Alro reported an adjusted net profit of RON 41 million* in Q1 2016

Financial and operational highlights

• Turnover of RON 564 million, compared to RON 598 million in Q1 2015
• EBIT of RON 23 million, compared to RON 96 million in Q1 2015
• Primary aluminium production of 68,000 tonnes, from 66,300 tonnes in Q1 2015
• Processed aluminium production of 19,900 tonnes, from 20,900 tonnes in Q1 2015

Slatina, 16 May 2016 – Alro SA (BSE: ALR, “The Company” or “Alro”), the largest aluminium producers in Continental Europe (except for Russia and Scandinavia), today announces its financial results, for three months ended on 31 March 2016.

Alro registered an adjusted net profit* of RON 41 million, compared to RON 23 million in Q1 2015. The Company’s turnover was of RON 564 million, from RON 598 million in the similar period of 2015.

“The financial results for the first quarter demonstrate once again that the aluminium market is volatile and only strong investment programmes such as the ones we implement can help us maintain our position at local and global level”,said Marian Nastase, President of Alro’s Board of Directors. “The beginning of this year was characterized by a significant decrease on the international markets, as well as of the selling margins, with impact on the turnover of the Company that decreased compared to last year. This decrease in quotations was, partially, compensated by the sales of high added value products, which were bigger in volume, as well as by the depreciation of the Romanian leu in Q1 2016, compared to Q1 2015. Thus, despite the difficult market conditions, Alro registers operational profit and generates positive cash flow from operational activity”.

During the analysed period, Alro increased its sales of aluminium, both in primary, and in the processed sector. In primary aluminium sector, Alro registered higher sales by 23%, mostly as a result of higher shipments for wire rod and billets that were up 4,500 tonnes, and 2,500 tonnes respectively. For processed aluminium, the Company registered sales up by 4%, as a result of higher shipments for thin sheets and coils that were up 1,000 tonnes compared to Q1 2015.

In spite of the higher shipments, the Company registered a lower EBIT that stood at RON 23 million, in Q1 2016, from RON 96 million, in Q1 2015, as a result of lower spot aluminium quotations on the London Metal Exchange (LME), from an average of 1,800 USD/tonne in Q1 2015, to an average of 1,500 USD/tonne during the first quarter of this year.

On the other hand, Alro’s net profit increased from RON 6 million, in Q1 2015, to RON 27 million, in T1 2016, a significant impact having the exchange differences related to the re-evaluation of the foreign currency denominated loans.

Despite the market volatility, Alro continues its long-term strategy, focusing, in 2016 as well, on the increase of the capacity and output of higher added value products, as well as on the decrease of its energetic dependency through the cut-down in consumption and upgrade of the recycling of aluminium. The Company budgeted investments of USD 53 million, for 2016, most of the financing being already ensured.

Alro’s financial results are available in a separate document on Alro’s website: www.alro.ro

*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.

Given the significant impact generated by the mark to market of the derivative financial instruments that do not qualify for hedge accounting, starting with the first quarter of 2013, Alro’s management considers the Adjusted Net Result as a more relevant indicator for the financial performance of the Company.

The figures for Alro S.A. included in this press release represent the quarterly financial results and are reported in accordance with the Minister of Finance Order no. 1286/2012 as amended, which is in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, with the exception of IAS 21 The Effects of Changes in foreign exchange rates on the functional currency.

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 (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 (Hungary, Poland, Greece, Germany 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. Alro’s products adhere to the quality standards for primary aluminium on the London Metal Exchange (LME), as well as international standards for flat rolled products.

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