ALRO registered a consolidated net profit of RON 125 million in Q1 2018

Financial and operational information:

• Net profit of RON 125 million in Q1 2018, compared to a net profit of RON 90 million, in Q1 2017

• Turnover of RON 749 million in Q1 2018, compared to RON 681 million, in Q1 2017

• Operating result (EBIT) of RON 101 million in Q1 2018, compared to RON 119 million, in Q1 2017

• Primary aluminium sales of 33,000 tonnes in Q1 2018, compared to 31,000 tonnes, in Q1 2017

• Processed aluminium sales of 27,000 tonnes in Q1 2018, compared to 29,000 tonnes, in Q1 2017

Slatina, 15 May 2018 – ALRO S.A. (BVB: ALR, “the Company” or “ALRO”), one of the largest vertically integrated aluminium producers, by capacity in Europe, announces today its consolidated financial results for the first quarter of 2018. ALRO Group registered a net profit of RON 125 million, in Q1 2018, compared to a net profit of RON 90 million, in Q1 2017. The Group's turnover increased in Q1 2018 to RON 749 million, compared RON 681 million, in Q1 2017.

"In the first quarter of 2018 we continued to implement our strong investment programme aimed at improving the output and products’ quality, while reducing the overall consumption rates",said Marian Năstase, Chairman of the Board of Directors of ALRO. "While we acknowledged the significant improvement of aluminium quotation and its positive impact on our financial results, we need to take all the necessary measures to maintain our organization as lean as possible. This strategy helped us when the LME registered major drops and also brings us significant added value for all our stakeholders each time the market prices increase".

In Q1 2018, the international aluminium market continued the trend registered in the second half of 2017 and aluminium quotation and demand grew significantly, with the LME average quotation being of 2,159 USD /tonne, as compared to 1,851 USD /tonne, in Q1 2017.

ALRO Group continued its focus of supplying high and very high value-added products in both the primary and the processed aluminium segments. As a result of an improved aluminium market, total sales reached RON 749 million (USD 198 million) in Q1 2018, compared RON 681 million (USD 180 million), in Q1 2017.

The Group pursued its long-term development strategy, investing in Q1 2018 about RON 41 million in new technology and processes aimed at increasing the overall efficiency. Thus, it focused on research projects for high qualification industrial applications, on improving the aluminium hydroxide technology, which are co-financed by the European Fund for Regional Development, by the Competitiveness Operational Program 2014-2020 and on replacement of some of the existing equipment in order to sustain the level of the budgeted production.

The development strategy implemented at the Group’s level proved to be successful, with all companies of ALRO Group recording profits last year. On 27 April 2018, ALRO informed its shareholders and investors about the distribution of dividends for the financial year 2017, when a gross dividend amounting to 0.53523 RON/share was approved for the benefit of ALRO’s shareholders.

These financial results are available in a separate document on the Company's website, Investor Relations category, Financial Reports section: http://www.alro.ro/en/reports.  

Figures for ALRO Group included in this press release are reported in accordance with IAS 34 Interim financial reporting as adopted by the European Union.

For further information, please contact:

www.alro.ro

Florența Ghiță

Bucharest

Phone: +40 744 644 004

Email: investor.relations@alro.ro

Notes to the Editors:

ALRO

ALRO is subsidiary of Vimetco N.V., a global, vertically-integrated primary and processed aluminium producer. ALRO is one of the largest vertically integrated aluminium producers, by capacity in Europe, having an installed production capacity of 265,000 tonnes per year.

The main markets for ALRO products is represented by the European Union; the Company exports its products to the USA and Asia, as well. ALRO is ISO 9001 certified for quality management and has NADCAP and EN 9100 certificates for aerospace production organizations, ALRO’s products adhere to the quality standards for primary aluminium on the LME, as well as international standards for flat rolled products.

ALRO Group

The companies part of ALRO Group are: ALRO – the aluminium producer, Alum S.A. – the alumina producer, Sierra Mineral Holdings I, Ltd. – the bauxite mining company, Vimetco Extrusion S.R.L. – extrusion processing business line, Conef S.A. – ALRO share portfolio management, Global Aluminium Ltd. – holding entity and Bauxite Marketing Ltd. Having this structure, the Group created an integrated production chain, assuring the raw materials for ALRO.