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Corporate Presentation July 2010

Corporate Presentation July 2010. Agenda. Ι Company Profile ΙΙ Product Range ΙΙΙ Strategy Ι V Expansion in the Balkans V Investment Program VI Focus on international sales VII Financial & Market data. Ι. Company Profile : History milestones Group Premises Group Structure

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Corporate Presentation July 2010

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  1. Corporate Presentation July 2010

  2. Agenda • ΙCompany Profile • ΙΙProduct Range • ΙΙΙStrategy • ΙVExpansion in the Balkans • VInvestment Program • VI Focus on international sales • VII Financial & Market data

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

  4. History – Milestones 2007: Construction of three new Steel Service Centers (Inofyta, Bucharest and Sofia) is completed. 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 80% PANELCO S.A. 2001 100% SIDMA BULGARIA 2005 SIDMA Group Structure

  8. SIDMA - Shareholders

  9. Competitive Advantage SIDMA Group • Diversified Customer Base: The company has a well-diversified customer base (no customer accounts for more than 2%) • Synergies: Synergies in purchasing and distribution with shareholder Sidenor Group, the strongest steel group in Greece. • Expansion in Balkan growth markets alongside Sidenor : Bulgaria and Romania face high development growth while the present consumption for steel per capita is 175 kilos and 195 kilos respectively. In the industrially advanced countries it exceeds 550 kilos/capita. • Strong Management Team: The company is run by experienced management. • Strong distribution network: The company covers sales countrywide through a strong distribution network. • Market Leader: The company holds the leading position in the Greek market in terms of sales since a long time.

  10. SIDMA S.A. at a glance Producer Customer SIDMA S.A. Products: Flat, Long, Wire Products & Panels. • Construction: • Building and civil engineering • Merchants: • Retail Services: Slitting & Cutting,Shot blasting & Painting, Polishing, Plasma & Oxygen cutting. • 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. • 345 employees. • Key financials • FY 2008Sales: € 300 million • FY 2009 Sales: € 160 million • Others: • Public Sector • Metal products • Shipbuilding • Etc.

  11. ΙI. Product Range • 1. Flat Products • 2. Long Products • 3. Wire Products • 4. Panels

  12. Product Range • Merchant Bars • Profiles • Rectangular Hollow Sections • Construction Tubes • Hot Rolled Coils & Sheets • Cold Rolled Coils & Sheets • Pickled & Oil Coils & Sheets • Galvanized Coils & Sheets • Corrugated &Trapezoidal Sheets • Prepainted Coils & Sheets • Stainless Steel Coils & Sheets Long Products Flat Products Panels Wire Products • Galvanized Wire • Galvanized Fencing Mesh • Black Wire

  13. ΙII. Strategy 1. Risk Management 2. Growth Management

  14. Risk Management • Effective risk management is centralto SIDMA’s success and growth. • Sources of risk: Source Action Client Default Credit Insurance 82% receivables is 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 Capital Structure Total Loans / Equity<1.5 Use partof available credit lines Funds for expansion • Risks are evaluatedandmanagedwithin a common framework.Each department / unit identifies and takes measures against the risks it faces.

  15. Strategy for Growth 1 Establish an important presence through our new Steel Service Centersin Bulgaria and Romania 2 Increase market share with important end users 3 Enter new markets in the Balkan region 4 Develop new products and servicesin the Greek market to increase ties with end users and add value 5 Enhance existing and develop new strategic partnershipswith major steel producers

  16. IV. Expansion in the Balkans

  17. ROMANIA BULGARIA ALBANIA GREECE Presence in the Balkans Future Expansion Actual Presence Future Expansion

  18. Expansion in the Balkans Goal: To create a network of modern Steel Service Centers Countries of first phase of expansion: Bulgaria and Romania Countries of second phase of expansion: Albania Strategic Alliance in above countries: with SIDENOR and some of our main suppliers Business opportunities: • Better growth rates than local market. • Potential increase in demand for steel products (infrastructure modernization, metal construction, white appliances, ship-building). • Insufficient number of large and organized steel service centers. Comparative Advantages: • Know-how & long experience in the steel sector. • Important position of the SIDENOR Group in the Balkans.

  19. V. The Investment Program VI. Focus on international sales

  20. Investment Plan of the last six years Company investments in fixed assets 2004 – 2009: € 32m. Expected benefits € thousands. • Preservation of competitive advantage in the market. • Better customer service • Decrease in operating costs • Increase in value added • Installation of new equipment • Wider product range • Increase company turnover & purchasing power Company investments in Subsidiaries 2001 – 2009: € 15m.

  21. Focus on international sales Sales Jan – Dec 2008 Highlights Sales Jan – Dec 2009 • Although sales decreased both domestically and internationally, the % on sales coming from abroad increased by 18% (from 17% to 20%). • International sales comprise of SIDMA & PANELCO exports as well as SIDMA Romania and SIDMA Bulgaria. • Gradual development of sales network in the Balkan area based on the increasing presence of our Companies in Bulgaria and Romania. Group in € million 17% on total 50,0 250,0 20% on total 32,1 125,7 Domestic International Domestic International

  22. VII. Financial & Market data

  23. Steel Producers Results 2008-2009 (€ Millions)

  24. Steel Service Center Results 2008-2009 ($Millions)

  25. Depreciation 2,24 2,31 3% 0,69 0,7 1% 0,16 0,25 51% 0,38 0,4 3% 3,47 3,65 5% Main FY 2009 figures SIDMA S.A. PANELCO S.A. SIDMA ROMANIA SIDMA BULGARIA GROUP 2008 2009 Δ % 2008 2009 Δ % 2008 2009 Δ % 2008 2009 Δ % 2008 2009 Δ % (€ m) Turnover 223,0 113,8 -49% 25,2 16,6 -34% 21,3 19,3 -9% 20,5 10,9 -47% 287,1 157,8 -45% Gross Margin 13,8 -3,6 4,7 1,9 -59% 1,6 0,3 -83% 1,4 -0,3 21,4 -1,5 Profit before Tax 0,3 -15,7 2,5 -0,1 -1,9 -2,8 -1,0 -2,4 -0,7 -21,0 0,4 -12,6 2,0 -0,2 -1,6 -2,4 -1,0 -2,4 -0,8 -17,6 Profit after Tax 7,0 2,5 -64% 0,19 0,5 145% 6,8 1,0 -85% 3,0 1,0 -67% 16,99 5,0 -71% CAPEX

  26. Please send us a brief e-mail with your contact details to add you to the investor relations list. • Institutional Investors and Analysts: • Tel: +30 210 3498221 / Fax: +30 210 3498281 • E-mail: ir@sidma.gr • Internet: www.sidma.gr CFO: Michael Samonas

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