Business segments Enter/ Full Financial Financial Exit Screen Highlights R&D&I and Statements 2020 Aluminium Copper Cables Steel pipes Steel Real estate Technology 2020 ● ● ● ● ● ● ● ● ● Annual Report 2020 Business segments Enter/ Full Financial Financial Exit Screen Highlights R&D&I and Statements 2020 Aluminium Copper Cables Steel pipes Steel Real estate Technology 2020 ● ● ● ● ● ● ● ● ● Copper Steel Pipes page 22 page 36 Aluminium Cables page 16 page 30 © Noble Energy © Noble Energy Business segments Enter/ Full Financial Financial Exit Screen Highlights R&D&I and Statements 2020 Aluminium Copper Cables Steel pipes Steel Real estate Technology 2020 ● ● ● ● ● ● ● ● ● Table of contents A. Viohalco 2 B. Message from the President of the Board of Directors 4 C. Business segments 6 D. Financial highlights 2020 10 E. Business segments review 16 F. Subsequent events 58 G. Risks and uncertainties 60 H. Non-financial information report 66 I. Corporate governance statement 80 J. Appendix – Alternative Performance Measures (APMs) 96 K. Consolidated financial statements 2020 and Auditor’s report 102 L. Declaration of responsible persons 194 M. Condensed statutory balance sheet and income statement 195 N. Glossary 198 Real Estate page 48 Steel R&D&I and page 42 Technology page 52 Business segments Enter/ Full Financial Financial Exit Screen Highlights R&D&I and Statements 2020 Aluminium Copper Cables Steel pipes Steel Real estate Technology 2020 ● ● ● ● ● ● ● ● ● A. Viohalco Viohalco S.A. (‘Viohalco’) is the Belgium-based holding company of leading metal processing companies which sustainably manufacture aluminium, copper, cables, steel and steel pipes products. Viohalco companies supply high-quality, innovative products to a diverse range of markets, including building and construction, packaging (rigid, semi-rigid and flexible), transportation (automotive, shipbuilding and rail), energy and power networks (offshore energy, utilities and power grids, renewable energy, gas and liquid fuels), HVAC&R (heating, ventilation, air conditioning and refrigeration), water supply, telecommunications, printing, along with various industrial applications. Viohalco’s dedicated research, development and innovation (‘R&D&I’) and technology segment focuses on product innovation, industrial research, technological development, engineering applications and ERP application services, to ensure its companies maintain superior product and service quality. Viohalco and its companies also own substantial real estate, predominantly in Greece, which generates income through commercial development. Companies in the real estate segment also provide a wide range of additional real estate, property and facility management services to other Viohalco subsidiaries. Products Production facilities across Greece, Bulgaria, the United Kingdom, Romania, Russia, North distributed in Macedonia, the Netherlands and Turkey are supported by a strong marketing and sales network comprising commercial subsidiaries, agents and distributors, enabling the Viohalco companies to provide comprehensive customer support on a global scale. Across all segments, the Viohalco companies offer products and services that closely align 105 with current global sustainability megatrends. This not only reflects their ability to meet countries the evolving needs and commitments of customers, but also their drive, as responsible corporate citizens, to operate in a sustainable manner. Such megatrends include a growing commitment to a low carbon, circular economy, reflected in rising demand for easily recyclable products, with high recycled content. Other megatrends include a clear transition to climate neutrality, away from fossil-fuel consumption through the • Viohalco S.A. is listed on use of renewable energy sources, sustainable urbanization reflected in the rise of energy- efficient buildings and e-mobility, and ongoing technological advancements, including Euronext Brussels (VIO) digitalization. A significant share of Viohalco companies’ products and services caters directly to these trends, for instance recyclable aluminium packaging utilizing secondary raw materials, and Athens Stock aluminium in the manufacture of lightweight, energy efficient products, copper products with high recycled content for use in energy efficiency and digital applications, circular construction Exchange (BIO). steel products, cables to facilitate green energy transfer, steel pipes to support the energy transition and activities such as the development of more environmentally-friendly buildings. 2 VIOHALCO | ANNUAL REPORT 2020 Business segments Enter/ Full Financial Financial Exit Screen Highlights R&D&I and Statements 2020 Aluminium Copper Cables Steel pipes Steel Real estate Technology 2020 ● ● ● ● ● ● ● ● ● Viohalco operates through seven business segments: Aluminium page 16 Copper page 22 Cables page 30 Steel pipes page 36 Steel page 42 Real estate page 48 Commercial R&D&I and network in Technology 21 page 52 countries • Cenergy Holdings S.A., a • ElvalHalcor S.A., a subsidiary of subsidiary of Viohalco, is listed Viohalco, is listed on Athens on Euronext Brussels and Athens Stock Exchange (ELHA). Stock Exchange (CENER). VIOHALCO | ANNUAL REPORT 2020 3 Business segments Enter/ Full Financial Financial Exit Screen Highlights R&D&I and Statements 2020 Aluminium Copper Cables Steel pipes Steel Real estate Technology 2020 ● ● ● ● ● ● ● ● ● B. Message from the President of the Board of Directors 2020 was a challenging year, not only for Viohalco and its companies, The copper segment delivered a robust performance during the year, but for businesses, societies, and countries across the globe. The despite the pandemic, with volumes even slightly increasing compared emergence of the Covid-19 pandemic at the start of the year had a with 2019. Halcor managed to strengthen market share in its key profound effect on businesses and financial markets worldwide. operating markets and increase profitability, by developing a wide range of products to be shipped across a range of geographical markets, both The immediate priority of all Viohalco companies was the health and within and outside Europe, and leveraging any opportunities presented. wellbeing of their people, and measures were swiftly put in place to ensure that all employees and other stakeholders across all businesses The cables segment’s performance in 2020 reflects robust growth in its remain safe and healthy. Working practices were adapted across projects’ business. The successful and unimpeded execution of operations to significantly reduce infection risk, allowing production to technically complex subsea and land cables energy projects was the continue safely in all sites. driver for the increased profitability, along with sustained high utilization levels across production units. Hellenic Cables continued to tender for Thanks to actions taken to mitigate the effects of the crisis, and the projects across different geographies and succeeded in securing several resilience of its diversified business model, Viohalco companies delivered awards for new projects and frame agreements, both in the offshore and a robust performance in 2020. Consolidated revenue for the year was onshore sector. EUR 3,850 million, compared with EUR 4,198 million in 2019. Consolidated adjusted EBITDA (a-EBITDA) amounted to EUR 295 million For Corinth Pipeworks, the negative impact of the pandemic was in 2020, while consolidated profit before income tax amounted to EUR amplified by the steep decline in oil and gas prices observed throughout 59 million, up by 86% year-on-year (2019: EUR 32 million). 2020, that led to the postponement of many exploration projects. Adverse conditions in global energy markets during the first half of 2020, In the aluminium segment, the installation of the new four-stand had an impact on the performance in the second half. To mitigate this tandem rolling mill at Elval’s Oinofyta, Greece plant was successfully impact, the segment undertook a cost optimization programme and was completed, despite Covid-19-related lockdown restrictions, and the mill able, despite these challenges, to strengthen its presence in existing and commenced operations in the third quarter. As a result of this major new markets throughout the year. investment, the aluminium segment is now able to significantly increase its production capacity for final products, marking a new era for the The market environment for the steel segment at the start of 2020 segment and paving the way to exploit opportunities in new markets. was challenging, and the impact of the pandemic further In addition, in response to increased demand for more sustainable, compounded these difficulties. Demand and selling prices declined recyclable, lightweight and energy efficient materials in markets, such throughout the year, thus the segment implemented a cost reduction as packaging and transportation, Elval initiated the investment in a six- programme and adjusted production levels accordingly. Gradual high aluminium cold rolling mill and automated lacquering line, in line signs of a recovery in construction activity were apparent in the with the aluminium segment’s wider investment plan. second quarter, followed by recovery in industrial manufacturing in 4 VIOHALCO | ANNUAL REPORT 2020 Business segments Enter/ Full Financial Financial Exit Screen Highlights R&D&I and Statements 2020 Aluminium Copper Cables Steel pipes Steel Real estate Technology 2020 ● ● ● ● ● ● ● ● ● October. As a result of this,