Corporate Social Responsibility Informations 2019
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CORPORATE SOCIAL RESPONSIBILITY INFORMATIONS 2019 VICATVIVICACAT CorporateCCoo Social Responsibility Informations 2019 1 “Oxygène”, Vicat's first environmentally-responsible truck mixer (France) 2 VICAT Corporate Social Responsibility Informations 2019 Corporate Social Responsibility Informations 2019 INTERVIEW WITH GUY SIDOS, CHAIRMAN AND CHIEF EXECUTIVE OFFICER 4 1. PRESENTATION OF THE GROUP 7 2. STATEMENT OF EXTRA-FINANCIAL PERFORMANCE 2019 35 3. CROSS-REFERENCE TABLE OF ITEMS IN THE STATEMENT OF EXTRA FINANCIAL PERFORMANCE REPORT 70 GLOSSARY 72 VICAT Corporate Social Responsibility Informations 2019 3 IInterviewnterview wwithith GGuyuy SidosSidos, CChairmanhairman aandnd CChiefhief EExecutivexecutive Offi ccerer To build life together, we must develop constructive, innovative and sustainable solutions Guy Sidos For the Vicat Group, today present throughout the world, what were the key advances during the year 2019? 2019 was a year of commitments in each of the countries where we operate. We pursued our strategy, consistent with our vision: that of an international player in cement and mineral and biosourced construction materials, a producer in its territories, committed to recruiting its employees locally. A leading company in the environmental transition focused on obtaining carbon neutrality over our value chain. Finally, that of a company that has remained under family control. Today, two thirds of our sales revenues are conducted outside of France and 70% of our capacities are installed in emerging countries. As such, our expansion in Brazil in 2019, with the acquisition of 66% of the aggregate production and ready-mixed concrete. This share capital of Ciplan, is especially important. This acquisition, finalized in the first hours of 2019, allowed acquisition represents 10% of the Group’s capacity, us to reach consolidated sales revenues of €2.7 billion with a 3.2 million tonne factory, supplemented by with 9,947 employees in 12 countries. 4 VICAT Corporate Social Responsibility Informations 2019 Our responsibility is to contribute to supply minerals and biosourced construction materials for a planet that will be home for 10 billion human beings in 2050, with the most positive impacts possible For a number of years, Vicat has been a dedicated fighter in the climate crisis, what is your strategy for reducing your carbon footprint? Our strategy is illustrated through our many actions concerning all of our business lines. A major focus of Objective of our industrial policy is our program to eliminate the use of fossil fuels in Cement manufacturing. Several examples: the installation of a new kiln in the United 0% States, at Ragland, without a coal mill and the reduction fossil fuels of our CO2 emissions due to our new Alpenat clinker. in France in 2025 Today I can affirm that our production processes, that require heating kilns to 2,000 degrees, are getting close to eliminating fossil fuels, and replacing them by waste. This uncompromising innovation and this awareness of We are very proud of the direction we have taken, our role faced with many challenges in a fragile world starting 25 years ago, when climate change was still make us stronger and strengthen our agility. not a universal concern! Therefore, to meet the challenge of climate change, in With its roots in history and forward-looking values, its the evolution of our processes and the adaptation of our business model rests on the constant development of commercial offerings, we recently created a “Climate innovative products and services for the construction Strategy” Department for the Group as a whole. industry. Other examples: extending the lifetime of works, multiple uses, the contribution of biomimicry What are the growth outlooks for 2020 in architecture, functionalization of structures, recycle and beyond? ability of materials, green mobility. A vision written in The year 2020 is off to a good start with improved our DNA for more than 200 years and the invention economic conditions in Brazil in particular and price of artificial cement by Louis Vicat. We support the recovery in Senegal, where the resumption of major environmental, energetic, economic and solidarity construction projects is a reality. transitions through research and development with priority focus on the performance of materials, the In France, the development of cement production environment, the ease of use of our products and technology using activated clays at Xeuilley, to reduce economy of resources. We are also innovating by our clinker factor and thus reduce our carbon footprint involving ourselves in the circular, local economy, in has been launched. We are also expecting our new order to limit consumption of raw materials and water. product sales to take off, thanks to our policy innovation. VICAT Corporate Social Responsibility Informations 2019 5 Ciplan cement plant near Brasilia (Brazil) 6 VICAT Corporate Social Responsibility Informations 2019 PRESENTATION OF THE GROUP 1 1.1. Vicat in the world 8 1.6. Climate change issues 27 1.6.1. Sources of CO2 emissions 27 1.2. Key fi gures 10 1.6.2. Strategies for reducing CO2 emissions 28 1.6.3. Vicat’s actions to lower the carbon intensity of its activities 28 1.3. History 12 1.6.4. Product range 30 1.6.5. Governance 31 1.4. Strategy and objectives 14 1.4.1. The Group’s strengths 14 1.7. R&D and innovation 31 1.4.2. Development strategy analysis by business 15 1.7.1. Low-carbon products 31 1.4.3. Geographic development strategy 16 1.7.2 Constructive solutions 31 1.4.4. Group objectives 16 1.7.3. Partnership policy 32 1.5. Description of businesses 17 1.5.1. Cement 18 1.5.2. Ready-mixed Concrete 23 1.5.3. Aggregates 25 1.5.4. Other Products and Services 26 VICATV Corporate Social Responsibility Informations 2019 7 Presentation of the Group 1 1.1. Vicat in the world 1.1. Vicat in the world 16 cement plants 5 grinding plants 35 UNITED STATES million tonnes 2 cement plants 44 batch plants of cement capacity Capacity: 2.6 Mt of cement 259 BRAZIL 1 cement plant concrete 11 batch plants 2 aggregate quarries batching plants Capacity: 3.2 Mt of cement 70 aggregate quarries €2,740 M 9,947 3 business sales revenues employees segments Cement, Concrete & Aggregates, Other Products & Services 8 VICAT Corporate Social Responsibility Informations 2019 Presentation of the Group 1.1. Vicat in the world SWITZERLAND ITALY 1 1 cement plant 19 batch plants 1 grinding plant KAZAKHSTAN 19 aggregate quarries 2 terminals 1 cement plant Capacity: 0.9 Mt of cement Capacity: 0.5 Mt of cement Capacity: 1.5 Mt of cement FRANCE 5 cement plants 2 grinding plants 149 batch plants 39 aggregate quarries Capacity: 4.6 Mt of cement MAURITANIA 1 grinding plant 1 batch plant Capacity: 0.5 Mt of cement TURKEY 2 cement plants INDIA SENEGAL 35 batch plants 2 cement plants 1 cement plant 7 aggregate quarries 1 aggregate quarry 2 aggregate quarries Capacity: 4.8 Mt of cement Capacity: 8.5 Mt of cement Capacity: 3.4 Mt of cement MALI 1 grinding plant Capacity: 0.8 Mt of cement EGYPT 1 cement plant Capacity: 3.6 Mt of cement 12 countries 22.4 9.1 23.0 where Vicat million tonnes million m3 million tonnes operates of cement of concrete of aggregates VICAT Corporate Social Responsibility Informations 2019 9 Presentation of the Group 1 1.2. Key fi gures 1.2. Key figures CONSOLI DATED SALES REVENUES EBITDA (*) (1) (3) GROUP SHARE OF NET INCOME (*) (3) (in millions of euros) (in millions of euros) (in millions of euros) With 2,740 IFRS 16 149 149 2,563 2,582 142 2,458 2,454 139 526 492 118 444 458 444 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Consolidated sales revenues for 2019 were Group consolidated EBITDA, at € 526 million, The Group share of net income was € 2,740 million, up 6.1% but down -0.8% at was up 6.9% compared with 2018 but slightly € 149 million, stable compared with 2018 constant consolidation scope and exchange down by -0.2% at constant consolidation and down by -6.5% at constant consolidation rates compared with 2018. scope and exchange rates. scope and exchange rates. CASH FLOW FROM OPERATIONS (*) INDUSTRIAL INVESTMENTS NET DEBT/EQUITY (in millions of euros) (*) (3) DISBURSED (in millions of euros) (in %) With IFRS 16 With IFRS 16 50% 425 40% 387 38% 353 37% 342 346 237 33% 179 180 169 139 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Operating cash flow amounted to Industrial investments disbursed amounted The gearing (2) was 49.7% of consolidated € 425 million, generating free cash flow of to € 237 million in 2019. shareholder’s equity as at December 31, € 159 million in 2019. 2019, compared with 37.6% as at December 31, 2018. (*) Figures for 2015 have been restated in accordance with the new accounting method applied to greenhouse gas emission rights. The nature of these restatements is explained in note 1.7 to the consolidated financial statements. (1) EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization): gross operating income plus other ordinary income and expenses. (2) Gearing is a ratio analyzing the financial structure and is equal to net debt divided by consolidated shareholders’ equity. (3) Figures restated in 2018 following the adoption of IFRS 16. 10 VICAT Corporate Social Responsibility Informations 2019 Presentation of the Group 1.2. Key fi gures BY GEOGRAPHICAL AREA (2019) 1 OPERATING SALES REVENUES EBITDA NET CAPITAL EMPLOYED 7% -1% 9% 13% 7% 21% 38% 35% 8% 17% 12% 16% 20% 22% 22% 14% 18% 22% FRANCE EUROPE (EXCLUDING FRANCE) AMERICASASIA MEDITERRANEAN AFRICA BY BUSINESS SEGMENT (2019) OPERATING SALES REVENUES EBITDA NET CAPITAL EMPLOYED 4% 14% 3% 24% 25% 51% 35% 73% 71% CEMENT CONCRETE & AGGREGATES OTHER PRODUCTS & SERVICES VICAT Corporate Social Responsibility Informations 2019 11 Presentation of the Group 1 1.3.