Press Release

For Analysts Annual Briefing

Athens, 11^th March 2021

Positive results despite unprecedented pandemic

ElvalHalcor invests and expands unaffected by the recession

• Strong profitability with a-EBIDTA at EUR 136 mil.
• Robust and well established presence across all markets 
• Completion of the investment and successful operation of the new four-stand Tandem hot rolling aluminium mill
• Uninterrupted operations for all production facilities despite the Covid-19 pandemic

ElvalHalcor performed today the Analysts Annual Briefing, where the financial performance of the Group during 2020 was presented to the analysts and investors′ community.

More specifically, 2020 was marked by the new coronavirus pandemic that affected and continues to test all countries at a global scale by affecting all aspects of human activity. All countries imposed restrictions in movement, which were called to confront a significant number of challenges. As a result, during the first half of 2020, rapid signs of a substantial slowdown of the global economy started to show at unprecedented levels. ElvalHalcor responded immediately by prioritising the health and safety of its employees, suppliers, customers and partners, taking measures that secure the unhindered operation of its production facilities with the least possible repercussions, supporting our society.

Under these circumstances, ElvalHalcor's consolidated revenues presented a slight decrease by 0.8% for 2020 despite the 6.8% recession in the Eurozone  reaching total sales of EUR 2,028.6 million, compared to EUR 2,044.6 million for the respective prior year. This decline was mainly attributable to the drop in volumes sold by 0.9%, mainly due to significantly lower volume directed to the transportation and automotive sectors of the aluminium segment during the first half of the year due to Covid-19 pandemic, the largest part of  which was  offset by the increased sales to the packaging for food and pharmaceutical segments of the aluminium segment, which proved to be exceptionally resilient to the adverse conditions, as well as the positive trend in the majority of copper products, despite the decreased demand. Amid these conditions and due to the increased competition that has been observed due to significant recession caused by the pandemic, the adjusted consolidated earnings before taxes, interest, depreciation and amortisation, metal result, and other incidental costs (a-EBITDA) rose to the EUR 136.0 million mark for 2020, versus EUR 140.0 million for the prior year. This slight decrease is considered as an achievement that justifies the strategic choices of  agility in production and risk diversification in both products and markets.

Consolidated gross profit, affected by the declining metal prices, amounted to EUR 135.0 million for 2020, compared to EUR 145.1 million for 2019, as the metal result amounted to a loss of EUR 9.0 million for 2020 affected mainly by the decline in the market value of metal prices of aluminium, compared to a loss of EUR 2.1 million for the fiscal year of 2019. This downtrend also impacted the consolidated earnings before taxes, interest, depreciation and amortisation (EBITDA), which amounted to EUR 121.6 million, compared to EUR 137.4 million in 2019, with the negative effect of the additional expenses in response to the pandemic Covid-19 reaching EUR 4 million to increase the deviation from the previous year.

Finally, consolidated profit after tax amounted to EUR 29.5 million compared to EUR 41.9 million year-on-year, with the decrease in the net result after tax being attributable to the downtrend in metal prices, the relatively small decline in volume sold, and the extraordinary expenses in response to the Covid-19 pandemic. Earnings after tax and non-controlling interests reached EUR 28.5 million or EUR 0.0758 per share compared to EUR 41.3 million or EUR 0.1101 per share in 2019.

Prospects for 2021

In regards to the Aluminium segment, after completion of the investment project of EUR 150 million, the implementation of the new investment programme of EUR 100 million initiated, which includes, among others a six-high cold rolling mill and a new lacquering line, and aims to fully utilise production capacity both in quantity and in quality.

The Copper segment will remain focused on the implementation of the product strategy of continuously increasing the utilisation of the capacity of copper and alloy rolling, as well as on the utilisation of the joint venture of NedΖink for the production of titanium zinc, enhancing the product portfolio of the segment.

For 2021, ElvalHalcor closely follows up on the developments and is ready to address any short-term market fluctuations. In parallel, it retains its long-term strategy for further increasing growth of sales both in Europe as well as outside Europe, and increasing capacity and market shares in products with dynamic prospects in the context of international trends dealing with climate change, energy efficiency, electrification as well as the circular economy through sustainable growth and the transition to a model of a more environmentally friendly economy.

About ElvalHalcor

ElvalHalcor is a leading global industrial producer of aluminium and copper products. The Company was formed in December 2017 via the merger of ELVAL and HALCOR. ElvalHalcor currently holds a leading position in Europe in the copper tubes sector, while also having established its leading position within the global aluminum rolling industry. The Company has over 80 years of experience and know-how, a strong production base across 15 state-of-the-art production plants and a market presence in over 100 countries. ElvalHalcor offers sustainable solutions and products in dynamically developing markets such as packaging, transportation, building and construction, heating, cooling and air conditioning and RES. ElvalHalcor′s growth focuses on investing in technology and sustainable development, thereby creating value for its stakeholders. For more information about the Company, please visit the website www.elvalhalcor.com