Athens, Thursday, May 7 2015

 SIDENOR HOLDINGS S.A. 

ANNOUNCEMENT

SIDENOR HOLDINGS PRESENTED IN HELLENIC FUND AND ASSET MANAGEMENT ASSOCIATION

Sidenor Holdings annual presentation to the Hellenic Fund and Asset Management Association took place on Thursday, May 7, 2015. During the presentation, Sidenor Holdings' annual financial results for FY 2014, the most important developments in corporate level, the outlook for FY 2015, as well as the announced merger with Viohalco, were analysed.

As it was mentioned by the company's representatives, during 2014 Sidenor Group operated within unfavorable circumstances for the Greek economy, the construction sector and the international steel market. The cost improvements in the Stomana Industry subsidiary in Bulgaria, the new higher value added products (such as special steels and 2.5 meter wide steel plates), along with the penetration into the plate products market in the USA have contributed to the reduction of losses during 2014. However in Greece the financial crisis has led the two industrial facilities in Almyros and Thessalonica to the accumulation of significant losses, mainly due to the dramatic collapse in the construction sector.

Specifically, consolidated turnover during FY 2014 reached EUR 822.1 mil., compared to EUR 807.7 mil. in FY 2013, marking an increase of 1.8%. Consolidated losses before taxes amounted to EUR 54.9 mil. versus EUR 75.4 mil in 2013, while EBITDA increased by 101% to EUR 23 mil. compared to EUR 11.5 mil. during the previous year. Finally, earnings after taxes and minority rights during FY 2014 amounted to losses of EUR 49.7 mil. (or losses of EUR 0.5165 per share) compared to losses of EUR 73.7 mil. (or losses EUR 0.7663 per share) in 2013.

Looking ahead to 2015, the export orientation of the Group allows it to benefit from the weakening of the EUR/USD exchange rate, as well as from the leverage derived from the Group's production investments performed during previous years. In particular, the operation of the new induction furnace at the subsidiary Sovel, the upcoming completion of the new induction furnace in Thessalonica, the installation of the vacuum degasser and the billet conditioning at Stomana Industry in Bulgaria, the investments in Dojran Steel in FYROM for the production of merchant bars and the further enrichment of the product portfolio along with expansion of the Group's activities into new geographical markets, will contribute significantly to the improvement of its cost structure and its financial results during the period.

It must be noted that for the current year, the outlook is further enhanced by the announced merger of Sidenor Holdings with Viohalco, which represents the most appropriate technical solution for strengthening the capital structure of the steel producing companies and plants of Sidenor Holdings located in Greece, and for securing ongoing support through better access to the international capital and money markets, that such streamlined corporate structure will help ensure.

The fresh capital which will flow in as a result of the merger, shall empower a critical but dormant production capacity, increase exports and help maintain and increase job positions at Thessaloniki and Almyros. Primarily drawn into Viohalco's capital reserves, a first tranche of new capital of Euro 25 million, shall be made available and be invested in the two plants through share capital increases in Sidenor Holdings' Greek companies, Sidenor Steel Production S.A. and Sovel Hellenic Steel Processing Company S.A., immediately after the completion of the merger.