Viohalco S A : FINANCIAL RESULTS FOR THE FISCAL YEAR 2018

REGULATED INFORMATION

INSIDE INFORMATION

FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018

Brussels, 21 March 2019 - Viohalco S.A. (Euronext Brussels: VIO, Athens Stock Exchange: BIO), hereafter "Viohalco" or "the Company", today announces its financial results for the year ended 31 December 2018.

Maintaining positive momentum in revenue and profitability

Revenue exceeds EUR 4.4 billion

Highlights

•  Year of growth and improved profitability across core metal segments

•  Continuous investments to meet end market trends

•  Consolidated revenue amounted to EUR 4,406 million, up 18% year-on-year (2017: EUR 3,721 million)

•  Consolidated adjusted EBITDA (a-EBITDA) equal to EUR 317 million, up 12% (2017: EUR 284 million); consolidated EBITDA of EUR 332 million, an increase of 10% (2017: EUR 303 million);

•  Consolidated profit before income tax amounted to EUR 96 million, up 68% year-on-year (2017: EUR 57 million).

Overview

Viohalco continued to leverage its strong track record in 2018, achieving a year of revenue growth and profitability, with all core metal segments showing improved results.

The 16% revenue growth in the aluminum segment was supported by positive market trends and an improved product mix. Meanwhile, the execution of the EUR 150 million investment programme, aimed at enhancing Elval's plant production capacity and efficiency (Greek aluminium rolling division), has commenced. This investment will be pivotal in strengthening the Company's position in growing end-markets, including the automotive industry.

The copper segment revenue grew by 13% for the year, supported by volume growth. Amidst increasing competition, investments into production facilities permitted production capacity enhancements, thus allowing the companies to further diversify their product portfolio.

The steel segment taking advantage of its recent investments achieved 20% revenue growth in 2018, as a result of higher sales volumes, better plant utilization and continued new product development. US steel tariffs affected supply and demand dynamics in Turkey, Southeastern Europe and the MENA region, while price increases in critical production materials presented further headwinds in 2018.

It has been a positive year for the steel pipes segment, which reported record sales, marking a significant increase by 59% year-on-year in revenue. In addition to a number of large onshore projects in the USA and Europe, several offshore projects were successfully executed, including the first deep-sea offshore pipes project for the segment.

The cables segment saw the development of a steady pipeline of new projects and completion of significant existing assignments in 2018. Despite lower than expected capacity utilisation at the Fulgor plant, the cables segment achieved higher sales volumes and an improved sales mix. This led to revenue growth of 16% for the year, supported by improved performance across key existing markets and further penetration into new markets.

As for the real estate segment, River West|IKEA and Mare West Retail Park on the retail side, as well as Wyndham Grand Athens and K29 on the hospitality side continued to outperform, while at the same time there was continued progress in several development projects.

Looking ahead, Viohalco's companies - which are well positioned to take advantage of the opportunities presented in the markets - will remain focused on strengthening their market positions through ongoing investment programmes, technological innovation and continuous operational efficiency improvements.

Financial Overview

Amounts in EUR thousands	2018	2017*
Revenue	4,406,185	3,721,311
Gross profit	396,775	362,215
EBITDA	331,857	302,546
a-EBITDA	317,025	284,207
EBIT	200,044	167,452
a-EBIT	185,212	149,114
Net finance cost	-102,499	-110,432
Profit before tax	95,612	56,839
Profit for the period	85,852	83,794
Profit / Loss (-) attributable to owners of the Company	76,112	73,680

* Re-presented. Reconciliation vs figures published in the 2017 Annual Report is provided in the consolidated financial statements

- EBITDA, EBIT, adjusted EBITDA and adjusted EBIT are considered Alternative Performance Measures (APMs). For definitions and further information please refer toAppendix C.

Viohalco's consolidated revenue for 2018 was EUR 4,406 million, 18% higher compared to EUR 3,721 million in 2017, mostly as a result of increase in sales volumes in all core segments.

Consolidated EBITDA increased by 10% year-on-year to EUR 332 million in 2018 (2017: EUR 303 million), mainly driven by stronger results in the aluminium and steel pipes segments.

Net finance cost decreased to EUR 102.5 million (2017: EUR 110.4 million), due to credit spread reductions which have been implemented gradually to all Viohalco companies throughout the year.

Viohalco's consolidated profit before income tax for the year was EUR 95.6 million, compared to EUR 56.8 million in 2017.

Consolidated profit for the period amounted to EUR 85.9 million, slightly higher than 2017 (EUR 83.8 million) despite the significant increase in profit before tax. This is due to the recognition of deferred tax assets relating to carried forward tax losses and to thin capitalization rules during 2017.

Amounts in EUR thousands	31/12/2018	31/12/2017
Fixed & intangible assets	1,989,868	1,935,410
Other non-current assets	67,224	50,299
Non-current assets	2,057,092	1,985,709
Inventory	1,142,309	1,005,867
Trade and other receivables (inc. contract assets)	668,633	509,740
Cash and cash equivalents	163,676	168,239
Other current assets	13,976	14,534
Current assets	1,988,594	1,698,380
Total assets	4,045,685	3,684,089
Equity	1,304,624	1,229,218
Loans and borrowings	896,806	718,716
Other non-current liabilities	172,160	195,113

Non-current liabilities	1,068,965	913,829
Loans and borrowings	902,555	977,071
Trade and other payables (inc. contract liabilities)	739,391	544,414
Other current liabilities	30,150	19,557
Current liabilities	1,672,096	1,541,041
Total equity and liabilities 4,045,685		3,684,089

Capital expenditure for the year amounted to EUR 196 million, leading to a 4% increase of non-current assets. Depreciation and amortization for the year equal to EUR 136 million.

Working capital increased by 10% compared to 2017, mainly due to higher production and sales volumes, which affected all working capital components (inventory, receivables and payables).

Viohalco companies' net debt increased to EUR 1,636 million (2017: EUR 1.528 million) to support the growth achieved within 2018. Total gross debt comprises 50% long term and 50% short term facilities. During the year there was a shift of facilities from current liabilities to non-current, as a result of debt restructuring actions fulfilled for certain Viohalco subsidiaries.

Performance by business segment

Amounts in EUR thousands	EBIT	EBT
Segments	2017	2017	2017	2018	2017	2018	2017
Aluminium	1,397,322	1,206,018	144,079	125,389	122,665	102,423	89,565	69,260	70,278	52,022
Copper	1,065,500	940,940	53,500	58,424	50,658	46,895	41,706	44,537	21,119	19,846
Cables	474,734	407,971	32,208	30,297	35,564	33,246	18,541	17,452	-3,961	-4,459
Steel	916,581	765,243	74,002	71,191	74,312	75,156	37,812	35,956	9,115	3,315
Steel pipes	470,174	294,991	25,536	11,489	29,345	20,645	17,918	2,332	8,612	-8,149
Real estate	8,388	9,159	4,607	5,565	4,597	5,565	297	1,298	-1,507	112
Recycling	45,626	66,005	2,952	6,896	3,256	6,728	273	4,179	-1,807	1,672
Other activities	27,860	30,984	-5,027	-6,705	-3,372	-6,450	-6,068	-7,563	-6,238	-7,520
Total	4,406,185	3,721,311	331,857	302,546	317,025	284,207	200,044	167,452	95,612	56,839
Aluminium

2018

Revenue

EBITDA

a-EBITDA

In 2018, the aluminium segment increased its sales volumes and its revenue increased by 16% to EUR 1,397 million. Profit before income tax amounted to EUR 70 million (2017: EUR 52 million).

The global market for aluminium flat rolled products ('FRP') has remained favourable throughout 2018 with notable positive developments in Europe and the US. Demand for flat rolled products was mainly driven by the transportation and industrial sectors, together with a significant global upward trend in demand for packaging products. The product mix was further optimized by focusing on niche value-added aluminum sheets and coils in all industry sectors. Most notably, the combined sales volumes of the Greek aluminium rolling division grew by 7%, while sales volumes of Bridgnorth Aluminium grew 18%, driven mostly by share gains in the lithographic segment. Sales of the extrusion unit of the aluminium segment were in line with expectations, further supported by the re-opening of production facilities at the Greek plant.