Athens, Thursday March 27, 2014

 SIDENOR STEEL PRODUCTS MANUFACTURING COMPANY S.A. 

ANNOUNCEMENT

FISCAL YEAR 2013 RESULTS

In 2013, the ongoing economic crisis in the Greek economy and in the steel industry in particular, in conjunction with the negative conditions prevailing in the sector internationally, affected SIDENOR Group financial results.

In particular, consolidated sales stood in 2013 at €807.7 mil. compared to €1,046.7 mil. in 2012 decreased by 22.8%. Consolidated EBITDA stood at €10.8 mil. compared to €27.1 mil. last year, affected apart from the above by the high energy cost as well. It is important to note that the financial results were also burdened by non-recurring items amounting to €12.8 mil., which mainly refer to the temporary suspension of Sovel plant in

Almyros, Magnesia, idle cost of Stomana Industry and CPW plants, as well as impairment on real estate assets of Vet plant.

Finally, consolidated results after tax and minority rights stood in the fiscal year 2013 at losses of €73.2 mil. (or losses of 0.7602 euro per share) compared to losses of €66.7 mil. (or losses of 0.6926 euro per share) in 2012, additionally due to the increase in the corporate income tax rate (from 20% to 26%) and the recalculation of deferred tax of the Group's Greek companies, that resulted in an additional one-off deferred tax loss of €13.6 mil., which was recorded in the first quarter and burdened the results of the fiscal year of 2013.  

It is important to note that the Group records significant positive cash flows from operating activities, while in 2013, in contrary with 2012, recorded positive total cash flows as a result of the actions to reduce operating costs as well as the improved management of raw materials and inventories.

During 2013 SIDENOR Group implemented its investment program with ​​investments totaling €28 mil. The SIDENOR Group's investment program is part of an overall strategy to further improve the efficiency of the production units, to expand its product portfolio, to reduce the energy consumed and the carbon footprint and to enhance job security. Within the framework of this investment plan, Sidenor recently announced a €10 mil. investment in the Thessaloniki plant, in which an electric induction furnace in line with the continuous caster will be installed. With this investment, significant energy saving will be achieved and at the same time total carbon footprint will be reduced, since steel rolling will then have a zero direct carbon footprint (no use of natural gas).

The clear export orientation of the Group, that will be further enhanced by the announced decreases in energy costs, the high capacity of the production facilities, the extensive sales network and the continuous efforts for penetration in new markets, along with the relaunching of the domestic public road works guarantee the effective expansion of the SIDENOR Group's activities and the offsetting of the adverse conditions prevailing during last years in the market.

Publication: Thursday March 27, 2014, following the end of ATHEX's trading session

The Data and Information of the period 1.1.2013 – 31.12.2013 will be published together with the Annual Financial Report for the same period and will be posted on the company's website, www.sidenor.gr, as well as on the ATHEX website www.athex.gr , on March 27, 2014, following the end of ATHEX's trading session.