Press Release

Trading Update Q1'18 Financial Results

The consolidated revenue of ElvalHalcor marked an increase of 14.2% for the first quarter of 2018(1) amounting to EUR 528.2 mil versus EUR 462.6 mil for the respective prior year period, mainly due to the increase of the volume of sales at consolidated level by 7.2% and secondarily by the slightly increased metal prices.

The adjusted consolidated earnings before taxes, interest depreciation and amortization (a-EBITDA) were increased by 10.3% during the first quarter of 2018 amounting to EUR 36.3 million versus EUR 32.9 million in the prior year respective period, increased by EUR 3.4 mil. This positive trend was the result of the increase of the volume of sales, as well as the improved sales mix.

The average copper price amounted for the first quarter of 2018 to EUR 5,663 per ton for Q1'18 versus EUR 5,475 per ton for Q1'17 of and the average aluminium price amounted to EUR 1,756 per ton versus EUR 1,738 respectively. As the positive effect of the metals was significantly lower in Q1'18, the consolidated earnings before taxes, interest depreciation and amortization (EBITDA), amounted to profit of EUR 44.3 mil. versus profit of EUR 52.5 mil. the prior year respective period, while the consolidated earnings before taxes, interest (EBIT) amounted to EUR 20.0 mil. versus EUR 29.1 mil for the prior year period. These reductions are due to the trend of the metal prices as the a-EBITDA, which isolates this effect and expresses in a better way the operational profitability of the Company, was increased.

The shift to industrial products of high added value and improved margin, as a result of the investments that took place during the prior years, is positively affecting profitability and the a-EBITDA through the broader spectrum and enhanced quality product portfolio. The first quarter of 2017, benefited by the strong US dollar versus the EUR by strengthening the profitability in dollar denominated markets.

In regards to the aluminium segment of ElvalHalcor the investment program of EUR 150 mil. is evolving according to schedule, while the necessary funding is secured after the signing of the agreements with EURpean Investment Bank and Commerzbank. More specifically for the next two years EUR 150 mil. will be invested in equipment, technology, and infrastructure with the aim to increase initially by more than 20% the production capacity of the aluminium rolling division of ElvalHalcor and to set the basis for additional future investments that will more than double the capacity.

In regards to the copper segment, considering that the phase of approvals has been completed, for the starting of the joint venture in Nedzink S.Α., this is expected to proceed as scheduled. Regarding the sales in products the positive trend is expected to be maintained while the segment is already benefiting from investments made during the previous years, and from the strategic shift towards high added value products while the revenue of the subsidiary Sofia Med is growing on double digits.

(1)The consolidated results of Q1'17, 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

Amounts in thousands

Q1'18

Q1'17

Q1'18

Q1'17

EUR

As published

As published

For the 3 months

For the 3 months

Pro-forma

Sales

528,219

233,805

528,219

462,641

Gross profit

42,982

29,040

42,982

51,087

EBITDA

44,325

32,393

44,325

52,543

a-EBITDA

36,297

22,010

36,297

32,935

ΕΒΙΤ

28,964

21,657

28,964

37,852

Profit before tax

20,002

18,811

20,002

29,087

Profit after tax

22,098

13,220

22,098

23,786

Profit after tax & non-

21,727

13,319

-

-

controlling interests

Earnings per share

0.0579

0.0486

-

-

Aluminium

During Q1'18, the aluminium rolling segment increased its volumes by 4.8% and its revenue by 12.2% to EUR 262 mil.

Profit before income tax amounted to EUR 12.6 mil. versus EUR 18.8 mil. the respective prior year period due to the decline of the positive effect of the aluminium versus the prior year respective period, while a-EBITDA rose to EUR 24.5 mil. during Q1'18 versus EUR 22.0 mil. for the respective prior year period.

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

For the three months ending on 31st of March of

Amounts in EUR thousand

2018

2017

Revenue

262,260

233,805

Gross profit

24,567

29,040

EBITDA

28,235

32,393

a-EBITDA

24,506

22,010

EBIT

17,137

21,657

Profit / (Loss) before income tax

12,628

18,811

Copper

During Q1'18, the copper segment saw significant growth in sales volumes, which rose by 11.9% versus the prior year period of 2017 and in terms of value by 16.1% with the revenue amounting to 266 mil.. Profit before income tax amounted to EUR 7.3 mil. profit versus EUR 10.3 mil. for the respective prior year period, due to the reduction of the positive effect of the price of copper, while the a-EBITDA rose to EUR 11.8 mil. during Q1'18 versus EUR 10.9 mil. for the respective prior year period.

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

For the three months ending on 31st of March of

Amounts in EUR thousand

2018

2017

Revenue

265,959

229,105

Gross profit

18,415

22,046

EBITDA

16,089

20,150

a-EBITDA

11,789

10,925

EBIT

11,825

16,195

Profit / (Loss) before income tax

7,372

10,276

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Disclaimer

Elvalhalcor Hellenic Copper and Aluminium Industry SA published this content on 23 May 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 23 May 2018 16:12:04 UTC