Alro reported an adjusted net profit* of RON 64 million, in a high volatility market

Financial highlights (separate and consolidated figures)

Alro S.A.

• Turnover of RON 1.1 billion, compared to RON 1.2 billion, in H1 2015
• EBITDA of RON 118 million, compared to RON 214 million, in H1 2015
• Adjusted net profit* of RON 64 million, compared to RON 113 million, in H1 2015
• Primary aluminium production of 137,883 tonnes, compared to 134,760 tonnes, in H1 2015
• Processed aluminium production of 41,553 tonnes, compared to 40,079 tonnes, in H1 2015

Alro Group

• Turnover of RON 1.2 billion, compared to 1.28 billion, in H1 2015
• EBITDA of RON 137 million, compared to RON 248 million, in the similar period of 2015
• Adjusted net profit* of RON 56 million, compared to RON 136 million, in H1 2015
• Primary aluminium production of 137,883 tonnes, compared to 134,760 tonnes, in H1 2015
• Processed aluminium production of 54,008 tonnes, compared to 51,604 tonnes, in H1 2015

Slatina, 12 August 2016 – Alro S.A. (BSE: ALR, “the Company” or “Alro”), the largest aluminium producer in Continental Europe (excluding Russia and Scandinavia), today announces its financial results for the six months ended 30 June 2016.

In the first half of this year (H1), Alro registered a turnover of RON 1.1 billion lower as compared to the level registered in H1 2015, when it stood at RON 1.2 billion. The Company reported an adjusted net profit* of RON 64 million, compared to RON 113 million, in H1 2015, while the net profit decreased to RON 39 million, in H1 2016, from RON 68 million, level reached in H1 2015. In its turn, Alro Group registered sales of RON 1.2 billion, in the first six months of 2016, a lower level compared to RON 1.28 billion registered in H1 2015. The adjusted net profit* for Alro Group stood at RON 56 million, for the same period, compared to RON 136 million, in H1 2015, while the net profit for H1 2016 was of RON 35 million, compared to RON 84 million in the similar period of 2015. These results were mainly influenced by the level of LME that stood in H1 2016 at an average of 1,544 USD/tonne, compared to 1,783 USD/tonne, in H1 2015.

„Alro managed to obtain positive results in H1 2016, despite the pricing pressure coming from an LME below 1,600 USD/ tonne combined with lower conversion premiums” said Marian Nastase, President of Alro’s Board. “Our strategy implemented during the past years drove us in the right direction and for the first half of 2016 we succeeded to obtain better levels of our output in term of quantities, while reducing the overall costs and increasing the efficiency of our processes. These positive results motivate us to further seek new opportunities to drive productivity, while expanding our products portfolio and improving our offers to our customers. We will continue to closely monitor the costs of our inputs and the consumption rates, as well as the evolution of the markets, to be able to take timely the most beneficial decisions for the Company and for our employees”.

The aluminium sales increased in volume, both in the primary and in the processed segments, Alro registering a total of 79,533 tonnes of primary aluminium sold in H1 2016, up by almost 10,900 tonnes compared to the similar period of 2015. The processed aluminium sales reached almost 42,000 tones in the first six months of 2016, compared to 39,629 tonnes, in H1 2015. As aluminium sales increased, Alro adjusted its production and recorded higher production volumes. The primary aluminium production reached almost 138,000 tonnes, up from the 134,760 tonnes in H1 2015. The Company increased the processed aluminium production by 2,000 tonnes, as well.

In the first half of 2016, Alro continued its investments programme focused on increasing energy efficiency and on increasing competitiveness and products quality. The investment program for 2016 stands at USD 53 million and it includes the increase of scrap processing capacity of Eco Cast House, to reach a capacity of 90,000 tonnes per year, up from 60,000 tonnes/year. In addition to the energy efficiency investment, in 2016 Alro continues to invest in expanding clients portfolio by increasing the production capacity of the Processed Aluminium Division (heat treated plates, cladded products), as well as ensuring the continuity and safety of its operations.

The Company continued its long-term programme to support professional trainings for its employees and also for pupils and students from vocational educational institutions. Alro has partnerships with the Technical Metallurgical High School from Slatina for specialized practice, with the University Politehnica of Bucharest, Transilvania University of Brasov and University of Craiova.

Further information related to Alro’s financial results, may be found in the Company’s Half Year Report, available on Alro’s web-site, in the Investor Relations section: http://www.alro.ro/en/reports                                        

EBITDA: earnings before interest, taxes, depreciation, amortization and impairment

*Adjusted Net Result: Company’s net result plus/(minus) non-current assets impairment, plus/(minus) the loss/(gain) from derivative financial instruments that do not qualify for hedge accounting, plus/(minus) deferred tax.

The figures for Alro S.A. included in this press release represent the Company’s financial results, reported in accordance with the Order of the Ministry of Finance no. 1286/2012 with the updated amendments, which is in accordance with IFRS, as adopted by the European Union, except for IAS 21 The effects of changes in foreign exchange rates.

For further information please contact:

www.alro.ro

Notes to the Editors:

Alro S.A.

Alro is subsidiary of Vimetco N.V., a global, vertically-integrated primary and processed aluminium producer. Alro is the largest aluminium producer in Continental Europe (except for Russia and Scandinavia) with an installed production capacity of 265,000 tonnes per year.

The main markets for the aluminium manufactured by Alro are within the European Union (Germany, Hungary, Poland, Greece and Romania). Alro also exports to the United States of America and Asia. Alro is ISO 9001 certified for quality management and has NADCAP and EN 9100 certificates for aerospace production organizations, as well as ISO TS 16949 for auto industry production and Alro’s products adhere to the quality standards for primary aluminium on the London Metal Exchange (LME), as well as to the international standards for flat rolled products.

Alro Group

The companies that are part of Alro Group are: Alro - the aluminium producer, Alum - the alumina producer, Sierra Mineral Holdings I, Ltd. - the bauxite producer, Vimetco Extrusion - the extrusion products processor, Conef, Global Aluminium Ltd. and Bauxite Marketing Ltd. Having this structure, the Group created an integrated production chain, assuring the raw materials for Alro.

The contents of the website www.alro.roare not incorporated into, and do not form part of, this announcement.