of m3)		8,535		8,273		+3.2%
Aggregates volumes(thousands of tonnes)		20,945		21,215		-1.3%
Operational sales		914		882		+3.6%		-2.8%
Consolidated sales		892		860		+3.7%		-2.8%
EBITDA		61		71		-13.5%		-21.8%
EBIT		18		28		-37.1%		-50.1%

Consolidated sales in the Concrete & Aggregates business rose slightly (+3.7%), but dipped -2.8% at constant scope and exchange rates.Concrete volumes grew by +3.2% over the period, but Aggregates volumes declined by -1.3%. This performance reflected a volume contraction in France and Switzerland, partially offset by strong growth in the United States and Turkey.Average selling prices moved slightly lower overall, with a decline in France in Concrete, partly offset by an increase in Aggregates, and in both Concrete and Aggregates in Turkey. Conversely, they moved significantly higher in the United States in Concrete and more moderately so in Switzerland.As a result of these factors, EBITDA fell -21.8% at constant scope and exchange rates. Accordingly, the EBITDA margin on operational sales dropped back to 6.7% from 8.1% in 2014. The contraction was significant in Turkey and France and was offset only partially by an improvement in the United States and Switzerland.EBIT contracted by -50.1% at constant scope and exchange rates.

1.3.3 Other Products & Services

(€ million)		2015		2014		Change (%)
						Reported		At constant scopeand exchangerates
Operational sales		400		399		+0.4%		-3.6%
Consolidated sales		310		301		+2.9%		-2.6%
EBITDA		25		30		-15.8%		-22.6%
EBIT		19		15		+27.9%		+15.7%

Consolidated sales in the Other Products & Services business grew +2.9%, but decreased -2.6% lower at constant scope and exchange rates.

EBITDA fell from €30 million in 2014 to €25 million in 2015, and the EBITDA margin on operational sales settled at 6.2% from 7.4% in 2014. Conversely, EBIT moved up +15.7% to €19 million.

2. Balance sheet and cash flow statement

At December 31, 2015, the Group had a solid financial position.

Consolidated equity rose by +€84 million to end the year at €2,544 million, compared with €2,459 million at December 31, 2014.

Net debt fell by €(4) million to €1,018 million at December 31, 2015 from €1,022 million at December 31, 2014.

As a result, gearing (net debt/consolidated equity) improved substantially and stood at 40.0% at the end of 2015, below the end-2014 figure of 41.6% and close to 7 percentage points lower than the 46.8% figure at June 30, 2015. The Group’s financial leverage ratio (net debt/EBITDA) came to 2.27x, down from 2.31x at December 31, 2014 and 2.72x at June 30, 2015.

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, 2015, Vicat complied with all financial ratios required by covenants in financing agreements.

The Group generated cash flow of €346 million during 2015 compared with €321 million during 2014, representing an increase of +7.9% on a reported basis and of +1.9% at constant scope and exchange rates.

Vicat’s capital expenditure amounted to €167 million in 2015, compared with €156 million in 2014. This increase reflected a broadly unchanged level of maintenance capex compared with 2014 and investments in Egypt to finalise construction of the two coal grinders, which entered service at the end of the third quarter of 2015, and in Turkey for the restart of the kiln 1 at the Bastas plant right at the end of the year.

Financial investments during 2015 amounted to €19 million, versus €74 million in 2014. In 2015, these largely consisted of various securities, loans and advances, whereas in 2014 they arose from share purchases, particularly in India, where the Group bought Sagar Cements’ 47% stake in Kalburgi.

The Group generated free cash flow of €133 million in 2015, as opposed to €148 million in 2014.

3. Outlook

In 2016, the Group expects further improvements in its performance, capitalising on continued growth in the United States and India, plus renewed growth in Egypt and, to a lesser extent, in France. In addition, the Group expects to continue to benefit from lower energy costs, particularly in Egypt. Lastly, the Group will continue in 2016 to pursue its policy of optimizing cash flows and reducing its level of debt.

For 2016, the Group provides the following guidance concerning its markets:

• In France, the Group expects macroeconomic conditions to stabilize, with a slight and very gradual improvement in the industry environment. In view of these factors, volumes are likely to rise very slightly over the full year in a globally unchanged pricing environment.
• In Switzerland, the Group’s business activities will continue to be impacted by an unfavourable pricing environment given the impact of the pressures observed in 2015, with the macroeconomic and industry environment still affected by the revaluation of the Swiss franc in early 2015. Volume trends may improve very gradually during the year.
• In Italy, volumes are likely to stabilize during the year at a historically low level of consumption amid a persistently challenging macroeconomic situation. Meanwhile, in light of the recent consolidation in this market and the Group’s selective sales and marketing policy, the trend in selling prices could be slightly more favourable.
• In the United States, volumes are expected to rise further, in line with the rate of sector recovery in the country. Selling prices should also increase in the two regions in which the Group operates.
• In Turkey, market trends are broadly expected to remain firm. The Group should capitalize fully on its strong positions in the Anatolian plateau and its efficient production facilities and also reap the benefit of the restart of its kiln 1 at its Bastas plant. Selling prices are expected to remain volatile amid fiercer competition.
• In India, the Group remains very confident about its ability to capitalize fully on the quality of its production facilities, staff and positions in a market that should benefit this year from an upturn in the macroeconomic environment and, more specifically, from the infrastructure investments that have been announced. In a context that should remain favourable for growth in cement consumption, prices – although likely to remain very volatile – should broadly be firm over the full year.
• In Kazakhstan, the Group will be able to leverage the quality of its manufacturing base and teams amid persistently tight monetary conditions. The devaluations made during 2015 will have a significant impact on the Group’s financial performance in 2016. In this environment, competition is likely to remain fierce in a market that boasts real growth potential.
• In West Africa, in spite of a market that is set to continue growing at a brisk pace over the year, competition may again take a toll in 2016, owing to a pricing environment offering very little visibility in the short term.
• In Egypt, the gradual restoration of security should enable the Group to confirm the recovery in its business trends. The Group will reap the full benefit in 2016 of the introduction of coal following the late 2015 start-up of the two coal grinders. In view of these factors, the Group anticipates an improvement in its performance over the full year despite a pricing environment set to remain volatile.

4. Conference call

To accompany the publication of the Group’s full-year 2015 results, Vicat is holding a conference call in English that will take place on Tuesday, March 15, 2016 at 3pm Paris time (2pm London time and 9am New York time).To take part in the conference call live, dial one of the following numbers:France: +33(0)1 76 77 22 21United Kingdom: +44(0)20 3427 0503United States: +1212 444 0895

To listen to a playback of the conference call, which will be available until March 19, 2016, dial one of the following numbers:France: +33 (0)1 74 20 28 00United Kingdom: +44 (0)20 3427 0598United States: +1 347 366 9565Access code: 1407124#

Next report: First-quarter 2016 sales after the close on April 27, 2016.

ABOUT VICATThe Vicat Group has close to 7,900 employees working in three core divisions, Cement, Concrete & Aggregates and Other Products & Services, which generated consolidated sales of €2,458 million in 2015. The Group operates in eleven countries: France, Switzerland, Italy, the United States, Turkey, Egypt, Senegal, Mali, Mauritania, Kazakhstan and India. Over 68% of its sales are generated outside France.The Vicat Group is the heir to an industrial tradition dating back to 1817, when Louis Vicat invented artificial cement. Founded in 1853, the Vicat Group now operates three core lines of business: Cement, Ready-Mixed Concrete and Aggregates, as well as related activities.

Disclaimer:This press release may contain forward-looking statements. Such forward-looking statements do not constitute forecasts regarding results or any other performance indicator, but rather trends or targets. These statements are by their nature subject to risks and uncertainties as described in the Company’s annual report available on its website (www.vicat.fr). These statements do not reflect the future performance of the Company, which may differ significantly. The Company does not undertake to provide updates of these statements.Further information about Vicat is available from its website (www.vicat.fr).

VICAT GROUP

CONSOLIDATED FINANCIAL STATEMENTSFOR THE YEAR ENDED DECEMBER 31, 2015

Consolidated financial statements for the year ended December 31, 2015 as approved by the Board of Directorson March 9, 2016, to be presented to shareholders for approval in the April 29, 2016 AGM

The notes to the consolidated financial statements for the 2015 financial year are available on the Company’s web site www.vicat.fr

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT DECEMBER 31, 2015
ASSETS								December 31, 2015		December 31, 2014
(in thousands of euros)				Notes
NON CURRENT ASSETS
Goodwill				3				1,040,307		1,007,848
Other intangible assets				4				135,818		122,985
Property, plant and equipment				5				2,121,011		2,148,739
Investment properties				7				17,766		18,754
Investments in associated companies				8				49,854		43,815
Deferred tax assets				25				150,292		135,437
Receivables and other non current financial assets				9				122,672		98,891
Total non current assets								3,637,720		3,576,469
CURRENT ASSETS
Inventories and work in progress				10				407,192		394,205
Trade and other receivables				11				376,627		356,405
Current tax assets								53,715		37,206
Other receivables				11				150,725		141,200
Cash and cash equivalents				12				254,371		268,196
Total current assets								1,242,630		1,197,212
TOTAL ASSETS								4,880,350		4,773,681
LIABILITIES AND SHAREHOLDERS' EQUITY								December 31, 2015		December 31, 2014
(in thousands of euros)				Notes
SHAREHOLDERS' EQUITY
Capital				13				179,600		179,600
Additional paid in capital								11,207		11,207
Consolidated reserves								2,060,741		1,986,616
Shareholders' equity								2,251,548		2,177,423
Minority interests								292,160		281,870
Shareholders' equity and minority interests								2,543,708		2,459,293
NON CURRENT LIABILITIES
Provisions for pensions and other post employment benefits				14				134,729		125,862
Other provisions				15				95,938		86,141
Financial debts and put options				16				1,225,391		1,067,527
Deferred tax liabilities				25				228,019		219,656
Other non current liabilities								5,369		7,205
Total non current liabilities								1,689,446		1,506,391
CURRENT LIABILITIES
Provisions				15				13,204		10,526
Financial debts and put options at less than one year				16				114,884		281,730
Trade and other accounts payable								283,734		280,642
Current taxes payable								37,274		39,301
Other liabilities				18				198,100		195,798
Total current liabilities								647,196		807,997
Total liabilities								2,336,642		2,314,388
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY								4,880,350		4,773,681

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2015
								2015		2014
(in thousands of euros)				Notes
Sales				19				2,457,903		2,422,753
Goods and services purchased								(1,580,500)		(1,583,417)
Added value				1.22				877,403		839,336
Personnel costs				20				(407,395)		(373,289)
Taxes								(53,814)		(47,624)
Gross operating income				1.22 & 23				416,194		418,423
Depreciation, amortization and provisions				21				(195,128)		(176,710)
Other income and expenses				22				28,649		14,605
Operating income				23				249,715		256,318
Cost of net financial debt				24				(36,991)		(47,616)
Other financial income				24				23,148		11,456
Other financial expenses				24				(34,353)		(21,891)
Net financial income (expense)				24				(48,196)		(58,051)
Earnings from associated companies				8				4,876		4,745
Profit (loss) before tax								206,395		203,012
Income tax				25				(63,697)		(59,458)
Consolidated net income								142,698		143,554
Portion attributable to minority interests								21,219		15,075
Portion attributable to the Group								121,479		128,479
EBITDA				1.22 & 23				448,389		441,973
EBIT				1.22 & 23				250,484		263,132
Cash flow from operations				1.22				346,267		320,929
Earnings per share (in euros)
Basic and diluted Group share of net earnings per share				13				2.71		2.86

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2015
(in thousands of euros)				2015		2014
Consolidated net income				142,698		143,554
Other comprehensive income items
Items not recycled to profit or loss :
Remeasurement of the net defined benefit liability				269		(34,480)
Tax on non-recycled items				670		9,774
Items recycled to profit or loss :
Translation differences				9,137		127,259
Cash flow hedge instruments				11,482		(8,932)
Tax on recycled items				(3,997)		2,872
Other comprehensive income (after tax)				17,561		96,493
Total comprehensive income				160,259		240,047
Portion attributable to minority interests				22,278		38,133
Portion attributable to the Group				137,981		201,914

CONSOLIDATED CASH FLOWS STATEMENT FOR THE YEAR ENDED DECEMBRE 31, 2015
		Notes		2015		2014
(in thousands of euros)
Cash flows from operating activities
Consolidated net income				142,698		143,553
Earnings from associated companies				(4,876)		(4,745)
Dividends received from associated companies				1,131		974
Elimination of non cash and non operating items :
- depreciation, amortization and provisions				202,452		186,442
- deferred taxes				(10,127)		(16,341)
- net (gain) loss from disposal of assets				(3,933)		(201)
- unrealized fair value gains and losses				64		1,341
- other				18,858		9,906
Cash flows from operations		1.22		346,267		320,929
Change in working capital requirement				(46,661)		(19,050)
Net cash flows from operating activities (1)		27		299,606		301,879
Cash flows from investing activities
Outflows linked to acquisitions of non-current assets :
- property, plant and equipment and intangible assets				(174,103)		(159,951)
- financial investments				(19,526)		(8,827)
Inflows linked to disposals of non-current assets :
- property, plant and equipment and intangible assets				7,295		6,370
- financial investments				3,680		5,183
Impact of changes in consolidation scope				(55)		(66,988)
Net cash flows from investing activities		28		(182,709)		(224,213)
Cash flows from financing activities
Dividends paids				(78,405)		(81,015)
Increases in capital						122
Proceeds from borrowings				301,486		21,239
Repayments of borrowings				(356,698)		(91,568)
Acquisitions of treasury shares				(30,765)		(21,021)
Disposals or allocations of treasury shares				32,899		96,104
Net cash flows from financing activities				(131,483)		(76,139)
Impact of changes in foreign exchange rates				(3,308)		15,651
Change in cah position				(17,894)		17,178
Net cash and cash equivalents - opening balance		29		242,991		225,812
Net cash and cash equivalents - closing balance		29		225,096		242,990
(1) Of which cash flows from income tax: € (77,620) thousand in 2015 et € (60,190) thousand in 2014.
Of which cash flows from interest paid and received: € (40,774) thousand in 2015 and € (47,825) thousand in 2014.

STATEMENT OF CHANGES IN CONSOLIDATED SHAREHOLDERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 2015
(in thousands of euros)				Capital		Additionalpaid in capital		Treasuryshares		Consolidatedreserves		Translationreserves				Shareholders'equity				Minorityinterests				Total share-holders'equity andminorityinterests
At January 1, 2014				179,600		11,207		(73,945)		2,155,752		(262,865)				2,009,749				282,216				2,291,965
Consolidated netincome										128,479						128,479				15,075				143,554
Other comprehensive income										(39,732)		113,167				73,435				23,058				96,493
Total comprehensive income										88,747		113,167				201,914				38,133				240,047
Dividends paids										(66,061)						(66,061)				(14,787)				(80,848)
Net change in treasuryshares (1)								3,812		71,546						75,358				15				75,373
Changes in consolidationscope and additionalacquisitions (2)										(44,390)						(44,390)				(24,582)				(68,972)
Increases in share capital																				122				122
Other changes										853						853				753				1,606
At December 31, 2014				179,600		11,207		(70,133)		2,206,447		(149,698)				2,177,423				281,870				2,459,293
Consolidated net income										121,479						121,479				21,219				142,698
Other comprehensiveincome										(39,392)		55,894				16,502				1,060				17,562
Total comprehensive income										82,087		55,894				137,981				22,279				160,260
Dividends paids										(66,111)						(66,111)				(11,969)				(78,080)
Net change in treasuryshares								3,125		(677)						2,448								2,448
Changes in consolidation scopeand additionalacquisitions
Increases in share capital
Other changes										(193)						(193)				(20)				(213)
At December 31, 2015				179,600		11,207		(67,008)		2,221,553		(93,804)				2,251,548				292,160				2,543,708
(1) : includes mainly the total capital gain, net of tax, of € 72 million made in 2014 on the sale of Soparfi securities.
(2) : includes mainly the change in net value due to the Group's 2014 acquisition of Sagar Cements' residual stakein Kalburgi Cement (ex Vicat Sagar Cement).
Group translation differences at December 31, 2015 are broken down by currency as follows (in thousands of euros) :
										31-déc.-15		31-déc.-14
				US Dollar :						52,291		18,764
				Swiss franc :						203,395		137,853
				Turkish new lira :						(144,915)		(118,547)
				Egyptian pound :						(50,157)		(42,745)
				Kazakh tengue :						(85,450)		(43,767)
				Mauritanian ouguiya:						2,812		2,187
				Indian rupee :						(71,780)		(103,443)
										(93,804)		(149,698)

View source version on businesswire.com: http://www.businesswire.com/news/home/20160314005682/en/

VICAT
Investor relations contact:
Stéphane Bisseuil, Tel.: +33 (0) 1 58 86 86 14
[email protected]
or
Press contacts:
Marion Guérin, Tel: +33 (0)1 58 86 86 26
[email protected]

Source: Vicat

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