Hello, and welcome to the Vicat Q3 Sales 2021 conference call. For the duration of the call, your lines will be on listen only. However, later in the call you will have the opportunity to ask questions by simply pressing star one on your telephone keypad. If at any point you need assistance, please press star zero and you'll be connected to the operator. I would now like to hand over to our host, Hugues Chomel, Chief Financial Officer, to begin the call. Thank you. Good afternoon. My name is Hugues Chomel. I'm the Deputy CEO and CFO of the Vicat Group. With me today is Stéphane Bisseuil, Investment Relations Director of the group. Together, we will be presenting to you the in-depth figures for the nine months of 2021. Before starting the presentation, please have a look at slide two, where you can read our disclaimer regarding the forward-looking statements that this presentation may contain. On slide three, we begin with the key points of the first nine months of 2021. Consolidated sales to September 30 were slightly over EUR 1.635 billion, up 20% at constant scope and exchange rates. This also represents a 15% growth from the figure of 2019 at reported rates. This growth was supported by solid business progression in all regions. In the third quarter, sales rose 8.5% at constant scope and exchange rates on the back of rising selling prices and despite an unfavorable basis of comparison in France. On slide four, you have the breakdown in sales by region over the first nine months. This period was marked by an organic growth of 19.7%, a negative currency effect of -5%, and a small negative scope effect reversing from the sale of Creabeton Matériaux in Switzerland. Over the first nine months of the year, a hike in selling prices fully offset the impact of higher energy costs. In the third quarter of 2021, sales came to around EUR 800 million. It was up by 8.5% at constant scope and exchange rates, confirming the strength of the group's business trends in a quarter when the basis of comparison was highly unfavorable in France, and to a lesser extent, in the Americas and India. Despite this sharp drop, selling prices continued to move significantly higher, offsetting to a large extent higher energy costs during the year. We begin on slide five with the group performance in France over the first nine months of the year, which improved substantially, boosted by significant growth in demand compared not only with 2020, but also with 2019. The global pandemic effects again dragged down performance. The favorable basis of comparison for sales in the first six months of the year, the government measures, and the steps taken by the group enabled it to seize growth opportunities and to report a strong performance across all its business areas in the first nine months of the year. In the third quarter, sales declined 3% at constant scope after a strong rebound of Q3 2020. They were up 5% compared to Q3 2019. Let us move now to Europe on slide six. The Swiss market, which was barely affected by the pandemic in 2020, reported growth at the start of the year. Italy benefited from a highly favorable basis of comparison, given the very challenging pandemic and macroeconomic situation in 2020. Italy had solid growth throughout the period, thanks to a strong demand. In the third quarter, business trends in Europe remained firm, both in Switzerland and Italy, with consolidated sales up 3.8% at constant scope and exchange rates. Reported sales reflected the impact of Creabeton deconsolidation as at June 30. On slide seven, for performance in America. In the United States, trends in the second and third quarter were affected by an unfavorable basis of comparison in California and cool weather conditions in the Southeast region. Nonetheless, consolidated sales recorded an increase at constant scope and exchange rates of +8% year- to- date and +3% in the quarter on the basis of positive pricing trends in both regions. Construction of a new kiln line at the Ragland plant in Alabama made swift progress during the year and is scheduled to enter in service in the first quarter of 2022. New installation will help meet the strong market demand by increasing the plant capacity, sharply reducing production costs, and lowering the group's CO2 emissions. In Brazil, consolidated sales reached EUR 136 million, up 35% at constant scope and exchange rates. In the third quarter, sales rose 10% despite the unfavorable basis of comparison arising from the dynamic sales performance of 2020. The cement business operational sales were up 33%, reflecting dynamic market conditions and positive pricing trends. In the third quarter, operational sales rose, supported by increased selling prices. In the concrete and aggregate business, operational sales increased 44%, parallel similar trends in the cement business. The improvement in market conditions have coupled to rise in prices both in concrete and in aggregates. Please, turn to slide eight for our performance in Asia. Business in India grew sharply throughout the period, supported by strong demand and the effect of increases in government contracts. As a result of these conditions, prices held up well during the period, and consolidated sales totaled at EUR 268 million in the first nine months of 2021, up 26% at constant scope and exchange rates. In the third quarter, sales rose 22%. Consolidated sales in Kazakhstan are up 13% at constant scope and exchange rates. Given the dynamic trends in the Kazakh market, prices recorded a significant increase. In the third quarter, sales rose 13%. On slide nine now. In Turkey, while the macroeconomic and sector environment remains uncertain, the recovery in the construction market remains on track. Consolidated sales in the first nine months of 2021 totaled EUR 113 million, up 63% at constant scope and exchange rates, powered by rises in both prices and volumes. In the third quarter, environment continued to improve, with consolidated sales rising by 51%. In Egypt, consolidated sales totaled EUR 53 million, up 67% at constant scope and exchange rates. The market regulation agreement between the Egyptian government and all producers entered into force in July 2021. It paved the way for an improvement in selling prices in the domestic market. In the third quarter, sales increased by 57%, with selling prices well above levels recorded in the third quarter of 2020. On slide 10, we move to Africa, where the group continues to benefit from favorable sector demand backed by the ramp-up of the grinding station in Mali. Sales moved up 29% at constant scope and exchange rates in the third quarter. In the cement business, operational sales in the Africa region grew 23%, with a boost provided by the dynamic trends in the West African market, especially in Senegal. Selling prices in Senegal were consistently lower than in the year earlier period, given the introduction of a new tax on cement in May 2020. Pricing conditions in Mali and Mauritania are positive. In the third quarter, operational sales moved up 31%. The aggregates business in Senegal recorded consolidated sales of EUR 21 million, up 15% over the period, as a result of a gradual resumption of major government projects. In the third quarter, sales rose 21%. On slide 11, we have our outlook for the full year 2021. The group anticipates an increase in its full year EBITDA. Dynamic market conditions with a significant rise in sales volume. Positive trends in average selling prices. These factors will help to offset unfavorable currency effects and an increase in energy costs of around 14% over the year. During 2021, the group is keeping up its investment drive with the swift construction of a new kiln at Ragland plant in the United States. Drive to incrementally boost capacity at selected production facilities. Ramp up in projects to meet the carbon footprint reduction targets. Accordingly, discussed industrial CapEx is now expected to be around EUR 410 million as the group continues to adapt its industrial investment with cash flow generation. This concludes our presentation for today. Kevin, we can move on to questions, please. Thank you very much. Everybody, if you would now like to ask a question on today's call, please press star one on your telephone keypad, and please ensure your line is unmuted locally. Once again, if you are wishing to ask a question, please press star one. Our first question today comes from the line of George Speak from Exane BNP Paribas. Please go ahead. Afternoon. Thanks for taking my question. Two if I may actually. Firstly, the consensus it's implying about 130 bps of EBITDA margin squeeze in second half. I mean, can you give a bit of color on sort of the energy cost pressure and pricing seems to be holding up well. I just wanted to get your sense of whether there's gonna be any margin squeeze in Q3 and the second half of the year, and if there's a sort of downside risk there at all. Do you wanna take that one and then I'll ask the second question. Say that again. Sorry, I didn't catch that. Can you go ahead with the second question, please? Oh, sure. The second one was just around tier two permits. You commented you're long till the late 2020s, whereas actually peers are short. I just wondered if in France there's any sort of extra margin benefits or if you're gonna try and keep pricing a bit lower to win market share going forward. Okay. Okay. Regarding H2 margin performance, if you recall, things are coming up quite similarly to what we have announced previously. First of all, the H2 basis of comparison was significantly higher considering the strong rebound we did last year in Q3 and Q4, specifically in France and in India and U.S. And in America, sorry. However, what we have witnessed this year is a strong market trend that has been still dynamic throughout Q3. We have witnessed as well stronger inflation costs, but as well increased volume that did consume our hedges somewhat quicker than expected. The strong level of activity did allow us to utilize our pricing power and to push strong pricing increases, which did largely offset the energy cost. Okay. Thanks. Can you answer the CO2 question then? The other question was? Sorry. Sorry. It's just on, y ou're currently long on permits, whether you sort of see that enabling you to, you know, take sort of extra margin if you're gonna keep price lower going forward into 2020s, given that quite a few of your peers are short. No, we certainly are aiming to increase prices wherever market allows to offset rising energy costs and where applicable CO2 costs as well. We will continue with the current drive. Okay. That's clear. All right, thank you. I don't have any second questions. Thank you. You're welcome. Thank you very much. Just as a reminder to everybody once again, if you are wishing to ask a question on the call, please press star one. Our next question comes from the line of [Emily Abraham] from TSE. Please go ahead. Hello. Two questions, if I may. The first one, do you expect that the inflation of raw materials, especially [inaudible] will last after the first half in 2022? How are you hedged against raw materials price variation? The second one, can you give us an update on the sanitary situation in India? Okay. Thank you for your questions. Well, the first question is an expensive one, and actually I don't have a view on what will happen on the group prices after H1 2022. We certainly keep on buying energy forward and to best manage our inventory. Nevertheless, we expect a strong energy cost increase going into next year. Regarding your question on the Indian market, well the prices have been holding well and are heading to increase currently as all producers are facing a strong increase in energy prices. A t the moment, it is well oriented. Thank you very much. Thank you very much. We now have a question from the line of Pierre [Pedrosa]. Please go ahead. Yes, good afternoon, gentlemen. Thank you for taking my question. The first one is a follow-up on the price cost, perhaps more into next year. Usually you lock in the costs fairly early on, so do you have any view on the kind of inflation you would probably face for 2022? Second question would be, well Egypt specifically, we hear you and the two competitors mentioning that pricing is gradually improving. W hat would be the extent of the prices increase currently, and what would be the extent of increases that would be required to reach break even at the EBITDA level? Regarding inflation, obviously, we will face strong inflation on energy because globally into next year. Stronger than what we are seeing today. Obviously, we will continue to do our best to pass on this inflation to the market. In most cases so far, the market has been able to accept it. It is nevertheless a little early to tell what will be the net impact into next year. Regarding Egypt, the price increase is clearly quite significant. S orry, Pierre. Is it a question on prices in Egypt particularly or-- Yes. In Egypt. It is clearly quite marked price increase. We are back to well above a year ago. In the recent months, we are close to break-even at EBITDA level. The question is, will the system be able to manage as well the consequences of energy cost increase. So far, the system is working well and is adapting but it is early months of this implementation. It's probably a little early to decide. Understood. Thank you. Thank you very much. As a final reminder, if you are wishing to ask a question, please press star one. Our next question comes from the line of Jean-Christophe Lefèvre-Moulenq from CIC. Please go ahead. Merci. Bonjour. Good afternoon. We have two questions from me. First, price hikes over the second half. In some European countries there were some announcements, notably in France for price hikes. What is quite exceptional this year since a long time. Can you confirm this? W hat is the order of magnitude? Se condly, the trend we saw with the Italian pricing, first half was more or less plus 10% versus first half 2020. Do we have a further price hike in your market? Many thanks. [Non-English content]. Thank you for your questions, Jean-Christophe. Regarding the French situation, as you know, this is the time where we are enhancing price hike to our customers. It's clearly our objective to pass on the energy cost increase as well as to establish the climate transition contribution for customers. Indeed, the combination of these hikes is substantial, but it's still under discussion. It's too early to give an indication on the net magnitude globally. In Italy, as you know, we are a small player there, and we are not fully integrated as we have terminals and a grinding station. We clearly aim to pass the cost onto the market. It has been indeed progressing well through the year, and we will continue to aim to match our cost increases. Coming back to France. My question was regarding the second half of 2021, not 2022. I think that from some different feedback, so recent players implemented the price hike in July or end of August. Do you confirm this? Can we have the order of magnitude or is that only a rumor? Be aware, I can speak only for France. Yes. There was an implementation of the climate transition contribution that has been implemented, but comes in front as well of a cost increase. Okay. Many thanks. Thank you very much. We now have a question from the line of Arnaud Pinatel from On Field Investment Research. Please go ahead. Good afternoon. Good afternoon, Stéphane. A very simple question on pricing for 2022 again. We are hearing from some of your key people that they are willing to change the frequency of a number of price increases they will implement going forward in the different markets where they are operating. Starting obviously in 2022. Just wanted to understand if this is something you are considering too. My second question is still related to price. Could you please help us to understand, and could you quantify in percentage terms, what would be the impact in the full year of 2022 of the price increase you have already executed in the second quarter of 2021. Given everything has been sold without any new price increase in 2022, what can we expect at the group level as a price variation coming from what has been implemented in H2 2021? Thank you very much. Hello, Arnaud. Stéphane speaking. Just to answer your first question, as always, it depends on geographies. Vicat would be extremely pleased to pass further price increases within the year in some countries where the habit is more to have one like Switzerland or France. As mentioned in the previous question, it could be some exception, as it happened in France this year. Same for the U.S., if you remember historically, we were passing two price increases till 2014, then it was only one. Now we have the ability to pass another price increases last year in H2 in California and this year in Alabama. Everything is possible. Regarding emerging countries, as you know, price increases are within the year and on a regular basis. Your party has been disconnected. Hello? Your party has been disconnected. Hello? Your party has been disconnected. Apologies for any interruption. Please go ahead with your presentation. Yes. Sorry, Arnaud. What I was saying, in emerging countries, we have the ability to pass through, you know, price increases within the year, on a regular basis, depending on the situation and the competitive situation more specifically. You can look to India, Turkey, Brazil. We have many. For the last few months or few semesters, we had the ability to pass, you know, significant number of price increases, so we'll continue on this. Regarding France and Switzerland, it's always more difficult. For sure it's competition and if we see the market opportunities that, you know, second price increase or a third price increase, we'll be happy to do it. It would really depend on the competitive situation, market to market. Regarding the price increases that have been implemented so far in H1, it's in the pocket, so it's always good. It's way too early to tell you exactly what will be the impact over 2022, as the year is not over. Once again, depending on countries, there are still currently price increases that we are passing to customers. We will make a specific point on this subject probably at the time of the full year presentation in early February. Perhaps the last question on pricing, hearing you. We have seen across Africa or in India, governments, you know, trying to contain the cement pricing inflation through different interventionist measures. Do you see we could see that again in 2022? Is it a risk for your scenario to push prices next year? Yes, Arnaud. Hugues Chomel speaking. As you know, in emerging countries, cement is a very visible daily commodity, even from people in the streets, so everybody knows the price of cement. Therefore, it is indeed true that governments are quite often tempted to control the cement prices. In India, I mean, there is from time to time noises in the press from contractors or politicians regarding prices. But at the end of the day, the market is deciding and depending on the supply situation, prices go through or not. I think we are in India in a context where the mechanisms of the market are playing properly. We have recently witnessed the same situation in Turkey where there was, I mean, some political noise, but at the end of the day, the prices are going in the right direction. Obviously, Egypt is a very specific context where the government has stepped in to try to put the market back into an economic mechanism, where your remark probably has its most effect in Senegal, where the government authorities have been capping prices. At the same time, I think they understand the pressure that inflation, of course, is putting on the sector, and we are hopeful that they will let the market play its role. Okay. Thank you very much. Thank you very much for your questions, everybody. All questions have now been answered, so I'd like to hand back to our host, Hugues Chomel for any final remarks. Yes. Thank you all for your questions. Before we end the call, I'd like to remind you that we are holding a climate strategy day on Tuesday, November sixteenth. Documents with recordings of the various presentations will be made available on our website at 10:30 A.M. Central European Time. With that's it for today. Thank you for your interest in Vicat, and à bientôt. Thank you very much, everybody, for joining today's call with Vicat. You may now disconnect your line.