Viohalco S.A.

Earnings Release • May 23, 2023

REGULATED INFORMATION INSIDE INFORMATION

PRESS RELEASE OF VIOHALCO SA

Βrussels, May 23, 2023

The enclosed information constitutes regulated information as defined in the Royal Decree of 14 November 2007 regarding the duties of issuers of financial instruments which have been admitted for trading on a regulated market.

Viohalco's subsidiary, ElvalHalcor today submits its financial results for the Q1 2023 to the Athens Stock Exchange

Operational profitability and decrease of net debt

• Robust operational profitability (a-EBITDA) at EUR 70.3 million
• Decrease in net debt by EUR 60.2 million year on year (from 31.03.2022)

After the exceptional first half of 2022, characterised by excessive demand in most segments of the economy, the global financial system faced several acute trials. High inflation rates led to consecutive increases in interest rates, with a direct impact on the banking system and an environment of uncertainty for European and global growth, that dampened demand in most product categories.

In this challenging international economic environment, the ElvalHalcor Group remained resilient, as sales volume was slightly decreased by 1.2% compared to Q1'22, remaining, however, significantly higher in comparison to Q1'21. Turnover stood at EUR 930.5 million, slightly increased by 0.8%, compared to EUR 923.6 million in Q1'22.

LME metal prices were lower in the first quarter of 2023 compared to the corresponding period in 2022, trending slightly downward from the beginning of the year. The average price of aluminium reached EUR 2,232/tn in Q1'23, compared to EUR 2,927/tn in Q1'22, dropping by 23.7%. The average price of copper reached EUR 8,322/tn versus EUR 8,924/tn in the respective prior year, falling by 6.7%, while the average price of zinc was EUR 2,915/tn Q1'23 versus EUR 3,299 /tn in Q1'22, dropping by 11.6%.

Consolidated adjusted earnings before taxes, interest, depreciation and amortisation, metal result, and other exceptional items (a-EBITDA), which better reflect the operational profitability of the Group, declined by 5.9%, reaching EUR 70.3 million in Q1'23 versus EUR 74.7 million compared to the respective prior period, mainly affected by the increased conversion costs. It is worth noting that a-EBITDA remained at a much higher level than the respective EUR 41.9 million in Q1'21.

Consolidated gross profit amounted to EUR 64.6 million in Q1'23 vs EUR 109.3 million in Q1'22, while consolidated earnings before interest, taxes, depreciation & amortisation (EBITDA) amounted to EUR 56.1 million compared to EUR 102.1 million in the corresponding prior period. The aforementioned figures were negatively affected by the accounting metal result, which stood at a loss of EUR 14.3 million for the first quarter of 2023 versus profits of EUR 28.3 million for Q1'22.

Consolidated net financial result (cost) amounted to EUR 13.5 million in Q1'23, rising by 57% in comparison to the respective prior period of EUR 8.6 million. This is attributed to the increased interest rates and was partially offset by the decrease in net debt. To counter the rising interest rates, the Group has hedged a portion of its variable rate loans through interest rate swaps and taken out fixed-rate loans.

Net debt decreased by EUR 60.2 million year on year (from the 31st of March 2022) due to the Group's strong operational profitability and the downtrend of metal prices.

Finally, consolidated profits after tax reached EUR 19.7 million in Q1'23 versus EUR 66.9 million in Q1'22. Consolidated profit after tax and non-controlling interest stood at EUR 18.0 million in Q1'23 or (EUR 0.0481 per share), compared to EUR 65.3 million in Q1'22 (or EUR 0.1741 per share).

	Group
Amounts in €' 000	Q1'23	Q1'22	Q1'21
Sales	930,520	923,575	647,323
Gross profit	64,593	109,296	68,717
EBITDA	56,048	102,062	67,061
a-EBITDA	70,290	74,689	41,885
ΕΒΙΤ	37,387	85,640	50,684
a-EBIT	51,628	58,267	25,507
Net financial result	(13,458)	(8,574)	(7,152)
Profit before tax	24,867	78,211	44,490
Profit after tax	19,639	66,897	35,989
Profit after tax & non-controlling interests	18,041	65,345	34,778
Earnings per share €	0.0481	0.1741	0.0927

ElvalHalcor's announcement in English is available on its corporate website www.elvalhalcor.com.

About Viohalco

Viohalco is the Belgium based holding company of leading metal processing companies in Europe. It is listed on Euronext Brussels (VIO) and the Athens Stock Exchange (BIO). Viohalco's subsidiaries specialise in the manufacture of aluminium, copper, cables, steel and steel pipes products, and are committed to the sustainable development of quality, innovative and value-added products and solutions for a dynamic global client base. With production facilities in Greece, Bulgaria, Romania, the United Kingdom and North Macedonia and participations in companies with production facilities in Turkey, Russia and the Netherlands, Viohalco companies generate a consolidated annual revenue of EUR 7 billion (2022). Viohalco's portfolio also includes an R&D&I and technology segment. In addition, Viohalco and its companies own real estate investment properties, mainly in Greece, which generate additional value through their commercial development.

For more information, please visit our website at www.viohalco.com.