ELVALHALCOR HELLENIC COPPER AND ALUMINIUM INDUSTRY S.A.

ANNUAL FINANCIAL REPORT FOR OF 31

st

DECEMBER 2024

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TABLE OF CONTENTS ................................................................................................................................... 0

SUSTAINABILITY STATEMENT .................................................................................................................... 22

INDEPENDENT AUDITOR’S LIMITIED ASSURANCE REPORT ON SUSTAINABILITY STATEMENT .................. 121

BOARD OF DIRECTORS EXPLANATORY REPORT ....................................................................................... 126

CORPORATE GOVERNANCE STATEMENT ................................................................................................. 129

AUDIT COMMITTEE ACTIVITY REPORT ..................................................................................................... 156

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AUDIT REPORT......................................................................................................................................... 165

INTERNATIONAL FINANCIAL REPORTING STANDARDS ............................................................................. 173

4. Significant accounting policies ................................................................................................................ 187

4.1 Basis of Consolidation ................................................................................................................... 187

4.2 Foreign currency ............................................................................................................................ 188

4.3 Revenue ......................................................................................................................................... 189

4.4 Employee benefits ......................................................................................................................... 190

4.5 Government Grants ....................................................................................................................... 190

4.6 Emmision schemes ........................................................................................................................ 191

4.7 Finance income and finance costs ................................................................................................. 191

4.8 Income tax ..................................................................................................................................... 191

4.9 Inventories ..................................................................................................................................... 192

4.16 Provisions ....................................................................................................................................... 197

4.17 Impairment .................................................................................................................................... 198

4.18 Leases ............................................................................................................................................. 199

4.19 Earnings per share ......................................................................................................................... 200

4.20 Fair value measurement ................................................................................................................ 200

5. Operating segments ................................................................................................................................ 201

6. Sales ........................................................................................................................................................ 204

7. Other income and expenses .................................................................................................................... 204

8. Expenses by nature ................................................................................................................................. 205

9. Finance income and cost ......................................................................................................................... 206

16. Inventories .............................................................................................................................................. 227

17. Trade and other receivables .................................................................................................................... 227

18. Derivatives ............................................................................................................................................... 228

19. Cash and cash equivalents ...................................................................................................................... 229

20. Share capital and reserves ...................................................................................................................... 230

21. Earnings per share ................................................................................................................................... 232

22. Loans and obligations from financial leasing ........................................................................................... 232

23. Liabilities for employee’s retirement benefits ........................................................................................ 234

24. Grants ...................................................................................................................................................... 235

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25. Provisions ................................................................................................................................................ 236

32. Audit fees ................................................................................................................................................ 254

33. Right of use of Assets .............................................................................................................................. 254

34. Long and short-term receivables from loans........................................................................................... 256

35. Contractual Liabilities .............................................................................................................................. 257

36. EBITDA and a-EBITDA .............................................................................................................................. 257

37. Subsequent events .................................................................................................................................. 260

The undersigned in our capacity as members of the Board of Directors of the company with the name ELVALHALCOR

HELLENIC COPPER AND ALUMINIUM INDUSTRY S.A, trading as ELVALHALCOR S.A., whose registered offices are

located in Athens, at 2-4 Mesogeion Avenue, do hereby declare and confirm that as far as we know:

(a) the attached annual company and consolidated financial statements for the company ELVALHALCOR S.A. for

the fiscal year from 1 January to 31 December 2024, which were prepared in accordance with the applicable

International Financial Reporting Standards (IFRS), as adopted by the European Union, fairly present the assets,

liabilities, equity and results for the period ended on 31 December 2024 for ELVALHALCOR S.A. and the entities

included in the consolidation taken as a whole, in line with the provisions of Article 4, paragraphs 3 to 5, of Law

3556/2007; and

(b) the attached Annual Report of the Board of Directors reflects fairly the development, the performance and the

copper and alloys in the parent company increased by 6.8%, while the sales volume of copper tubes decreased by

alloy rolling products for industrial uses, which participated in the product mix with 34%, copper bus bars by 20%,

million for 2024 compared to Euro 239.3 million the respective prior year, decreased by 0.8% driven by improved

executed in accordance with the authorities granted at the General Meeting of Shareholders on May 23, 2024, and

22.05.2025 a dividend distribution of Euro 0.09 per share.

ELVALHALCOR’s Management has adopted to focus on measures and reports internally and externally Ratios and

Alternative Performance Measures. These ratios provide a comparative outlook of the performance of the

Company and the Group and constitute the framework of undertaking decisions for the Management.

Liquidity: This is the measure of coverage of the current liabilities by the current assets and can be calculated by

the ratio of the current assets to current liabilities. The figures are derived from the Statement of Financial Position.

For the Group and the Company for the current fiscal year and the comparative prior year are as follows:

Leverage: This is an indication of the leverage and can be calculated by the ratio of Equity to Debt. The amounts

are used as presented in the Statement of Financial Position. For 2024 and 2023 the index is as follows:

Leverage =

Return on Invested Capital: It is the performance rate of the returns of the equity and the loans invested and is

measured by the ratio of operating result before interest and tax to equity plus loans and borrowings. The amounts

are used as presented in the Statement of Profit and Loss and the Statement of Financial Position. For the fiscal

year 2024 and the prior year, the ratios for the Group and the Company are as follows:

Return on Equity: It is a measure of return on equity of the entity and is measured by the net profit / (loss) after

tax to the total equity. The amounts are used as presented in the Statement of Profit and Loss and the Statement

of Financial Position. For the years 2024 and 2023, the ratio is as follows:

Pursuant to the 8.11.2021 issuance of the Common Bond Loan of EUR 250 million tradeable in the Athens Stock

Exchange in the Bonds Category/Main Market with ISIN: GRC281121BD8, the Group undertook the

commitment of reporting the following ratios at consolidated level. For purposes of transparency and uniformity

the ratios are presented at company level as well.

which is defined by the Group as net results divided by total equity and minority interests. The Board of Directors

also monitors the level of dividends distributed to holders of common shares.

The Board of Directors tries to maintain equilibrium between higher returns that would be feasible through higher

borrowing levels and the advantages and security offered by a strong and robust capital structure.

The Group does not have a specific plan for own shares purchase.

There were no changes in the approach adopted by the Group in how capital was managed during the financial

year.

and for each order of raw materials from suppliers, at the point of time the LME price is agreed with the suppliers,

a short position is taken on the LME for the corresponding quantity using derivatives, where and if these daily

purchases and sales cannot be offset by each other (back-to-back). Thus, the Group and the Company cover

purchases and sales with cash-flow hedging operations, ensuring that the fluctuation of the price of metals in the

international markets will not affect the operating cash flows and consequently the regular, sustainable and optimal

operation of the Group and the Company.

More specific, for cash flows hedges related to natural gas, the Group and the Company conduct Commodity

Forward Start Swaps to hedge the risk of fluctuations in natural gas prices, that is embedded in future gas purchases.

Also, the Company, from its operations, is exposed to fluctuations in gas prices as a component of production costs.

The risk of natural gas price fluctuations is covered by cash flow hedging using Commodity Forward Start Swaps

of the hedging relationship and on an ongoing basis.

the risk of changes in reference interest rates, as part of the risk management strategy. More specifically, the Group

and the Company proceed with interest rate swaps floating to fixed rate, for a portion of their long-term

borrowings. Interest rate swaps designated as cash flow hedges involve receiving floating rate amounts from a

counterparty in exchange for the Company and the Group making fixed rate payments during the term of these

agreements without exchanging the underlying amount of their financial obligations. This results in any change in

the hedged item causing an equal but opposite change in the cash flows of the hedging instrument. The Group

documents the existence of an economic relationship between the hedged item and the hedging instrument based

on reference interest rates, time periods, maturity dates and nominal values.

stemming mainly from rising energy, raw material and transportation prices. The price environment for natural gas

and in general energy in the Eurozone is inextricably linked to the geopolitical conflicts between Russia and Ukraine.

The challenges by climate change could lead to damage of assets and infrastructure, shortages of raw materials,

fluctuations in raw material prices and supply chain disruptions. Recognizing the current challenges of climate

change, energy efficiency and the circular economy, the Group and the Company are committed to managing and

addressing these challenges by continuously reducing their carbon emissions and environmental footprint through

the implementation of specific policies, procedures and initiatives. For this reason, Elvalhalcor assesses the

potential risks and the potential benefits of the opportunities with the aim of taking all the necessary measures to

attached to the attached annual report.

Both the Aluminium and Copper sectors have opportunities linked to new low-carbon and circular economy

products, such as products with increased recycled content, energy-efficient heating and ventilation systems

(HVAC) and digital technologies, in addition to opportunities related to the development of products that enable

decarbonisation due to changing consumer preferences.

Based on the above, the financial effects have been considered in the accounting estimates to the extent that they

can be assessed at present. In addition, the challenges associated with climate commitments have been examined

and Elvalhalcor companies have not identified additional issues that may have a material impact on their financial

statements.

to pay guarantees and purchase CBAM certificates. Certificates cannot be traded on the EU ETS market and will

initially be subject to a "rights free" scheme (similar to the EU ETS regime). It is therefore becoming clear that the

CBAM will affect businesses in the EU and worldwide both in terms of business operation and strategic decision-

making, while the effects may be direct or indirect.

The Group and the Company take all necessary measures to assess the financial impact of the CBAM in the supply

On February 10, 2025, United States President Donald Trump signed an executive order imposing 25% tariffs on

steel and aluminum imports, effective March 12, 2025. This decision is a continuation of US trade policy, aimed at

protecting domestic industry and reducing trade deficits.

The new tariffs will be applied to all countries, without exceptions, and may affect the global economic environment

10% of this.

Despite the limitations in the global economy and logistics, the implementation of investment programs was

performed in accordance with the program, while the uninterrupted operation of the production continued for

another year, which was an advantage over many Europeans competitors. The availability and prices of the basic

raw materials follow and are determined by international market and are not affected by the domestic situation in

any individual country. Elvalhalcor has multiple alternative sources of supply of raw materials and acts proactively

by increasing safety stocks in key materials, where and when this becomes necessary, thus dealing with any rhythm

disturbance in supply chains are observed.

Ιt is worth mentioning that Elvalhalcor perform sales to companies with long-term partnerships and presence in

of macroeconomic conditions on operations.

The first signs of 2025 present demand remaining subdued across most sectors of the economy, with growth in the

Eurozone remaining anaemic. Inflation and key benchmark interest rates are expected to continue their downward

trajectory. The expiration of the gas transit agreement between Russia and Ukraine creates uncertainty about

whether prices will remain low next year. Regarding the imposition of tariffs in the US, sales to America represent