Victoria Regulatory News (VCP)

For Immediate Release 5 April 2022

Victoria PLC

('Victoria' or the 'Group')

Completion of the Carve Out & Acquisition of

the Rugs & UK Carpet Divisions of Balta Group NV

Victoria PLC (LSE: VCP), the international designer, manufacturer and distributor of innovative flooring, is pleased to confirm that, following the announcement on 29 November 2021, it has completed the acquisition of the highly profitable and growing rugs division of Balta Group, the Belgium-based flooring company, along with its profitable UK polypropylene carpet and non-woven carpet businesses (collectively "the Divisions"), together with the internationally-known brand, "Balta" (the "Acquisition"). More information about the Acquisition is available on Victoria's website at www.victoriaplc.com/balta-presentation.

The total consideration, taking into account working capital movements and cash generation since 29 November is approximately €164 million (£139m1), including an expected small completion adjustment to be settled in the coming weeks. This has been met entirely from the Group's existing cash balances. As at 28 February 2022, the Divisions had debt2 of approximately €55 million (£47m1), which remains in place.

For the 12 months ended March 2021, the Divisions generated unaudited total revenues of €307.0 million (c. £260.2m1) (FY2020: €303.5m) and normalised EBITDA of €35.5 million (c. £30.1m1) (FY2020: €29.9m). As at 28 February 2022, net assets3 excluding the above debt were approximately €238 million (c. £202m1).

The Acquisition will be immediately earnings-accretive. Furthermore, Victoria has acquired specifically those Divisions that provide the maximum synergistic opportunities. The full integration of the Divisions with Victoria's existing manufacturing and distribution operations over the next 24-36 months are expected by the Board to deliver in excess of €15 million per year of ongoing cost synergies, which will create significant value for shareholders.

Victoria's operating management have proven their ability to deliver synergies, and are laser focused on execution of its detailed pre-closing cost and revenue synergy plan. A short case study of the gains achieved at one of the Group's early carpet acquisitions, Abingdon Flooring, is available on Victoria's website at: www.victoriaplc.com/abingdon-case-study.

Cyrille Ragoucy, Balta's Chief Executive said,

"I would like to thank the whole Balta team for the passion, the dedication and the hard work to achieve the completion of this mutually beneficial transaction with Victoria PLC. I wish our colleagues at Balta Home, the Residential PP business and Captiqs all the best under the new ownership."

Philippe Hamers, Victoria's Chief Executive said,

"We are excited to have completed the Balta Rugs and Broadloom Carpet acquisition and we are looking forward to developing the planned synergies with our incumbent business. We cannot wait to get started working closely together with our new colleagues. I would like to thank the selling Balta management team for the professional and straightforward discussions which have led to this successful deal."

1 Applying a GBP:EUR exchange rate of 1.18

2 Excluding IFRS 16 operating leases

3 Source: Balta management accounts; prior to any fair value adjustments or recognition of intangible assets on acquisitions under IFRS