2017 Full Year Results

Strong full year performance across all Regions and Business Units

Vesuvius plc, a global leader in molten metal flow engineering, announces its preliminary audited results for year ended 31 December 2017.

Financial Summary

^{(1) Underlying basis is at constant currency and excludes separately reported items and the impact of acquisitions
(2) Year-on-year reduction in profit as a result of higher charges within separately reported items
(3) For definitions of non-GAAP measures, refer to Note 16 in the financial statements}

Key Points

• Reported 2017 revenue up 20.2% and underlying revenue and trading profit up 12.5% and 16.1% respectively
• Global steel production up 5.3% in 2017 and positive momentum in the majority of Foundry end markets
• Accelerating momentum in China with 9.2% underlying sales growth – Vesuvius is benefiting from growing demand for our higher quality products
• Major progress made in mitigating both temporary headwinds of Flow Control EMEA intercompany supply and significant raw material cost inflation. £14.4m headwind in 2017 will substantially unwind in 2018
• Restructuring savings of £16.2m achieved in 2017 and total targeted savings from the existing restructuring programme, mainly in Flow Control, increased from £55m to £60m
• Launch of a completely new restructuring programme targeting £15m of annual savings by 2020 in our other businesses
• Cash conversion of 104% and Working Capital / Revenues improved to 24.9% at year-end 2017, from 26.6% in 2016
• Strong balance sheet with Net Debt / 2017 EBITDA at 1.3x
• Full year dividend increased 8.8% to 18.0 pence per share. Final dividend of 12.5 pence per share to be paid on 25 May 2018 

Patrick André, Chief Executive of Vesuvius, commented:

“I am pleased to report that Vesuvius has achieved a strong set of results in 2017, delivering our highest Trading Profit since we became an independent company in 2012. We benefitted from positive growth in both our steel and foundry end markets and also significantly increased the sales penetration of our value-creating solutions. We continued the timely delivery of our previously announced restructuring programme, mainly in Flow Control, and are announcing today a completely new programme focused on Advanced Refractories, Foundry and Group corporate functions, targeting £15m in savings by 2020. Looking forward, we are focused on accelerating the realisation of our core strategic objectives of delivering long-term sustainable and profitable growth.”

For further information, please contact:

Shareholder/analyst enquiries:
Vesuvius plc

Patrick André, Chief Executive
+44 (0) 207 822 0000

Guy Young, Chief Financial Officer
+44 (0) 207 822 0000

Euan Drysdale, Group Head of Corporate Finance
+44 (0) 207 822 0027

Virginia Skroski, Investor Relations Manager
+44 (0) 207 822 0016

Media enquiries:
MHP Communications

Andrew Jaques/ James White/ Ollie Hoare 
+44 (0) 203 128 8100

Vesuvius management will make a presentation to analysts and investors on 2 March 2017 at 09.00am (GMT) at 155 Bishopsgate, London EC2M 3XY. For those unable to attend in person, an audio webcast and conference call will also be available (UK participant dial in +44(0)20 3364 5721; US participant dial in +1 646 254 3362; 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. 8217766

View the 2017 Full Year Results