Introduction to Vesuvius

Welcome to the annual report of our first full year as an independent company listed on the London Stock Exchange.

Vesuvius is a global leader in molten metal flow engineering, principally serving the steel and foundry industries with customised products, services and technologies that make demanding applications possible.

Our mission is to develop innovative solutions that enable our customers to improve the performance of their manufacturing process and reduce energy consumption, whilst providing each employee with a safe workplace where he or she is recognised, developed and properly rewarded.

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Highlights

Revenue
(£m)

Revenue

EBITDA(3)
(£m)

Etibda

Trading Profit(3)
(£m)

Trading Profit

Free Cash Flow(3)
(£m)

Graphs Free Cash Flow

Headline Earnings(2)
(£m)

Headline Earnings

Headline EPS(2)
(p)

Headline

Chairman's Statement

Chairman's Statement

I am pleased to be able to report on a successful first year for Vesuvius plc (the"Company"). There is no doubt that your Company has benefited from the independent status and greater focus it has enjoyed since its creation as a result of the demerger of Cookson Group in December 2012.

Chief Executive's Review

Chief Executive's Review

In our first complete year as an independent company, we have successfully initiated the recovery of margins across the Group despite the unfavourable economic environment.

Financial Review

Financial Review

Since the demerger we have been busy on a number of fronts: streamlining and focusing the asset portfolio; improving operating margins; increasing cash flow; and strengthening the balance sheet. We have made significant progress in each of these key areas during the year, all of which underpin our ability to provide superior returns to our shareholders.

The Vesuvius Business Model

We operate a profitable, flexible, cash-generative and growth-generating business model.

This model has been developed and refined over many years to build the brand equity of our Vesuvius and Foseco products through reliability, technology and service.

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Steel Division

According to the World Steel Association ("WSA") global steel production (see above chart) grew 3.5% in 2013 vs 2012 to 1,607.2 megatonnes ("Mt"), with China experiencing growth of 9.9% to 779Mt; global production, excluding China, was flat at 828.2Mt.

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Foundry Division

The light vehicle industry continued to face challenges in most parts of the world. German light vehicle production reduced 2.5% on 2012, with strong exports to China and the US not fully compensating for weak domestic demand.

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