30th October 2014 Alumetal Group Q3 2014 financial results.

30th October 2014

Alumetal Group

Q3 2014 financial results

Q3 2014 and LTM at glance

Volume sales – 37k tons in Q3 2014 and 151k tons in LTM

Adjusted EBITDA – PLN 20 mn in Q3 2014 and PLN 85 mn in LTM

Adjusted net profit – PLN 14 mn in Q3 2014 and PLN 62 mn in LTM

Low net debt due to improved EBITDA, low capex and low effecitve CIT rate

Motor vehicle registrations in the EU in thou. units

2006 2007 2008 2009 2010 2011 2012 2013 LTM 10,000

11,000

12,000

13,000

14,000

15,000

16,000

17,000

18,000

19,000

15,387 15,530

14,309 14,132 13,343 13,130

12,054 11,851 12,400

2,743 2,990

2,451

1,642

1,761 1,935

1,695 1,712

1,830

CVPC

In Q3 2014 sales of motor vehicle in the EU increased by 5,8% (increase by 5,1% in PC and 10,1% in CV)

In LTM sales of motor vehicle in the EU increased by 4,9% (increase by 4,6% in PC and 6,9% in CV)

Metal Bulletin 226 alloy spread w EUR

In Q3 2014 slight improvement of relation between scrap cost and standard 226 alloy prices

01-2

008

04-2

008

07-2

008

10-2

008

01-2

009

04-2

009

07-2

009

10-2

009

01-2

010

04-2

010

07-2

010

10-2

010

01-2

011

04-2

011

07-2

011

10-2

011

01-2

012

04-2

012

07-2

012

10-2

012

01-2

013

04-2

013

07-2

013

10-2

013

01-2

014

04-2

014

07-2

014

0

100

200

300

400

500

600

Margin benchmark (EUR/t)

Volume sales in thou. tons

8%

26%19%

In Q3 2014 volume sales increased by 8% to 37k tons

In LTM volume sales increased by 19% to 151k tons

3Q'13 3Q'14 9M'13 9M'140.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

34.4 37.2

93.1

116.9

2011 2012 2013 LTM -

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

88.1 99.4

126.9

150.7

3Q'13 3Q'14 9M'13 9M'140

100

200

300

400

500

600

700

800

900

1,000

274.2 292.3

743.7

908.9

2011 2012 2013 LTM0

200

400

600

800

1,000

1,200

1,400

811.7 844.6

1,015.3

1,180.5

Sales revenue in mn PLN

7%

22% 16%

In Q3 2014 sales revenue increased by 7% to PLN 292 mn

In LTM sales revenue increased by 16% to over PLN 1180 mn

2011 2012 2013 LTM -

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

63.0

52.9 54.0

74.9

3Q'13 3Q'14 9M'13 9M'140.0

10.0

20.0

30.0

40.0

50.0

60.0

16.419.8

35.0

55.9

EBITDA in mn PLN

20%

39%

In Q3 2014 EBITDA increased by 20% to PLN 20 mn

In LTM EBITDA increased by 39% to PLN 75 mn

60%

EBITDA per ton in PLN

In Q3 2014 EBITDA per ton increased by 11% to 531 PLN/t

In LTM EBITDA per ton increased by 17% to 497 PLN/t

3Q'13 3Q'14 9M'13 9M'140

100

200

300

400

500

600

478

531

376

478

2011 2012 2013 LTM0

100

200

300

400

500

600

700

800715

532

425

497

11%

27%

17%

3Q'13 3Q'14 9M'13 9M'140.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

12.414.0

22.9

42.0

2011 2012 2013 LTM -

10.0

20.0

30.0

40.0

50.0

60.0

44.0

34.4 35.8

54,9

Net profit in mn PLN

14%

83%53%

In Q3 2014 net profit increased by 14% to PLN 14 mn

In LTM net profit increased by 53% to PLN 55 mn

The impact of one-off events for 1-3Q 2014 results in thou. PLN

VAT – reversal of provision 1 106

IPO costs - 1 490

Cimos – creation of provision - 9 757

Impact on EBITDA - 10 142

VAT – reversal of provision + interest 884

Impact on EBT - 9 258

CIT 2 137

Impact on net profit - 7 121

24%

89% 57%

In Q3 2014 adjusted EBITDA increased by 24% to PLN 20 mn

In LTM adjusted EBITDA increased by 57% to PLN 85 mn

Adjusted EBITDA in mn PLN

3Q'13 3Q'14 9M'13 9M'14 -

10.0

20.0

30.0

40.0

50.0

60.0

70.0

16.4 19,8

35.0

55.9

20,3*

66,1*

2011 2012 2013 LTM -

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

63.0

52.9 54.0

74.9

85,0*

* Adjusted by impact of one-off events

Adjusted EBITDA per ton in PLN

14%

50% 33%

In Q3 2014 adjusted EBITDA per ton increased by 14% to PLN 546

In LTM adjusted EBITDA per ton increased by 33% to PLN 564

3Q'13 3Q'14 9M'13 9M'140

100

200

300

400

500

600

478

531

376

478

546* 565*

2011 2012 2013 LTM0

100

200

300

400

500

600

700

800715

532

425

497

564*

* Adjusted by impact of one-off events

Adjusted net profit mn PLN

17%

114% 73%

In Q3 2014 adjusted net profit increased by 17% to PLN 14,5 mn

In LTM adjusted net profit increased by 73% to PLN 62 mn

3Q'13 3Q'14 9M'13 9M'140.0

10.0

20.0

30.0

40.0

50.0

60.0

12.4 14.0

22.9

42.0

14,5*

49,1*

2011 2012 2013 LTM -

10.0

20.0

30.0

40.0

50.0

60.0

70.0

44.0

34.4 35.8

54.9

62,0*

* Adjusted by impact of one-off events

Capex in mn PLN

-68%

-74%

-62%

In Q3 2014 capex decreased by 68% to PLN 1,6 mn

In LTM capex decreased by 62% to PLN 12,7 mn

3Q'13 3Q'14 9M'13 9M'140.0

5.0

10.0

15.0

20.0

25.0

30.0

5.1

1.6

28.2

7.4

2011 2012 2013 LTM -

10.0

20.0

30.0

40.0

50.0

60.0

70.0 64.2

38.6 33.5

12.7

OCF vs EBITDA in mn PLN

In Q3 2014 OCF amounted to minus PLN 2 mn vs EBIDTA PLN 20 mn

In LTM OCF amounted to PLN 69,5 mn vs EBIDTA PLN 75 mn

3Q'13 3Q'14 9M'13 9M'14-10.0

-

10.0

20.0

30.0

40.0

50.0

60.0

16.4 19.8

35.0

55,9

6.1

-2.3

5.8

38,8

EBITDA OCF

2011 2012 2013 LTM -

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

63.0

52.9 54.0

74.9

17.2

60.9

36.5

69.5

EBITDA OCF

Net debt and effective CIT rate

Net debt Effective CIT rate

At the end of September 2014 net debt amounted to PLN 62 mn and Net debt/EBIDTA ratio decreased from 1,3x at the end of 2013 to 0,8x at the end of Q3 2014

Effective CIT rate in Q3 2014 was negative due to the provision for CIMOS receivables

2011 2012 2013 9M'140.0

20.0

40.0

60.0

80.0

100.0

120.0

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

112.1

72.1 70.2 61.7

1.8

1.4 1.3

0.8

Net debt Net debt/EBITDA2011 2012 2013 9M'14

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

12.3%

7.8%

1.7%

-1.2%

Provision for receivables from CIMOS

The Management Board decided to make a provision for the total amount of the receivables amounting to PLN 9.757 thou. in the results of H1 2014

On 5th August 2014 Alumetal received the letter with the proposal of claim repayment in the following way:

- 25% of the amount shall be paid in October 2014- 30% of the amount shall be divided into 8 semi-annual installments due from October 2015- 45% of the amount shall be redeemed

The court indicated the deadline until 3rd September 2014 for Cimos to present the restructuring plan

On 15th October 2014 Alumetal received the letter confirming an intention of first payment (25% of the amount) within November 2014 (5 days after approval of restucturing plan by the District Court of Koper)

Status of project in Hungary

On 1st October 2014 – business plan accepted by Supervisory Board- PLN 120 mn capex- ca. 60k tons production capacity realized in one stage- start of the production in Q4 2016

On 9th October 2014 – order for design of the plant was issued

On 10th October 2014 – preliminary purchase agreement of the land was signed

On 10th October 2014 – binding offer from Hungarian Goverment was obtaind (public aid up to 35% of eligible capex, the split between cash grant/CIT allowance close to Management expectations)

Summary

Q3 2014 financial results in line with the Management expectations

Market situation should be stable till the end of 2014

Strong OCF, low leverage and obtained Hungarian public aid will allow to finance capex of Hungarian project and continue the dividend policy