Press Release

H1'18 Financial Results

Increase of volumes and profitability

• Profit after taxes to EUR 29.5 million from EUR 24.1 million in H1'17
• Increase of a-EBITDA to EUR 68.9 million from EUR 65.9 million in H1'17
• Materialization of investments of EUR 42 million in H1'18 2018 according to the investment program

The consolidated revenue of ElvalHalcor increased by 12.8% in Η1'2018⁽¹⁾ amounting to EUR 1,053.2 million versus EUR 934.0 million for the respective prior year period, mainly due to the increase in the volume of group sales by 6.1% at consolidated level, (increase by 9.4% in the copper sector and by 4.4% in the aluminium sector), and at a lesser degree due to the increase in metal prices.

The consolidated gross profit amounted to EUR 83.5 million versus EUR 88.8 million in H1'17. The consolidated earnings before taxes, interest, depreciation and amortization (EBITDA), amounted for H1'18 to profit of EUR 82.5 million versus profit of EUR 90.6 million the prior year's respective period, affected by the reduction in metal profit, which reached to a profit of EUR 13.8 million for H1'18, versus profit EUR 24.7 million for the comparative H1'17. More specifically, the consolidated adjusted earnings before taxes, interest depreciation and amortization (a-EBITDA) which isolate the effect of the metal prices fluctuation and present better the operational profitability of ElvalHalcor increased during H1'18 to profits of EUR 68.7 million versus profits of EUR 65.9 million for the prior year's respective period. Finally, earnings before interest and taxes (EBIT) amounted to profits of EUR 51.7 million versus EUR 61.1 million for the respective H1'17. The profits after tax increased to EUR 29.5 million from EUR 24.1 million for H1'17.

In regards to the aluminium segment of ElvalHalcor the investment program of EUR 150 million is evolving according to schedule, while the necessary funding is secured after the signing of the agreements with European Investment Bank and Commerzbank. As already announced, with this investment ElvalHalcor will fortify its position in the aluminium markets for packaging, transportation means, industrial and architectural applications, laying the foundation for further development in the automotive and aerospace industries. Regarding the evolution of demand, the positive trend is expected to be maintained.

In regards to the copper segment, after the completion of the phase of approvals, for the starting of the joint venture in Nedzink in the Netherlands the first installment of the capital increase has been paid and the investment program is expected to proceed as scheduled. Regarding the evolution of demand, the positive trend for industrial products is expected to be maintained, while the segment already benefits from investments made during the previous years, as well as from the strategic shift towards high added value products, while the revenue of the subsidiary Sofia Med (Bulgaria) showed in the H1'18 double-digit growth.

⁽¹⁾The consolidated results of Η1'17, as published, and due to the accounting treatment of the merger, include the revenues and results of Elval Group only. For the best comparability and depiction of the figures of the ElvalHalcor group, the Company has prepared and is showing pro-forma financial statements that depict the figures of the financial results as if the merger had taken place in 01/01/2017

Aluminium

During H1'18, the aluminium rolling segment increased its volumes by 4.4% and its revenue by 10.5%, with the revenue reaching to EUR 518.1 million. Profit before income tax amounted to EUR 21.4 million versus EUR 29.7 million the respective prior year period due to the decline in the positive effect of the aluminium versus the prior year respective period, while a-EBITDA rose to EUR 43.7 million during H1'18 versus EUR 41.8 million for the respective prior year period.

The summary consolidated statement of profit or loss of the aluminium segment is as follows:

 Copper

During H1'18, the copper segment saw significant growth in sales volumes, which rose by 9.4% versus the prior year period of 2017 and in terms of value by 15.0% with the revenue amounting to EUR 535.0 million. Profit before income tax amounted to EUR 11.7 million profit versus EUR 10.6 million for the respective prior year period, due to the positive effect of the financial expenses, while the a-EBITDA rose to EUR 25 million during H1'18 versus EUR 24.1 million for the respective prior year period.

The summary consolidated statement of profit or loss of the copper segment is as follows: