ΕΛΒΑΛ Α.Ε.

Ordinary General Assembly - Press Release

Today on Wednesday, 17 June 2009 the annual Ordinary General Assembly of Shareholders of ELVAL HELLENIC ALUMINIUM INDUSTRY S.A. was held at the President Hotel. All the items of the agenda were approved by the shareholders. More specifically, the 2008 financial statements were approved along with the reports prepared by the Board of Directors and the Auditors, and the members of the Board of Directors were relieved of any indemnification liability for the above fiscal year. In addition, KPMG CERTIFIED AUDITORS S.A. were appointed as the Company's independent auditors. Moreover, a resolution was passed for amending article 11, par. 1 of the Company's Articles of Association regarding the number of members of the Board of Directors, and 11 persons were elected to serve as members of the Company's Board of Directors. Among other things, the members of the Audit Committee were appointed, and approval was given for own participation in investments subjected to Law No. 3299/2004 on development.
As regards the progress of the Company in 2008, the production of the Oinofyta plant reached 181.4 thousand tons, compared to 191.5 thousand tons in 2007. The international economic recession, which did affect the Company's results in the last quarter of 2008, led to a drop in product demand and a dramatic reduction in raw material prices. The sudden drop of aluminium price in December forced the Company to proceed with one single impairment of its basic inventory, which is not covered by Hedging contracts, by Euro 12.8 million. Amidst an adverse global business environment, ELVAL suffered losses before taxes amounting to Euro 12.4 million. The Company's earnings before interest, tax, depreciation and amortization (EBITDA) amounted to Euro 12.7 million, a 73.8% drop compared to 2007, and its losses after taxes amounted to Euro 1.2 million. Respectively, the consolidated earnings before interest, tax, depreciation and amortization (EBITDA) amounted to Euro 32.5 (-61.9%), and the consolidated results before taxes amounted to losses equal to Euro 29.2 million, whereas the consolidated losses after taxes and minority interest amounted to Euro 8.9 million. The investment plan was implemented to an extensive degree and required disbursements amounting to Euro 27 million for the Company and Euro 73.8 million for the Group. In the last quarter, emphasis was placed on reducing the Group's loans and improving its liquidity, thus leading to a reduction in net borrowing, compared to the end of the third quarter, which dropped to Euro 278.8 million from Euro 306.0 million for the Group, and Euro 126.2 million from Euro 151.0 million for the Company.
As regards developments in 2009, the adverse conditions resulting from the global economic recession are still being felt and have had a negative impact on the results of the first quarter, thus resulting in a consolidated turnover amounting to Euro 168.5 million, reduced by 25.3% compared to the corresponding period of 2008. Also reduced were the consolidated earnings before interest, tax, depreciation and amortization (EBITDA), which dropped to Euro 11.6 million (-16%), and thus the Group suffered losses before taxes amounting to Euro 2.4 million (losses equal to Euro 0.0142 per share, compared to losses equal to Euro 0.0091 per share in the first quarter of 2008). The Group's cash and cash equivalents were increased with positive cash flows amounting to Euro 38.8 and its net borrowing was reduced to Euro 238.6 million.
Amidst such an adverse environment, the ELVAL Group reinforced its position globally by developing closer relations with FURUKAWA - SKY ALUMINIUM, which acquired 25% of subsidiary BRIDGNORTH ALUMINIUM Ltd., whereas the priorities set by the Management include reinforcing its commercial presence in areas that are less affected by the crisis and further boosting the Group's liquidity.