Viohalco S A : Financial results for the six months ended 30 June 2021

2021 FIRST HALF YEAR

FINANCIAL RESULTS

REGULATED INFORMATION

INSIDEINFORMATION

FINANCIAL RESULTS FOR THE FIRST HALF YEAR 2021

Brussels, 23 September 2021 - Viohalco S.A. (Euronext Brussels: VIO, Athens Stock Exchange: BIO), hereafter "Viohalco" or "the Company", today announces its financial results for the first half year of 2021.

Strong performance across segments

H1 2021 highlights

Viohalco companies demonstrated strong financial and operational performance during the first half of 2021, as global megatrends drove increased customer demand for products with sustainable characteristics.

• Consolidated revenue increased by 33%, amounting to EUR 2,489 million, versus EUR 1,875 million in H1 2020;
• Consolidated operating profitability (a-EBITDA) increased by 53% and stood at EUR 196 million, versus EUR 128 million in H1 2020;
• Consolidated EBITDA, which includes the effect of metal prices, stood at EUR 253 million, an increase of 135% (H1 2020: EUR 108 million);
• Consolidated profit before tax amounted to EUR 137 million, versus a loss of EUR 7 million in H1 2020;
• High-capacityutilisation levels and strong order backlog;
• Continued investment to optimise operating efficiency.

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Overview

Financial performance improved significantly across all Viohalco segments in the first half of 2021. This reflects not only the adaptability of the companies' diversified business models, but also efforts to capitalise on emerging signs of post-pandemic recovery in their operating markets, the relevance of their product offerings to megatrends relating to a clean circular economy and the transition to climate neutrality, and the increase in the metal prices during the period.

The aluminium segment performed strongly during the period, benefitting from recovery in demand across all operating markets. Investment in new capacity continued, with additional capacity already in place being utilized to meet increased demand for products. Going forward, the segment expects to continue to benefit from favourable trends in demand for aluminium driven by its sustainable characteristics.

The copper segment continued to grow, with a robust demand for almost all copper segment products during the period, and sales volumes increasing significantly year-on-year. Investments to drive product portfolio improvements and profitability continued.

High utilisation of all production lines and the successful execution of several high-profile projects awarded to the cables segment in recent years led to continued growth and a solid performance across the segment. Strong commercial momentum was leveraged, securing a strong order backlog.

During the period, oil prices rebounded, following a significant decline in 2020. This led to the reinstatement of some postponed fossil-fuel distribution projects, positively driving demand. This was partially offset however by the significant increase in steel prices, which drove a recalculation of budget figures for a number of projects and subsequently oil and gas sector investment decisions, creating market turbulence. Despite this, the steel pipes segment performed resiliently during the period, securing uninterrupted production and successfully fulfilling all contractual obligations.

The steel segment recorded significant improvement in all financial figures. Specifically, the segment saw increased sales volumes compared to the previous year, driven by an uplift in demand in the construction sector in the region and the global recovery of the steel industry. Spreads improved across all product lines which, together with the continued execution of cost optimization efforts, resulted in considerably improved profitability during the period.

Noval Property continued its investment programme during the period, despite difficult market conditions, which were compounded by the Covid-19-related rent discounts legislated by the Greek State. Among other projects, the construction of the expansion to the River West shopping centre was substantially completed, while Noval Property was declared the preferred bidder (in joint venture with a real estate fund) to acquire one of the most attractive plots of land in Athens, where a large-scale, environmentally friendly, office complex will be developed.

Financial overview

Condensed consolidated statement of profit or loss

Amounts in EUR thousands	Η1 2021	Η1 2020
Revenue	2,488,607	1,875,389
Gross profit	290,922	152,414
EBITDA	252,872	107,751
a-EBITDA*	196,121	128,469
EBIT	183,314	41,598
a-EBIT*	126,563	62,316
Net finance cost	-45,738	-46,717
Profit before tax	136,725	-7,474
Profit for the period	106,519	-15,257
Profit attributable to owners of the Company	93,320	-17,474

• APM definitions have been slightly changed compared to 30/06/2020. For further details refer to Appendix.
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Viohalco's consolidated revenue for H1 2021 was EUR 2,489 million, up 33% compared to H1 2020 (EUR 1,875 million), illustrating the upturn in demand in almost all segments and the rise in metal prices.

Consolidated a-EBITDA increased by 53% to EUR 196 million for H1 2021 (H1 2020: EUR 128 million).

Net finance cost stood at EUR 45.7 million (H1 2020: EUR 46.7 million).

Viohalco's consolidated profit before income tax for the period amounted to EUR 137 million, compared to a loss of EUR 7 million in H1 2020, mainly attributable to the improved performance of the steel segment, the balanced product mix of the cables segment and the steady growth of the aluminium and copper segments.

Condensed consolidated statement of financial position

Amounts in EUR thousands	30 June 2021	31 December 2020
Fixed & intangible assets	2,340,907	2,302,552
Other non-current assets	71,056	76,376
Non-current assets	2,411,963	2,378,928
Inventory	1,240,216	1,074,589
Trade and other receivables (incl. contract assets)	730,032	515,976
Cash and cash equivalents	267,900	219,161
Other current assets	24,975	10,109
Current assets	2,263,123	1,819,835
Total assets	4,675,086	4,198,763
Equity	1,536,944	1,381,126
Loans and borrowings	978,160	1,001,986
Other non-current liabilities	217,771	230,964
Non-current liabilities	1,195,930	1,232,950
Loans and borrowings	923,778	746,010
Trade and other payables (inc. contract liabilities)	955,183	807,130
Other current liabilities	63,251	31,548
Current liabilities	1,942,212	1,584,687
Total equity and liabilities	4,675,086	4,198,763

Capital expenditure for the period amounted to EUR 108 million (H1 2020: EUR 124 million), mainly attributed to the aluminium segment investment programme that includes the advanced six-high cold rolling mill and the automated lacquering line, the submarine cables production plant of Fulgor in Corinth, and the investments of infrastructure improvement in steel segment.

Working capital increased by 28%, or EUR 215 million, compared to the 31 December 2020, as a result of the increase in metal prices and the increase of sales volumes.

Viohalco companies' net debt increased to EUR 1,684 million (31 December 2020: EUR 1,581 million) before IFRS 16 adjustment, mainly due to the increase of the working capital. After adjusting for IFRS 16, net debt amounted to EUR 1,664 (31 December 2020: EUR 1,560 million).

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Performance by business segment

	Amounts in EUR			Revenue			EBITDA			a-EBITDA			EBIT			EBT
	thousands
	Segments			H1 2021			H1 2020			H1 2021		H1 2020			H1 2021			H1 2020			H1 2021		H1 2020			H1 2021		H1 2020
	Aluminium			762,571			565,857			75,293			39,396			65,965			42,302			45,370		12,351		36,976		4,922
	Copper			753,742			530,673			59,562			17,746			32,362			27,364			51,455		10,478		42,771		1,080
	Cables			351,036			268,160			34,231			32,868			42,102			35,466			26,164		25,585		16,079		14,268
	Steel pipes			104,419			134,923			3,827			7,674			4,782			7,928			-612		3,338		-5,215		-2,074
	Steel			481,711			345,082			71,787			5,516			43,237			11,507			58,727		-10,348		45,969		-23,597
	Real estate			8,878			6,270			3,717			3,754			3,229			3,702			-301		1,264		-1,697		-196
	Other			26,250			24,424			4,455			798			4,443			201			2,510		-1,069		1,841		-1,878
	activities
	Total			2,488,607			1,875,389			252,872			107,751			196,121			128,469			183,314		41,598			136,725		-7,474

Aluminium

Revenue increased by 35% to EUR 763 million (H1 2020: EUR 566 million) for the first half of 2021, and profit

before income tax amounted to EUR 37 million (H1 2020: EUR 5 million).

Following a robust performance in the final quarter of 2020, the aluminium rolling division of ElvalHalcor recorded a strong start to 2021, with demand in most sectors recovering and in some cases surpassing pre- pandemic levels. Recovery in the building and construction, and automotive and transportation industries, which had lagged during the previous year and adversely affected the segment, was particularly strong. This also reflected the rise in metal prices during the period, with the average LME aluminium price at 1,864 EUR/ton, against 1,447EUR/ton in the first semester of 2020.

On March 2, 2021, the Department of Commerce (DoC) calculated a final dumping margin of 0% for imports from ElvalHalcor in its antidumping duty (AD) investigation, enabling ElvalHalcor to continue to conduct its business activities in accordance with fair trade principles in US markets.

The recent investment in hot rolling capacity allows aluminium rolling division of ElvalHalcor to further align its diverse and innovative flat rolled aluminium product portfolio with rising market demand and respond to global megatrends across multinational, high-end markets. The aluminium rolling division of ElvalHalcor responded well to the increased level of market demand by gradually integrating the additional production capacity of the new modern four-stand tandem hot rolling mill, elevating production and sales volumes at historic highs.

Looking ahead, we expect aluminium market demand to remain robust across all sectors and geographies, given the infinitely recyclable nature of aluminium and its role in the ongoing transition towards a climate neutral future. More specifically, in the beverages sector we expect aluminium to outperform competing metals and secure steady growth, driven largely by consumer preferences for convenient and lightweight packaging solutions. The building and construction sector is also expected to remain strong, with coated aluminium products in high demand among manufacturers and architects for use in eco-friendly building envelope solutions. Healthy demand is also anticipated in the transportation market, largely supported by growth in electric vehicles.

Despite the ongoing effects of the Covid-19 pandemic on the global economy, Symetal was able to capitalize on the steady growth and positive prospects of the aluminium foil market, increasing sales by focusing on the lidding, pharmaceutical and foil for flexible packaging markets. The imposition of anti-dumping measures on Chinese producers has further contributed to growth in demand for European foil in both the European and US markets. During the first half of 2021, the new lacquering plant in Mandra commenced operations, with the aim of reducing production costs of lacquered products. Symetal also invested in the expansion of its premises in Mandra by acquiring an adjacent industrial building. In the second half of 2021, Symetal will remain focused on capitalizing on rising demand for flexible packaging foil and completing its investment in a new lacquering machine at its Mandra plant.

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