Affine R E : Half-year 2016 results (ppt)

29 July 2016‌ Half Year Results for the six months ended 30 June 2016 First half progress in a marginally firmer trading environment

Vesuvius plc, a global leader in molten metal flow engineering, announces its results for the six months ended 30 June 2016.

Financial summary H1 2016 H1 2015 Change Underlying H2 2015 Change Underlying (£m) (£m) (%) change(1)(£m) (%) change(1)

Revenue 668.3 702.6 -4.9% -7.5% 619.4 7.9% 1.5%

Trading Profit(2)59.1 70.4 -16.0% -16.5% 53.6 10.3% 2.5%

Return on Sales 8.8% 10.0% -120bps -100bps 8.7% 10bps 10bps Headline Earnings(3)34.4 43.3 -20.6% -21.1% 32.4 6.3% -1.1%

Headline EPS(3)

(pence) Interim Dividend	5.15p	5.15p	-	-
Net debt	310.3	296.0	4.8%
Statutory Profit	27.8	37.9
Statutory EPS (pence)	9.1	13.0

12.8 16.0 -20.0% -21.1% 12.0 6.5% -1.0% Key Points:

• Revenue, profit and return on sales in line with expectations

• Global steel and foundry markets showing signs of stabilisation; albeit mixed and at weak levels

• Improvement in revenue and margins compared to H2 2015

• Restructuring programme delivered £7.1m cost savings in H1 2016 vs 2015 cost base

• Total annual restructuring programme benefits increased to £25m by the end of 2017 at a total cost of £35m

• Improved debtor provision coverage of £3.7m

• Strong cash performance, with cash conversion of 111%

• Maintained interim dividend of 5.15 pence per share to be paid on 23 September 2016

François Wanecq, Chief Executive of Vesuvius, commented:

"We have delivered an encouraging result in the first half of 2016, with an improvement in financial performance relative to the second half of 2015. This reflects the strength of our market position and progress in implementing our self-help initiatives and ongoing restructuring programme. Our end markets in steel and foundry are showing signs of stabilisation, although we expect them to remain at relatively weak levels for the remainder of the year.

Based on our strategic and operational progress in the first half, and assuming current exchange rates continue for the rest of the year, our full year expectations remain unchanged. We remain confident in our ability to capitalise on any recovery in our addressable markets in the medium term."

For further information, please contact: Shareholder/analyst enquiries:

Vesuvius plc	François Wanecq, Chief Executive	[phone]
Guy Young, Chief Financial Officer	[phone]
Virginia Skroski, Investor Relations Manager	[phone]

(1) Underlying basis is at constant currency and excludes separately reported items and the impact of acquisitions

(2) For definitions of non-GAAP measures, refer to the notes in the financial statements

(3) Headline results refer to continuing operations and exclude separately reported items

Media enquiries: MHP Communications John Olsen/ Jamie Ricketts/ Ollie Hoare [phone]

Vesuvius management will make a presentation to analysts and investors on 29 July 2016 at 10.30am (BST) at Bank of America Merrill Lynch, 2 King Edward Street, London EC1A 1HQ. For those unable to attend in person, an audio webcast and conference call will also be available (UK participant dial in [phone]; US participant dial in [phone]; confirmation code 7676096). This presentation will be broadcast live on Vesuvius' website, http://investors.vesuvius.com/investor-relations and an archive version of the presentation will be available on the website later that day.

About Vesuvius plc

Vesuvius is a global leader in molten metal flow engineering principally serving the steel and foundry industries.

We develop innovative and customised solutions, often used in extremely demanding industrial environments, which enable our customers to improve their manufacturing processes, enhance product quality and reduce energy consumption. These include flow control solutions, advanced refractories and other consumable products and increasingly, related technical services including data capture.

We have a worldwide presence. We serve our customers through a network of low-cost manufacturing plants located close to their own facilities, and embed our industry experts within their operations, who are all supported by our global technology centres.

Our core competitive strengths are our market and technology leadership, strong customer relationships, well established presence in developing markets and our global reach, all of which facilitate the expansion of our addressable markets.

Our ultimate goal is to create value for our customers, and to deliver sustainable, profitable growth for our shareholders giving a superior return on their investment whilst providing each of our employees with a safe workplace where he or she is recognised, developed and properly rewarded.

Forward looking statements

This announcement contains certain forward looking statements which may include reference to one or more of the following: the Group's financial condition, results of operations, cash flows, dividends, financing plans, business strategies, operating efficiencies or synergies, budgets, capital and other expenditures, competitive positions, growth opportunities for existing products, plans and objectives of management and other matters.

Statements in this announcement that are not historical facts are hereby identified as "forward looking statements". Such forward looking statements, including, without limitation, those relating to the future business prospects, revenue, working capital, liquidity, capital needs, interest costs and income, in each case relating to Vesuvius, wherever they occur in this announcement, are necessarily based on assumptions reflecting the views of Vesuvius and involve a number of known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied by the forward looking statements. Such forward looking statements should, therefore, be considered in light of various important factors that could cause actual results to differ materially from estimates or projections contained in the forward looking statements. These include without limitation: economic and business cycles; the terms and conditions of Vesuvius' financing arrangements; foreign currency rate fluctuations; competition in Vesuvius' principal markets; acquisitions or disposals of businesses or assets; and trends in Vesuvius' principal industries.

The foregoing list of important factors is not exhaustive. When considering forward looking statements, careful consideration should be given to the foregoing factors and other uncertainties and events, as well as factors described in documents the Company files with the UK regulator from time to time including its annual reports and accounts.

You should not place undue reliance on such forward looking statements which speak only as of the date on which they are made. Except as required by the Rules of the UK Listing Authority and the London Stock Exchange and applicable law, Vesuvius undertakes no obligation to update publicly or revise any forward looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward looking events discussed in this announcement might not occur.

Vesuvius plc, 165 Fleet Street, London EC4A 2AE Registered in England and Wales No. 8217766www.vesuvius.com

Vesuvius plc Half Year Results for the six months ended 30 June 2016

During the first half of 2016, Vesuvius continued to make further strategic and operational progress.

Group trading performance

Group revenue from our continuing operations was £668.3m, a reduction of 4.9% compared to the first half of 2015 on a reported basis. Underlying Group revenue, adjusted for the effects of acquisitions and currency translation differences, decreased by 7.5% compared to the same period last year. Trading profit for the half year was £59.1m, down 16.5% on an underlying basis and down 16.0% on a reported basis (H1 2015: £70.4m). Return on sales decreased by 120 basis points on a reported basis (100 basis points on an underlying basis) to 8.8% in the first half of 2016 (H1 2015: 10.0%).

Given that end markets are still weaker than they were in the first half of 2015 the decreases detailed above were expected. However, a comparison to the second half of 2015, which is more comparable from a market perspective, shows sales were up 7.9% (1.5% on an underlying basis) and trading profit increased 10.3% (2.5% on an underlying basis). On a reported basis, the results were assisted by a weaker Pound Sterling. On an underlying basis, the performance indicates a halt to the declines seen in 2015 and supports the view that markets have started to stabilise. Our margins have also continued to benefit from the restructuring programme.

Restructuring

We continue to make good progress in delivering our self-help and restructuring plan. Actions taken in the first six months of this year include the recent announcement of the planned closure of the European Flow Control site plant in Ostrawa, Czech Republic, and of our sales office in Lugano, Switzerland. Furthermore, we announced in July that we will begin discussions with the Ostend Works Council and unions on a proposal for a restructuring plan in Ostend, Belgium.

An additional £5m of restructuring benefit has been identified. To date, this brings total annualised cost savings to £25m, which we expect to be delivered by the end of 2017. This will be at a cost of a total exceptional restructuring charge of around £35m over 2015 to 2017, an increase of £5m over the expected total costs as announced in March.

Foreign Exchange

The weakening of Pound Sterling versus both the US Dollar and the Euro has had a dual effect: it has resulted in a positive foreign exchange variance when translating income but has increased the translated amount of debt held in currencies other than Pound Sterling.

The adverse impact of any potential ongoing weaker Pound Sterling on Vesuvius is limited as a result of our relatively low exposure to UK revenue (

Strategic progress

The previously defined strategy of the Group to deliver profitable growth remains unchanged and we have continued to deliver in 2016 on our five stated strategic priorities:

• reinforcing our technology and innovation leadership positions;

• enlarging our addressable markets through the increasing penetration of existing and new value-creating solutions;

• leveraging our strong positions in developing markets to capture the growth opportunities that they represent;

• improving our cost leadership and our margins; and

• building organically, and through acquisition, an increasingly comprehensive technical services offering.

Health and safety

Vesuvius places great emphasis on the importance of health and safety in the workplace and in the communities in which we operate. Safety is of paramount importance as our employees often operate in harsh environments. We continue to work hard at reducing incident severity and developing robust standards and practices aimed at improving the safety and health of our people in all that they do. Having made good progress in reducing lost time incidents in 2015, in the first half of 2016, we saw this number decline further. We continue to focus our efforts to build on the progress made last year.

Board and senior management

As announced in March, Patrick Andre has assumed the role of President, Flow Control. We also continue to further strengthen our senior management team through internal promotion, today announcing that Alexander Laugier-Werth has been appointed to the role of President, Technical Services, following Luis Reyes's move within the company. Alexander was previously Vice President, Operations Foundry. In his new role, Alexander joins our Group Executive Committee.

Result of Statutory Audit Tender

Following the completion of a formal tender process for the statutory audit contract, PriceWaterhouseCoopers LLP will be appointed as external auditor for Vesuvius plc for the year ending 31 December 2017, replacing KPMG LLP. KPMG LLPwill audit the Group's accounts for the year ending 31 December 2016. Shareholder approval to confirm the appointment of PriceWaterhouseCoopers LLP will be sought at the Vesuvius plc Annual General Meeting in 2017.

Dividend

The Board has recommended an interim dividend of 5.15 pence per share (H1 2015: 5.15 pence per share). This dividend will be paid on 23 September 2016 to shareholders on the register at the close of business on 12 August 2016. Any shareholder wishing to participate in the Vesuvius Dividend Reinvestment Plan ("DRIP") needs to have submitted their election to do so by 2 September 2016. The Board intends to deliver long-term dividend growth provided that this is supported by underlying earnings, cash flows, capital expenditure requirements and the prevailing market outlook.

Outlook

Our end markets in steel and foundry are showing signs of stabilisation, although we expect them to continue at relatively weak levels for the remainder of the year. Notwithstanding this, we delivered an improvement in our financial performance relative to the second half of 2015, reflecting the strength of our market position and the ongoing improvement in implementing our self- help actions.

Based on our strategic and operational progress in the first half, and assuming current exchange rates continue for the rest of the year, our full year expectations remain unchanged. We remain confident in our ability to capitalise on any recovery in our addressable markets in the medium term.

We will also continue to focus on identifying acquisitions to reinforce our growth opportunities during the rest of the year, whilst retaining a strong balance sheet in order to maintain financial flexibility.