15th March 2016

Alumetal Group

2015 financial results

165 k tons sales volume (6% increase yoy), full capacity utilisation

PLN 106,6 mn EBITDA (36% increase yoy) due to volume growth and better margins despite the negative impact of one-off events

PLN 77,7 mn net profit (32% increase yoy) due to EBITDA growth despite negative impact of negative balance on exchange rate differences

PLN 46,7 mn net debt (0,4x EBITDA’15) although higher capex, increase in net working capital and dividend payment

PLN 70,1 mn operating cash flow (20% increase yoy) due to higher EBITDA, despite the increase in net working capital

FY 2015 at glance

18 698

19 725

18 439

15 290

17 079

17 552

16 276 16 318 17 127

18 177

18 130 18 520

16 760 15 774

15 104 15 065

13 749 13 563

14 400

15 793

12 000

13 000

14 000

15 000

16 000

17 000

18 000

19 000

20 000

21 000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Produkcja Rejestracja

In 2015 the motor vehicle production in the EU increased by 6,1% and the motor vehicle sales increased by 9,7% (9,3% increase in PC and 12,5% increase in CV)

In 2015 the CEE5 share in the production of motor vehicles in the EU accounted for 21,2% and the CEE5 and Germany share amounted to 54,4%

Motor vehicle production and sales in the EU in thou. units

0

100

200

300

400

500

600

01-2

008

03-2

008

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07-2

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11-2

014

01-2

015

03-2

015

05-2

015

07-2

015

09-2

015

11-2

015

Benchmark margin (EUR/t)

Metal Bulletin 226 alloy spread in EUR per ton

345

In 2015 average margin amounted to 405 EUR/t, that was 19,4% higher than 2014 and 17,3% higher than the eight-year average

1128

877

228

356

200

400

600

800

1000

1200

1400

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Export/import of Al scrap from/to the EU in k tons

Eksport Import

93

172

67

247

20

70

120

170

220

270

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Export/import of Al Scrap from/to Poland in k tons

Eksport Import

* *

* data for 2015 - form Dec 2014 till Nov 2015

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

Net export of aluminium scrap from the EU decreased from 641k tons in 2014 to 521k tons in 2015, which is 15% decrease (export declined by 10% and import went down by 1%). Export to China and India is responsible for 2/3 of the total EU export

Net import of aluminium scrap to Poland increased from 33k tons in 2014 to 75k tons in 2015, which is growth of 128% (import increased by 19% and export decreased by 2%)

Sales volume in thou. tons

6%

In 4Q 2015 sales volume increased by 2% yoy to 40k tons

In 2015 sales volume increased by 6% yoy to 164,8k tons

39,2

45,4

41,3 38,2

40,0

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

50,0

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15

88,1 99,4

126,9

156,1 164,8

-

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

180,0

200,0

2011 2012 2013 2014 2015

Sales revenue in mn PLN

17%

In 4Q 2015 sales revenue increased by 4% yoy to PLN 338 mn

In 2015 sales revenue increased by 17% yoy to PLN 1 442 mn

326,4

385,4 367,0 351,3

338,1

0

50

100

150

200

250

300

350

400

450

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15

811,7 844,6

1 015,3

1 235,3

1 441,9

-

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2011 2012 2013 2014 2015

EBITDA in mn PLN

36%

In 4Q 2015 EBITDA increased by 11% yoy to PLN 25 mn

In 2015 EBITDA increased by 36% yoy to PLN 106,6 mn

22,4

19,2

28,2

34,3

25,0

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15

63,0 52,9 54,0

78,3

106,6

-

20,0

40,0

60,0

80,0

100,0

120,0

2011 2012 2013 2014 2015

EBITDA per ton in PLN

In 4Q 2015 EBITDA per ton increased by 9% yoy to 624 PLN/t

In 2015 EBITDA per ton increased by 29% yoy to 647 PLN/t

29%

571

424

682

897

624

0

100

200

300

400

500

600

700

800

900

1 000

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15

715

532

425

502

647

0

100

200

300

400

500

600

700

800

2011 2012 2013 2014 2015

Net profit in mn PLN

32%

In 4Q 2015 net profit increased by 10% yoy to PLN 18,6 mn

In 2015 net profit increased by 32% yoy to PLN 77,7 mn

16,9

9,8

21,6

27,7

18,6

0,0

5,0

10,0

15,0

20,0

25,0

30,0

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15

43,9

34,5

35,8

58,9

77,7

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

2011 2012 2013 2014 2015

One-off events impact for 2015 financial results in thou. PLN

1Q’14 2Q’14 3Q’14 4Q’14 2014 1Q’15 2Q’15 3Q’15 4Q’15 2015

Valuation of the managerial option program and yearly bonus for significant exceeding of 2015 budget

- 2 169 - 2 169 -1 205 - 265 - 381 - 1 614 -3 465

IPO costs - 347 - 597 -546 - 1 490 0

Reversal of provision for VAT 1 106 1 106 0

Impairment of fixed assets 0 - 867 - 867

Receivables impairment charges decreased by previously written-off receivables

- 9 757 2 439 - 7 318

-7 329 -7 329

Impact on EBITDA - 347 - 9 249 - 546 270 - 9 871 -1 205 -265 -381 -9 810 -11 660

Interest on refund of VAT 884 884 0

Income tax 66 1 967 104 - 463 1 673 774 774

Impact on net profit -281 -6 398 -442 -193 -7 314 -1 205 -265 -381 - 9 037 -10 887

34%

In 4Q 2015 adjusted EBITDA increased by 57% yoy to PLN 34,8 mn

In 2015 adjusted EBITDA increased by 34% yoy to PLN 118,3 mn

Adjusted EBITDA in mn PLN

22,1 20,4

28,4

34,7 34,8

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15

63,0 52,9

54,0

78,3

106,6

88,2

118,3

-

20,0

40,0

60,0

80,0

100,0

120,0

140,0

2011 2012 2013 2014 2015

EBITDA Adj. EBITDA

27%

In 4Q 2015 adjusted EBITDA per ton increased by 54% yoy to 870 PLN/t

In 2015 adjusted EBITDA per ton increased by 27% yoy to 718 PLN/t

Adjusted EBITDA per ton in PLN

565

450

689

907 870

0

100

200

300

400

500

600

700

800

900

1 000

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15

715

532

425

502

647

565

718

0

100

200

300

400

500

600

700

800

900

2011 2012 2013 2014 2015

EBITDA/t Adj. EBITDA/t

Adjusted net profit in mn PLN

34%

In 4Q 2015 adjusted net profit increased by 61% yoy to PLN 27,6 mn

In 2015 adjusted net profit increased by 34% yoy to PLN 88,5 mn

17,1

11,0

21,8

28,1 27,6

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15

43,9

34,5 35,8

58,9

77,7

66,2

88,5

-

20,0

40,0

60,0

80,0

100,0

120,0

2011 2012 2013 2014 2015

Zysk netto Adj. zysk netto

Capex in mn PLN

In 2015 capex increased by 338% yoy to PLN 47,3 mn of which:

PLN 7,7 mn maintenance capex

PLN 5,8 mn metal management

PLN 33,8 mn product mix (liquid metal)/ capacity increase (Hungary)

*including amount transferred on collateral manager account (construction trustee service)

338%

3,1

4,2 6,0

11,9

25,1*

0,0

5,0

10,0

15,0

20,0

25,0

30,0

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15

64,2

38,6

33,5

10,8

47,3*

-

10,0

20,0

30,0

40,0

50,0

60,0

70,0

2011 2012 2013 2014 2015

EBITDA vs OCF in mn PLN

In 4Q 2015 OCF amounted to PLN 39,8 mn vs PLN 25,0 mn of EBITDA

In 2015 OCF amounted to PLN 70,1 mn vs PLN 106,6 mn of EBITDA

22,4 19,2

28,2 34,3

25,0

18,7

-19,4

15,0

34,7

39,8

-30,0

-20,0

-10,0

0,0

10,0

20,0

30,0

40,0

50,0

4Q'14 1Q'15 2Q'15 3Q'15 4Q'15

EBITDA OCF

63,0

52,9

54,0

78,3

106,6

17,2

60,9

36,5

58,5

70,1

-

20,0

40,0

60,0

80,0

100,0

120,0

2011 2012 2013 2014 2015

EBITDA OCF

Net debt and effective CIT rate

Net debt Effective CIT rate

At the end of 2015 net debt amounted to PLN 46,7 mn and Net debt/EBIDTA ratio decreased to the level of 0,4

Effective CIT ratio in 2015 amounted to 3,2%

112,1

72,1 70,2

45,4 46,7

1,8

1,4 1,3

0,6 0,4

0,0

0,2

0,4

0,6

0,8

1,0

1,2

1,4

1,6

1,8

2,0

0,0

20,0

40,0

60,0

80,0

100,0

120,0

2011 2012 2013 2014 2015 Dług netto Dług netto/EBITDA

12,3%

7,8%

1,7%

1,1%

3,2%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

2011 2012 2013 2014 2015

Management Board proposal of the net profit distribution

PLN 77,7 mn of consolidated net profit

Management Board profit distribution proposal:

- PLN 38,8 mn dividend for shareholders

- PLN 38,4 mn for supplementary capital

- PLN 0,5 mn for employees’ social fund

PLN 2,55 dividend per share (PLN 1,95 year ago) – dividend yield at 5,4%

Planned dividend record date on 20th May 2016 and planned dividend payment date on 31st May 2016

Hungarian project status

September 2015 – start of the recruitment and training in Poland of the first production employees from Hungary, currently 26 employees are employed

October 2015 – start of construction of the plant, currently construction works progress at ca. 50%

October 2015 – signing cash grant agreement with the Hungarian goverment, the agreement entered into force on 2nd February 2016

October 2015 – signing investment credit agreement between ING Bank Śląski S.A. and ALUMETAL S.A. and long-term loan agreement between ALUMETAL S.A. and ALUMETAL Group Hungary Kft.

April 2016 – start of assembly of machines and equipment

The project is on time and budget

Prizes and Awards in 2015

Warsaw Stock Exchange award for the highest value IPO in 2014

Prize „Bulls and Bears" awarded by Parkiet newspaper in the category Debut in 2014

Nomination for Prize „Best New Listed Company” awarded by Federation of European Securities Exchanges

Award of Rzeczpospolita newspaper in the category of Employment Growth

Awards: Business Cheetah 2015, Business Power 2015, Export Eagle 2015

Share price on the Warsaw Stock Exchange

At the end of 2015 share price was higher by 45% compared to IPO price

Market parameter for option in 2015 accomplished: change of average WIG –1,4% vs. the average Alumetal share price adjusted by dividend payment +29,2% (required difference +5%)

32

37

42

47

52

57

62

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2015-1

0-0

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0-1

9

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2015-1

1-0

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2015-1

1-0

9

2015-1

1-1

7

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2-0

1

2015-1

2-0

8

2015-1

2-1

5

2015-1

2-2

2

Summary

Record financial results in 2015 – the highest ever EBITDA and net profit despite the one-off events

Strong balance sheet and solid OCF will allow to implement the developement strategy and to continue the dividend policy

The project in Hungary realized according to schedule and budget

In 2016 the Management Board aims to achieve the parameteres necessary for the completin of the third tranche of the management option. Sustained upward trend in the automotive industry and the pressure on margins is expected