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Corporate Presentation Mar 2014

Corporate Presentation Mar 2014. Agenda. Ι Company Profile ΙΙ Customer Base & Product Range ΙΙΙ Sector Data IV Strategy. Ι. Company Profile : History milestones Group Premises Group Structure Shareholders. History – Milestones.

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Corporate Presentation Mar 2014

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  1. Corporate Presentation Mar 2014

  2. Agenda • ΙCompany Profile • ΙΙCustomer Base & Product Range • ΙΙΙSector Data • IV Strategy

  3. Ι. Company Profile : • History milestones • Group Premises • Group Structure • Shareholders

  4. History – Milestones 2007: Construction of three new Steel Service Centers (Inofyta, Bucharest and Sofia) is completed. 2012: Distribution back to Aspropyrgos. Production in Inofyta is temporarily stopped. 1991: SIDMA begins its transformation to a Steel Service Center. The first processing lines are installed. 1931: SIDMA (Steel Trading of Macedonia) is founded in Thessaloniki by the Amariglio brothers. 2009: Central Offices move to Inofyta. 1999: SIDMA joins forces with SIDENOR group. 2004: Export activity to the Balkans begins. 1950-1990: The headquarters move to Athens. SIDMA establishes its leading position in the sector 2008: Production moves from Aspropyrgos to Inofyta. 2010: Distribution moves from Aspropyrgosto Inofyta. 1996-1998: One merger and one acquisition in the sector. 2001: SIDMA acquires the majority of PANELCO S.A., a manufacturer of polyurethane steel sandwich panels. 2005: SIDMA enters the Athens Stock Exchange. Subsidiaries in Bulgaria and Romania are founded.

  5. Group Premises Aspropyrgos (Athens Area) Inofyta (Athens Area) Oreokastro (Thessaloniki Area) PANELCO S.A. (Lamia) SIDMA Bulgaria (Sofia) SIDMA Romania (Bucharest)

  6. Group Premises

  7. SIDMA SA Establishment : 1931 100% SIDMA ROMANIA 2005 94% PANELCO S.A. 2001 100% SIDMA BULGARIA 2005 SIDMA Group Structure

  8. SIDMA - Shareholders VIOHALCO S.A. is the holding company of the largest Greek metals processing group. Established in 1937, VIOHALCO S.A. has been listed on the Athens Stock Exchange since 1947. VIOHALCO S.A. participates in approximately 90 companies, six of which (ELVAL S.A., ETEM S.A., HALCOR S.A., HELLENIC CABLES S.A., SIDENOR S.A., and CORINTH PIPEWORKS S.A.) are listed on the Athens Stock Exchange and are leading companies in their sectors. Annual turnover exceeds€ 3 billion. With production facilities in Greece, Bulgaria, Romania and the United Kingdom, the companies specialize in the manufacture of copper (HALCOR S.A. and SOFIA MED S.A.), aluminum (ELVAL S.A., ETEM S.A. and BRIDGNORTH ALUMINUM Ltd) and steel products (SIDENOR S.A., STOMANA INDUSTRY S.A. and CORINTH PIPEWORKS S.A.) as well as cables (HELLENIC CABLES S.A. and ICME ECAB S.A.). Public Viohalco 25,0% Group 35,0% Pizante - Amariglio Families 40,0%

  9. SIDMA S.A. at a glance Producer Customer SIDMA S.A. Products: Flat, Long, Wire Products & Panels. • Construction: • Building and civil engineering Services: Cutting & Slitting,Shot blasting & Painting, Polishing, Plasma & Oxygen cutting. • Merchants: • Retail • Manufacturing : • Machinery • White Appliances • Mechanical Engineering • Leading steel distributor in the Greek and Balkan markets combined. • Distribution network with 5 warehouses in Greece and the Balkans. • 220 employees. • Key financials • FY 2011Sales: € 143 million • FY 2012 Sales: € 132 million • FY 2013 Sales: € 128 million • Others: • Public Sector • Metal products • Shipbuilding

  10. ΙI. Customer Base & • Product Range

  11. Customer Base • More than 1,400 active customers • No customer represents more than 2% of the total annual turnover • Manufacturers and industries, utilizing steel productsas raw material for their production. • Traders of steel and related materials. • Constructors of metallic parts and mechanical industry. • Construction companies and joint ventures for public and private projects.

  12. Product Range • Hot Rolled • Cold Rolled • Pickled & Oiled • Galvanized • Corrugated &Trapezoidal • Prepainted • Stainless Steel • Merchant Bars • Profiles • Hollow Sections • Construction Tubes Long Products Flat Products (Coils & Sheets) Panels Wire Products • Galvanized Wire • Galvanized Fencing Mesh • Black Wire Mainly used as cladding for industrial buildings.

  13. Typical Product & Services Corrugated Products Oxygen & Plasma cutting Cutting to Length Bending

  14. Sector Information1. Steel Cycle and EBITDA / cash flow relationship • 2. EU - Apparent Consumption

  15. The Company buys and sells products at spot prices generally Sales increase as a function of the steel price inflation environment Cost of material are based on an average cost method for inventory and therefore lag the steel price increase This time lag creates accounting windfall profits (windfall losses in a decreasing steel price environment) inflating (deflating) EBITDA Assuming stable inventory volume cash flow is impacted by higher NWC needs The windfall profits (losses) are mirrored by inventory book value increases (decreases) Steel Cycle and EBITDA / cash flow relationship Theoretical relationship* Comments *Assuming stable inventory volumes

  16. EU - Apparent Consumption 2004 - 2013E IN 2013, EU MARKET SUPPLY IN FINISHED STEEL PRODUCTS (EXCL.SEMIS) IS FORECASTED TO BE 133 MIO. TONS.SINCE 2007 ABOUT 50 MIO TONS WILL HAVE DISAPPEARED FROM EU MARKET SUPPLY 2013 ESTIMATED STEELDEMAND WILL AVERAGE72% OF 2007 184 184 175 7% 170 163 152 137 145 6% 132 9% 133 32% 1% 19% 115 2004 2005 2006 2007 2008 2009 2010 2011 F2012 Ε2013 SOURCE: EUROMETAL FORECAST

  17. ΙII. Strategy 1. Risk Management

  18. Risk Management • Effective risk management is centralto SIDMA’s success and growth. • Sources of risk: Source Action Client Default Credit Insurance 65% receivables is presently covered Market Cyclicality Keep low inventories Long term relationship with suppliers More value added products Market Leadership challenge Broad sales network Diversified customer base Focus on sales volume in order to maintain highpurchasing power Liquidity Improve DSO by more that 45 days since 2008 Keep adequate cash reserves Enough funds to weather the storm

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