2022 Half Year Results

Half Year Results for the six months ended 30 June 2022

Strong financial performance driven by full mitigation of inflationary pressures and market share gains

Vesuvius plc, a global leader in molten metal flow engineering and technology, announces its unaudited results for the six months ended 30 June 2022.

^{(1) Underlying basis is at constant currency and excludes separately reported items and the impact of acquisitions and disposals.}

^{(2) For definitions of non-GAAP measures, refer to Note 15 in the Condensed Group Financial Statements.}

Half Year 2022 Highlights

• Revenue of £1,015.9m, an increase of +21% on an underlying basis
• Trading profit (adjusted EBITA) of £127.4m, an increase of 69% on an underlying basis
• These increases were driven by:
• Selling price increases to fully mitigate inflationary pressures and cover the price lag from 2021
• Market share gains across both divisions
• Predicated on the relevance of our technology-driven business model that provides value for customers
• Positive volume growth of c.2% in our Steel Division (excluding the impact of Universal business acquisition) in the world excluding China and Iran, despite a 4% decline in the corresponding steel production. Volume decline in China was limited to c.1% despite a 6.5% decline in the corresponding steel production. Flow Control volume growth worldwide was above the average of the Steel division
• Despite market share gains, the Foundry division saw a decline in volume of c.3% due to continued weakness in the automotive market. It however delivered strong volume growth in key developing markets including Turkey (+9%), Brazil (+8%) and Vietnam (+6%)
• The integration of the Universal Refractories business is proceeding as planned and performance remains ahead of our expectations
• Strategic capacity expansion in Flow Control in Asia and EMEA remains on track
• Trade working capital/sales increased, as planned, to mitigate supply chain disruptions, reaching 22.8% (12m average) versus 20.9% at FY2021
• Net debt /adjusted EBITDA(2) of 1.3x at 30 June 2022 versus 1.4x at FY2021
• Doubling of our 2025 target for carbon footprint reduction from 10% to 20% (versus 2019 levels) and introducing an additional 2035 target of a 50% reduction
• Proposed interim dividend of 6.5p, a 5% increase on the prior year

Comment from Patrick André, CEO:

“Despite difficult market conditions, we achieved a record level of trading profit and profitability in the first half of 2022 thanks to the benefits of the restructuring of our manufacturing footprint over the past years and our continued investment in Research and Development. These results confirm the long-term profitability potential of our activity under normal market conditions and the importance of our technology driven business model.

“In the coming months, we expect a further deterioration of our market environment. Vesuvius is, however, well prepared to confront this temporary slowdown thanks to our lean, entrepreneurial and decentralised organisation. This, together with the positive results of the first half, make us confident that full year Group trading profit (EBITA) will be towards the top end of the range of current analysts’ expectations.⁽³⁾

“Beyond the current temporary slowdown of activity, we remain fully confident in the longer-term growth potential of both our Steel and Foundry end markets and are continuing at pace the implementation of our expansion programme through capital investments, in particular in Flow Control.”

^{(2) For definitions of non-GAAP measures, refer to Note 15 in the Condensed Group Financial Statements.}

^{(3) The range of analyst expectations as at 25 July 2022 for 2022 Trading Profit (EBITA) is between £155m and £199m compiled by Vesuvius.}

Presentation of H1 2021 Results

Vesuvius management will make a presentation to analysts and investors on 28 July 2022 at 09.30 UK time at the London Stock Exchange, 10 Paternoster Square, London EC4M 7LS. For those unable to attend, the event will be livestreamed and can be accessed by clicking here. Participants can also join via an audio conference call. Please click here to register. Once registered, you will be provided with the information needed to join the conference, including dial-in numbers and passcodes. Be sure to save this information in your calendar.