CORPORATE PRESENTATION - SEPTEMBER 2019 - ELVALHALCOR
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September 2019 Corporate Presentation
1
Table of Contents
Section 1. ElvalHalcor Overview Page 3
Section 2. Market Update Page 14
Section 3. Aluminium Segment Page 18
Section 4. Copper Segment Page 25
Section 5. Financial Information Page 32
Appendix I. Company History Page 45
Appendix II. Sustainable Development Policy Page 48
2
ElvalHalcor Overview
ElvalHalcor at a Glance
ElvalHalcor is a Greek-based leading global player in the non-ferrous metals industry
Key Highlights
Leading global manufacturer of aluminium and copper
products, formed in December 2017 via the merger of Elval 2.1 1.9 142
and Halcor EUR billion EUR billion EUR million adj.
revenue total exports EBITDA
More than 80 years of experience
Ranks amongst the biggest global non-ferrous metal
industry producers
Commercial export orientation with well-balanced
European
international presence across more than 100 countries
482 Νο.1 leading
Copper tubes positions in
Thousand tons
Solid client base comprising blue chip, sector-leading volume of sales
producer in aluminium
companies Europe products
Strong production base across 14 industrial units in Greece,
Bulgaria, Turkey and the Netherlands
Investment plan €150m in Aluminium segment which is
expected to increase total output by c.20% upon completion 102 14 >500
Countries EUR million
State of the art
products are investments
Listed on Athens Stock Exchange. production
during the last
shipped plants
10 years
4
Corporate Structure Overview
(1)
Other Shareholders
91.4% 8.6%
100% 89%
Other Participations
• Cenergy Holdings (25%)
100% • Elkeme (93%) 100%
• International Trade (28%)
Aluminium
Copper
100% 100%
49% 50%
Isitma
50% 50%
1. Viohalco S.A. is a Belgium-based holding company of leading metal processing companies
across Europe. It is dual listed on the Brussels and the Athens Stock Exchanges 5
2. UACJ ElvalHalcor , HC Isitma and Nedzink are JVs
International Focus
Highly extrovert business model with solid presence in more than 100 countries around the globe and
revenues generated abroad representing over 92% of total turnover
Group turnover (FY’18)
13%
Germany
Netherlands(1) 9%
6% UK Other Europe
(non-EU)
8%
10% France
America
25% 8%
12% Greece 6%
Other EU
Italy Asia
3%
Production facilities Africa & Oceania
Bulgaria
Turkey(1)
Greece
1. NedZink B.V. and HC Isitma production facilities are JVs
6
Position in the Value Chain
Aluminium
Manufacturing
Client
Mining Refining Smelting
Industry
Casting Rolling Finishing
Extracting Bauxite Alumina refinery Electrolytic Producing basic Reshaping into Finalizing
from mine converting to shapes: slabs intermediary products
primary aluminium products
Leaching and Electrowining Manufacturing
Client
Copper
Mining
Industry
Rolling/
Smelting Refining Casting Finishing
Extruding
Extracting ore from Purifying to copper Electrolytic converting Producing basic Reshaping into Finalizing
mine (crushing, anodes (99% pure) to cathodes (99.9999% shapes: rods, intermediary products
grinding, flotation, pure) slabs, billets products
concentrating)
7
Pass-through Business Model
Focus on maximizing Net Added Value, with limited exposure to commodity price volatility
ElvalHalcor purchases primary copper and aluminium, scrap and alloying metals to re-melt the materials and create products.
Majority of cost of raw materials is directly linked to LME metal price, which is passed on to customers.
ElvalHalcor creates net added value primarily through a fabrication cost mark-up.
Premiums are charged on top of LME prices including (i) premium to cover cost of receiving physical metal, (ii) any regional premiums,
and (iii) a conversion price, representing cost and margin on manufacturing the final product
As a result, ElvalHalcor has minimal net exposure to aluminium and copper prices.
Sales Price
EH Added Value
Net Added Value (Fabrication and
Transportation Cost
Mark-up)
Raw Material Costs Scrap Result
LME
+Premium
Premium
Scrap:
LME price net of scrap Metal Result
rebates and contained
alloying metal rebates
LME Metal
Price
Primary Aluminium, Pass-through of raw material cost
Raw Material Costs: RawtoMaterial
customers
Costs:
Copper and Alloys:
Accounting Accounting
LME Metal Price &
Valuation Valuation
LME Premium
8
Financial Highlights FY 2018
FY 2017 FY 2018 2017 vs 2018
Revenue : €1,863m Revenue: €2,118m Revenue growth
Increase driven by
+14%
Revenue(1)
921 growth in volumes by
1,079 1,039
942 49% 8.8% at Copper segment
51% 49%
51% and 7.0% at Aluminium
segment.
EBITDA: €160m EBITDA: €165m EBITDA evolution
50 47 +3% EBITDA positively driven
EBITDA(1)
31% 28%
by evolution of sales, but
110 118 with less metal cost.
69% 72%
a-EBITDA: €129m a-EBITDA: €142m a-EBITDA growth
+10% Reflecting the positive
a-EBITDA(2)
41 46 evolution of the
33% 32%
88 96 operational profitability.
67% 68%
€0.03
Aluminium Copper
DPS
1. Pro forma like-for-like financials
2. a-EBITDA refers to EBITDA excluding effect from Metal Result 9
Financial Highlights H1’19
H1 ‘18 H1 ‘19 H1’18 vs H1’19
Revenue: €1,053m Revenue: €1,081m Revenue
Increase driven by
+3%
Revenue
535 evolution of volumes by
536 545
518 51%
51% 4.1% in the Aluminium
49%
49% segment and 3.2% in the
Copper segment.
EBITDA: €82m EBITDA: €70m EBITDA
30 20 - 14%
EBITDA reduced, as a
EBITDΑ
37% 29%
result of the declining
52 50 metal prices.
63% 71%
a-EBITDA: €68m a-EBITDA: €78m a-EBITDA
+15% Positively affected by the
a-EBITDA
24 25
33% 32% increase of volumes sold
53
44 as well as the
67% 68%
operational profitability.
Aluminium Copper
a-EBITDA refers to EBITDA excluding effect from Metal Result
10Overview of Growth Drivers
The increasing global demand for lighter products in the automotive industry and for more efficient means of electricity/energy
transportation constitute the main growth drivers for aluminium and copper respectively
Climate change initiatives Energy efficiency Lighter products
Efficiency
Decrease
emmisions
Change of energy sources
Increase Decrease
Renewable Coal / Oil Lighter products
natural gas
Aluminium Electric cars
Strong momentum Strong momentum
for aluminium for copper used for
products electricity / energy
transportation
11Overview of Growth Drivers
Global effort for reduction of plastic pollution is leading to increased demand for fully recyclable materials like aluminium.
The aluminum can is by far the most recycled beverage container
by consumers. The closed loop nature of aluminum can recycling,
and the metal’s inherent high value in the recycling stream, drive a
virtuous environmental and economic cycle.
Source: The Aluminium Association 12Strategic Priorities
Capitalizing on market trends and own strengths to accelerate EBITDA growth
Situation Overview / Actions Expected Outcome
Increase Installed Capacity (‘000tn)(1)
Currently operating at full capacity allowing for +20% 350
Aluminium
improving sales/product mix profitability. 293
New €150m investment to boost capacity by 57,000tn
(or c.20% of existing capacity), further improve cost and
quality and lay foundations for further expansion.
2018 2020F
Increase Capacity Utilization(2)
Turnaround of FRP Copper and alloy unit, allowing
double-digit growth rate taking advantage of excess
Copper
capacity and favourable market dynamics.
65%
High capacity utilization for tube plants and market
positioning driving sales mix profitability.
2018 2022F
1. Refers to the main Aluminium FRP plant
2. Refers to Sofia Med’s plant in Bulgaria 13Market Update
Diversified Exposure to Structural Attractive and Growing Markets
Global growth and urbanization with energy efficiency and sector specific trends…
Growth and Urbanisation Energy Efficiency
Accelerating Growth Across Developed and Emerging Economies Key Climate Change Legislation and Targets in EH Geographies
20-fold increase in the number of global climate change laws since 1997
16
Key EU targets for 2020 (Europe 2020 Strategy)
Real GDP Growth, Δ%
12 At least 20% cut in greenhouse gas emissions compared with 1990
8 Increase renewable energy’s share of total consumption to 20%
Move towards a 20% increase in energy efficiency
4
The EU is part of the new global climate agreement (Paris Agreement)
0
agreed in 2015 and due to be implemented from 2020
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020F
2022F
2024F
-4 The EU has committed to a second phase of the Kyoto Protocol running
-8 from 2013 to 2020
Advanced economies European Union Emerging market and developing economies
-12 Aluminium is the cleanest packing material
(1)
Global Working Population (bn) Consumer Recycling Rate for Competing Packaging Types
5,4 60%
5,3 50%
5,3 50%
5,2
5,1 5,1 40%
5,1
26% 29%
5,0 30%
4,9
4,9 20%
4,8
10%
0%
Aluminium Cans Glass Bottle Plastic Bottle
2012 2013 2014 2015 2016 2017 2018 2019F 2020F 2021F 2022F
Source: CRU, IMF 1. Source: The Aluminium Association
15Diversified Exposure to Structural Attractive and Growing Markets
…driving demand growth for aluminium and copper
Increasing GDP leads to demand for Aluminium and Copper, providing an attractive market backdrop for ElvalHalcor
Increasing global working population leads to demand for copper and aluminium through increasing residential construction and household uses such as
plumbing, air conditioning systems and electrical appliances
Higher focus on energy efficiency and fuel efficiency standards is leading to light-weighting of vehicles through the use of aluminium and increasing
demand for hybrid and electric vehicles which have high copper content
Aluminium Demand (mt) Copper Demand (mt)
100 CAGR 30 CAGR
25 25 25 25 25
81 25
76 2.2% 4.0%
23
72 74 3.8%
75 69 4.2%
64
66 1.3%(3) 1.9%
20
2.5% 2.6%
50
3.4% 0.7%
10
25
0 0
2017 2018 2019F 2020F 2021F 2022F 2025F 2017 2018 2019F 2020F 2021F 2022F 2025F
(1) (2) (1) (2)
Asia Americas Europe Middle East & Turkey Others Asia Americas Europe Middle East & Turkey Others
Source: CRU, European Aluminium Association 1. Excluding MEA and Turkey 3. European Aluminium Association estimates an
2. Excluding Russia increase in consumption of 3% per annum for ‘18-’22 16Diversified Exposure to Structural Attractive and Growing Markets
Selling product into diverse end markets that are expected to grow or have limited sensitivity to economic
cycles
European Aluminium European Copper
Product Categories Key Macro Drivers Effect on ElvalHalcor
Market Size (‘000 tn)(1) Market Size (‘000 tn)(1),(2)
23% Increase market share of high margin wide, tension
Manufacturing activity and industrial levelled aluminium sheets and coils for the renewable
Industrial 614 growth in emerging countries energy sector
158 Increased demand for solar panels, wind Long delivery times of competition is giving EH a
Applications turbines, high frequency cables great opportunity having installed the APS and having
2017 2016
made the investments to increase capacity
18% Stable, resilient end markets linked to
population and GDP growth Ability to increase market share, obtain large volumes
Rigid Packaging 227
NA Consumer spending and preferences and secure long term contracts with can-makers
(Food, Beverage) 2017 Recycling rates and regulations
Regulations limiting lead content in
16% Regulatory driven growth in low-lead and lead-free
potable water plumbing fixtures
copper alloys is expected
Building and 547
Population growth – Urbanization
Utilize the painting line’s capacity further so as to
282 Mature region housing recovery
Construction Energy neutral buildings
serve diversified geographical areas (USA, Asia,
2017 Australia)
2016 Environmental legislations
14% Consumer spending
Capture the opportunity to penetrate further the high
Flexible Packaging 864 Take away and prepackaged food
margin blister pharma and inner-liner tobacco sub-
demand
(Food, Pharmac- NA sectors
Industrial production
eutical, Tobacco) 2017
Demand for Strip connectors and Bus bars expected
15%
Substitution of steel from Aluminium due to double in the next 3-5 years
Automotive & 136 to light-weighting of vehicles Increased participation in the automotive sector
Commercial 7
Automobile production by model/car size Competitors are shifting focus towards the
Transportation 134 Fuel efficiency standards automotive sector without increasing their hot mill
Electric vehicle production capacity which creates opportunities for EH to
2017
2016 increase market share in other applications
6% Energy transfer demand will increase in certain
Capital investment
geographical areas
Construction activity
Electronics & 124 48 Industrial production
Demand for connectors will increase
Electrical Further investigate and penetrate a highly promising
Consumer spending
2017 2016
and evolving sector
More alloyed tubes that EH can produce and new
8% Capital Investment
profiles that a few manufacturers can achieve e.g. IGT
Construction activity
133 of 5mm
HVAC & R NA HVAC market is expanding in Europe,
Utilize in house R&D, Elkeme and the JV with UACJ
especially in non-residential buildings
Corp. to penetrate the market with innovative Brazing
2016 and transport
alloys
% of 2018 Production Source: CRU 1. Aluminium and copper market sizes refer to 2017 and 2016 respectively
2. Excludes 203,000 tons of other end markets. Total Copper consumption expected to grow at a CAGR of 17
1.8% between 2017 and 2022Aluminium Segment
Aluminium Segment
State of the art production Fifth largest player 7 plants in Greece, with 89% of turnover in Invested more than
facilities with capabilities to in Europe with 7% annual production sales abroad in €350m in equipment
produce wide coils and long market share capacity exceeding around 100 countries and R&D for capacity
slabs 290,000 tons expansion and quality
Investment plan of improvement during
the last 10 years
€150m expected to
increase capacity by
c.20% by 2020
19Revenue by Segment & Market Share
Revenue breakdown (FY 2018)
By Market (% of tons) By Geographical Segment (% of €)
Greece Other
Rigid Europe
Industrial 12%
Packaging 8%
Applications 28%
17%
America
EU (excl. 14%
Building &
Greece)
Construction
11% 58%
Asia
Transportati 88% outside 7%
on & Greece
Flexible Africa &
packaging Automotive oceania
22% 22% 1%
Market shares
European market Shares (2016)
(2018) 65%
Flat Rolled Aluminium Products Coated Aluminium Aluminium Foil
7%
15% 6%
93% 85% 94%
c.39% Market Share in Food Packaging
c.22% Market Share in Marine Applications Group’s share Other Companies’ share
13% Market Share in Building and Construction
Source: Company estimates, addressable markets
20Main Production Facilities
Rolling Foil Rolling Foil Converting
Oinofyta Oinofyta Mandra
Greece Greece Greece
Flat rolled aluminium products and solutions for: Foil for: Foil for:
• Sea, road and rail transportation • Pharmaceutical packaging • Pharmaceutical packaging
• Food & beverages packaging • Technical applications semi rigid packaging • Flexible packaging
• HVAC • Household aluminium foil semi, etc. • Confectionery, etc.
Capacity: 292,500 tons/year(1) Capacity: 52,000 tons/year Capacity: 26,000 tons/year
Composite Panels Rolling Shutters Coil Coating
St.Thomas Nea Artaki Thiva
Greece Greece Greece
Solutions for a complete range of coated aluminium • Aluminium rolling shutters and doors Aluminium coil and strips coating for architectural
products used in the building envelope • Spacer bars use
• Powder coating
1. Expected to increase by c.20% upon completion of the €150 million investment
21Aluminium - Rolled Products/Markets
Packaging
• Beverage cans
• Food containers
• Closure caps
• Flexible packaging
• Household foil
Shipbuilding
• Patrol vessels
• Catamarans
• Yachts
• Ferries
Commercial
Transportation
• Tipper trucks
• Road silos
• Refrigerator trucks
• Cargo wagons
Automotive
• Internal parts
• Heat exchangers
• Air pressure vessels/ Fuel tanks
• Suspension & brake systems
22Aluminium - Rolled Products/Markets
Industrial
applications
• Lamp base
• Renewable energy
• Multi-layer tubes
• Bus ducts
Domestic
applications
• Cookware
• White goods
Building &
Construction
• Façades
• Roofing
• Rain gutters
• False ceilings
• Roller shutters
• Functional coatings
• Flashings
23Certified Processes and Quality Standards
Quality: certified according to ISO 9001/2015
Environmental management: certified with ISO 14001/2015
Energy management system: certified according ISO 50001/2011
Health and safety management systems: certified according to
Occupational health and Safety management systems: OHSAS
18001/2007
Certified according to IATF 16949
Certifications by all major classification societies
Quality standards according to individual customer requirements
24Copper Segment
Copper Segment
State of the art production European market Products sold in High specifications Strong input in:
facilities for copper and leader in copper tubes around 80 countries output according to
copper alloy products: around the world, • HVAC&R industry
Rapidly rising position customers’ quality
in copper and copper representing 96% of demand • Electrical industry
- Largest tube mills in
EMEA region and alloy RFP segment’s total • Production
among the most turnover engineering
efficient in Europe
- One of the largest
extrusion presses
worldwide
26Revenue by Segment & Market Share
Revenue Breakdown (FY 2018)
By Market (% of tons) By Geographical Segment (% of €)
Buildings & Greece
America
Construction Asia 4% Africa &
6%
25% 6% Oceania
3%
Electronics Other
& Electrical Europe
Industrial 16% 10%
Applications
35%
Automotive & EU (excl.
Commercial Greece)
96% outside
Transportatio 71%
Greece
n HVAC
1% 23%
European Market Shares (2018)
Copper Tubes Extruded Copper and Alloy Products Rolled Copper and Alloy Products
4% 7%
18%
82% 93%
96%
Group’s share Other Companies’ share
Source: Company estimates
27Production Facilities
Tubes Foundry Copper and Brass
Oinofyta Oinofyta Sofia
Greece Greece Bulgaria
Copper tube plant producing: Foundry producing:
Specialises in the production of rolled and
• Copper tubes with or without plastic coating or • Copper billets and slabs extruded copper and copper alloy products
industrial insulation • Copper alloy billets
Capacity: 120,000 tons/year
Capacity: 80,000 tons/year Capacity: 235,000 tons/year
Alloy Bars, Tubes and Wires Coins blanks and Rings Tubes
Gebze
Turkey
Titanium Zinc
Oinofyta Pogoni
Greece Greece
Specialises in the production of extruded Specialises in the production all types of coin
copper alloy blanks and rings Budel
Netherlands
Capacity: 40,000 tons/year Capacity: 2,800 tons/year
1. HC Isitma is a JV in which ElvalHalcor participates by 50%
28Products and Main Applications
Copper tubes
Copper tubes bare, pre-insulated or inner grooved from 4 up to 108 mm for:
Building & Renewable
Construction Energy
• Water supply and Heating networks • Solar panels
• Under floor heating and cooling • Solar system networks
• Air-conditioning • Geothermal heating & cooling
• Refrigeration
• Natural gas
• Medical gas distribution networks
• Fire extinguishing networks
HVAC&R
Industrial
Applications
• Air-conditioning
• Refrigeration • Fittings
• Heat exchangers • High frequency cables
• Boilers
• Filters
• Various industrial applications
29Products and Main Applications
Innovative products - Cusmart®
Copper tubes for: Extruded
• Water supply
• Heating (pre-insulated with PE-X)
Products
• Under floor heating
Cusmart ® provides a complete system along with a wide range of Copper alloy and brass rods,
Compression and Press fittings. bars, sections, tubes, flats, wires for:
Construction, decoration, electrical
Due to combination of high quality plastics with lower wall thickness engineering (electronic control panels,
copper tubes, the replacement cost per ton is lower compared to the valves, batteries etc.), supports for
cost of a pure copper product. gutters.
Produced by Fitco and Sofia Med
Meets the requirements and are certified according to DVGW Vp 652,
ELOT 1425/ 1426 and NSF/ANSI 61.
Rolled
Products
Copper and brass and HP alloys in
sheets, strips, plates for:
Construction (roofing, gutters),
electrical engineering (connectors,
transformers, boilers, etc.), decoration.
Produced by Sofia Med
30Certified Processes and Quality Standards
SPAIN - AENOR GERMANY - GL GERMANY - TUV CERT ROMANIA - AR
Halcor’s capability to produce meets all international RUSSIA - GOST FRANCE - CSTB GERMANY - DVGW FINLAND - VTT
specifications and customer specific requirements, with
the highest standards of QUALITY
Quality: certified according to ISO 9001/2015
Environmental Management: certified with ISO SWEDEN - SITAC USA - NSF FRANCE - AFNOR GERMANY - CU
14001/2015
Energy Management System: certified according ISO
50001/2011
Health and Safety Management Systems: certified
CROATIA - VIK U.K. - BSI SINGAPORE - SETSCO EUROPEAN COM.
according to Οccupational Health and Safety
Management Systems: OHSAS 18001/2007
ALGERIA - GREDEG NETHERLANDS - KIWA
31Financial Information
Sales Evolution(1)
Sales Volumes (‘000tn)
CAGR
2009-2018
Copper Aluminium 6.9%
482 6.5%
448
399 405 418
361 370 372
333 169
135 156
269 135 137
121 125 132 249
113 312
93 283 292
264 268 87 90
241 245 240
220
177 153 159 Cu
Al
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1'19
Steadily increasing sales underline solid and continuous momentum
1. Figures for 2015 and backwards are not based on audited information but management estimates and adjustments in order to present information
on a like-for-like comparable basis, as the consolidation perimeter and the composition of the company and the group was much different
33Key Figures (1)
Solid financial performance driven by top line growth and profitability improvements
Revenue (€m) EBITDA vs Adjusted EBITDA(2) (€m)
Volume
(‘000tn) EBITDA Adjusted EBITDA EBITDA
418 448 482 a-EBITDA
160 165
2,118
142
1,863 125 118 129
1,534
1,081 H1’18 70 78
H1’18 82
H1’18
1,053
68
2016 2017 2018 H1'19
2016 2017 2018 H1'19
Net Income (€m) Net Debt / a-EBITDA
Net Debt
(€m) 544 558
524 527
64
61
(0.9x) change
4,5x
4,1x 3,8x 3,6x
H1’18
24
30 20
2016 2017 2018 H1'19 2016 2017 2018 H1'19
1. Figures for 2016 are pro-forma consolidated included in the audited financial statements
2. Adjusted for aluminium and copper price fluctuations and other non recurring items
34
3. 2019 annualized a-EBITDA based on H1’19Key Figures (1)
Profitability growth supported by both segments
Adjusted EBITDA per Division (€m)
142
129
118
108 46
92 30 42
30 78
23 96 H1’18
87 87 24 25
79
69 44
54
2014 2015 2016 2017 2018 H1'19
Aluminium Copper
Aluminium – Adjusted EBITDA per ton (€/tn) Copper – Adjusted EBITDA per ton (€/tn)
Volume 268 283 292 312 159 Volume 90
264 135 137 135 156 169
(‘000tn) (‘000tn)
337
294 309 298 308
272 274 H1’18 276
262 H1’18 287
285 217 225
167
2014 2015 2016 2017 2018 H1'19 2014 2015 2016 2017 2018 H1'19
1. Figures for 2017 and backwards are not based on audited information but management estimates and
adjustments in order to present information on a like-for-like comparable basis, as the consolidation perimeter 35
and the composition of the company and the group was much differentDeviation analysis in the Consolidated Profit before taxes
Volumes: Reduction of interest rates following the
Al: Δ+7.0% refinancing of debt.
Cu: Δ+8.8%)
4
10 76
Μ€ 24 2
7 5
64 2
Increase of profitability driven by the increase in sales volumes.
2017 Volume effect Variable Metal Result SG&A Other Financial Share of Equity 2018
(1)
Cost & Mix accounted
investees
1. 2017 financial figures are pro-forma comparable
2. Source: Company data 36Evolution of the Consolidated Working Capital
The increase in Payables is following the
Increase in inventory is following the
increased need for inventory, orders for
increased demands of the evolution of
fixed assets for the materialization of the
the Revenues and sales volumes and
investment program as well as the increase
temporarily from other external factors.
+20% of the days of payment.
519
483
453
433
+42%
254
218
199
179
2017
2018
Μ€
Inventory Receivables Payabes Working Capital
Source: Consolidated Financial Statements
37Consolidated Cash Flows
Out of Which 53 Μ€ for the Aluminium rolling
Strong profitability is Reduction of interest division in the context of the 150 Μ€ investment
positively affecting charges following the program and 23 Μ€ for the Copper tubes
Operating cash flows. refinancing of debt on division for the installation of the additional
better terms. capacity of 5 kt.
33
30
Μ€
7
165
90
41
17 34
5
Cash in the EBITDA Interest Working Other Investments Investments Financing Cash at
beginning profitability Capital operational for Capacity for strategic the end of
of the year increase alliances the year
Source: Consolidated Financial Statements and Company estimates
38Consolidated Debt Maturity
FY 2017 FY 2018
Total Loans & Borrowings: Total Loans & Borrowings:
€568 m €578 m
275 384 Refinancing of Debt with a five year
293 48% 66% maturity and reduction of interest
194
52% 34% rates.
Long-term Short-term
275 268
250
2017
194 2018
Μ€
75
39 41
4
Short-term (Capex Evolution(1)
Accelerating capex to support growth momentum
Capex Evolution (€m)
Mainly driven by the €150m in
Aluminium segment
150
23
92
34
56 55 127
9 47 46
42 13
14 8
13
58
47 41
33 38
30
2013 2014 2015 2016 2017 2018 2019F
Aluminium Copper
1. Figures for 2015 and backwards are not based on audited information but management estimates and
adjustments in order to present information on a like-for-like comparable basis, as the consolidation perimeter 40
and the composition of the company and the group was much differentShare Price Performance and Shareholder structure
Shareholder structure - ElvalHalcor Shareholder structure – Cenergy Holdings
Free Float;
8,56% Free Float;
18,07%
Viohalco S.A.;
ElvalHalcor; 56,73%
Viohalco S.A.; 25,20%
91,44%
Share price performance - ElvalHalcor Share price performance – Cenergy Holdings
Symbol: ELHA Symbol: CENER
MCap EUR 692m (as of Sep 10, 2019) MCap EUR 257m (as of Sep 10, 2019)
Num of shares: 375.2m Num of shares: 191.3m
41Income Statement (pro forma)(1)
Profit & Loss Statement Reconciliation of a-EBITDA (Financial Statements)
Amounts in € million 2016 2017 2018 Amounts in € million 2016 2017 2018
Revenue 1,534.1 1,863.3 2,117.8 EBITDA 124.7 160.5 165.2
Aluminium Segment 842.7 941.5 1,079.0 + Loss / (Profit) from Metal (6.6) (33.1) (23.0)
Copper Segment 691.4 921.8 1,038.8
+ Restructuring Costs - 0.2 -
Cost of Sales (1,420.1) (1,706.4) (1,950.8)
+ Loss / (Profit) from Revaluation of Fixed Assets - 1.9 -
Gross Profit 114.1 156.9 166.9
Adjusted EBITDA 118.0 129.4 142.1
Gross Profit Margin (%) 7.43% 8.42% 7.88%
As % of Revenue 7.7% 6.9% 6.7%
Other Income 13.7 14.8 14.1
Selling and Distribution expenses (19.6) (19.8) (22.0)
Administrative expenses (31.2) (37.7) (42.9)
Other Expenses (8.4) (12.2) (9.1)
Operating profit / (loss) 68.5 102.0 107.0
Aluminium Segment 48.9 67.2 77.0
Copper Segment 19.6 34.7 30.1
Finance Income 4.0 0.1 0.1
Finance Costs (40.4) (36.9) (32.3)
Dividends 0.0 0.0 0.0
Net Finance Income / (Costs) (36.4) (36.8) (32.2)
Share of profit/ (loss) of equity-
0.2 (1.3) 1.0
accounted investees
Profit/(Loss) Before Income Tax 32.3 63.9 75.8
Income Tax (8.7) (2.6) (11.5)
Profit/(Loss) from Continued
23.5 61.3 64.3
Operations
EBITDA Calculation
Depreciation 58.2 60.4 60.1
Grant Depreciation (2.0) (1.9) (2.0)
EBITDA 124.7 160.5 165.2
As % of Revenue 8.1% 8.6% 7.8%
1. Figures for 2017 and 2016 are based on pro-forma consolidation which is included in the audited financial
statements 42Income Statement for the six months
Profit & Loss Statement Reconciliation of a-EBITDA (Financial Statements)
Amounts in € million H1’18 H1’19 Amounts in € million H1’ 18 H1’19
Revenue 1,053.2 1,081.0 EBITDA 82.5 70.1
Aluminium Segment 518.2 535.9 + Loss / (Profit) from Metal (13.8) 8.3
Copper Segment 535.0 545.1
Adjusted EBITDA 68.7 78.5
Cost of Sales (969.7) (1,005.0)
As % of Revenue 6.5% 7.3%
Gross Profit 83.5 76.0
Gross Profit Margin (%) 7.9% 7.0%
Other Income 7.1 5.6
Selling and Distribution expenses (10.4) (11.0)
Administrative expenses (22.9) (23.2)
Impairment of Financial Assets (0.2) 0.1
Other Expenses (5.4) (5.3)
Operating profit / (loss) 51.7 42.3
Aluminium Segment 30.1 30.9
Copper Segment 21.7 11.4
Finance Income 0.1 0.1
Finance Costs (17.4) (13.3)
Dividends 0.0 0.0
Net Finance Income / (Costs) (17.3) (13.2)
Share of profit/ (loss) of equity-
(1.2) 2.4
accounted investees
Profit/(Loss) Before Income Tax 33.1 31.5
Income Tax (3.6) (11.6)
Profit/(Loss) from Continued
29.5 19.9
Operations
EBITDA Calculation
Depreciation 31.8 28.8
Grant Depreciation (1.0) (0.9)
EBITDA 82.5 70.1
As % of Revenue 7.8% 6.5%
43Balance Sheet
Balance Sheet
Amounts in € million Dec-17 H1’ 18 Dec- 18 H1’19
Non-current Assets
Property, Plant and
687.5 699.5 720.6 767.9
Equipment
Intangible Assets and Balance Sheet Highlights
74.5 74.1 76.5 76.8
Goodwill Amounts in € million Dec-17 H1’18 Dec-18 H1’19
Investment Property 7.1 7.0 6.8 8.4
(i) Working Capital
Investments in Associates 64.2 79.1 82.8 84.6
Inventories 433.5 530.2 519.2 512.9
Other Non-current Assets 8.9 8.4 8.2 5.6
Trade and Other Receivables 199.0 264.0 218.3 261.3
Current Assets
Trade and Other Payables (179.2) (335.0) (253.7) (307.3)
Inventories 433.5 530.2 519.2 512.9
453.4 459.2 483.8 466.9
Trade and Other Receivables 199.0 264.0 218.3 261.3
Cash and Cash Equivalents 41.4 69.1 34.2 31.3
Other Current Assets 9.2 9.3 7.9 9.2 (ii) Net Debt
Total Assets 1,525.4 1,740.4 1,674.5 1,758.1
Loans and Borrowings 552.0 580.1 564.1 568.0
Equity Financial Lease Obligations 16.3 15.3 13.8 21.6
Share Capital 211.4 211.4 211.4 211.4 Cash and Cash Equivalents (41.4) (69.1) (34.2) (31.3)
Other Reserves 282.3 283.2 281.1 284.7
526.8 526.3 543.7 558.3
Retained Earnings/(Losses) 161.8 189.9 224.3 229.6
Non-controlling Interest 12.9 13.3 13.7 14.0
Total Equity 668.4 697.8 730.5 739.7
(iii) Other BS Items
Non-current Liabilities Property, Plant and Equipment 687.5 699.5 720.6 767.9
Loans and Borrowings 278.9 330.0 372.9 372.7 Investments in Viohalco Associates 64.2 79.1 82.8 84,6
Financial Lease Obligations 14.0 12.8 11.5 17.2 Other Assets 99.8 98.8 99.2 100.00
Deferred Tax Liabilities 61.8 63.9 58.0 58.1
Deferred Tax Liabilities (61.8) (63.9) (58.0) (58.1)
Other Non Current Liabilities 38.0 37.2 36.7 35.7
Other Liabilities (47.8) (48.4) (54.3) (63.3)
Current Liabilities
741.9 765.1 790.4 831.1
Trade and Other Payables 179.2 335.0 253.7 307.3
Loans and Borrowings 273.0 250.1 191.2 195.3
Financial Lease Obligations 2.3 2.5 2.3 4.4 (i)-(ii)+(iii) Net Asset Value 668.4 697.8 730.5 739.7
Other Current Liabilities 9.8 11.2 17.7 27.6
Total Liabilities 857.0 598.8 944.0 1,018.4
Total Equity & Liabilities 1,525.4 1,740.4 1,674.5 1,758.1
44Appendix I. - Company History
Corporate Restructuring
Merger
Aluminium Perimeter
Copper
Leading aluminium rolling manufacturer globally Leading copper industry that specializes in the production,
processing and marketing of copper and copper alloy products
Dynamic commercial presence in European and global
markets with established commercial network across 21 Largest copper tubes producer in Europe with dynamic
countries commercial presence in European and global markets
Offers innovative solutions for packaging, Offers innovative solutions in the fields of plumbing,
transportation, energy, building & construction and HVAC&R, renewable energy, engineering and industrial
industrial applications for more than 50 years production for more than 80 years
Exports c.89% of its production to around 100 Exports c.96% of its production to around 80 countries
countries
Operates seven production plants in Greece, Bulgaria,Turkey
Operates seven cutting edge production facilities in and the Netherlands with total annual capacity of 235,000tn
Greece, with total annual capacity of over 280,000tn (excl. foundry products)
Merger Rationale
1 2 3
Sizeable
Financial strength Integrated production facilities Extended marketing coverage
4 5 6
Procurement Technology Improved
and cost efficiency synergies and R&D pooling of resources environmental footprint
46History Overview
2017
• Cross-border merger by absorption of the Greece-based Elval • Gains leading position among European copper tubes manufacturers.
Holdings, Alcomet, Diatour and the Luxembourg-based Eufina by • Signing of cooperation agreement between Sofia Med and Dowa
Viohalco 2016 2016
Metaltech for know-how and technology transfer
• Establishment of a JV company with UACJ in Germany for selling 2015 2015 • Set up of Reynolds Cuivre via the acquisition of Reynold’s copper
heat exchanger materials produced by Elval segment’s commercial and distribution network in France
• Establishment of HC Isitma in cooperation with Turkish company Cantas
• Increase of production capacity for 9m-long slabs and installation 2013
of the second Green melt furnace for aluminium recycling 2014 • Awarded “Best suppliers for 2014” by Daikin Europe
• Increase of Oinofyta plant’s production capacity to 240,000 tons
2010 Launch of new investment plan by Sofia Med aiming to strengthen its
following completion of an extensive investment plan 2012 •
production of value-added products
• Installation of the first Green melt furnace for aluminium recycling 2009
2010 • Completion of its 10-year extensive investment plan, which increased
• Installation of new melting-cast house unit for production of 9m- Halcor’s competitiveness and production base
2003
long slabs in the Elval plant, Oinofyta
2005 • Halcor’s plant in Athens initiates the manufacturing of titan-zinc
• Installation of 2.5m-wide 6-Hi cold rolling mill 2001 rolled products
• Production of copper and brass rolled products was fully transferred
1996 to Sofia Med
• Listing on the Athens Stock Exchange
2000 • Through its subsidiary Sofia Med, Halcor purchased the fixed assets of
• Installation of new single stand 2.5m-wide hot rolling mill 1993
KOZM and commenced operations of its production plant in Sofia
• Incorporation of Elval and absorption of Viohalco’s aluminium 1997 • Listing of Halcor on the Athens Stock Exchange
segment 1973
• Viohalco commenced activities on Copper
• Viohalco commenced activities on Aluminium 1965 1937 • Commencement of production in Viohalco’s industrial plants in
Tavros (Athens)
47Appendix II. - Sustainable Development Policy
Sustainable Development Strategy
Constantly strengthen our leading position in the aluminium and copper industries by pursuing a corporate
strategy that promotes social responsibility and environmental protection
Sustainable Development Pillars
Responsible business development
Care for society and our people Environmental protection
Focus on quality and technological
advancement across all production
processes
Humanistic philosophy Responsibility for the environment
Continuous investment on production
Occupational health and safety facilities and R&D Applying responsible environmental
practices and taking preventive actions
Supporting local communities Provision of innovative products and
solutions Continuous improvement of our
environmental footprint
Dynamic commercial activity and strong
presence in markets with growth
potential
Customer-centric approach aimed at
strengthening customer relationships
49Sustainable Development Culture
Track record highlighting values and sustainable development culture
Aluminium recycling and State of the art Automated and
educational programs at industrial wastewater on-line environmental
Canal (Aluminium Can treatment for the parameter monitoring
Recycling Centre) Oinofyta plants (ZLD)
Rolling oil Safe aluminium recycling Use of air pollution Closed circuit
regeneration and with modern and energy abatement equipment degreasing system at
extrusion efficient delacquering tubes plant
furnaces
50Disclaimer
This presentation was prepared by ElvalHalcor S.A. (hereinafter referred as the «Company»). The information contained in the presentation has not been independently verified
and no guarantee or expression, is made or implied with respect to the fairness, accuracy, completeness, reasonableness or correctness of the information and opinions contained
herein. This presentation includes forward looking statements and future estimates which are susceptible to specific risks, uncertainties and other factors that could cause
significant deviation to the actual operational and financial results, economic condition, liquidity, performance, prospects and opportunities of the Company, such as but not
limited to:
–Competition
–Legislative and regulatory developments
–Global, macroeconomic and political trends
–Fluctuations in financial market conditions
–Delay or inability in obtaining approvals from authorities
–Technical development
–Litigation
–Adverse publicity and news coverage
The Company provides no assurance that the expectations will be fulfilled.
This presentation also includes information from other sources and third parties that has not been independently verified by the Company.
The information contained in the presentation can be subject to renewal, additions, revision and modification and this information might change significantly. The Company
assumes no obligation to update the information contained herein and the relative expressed comments. All the aforementioned are subject to change without notice.
The Company, its shareholders’ or any of the related parties, such as but not limited to: staff, consultants or representatives will have no liability for any loss incurred in any way or
by any use of this text or the contents which arise by it.
This presentation is not a part to any contract, agreement or obligation and cannot be used as such.
By attending this presentation, you agree upon complying with the aforementioned conditions and limitations.
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