2015 full year sales
Friday February 5th 2016
Jean-Pierre Souchet – Chief Financial Officer
Stéphane Bisseuil – Head of Investor Relations
2
Disclaimer
This presentation may contain forward-looking statements. Such forwardlooking 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.
In this presentation, and unless indicated otherwise, all changes are based
on the twelve months of 2015 by comparison with the twelve months of
2014, and are at constant scope and exchange rates
Further information about Vicat is available from its website (www.vicat.fr).
3
2015 full-year sales main points
2015 sales : €2.46 billion
Sales growth of +1.5% on a reported basis in 2015
Top-line growth in the United States and Asia
Lower sales in West Africa and the Middle-East
Renewed growth in France during the fourth quarter
Solid financial position
4
Breakdown of operational sales
by business
Contribution by business:
Contribution by business:
31/12/2015
31/12/2014
1 4 .3 %
1 4 ,4 %
Cement
3 2 .5 %
5 3 .2 %
Concrete & Aggregates
3 1 ,9 %
Other Products & Services
Consolidated sales (% at constant scope and exchange rates)
Cement: €1,256 million, down -5.9%
Concrete & Aggregates: €892 million, down -2.8%
Other Products & Services: €310 million, down -2.6%
5 3 ,7 %
5
Geographical breakdown of sales
France
Variation (%)
(€ million)
31/12/2015
31/12/2014
Published
Consolidated sales
777
831
-6.5%
At constant scope
-6.5%
Consolidated sales in France fell -6.5% at constant scope and exchange rates to €777 million
Consolidated sales up +4.0% in Q4 : supportive weather conditions, gradual stabilisation of the market at a
historically low level
Cement, operational sales declined -4.8%
Volume contraction of less than -2% and a slight decrease in average selling prices
Q4 operational sales up +7.2%
Volume growth of close to +13%
Average selling prices recorded a steeper decline : adjusted end-of-year rebates related to the strong volume growth and
unfavourable geographical and product mix
Concrete & Aggregates, operational sales down -11.3%
Volume contraction of just under -10% in Concrete and slightly over -9% in Aggregates. Selling prices posted a
slight increase in Aggregates, but declined slightly in Concrete
Q4 sales stabilized progressively at -1.0%
Stable volume (-0.3%) in Concrete and up close to +3% in Aggregates
Average selling prices declined in Concrete and posted a healthy increase in Aggregates
Other Products & Services, operational sales fell -2.2%
Q4 operational sales up +8.3%
6
Geographical breakdown of sales
Europe (excluding France)
Variation (%)
(€ million)
31/12/2015
31/12/2014
Published
Consolidated sales
425
418
+1.7%
At constant scope
and exchange
rates
-10.2%
Switzerland, consolidated sales -9.4%
Unfavourable base of comparison
Q4 sales down -12.5%
Cement, operational sales -11.2%
Volumes : -7% by comparison with the very brisk trends recorded in 2014. Average selling prices dropped
significantly owing to fiercer competition and contraction in the construction market
Q4 operational sales -17.1%
Volume decline of -12%
Significant fall in prices in Q3
Concrete & Aggregates, operational sales down -9.8%
Volumes down over -11% in Concrete and -7% in Aggregates, offset partly by improvement in average selling prices
Q4 operational sales -6.8%
Concrete volumes down -13% and up +6% in aggregates
Selling prices posted a significant decline in Q4 in both in Concrete and Aggregates
In Italy, consolidated sales dropped -27.5%, with volumes down -25%
Q4 sales down -19.9%
Volumes down -21%
Selling prices stable
7
Geographical breakdown of sales
United States
Variation (%)
(€ million)
31/12/2015
Consolidated sales
31/12/2014
342
247
Published
At constant scope
and exchange
rates
+38.7%
+15.9%
FY sales up significantly in both regions, thanks to further volume and price increases
Q4 sales up +14.5%
Cement, operational sales up +23.6%
FY volume growth of +15%, with very strong momentum in the south-eastern US and price hikes
in both areas, more marked in California
Q4 operational sales up +20.8%
Volumes up +16%. Brisk increase in the South-East and in California
Selling prices continued to move higher in both regions
Concrete, operational sales up +12.2%
FY volume growth over +7%, especially in California. Average selling prices rise in both regions
Q4 consolidated sales up +9.5%
Volumes up +3% with solid growth in California and stable performance in the South-East region
Average selling prices continued to rise, with slightly more marked increase in California than in the South-East
8
Geographical breakdown of sales
Asia
Variation (%)
(€ million)
31/12/2015
31/12/2014
Published
Consolidated sales
568
530
+7.1%
At constant scope
and exchange
rates
+3.1%
In Turkey, 2015 sales were €234 million, up +6.4%
Q4 sales up +19.3%
Cement, operational sales up +3.5%
Growth in volumes of more than +5%
Q4 operational sales up +10.0%
–
–
Volume growth of over +10%
Slight erosion in average selling prices
Concrete & Aggregates sales rose +17.1%
+22% increase in Concrete volumes and +15% in Aggregates, amid slightly weaker pricing conditions
Q4 operational sales up +47.6%
–
–
+49% increase in Concrete volumes and +28% in Aggregates
Slightly negative pricing conditions
In India, sales of €268 million in 2015, up +2.3%
Increase of +16% in average selling prices made up for contraction in Cement volumes of close to -11%,
Q4 sales were up +3.7%
Volumes up +2% in the period
Average selling prices edged slightly higher
In Kazakhstan, consolidated sales at €65 million (down -5.4%)
Volumes rose by more than +5% to 1.3 million tonnes, not sufficient to offset the fall in selling prices
Q4 sales were down -20.3% with volume contraction of close to -14%
9
Geographical breakdown of sales
Africa and Middle-East
Variation (%)
(€ million)
31/12/2015
31/12/2014
Published
Consolidated sales
346
397
-12.9%
At constant scope
and exchange
rates
-16.6%
Egypt sales were €113 million, down -18.5%
Marked decline in selling prices from Q2 onwards, with a volume contraction of over -7%
Q4 sales down -38.1%
Volume contraction particularly significant in the quarter (around -26%) due to disruption related to refurbishment of the Suez
Canal tunnel
Average selling prices recorded another very significant fall amid fierce and volatile competition
West Africa sales totalled €232 million, down -15.6% from very high level of activity in 2014
Decline reflects the impact on the competitive landscape caused by a newcomer in Senegal in early
2015 :
Cement volumes of -12%
Average selling prices edged slightly lower over the full year
Q4 sales drew down -17.2%
Volume decline in Cement of -10%
Slightly larger dip in average selling prices than in the first three quarters of 2015
Outlook on 2015 profitability and
balance sheet
10
The Group has stated that the level of EBITDA generated in 2015 on a reported
basis will reflect the benefit of an improved operating performance in the United
States and India by comparison with 2014. These positive factors should offset
the negative impact on EBITDA caused by the top-line contraction in France,
West Africa and the Middle East and, lastly, Kazakhstan
Taking all these factors into account, the EBITDA on a reported basis
generated by the Group in 2015 should be in line with that posted by the
Group in 2014
Due to investments in Egypt and in Turkey, total amount of capital expenditure is
expected to increase slightly in 2015 on the level recorded in 2014, while the
Group’s net debt at 31 December 2015 should show another slight
reduction on its level at 31 December 2014