Alro registered a net profit of RON 67 million, in 2016

Alro Group

• Net profit of RON 71.5 million, in 2016, from a net loss of RON 18 thousand, in 2015
• EBITDA of RON 292 million, in 2016, compared to RON 306 million, in 2015
• Adjusted net profit of RON 100 million, in 2016, from RON 77 million, in 2015
• Turnover of RON 2.3 billion, in 2016, compared to RON 2.4 billion, in 2015

Alro S.A.

• Net profit of RON 67 million, in 2016, from a net loss of RON 24 million, in 2015
• EBITDA of RON 247 million, in 2016, compared to RON 224 million, in 2015
• Adjusted net profit of RON 101 million, in 2016, from RON 45 million, in 2015
• Turnover of RON 2.1 billion, in 2016, compared to RON 2.3 billion, in 2015
• Primary aluminium sales of 154,000 tonnes, in 2016, compared to 145,000 tonnes, in 2015
• Processed aluminium sales of 77,000 tonnes, in 2016, a similar level compared to 2015

Slatina, March 28th 2017 – Alro S.A. (BSE: ALR, “the Company” or “Alro”), the largest aluminium producer in Continental Europe (excluding Russia and Scandinavia), registered a net profit of RON 67 million, in 2016, compared to a net loss of RON 24 million, in 2015. The adjusted net profit* was of RON 101 million, in 2016, compared to RON 45 million, in 2015. The Company’s turnover registered a slight decrease to RON 2.1 billion, from RON 2.3 billion, in the previous year.

„Even if 2016 was a year marked by an unstable macroeconomic climate and lower aluminium prices at international level, it was an important year in Alro’s history, being the first year with a profit after four consecutive years of losses” said Marian Nastase, President of the Board of Alro. “The successful finalization of the European Commission’s investigation in respect of Alro’s contracts signed with the electricity producer Hidroelectrica and the implementation of the exemption scheme for the big electricity consumers from paying a percentage of 85% of the green certificates mandatory quota, contributed as well to the Company’s sustainable growth. We will continue to increase our investments in production capacities, in projects of environmental protection, of energy efficiency, but also in projects of research and development that will help us provide our customers with high quality products and compliant with the most sophisticated technological requirements”.

In 2016, the international aluminium market registered a quotation decrease, the average LME price reaching USD 1,605/tonne, compared to USD 1,661/tonne, in 2015. The investments done by the Company over the past years to increase the efficiency of the operations and the capacity of the recycling unit, as well as to expand the products portfolio, continued in 2016 as well, and helped Alro maintain its competiveness on the international markets.

At the same time, this year’s results reflect Alro’s efforts to focus on the high value added products and on cost reduction by optimizing the production processes and also by renegotiating more favourable conditions for the contracts signed with our suppliers. Thus Alro reported a net profit of RON 67 million and a level of EBITDA of RON 247 million (compared to a loss of RON 24 million, respectively a level of EBITDA of RON 224 million in 2015).

In respect of Alro Group, the net profit was RON 71.5 million, compared to a loss of RON 18 thousand in 2015. The Group reported in 2016 consolidated sales of more than RON 2,3 billion down from sales of more than RON 2,4 billion, in 2015. The Group’s adjusted net profit for 2016 was RON 100 million, compared to RON 77 million recorded in 2015. The operational results were constant in 2016, with EBITDA margin reaching 12.7%, compared to 12.6%, in 2015.

An additional recognition of Company’s products quality is the fact that in 2016, Airbus, the leading aircraft manufacturer selected Alro as a supplier of aluminium. The agreement is for a multi-year period, starting 2017. Under the terms of the contract, Alro will supply Aluminium Flat Rolled Products for aircraft manufacturing.

The financial results are available in a separate document on the website of Alro S.A.: www.alro.ro, ”Investor Relations”, section ”Financial reports”.

* Adjusted Net Result represents the 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 Group and Alro S.A. included in this press release represent the Company’s yearly financial results, reported in accordance with the Order of the Ministry of Finance no. 2844/2016 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 is subsidiary of Vimetco N.V., a global, vertically-integrated primary and processed aluminium producer. Alro is the largest aluminium producer in Continental Europe (excluding Russia and Scandinavia), having an installed production capacity of 265,000 tonnes per year.

The main markets for the products manufactured by Alro are within the EU (Germany, Hungary, Poland, Greece and Romania). Alro also exports to the USA and Asia. Alro is ISO 9001 certified for quality management and has NADCAP as well as 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 Tulcea – the alumina producer, Siera Mineral Holdings I, Ltd. – the bauxite producer, Vimetco Extrusion – 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.