September, 2021

Europe Greece

Basic Resources - Nonferrous Metals

Company Description

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 17 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.

Share Data

Price (€)

€ 1.980

(14/09/2020)

# of shares

375,241,586

Capitalization

€ 744

(mil.€)

% change since

+16.5%

31/12/2020

52 wks high (€)

€ 2.59

52 wks low (€)

€ 1.29

REUTERS

ELHA.AT

BLOOMBERG

ELHA:GA

Shareholders Structure

Free Float

15.22%

VIOHALCO

84.78%

ELVALHALCOR SA: 62nd km. ATHENS - LAMIA NATIONAL ROAD, 32011, INOFYTA - VIOTIA

Tel.: +3022620 31541, fax: +3022620 31576, www.elvalhalcor.com

C.F.O. : Spyros Kokkolis skokolis@elvalhalcor.com

Ιnvestor Relations: Alexandros Kompotis akompotis@elvalhalcor.com

IR RELEASE Η1'21

Results Η1

Consolidated

(M €)

2021

2020

(%)

Turnover

1,343.9

998.8

35%

Gross Profit

130.7

58.6

123%

a-EBITDA

85.2

67.9

26%

EBITDA

122.8

52.1

136%

EBIT

89.0

21.3

317%

EBT

97.9

8.9

1003%

Profit after tax

85.8

7.8

999%

Profit after tax

83.6

7.6

& non-controlling interests

Margin

Gross Profit

9.7%

5.9%

a-EBITDA

6.3%

6.6%

EBITDA

9.1%

5.2%

H1 '21 Results

2021 started dynamically for ElvalHalcor, following on from a strong last quarter of 2020, with recovery in demand across most sectors, and in some cases surpassing pre-pandemic levels. The recovery of the building and construction as well as the automotive and transportation industry, which had lagged during the previous year, adversely affecting the aluminium segment, was especially strong. As a result, sales volumes grew by 16.5%, driven primarily by aluminium, followed by copper and copper alloys rolled products.

Market optimism and increased demand led to a rapid increase in metal prices in the LME, with the average price of copper amounting to EUR/t 7,544 (51.2% higher versus H120) and the average price of aluminium amounting to EUR/t 1,864 (up by 28.8% compared to H120). The combination of increased volumes and metal prices resulted in sales revenue of EUR 1,343.9 million for Η121, increased by 34.6% versus the same period the previous year (sales revenue of EUR 998.8 million for Η120).

The increase in sales volumes and the positive impact of the increased consumption of scrap partly offset the negative pressure from an increase in the price of natural gas. Consequently, ElvalHalcor's adjusted consolidated earnings before taxes, interest, depreciation and amortisation, metal result, and other incidental costs (a-EBITDA), which are a more accurate reflection of operational profitability, rose by 25.5%, reaching EUR 85.2 million versus EUR 67.9 million for the respective prior-year period.

The uptrend in metal prices positively impacted the accounting results from metal, which reached a profit of EUR 41.4 million for Η121 versus a loss of EUR

  1. million for Η120. Supported by the positive metal result, gross profit increased to EUR 130.7 million versus EUR 58.6 million for the first six months of 2020. Furthermore, it is also worth noting that safeguarding of the Company's personnel and stakeholders from the effects of the pandemic continued throughout the period, with EUR 2.3 million of expenses included in the consolidated results versus EUR 1.7 million for H120. The consolidated profit before tax, interest, depreciation, and amortisation (EBITDA) amounted to EUR
  2. million versus EUR 52.1 for the respective period of 2020.

Finally, profit after tax amounted to EUR 85.8 million versus a profit of EUR 7.8 million for H120, with profit after tax and non-controlling interest reaching EUR

83.6 million for H121 or EUR 0.2227 per share from EUR 7.6 million for H120 or EUR 0.0202 per share.

September 2021

IR RELEASE H1'21

Volume of Sales in kt

+16.5%

273.4

234.6

Al

142.8

+23.6%

176.4

Cu

91.8

+5.6%

97.0

H1'20

H1'21

Results per Segment H1'21

ALUMINIUM

COPPER

During H121, the aluminium segment achieved an increase in the volume of sales by 23.6%, whereas sales revenue amounted to EUR 604.5 million, increased by 27.1%. The segment was positively affected by the recovery of the automotive and transportation and the building and construction industries, managing to take advantage of the gradually increasing production capacity by the integration of the new hot rolling mill in the production. Earnings before taxes amounted to EUR 37.1 million versus EUR 10 million, for the respective previous year period, while the a-EBITDA amounted to a profit of EUR 56.2 million in H121 versus EUR 40.0 million for the respective prior year period.

In regards to the investment programme, after the operation of the new hot rolling mill, the second phase of the planned investments has started, with the amount of EUR 47 million invested in PPE, out of which EUR 35.5 million were dedicated to the production facilities of the aluminium rolling facilities of the parent Company in Oinofyta, Greece.

At the end of the first six months of 2021, the copper segment marked an increase in sales volumes by 5.6%, with the uptrend fuelled by the almost double-digit growth of sales volumes of copper and copper alloy rolled products, as well as the full recovery of the copper alloy extrusion products, which surpassed the pre-pandemic sales volumes. Boosted by the increased copper prices in the international markets, sales revenue amounted to EUR 739.4 million, marking an increase of 41.3%. Profit before tax amounted to a profit of EUR 60.8 million versus a loss of EUR 1.0 million in the respective H120, also affected by the positive metal result, while a-EBITDA improved and reached EUR 29 million in the H121 versus EUR 27.8 million in the respective previous year period.

In regards to investments for H121, EUR 8.9 million were invested for the completion of the investment programmes, out of which amount of EUR 4.1 million was directed to production facilities of the parent Company in Oinofyta, while EUR 2.7 million were invested by the subsidiary Sofia Med for the implementation of upgrades in order to increase the range of offered rolling products.

ALUMINIUM

For the 6 months ending on

30.06

(€'000)

2021

2020

Revenue

604,473

475,545

EBITDA

66,947

35,154

a-EBITDA

56,239

40,009

ΕΒΙΤ

44,358

15,056

Profit before Taxes

37,103

9,887

COPPER

For the 6 months ending on

30.06

(€'000)

2021

2020

Revenue

739,443

523,224

EBITDA

55,828

16,931

a-EBITDA

29,002

27,842

ΕΒΙΤ

44,617

6,286

Profit before Taxes

60,771

(1,010)

This presentation may contain forward-looking statements, which are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the ELVALHALCOR Group. These statements are not historical facts, nor are they, or any of the other content of this presentation, guarantees of future performance and since they involve risks and uncertainties, there are important factors that could cause future actual results of ELVALHALCOR Group to differ materially from those expressed or implied by these forward-looking statements. Further details of potential risks and uncertainties affecting ELVALHALCOR Group are described in the ELVALHALCOR's filings with the Athens Stock Exchange. These forward-looking statements speak only as of the date of this presentation.

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Elvalhalcor Hellenic Copper and Aluminium Industry SA published this content on 15 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 September 2021 16:01:05 UTC.