19 November 2024

Vesuvius plc - Trading Update

Vesuvius plc, a global leader in molten metal flow engineering and technology,
announces the following update for the period 1 July to 31 October 2024.

Summary

-          We have performed robustly in the period delivering market share
gains, resilient pricing, and further cost reductions, despite a weakening of
markets relative to H1 2024

-          Steel markets outside of India and EEMEA remain subdued

-          Foundry markets outside of India also remained subdued, with in
particular, further significant weakening in EU27+UK

-          Continued market share gains in Flow Control and Foundry, while
achieving resilient net pricing

-          In year recurring cost savings ahead of expectations, increasing from
£6m to £9m in FY24

-          Trading Profit expected to be slightly below FY23, reflecting market
conditions, while maintaining RoS margin at c10.2%, both on a constant currency
basis

-          Working capital intensity on track against our year-end target of 23%

-          Acquisition in Turkey in the strategically important and growing
EEMEA market

-          Second share buyback of £50m launched, supported by our strong
balance sheet

-          Growth initiatives in Flow Control and Asia remain on track, with
projects completing around the year-end

Update on trading since 1 July

Steel markets (World ex China, Iran, Russia, and Ukraine) continued to weaken in
both North America and the EU27+UK, while growth rates in India and EEMEA
slowed. Chinese steel exports remain at elevated levels, with this impacting
production in most regions outside of China.

Foundry markets outside of India also declined compared to H1, with the EU27+UK
in particular, experiencing a significant decline compared to both the first
half of FY24 and the same period in FY23. This level of Foundry activity was
lower than originally anticipated.

We continued to gain market share in both Flow Control and Foundry, reflecting
our strong technological differentiation, and continued to achieve a positive
net pricing performance in Steel while also maintaining net pricing in Foundry,
despite the challenging environment.

Over the period, therefore, the Steel division delivered in line with
expectations, but the Foundry division was impacted by the weakness of the
Foundry end-markets, which was more significant than anticipated. This was
partially offset by increased in-year cost savings in both divisions, resulting
in a slightly lower Group performance than anticipated.

Continued cost management

The three-year cost-savings programme is proceeding as planned. We continue to
target recurring cash cost savings of at least £30m by 2026, with c. £9m
expected to be delivered in 2024, and an exit run-rate in 2024 towards the top
end of the indicated range of £10-15m. Total one-off cash costs in FY24 are
expected to be c. £10m (£12m P&L impact including non-cash charges), which is
part of the planned total of £40m (split between capex and cash operating
costs). In addition, we have taken various short-term cost reduction actions to
protect in-year profit, given the challenging market conditions.

Continued cash flow discipline

Average trade working capital as a percentage of revenue (on a 12-month rolling
basis) continues to trend downward, towards our year-end target of 23.0%, and at
the end of October 2024 was 90bps lower than the same point in 2023. Capex,
excluding leases, for 2024 is expected to be around c. £100m, as anticipated at
the beginning of the year.

Launching a second tranche share buyback

Following the recent completion of our first share buyback programme, we are now
announcing a second programme for a further £50m, which we expect to be
transacted in around 6 months, subject to regulatory limits. This demonstrates
our confidence in the ongoing free cashflow generation of the business and our
commitment to return capital to shareholders while maintaining a strong balance
sheet. We expect leverage at the year-end to be towards the lower end of our
target range. Full details of the share buyback are available in the separate
announcement issued today.

Acquisition in the growing market of EEMEA

On 15 November 2024 we signed an agreement to acquire a 61.65% stake in Piromet
AS, a Turkish business for €26.2m. Completion is subject to the typical
regulatory approvals and is expected to occur in the first quarter of FY25. The
acquisition will strengthen our Advanced Refractory business in the fast-growing
region of EEMEA and will also allow us to leverage Piromet's expertise in
robotics and gunning.

Outlook

We expect both Steel and Foundry markets to remain subdued for the remainder of
the year and remain cautious on the timing of a recovery. We are mitigating this
temporary end market weakness with further actions, including higher in-year
cost savings. We now anticipate trading profit for FY24 to be slightly below
FY23 on a constant currency basis and in line with current market expectations.

We remain confident in the attractiveness of the long-term global steel and
foundry market fundamentals and continue to focus on the execution of our self
-help measures, which will leave us well placed when end-markets improve.

Technical guidance for FY24, update:

+-------+---------+------------------------------------------------------+
|FY23   |Reported |Restated at FX avg. rates for 10 months to 31 Oct 2024|
|       |FX rates |                                                      |
+-------+---------+------------------------------------------------------+
|Revenue|£1,929.8m|£1,857.8                                              |
+-------+---------+------------------------------------------------------+
|Trading|£200.4m  |£189.0m                                               |
|profit |         |                                                      |
+-------+---------+------------------------------------------------------+
|Return |10.4%    |10.2%                                                 |
|on     |         |                                                      |
|sales  |         |                                                      |
+-------+---------+------------------------------------------------------+

Net interest charge: c. £16m

Capex (excluding capitalised leases): c. £100m

Exceptional restructuring charge related to cost-saving programme: c. £12m

Restructuring costs, cashflow impact: c. £10m

Current shares in issue (ex ESOP and treasury shares): 256.5m

Glossary

EEMEAEurope, Middle East and Africa, excluding EU+UK

CONFERENCE CALL

Patrick André (Chief Executive) and Mark Collis (Chief Financial Officer) will
be hosting a conference call with Q&A for analysts and investors at 08:00 (UK
time) today.

To participate, please register at least 30 minutes prior to the start of the
call by following the link
here (https://registrations.events/direct/LON8439172).

A replay of the call will be available for one week, which can be accessed via
the same link above.:

For further
information,
please
contact:
Shareholder/ana
lyst
enquiries:
Vesuvius plc    Patrick André, Chief   +44 (0) 207 822 0000
                Executive
                Mark Collis, Chief     +44 (0) 207 822 0000
                Financial Officer      +44 (0) 7387 545 271

                Rachel Stevens, Head
                of Investor Relations
Media
enquiries:
MHP             Rachel Farrington,     +44 (0) 203 128 8100
Communications  Ollie Hoare,

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.

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

LEI: 213800ORZ521W585SY02

www.vesuvius.com

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