Full Year Results for the twelve months ended 31 December 2023

Robust trading despite difficult market conditions

Vesuvius plc, a global leader in molten metal flow engineering and technology, announces its audited results for the twelve months ended 31 December 2023.

Financial Summary

^{(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 16 in the Condensed Group Financial Statements.}

Highlights

• Revenue of £1,929.8m, was 3.1% lower on an underlying basis vs. 2022, reflecting lower volumes in a weaker market, partially offset by good pricing performance and market share gains in Flow Control and Foundry
• Robust trading profit of £200.4m, 6.7% lower on an underlying basis vs. 2022. Return on sales of 10.4%, 40bps lower than 2022 on an underlying basis
• Increased R&D investment (£37.4m, up 3.7% vs. 2022 and now 1.9% of sales) leading to 21 new products launched in 2023 and a strong pipeline of new products for the coming years
• Strategic expansion programme in Asia and Flow Control fully on track
• Strong cash management performance (cashflow conversion of 93%) with an increase in cash generated from operations despite reduction of trading profit, due to good progress on reducing trade working capital, supporting the launch of our £50m share buy-back programme
• Strong, stable balance sheet with net debt / EBITDA of 0.9x (31 December 2023)
• Proposed final dividend of 16.2p, bringing the full year dividend to 23.0p, +3.4%
• Programme to achieve cash cost savings of £30m by 2026 initiated
• Best ever health and safety performance with our Lost-Time Injury Frequency Rate down to 0.6
• Reduction of 20% in CO2e intensity vs. 2019 baseline, reaching 2025 interim target two years earlier than planned

Comment from Patrick André, CEO:

“Despite the short-term uncertainties in our end steel and foundry markets, we remain confident in the mid to long term growth potential of these markets and in particular the steel market outside of China, which should be a tailwind for us.

The strength of our technology-based business model should also enable us to continue simultaneously outperform our underlying markets in Flow Control and Foundry and maintain a positive pricing performance for all our business units in the coming years.

This, coupled with our relentless drive to optimise our cost base as illustrated by the launch of our new cost optimisation programme, positions us very well to achieve our objectives of 12.5% return on sales by 2026 and free cash flow generation of £400m over the next three years.”

Presentation of Full Year 2023 Results

Vesuvius management will make a presentation to analysts and investors on 29 February at 09:00 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.

For further information, please contact:

Shareholder/analyst enquiries:
Vesuvius plc

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

Mark Collis, Chief Financial Officer
+44 (0) 207 822 0000

Rachel Stevens, Group Head of Investor Relations
+44 (0) 7387 545 271

Media enquiries:
MHP Communications

Rachel Farrington/Ollie Hoare
+44 (0) 203 128 8570

About Vesuvius plc

Vesuvius is a global leader in molten metal flow engineering and technology principally serving process industries operating in challenging high-temperature conditions.

We develop innovative and customised solutions, often used in extremely demanding industrial environments, which enable our customers to make their manufacturing processes safer, more efficient and more sustainable. 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 cost-efficient 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 they are recognised, developed and properly rewarded.

We think beyond today to create solutions that will shape the future.

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. Forward-looking statements can be identified by the use of terms such as 'intend', 'aim', 'project', 'anticipate', 'estimate', 'plan', 'believe', 'expect', 'forecasts', 'may', ‘targets’, 'could', 'should', 'will', 'continue' or similar words.

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. Although Vesuvius makes such statements based on assumptions that it believes to be reasonable, by their nature, these forward looking statements are subject to a number of known and unknown risks, uncertainties and other factors beyond Vesuvius’ control 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. In light of these risks, uncertainties and assumptions, the forward looking events discussed in this announcement might not occur and such forward looking statements are not guarantees or predictions of Vesuvius’ future performance. You should not place undue reliance on such forward looking statements which speak only as of the date on which they are made. Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser.

Neither Vesuvius nor any of its affiliates, associates, employees, directors, officers or advisers assumes any responsibility for the accuracy or completeness or undertakes any obligation, to update or revise any of these forward-looking statements to reflect any new information or any changes in events, conditions or circumstances on which any such forward-looking statement is based save in respect of any requirement under applicable law or regulation.

Vesuvius plc, 165 Fleet Street, London EC4A 2AE
Registered in England and Wales No. 8217766
LEI: 213800ORZ521W585SY02

www.vesuvius.com

View the 2023 Full Year Results