Quarterly Report • Sep 22, 2022
Quarterly Report
Open in ViewerOpens in native device viewer
| Interim management report2 | |
|---|---|
| Performance review by business segment…………………………………………………………………………………………………… 7 | |
| Outlook…………………………………………………………………………………………………………………………………………………………11 | |
| Financial Calendar…………………………………………………………………………………………………………………………………………11 | |
| About Viohalco 12 | |
| Contacts12 | |
| Management Statement……………………………………………………………………………………………………………………………… 13 | |
| Shareholder Infromation…………………………………………………………………………………………………………………………… 14 | |
| Condensed Consolidated Interim Financial Statements15 | |
| Condensed Consolidated Statement of Financial Position………………………………………………………………………………. 16 | |
| Condensed Consolidated Statement of Profit or Loss………………………………………………………………………………………17 | |
| Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income………………………………18 | |
| Condensed Consolidated Statement of Changes in Equity……………………………………………………………………………….19 | |
| Condensed Consolidated Statement of Cash Flows………………………………………………………………………………………… 20 | |
| Notes to the Condensed Consolidated Interim Financial Statements……………………………………………………………… 21 | |
| Statutory auditor's report on the Condensed consolidated interim financial statements38 | |
| Appendix- Alternative Performance Measures (APMs)39 |
This section focuses on Viohalco's business performance for the period ended 30 June 2022. Interim financial statements, prepared in accordance with IAS 34, are presented on pages 15 to 37.
Viohalco companies delivered a robust financial performance during the first half of 2022, leveraging optimized production capacities and product portfolios and capitalising on strong demand for their products driven by global sustainability megatrends.
In the aluminium segment, the aluminium rolling division demonstrated strong operational performance and efficiency, capitalizing on the additional production capacity resulting from the fourstand tandem hot rolling mill investment and maintained growth in strategic sectors and geographies. The segment's increase in sales volume reflects the positive market conditions in H1 2022, as well as the continuous upward trend in demand for recyclable product solutions.
The copper segment continued to grow, focusing on profitability rather than volume. Investments to drive efficiency, product portfolio improvements and profitability continued. Working capital was exceptionally, but temporarily, high and is scheduled to return to normal levels by the end of the year. The long-term prospects for the segment's products remain positive, due especially to applications related to e-mobility, renewable energy sources, electrification and heat transfer.
Volume growth, coupled with production efficiencies and smooth execution of complex cables projects enabled the cables segment to retain the momentum gained over recent years. Sales covered a wide range of cable types, leading to satisfactory utilisation of all production lines. Improved financial performance was coupled with several new project awards and led to an order backlog of approx. EUR 650 million.
The steel pipes segment witnessed a market turnaround due to geopolitical factors. These led to the restart of many postponed projects and a significant increase in revenue, though the product mix of orders executed negatively affected profitability. The current backlog of orders exceeds EUR 450 million.
The steel segment achieved an increase in sales volumes, due to continued strong performance across core markets and rising sales in low carbon plates, maintaining its dominant market position in Greece, the Balkans and Cyprus. The above was achieved despite the difficult operating environment with significant materials cost increases and supply chain disruption.
Finally, in the real estate segment, Noval Property enhanced its investment portfolio through the acquisition of 18 new assets, in the context of a EUR 21.35 million share capital increase by means of in-kind contribution of properties and shares of two real estate companies.
Condensed consolidated statement of profit or loss
| Amounts in EUR thousands | Η1 2022 | Η1 2021 |
|---|---|---|
| Revenue | 3,596,996 | 2,488,607 |
| Gross profit | 463,120 | 290,922 |
| EBITDA | 411,966 | 252,872 |
| a-EBITDA | 355,257 | 196,121 |
| EBIT | 341,359 | 183,314 |
| a-EBIT | 284,650 | 126,563 |
| Net finance cost | -49,707 | -45,738 |
| Profit before tax | 292,695 | 136,725 |
| Profit for the period | 233,955 | 106,519 |
| Profit attributable to owners | 207,377 | 93,320 |
Viohalco's consolidated revenue for H1 2022 was EUR 3,597 million, up 45% compared to H1 2021 (EUR 2,489 million), reflecting rising demand across all segments, the increase in volumes and metal prices and the impact of the inflationary environment.
Consolidated a-EBITDA amounted to EUR 355 million for H1 2022 (H1 2021: EUR 196 million). Net finance cost increased at EUR 49.7 million for H1 2022 (H1 2021: EUR 45.7 million).
Viohalco's consolidated profit before income tax for the period amounted to EUR 293 million, compared to a profit of EUR 137 million in H1 2021, mainly attributable to the high growth of the aluminium segment, the steady growth of cables segments and the improved performance of the steel segment.
| Amounts in EUR thousands | 30 June 2022 | 31 December 2021 |
|---|---|---|
| Fixed and intangible assets | 2,536,542 | 2,446,354 |
| Other non-current assets | 107,895 | 74,450 |
| Non-current assets | 2,644,437 | 2,520,805 |
| Inventory | 2,006,382 | 1,469,840 |
| Trade and other receivables (incl. contract assets) | 1,083,201 | 724,907 |
| Cash and cash equivalents | 298,470 | 503,267 |
| Other current assets | 74,972 | 19,602 |
| Current assets | 3,463,026 | 2,717,616 |
| Total assets | 6,107,462 | 5,238,420 |
| Equity | 1,930,102 | 1,655,594 |
| Loans and borrowings | 1,188,696 | 1,294,093 |
| Other non-current liabilities | 229,378 | 222,987 |
| Non-current liabilities | 1,418,074 | 1,517,080 |
| Loans and borrowings | 1,264,701 | 848,145 |
| Trade and other payables (incl. contract liabilities) | 1,371,428 | 1,145,287 |
| Other current liabilities | 123,156 | 72,314 |
| Current liabilities | 2,759,286 | 2,065,746 |
| Total equity and liabilities | 6,107,462 | 5,238,420 |
Capital expenditure for the period amounted to EUR 163 million (H1 2021: EUR 108 million), mainly attributable 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 Hellenic Cables in Corinth and the infrastructure improvements in steel segment.
Working capital increased by 67%, or EUR 673 million, compared to 31 December 2021, mainly as a result of the increase in metal prices, the pressure on supply chains due to the war in Ukraine, along with organic growth of the companies.
Viohalco companies' net debt increased to EUR 2,196 million (31 December 2021: EUR 1,684 million) before IFRS 16 adjustment, mainly due to the increase of the working capital. After adjusting for IFRS 16, net debt amounted to EUR 2,175 million (31 December 2021: EUR 1,664 million).
| Amounts in EUR thousands |
Revenue | EBITDA | a-EBITDA | EBIT | EBT | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Segments | H1 2022 | H1 2021 | H1 2022 | H1 2021 | H1 2022 | H1 2021 | H1 2022 | H1 2021 | H1 2022 | H1 2021 |
| Aluminium | 1,200,862 | 762,571 | 174,266 | 75,293 | 129,886 | 65,965 | 145,407 | 45,370 | 133,503 | 36,976 |
| Copper | 978,110 | 753,742 | 54,123 | 59,562 | 46,837 | 32,362 | 45,882 | 51,455 | 37,400 | 42,771 |
| Cables | 426,651 | 351,036 | 45,796 | 34,231 | 47,854 | 42,102 | 36,929 | 26,164 | 25,947 | 16,079 |
| Steel pipes | 190,050 | 104,419 | 3,402 | 3,827 | 3,901 | 4,782 | -1,045 | -612 | -3,560 | -5,215 |
| Steel | 743,854 | 481,711 | 124,623 | 71,787 | 117,153 | 43,237 | 111,158 | 58,727 | 98,900 | 45,969 |
| Real estate* |
13,755 | 8,878 | 4,931 | 3,717 | 4,931 | 3,229 | 249 | -301 | -1,622 | -1,697 |
| Other activities |
43,714 | 26,250 | 4,825 | 4,455 | 4,695 | 4,443 | 2,779 | 2,510 | 2,126 | 1,841 |
| Total | 3,596,996 | 2,488,607 | 411,966 | 252,872 | 355,257 | 196,121 | 341,359 | 183,314 | 292,694 | 136,725 |
* Apart from Noval Property, the real estate segment of Viohalco includes other entities that relate to real estate operations. It should be noted that Viohalco applies the historical cost model in investment property, while certain real estate segment subsidiaries (such as Noval Property) follow the fair value model. Noval Property H1 2022 consolidated earnings before taxes, based on fair value model, amounted to profits of EUR 15.35 million.
In H1 2022, revenue increased by 57% to EUR 1,201 million vs EUR 763 million in H1 2021, while profit before income tax amounted to EUR 134 million (H1 2021: EUR 37 million).
The aluminium rolling division of ElvalHalcor, further strengthened its competitive market position during the first semester of 2022, recording growth in sales volumes and achieving solid financial performance across its strategic market segments. The aluminium segment responded efficiently to cost increases, through the implementation of productivity improvements and increased conversion prices. This growth was attributable to the favourable market landscape coupled with additional production capacity secured through the four-stand tandem hot rolling mill investment at the Oinofyta plant and the lacquering line in the Mandra plant. These operational enhancements resulted in an optimised product mix, mainly aimed at packaging (both rigid and flexible), transportation, building and construction market sectors.
The investment plans, in Elval's Oinofyta plant, for the 6-high cold rolling mill and the automated lacquering line continue to progress. Upon the successful completion of the project, Elval will be able to advance its position further, taking advantage of state-of-the-art equipment and the heightened production capacity to seize strategic growth initiatives and maintain a competitive edge in the aluminium market. In the context of further expansion, a logistics centre adjacent to the Elval's plant was acquired.
At Bridgnorth Aluminium, demand remained strong, and the company was able to increase its sales volumes by 2% compared to first half 2021. The company continued its efforts to develop its product range and increased its deliveries especially in the rigid packaging and building and construction sector, offsetting reduced deliveries to the lithographic sector. The company faced severe metal, energy, freight and labour cost inflation, but succeeded in passing the majority of this through to the customer through the incorporation of specific surcharges in its pricing model. Altogether, this saw profitability increase compared to the previous year.
Etem Gestamp had a strong H1 2022, both in terms of profitability and progress against its investment plan. Main key performance drivers have been included high sales volumes with considerable margins in Q1 2022, along with efficient production and the consistent provision of high-level services to customers. The outbreak of the war in Ukraine has left its mark on Q2 2022 performance with the drop in the demand for both automotive and industrial products. All in all, sales have moved sideways compared to H1 2021, while the investment plan continued uninterrupted.
Etem's effective product portfolio optimization, together with operational improvements, has led to an improved performance in H1 2022 relative to the year prior (H1 2021), despite the lower volumes, due to the focus on the architectural profiles and systems and the custom-tailored industrial profiles.
Going forward, the aluminium segment will continue to address macroeconomic challenges, adapting operations to mitigate potential supply chain issues and rising cost pressures. Underpinned by a resilient business model, the focus remains on a customer-centric approach mindset and in parallel with an extensive commercial reach across multinational, high-end markets.
The copper segment continued to grow in the first half of 2022. Revenue stood at EUR 978 million versus EUR 754 million in the respective prior-year period, driven by the increase in sales volumes and the upward trend in the price of copper, while profit before income tax amounted to EUR 37 million (H1 2021: EUR 43 million).
The segment improved on the strong performance of the previous year, with demand remaining very high in most end markets. Copper tubes sales volumes rose by over 6%, curtailed by capacity constraints. Flatrolled products sales dropped by 4%, as Sofia Med opted to switch the mix to higher value-added products, with higher profitability and long-term prospects. In addition, robust demand supported double-digit increases in sales volumes of all extruded products. Following a strong recovery in 2021, enamelled wires sales dropped significantly in H1 2022, as the competitive landscape was such that Cablel Wires was unable to pass on all cost increases to customers. In all the other main product categories, thanks to a strong demand and a lack of supply, the copper segment managed to increase prices over the rapidly rising cost elements, thus improving profitability.
Inventory levels for the copper segment were at extraordinarily high levels, due to a scheduled shut-down and maintenance of the extrusion press of the Halcor tubes mill. Due to unforeseen circumstances, the shutdown was postponed from August to October, however working capital is scheduled to return to normality by the end of the year.
Market conditions in H2 2022 are expected to deteriorate, as inflationary pressures and rising interest rates create uncertainty and affect growth in most markets. As the above will impact most competitors, no pressure on prices is expected, and the significant order book in certain segments is expected to support volumes under normal circumstances. The expected upgrade of the extrusion press will affect future growth and efficiency of the tubes mill, and long-term demand trends for the segment's products remain positive. Finally, targeted investments in higher value-added products and improvements in productivity, as a result of the learning curve, are expected to release capacity in flat-rolled products and lead to increased sales and profitability.
In the cables segment, high utilisation of all production lines and the smooth execution of high-profile submarine projects led to further growth and solid performance. Revenue stood at EUR 427 million versus EUR 351 million in the respective prior-year period, driven by increased volumes sold and prices, while profit before income tax amounted to EUR 26 million (H1 2021: EUR 16 million).
The segment succeeded in matching the demand increase in both power and telecom cables within all its main geographical regions, (i.e. Central Europe, the Balkans and Southeast Mediterranean countries), while all plants had a full production schedule throughout the period. In addition, the projects business continued to support the segment's profitability, through the efficient execution of orders awarded over recent years. Tendering efforts were intensified during H1 2022, as high market activity in both offshore wind and interconnections continued unabated.
Specifically, during H1 2022, the following projects were successfully executed either partially or in full:
▪ The production of the 83 km-long submarine cable for the electrical interconnection between Naxos, Santorini and Thirasia islands was concluded. Installation is expected to be completed according to schedule by the end of 2022;
During the period, Hellenic Cables secured several awards for high voltage and inter-array cables projects driving the order backlog for the segment to approx. EUR 650 million as of 30 June 2022.
The cables segment is expected to maintain its performance momentum and benefit from the strong demand for cable products, along with a set of secured orders for projects. Going forward, the acceleration of energy transition plans driven by the current energy crisis, are expected to further fuel the segment's order book.
Provided that such awards occur in the coming months, management is currently assessing the initiation of an investment programme to expand the production capacity of the offshore business unit in Corinth by investing in additional production equipment. At the same time, other growth opportunities created by current market trends are being explored. In this context and following previous announcements, discussions with Ørsted on the partnership for the construction of a submarine inter-array cables factory in the State of Maryland, USA are ongoing .
During H1 2022, the steel pipes segment recorded its highest revenue since H1 2019, with H1 2022 revenue amounting to EUR 190 million, up 82% year-on-year. This growth was driven primarily by higher sales volumes which grew by 43% compared to the first half of last year. However, market conditions and steel prices remain highly volatile, and many energy projects continue to be postponed or abandoned, especially in the USA. As a result, earnings before income tax amounted to losses of EUR 3.6 million (H1 2021: EUR losses of 5.2 million) due to an unfavourable sales mix.
Recent awards include a 201km desalinated water pipeline for a copper mine in Chile by Collahuasi, a hydrogen certified pipeline in Australia by Jemena, a 163 km pipeline in West Macedonia, Greece by DESFA, certified to transport up to 100% of hydrogen, a 76 km gas pipeline in Mozambique awarded by SASOL, along with other major offshore projects in South America and Australia. At the end of H1 2022, Corinth Pipeworks finds itself in a stronger position with a current order backlog exceeding EUR 450 million, the highest level since 2018. This follows intense commercial efforts leading to the award of numerous significant projects around the world.
As demand for energy recovers causing consequential price increases, available tender opportunities for Corinth Pipeworks have steadily risen. In addition to the orders already secured, a more favourable sales mix is expected towards the end of the year.
The steel pipes segment is looking forward to a good remainder of the year, as the solid order backlog built during the last months allows for the combination of high-capacity utilization and robust profit margins throughout the rest of the year.
Revenue in the steel segment amounted to EUR 744 million in H1 2022 versus EUR 482 million in H1 2021. Profit before income tax amounted to EUR 99 million (2021: EUR 46 million).
In H1 2022 the segment demonstrated strong performance across core markets through increased sales volumes in most product lines compared to H1 2021, despite significant fluctuations in steel products prices internationally, following the breakout of the Russia Ukraine war. High costs of construction materials, supply shortages in critical materials and components (ex. automotive), high logistics costs, supply chain disruption and price volatility were some of the dominant market developments in H1 2022. These led to a slowdown in demand across all product lines and geographical regions, which started in April and intensified during May and June. With regards to price volatility, the increase in imports from countries outside of Europe to replace supply from Russia and Ukraine (billets, slabs and other products), has led to price pressure across all product lines.
In reinforcement steel, the segment increased sales in Greece and Bulgaria, consolidating its already strong market position in the Balkans and Cyprus. Sales of wire rod saw an increase in Western Europe and Benelux, while sales of heavy plates and special bar quality steels also saw sales increases in Romania and Central Europe. A rise in sales of low carbon plates occurred mostly in Baltic countries and Finland, while merchant bars sales came out higher compared to H1 2021 driven by increased deliveries to the Central European countries.
During H1 2022, several steel segment companies, initiated projects targeting energy efficiency and process improvements. Dojran Steel plant installed photovoltaic panels of 4MWp installed capacity which will allow the company to offer products with a lower carbon footprint.
The outlook for H2 2022 remains uncertain due to expectations for weak demand, high production costs and eventual energy shortages in the European manufacturing sector. Delays in construction projects are expected, as result of the increased construction materials costs and the higher cost of financing. Recovery of the Greek steel market is expected after almost 10 years of stagnation, following the launch of several major private projects in conjunction with substantial public expenditure.
Revenue for the real estate segment (which includes other entities as well apart from Noval Property) amounted to EUR 14 million in H1 2022 (H1 2021: EUR 8.9 million), and the loss before income tax amounted to EUR 1.6 million, compared to the loss of 1.7 million in H1 2021.
It should be noted that Viohalco applies the historical cost model in investment property, while certain real estate segment subsidiaries (such as Noval Property) follow the fair value model. Noval Property H1 2022 consolidated profit before tax, based on the fair value model, amounted to EUR 15.35 million.
Noval Property recorded a 9.6% increase in the fair value of its investment portfolio from EUR 424 million at 31.12.2021 to EUR 465 million at 30.06.2022. This was achieved through the acquisition of new assets, the active management of existing properties and the positive trend for high-quality and sustainable buildings in Greece.
Noval Property proceeded in a share capital increase of EUR 21.35 million through the in-kind contribution of properties and 100% of the shares of two real estate companies, resulting in 18 new assets being added to the company's investment portfolio.
At the same time and following the successful issue of a EUR 120 million Green Bond (listed on Athens Stock Exchange) in December 2021, Noval Property continued the development of its existing portfolio, including the commencement of construction works on several properties.
Finally, active asset management led not only to additional leases (for example in relation to the River West shopping centre expansion), but also to the replacement of existing lease agreements with new at more favourable rental terms reflecting the increased demand for high-quality, bioclimatic and environmentally sustainable buildings.
Looking ahead to the remainder of 2022, Noval Property aims to acquire additional assets, while at the same time progressing further the planned development of its existing asset portfolio.
In the current macroeconomic environment driven by volatility, increasing energy prices, inflation and fluctuating cost of materials, and disruption in the supply chain, the outlook for the second half of 2022 remains challenging.
Against this backdrop, the successful positioning of the companies in their respective markets and the production capacities following the recent investment programmes, the considerable order backlog, the strong pipeline of projects secured, along with the continuous efforts to maintain high levels of efficiency, are factors that will help mitigate potential negative impacts arising from these trends.
Viohalco companies will continue to optimize their production capacities and product portfolios through targeted investments. Finally, the companies remain well positioned to grow their share in the markets of sustainable products with a low carbon footprint, which represent a significant and increasing share of their offering.
| Date | Event |
|---|---|
| 9 March 2023 | Financial Results 2022 press release |
| 30 May 2023 | Ordinary General Meeting 2023 |
| 21 September 2023 | Financial results first half-year 2023 |
The Annual Financial Report for the period 1 January 2022 – 31 December 2022 will be published on 6 April 2023 and will be posted on the Company's website, www.viohalco.com, on the Euronext Brussels Exchange website www.euronext.com, as well as on the Athens Stock Exchange website www.athexgroup.gr.
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 5.37 billion (2021). 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
Forfurtherinformation, please contact: Sofia Zairi Chief Investor Relations Officer T +30 210 6861111, 6787773
E ir@viohalco,com
Evangelos Moustakas, Ippokratis Ioannis Stassinopoulos, Efstratios Thomadakis, Panteleimon Mavrakis, members of the Executive Management, certify, on behalf and for the account of the Company, that to their knowledge:
a) the condensed consolidated interim financial statements which have been prepared in accordance with IAS 34, "Interim Financial Reporting "as adopted by the European Union, give a true and fair view of the Equity, Financial position and Financial Performance of the Company, and its subsidiaries and associates;
b) the interim management report includes a fair overview of the information required under Article 13, §§ 5 and 6 of the Royal Decree of November 14, 2007 on the obligations of issuers of financial instruments admitted to trading on a regulated market.
Viohalco's share capital is set at EUR 141,893,811.46 divided into 259,189,761 shares without nominal value. The shares have been issued in registered and dematerialised form. All the shares are freely transferable and fully paid up. The Company has not issued any other category of shares, such as nonvoting or preferential shares. All the shares representing the share capital have the same rights. In accordance with the articles of association of the company, each share entitles its holder to one vote.
Viohalco's shares are listed under the symbol "VIO" with ISIN code BE0974271034 on the regulated market of Euronext Brussels and on the main market of the Athens Exchange with the same ISIN code and with the symbol VIO (in Latin characters) and BIO (in Greek characters).
Condensed Consolidated Interim Financial Statements
| Amounts in EUR thousands | Note | 30 June 2022 | 31 December 2021 |
|---|---|---|---|
| ASSETS | |||
| Property, plant and equipment | 12 | 2,143,440 | 2,089,107 |
| Right of use assets | 33,892 | 34,288 | |
| Intangible assets and goodwill | 12 | 40,439 | 42,083 |
| Investment property | 13 | 318,771 | 280,876 |
| Equity - accounted investees | 10 | 51,582 | 44,372 |
| Other investments | 17 | 7,855 | 8,457 |
| Deferred tax assets | 10,632 | 13,141 | |
| Derivatives | 17 | 30,598 | 944 |
| Trade and other receivables | 11 | 7,005 | 7,314 |
| Contract costs | 222 | 222 | |
| Non-current assets | 2,644,437 | 2,520,805 | |
| Inventories Trade and other receivables |
14 11 |
2,006,382 865,825 |
1,469,840 623,536 |
| Contract assets | 11 | 217,376 | 101,371 |
| Contract costs | 144 | 167 | |
| Derivatives | 17 | 71,960 | 16,277 |
| Assets held for sale | 368 | 372 | |
| Current tax assets | 2,500 | 2,785 | |
| Cash and cash equivalents | 298,470 | 503,267 | |
| Current assets | 3,463,026 | 2,717,616 | |
| Total assets | 6,107,462 | 5,238,420 | |
| EQUITY | |||
| Share capital | 141,894 | 141,894 | |
| Share premium | 457,571 | 457,571 | |
| Translation reserve | -22,354 | -24,450 | |
| Other reserves | 474,892 | 440,437 | |
| Retained earnings | 606,913 | 399,175 | |
| Equity attributable to owners of the Company | 1,658,916 | 1,414,626 | |
| Non-controlling interests | 15 | 271,187 | 240,969 |
| Total equity | 1,930,102 | 1,655,594 | |
| LIABILITIES | |||
| Loans and borrowings | 16 | 1,188,696 | 1,294,093 |
| Lease liabilities | 16 | 30,117 | 34,639 |
| Derivatives | 17 | 736 | 3,587 |
| Employee benefits | 25,168 | 24,183 | |
| Grants | 32,925 | 33,985 | |
| Provisions | 1,511 | 1,825 | |
| Trade and other payables | 14,055 | 17,615 | |
| Contract liabilities | 9,899 | 9,889 | |
| Deferred tax liabilities | 114,967 | 97,263 | |
| Non-current liabilities | 1,418,074 | 1,517,080 | |
| Loans and borrowings | 16 | 1,264,701 | 848,145 |
| Lease liabilities | 16 | 10,598 | 10,696 |
| Trade and other payables | 1,304,601 | 1,093,804 | |
| Contract liabilities | 66,828 | 51,482 | |
| Current tax liabilities | 80,650 | 40,035 | |
| Derivatives | 17 | 15,750 | 7,563 |
| Provisions | 16,158 | 14,020 | |
| Current liabilities | 2,759,286 | 2,065,746 | |
| Total liabilities | 4,177,360 | 3,582,826 | |
| Total equity and liabilities | 6,107,462 | 5,238,420 |
| Amounts in EUR thousands | Note | For the six months ended 30 June 2022 |
2021 |
|---|---|---|---|
| Revenue | 6 | 3,596,996 | 2,488,607 |
| Cost of sales | -3,133,876 | -2,197,686 | |
| Gross profit | 463,120 | 290,922 | |
| Other income | 7 | 7,644 | 6,865 |
| Selling and distribution expenses | -42,398 | -38,180 | |
| Administrative expenses | -76,310 | -69,720 | |
| Impairment loss on trade and other receivables and contract assets | -1,482 | -562 | |
| Other expenses | 7 | -9,214 | -6,010 |
| Operating result | 341,359 | 183,314 | |
| Finance income | 8 | 6,806 | 1,308 |
| Finance cost | 8 | -56,513 | -47,046 |
| Net finance income/cost (-) | -49,707 | -45,738 | |
| Share of profit/loss (-) of equity-accounted investees | 10 | 1,042 | -851 |
| Profit/Loss (-) before income tax | 292,695 | 136,725 | |
| Income tax expense (-) | 9 | -58,739 | -30,206 |
| Profit/Loss (-) | 233,955 | 106,519 | |
| Profit/Loss (-) attributable to: | |||
| Owners of the Company | 207,377 | 93,320 | |
| Non-controlling interests | 26,578 | 13,199 | |
| 233,955 | 106,519 | ||
| Earnings per share (in Euro per share) | |||
| Basic and diluted | 0.799 | 0.360 |
| For the six months ended 30 June | ||
|---|---|---|
| Amounts in EUR thousands | 2022 | 2021 |
| Profit/Loss (-) | 233,955 | 106,519 |
| Items that will never be reclassified to profit or loss: | ||
| Equity investments in FVOCI - net change in fair value | -832 | 529 |
| Remeasurements of defined benefit liability | -11 | - |
| Related tax | 2 | -41 |
| Total | -840 | 487 |
| Items that are or may be reclassified to profit or loss: | ||
| Foreign currency translation differences | 4,218 | 5,649 |
| Changes in fair value of cash flow hedges –effective portion | 76,190 | 10,464 |
| Changes in fair value of cash flow hedges - reclassified to profit or loss | -891 | 2,264 |
| Related tax | -16,827 | -3,031 |
| Total | 62,690 | 15,347 |
| Total other comprehensive income / expense (-) after tax | 61,850 | 15,834 |
| Total comprehensive income / expense (-) after tax | 295,805 | 122,353 |
| Total comprehensive income attributable to: | ||
| Owners of the Company | 259,121 | 106,426 |
| Non-controlling interests | 36,684 | 15,927 |
| Total comprehensive income / expense (-) after tax | 295,805 | 122,353 |
| Share | Share | Other | Translation | Retained | Non controlling |
Total | |||
|---|---|---|---|---|---|---|---|---|---|
| Amounts in EUR thousands | Note | capital | premium | reserves | reserve | earnings | Total | interests | equity |
| Balance as at 1 January 2022 | 141,894 | 457,571 | 440,437 | -24,450 | 399,175 | 1,414,626 | 240,969 | 1,655,594 | |
| Total comprehensive income | |||||||||
| Profit/loss (-) | - | - | - | - | 207,377 | 207,377 | 26,578 | 233,955 | |
| Other comprehensive income | 48,850 | 2,901 | -7 | 51,744 | 10,106 | 61,850 | |||
| Total comprehensive income | - | - | 48,850 | 2,901 | 207,370 | 259,121 | 36,684 | 295,805 | |
| Transactions with owners of | |||||||||
| the Company | |||||||||
| Capitalization of reserves | - | - | -14,566 | 71 | 14,495 | - | - | - | |
| Share capital increase of | - | - | - | - | - | - | 24,626 | 24,626 | |
| subsidiary | |||||||||
| Dividends | - | - | - | - | -23,327 | -23,327 | -3,024 | -26,351 | |
| Total | - | - | -14,566 | 71 | -8,832 | -23,327 | 21,602 | -1,725 | |
| Changes in ownership | |||||||||
| interests: | |||||||||
| Acquisition of NCI | 15 | - | - | 173 | -907 | 11,767 | 11,032 | -30,604 | -19,572 |
| Other changes in ownership | - | - | -2 | 32 | -2,567 | -2,537 | 2,537 | - | |
| interests | |||||||||
| Balance as at 30 June 2022 | 141,894 | 457,571 | 474,892 | -22,354 | 606,913 | 1,658,916 | 271,187 | 1,930,102 | |
| Non | |||||||||
| Share | Share | Other | Translation | Retained | controlling | Total | |||
| Amounts in EUR thousands | Note | capital | premium | reserves | reserve | earnings | Total | interests | equity |
| Balance as at 1 January 2021 | 141,894 | 457,571 | 436,104 | -30,341 | 201,467 | 1,206,694 | 174,431 | 1,381,126 | |
| Total comprehensive income | |||||||||
| Profit/loss (-) | - | - | - | - | 93,320 | 93,320 | 13,199 | 106,519 | |
| Other comprehensive income | - | - | 8,868 | 5,573 | -1,335 | 13,106 | 2,728 | 15,834 | |
| Total comprehensive income | - | - | 8,868 | 5,573 | 91,985 | 106,426 | 15,927 | 122,353 | |
| Transactions with owners of | |||||||||
| the Company | |||||||||
| Capitalization of reserves | - | - | 1,930 | - | -1,930 | - | - | - | |
| Dividends | - | - | - | -7,776 | -7,776 | -2,517 | -10,293 | ||
| Total | - | - | 1,930 | - | -9,706 | -7,776 | -2,517 | -10,293 | |
| Changes in ownership | |||||||||
| interests: | |||||||||
| Acquisition of NCI | - | - | 273 | - | -2,906 | -2,634 | -2,366 | -5,000 | |
| Other changes in ownership | |||||||||
| interests | - | - | -42 | 64 | 6,213 | 6,236 | 42,522 | 48,758 |
| For the six months ended 30 June | |||
|---|---|---|---|
| Amounts in EUR thousands | Note | 2022 | 2021 |
| Profit / loss (-) | 233,955 | 106,519 | |
| Adjustments for: | |||
| Income tax expense / credit (-) | 9 | 58,739 | 30,206 |
| Depreciation of PP&E | 61,193 | 60,408 | |
| Depreciation of right of use assets | 4,106 | 4,168 | |
| Depreciation of intangible assets | 3,288 | 3,379 | |
| Depreciation of investment property | 3,904 | 3,116 | |
| Impairment / Reversal of Impairment (-) and write off of PP&E | 991 | 1,205 | |
| Profit (-) / loss from sale of PP&E and intangible assets | -87 | 489 | |
| Profit (-) / loss from sale of investment property | -340 | -476 | |
| Profit(-) / loss from derivatives valuation | -2,685 | -443 | |
| Gain (-) /loss from business combinations | 1,343 | - | |
| Amortization of grants | -1,885 | -1,513 | |
| Finance cost | 8 | 56,513 | 47,046 |
| Finance income | 8 | -6,806 | -1,308 |
| Impairment loss on trade and other receivables, including contract assets | 1,482 | 562 | |
| Share of profit of equity accounted investees | 10 | -1,042 | 851 |
| Changes | 412,669 | 254,209 | |
| Decrease / increase (-) in inventories | -536,543 | -165,627 | |
| Decrease / increase (-) in receivables | 11 | -247,821 | -203,757 |
| Decrease / increase (-) in contract assets | 11 | -116,006 | -9,327 |
| Decrease / increase (-) in contract costs | 23 | 189 | |
| Decrease (-) / increase in liabilities | 195,159 | 135,811 | |
| Decrease (-) / increase in employee benefits liability | 985 | 958 | |
| Decrease (-) / increase in provisions | 611 | -66 | |
| Decrease (-) / increase in contract liabilities | 15,356 | 5,962 | |
| -688,235 | -235,858 | ||
| Cash generated from operating activities | -275,566 | 18,350 | |
| Interest charges and related expenses paid | -51,687 | -44,123 | |
| Income tax paid | -4,256 | -2,351 | |
| Net cash flows from operating activities | -331,509 | -28,123 | |
| Cash flows from investing activities | |||
| Acquisition of PP&E and intangible assets | 12 | -120,345 | -95,915 |
| Acquisition of investment property | 13 | -21,517 | -10,109 |
| Proceeds from sale of PP&E and intangible assets | 1,136 | 2,721 | |
| Proceeds from sales of investment property | 1,100 | 1,229 | |
| Acquisition/ share capital increase of associates & joint ventures | 10 | -3,250 | -225 |
| Share of NCI in subsidiaries' share capital increase/ decrease (-) | -301 | - | |
| Acquisition of other investments | -230 | -33 | |
| Proceeds from sales of subsidiaries and associates | 2,300 | - | |
| Proceeds from sale of other investments | - | 198 | |
| Interest received | 215 | 263 | |
| Dividends received | 262 | 81 | |
| Cash acquired from business combination Net cash flows from investing activities |
84 -140,546 |
- -101,790 |
|
| Cash flows from financing activities | |||
| Proceeds from borrowings | 16 | 428,296 | 243,613 |
| Repayment of borrowings | 16 | -120,777 | -95,105 |
| Principal elements of lease payments | 16 | -5,549 | -5,232 |
| Proceeds from collection of grants | 105 | 88 | |
| Proceeds from sales shares of subsidiaries | - | 50,000 | |
| Acquisition of NCI | 15 | -9,228 | -5,000 |
| Dividends paid to shareholders | -23,327 | - | |
| Dividends paid to non-controlling interest | -2,417 | -9,138 | |
| Net cash flows from financing activities | 267,103 | 179,225 | |
| Net decrease (-)/ increase in cash and cash equivalents | -204,952 | 49,313 | |
| Cash and cash equivalents at beginning of period | 503,267 | 219,161 | |
| Foreign exchange effect on cash and cash equivalents | 155 | -574 | |
| Cash and cash equivalents at the end of period | 298,470 | 267,900 |
The notes on pages 21 to 37 are an integral part of these Condensed Consolidated Interim Financial Statements.
Viohalco S.A. (hereafter referred to as "the Company" or "Viohalco S.A.") is a Belgian Limited Liability Company. The Company's registered office is located at 30 Avenue Marnix, 1000 Brussels, Belgium. The Company's Condensed Consolidated Interim Financial Statements include those of the Company and its subsidiaries (together referred to as"Viohalco"), and Viohalco's interest in associates accounted for using the equity method.
Viohalco S.A. is the holding company and holds participations in approximately 100 subsidiaries, two of which are listed, one on Euronext Brussels and the other on Athens Exchange. With production facilities in Greece, Bulgaria, Romania, North Macedonia and United Kingdom, Viohalco subsidiaries specialise in the manufacture of steel, copper and aluminium products. In addition, Viohalco owns substantial real estate properties in Greece and redeveloped some of its properties as real estate development projects. Its shares are traded on Euronext Brussels and has since February 2014 its secondary listing on the Athens Stock exchange (trading ticker "VIO").
These interim financial statements were authorised for issue by the Company's Board of Directors on 22 September 2022.
The Company's electronic address is www.viohalco.com, where the Condensed Consolidated Interim Financial Statements have been posted.
These Condensed Consolidated Interim Financial Statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union. They do not include all information and disclosures required for the annual Consolidated Financial Statements and should be read in conjuction with the annual Consolidated Financial Statements for the year ended 31 December 2021, which can be found on Viohalco's website. However, selected explanatory notes are included to explain events and transactions that are significant to the understanding of the changes in Viohalco's financial position and performance since the last annual Consolidated Financial Statements as at and for the year ended 31 December 2021.
The functional and presentation currency of the parent Company is Euro. All amounts in the Condensed Consolidated Interim Financial Statements are rounded to the nearest thousand, unless otherwise indicated. As such, due to rounding, figures shown as totals in certain tables may not be arithmetic aggregations of the figures that precede them.
Preparing Financial Statements in line with IFRS requires that Management takes decisions, makes assessments and assumptions and determines estimates which affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
The significant judgements made by Management in applying accounting policies and the key sources of estimation uncertainty were the same as those that applied to the Consolidated Financial Statements for the year ended 31 December 2021.
Except as described below, the accounting policies applied in these interim financial statements are the same as those applied in Viohalco' consolidated financial statements as at and for the year ended 31 December 2021.
Certain new standards, amendments to standards and interpretations have been issued that are mandatory for periods beginning on or after 1 January 2022 and have been applied in preparing these consolidated financial statements. None of these had a significant effect on the consolidated financial statements.
IFRS 16 (Amendment) 'Covid-19-Related Rent Concessions'. The amendment extends the application period of the practical expedient in relation to rent concessions by one year to cover rental concessions that reduce leases due only on or before 30 June 2022.
IAS 16 (Amendment) 'Property, Plant and Equipment – Proceeds before Intended Use. The amendment prohibits an entity from deducting from the cost of an item of PP&E any proceeds received from selling items produced while the entity is preparing the asset for its intended use. It also requires entities to separately disclose the amounts of proceeds and costs relating to such items produced that are not an output of the entity's ordinary activities.
IAS 37 (Amendment) 'Onerous Contracts – Cost of Fulfilling a Contract'. The amendment clarifies that 'costs to fulfil a contract' comprise the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts. The amendment also clarifies that, before a separate provision for an onerous contract is established, an entity recognises any impairment loss that has occurred on assets used in fulfilling the contract, rather than on assets dedicated to that contract.
IFRS 3 (Amendment) 'Reference to the Conceptual Framework'. The amendment updated the standard to refer to the 2018 Conceptual Framework for Financial Reporting, in order to determine what constitutes an asset or a liability in a business combination. In addition, an exception was added for some types of liabilities and contingent liabilities acquired in a business combination. Finally, it is clarified that the acquirer should not recognise contingent assets, as defined in IAS 37, at the acquisition date.
The amendment addresses which fees should be included in the 10% test for derecognition of financial liabilities. Costs or fees could be paid to either third parties or the lender. Under the amendment, costs or fees paid to third parties will not be included in the 10% test.
The amendment removed the illustration of payments from the lessor relating to leasehold improvements in Illustrative Example 13 of the standard in order to remove any potential confusion about the treatment of lease incentives.
IFRS 17 'Insurance contracts' and Amendments to IFRS 17 (effective for annual periods beginning on or after 1 January 2023). IFRS 17 has been issued in May 2017 and, along with the Amendments to IFRS 17 issued in June 2020, supersedes IFRS 4. IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of the Standard and its objective is to ensure that an entity provides relevant information that faithfully represents those contracts. The new standard solves the comparison problems created by IFRS 4 by requiring all insurance contracts to be accounted for in a consistent manner. Insurance obligations will be accounted for using current values instead of historical cost.
IAS 1 (Amendment) 'Classification of liabilities as current or non-current' (effective for annual periods beginning on or after 1 January 2023). The amendment clarifies that liabilities are classified as either current or non-current depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date. The amendment also clarifies what IAS 1 means when it refers to the 'settlement' of a liability. The amendment has not yet been endorsed by the EU.
IAS 1 (Amendments) 'Presentation of Financial Statements' and IFRS Practice Statement 2 'Disclosure of Accounting policies' (effective for annual periods beginning on or after 1 January 2023). The amendments require companies to disclose their material accounting policy information and provide guidance on how to apply the concept of materiality to accounting policy disclosures.
IAS 8 (Amendments) 'Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates' (effective for annual periods beginning on or after 1 January 2023). The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates.
IΑS 12 (Amendments) 'Deferred tax related to Assets and Liabilities arising from a Single Transaction' (effective for annual periods beginning on or after 1 January 2023). The amendments require companies to recognise deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. This will typically apply to transactions such as leases for the lessee and decommissioning obligations. The amendments have not yet been endorsed by the EU.
IFRS 17 (Amendment) 'Initial Application of IFRS 17 and IFRS 9 – Comparative Information' (effective for annual periods beginning on or after 1 January 2023). The amendment is a transition option relating to comparative information about financial assets presented on initial application of IFRS 17. The amendment is aimed at helping entities to avoid temporary accounting mismatches between financial assets and insurance contract liabilities, and therefore improve the usefulness of comparative information for users of financial statements. The amendment has not yet been endorsed by the EU.
There were no changes in Viohalco subsidiaries business and operational risk management objectives and policies during the first half of 2022.
Viohalco companies follow continuously both international and domestic developments and timely adapt their business strategy and risk management policies in order to minimize the operational impact of macroeconomic conditions.
The Ukraine conflict, which began in February 2022, in addition to the human toll, is increasingly affecting economic and global financial markets and exacerbating ongoing economic challenges, including issues such as rising inflation, global supply-chain disruption and energy crisis.
The direct exposure to Ukraine and Russia is very limited and business consequences were not material so far, while the same is expected for the foreseeable future. Sales to these markets represent an insignificant portion of total turnover and any loss in revenue can be fully offset by demand in other markets. In terms of financing, Viohalco companies have no exposure to Russian banks.
Regarding the impact in energy prices, Viohalco companies have already taken mitigating actions to reduce any business impact related to energy cost, while they are monitoring the situation closely in order to secure efficiency their operations.
Considering the uptrend pressures on interest rates observed during the first semester of 2022 and in order to offset potential increased finance costs in the future, Viohalco companies entered in interest rate swaps contracts for variable rate loans.
Variable rate loans expose Viohalco companies to a rate risk (cash flow risk). In order to hedge it, companies use interest rate swaps that transform the variable interest rate into a fixed one, thus reducing interest rate risk. Interest rate swap contracts involve exchanging, on specified dates, the difference between a contracted fixed interest rate and the variable rate underlying a company loan, calculated on the loan's principal, and thus, effectively, transform a floating rate loan into a fixed rate one.
During H1 2022, aluminium, copper, cables and steel pipes segments purchased interest rate swaps on a notional value of EUR 274 million and initial terms of 7 years, aiming to counterbalance potential higher future interest costs on their loans. The accumulated amount of effectively fixed rate debt as of 30 June 2022 was EUR 704 million, including all fixed rate bond loans, both listed and non listed and all interest rate swaps.
| Amounts in EUR thousands | Aluminum | Copper | Cables | Steel pipes |
Steel | Real estate |
Other activitiess |
Total |
|---|---|---|---|---|---|---|---|---|
| Total revenue per segment | 1,837,382 | 1,377,036 | 883,921 | 269,571 | 1,329,272 | 18,355 | 158,260 | 5,873,797 |
| Inter-segment revenue | -636,520 | -398,926 | -457,271 | -79,520 | -585,418 | -4,601 | -114,546 | -2,276,801 |
| Revenue from external customers |
1,200,862 | 978,110 | 426,651 | 190,050 | 743,854 | 13,755 | 43,714 | 3,596,996 |
| Gross profit | 182,834 | 70,970 | 52,240 | 5,452 | 138,490 | 3,466 | 9,668 | 463,120 |
| Operating result | 145,407 | 45,882 | 36,929 | -1,045 | 111,158 | 249 | 2,779 | 341,359 |
| Finance income | 2,887 | 246 | 713 | 8 | 308 | 2,205 | 438 | 6,806 |
| Finance cost | -15,461 | -8,093 | -11,695 | -3,718 | -12,693 | -3,762 | -1,091 | -56,513 |
| Share of profit/ loss (-) of equity-accounted investees |
669 | -635 | - | 1,194 | 128 | -314 | - | 1,042 |
| Profit/Loss (-) before income tax expense |
133,503 | 37,400 | 25,948 | -3,560 | 98,900 | -1,622 | 2,126 | 292,695 |
| Income tax expense | -29,942 | -5,232 | -5,594 | 2,602 | -18,182 | -417 | -1,975 | -58,739 |
| Profit/Loss (-) | 103,561 | 32,168 | 20,354 | -958 | 80,718 | -2,038 | 151 | 233,955 |
| Amounts in EUR thousands | Aluminium | Copper | Cables | Steel pipes |
Steel | Real estate |
Other activities |
Total |
|---|---|---|---|---|---|---|---|---|
| Equity-accounted investees | 9,020 | 14,668 | - | 21,235 | 1,292 | 5,367 | - | 51,582 |
| Other assets | 1,944,894 | 931,475 | 887,566 | 456,395 | 1,122,145 | 557,363 | 156,041 | 6,055,880 |
| Total assets | 1,953,914 | 946,144 | 887,566 | 477,630 | 1,123,437 | 562,730 | 156,041 | 6,107,462 |
| Liabilities | 1,227,316 | 660,747 | 750,417 | 354,038 | 836,956 | 247,119 | 100,767 | 4,177,360 |
| Capital expenditure | 96,121 | 5,518 | 23,464 | 1,788 | 10,393 | 24,577 | 1,017 | 162,879 |
| Depreciation and amortisation |
-29,554 | -8,802 | -9,192 | -4,533 | -13,662 | -4,682 | -2,067 | -72,492 |
| Steel | Real | Other | ||||||
|---|---|---|---|---|---|---|---|---|
| Amounts in EUR thousands | Aluminium | Copper | Cables | pipes | Steel | estate | activities | Total |
| Total revenue per segment | 1,173,555 | 1,067,942 | 730,476 | 121,667 | 807,083 | 13,770 | 111,415 | 4,025,908 |
| Inter-segment revenue | -410,984 | -314,200 | -379,440 | -17,248 | -325,372 | -4,892 | -85,165 | -1,537,300 |
| Revenue from external customers |
762,571 | 753,742 | 351,036 | 104,419 | 481,711 | 8,878 | 26,250 | 2,488,607 |
| Gross profit | 78,549 | 75,824 | 38,951 | 4,980 | 81,354 | 1,253 | 10,010 | 290,922 |
| Operating result | 45,370 | 51,455 | 26,164 | -612 | 58,727 | -301 | 2,510 | 183,314 |
| Finance income | 52 | 210 | 161 | 2 | 237 | 444 | 202 | 1,308 |
| Finance cost | -9,266 | -7,560 | -10,246 | -4,121 | -13,141 | -1,840 | -872 | -47,046 |
| Share of profit/loss (-) of equity-accounted investees |
821 | -1,334 | - | -484 | 146 | - | - | -851 |
| Profit/Loss (-) before tax | 36,976 | 42,771 | 16,079 | -5,215 | 45,969 | -1,697 | 1,841 | 136,725 |
| Income tax expense | -8,812 | -6,218 | -1,644 | 1,410 | -8,833 | -311 | -5,797 | -30,206 |
| Profit/Loss (-) | 28,164 | 36,553 | 14,435 | -3,805 | 37,136 | -2,008 | -3,956 | 106,519 |
| Amounts in EUR thousands | Aluminum | Copper | Cables | Steel pipes |
Steel | Real estate |
Other activities |
Total |
|---|---|---|---|---|---|---|---|---|
| for the year ended 31 December 2021 | ||||||||
| Equity-accounted investees |
8,862 | 12,072 | 1,732 | 11,216 | 4,808 | 5,681 | - | 44,372 |
| Other assets | 1,585,081 | 775,230 | 775,950 | 363,552 | 975,740 | 547,450 | 171,046 | 5,194,049 |
| Total assets | 1,593,943 | 787,302 | 777,682 | 374,768 | 980,548 | 553,131 | 171,046 | 5,238,420 |
| Liabilities | 987,696 | 558,339 | 658,508 | 256,574 | 782,036 | 257,324 | 82,348 | 3,582,826 |
| for the 6 months ended 30 June 2021 | ||||||||
| Capital expenditure | 60,737 | 7,941 | 14,820 | 4,091 | 10,688 | 9,266 | 772 | 108,314 |
| Depreciation and amortization |
-30,643 | -8,197 | -8,512 | -4,479 | -13,257 | -4,018 | -1,965 | -71,071 |
Viohalco's subsidiaries' operations and main revenue streams are those described in the last annual financial statements. Revenue is derived from contracts with customers and from investment property rental income.
| For the six months ended 30 June | |||
|---|---|---|---|
| Amounts in EUR thousands | 2022 | 2021 | |
| Rental income from investment property | 9,785 | 5,485 | |
| Revenue from contracts with customers | 3,587,211 | 2,483,122 | |
| Total | 3,596,996 | 2,488,607 |
In the following table revenue from contract with customers is disaggregated by primary geographical market and timing of revenue recognition. The table includes a reconciliation with the Viohalco's reportable segments (see Note 5).
| for the 6 months ended 30 June 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Real | Other | |||||||
| Amounts in EUR thousands | Aluminium | Copper | Cables | Steel pipes | Steel | estate | activities | Total |
| Primary geographical markets | ||||||||
| Greece | 89,293 | 47,514 | 123,504 | 11,722 | 185,926 | 3,722 | 14,054 | 475,735 |
| Other EU countries | 762,707 | 643,566 | 176,637 | 82,867 | 461,612 | 248 | 15,690 | 2,143,326 |
| Other European countries | 159,292 | 158,221 | 59,024 | 12,729 | 93,646 | - | 2,925 | 485,838 |
| Asia | 40,909 | 55,007 | 57,633 | 5,736 | 338 | - | 10,768 | 170,391 |
| America | 140,744 | 51,492 | 6,348 | 73,463 | 539 | - | 78 | 272,663 |
| Africa | 7,681 | 19,053 | 3,315 | 219 | 1,793 | - | 20 | 32,082 |
| Oceania | 236 | 3,256 | 190 | 3,315 | - | - | 180 | 7,177 |
| Total | 1,200,862 | 978,110 | 426,651 | 190,050 | 743,854 | 3,970 | 43,714 | 3,587,211 |
| Timing of revenue recognition | ||||||||
| Revenue recognised at a point in time | 1,199,999 | 976,661 | 298,122 | 47,106 | 731,313 | 777 | 28,386 | 3,282,364 |
| Products transferred over time | - | - | 128,529 | 142,944 | 2,989 | 248 | 27 | 274,737 |
| Services transferred over time | 863 | 1,448 | - | - | 9,552 | 2,945 | 15,301 | 30,110 |
| Total | 1,200,862 | 978,110 | 426,651 | 190,050 | 743,854 | 3,970 | 43,714 | 3,587,211 |
| for the 6 months ended 30 June 2021 | Real | Other | ||||||
| Amounts in EUR thousands | Aluminium | Copper | Cables | Steel pipes | Steel | estate | activities | Total |
| Primary geographical markets | ||||||||
| Greece | 60,497 | 29,120 | 115,032 | 7,931 | 124,210 | 3,393 | 8,010 | 348,193 |
| Other EU countries | 489,071 | 473,229 | 138,911 | 74,747 | 259,026 | - | 6,321 | 1,441,305 |
| Other European countries | 68,679 | 144,475 | 42,601 | 8,243 | 94,475 | - | 3,298 | 361,771 |
| Asia | 38,244 | 47,276 | 45,360 | - | 2,056 | - | 8,123 | 141,059 |
| America | 98,466 | 37,433 | 7,294 | 13,498 | 367 | - | 178 | 157,235 |
| Africa | 7,480 | 20,643 | 1,839 | - | 1,576 | - | 13 | 31,552 |
| Oceania | 133 | 1,565 | - | - | - | - | 307 | 2,006 |
| Total | 762,571 | 753,742 | 351,036 | 104,419 | 481,711 | 3,393 | 26,250 | 2,483,122 |
| Timing of revenue recognition | ||||||||
| Revenue recognised at a point in time | 762,261 | 751,604 | 227,174 | 34,437 | 478,147 | 1,058 | 18,329 | 2,273,011 |
| Products transferred over time | - | - | 122,238 | 69,740 | - | - | - | 191,978 |
| Services transferred over time | 310 | 2,138 | 1,624 | 242 | 3,563 | 2,335 | 7,921 | 18,132 |
Total 762,571 753,742 351,036 104,419 481,711 3,393 26,250 2,483,122
Net Other income/expenses amounted to loss of EUR 1.6 million, compared to gain of EUR 0.9 million in the previous period. This variation is mainly attributed to the loss recorded from sales of AWM shares by Sidenor, subsidiary in steel segment, during the first half of 2022.
Net finance costs increased marginally by EUR 4 million as a result of increased working capital needs and increased Euribor rates, that was partially offset by the credit spread reductions that had been applied in all short- and long-term facilities to Viohalco companies during the last years.
Income tax expense was calculated based on management's estimate of the average annual tax rate that is expected to apply for the full financial year.
| For the 6 months ended 30 June | ||||
|---|---|---|---|---|
| Amounts in EUR thousands | 2022 | 2021 | ||
| Current tax | -54,949 | -35,972 | ||
| Deferred tax | -3,791 | 5,766 | ||
| Total | -58,739 | -30,206 |
According to the Greek Law 4799/2021, which is in force since May 2021, the corporate income tax rate was set to 22% from year 2021 onwards.
The consolidated effective tax rate for the six month period ended 30 June 2022 was 20% compared with 22% at 30 June 2021. The lowest rate for the first half of 2022 is explained in particular by the recognition of previously unrecognised tax losses in steel pipes segment, since it is now expected that partially prior year's tax losses will be used against future tax profits.
Reconciliation of carrying amount of associates and joint ventures:
| Amounts in EUR thousands | 30 June 2022 | 31 December 2021 |
|---|---|---|
| Opening balance | 44,372 | 38,089 |
| Share of profit / loss (-) net of tax | 1,042 | -2,530 |
| OCI profit (loss) for the period | -1 | 1 |
| Dividends received | -511 | -886 |
| Effects on movement in exchange rates | 7,074 | 671 |
| Additions | - | 225 |
| Share capital increase | 3,250 | 8,800 |
| Sales | -3,643 | - |
| Closing balance | 51,582 | 44,372 |
During H1 2022, Viohalco subsidiary ElvalHalcor participated in the share capital increase of NedΖink B.V., contributing an amount of EUR 3.25 million, retaining its percentage at 50%.
During H1 2022, Viohalco subsidiary in steel segment, Sidenor, completed the disposal of the entire portion (34%) held on AWM.
The increase in Trade and other receivables by EUR 242 million compared to 31 December 2021 is attributed to both the increased volume sold and increased raw materials prices. In addition, the increase of contract assets by EUR 116 million is mainly attributed to the invoicing of milestones for ongoing projects in both cables and steel pipes segments.
During the first half of 2022, Viohalco investments in capex projects amounted to EUR 119 million (H1 2021: EUR 98 million).
Aluminium segment investments amounted to EUR 78 million, related to the cold rolling mill and the new lacquering line at Oinofyta aluminium rolling plant and the acquisition of land at Oinofyta.
Regarding cables segment, capital expenditure in the first half of 2022 amounted to EUR 23 million, mainly in machinery to increase production capacity for submarine cables in Fulgor's plant in Corinth, improvements in the Fulgor port in Corinth and initial expenses of EUR 5.2 million related to the construction of a submarine cables factory in the USA. This amount is included in "assets under construction".
Steel segment investments, amounted to EUR 10 million, mainly concern maintenance capital expenditure and health & safety and environmental compliance improvements. They also include the installation of solar panels in Dojran's plant, the extension of the Filters of Meltshop and the installation of pelletizer in Stomana plant in Bulgaria.
Finally, additions of EUR 5 million and EUR 2 million in copper and steel pipes segment respectively, relate to maintenance and operational improvements at Oinofyta, Sofia and Thisvi plants.
Depreciation of property, plant and equipment for the six-month period amounted to EUR 61 million (H1 2021: EUR 60 million).
Intangible assets of EUR 1.2 million acquired during the first half of 2022 (H1 2021: EUR 2.6 million), mainly related to software programmes of subsidiaries.
During the first half of 2022, Viohalco invested an amount of EUR 42 million (H1 2021: EUR 8 million) for the acquisition and improvement of investment properties. The additions relate mainly to the acquisition of new investment property at Oinofyta by ElvalHalcor and the share capital increase of Noval Property by means of inkind contribution of properties and shares of new real estate companies.
As at 30 June 2022, inventories amounted at EUR 2,006 million compared to EUR 1,470 million at 31 December 2021. During the six months ended 30 June 2022, Viohalco companies recorded an impairment of inventories of EUR 12,4 million, included in 'Cost of Sales' in the consolidated statement of profit or loss statement. Such impairment was recorded due to the decreasing trend of the LME metal prices in the second quarter of 2022.
On March 17th, 2022, Viohalco's Board of directors approved the acquisition of 25% non-controlling interest in subsidiary Bridgnorth Aluminium in consideration of GBP 11 million. As a result, Viohalco's participation in Bridgnorth Aluminium amounts to 100%.
On June 14th , 2022, Viohalco acquired the remaining 14.28% of Teka Systems shares, in consideration of EUR 4 million. After the transaction Viohalco participation in the company amounts to 100%.
On June 27th, 2022, Noval Property proceeded with a share capital increase with contributions in kind, resulting in increase of non-controlling interest by 6.25%.
| Amounts in EUR thousands | 30 June 2022 | 31 December 2021 |
|---|---|---|
| Non-current liabilities | ||
| Secured bank loans | 143,085 | 119,994 |
| Unsecured bank loans | 65,581 | 69,524 |
| Secured bond issues | 510,996 | 455,719 |
| Unsecured bond issues | 469,034 | 648,856 |
| Loans and borrowings – Long term | 1,188,696 | 1,294,093 |
| Lease Liabilities – Long term | 30,117 | 34,639 |
| Total Long-term debt | 1,218,813 | 1,328,732 |
| Current liabilities | ||
| Secured bank loans | 219,615 | 183,484 |
| Unsecured bank loans | 635,015 | 459,179 |
| Current portion of secured bank loans | 42,162 | 63,553 |
| Current portion of unsecured bank loans | 15,732 | 15,473 |
| Current portion of secured bond issues | 280,265 | 82,388 |
| Current portion of unsecured bond issues | 71,914 | 44,068 |
| Loans and borrowings – Short-term | 1,264,701 | 848,145 |
| Lease Liabilities – Short-term | 10,598 | 10,696 |
| Total Short-term debt | 1,275,300 | 858,841 |
| Total loans and borrowings | 2,494,113 | 2,187,573 |
| Amounts in EUR thousands | 30 June 2022 | 31 December 2021 |
|---|---|---|
| Between 1 and 2 years | 222,539 | 251,691 |
| Between 2 and 5 years | 467,933 | 575,669 |
| Over 5 years | 528,340 | 501,372 |
| Total | 1,218,813 | 1,328,732 |
| 30 June 2022 | |||
|---|---|---|---|
| Carrying amount | Interest rate | ||
| Bank loans (non-current*) - EUR | 204,854 | 2.32% | |
| Bank loans (current) - EUR | 742,919 | 3.39% | |
| Bank loans (current) - USD | 15,264 | 4.04% | |
| Bank loans (current) - GBP | 34,893 | 4.10% | |
| Bond issues - EUR | 1,332,208 | 3.04% | |
| 31 December 2021 | |||
| Carrying amount | Interest rate | ||
| Bank loans (non-current*) - EUR | 260,465 | 2.46% | |
| Bank loans (current)-EUR | 574,039 | 3.39% | |
| Bank loans (current)-USD | 10,110 | 4.50% | |
| Bank loans (current)-GBP | 36,372 | 3.17% | |
| Bond issues-EUR | 1,231,031 | 2.94% |
The effective weighted average interest rates at the reporting date (as per contract) are as follows:
*Including current portion
The majority of Viohalco companies' loans are Euro denominated.
During 2022, Viohalco subsidiaries obtained new bank loans amounting to EUR 428 million and repaid bank loans of EUR 121 million maturing within the year. The new loans were bond and bank loans totaled EUR 151 million and withdrawals from existing revolving credit lines and recourse factoring to finance the increased working capital needs of the Group, totaled EUR 277 million.
More specifically, during H1 2022 the main events relating to Viohalco companies' financing are the following:
▪ Corinth Piperworks signed with Greek bank a new 7-year bond loan of EUR 7 million.
▪ On 30.06.2022, Sidenor and Sovel, subsidiaries in steel segment, reclassified total amount of EUR 197.7 million to current loans and borrowing, after receiving waivers but the lettersfrom the credit institutions were dated after the reporting date of 30.06.2022.
No other significant events, related with the financing of subsidiaries occurred during the period.
| Loans and | Lease | Total | |
|---|---|---|---|
| Amounts in EUR thousands | Borrowings | Liabilities | |
| Balance at 1 January 2022 | 2,142,238 | 45,334 | 2,187,573 |
| Changes from financing cash flows | |||
| Proceeds from loans and borrowings | 428,296 | - | 428,296 |
| Repayment of borrowings & lease liabilities | -120,777 | -5,549 | -126,327 |
| Total change from financing cash flows | 307,519 | -5,549 | 301,969 |
| Other changes | |||
| New leases | - | 4,011 | 4,011 |
| Interest expense | 38,981 | 968 | 39,949 |
| Interest paid* | -34,461 | -934 | -35,395 |
| Capitalised borrowing costs | 184 | - | 184 |
| Terminations/modifications of lease contracts | - | -3,134 | -3,134 |
| Effect of changes in foreign exchange rates | -1,062 | 18 | -1,044 |
| Total other changes | 3,641 | 930 | 4,571 |
| Balance at 30 June 2022 | 2,453,398 | 40,715 | 2,494,113 |
*Interest paid reported in Cash Flow Statement, includes bank charges and other finance costs.
| Amounts in EUR thousands | Loans and Borrowings |
Lease Liabilities |
Total |
|---|---|---|---|
| Balance at 1 January 2021 | 1,747,933 | 52,211 | 1,800,144 |
| Changes from financing cash flows | |||
| Proceeds from loans and borrowings | 896,672 | 0 | 896,672 |
| Repayment of borrowings & lease liabilities | -514,171 | -11,562 | -525,733 |
| Total change from financing cash flows | 382,501 | -11,562 | 370,940 |
| Other changes | |||
| New leases | 0 | 5,146 | 5,146 |
| Interest expense | 70,576 | 2,076 | 72,651 |
| Interest paid* | -62,521 | -2,061 | -64,582 |
| Capitalised borrowing costs | 862 | - | 862 |
| Terminations/modifications of lease contracts | 674 | -483 | 191 |
| Effect of changes in foreign exchange rates | 2,214 | 7 | 2,222 |
| Total other changes | 11,805 | 4,685 | 16,489 |
| Balance at 31 December 2021 | 2,142,238 | 45,334 | 2,187,573 |
*Interest paid reported in Cash Flow Statement, includes bank charges and other finance costs,
Short term facilities are predominately revolving credit facilities, which finance working capital needs and specific ongoing projects. Viohalco subsidiaries have never in the past experienced any issues in financing their activities, renewing their working capital lines or refinancing long-term loans and borrowings. Management expects that any mandatory repayment of banking facilities will be met with operating cash flows or from currently unutilized and committed credit lines.
The average interest rate of the outstanding bank loans as at 30 June 2022 was 3.1% (3% as at 31 December 2021). Property, plant and equipment and inventories of some subsidiaries carry mortgages and liens for a total amount of EUR 1,232 million, as collaterals for long term loans and syndicated loans. In addition, for certain Viohalco companies' loans, there are change of control clauses that provide lenders early redemption rights.
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including the levels in the fair value hierarchy.
| 30 June 2022 | |||||
|---|---|---|---|---|---|
| Carrying | |||||
| Amounts in EUR thousands | amount | Level 1 | Level 2 | Level 3 | Total |
| Other investments | 7,855 | 3,711 | - | 4,144 | 7,855 |
| Derivative financial assets | 102,558 | 34,922 | 66,607 | 1,029 | 102,558 |
| 110,413 | 38,633 | 66,607 | 5,174 | 110,413 | |
| Derivative financial liabilities | -16,486 | -10,105 | -6,381 | - | -16,486 |
| 93,927 | 28,528 | 60,226 | 5,174 | 93,927 | |
| 31 December 2021 | |||||
| Carrying | |||||
| Amounts in EUR thousands | amount | Level 1 | Level 2 | Level 3 | Total |
| Other investments | 8,457 | 4,543 | - | 3,915 | 8,457 |
| Derivative financial assets | 17,221 | 14,343 | 1,934 | 944 | 17,221 |
| 25,679 | 18,886 | 1,934 | 4,859 | 25,679 | |
| Derivative financial liabilities | -11,149 | -8,316 | -2,833 | 0 | -11,149 |
| 14,529 | 10,570 | -899 | 4,859 | 14,529 |
The various levels are as follows:
The fair value of the following financial assets and liabilities measured at amortised cost approximates their carrying amount:
Specifically, the carrying amount of loans and borrowings is considered as a good approximation of their fair value, as 90% of consolidated Loans and borrowings concern floating-rate debt, which is a very good approximation of current market rates.
The following table shows reconciliation between opening and closing balances for Level 3 financial assets:
| Amounts in EUR thousands | Derivatives | Other investments |
|---|---|---|
| Balance as at 1 January 2022 | 944 | 3,915 |
| Additions | - | 230 |
| Effect of changes in foreign exchange rates | 85 | - |
| Balance as at 30 June 2022 | 1,029 | 4,144 |
| Balance as at 1 January 2021 | 1,084 | 3,846 |
| Additions | - | 77 |
|---|---|---|
| Disposals | -213 | -8 |
| Effect of changes in foreign exchange rates | 73 | - |
| Balance as at 31 December 2021 | 944 | 3,915 |
Other investments represent equity securities which Viohalco intends to hold for strategic purposes and therefore they have been classified as FVOCI investments.
The analysis of equity securities is presented below:
| Amounts in EUR thousands | 30 June 2022 | 31 December 2021 |
|---|---|---|
| Listed securities | ||
| -Greek equity instruments | 125 | 125 |
| -International equity instruments | 3,586 | 4,417 |
| Unlisted securities | ||
| -Greek equity instruments | 3,046 | 2,951 |
| -International equity instruments | 849 | 849 |
| -Mutual funds | 228 | 94 |
| -Other | 20 | 20 |
| Total | 7,855 | 8,457 |
The following table sets out the carrying amount of derivatives:
| Amounts in EUR thousands | 30 June 2022 | 31 December 2021 |
|---|---|---|
| Non-current assets | ||
| Interest rate swap contracts | 7,298 | - |
| Commodity swaps | 22,271 | 944 |
| Options | 1,029 | - |
| Total | 30,598 | 944 |
| Current assets | ||
| Interest rate swap contracts | 2,255 | - |
| Forwards | 9,310 | 760 |
| Future contracts | 34,876 | 7,670 |
| Commodity swaps | 25,519 | 7,847 |
|---|---|---|
| Total | 71,960 | 16,277 |
| Non-current liabilities Interest rate swap contracts |
- | 382 |
| Future contracts | 127 | - |
| Commodity swaps | 609 | 3,205 |
| Total | 736 | 3,587 |
| Current liabilities Forwards |
4,910 | 2,501 |
| Interest rate swap contracts | 794 | - |
| Future contracts | 9,961 | 5,062 |
| Commodity swaps | 85 | - |
| Total | 15,750 | 7,563 |
The significant increase in open derivatives positions compared to 31.12.2021 reflects the excessive market volatility during H1 2022, especially in energy markets.
Viohalco's companies hold derivative financial instruments for cash flow and fair value hedges.
The abovementioned derivative financial instruments cover risks from:
The maturity and the nominal value of derivatives held by Viohalco's companies match the maturity and nominal value of the underlying assets / liabilities (hedged items).
Derivatives held by Viohalco companies concerns mainly:
Derivatives are recognized when Viohalco companies enter into the transaction in order either to hedge the fair value of receivables, liabilities or commitments (fair value hedges) or highly probable transactions (cash flow hedges).
The change in fair value recognized in equity under cash flow hedging as of 30 June 2022 will be recycled to the consolidated statement of profit or loss during the next years, as some of the hedged events are expected to occur (the forecasted transactions will take place or the hedged items will affect Profit or Loss statement) within 2022 and some others at a later stage.
(a) Valuation techniques and significant unobservable inputs
During the period there were no changes in valuation processes compared to those described in the last annual Consolidated Financial Statements.
Fair value for interest rate swaps is calculated on the basis of the present value of forecasted future cash flows. Interest rate swaps are categorized as Level 2, based on the inputs used in the valuation technique to determine their fair value.
(b) Transfers between Levels 1 and 2
There were no transfers from Level 2 to Level 1 or from Level 1 to Level 2 in first half of 2022 or in 2021.
Viohalco companies have provided guarantees in favor of customers and suppliers, mainly in order to secure that certain conditions of contracts will be fulfilled according to agreed terms, relating to products or services.
An analysis of guarantees is provided below:
| Amounts in EUR thousands | 30 June 2022 | 31 December 2021 |
|---|---|---|
| Guarantees to secure liabilities to suppliers | 33,220 | 35,172 |
| Guarantees for securing the good performance of contracts with customers |
416,335 | 238,306 |
| Guarantees for securing the good performance of contracts with suppliers |
618 | 2,141 |
| For the six months ended 30 June | ||
|---|---|---|
| Amounts in EUR thousands | 2022 | 2021 |
| Sales of goods / services | ||
| Associates | 66,356 | 46,292 |
| Joint ventures | 26,527 | 15,265 |
| 92,883 | 61,557 | |
| Sale of fixed assets | ||
| Joint ventures | - | 172 |
| - | 172 | |
| Purchases of goods / services | ||
| Associates | 7,669 | 5,849 |
| Joint ventures | 2,251 | 1,350 |
| 9,920 | 7,199 | |
| Purchase of property, plant and equipment | ||
| Associates | 70 | 15 |
| 70 | 15 | |
| Amounts in EUR thousands | 30 June 2022 | 31 December 2021 |
| Receivables from related parties | ||
| Associates | 47,861 | 37,625 |
| Joint ventures | 13,568 | 10,025 |
| 61,429 | 47,651 | |
| Contract assets from related parties | ||
| Associates | 47 | 90 |
| Joint ventures | 21 | 42 |
| 68 | 132 | |
| Liabilities to related parties | ||
| Associates | 3,620 | 3,543 |
| Joint ventures | 499 | 1,263 |
| 4,119 | 4,806 | |
| Contract liabilities from related parties | ||
| Joint ventures | - | 8 |
Key management remuneration for the six months period ended 30 June 2022 to the Board members and the executive management for the execution of their mandate amounted to EUR 2,767 thousand (H1 2021: EUR 2,705 thousand).
The fees to directors and executive management are fixed compensation. No variable compensation, postemployment benefits or share-based benefits were paid during the period.
On 19.07.2022, Viohalco subsidiary ElvalHalcor participated in the share capital increase of the associate NedΖink BV, paying EUR 1 million and maintaining its holding percentage at 50%.
There are no other subsequent events affecting the consolidated financial information.
____________________________________________________ _____ ______
We have reviewed the accompanying condensed consolidated interim financial statements, consisting of the condensed consolidated statement of financial position of Viohalco S.A. and its subsidiaries (jointly "the Group") as of 30 June 2022, and the related condensed consolidated statement of profit or loss, the condensed consolidated statement of profit or loss and other comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the six-month period then ended, as well as the explanatory notes. The board of directors is responsible for the preparation and presentation of this condensed consolidated interim financial statements in accordance with IAS 34, as adopted by the European Union. Our responsibility is to express a conclusion on this condensed consolidated interim financial statements based on our review.
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity." A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with IAS 34, as adopted by the European Union.
Diegem, 22 September 2022
The statutory auditor PwC Réviseurs d'Entreprises SRL / Bedrijfsrevisoren BV Represented by
Marc Daelman Registered auditor
PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial Assurance Services Maatschappelijke zetel/Siège social: Woluwe Garden, Woluwedal 18, B-1932 Sint-Stevens-Woluwe T: +32 (0)2 710 4211, F: +32 (0)2 710 4299, www.pwc.com BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811 9501 - BIC BBRUBEBB / BELFIUS BE92 0689 0408 8123 - BIC GKCC BEBB
Viohalco management has adopted, monitors and reports internally and externally P&L alternative performance measures ('APMs'), namely EBITDA, EBIT, adjusted EBITDA (a-EBITDA) and adjusted EBIT (a-EBIT) on the basis that they are appropriate measures reflecting the underlying performance of the business. These APMs are also key performance metrics on which Viohalco prepares, monitors and assesses its annual budgets and long-term (5 year) plans. However, it must be noted that adjusted items should not be considered as non-operating or nonrecurring items.
Relating to balance sheet items, Viohalco management monitors and reports the net debt measure.
EBIT is defined as profit for the period before:
a-EBIT is defined as EBIT, excluding :
EBITDA is defined as profit for the period before:
a-EBITDA is defined as EBITDA excluding the same line items as a-EBIT.
Net Debt is defined as the total of:
Less: Cash and cash equivalents.
Metal price lag is the P&L effect resulting from fluctuations in the market prices of the underlying commodity metals (ferrous and non-ferrous) which Viohalco subsidiaries use as raw materials in their end-product production processes.
Metal price lag exists due to:
Most of Viohalco subsidiaries use back to back matching of purchases and sales, or derivative instruments in order to minimize the effect of the Metal Price Lag on their results. However, there will always be some impact (positive or negative) in the P&L, since inventory in the non-ferrous segments (i.e. aluminum, copper and cables) is treated as being held on a permanent basis (minimum operating stock), and not hedged, in the ferrous segments (i.e. steel and steel pipes), no commodities hedging occurs.
| H1 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Amounts in EUR thousands | Aluminium | Copper | Cables | Steel pipes |
Steel | Real estate |
Other activities |
Total |
| EBT (as reported in Statement of Profit or Loss) |
133,503 | 37,400 | 25,948 | -3,560 | 98,900 | -1,622 | 2,126 | 292,695 |
| Adjustments for: | ||||||||
| Share of profit/loss (-) of Associates |
-669 | 635 | - | -1,194 | -128 | 314 | - | -1,042 |
| Net finance cost | 12,574 | 7,846 | 10,982 | 3,710 | 12,385 | 1,557 | 653 | 49,707 |
| EBIT | 145,407 | 45,882 | 36,929 | -1,045 | 111,158 | 249 | 2,779 | 341,359 |
| Add back: | ||||||||
| Depreciation & Amortization | 28,858 | 8,241 | 8,866 | 4,447 | 13,465 | 4,682 | 2,046 | 70,607 |
| EBITDA | 174,266 | 54,123 | 45,796 | 3,402 | 124,623 | 4,931 | 4,825 | 411,966 |
| H1 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Amounts in EUR thousands | Aluminium | Copper | Cables | Steel pipes |
Steel | Real estate |
Other activities |
Total |
| EBT (as reported in Statement of Profit or Loss) |
36,976 | 42,771 | 16,079 | -5,215 | 45,969 | -1,697 | 1,841 | 136,725 |
| Adjustments for: | ||||||||
| Share of profit/loss (-) of Associates |
-821 | 1,334 | - | 484 | -146 | - | - | 851 |
| Net finance cost | 9,214 | 7,350 | 10,085 | 4,119 | 12,904 | 1,396 | 670 | 45,738 |
| EBIT | 45,370 | 51,455 | 26,164 | -612 | 58,727 | -301 | 2,510 | 183,314 |
| Add back: | ||||||||
| Depreciation & Amortization | 29,923 | 8,106 | 8,067 | 4,439 | 13,060 | 4,018 | 1,945 | 69,558 |
| EBITDA | 75,293 | 59,562 | 34,231 | 3,827 | 71,787 | 3,717 | 4,455 | 252,872 |
| H1 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Amounts in EUR thousands | Aluminium | Copper | Cables | Steel pipes | Steel | Real Estate | Other activities |
Total |
| EBT (as reported in Statement of Profit or Loss) |
133,503 | 37,400 | 25,948 | -3,560 | 98,900 | -1,622 | 2,126 | 292,695 |
| Adjustments for: | ||||||||
| Net finance cost | 12.,574 | 7,846 | 10,982 | 3,710 | 12,385 | 1,557 | 653 | 49,707 |
| Metal price lag | -44,404 | -7,452 | 2,399 | - | -8.810 | - | - | -58,267 |
| Share of profit/ (loss) of equity investees, net of tax |
-669 | 635 | - | -1,194 | -128 | 314 | - | -1,042 |
| Impairment/ Reversal of Impairment (-) on fixed assets |
143 | - | - | - | - | - | - | 143 |
| Gains (-) /losses from sales of fixed assets and intangibles |
-119 | 166 | -340 | -1 | -4 | - | -130 | -428 |
| Gains (-)/ losses from sales of investments |
- | - | - | - | 1,343 | - | - | 1,343 |
| Provision for indemnity to customer(1) | - | - | - | 500 | - | - | - | 500 |
| a-EBIT | 101,028 | 38,596 | 38,988 | -546 | 103,687 | 249 | 2,648 | 284,650 |
| Add back: | ||||||||
| Depreciation & Amortization | 28,858 | 8,241 | 8,866 | 4,447 | 13,465 | 4,682 | 2.046 | 70,607 |
| a-EBITDA | 129,886 | 46,837 | 47,854 | 3,901 | 117,153 | 4,931 | 4,695 | 355,257 |
| H1 2021 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Amounts in EUR thousands | Aluminium | Copper | Cables | Steel pipes | Steel | Real Estate | Other activities |
Total |
| EBT (as reported in Statement of Profit or Loss) |
36,976 | 42,771 | 16,079 | -5,215 | 45,969 | -1,697 | 1,841 | 136,725 |
| Adjustments for: | ||||||||
| Net finance cost | 9,214 | 7,350 | 10,085 | 4,119 | 12,904 | 1,396 | 670 | 45,738 |
| Metal price lag | -10,615 | -28,487 | 7,587 | - | -29,142 | - | - | -60,656 |
| Share of profit/ (loss) of equity investees, net of tax |
-821 | 1,334 | - | 484 | -146 | - | - | 851 |
| Impairment/ Reversal of Impairment (-) on fixed assets |
672 | - | - | - | - | - | - | 672 |
| Gains (-) /losses from sales of PP&E, intangibles and inv. property |
49 | 499 | -14 | - | -11 | -491 | -19 | 13 |
| Reorganization costs | - | - | - | 816 | - | - | - | 816 |
| Incremental coronavirus costs (2) | 566 | 789 | 297 | 139 | 603 | 3 | 7 | 2,404 |
| a-EBIT | 36,042 | 24,256 | 34,035 | 343 | 30,177 | -789 | 2,498 | 126,563 |
| Add back: | ||||||||
| Depreciation & Amortization | 29,923 | 8,106 | 8,067 | 4,439 | 13,060 | 4,018 | 1,945 | 69,558 |
| a-EBITDA | 65,965 | 32,362 | 42,102 | 4,782 | 43,237 | 3,229 | 4,443 | 196,121 |
(1) In 2013, Viohalco subsidiary Corinth Pipeworks, manufactured and supplied pipes for a pipeline in France. During 2015, the French client filed a quality claim against Corinth Pipeworks, its insurers and the subcontractors in charge for the welding of the pipeline. The commercial court of Paris rendered its decision on 7 July 2022 and ruled that Corinth Pipeworks should be held liable for the latent defects affecting the pipes it delivered to its French customer but that the latter was also responsible for its own loss. Consequently, given that 2013 sales were fully insured, Corinth Pipeworks recorded a provision of EUR 500 thousand during the sixmonth period ended on 30 June 2022 that corresponds to its maximum exposure for that specific claim, based on the insurance contracts in its possession.
(2) Incremental coronavirus costs adjusted in 2021, concern all incremental costs incurred due to the coronavirus outbreak. Such costs are directly attributable to the coronavirus outbreak and are incremental to costs incurred prior to the outbreak and not expected to recur once the crisis has subsided and operations return to normal, while they are clearly separable from normal operations. In 2022, as these costs have been incorporated in the operating costs of subsidiaries, they do not meet the definition of non-recurring and therefore they are not considered as adjusting items.
| H1 2022 | Aluminium | Copper | Cables | Steel pipes |
Steel | Real estate |
Other activities |
Total |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1,200,862 | 978,110 | 426,651 | 190,050 | 743,854 | 13,755 | 43,714 | 3,596,996 |
| Gross profit | 182,834 | 70,970 | 52,240 | 5,452 | 138,490 | 3,466 | 9,668 | 463,120 |
| Operating profit | 145,407 | 45,882 | 36,929 | -1,045 | 111,158 | 249 | 2,779 | 341,359 |
| Net finance cost | -12,574 | -7,846 | -10,982 | -3,710 | -12,385 | -1,557 | -653 | -49,707 |
| Share of profit/loss (-) of Associates | 669 | -635 | - | 1,194 | 128 | -314 | - | 1,042 |
| Profit/Loss (-) before tax | 133,503 | 37,400 | 25,948 | -3,560 | 98,900 | -1,622 | 2,126 | 292,695 |
| Income tax | -29,942 | -5,232 | -5,594 | 2,602 | -18,182 | -417 | -1,975 | -58,739 |
| Profit/Loss (-) | 103,561 | 32,168 | 20,354 | -958 | 80,718 | -2,038 | 151 | 233,955 |
| H1 2021 | Aluminium | Copper | Cables | Steel pipes |
Steel | Real estate |
Other activities |
Total |
|---|---|---|---|---|---|---|---|---|
| Revenue | 762,571 | 753,742 | 351,036 | 104,419 | 481,711 | 8,878 | 26,250 | 2,488,607 |
| Gross profit | 78,549 | 75,824 | 38,951 | 4,980 | 81,354 | 1,253 | 10,010 | 290,922 |
| Operating profit | 45,370 | 51,455 | 26,164 | -612 | 58,727 | -301 | 2,510 | 183,314 |
| Net finance cost | -9,214 | -7,350 | -10,085 | -4,119 | -12,904 | -1,396 | -670 | -45,738 |
| Share of profit/loss (-) of Associates | 821 | -1,334 | - | -484 | 146 | - | - | -851 |
| Profit/Loss (-) before tax | 36,976 | 42,771 | 16,079 | -5,215 | 45,969 | -1,697 | 1,841 | 136,725 |
| Income tax | -8,812 | -6,218 | -1,644 | 1,410 | -8,833 | -311 | -5,797 | -30,206 |
| Profit/Loss (-) | 28,164 | 36,553 | 14,435 | -3,805 | 37,136 | -2,008 | -3,956 | 106,519 |
| As at | |||||
|---|---|---|---|---|---|
| Amounts in EUR thousands | 30 June 2022 | 31 December 2021 | |||
| Long term | |||||
| Loans & borrowings | 1,188,696 | 1,294,093 | |||
| Lease liabilities | 30,117 | 34,639 | |||
| Short term | |||||
| Loans & borrowings | 1,264,701 | 848,145 | |||
| Lease liabilities | 10,598 | 10,696 | |||
| Total Debt | 2,494,113 | 2,187,573 | |||
| Less: | |||||
| Cash and cash equivalents | -298,470 | -503,267 | |||
| Net Debt | 2,195,643 | 1,684,306 |
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.