Vicat : 20230728_HALF YEAR REPORT - 2023

Half year financial report

June 30, 2023

TABLE OF CONTENTS

I. HALF-YEAR REPORT AS AT JUNE 30, 2023	2
1.	First half income statement	6
2.	Changes in the Group's financial position	10
3.	Capital expenditure and free cash flow	11
4.	Climate performance	11
5.	Recent events	11
6.	Outlook for 2023	11
7.	Risk factors	13

II. CONSOLIDATED FINANCIAL STATEMENTS AS AT JUNE 30, 2023	14
1.	Consolidated income statement	15
2.	Consolidated statement of comprehensive income	15
3.	Consolidated statement of financial position	16
4.	Consolidated statement of cash flows	17
5.	Statement of changes in consolidated shareholders' equity	18
6.	Notes to the consolidated financial statements as at June 30, 2023	19

III. STATUTORY AUDITORS' REVIEW REPORT ON THE 2023 HALF-YEAR

FINANCIAL INFORMATION

59

IV. DECLARATION BY THE PERSONS RESPONSIBLE FOR THE HALF-YEAR

FINANCIAL REPORT

60

Vicat Group - Half year financial report - 2023

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I.

HALF-YEAR REPORT AS AT JUNE 30, 2023

1.	First half income statement	6
2.	Changes in the Group's financial position	10
3.	Capital expenditure and free cash flow	11
4.	Climate performance	11
5.	Recent events	11
6.	Outlook for 2023	11
7.	Risks factors	13

Vicat Group - Half year financial report - 2023

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• Strong increase in sales: resilient volumes across almost all cement markets and higher selling prices
• Recovery in profitability, especially with the gradual ramp-up in the Ragland plant's new kiln
• Tight grip on debt with the leverage ratio falling over the past year to 2.6x
• FY 2023 EBITDA is expected to rise towards a level appreciably above that recorded in 2021

Condensed income statement approved by the Board of Directors on 25 July 2023

							Change
		H1 2023			H1 2022	Change	(at constant
				(reported)	scope and
(€ million)							exchange rates)
Consolidated sales		1,912		1,755	+9.0%	+16.5%
EBITDA		314		269	+17.0%	+21.6%
Margin (%)		16.4%		15.3%
Recurring EBIT		166		128	+29.4%	+34.4%
Margin (%)		8.7%		7.3%
Consolidated net income		109		88	+24.5%	+17.8%
Margin (%)		5.7%		5.0%
Net income, Group share		94		78	+20.9%	+14.0%
Cash flow from operations		239		218	+9.5%	+10.1%

Guy Sidos, the Group's Chairman and CEO commented:

"The Vicat Group recorded a solid set of first-half 2023 results. Demand for cement remained broadly favourable across all our markets, with pricing levels offsetting the cumulative effects of cost inflation, especially higher energy prices. Profitability moved higher in line with our expectations, with the ramp-up in the Ragland plant's new kiln in the United States, which will continue during the second half. However, the Group has not yet returned to its pre-crisis margins rates.

I'd like to thank all our teams for their unwavering commitment enabling us to reach our industrial, financial and climate targets. The Group has reduced its specific carbon emissions by 3.6% from the level of 591 kg CO2 net per tonne of cement equivalent of a year ago and is on pace to reach its climate roadmap goal of 497 kg CO2 net per tonne of cement equivalent by 2030."

Disclaimer:

• In this press release, and unless indicated otherwise, all changes are stated on a year-on-year basis (2023/2022), and at constant scope and exchange rates.
• The alternative performance measures (APMs), such as "at constant scope and exchange rates", "operational sales", "EBITDA", "Recurring EBIT", "net debt", "gearing" and "leverage" are defined in the appendix to this press release.

Vicat Group - Half year financial report - 2023

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• 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 on these statements.

Further information about Vicat is available from its website (www.vicat.fr).

The Group's consolidated sales grew in the first six months of 2023. This increase chiefly reflected:

• growth in Cement volumes to an extent varying from market to market, with a slowdown in certain developed markets (France, Switzerland) and positive momentum in the Mediterranean and, to a lesser extent, in Africa;
• an increase in selling prices across almost all Vicat's markets in an inflationary environment resulting mainly from energy costs.

Overall, the Group's consolidated sales totalled €1,912 million, up from €1,755 million in the first six months of 2023, representing a +9.0% rise on a reported basis. These trends reflected:

• organic growth of +16.5% at constant scope and exchange rates;
• an unfavourable currency effect of -7.5%, representing a negative impact of -€131 million over the period. Appreciation in the US dollar and Swiss franc against the euro offset only to a very limited extent the impact of depreciation in the Turkish lira and Egyptian pound against the euro;
• negligible changes in the scope of consolidation over the period.

The Group's operational sales totalled €1,938 million over the period, up +9.0% on a reported basis and up +16.3% at constant scope and exchange rates. Each of the Group's businesses contributed to this positive trend.

The Group's consolidated EBITDA came to €314 million in the first half of 2023, up +17.0% on a reported basis and up +21.6% at constant scope and exchange rates compared to the first half of 2022. The EBITDA margin on consolidated sales came to 16.4%, an increase of +110 basis points year-on-year. The trend in reported EBITDA reflects an unfavourable currency effect of -€12 million.

At constant scope and exchange rates, the EBITDA increase flowed from a year-on-yearprice-costdifferential that was favourable owing to:

• the ramp-upin the Ragland plant's new kiln, whereas start-up operations had adversely affected results in the first half of 2022;
• the impact of price increases introduced across almost all Group markets, which tempered the increase in variable costs, especially energy. In the first half of 2023, energy costs grew +12% at constant volume to €327 million, up from €293 million in the first half of 2022;
• greater use of alternative fuels, which rose by +4.1 points relative to the same period of 2022, replacing fossil fuels;
• Lastly, the basis of comparison for EBITDA was made more favourable with a return to normal levels in maintenance costs in France.

Compared with the first half of 2021, EBITDA moved +4.8% higher on a reported basis, in line with the outlook given by the Group at the beginning of the year. Nonetheless, the EBITDA margin was 280 basis points below the 19.2% level recorded in the first six half of 2021. Selling price increases offset the impact of cumulative higher costs but have not yet restored the Group's margins to their previous levels.

Vicat Group - Half year financial report - 2023

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