As part of the regular annual update to the Greek Institutional Investors, HELLENIC CABLES today held a presentation of the annual financial results for fiscal year 2013, the current developments, the general strategy and outlook for the coming years.

HELLENIC CABLES Group considers 2013 a transition year, since significant investments were completed in order to produce high-voltage submarine cables, laying the foundations for the future growth and prosperity of the Group. Additionally, the Group undertook improvement actions to reduce costs, improve productivity and strengthen sales networks, with emphasis on high value added products, sales to energy sector utilities, and geographic expansion outside the European Union.

Regarding the financial results for fiscal year 2013, HELLENIC CABLES Group turnover amounted to €345 million, decreased by 21% compared to 2012 (€439 million), a result of decreased demand in key markets of the European Union, which were significantly affected by the ongoing economic recession. However, it is worth mentioning that Group turnover outside Europe increased by 48%, indicative of actions to increase sales to countries that show growth prospects.

Consolidated earnings before interest, taxes and depreciation and amortization (EBITDA) amounted to €1.1 million, decreased by 90% compared to 2012, while the operating result (EBIT) of the Group amounted to losses of €7 million compared €2.1 million profit in 2012.

The results were affected by the reduction of turnover, decreased margins due to increased competition and the delay in the award of major contracts. In addition, the valuation of the unhedged metal stock of the production companies of the Group resulted in losses of €6.6 million in 2013 compared to losses of €2.2 million in 2012 due to the drop in copper prices in the metal stock exchange.

Consolidated earnings before taxes amounted to losses of €19.6 million compared to losses of €13.3 million in 2012, while net profit after taxes and minority interests amounted to losses of €21.1 million or €0.7125 per share. The net consolidated profit of 2013 bore a single additional loss of €2.2 million due to a recalculation of deferred tax due to change in income tax rate from 20% to 26% .

The Group's net debt amounted to €179 million on 31/12/2013 versus €150 million in 2012, a result of high capital expenditures within the financial year. Investments in 2013 amounted to €52.5 million, the majority of which involved advanced equipment to produce high-voltage submarine cables in subsidiary FULGOR.

Concluding the presentation, the Group's management expressed its optimism for 2014, since gradual recovery of international markets is expected, starting from the second quarter of the year. The market liquidity exhibits improvement trends, while there is confidence regarding the implementation of major infrastructure projects. HELLENIC CABLES has already undertaken the sub-project of interconnecting the islands of Syros - Tinos, Syros - Mykonos, Syros – Paros, part of the Cyclades Islands Interconnection Project, and also expects positive developments in the near future in other tenders involving high voltage submarine cables. The improvement of the business environment and the impact of improvement actions that have already taken place by the Group companies will not be immediately visible in the financial results, but it is obvious that the Group is in better condition to cope with the adverse market conditions and general uncertainty due to the recent investments.