Alumetal S A : Group 2022 financial results

Alumetal Group

Financial results 2022

16 March 2023

FY 2022 at glance

• 247,8k tons sales volume (7% increase yoy) - increased sales volumes despite a demanding business conditions in the European automotive industry
• PLN 293,5 mn EBITDA (37% increase yoy) - effect of increased sales volume and EBITDA per ton
• PLN 216,1 mn normalized consolidated net profit (46% increase yoy) - mainly due to EBITDA growth
• PLN 165,1 mn operating cash flow - significant improvement in EBITDA to OCF conversion in the 2H'22
• PLN 221,0 mn net debt (0,8x EBITDA'22) - increase of net debt as a result of increase in net working capital, dividend payments and capital expenditure

Motor vehicle production and sales in the EU and UK in k units

22 000
20 000	19 725
18 698		18 439							18 254	18 609 18 358	18 604
								17 978
				17 079 17 552
18 000	18 520					17 127
18 130		15 290			16 27616 318				17 541 17 645 17 887
							16 970
16 000		16 760
			15 774						15 797						13 63013 801
14 000				15 104 15 065			14 400					13 782
						13 749 13 597						13 624
													13 130
															12 809
12 000
10 000
2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022

Production Registration

Source: OICA i ACEA

• In 2022 EU and UK motor vehicle sales fell by 6% but production of motor vehicles increased by 5%
• The production level of motor vehicles in the EU and UK fell from 18,4 mn units on average in 2015-19 to 13,6 mn units on average in 2020-22, a decline of 26%. The level of motor vehicle production after falling in 2020, didn't rebound in 2021-22 due to disrupted supply chains (primarily a shortage of semiconductors)

Metal Bulletin 226 alloy spread in EUR per ton

900

800

700

600

500

400

300

200

100

0

388

12-201203-201306-201309-201312-201303-201406-201409-201412-201403-201506-201509-201512-201503-201606-201609-201612-201603-201706-201709-201712-2017	03-2018	06-201809-201812-201803-201906-201909-201912-201903-202006-202009-202012-202003-202106-202109-202112-202103-202206-202209-202212-2022
		monthly average			ten-year average

• In 2022 average benchmark margin amounted to 622 EUR/t which was 23% higher in comparison to 2021 and 60% higher than ten-year average margin of 388 EUR/t
• In 2022 stabilization of margins at a high level - 605 EUR/t in 1Q'22, 605 EUR/t in 2Q'22, 647 EUR/t in 3Q'22 and 631 EUR/t in 4Q'22

Export/import of aluminium scrap from/to the EU and Poland

1200							Export/import of Al scrap from/to EU in k tons
1000
800
600
400
200
0
2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	LTM
																				IX'22
								Export		Import

400						Export/import of Al scrap from/to EU in k tons
350
300
250
200
150
100
50
0
2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	LTM
								Export	Import								XI'22

• Net export of scrap from the EU decreased from 550k tons in 2021 to 275k tons in LTM. Export to India accounted for 28% and to China only for 5% of total EU exports
• Net export of scrap from Poland amounted to 80k tons in LTM, similar level in 2021