Trading Statement

Vesuvius plc, a global leader in molten metal flow engineering and technology, announces the following update for the period 1 January to 30 April 2024.

Summary

Performance in the period was in line with our expectations

We maintain our expectations for FY 2024

Excluding India and EEMEA, Steel markets remained subdued at the beginning of the year, as anticipated

Foundry markets outside of India remained weak, particularly in EU27+UK and North Asia

We continue to perform robustly due to our differentiated product offering, with a resilient pricing performance

Flow Control gained market share in all regions except EU+UK; Foundry gained market share in all regions

Our cost-saving programme is proceeding to plan, and we are confident in delivering both our current in-year and exit rate targets, as well as our £30m cash cost savings target by 2026

We continue to make progress in the reduction of working capital intensity

Market fundamentals remain attractive, and our significant investments in growth initiatives in Asia and in Flow Control remain on track

Resilient trading in weak end markets

Steel end markets remained subdued at the beginning of the year, as anticipated, except for India, which continued to grow compared to the same period last year, and EEMEA which recovered from a low base following the earthquake in Turkey in 2023. Steel production volumes in the EU27+UK area continued to be subdued in the first quarter of the year, although improved compared to the prior quarter. Chinese steel exports have continued to increase significantly, triggering the introduction of trade protection measures in some countries, notably in South America.

Foundry markets have remained weak, particularly in EU27+UK and North Asia, which represent c. 44% of Foundry sales.

Despite these difficult market conditions, we continue to perform well, achieving market share gains in Flow Control and Foundry. Advanced Refractories has not yet regained market share lost last year due to priority being given to pricing. Net pricing has remained resilient across all three business units. Our India businesses continued to perform well which reinforces our position in one of the fastest growing Steel and Foundry markets worldwide. We continue to grow at pace in that region, supported by our long-term strategy of investment in high quality manufacturing facilities, including the recently inaugurated Mold Flux plant at Vizag.

Overall, our performance was in line with our expectations.

Cost savings programme on target

The cost-savings programme is proceeding as planned. We continue to target annualised cash cost savings of £30m by 2026, with at least £3m delivered in 2024 and an exit run-rate of £10-15m by the end of 2024.

Market fundamentals remain strong and growth initiatives are on track

The fundamentals for the Steel and Foundry markets remain positive and we continue to implement our significant strategic initiatives, including capacity expansions in our higher-margin Flow Control business globally, and investment in capacity for Advanced Refractories and Foundry in Asia.

Outlook

The resilience of our business gives us continued confidence that we will deliver on our full year 2024 expectations.

Glossary

EEMEA Europe, 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 for analysts and investors at 08:30 (UK time) today.

A replay of the call will be available for one week on the following numbers:

United Kingdom: +44 20 3433 3849

Australia Toll-Free: +61 1800 021 202

Australia Toll: +61 2 8078 2917

US & Canada Toll-Free: +1(800) 770-2030

US Toll: +1(609) 800-9909

Canada Toll: +1(647) 362-9199

France: +33 1 73 02 81 84

Germany: +49 69 589964211

Hong Kong: +852 3018 3027

India: +91 22 5032 3279

Japan: +81 3 4588 1481

New Zealand: +64 9 886 9995

Singapore: +65 3159 5801

United States: +1 800 770 2030

Passcode: 45800

Vesuvius plc, 165 Fleet Street, London EC4A 2AE

Registered in England and Wales No. 8217766