Annual Report 2024

100 years

Annual Report 2024

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Viohalco

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Annual Report 2024

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A. Viohalco 4

B. Message from the Chairman of the Board of Directors 6

C. Business segments 8

D. Financial highlights 2024 12

E. Business segments’ review 21

F. Subsequent events 70

G. Risks and uncertainties 72

H. Sustainability statement 78

I. Corporate governance statement 194

J. Alternative performance measures (APMs) 208

Κ. Consolidated financial statements 2024 and Auditor’s report 216

L. Declaration of responsible persons 302

Μ. Condensed Statutory Balance Sheet and Income Statement 304

N. Glossary 306

Table of contents

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Viohalco S.A. is listed on Euronext Brussels (VIO) and the Athens Stock Exchange (BIO).

A. Viohalco

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Sales across the globe

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Strong performance in a challenging environment

Throughout 2024, Viohalco successfully navigated a volatile economic landscape. Despite persistent inflationary pressures and weak European growth, we delivered strong results—growing adjusted EBITDA by over 12% to EUR 604 million and increasing consolidated profit before income tax to EUR 274 million.

Significant operational improvements across key segments

Each of our business segments played a crucial role in driving our success:

Aluminium: Our investments in the Elval plant paid off, enhancing efficiency and boosting sales, even in the face of macroeconomic challenges. A strategic pivot towards the automotive sector resulted in successful collaborations with leading European car manufacturers. These efforts, coupled with increased profitability, drove a 64% year-on-year rise in free cash flow and reduced debt to EUR 585 million.

Copper: We capitalised on favourable market conditions, optimised our product mix and leveraged cost efficiencies, including lower energy costs and greater use of scrap. With ongoing investments aimed at expanding high-value product capacity, Sofia Med continues to strengthen its position in the industry.

Cables: A record-breaking year for our cables segment

saw strong demand, particularly for low and medium- voltage power cables and a growing project portfolio. Adjusted EBITDA increased by 20% year-on-year to EUR 183 million. New project awards, including offshore wind farm connections and interconnection projects, expanded our backlog to EUR 3.01 billion. To support this growth, we invested EUR 217 million in expanding our plants in Corinth, Thiva and Eleonas, as well as for the construction of a new facility in Baltimore, Maryland (USA).

Steel Pipes: Higher production levels, an improved project mix and strong capacity utilisation drove improved margins. The energy sector’s growing demand for secure and efficient fuel transportation solutions solidified our position as a Tier-1 manufacturer for natural gas, hydrogen and carbon dioxide pipelines.

Steel: Steel segment faced significant headwinds from declining European demand, low-cost imports and high energy prices. Despite these challenges, we remained the market leader in Greece and sustained our positions across Bulgaria, Central and Northern Europe. Our commitment to a robust scrap supply chain ensured stable service and delivery. For a sustainable and competitive European steel sector, EU needs to enforce fair trade rules, tighten import quotas, prevent scrap leakage and secure competitive electricity prices. These measures are vital to the sector’s continued contribution to the economy and employment.

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Real estate: Our real estate division delivered strong results, with Noval Property achieving double-digit rental revenue growth and significant fair value gains. High demand for sustainable properties in Greece has driven strong occupancy rates and investment opportunities. A major milestone was reached in June 2024 with Noval Property’s listing on the Athens Stock Exchange, following a successful EUR 52.7 million share capital increase.

Steady delivery against sustainability objectives

Sustainability remains at the core of our long-term strategy. In 2024, we made significant strides in meeting our sustainability objectives, marking the first year of Corporate Sustainability Reporting Directive (CSRD) implementation. Our updated Sustainability Statement now covers all Viohalco subsidiaries, reinforcing our commitment to transparency and responsible business practices. This year, our subsidiaries adopted a structured approach to sustainability, completing a comprehensive Double Materiality Assessment (DMA), in line with ESRS requirements. These insights will guide the development of future initiatives and improvement targets, as we continue on our path toward a more sustainable future.

Well positioned for the future

Looking ahead, we remain steadfast in our commitment to growth and innovation.

We continue to monitor recent developments in the global markets following the tariffs imposed on US

imports and the potential implications for production costs and supply chains.

The well-diversified structure of Viohalco with a wide range of markets and the continuous investment in operational excellence provide a strong, resilient foundation.

Nikolaos Stassinopoulos

Chairman of the Board of Directors

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C. Business segments

Viohalco operates under the following organizational structure which comprises seven business segments

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Operational highlights

• The aluminium segment reported positive trends in sales and profitability, due to recent investments into the Elval plant, which enabled optimal capacity utilisation, increased operational efficiency and higher sales.

• The copper segment’s performance benefitted from an optimised product mix, lower energy prices, increased scrap usage, reduced costs and a favourable average copper price.

• In the cables segment, an improved sales mix drove growth and enhanced performance. The efficient execution of high-profile offshore and onshore projects remained the segment’s primary profitability driver.

• The steel pipes segment continued the strong performance of the previous year. Increased operational profitability was driven by increased production volumes, improved project mix and high-capacity utilisation.

• The performance of the steel segment remained subdued, as a result of the strong downturn in European steel demand and macroeconomic headwinds. Despite these conditions, the segment maintained its leading market position in Greece and sustained presence in key markets across Bulgaria, Central and North Europe.

• The real estate division delivered robust results, driven by a strategic focus on developing new properties and upgrading existing assets, capitalising on strong tenant demand for high- quality, sustainable buildings in Greece.

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Overview

Viohalco’s financial reporting is split into two divisions, based on their distinct business characteristics and performance metrics.

The industrial division

Key highlights 2024

Real estate division

Industrial division

Aluminium

Copper

Cables

Steel pipes

Steel

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Τhe revenue of the industrial division amounted to EUR 6.58 billion. The operational profitability (a-EBITDA) of the industrial division amounted to EUR 583 million.

Viohalco’s industrial division comprises the following segments: aluminium, copper, cables, steel pipes and steel.

• The aluminium segment’s sales and profitability increased, boosting free cash flow (up +64% y-o-y) and reducing debt to EUR 585 million. Investments in the Elval plant improved efficiency and sales, despite macroeconomic challenges. In extrusion, a strategic shift to the automotive industry led to successful projects with top European automotive companies.

• The copper segment’s performance improved due to favourable copper prices, an optimised product mix, lower energy prices, increased scrap usage and lower costs. Ongoing optimisations and investments aim to expand high-value product capacity and broaden Sofia Med’s range.

• The cables segment’s improved sales mix and project activity boosted growth and performance. Efficient execution of high-profile projects and high-capacity utilisation increased adjusted EBITDA (+20% y-o-y) to

EUR 183 million. Strong demand for low and medium- voltage power cables supported profitability. New project awards, including interconnections and offshore wind farms expanded the backlog to a record EUR 3.01 billion. In 2024, EUR 217 million was mainly invested in expanding plants in Corinth, Thiva and Eleonas (Greece), and building a new facility in Baltimore, Maryland (USA).

• The steel pipes segment delivered improved margins in 2024 due to higher production, an improved project mix and high-capacity utilisation. The strong gas fuel transportation market, driven by high energy prices and a need for energy security, led to more pipeline projects. The segment solidified its Tier-1 position as a steel pipe manufacturer for transportation of natural gas, hydrogen and carbon dioxide.

• The steel segment successfully maintained its leadership position in Greece, despite a continued decline in European demand. External challenges including low- cost imports, high energy prices and inflation impacted performance. Despite this, the segment maintained its leading market position in Greece and sustained its presence in Bulgaria, Central and North Europe, with modest sales growth in some products. The resilient scrap supply chain ensured stable delivery and service.

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Viohalco’s real estate division delivered robust results, with Noval Property achieving double-digit year-on-year rental revenue growth and fair value gains. The division’s focus on new properties and upgrading existing assets drove performance by leveraging high tenant demand for sustainable buildings in Greece.

In June 2024, Noval Property listed on the Athens Stock Exchange, following a successful share capital increase of EUR 52.7 million, including the conversion of an EBRD’s convertible loan.

Viohalco uses the historical cost method for investment property, while certain real estate subsidiaries follow the fair value method. In 2024, Noval Property reported earnings before taxes of EUR 51 million based on the fair value method, while historical cost earnings before tax amounted to EUR 16 million. As of 31 December 2024, the Gross Asset Value (“GAV’) of its investment portfolio stood at EUR 648 million, with its net asset value (“NAV”) reaching EUR 519 million.

Sustainability

In 2024, Viohalco subsidiaries made significant strides in sustainability, marking the first year of implementing the Corporate Sustainability Reporting Directive (CSRD). The Sustainability Statement, which will be published in the Annual Report 2024 on April 15th 2025, will cover all Viohalco subsidiaries, regardless of size or activity, aligning with the companies’ consolidated financial statements. This milestone underscores Viohalco companies’ commitment to transparent reporting and environmental and social stewardship. At the segment level, subsidiaries adopted a structured approach and conducted a comprehensive Double Materiality Assessment (DMA), in accordance with ESRS requirements, forming the foundation of this year’s sustainability reporting. These results will guide the development and implementation of future sustainability initiatives and improvement targets.

Addressing climate change challenges, that include both transition and physical risks, contributing to a circular economy, ensuring responsible sourcing, and upholding high standards of occupational health and safety remained a key priority for Viohalco subsidiaries. Substantial investments, in both human and financial resources, were made to drive continuous improvements in these critical areas. Sustainability-related information is also a key focus for stakeholders, including customers, financial institutions and investors. These groups actively seek details on product sustainability attributes, subsidiaries’ sustainability performance and long-term commitments to managing impacts and decarbonization efforts.

Outlook

With a diversified portfolio, competitive positioning, optimised production, and strong long-term global demand for sustainable products, Viohalco companies remain well positioned for the future.

Viohalco’s aluminium segment continues to facilitate the transition to highly recyclable and energy-efficient product solutions that drive sustainable development and technological advancement across modern industries. Rising demand for packaging with high recycled content, energy- efficient infrastructure and the growing adoption of electric and lightweight vehicles, are expected to support positive momentum throughout 2025.

In the copper segment, planned process optimisation initiatives and strategic investments are expected to deliver enhanced production capacity for high-value products and further expand Sofia Med’s product portfolio, supporting continued growth. Long-term demand and macrotrend fundamentals remain supportive for the segment.

At the same time, the cables and steel pipes segments are expected to gain further momentum, fuelled by the ongoing shift toward electrification, the wide deployment of renewable energy solutions, the need for grid expansion, as well as the increasing demand for hydrogen transportation and carbon capture and storage (CCS). Both segments, having completed or completing significant capacity expansions are well positioned for future growth.

While the construction sector in Greece is expected to remain buoyant, European steel demand in construction and manufacturing sectors is projected to remain subdued in early 2025, before gradually recovering.

Finally, in real estate, Noval Property’s strategic focus on developing new properties and upgrading existing assets is expected to provide further impetus, as the Company capitalises on strong tenant demand for high-quality, sustainable buildings in Greece.

Viohalco companies are evaluating the continuously evolving situation with imposed and contemplated tariffs in the US. Even though direct exposure to the US is limited and capacity in the US for affected products is finite, implications for global trade flows of materials and goods are expected to occur. The diversified model of Viohalco companies is a positive factor that can assist in the mitigation of any direct or indirect adverse effects.

The real estate division

Key highlights 2024

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In 2024, Viohalco’s consolidated revenue increased to EUR 6.63 billion (2023: EUR 6.30 billion).

Consolidated a-EBITDA increased at EUR 604 million (2023: EUR 537 million), as a result of the improved operational performance of most segments.

Net finance cost decreased to EUR 167 million (2023: EUR 188 million), as a consequence of successful working capital management and declining interest rates.

Consolidated profit before income tax for the period amounted EUR 274 million, compared to EUR 91 million in 2023.

Consolidated net profit after income tax and minority interests amounted to EUR 161 million (2023: EUR 48 million); with earnings per share amounted at EUR 0.62 (2023: EUR 0.19).

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Capital expenditure for the year amounted to EUR 434 million and is mainly due to the following investments:

Aluminium segment investments of EUR 74 million mainly related to investments at the extrusions plant in Bulgaria for the manufacturing of automotive products and other operational improvements across the aluminium plants in Greece and the UK.

Copper segment investments amounted to EUR 24 million, mainly related to rolling mill production capacity increase and the product mix improvement, enabling the manufacturing of products of new widths and thicknesses.

Regarding the cables segment , capital expenditure of 2024 of EUR 217 million mainly related to the implementation of the planned capacity expansion in the offshore cables plant in Corinth, Greece, the new production lines and equipment for the onshore cables’ plants in Thiva, Greece and the land plot intended for the new cables facility in the USA and relative expenditure necessary for its development.

Capital expenditure in steel pipes segment amounted to EUR 41 million and is linked to the upgrades in the Thisvi plant (Greece).

Steel segment investments amounted to EUR 34 million, mainly concerning operational improvement investments across steel plants, focusing on environmental compliance and resources usage efficiency.

Real estate investments of EUR 35 million were mainly related to the construction works in office and residential properties in Athens, Greece.

Other segment investments amounting to EUR 8 million are mainly related to the additions in Thisvi port in Greece by Viohalco subsidiary Diavipethiv and in other investments by the rest of the segments’ subsidiaries.

The decrease in working capital by 23% was mainly driven by the organic improvement in cash-to-cash cycle, especially in the aluminium, cables and steel pipes segments.

Net debt decreased to EUR 1,513 million (31 December 2023: EUR 1,873 million), mainly due to working capital efficiencies and the successful share capital increase of Cenergy Holdings and the IPO of Noval Property on the Athens Stock Exchange.

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Aluminium 22

COPPER 28

Cables 38

STEEL PIPES 44

STEEL 52

REAL ESTATE 58

R&D and Technology 64

Viohalco

Aluminium

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Viohalco’s aluminium segment manufactures a variety of aluminium rolled and extruded products for diverse markets and applications, through its aluminium rolling division (‘Elval’), and its subsidiaries Symetal, Elval Colour - and its subsidiary in Spain Elval Colour Iberica, Vepal, Viomal, Anoxal, Bridgnorth Aluminium and Etem Bulgaria.

The aluminium segment offers rolled products and solutions for:

• Packaging (rigid and flexible packaging solutions, beverage and food cans, closures, household products, and pharmaceutical and aseptic packaging foil);

• Transportation (automotive, marine, road and rail industries, as well as the HVAC&R sector);

• Construction (mill finish and coated aluminium sheets and coils for the entire building envelope, such as etalbond® aluminium composite panel, orofe® and Ydoral® pre-coated coils, sheets and strips for roofing applications and rain gutters, Elval ENF corrugated);

• Industrial applications (aluminium sheets, coils and circles for general engineering, renewable energy and household applications);

• Lithographic coils used as a substrate in the manufacture of printing plates;

• Extruded products;

• Industrial aluminium applications (aluminium profiles and processed hard alloy bars for industrial use, general engineering applications, building applications, energy applications and transportation);

• Automotive applications (flat-rolled aluminium for internal structural parts, components and HVAC&R applications, extruded aluminium profiles and parts that have undergone special tooling and machining and are used in car chassis, suspension systems and doors and decorative aluminium profiles for roof railings, aluminium composite panels for special automotive applications).

Activities

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■ Production facilities

Viohalco’s aluminium companies operate the following state-of-the-art production facilities:

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Key financials

2024 Financial performance

Despite significant economic and geopolitical challenges, aluminium segment revenue grew by 7% to EUR 2,020 million (2023: EUR 1,887 million). This result was achieved thanks to strong momentum in product solutions marketed to the packaging sector, where sales increased more than 12.9%. Despite the challenging market conditions that affected foil demand and pricing in the first quarter, the trend was reversed from the second quarter, due to increased sales in flexible packaging and lacquered foil products.

Overall volume growth in the aluminium segment is largely attributable to optimal capacity utilisation following recent investments in the Elval plant. The profitability of the segment improved with profit before tax amounting EUR 63 million and a-EBITDA reaching EUR 159 million in 2024 from EUR 153 million in 2023. Lower accounting metal losses of EUR 4.6 million (2023: losses of EUR 46.8 million) and positive rest adjustments resulted in an EBITDA of EUR 160 million and EBIT of EUR 102 million, versus EUR 95 and EUR 35 in 2023 respectively.

Enhanced profitability, coupled with a EUR 117 million reduction in working capital through proactive initiatives and a lower Capex of EUR 74 million, drove strong free cash flow generation.

Looking ahead, the global aluminium industry stands at the crossroads of innovation, sustainability and growth. Demand for aluminium solutions continues to be driven by customer preferences for packaging with high recycled content, energy-efficient infrastructure and the growing adoption of electric and lightweight vehicles. The aluminium segment’s highly diversified product range and geographic reach position the Company well to capitalise on the positive long-term market trends supporting growing demand for aluminium. The Company remains focused on building on its competitive advantages and remains committed to fostering robust partnerships that promote a sustainable aluminium value chain.

In 2024, Bridgnorth Aluminium experienced a strong recovery in demand, following a challenging previous year. The Company closed the year close to budget, driven by robust operational performance and solid financial results in Q4 2024. Bridgnorth Aluminium delivered significant improvements in yield and successfully reduced its cost base down, exceeding budget expectations, despite persisting supply challenges, particularly with shipments passing through the Red Sea. Looking ahead, the business remains committed to optimising operations and driving business growth in 2025 and beyond, leveraging increasing demand from existing and new customers.

In 2024, Etem Gestamp focused on the automotive industry, expanding extrusion capacity and installing machinery for new projects with Audi and Porsche. This led to record revenue and EBITDA, with automotive sales making up 67% of total sales. The Company also secured a new project with Volvo Trucks and maintained a strong industrial client base. Despite challenges in the automotive sector, the outlook for 2025 is positive, with new projects from premium OEMs ensuring stable growth.

Outlook

Looking ahead, the global aluminium industry stands at the crossroads of innovation, sustainability and growth. Demand for aluminium solutions continues to be driven by customer preferences for packaging with high recycled content, energy-efficient infrastructure and the growing adoption of electric and lightweight vehicles. The aluminium segment’s highly diversified product range and geographic reach position the Company well to capitalise on the positive long-term market trends supporting growing demand for aluminium. The Group remains focused on building on its competitive advantages and remains committed to fostering robust partnerships that promote a sustainable aluminium value chain.

Bridgnorth Aluminium remains committed to optimising operations and driving business growth in 2025 and beyond, leveraging increasing demand from existing and new customers.

Despite challenges in the automotive sector, the outlook for 2025 is positive, with new projects from premium OEMs ensuring stable growth.

Further information on the companies is available on their corporate websites:

About Elval: www.elval.com

About Symetal: www.symetal.gr

About Bridgnorth Aluminium:

www.bridgnorthaluminium.co.uk

About Elval Colour: www.elval-colour.com

About Viomal: www.viomal.com

About Αnoxal: www.anoxal.gr

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COPPER

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The copper segment companies manufacture a wide range of copper, brass and high-performance copper alloy products, as well as titanium zinc products. The segment comprises a copper and alloys extrusion division (‘Halcor’), and its subsidiaries Sofia Med S.A., Epirus Metalworks S.A., Cablel Wires S.A. and the NedZink BV and HC Isitma joint ventures.

Halcor offers a diverse product range including copper and copper alloy rods and tubes, along with extruded and rolled products. It continuously seeks to grow its network and market share, both in Europe and the rest of the world, via its subsidiaries and commercial partners, and by entering new markets, investing in innovative sustainable technologies, and delivering high added-value products and solutions.