Viohalco S A : Financial results for the six month period ended 30 June 2017

FINANCIAL RESULTS

FOR THE 6 MONTH PERIOD ENDED

30 JUNE 2017

REGULATED INFORMATION INSIDE INFORMATION

KEY CONSOLIDATED FINANCIAL DATA

PRESS RELEASE OF VIOHALCO SA Brussels, 29 September 2017

The enclosed information constitutes regulated information as defined by the Law of 2 August 2002 and the Royal Decree of 14 November 2007 on the obligations of issuers of financial instruments admitted to trading on a regulated market.

Viohalco SA (Euronext Brussels, Athens Stock Exchange: VIO), hereafter "Viohalco" or "the Company", today issues its consolidated financial results for the six months ended 30 June 2017.

Key highlights

Financial highlights

• Consolidated revenue of EUR 1,836 million in H1 2017, a 21% increase year-on-year mainly due to higher sales volumes in the aluminium, copper and steel segments, as well as higher metal prices;

• EBITDA* up by 45% year-on-year to EUR 170 million, and a 22% increase in adjusted EBITDA* year-on-year to EUR 143 million;

• EBIT* up by 84% to EUR 103 million while adjusted EBIT* up by 35% year-on-year to EUR 76 million;

• Profit before income tax up to EUR 47 million, compared to EUR 11 million in H1 2016, mainly driven by improved performance in the aluminium, copper and steel segments;

• Profit for the period of EUR 30 million, compared to EUR 2 million in H1 2016;

• Net debt*: EUR 1,579 million versus EUR 1,527 million as at 31 December 2016, mainly due to a EUR 52 million decrease in cash and cash equivalents.

* EBITDA, EBIT, adjusted EBITDA, adjusted EBIT, and net debt are considered Alternative Performance Measures (APMs). For definitions and further information please refer to the section in APMs.

Operational highlights

Aluminium	On 19 July 2017, Viohalco announced a decision by the Boards of Directors of its subsidiaries Halcor Metal Works S.A. and Elval Hellenic Aluminium Industry S.A. to initiate preparation for a merger through absorption of non- listed Elval by Athens StockExchange-listed Halcor. This merger will result in the formation of a substantial export-focused industrial and financial entity in the non-ferrous metals processing sector, which will be listed on the Athens Stock Exchange. The broader business footprint of this larger, newly formed company will facilitate access to financial markets and benefit from synergies and economies of scale. Halcor estimates that the planned merger shall be completed, at the latest, by December 31, 2017. The completion of the merger is subject to all necessary, by Law, decisions and approvals.
Copper
Cables	Hellenic Cables and Fulgor continued to execute significant contracts awarded by TenneT for offshore wind farm export cable connections, and by Danish TSO Energinet.dk, to provide cable connection between Denmark and Sweden and replace overhead lines within Denmark. A contract for cable interconnection of an offshore wind farm in the United

Kingdom was concluded in April 2017. Fulgor was awarded a turnkey contract by Enel Green Power Hellas to provide a submarine cable interconnection to the Greek National Grid of the Kafireas wind complex located at Karystos, Evia, Greece. Hellenic Cables will supply significant quantities of high and medium voltage land cables for the onshore part of the project.
Steel	The revamping of the Dojran Steel rolling mill reached the final stage of its testing period and is expected to be fully operational by the end of the fiscal year. All steel production plants increased utilisation.
Steel pipes	Corinth Pipeworks was awarded two projects to deliver steel pipes for the construction off-shore pipelines in the East Mediterranean area. Execution of these projects has commenced.
Real estate	In H1 2017, retail turnover at the River West|IKEA Shopping Centre increased by 8% year-on-year. Advanced discussions with an international retailer are underway for a 900 sqm anchor store. This store will be located within the additional 1,200 sqm of high value retail space created from the conversion of part of the underground car park. To accommodate further expansion plans, an adjacent 3,700 sqm site has been purchased, and a long-term lease secured at an additional adjacent plot. High tenant demand, driven by increased tenant turnover and monthly footfall, has resulted in the lease of an additional 200 sqm of retail space in the Mare West Retail Park (launched in September 2015). To further capitalise on these positive trends, negotiations with well-established retailers are currently underway. Performance of the Wyndham Grand Athens Hotel on Karaiskaki Square has exceeded the tenant's expectations during the period. Advanced discussions are currently underway regarding the leasing of both the building on Agiou Konstantinou str. and part of the Kifissias Ave office complex. Noval's reorganisation remains on track. On 19 June 2017, the Company applied to the Hellenic Capital Market Commission for approval to establish a Real Estate Investment Company (REIC).
Recycling	Completion of the End-of-Life cables recycling project awarded by Cosmote late in 2016 The number of active municipal contracts increased to 20. An aluminum composite panels recycling line was installed. Hazardous waste management contracts with steelmaking plants for steel dust recovery continued to be executed.

Financial review

Viohalco companies recorded a significant increase in revenue and profitability in H1 2017. This performance was delivered despite only modest global economic growth and continued volatility in Viohalco's operating environment caused by competition in the steel industry, delays in and lower volumes of cable projects, and further delays in steel pipe projects globally due to low oil and gas prices.