Q2 2026 Metlen Energy & Metals PLC Earnings Call

August 6, 2026

Speaker #1: Thank you for standing by. I'm Yaeli, your course call operator. Welcome, and thank you for joining the MetLend Energy and Metals PLC conference call to present and discuss a MetLend handoff 2026 financial results.

Operator: Ladies and gentlemen, thank you for standing by. I am Geli, your Chorus Call operator. Welcome, and thank you for joining the Metlen Energy & Metals PLC conference call to present and discuss the Metlen H1 2026 financial results. At this time, I would like to turn the conference over to Mr. Evangelos Mytilineos, Executive Chairman, Mr. Christos Gavalas, Group CEO, Ms. Fotini Ioannou, Group CFO, and other senior executives. Mr. Mytilineos, you may now proceed.

Operator: Ladies and gentlemen, thank you for standing by. I am Geli, your Chorus Call operator. Welcome, and thank you for joining the Metlen Energy & Metals PLC conference call to present and discuss the Metlen H1 2026 Financial Results. At this time, I would like to turn the conference over to Mr. Evangelos Mytilineos, Executive Chairman, Mr. Christos Gavalas, Group CEO, Ms. Fotini Ioannou, Group CFO, and other senior executives. Mr. Mytilineos, you may now proceed.

Speaker #1: At this time, I would like to turn the conference over to Mr. Vasilos Mytilinaos, Executive Chairman. Mr. Hristos Gavallas, Group CEO. Ms. Fotini Ioannou, Group CFO.

Speaker #1: And other senior executives. Mr. Mytilinaos, you may now proceed.

Speaker #2: Good afternoon to, great friends. Good morning to our UK, US, and other European—West European—friends. We thank you all for joining us today for MetLend's first half 2026 results conference call.

Evangelos Mytilineos: Good afternoon to Greek friends. Good morning to our UK, US, and other West European friends. We thank you all for joining us today for Metlen's H1 2026 results conference call. The presentation materials have already been published and are available on our website. Joining me today are Christos Gavalas, Group Chief Executive Officer, Fotini Ioannou, Group CFO, and members of the executive team. Let me begin by saying that the H1 2026 marks an important step forward for Metlen. 15 months ago, we outlined a clear medium-term roadmap during our capital markets day in London. Today, I'm pleased to say that after setbacks suffered the previous time, we are firing on all cylinders to execute against that plan successfully. I hope that the underlying strength of our business is becoming increasingly visible to the community.

Speaker #2: The presentations materials have already been published and are available on our website. Joining me today are Hristos Gavallas, Group Chief Executive Officer Fotini Ioannou, Group CFO, and members of the executive team.

Speaker #2: Let me begin by saying that the first half of 2026 marks an important step forward for MetLend. Fifteen months ago, we outlined a clear medium-term roadmap during our capital markets day in London.

Speaker #2: Today, I'm pleased to say that after setbacks, suffered the previous time, we are firing on all cylinders to execute against that plan successfully, and I hope that the underlying strength of our business is becoming increasingly visible to the community.

Speaker #2: Our performance during the first six months of the year demonstrates the resilience of our integrated business model and the quality of the industrial platform we have built over the years.

Evangelos Mytilineos: Our performance during the first 6 months of the year demonstrates the resilience of our integrated business model and the quality of the industrial platform we have built over the years. Sales increased by 11% to almost EUR 4 billion. Group EBITDA rose by 23% to EUR 550 million. Net profit attributable to shareholders increased by 23% to EUR 330 million. Perhaps equally important, operating cash flow exceeded EUR 800 million, allowing us to materially strengthen our balance sheet and reduce net debt by approximately half a billion euros within 6 months. Our leverage ratio improved significantly to 1.7 times net debt to EBITDA, demonstrating both the strong cash-generating ability of the group and our continued financial discipline. Fotini will tell you more about the numbers right after. Looking at our businesses individually, energy continues to perform strongly.

Evangelos Mytilineos: Our performance during the first six months of the year demonstrates the resilience of our integrated business model and the quality of the industrial platform we have built over the years. Sales increased by 11% to almost EUR 4 billion. Group EBITDA rose by 23% to EUR 550 million. Net profit attributable to shareholders increased by 23% to EUR 330 million. Perhaps equally important, operating cash flow exceeded EUR 800 million, allowing us to materially strengthen our balance sheet and reduce net debt by approximately half a billion euros within six months. Our leverage ratio improved significantly to 1.7x net debt to EBITDA, demonstrating both the strong cash-generating ability of the group and our continued financial discipline. Fotini will tell you more about the numbers right after. Looking at our businesses individually, energy continues to perform strongly.

Speaker #2: Sales increased by 11% to almost 4 billion. Group EBITDA rose by 23% to 550 million, and net profit attributable to shareholders increased by 23% to 313 million.

Speaker #2: Perhaps equally important, operating cash flow exceeded 800 million, allowing us to materially strengthen our balance sheet and reduce net debt by approximately half a billion euros within six months.

Speaker #2: Our leveraged ratio improved significantly to 1.7 times net debt to EBITDA, demonstrating both a strong cash generating ability of the group and our continued financial discipline.

Speaker #2: For Fotini, we'll tell you more about the numbers right after. Looking at our businesses individually, energy continues to perform strongly. We have successfully completed the simplification of the segment into two integrated platforms, creating a more focused structure around our integrated utility business and our renewables storage and energy transition activities.

Evangelos Mytilineos: We have successfully completed the simplification of the segment into 2 integrated platforms, creating a more focused structure around our integrated utility business and our renewables storage and energy transition activities. We are seeing already the benefits of this approach through improved coordination, stronger execution, and better capital allocation. At the same time, our partnership with PPC Battery Storage creates a new growth avenue and further strengthens our position in one of Europe's most promising energy markets. In metals, the strategic importance of our investment program continues to grow. During the period, we secured EIB financing and additional institutional support for Europe's first industrial-scale gallium production facility. More importantly, though, but shows we signed our first commercial gallium contract covering a significant portion of future production and providing a strong market validation of both the project and our broader critical and rare metals strategy.

Evangelos Mytilineos: We have successfully completed the simplification of the segment into two integrated platforms, creating a more focused structure around our integrated utility business and our renewables storage and energy transition activities. We are seeing already the benefits of this approach through improved coordination, stronger execution, and better capital allocation. At the same time, our partnership with PPC Battery Storage creates a new growth avenue and further strengthens our position in one of Europe's most promising energy markets. In metals, the strategic importance of our investment program continues to grow. During the period, we secured EIB financing and additional institutional support for Europe's first industrial-scale gallium production facility. More importantly, though, but shows we signed our first commercial gallium contract covering a significant portion of future production and providing a strong market validation of both the project and our broader critical and rare metals strategy.

Speaker #2: We are seeing already the benefits of this approach through improved coordination, stronger execution, and better capital allocation. At the same time, our partnership with PPC Battery Storage creates a new growth avenue and further strengthens our position in one of Europe's most promising energy markets.

Speaker #2: In Metals, the strategic importance of our investment program continues to grow. During the period you secured—we secured EIB financing and additional institutional support for Europe's first industrial-scale gallium production facility.

Speaker #2: More importantly, though, that the H1 event but shows we signed a first commercial gallium contract covering a significant portion of future production and providing a strong market validation of both the project and our broader critical and rare metals strategy.

Speaker #2: This milestone also marks the launch of MCRM, MetLend Critical and Rare Metals, a new dedicated platform bringing together critical raw materials and circular metals under a single strategic structure.

Evangelos Mytilineos: This milestone also marks the launch of MCRM, Metlen Critical and Rare Metals, a new dedicated platform bringing together critical raw materials and circular metals under a single strategic structure. We believe these activities share common technological, operational, and commercial characteristics, creating a unique growth platform position at the center of Europe's strategic autonomy agenda. Following the successful commissioning of the pilot plant and the achievement of recovery rates exceeding expectations, we're steadily advancing towards the commercialization phase, creating a new source of high-value, sustainable metals production for the group. M Technologies also continues to progress rapidly. The expansion of our defense industrial lab in Volos is advancing ahead of the targets we communicated to investors, while new international partnerships continue to strengthen our position within the European defense ecosystem.

Speaker #2: We believe this activity's shared common technological, operational, and commercial characteristics creating a unique growth platform position at the center of Europe's strategic autonomy agenda.

Speaker #2: Following the successful commissioning of the pilot plants and the achievement of recovery rates exceeding expectations, we are steadily advancing toward the commercialization phase creating a new source of high value sustainable metals production for the group.

Speaker #2: M Technologies also continues to progress rapidly. The expansion of our defense industrial lab in Volos is advancing ahead of the targets we communicated to investors while new international partnerships continue to strengthen our position within the European defense ecosystem.

Speaker #2: As you know very recently, the business secured an important new contract with Hutris, further enhancing visibility and validating the growth trajectory of the platform in the international markets as well.

Evangelos Mytilineos: As you know, very recently, the business secured an important new contract with Hutris, further enhancing visibility and validating the growth trajectory of the platform in the international markets as well. As the scope and technological focus of the business continue to expand, we are also evaluating the evolution of the brand towards Advanced Metal Technologies, a name that better reflects the broadening capabilities and strategic ambitions of this fast-growing segment. As geopolitical developments continue to reshape defense priorities across Europe, we believe this business is exceptionally well-positioned for long-term growth. Infrastructure and concessions is emerging as another important growth driver. EBITDA more than doubled during H1, supported by strong project execution and an expanding backlog, further validating our strategy of building a diversified industrial group with multiple sources of sustainable earnings growth. At the corporate level, our presence in London continues to strengthen.

Evangelos Mytilineos: As you know, very recently, the business secured an important new contract with HOUTRIS, further enhancing visibility and validating the growth trajectory of the platform in the international markets as well. As the scope and technological focus of the business continue to expand, we are also evaluating the evolution of the brand towards Advanced Metal Technologies, a name that better reflects the broadening capabilities and strategic ambitions of this fast-growing segment. As geopolitical developments continue to reshape defense priorities across Europe, we believe this business is exceptionally well-positioned for long-term growth. Infrastructure and concessions is emerging as another important growth driver. EBITDA more than doubled during H1, supported by strong project execution and an expanding backlog, further validating our strategy of building a diversified industrial group with multiple sources of sustainable earnings growth. At the corporate level, our presence in London continues to strengthen.

Speaker #2: As the scope and technological focus of the business continue to expand, we are also evaluating the evolution of the brand toward advanced metal technologies.

Speaker #2: A name that better reflects the broadening capabilities and strategic ambitions of this fast-growing segment. As geopolitical developments continue to reshape defense priorities, across Europe we believe this business is exceptionally well positioned for long-term growth.

Speaker #2: Infrastructure and concessions is emerging as another important growth driver. EBITDA more than doubled during the first half, supported by strong project execution and an expanding backlog, further validating our strategy of building a diversified industrial group with multiple sources of sustainable earning growth.

Speaker #2: At the corporate level, our presence in London continues to strengthen. Our inclusion in the FTSE 100 and the broadening of our international shareholder base represent important milestones for the company and a recognition of the transformation achieved over recent years.

Evangelos Mytilineos: Our inclusion in the FTSE 100 and the broadening of our international shareholder base represent important milestones for the company and a recognition of the transformation achieved over recent years. The launch of our share buyback program further reflects our confidence in the long-term value of the business and our commitment to shareholder returns. Looking ahead, we remain confident in our medium-term objectives. The structural themes supporting our growth remain intact. Energy security, critical raw materials, industrial resilience, defense, and infrastructure. In all these areas, Metlen is investing, expanding, and building capabilities that we believe will continue to create significant value for the shareholders over the coming years. With that, I will now hand over to Fotini to guide you through the financial performance in more detail, and then we'll be back to you to discuss your questions and remarks. Thank you.

Speaker #2: The launch of our share buyback program further reflects our confidence in the long-term value of the business and our commitment to shareholder returns. Looking ahead, we remain confident in our medium-term objectives.

Speaker #2: The structural themes supporting our growth remain intact, energy security critical raw materials industrial resilience defense and infrastructure, in all these areas MetLend is investing expanding and building capabilities that we believe will continue to create significant value for the shareholders over the coming years.

Speaker #2: With that, I will now hand over to Fotini to guide you through the financial performance in more detail and then we'll be back to you to discuss your, questions and remarks.

Speaker #2: Thank you.

Speaker #1: Thank you, Chairman. Thank you, Chairman, and, good morning, good afternoon, everyone. as the Chairman highlighted, MetLend delivered a strong performance during the first half of 2026, demonstrating the progress that has been achieved across the group and across all segments.

Fotini Ioannou: Thank you, Chairman. Thank you, Chairman, and good morning, good afternoon, everyone. As the Chairman highlighted, Metlen delivered a strong performance during H1 2026, demonstrating the progress that has been achieved across the group and across all segments. There are three key themes that I would like to underline. First, that you see record level performance in all our key financial metrics, supported obviously by EBITDA increase in all our sectors. Second, and most importantly, this increase in profitability translated into very strong cash generation. Third, the combination of the two allowed us to materially strengthen our balance sheet while obviously continuing to execute our strategic investment program.

Speaker #1: There are three key themes that I would like to underline. First, that we see that you see record-level performance in all our key financial metrics, supported obviously by EBITDA increase in all our sectors.

Speaker #1: Second, and most importantly, this increase in profitability translated into very strong cash generation. And third, the combination of the two allowed us to materially strengthen our balance sheet while obviously continuing to execute our strategic investment program.

Speaker #1: Turning to the group's financial performance and in order to elaborate, a little bit more, our revenues increased by 11% year-on-year to almost $4 billion, and the group EBITDA increased by 23% to $550 million compared to $445.

Fotini Ioannou: Turning to the group's financial performance and in order to elaborate a little bit more, our revenues increased by 11% year on year to almost EUR 4 billion, the group EBITDA increased by 23% to EUR 550 million compared to EUR 445 million. Net profit after minorities increased again by 23% to EUR 313 million, while EPS rose to EUR 2.18 compared with EUR 1.8 in H1 2025. Going to each sector one by one, looking first at energy, our whole energy sector delivered EBITDA of EUR 331 million, increasing by 15% year on year, supported by stronger performance across both of our integrated platforms, the integrated utility platform and M-Reset. Going first to M-Reset, we had a good start to the year with EBITDA coming in at EUR 116 million, roughly 30% higher year on year, with significant achievements across asset rotation, and EPC and operational risk.

Speaker #1: Net profit after minorities increased again by 23% to $313 million, while EPS rose to $2.18 compared with $1.8 in H1 2025. Going to each sector one by one, looking first at energy, our whole energy sector delivered EBITDA of $331 million, increasing by 15% year-on-year, supported by stronger performance across both of our integrated platforms, the integrated utility platform and Enriset.

Speaker #1: Going first to Enriset, we had a good start to the year with EBITDA coming in at $116 million, roughly 30% higher year-on-year. With significant achievements across asset rotation, and EPC and operational risk.

Speaker #1: We completed the sale, as you know, over roughly $280 megawatt solar portfolio in the United Kingdom as part of our asset rotation strategy, demonstrating the group's ability to develop mature and monetized renewable energy assets across geographies.

Fotini Ioannou: We completed the sale, as you know, of a roughly 280 MW solar portfolio in the UK as part of our asset rotation strategy, demonstrating the group's ability to develop mature and monetized renewable energy assets across geographies. Significant progress has also been made across energy storage, as we have communicated in the past, more than 400 MW of BESS projects were energized across Greece and Italy during the period. Most importantly, we made significant progress in executing what used to be the old MPP project, the legacy contract that affected our 2025 performance. We have committed to the market that by the end of this year, we would deliver the vast majority of these projects, we're well in line with that commitment. Since the beginning of the year, we achieved significant milestones in all projects, especially the three problematic ones.

Speaker #1: Significant progress has also been made across energy storage, and as we have communicated in the past, more than 400 megawatts of best projects were energized across Greece and Italy during the period.

Speaker #1: Most importantly, we made significant progress in executing what used to be the old MPP project, the legacy contract that affected our 2025 performance. We have committed to the market that by the end of this year we would deliver the vast majority of these projects, and we're well in line with that commitment.

Speaker #1: Since the beginning of the year we achieved significant milestones, in all projects and especially the three problematic ones. We achieved first-fire milestone at Grudziadz projects, we handed over one of the three OGTs for the Drax contract, and we already reached the readiness to receive waste milestone at Protos in the UK.

Fotini Ioannou: We achieved first fire milestone at the Grudziądz project. We handed over one of the 3 OCGTs for the Drax contract, we already reached the readiness to receive waste milestone at Protos in the UK. As I'm sure you appreciate, as the legacy projects are approaching completion, we recognize additional completion costs in our H1 results as these projects continue to the final stages of delivery. The enhanced controls that we have communicated in the previous conference call, they were introduced in the period following the challenges that we had in 2025, remain firmly in place and bear fruit. Moving on to the fully integrated utility. Also solid performance. EBITDA increased by 8% to EUR 215 million, this performance importantly was achieved despite lower wholesale electricity prices, obviously demonstrates the strength of our integrated model across generation and supply.

Speaker #1: As I'm sure you appreciate, as the legacy projects are approaching completion, we recognized additional completion costs in our H1, results as these projects continue to the final stages of delivery.

Speaker #1: The enhanced controls that we have communicated in the previous conference call, and they were introduced in the period, following the challenges that we had in 2025, remain firmly in place and bear fruit.

Speaker #1: Moving on to the fully integrated utility, also a solid performance. EBITDA increased by 8% to $215 million, and this performance importantly was achieved despite lower wholesale electricity prices and obviously demonstrates the strength of our integrated model across generation and supply.

Speaker #1: Power generation in Greece reached about 4.4 terawatt-hours, while our market share in electricity through Protergia increased to 21.5%, roughly $1.5 $150 basis points versus H1 2025.

Fotini Ioannou: Power generation in Greece reached about 4.4 TWh, while our market share in electricity through Protergia increased to 21.5%, roughly 150 basis points versus H1 2025. Moving to Metals, our EBITDA increased by 15% year on year to almost EUR 150 million, this was obviously driven primarily by stronger aluminum prices and enhanced cost efficiency. As you know, through our hedging ahead strategy, our aluminum and majority of calcined alumina sales for 2026 to 2028 have been hedged at progressively higher prices. Together with the hedging of the key input costs, it provides us with increased visibility on earnings margins and cash flows in the coming years. The group also continued to shift our alumina sales towards contracts linked to LME as opposed to the alumina price index, further supporting the alumina profitability. Final segment, Infra and Concessions, we delivered another very strong result.

Speaker #1: Moving to metals, our EBITDA increased by 15% year-on-year to almost $150 million, and this was this was obviously driven primarily by stronger aluminum prices and enhanced cost efficiency.

Speaker #1: As you know, through our hedging ahead strategy, our aluminum and majority of calcite and alumina sales for 2026 to 2028 have been hedged at progressively higher prices, and together with the hedging of the key input costs provides us with increased visibility on earnings, margins, and cash flows in the coming years.

Speaker #1: The group also continued to shift our alumina sales towards contracts linked to LME as opposed to the alumina price inte-index further supporting the alumina profitability.

Speaker #1: Final segment, infra and concessions, we delivered another very strong result. EBITDA increased to $82 million, almost tripling the $31 million reported in the first half of 2025.

Fotini Ioannou: EBITDA increased to EUR 82 million, almost tripling the EUR 31 million recorded in H1 2025. This performance reflected accelerated project execution, particularly across projects funded through the RRF, disciplined project management, and the continued expansion of our Infra and Concessions portfolio. Our total backlog, including projects at an advanced stage, exceeded EUR 2 billion. This obviously increases the scale, the quality, and the visibility of this segment's future earnings. Turning now to what I think is the most important feature of this set of results and our H1 performance. We have committed to reach net leverage below 2 by the year-end. We managed to bring that in at the end of H1. Our net leverage decreased to 1.7x, compared with 3.1x at the end of 2025. As you appreciate, this is a significant improvement over a 6-month period.

Speaker #1: This performance reflected accelerated project execution, particularly across projects funded through the RRF, disciplined project management, and the continued expansion of our infra and concessions portfolio.

Speaker #1: Our total backlog, including projects at an advanced stage, exceeded $2 billion, and this obviously increases the scale, the quality, and the visibility of this segment's future earnings.

Speaker #1: Turning now to what I think is the most important feature of this set of results and our first half of performance. We had committed to reach, net leverage below 2 by the year-end.

Speaker #1: We managed to bring that in at the end of H1. Our net leverage decreased to $1.7 times compared with $3.1 at the end of 2025.

Speaker #1: And as you appreciate, this is a significant improvement over a six-month period. Our cash flow from operating activities exceeded $800 million during the period, reflecting strong cash generation and very disciplined working capital management.

Fotini Ioannou: Our cash flow from operating activities exceeded EUR 800 million during the period, reflecting strong cash generation and very disciplined working capital management. Looking ahead towards the end of the year, despite significant outflows planned for H2, we remain confident that this leverage ratio will be at least at the same level as it is now. Closing H1 in its totality demonstrates our ability to grow our earnings, convert those earnings into cash, continue to fund our investment program, return capital to shareholders, and strengthen our balance sheet simultaneously. Thank you.

Speaker #1: Looking ahead, towards the end of the year, despite significant outflows, planned, for the second half of the year, we remain confident that this leverage ratio will be at least at the same level as it is now.

Speaker #1: Closing, the first half, in its totality, demonstrates our ability to grow our earnings, convert those earnings into cash, continue to fund our investment program, return capital to shareholders, and strengthen our balance sheet simultaneously.

Speaker #1: Thank you.

Speaker #2: Thank you for the name. we have here, first of all, apologies for starting, four minutes late, but it, we had to expect, a lot of, friends to join in, and we have, as we speak, two hundred and two, friends online.

Evangelos Mytilineos: Thank you, Fotini. First of all, apologies for starting 4 minutes late, but we had to expect a lot of friends to join in. We have, as we speak, 202 friends online. Therefore, again, apologies for the delay. We have a number of questions that have been sent to us by mail, and we have one or two questions which have been verbally expressed to us. Of course, everybody is invited to make a comment or place any questions as the conference call unfolds. The first one is from Mr. Alain Gabriel from Morgan Stanley Research and goes like this: I hope you are well. We are very well, thank you. May I please send through these questions below the call? Thank you. First one, gallium.

Speaker #2: Therefore, again, apologies for the delay. We have a number of, questions that have been, sent to us in, by mail. And we have a, one or two questions which have been verbally, expressed to us.

Speaker #2: And of course, everybody is, invited to make a comment or, place any questions as the conference call unfolds. So the first one is for Mr. Alan, Gabriel, from Morgan Stanley Research, and goes like this: I hope you're well.

Speaker #2: We are very well, thank you. may I please send through these questions below the call? Thank you. First one, Galium. Can you give us a bit more color on the commercial terms and how confident you are on your ability to secure similar terms of the remaining 75%?

Evangelos Mytilineos: Can you give us a bit more color on the commercial terms and how confident you are on your ability to secure similar terms for the remaining 75%. That's a very interesting question. Very much de rigueur, as we say in French. Everybody talks about the gallium business. I will try to be as open as possible because the disclosure agreement that we have with our first buyer is extremely strict. On the commercial terms, some people are wondering what is the usual terms of pricing of the critical metals. This is not like the London Metal Exchange or other exchanges. These prices benchmarked on the publications of Argus and Fastmarkets, which are twice a week each, and that is where the prices are set. If there are discounts, premiums or whatever, this is a different story.

Speaker #2: That's a very, interesting, question. very much, derrière, as we say in French, it's, everybody talks about the Galium business. I will try to be as open as possible because the, the disclosure agreement that we have with our buyer with our first buyer is extremely extremely strict.

Speaker #2: So, on the commercial terms, some people are wondering, what is the usual terms of pricing of the, critical, metals? So this is not like the London Metal Exchange or other exchanges.

Speaker #2: These prices benchmarked on the publications of Argus and Fastmarkets, which are twice a week each, and, that is where the prices are set. If there are discounts, premiums, or whatever, this, this is a different story.

Speaker #2: But if you want to make, as analysts, your calculations, this is what you have to look at. now, payment terms. delivery terms. And others, unfortunately, we cannot make any comments.

Evangelos Mytilineos: If you want to make, as analysts, your calculations, this is what you have to look at. Payment terms, delivery terms and others, unfortunately, we cannot make any comments. Regarding our ability to sell or secure the sales of the remaining 75%, that could be a nice joke because we could sell not only our 50 tons, we could sell 200 tons if we had, but unfortunately, we don't have. The remaining 75% will be sold in the next period of time. We have here to understand that gallium, because of its dual use in civil and military applications, it's an extremely sensitive product, and one has to be very careful to who it can and to who it cannot sell gallium. That's not any metal.

Speaker #2: Regarding our ability to re to sell or secure, the sales of the remaining 75%, that could be a nice joke because we could sell not only our 50 tons, we could sell 200 tons if, if we had, but unfortunately, we don't have.

Speaker #2: So the, the remaining 75%, will be sold, in, in the next period of time. we have here to understand that Galium is, because of its, dual use in civil and military applications, it's an extremely sensitive product.

Speaker #2: And, one has to be very careful to who it can and to who it cannot sell Galium. that's not any metal. Therefore, we have to take also into account that some of these materials we would like to see ending up in European consumers, but I have to admit that the interest from European consumers is way below the interest of the American and Japanese or South Korean consumers.

Evangelos Mytilineos: We have to take also into account that some of this material we would like to see ending up in European consumers. I have to admit that the interest from European consumers is way below the interest of the American, Japanese or South Korean consumers. I'm afraid it is a possibility that the Europeans will be left out totally. I'm sorry to say that, but this is a reality. On the energy side, development run rate of your renewables projects under construction is now below those that are in operation. Is that a temporary dip or is that a new normal? I think that is a temporary dip, and it has to do with the many issues. Christos, who's sitting next to me, may like to add one or two things about it. Christos.

Speaker #2: Therefore, I'm afraid it, it is a possibility that the Europeans will be left out totally. I'm sorry to say that, but this is the reality.

Speaker #2: On the energy side, development run rate of your renewables projects under construction is now below those that are in operation. Is that a temporary dip or is that a new normal?

Speaker #2: I think that is a temporary dip, and it has to do with, many issues, and, Christos who's sitting next to me may, like to add one or two things about it.

Speaker #2: Christos.

Speaker #3: Thank you, Chairman. so on the on the Emory set, as we call it, activity, we have provided a year and a half back, the outlook for the medium term, which, is there.

Christos Gavalas: Thank you, chairman. Some of the M&A settles, we call it activity. We have provided a year and a half back, the outlook for the medium term, which is there. More than half a billion of EBITDA as a contribution to the total profitability going forward. We see the asset rotation still strong and very promising. In fact, as we currently stand, approximately 2.5GW of asset rotation projects are under construction. The least is not having the one that we have already sold, and this is an opportunity for us to say that the model is a bit different. On the asset rotation activity, we have de-risked it by pre-selling the assets that we are constructing. We have a risk-free model, and we are mindful of the third leg of that operation that has to do with connection that we cannot really control.

Speaker #3: I mean, more than half a billion of EBITDA as a contribution to the total profitability going forward. we see the, the asset rotation still strong.

Speaker #3: and very promising. in fact, as we currently stand, approximately two and a half gigawatts of asset rotation projects are under construction, the, the least is not having the one that we have already sold, and this is an opportunity for us to say that the model is a bit different.

Speaker #3: On the asset rotation activity, we have derisked it, by preselling the assets that we are constructing. So we have a risk-free model, and we are mindful of the third leg of that operation that has to do with connection that we cannot really control.

Speaker #3: So we are picking only those that do not run this risk. last point, if I may, make on the blend of what we call now asset rotation in relation to what was the case a few years back.

Christos Gavalas: We are picking only those that do not run this risk. Last point, if I may make on the blend of what we call now asset rotation in relation to what was the case few years back. You know that standalone solar is suffering on the back of very low pricing, the demand comes mostly from batteries globally. This results to a different mix, meaning most of them are coming hybrid as a request Some of them battery standalone, and this is going to represent the mix going forward, which is going to be quite the opposite as it used to be in the beginning. It used to be more solar, less batteries. It's going to be more batteries, less solar.

Speaker #3: You know that, standalone solar is suffering on the back of very low pricing, so the demand comes mostly from batteries. Globally. And, this results to a different mix, meaning most of them are coming hybrid as a request, some of them battery standalone, and this is going to represent a mix going forward, which is going to be quite the opposite as it used to be in the beginning.

Speaker #3: I mean, it used to be more solar, less batteries. It's going to be more batteries, less, less solar. Last point has to do with Australia.

Speaker #3: That is very much linked to that observation, meaning that we are going into hybridized. That's, project as well as the case has been with Chile, and for this reason, we do expect 2027 to be the year of disposing it.

Christos Gavalas: The last point has to do with Australia that is very much linked to that observation, meaning that we are going into hybridize that project as well as the case has been with Chile. For this reason, we do expect 2027 to be the year of disposing it. Thank you very much.

Speaker #3: Thank you very much.

Speaker #1: And the last question

Speaker #2: of, of Mr. Gabriel is, can you elaborate more on, on your net working capital performance over the quarter? Which was much better than many have expected for to me, please.

Evangelos Mytilineos: The last question of Mr. Gabriel is, can you elaborate more on your net working capital performance over the quarter, which was much better than many have expected? Fotini, please.

Speaker #1: Thank you, Chairman. Yes, as, I mentioned at the beginning, cash generation and, cash management was a key priority for us throughout the first half.

Fotini Ioannou: Thank you, Chairman. Yes, as I mentioned at the beginning, cash generation and cash management was a key priority for us throughout H1, with a strong focus, obviously, on improving cash conversion across all of our businesses and strengthening working capital. The principal drivers that led to the EUR 820 million operating cash flow in H1 were obviously very strong cash conversion from our traditionally cash generative businesses. Namely, the fully integrated utility and the integrated aluminum value chain, together with good asset rotation proceeds and very disciplined working capital management across the group. Especially in H1, we benefited from the collection of receivables that were overdue in previous periods, as well as commercial arrangements and customer prepayments that we managed to secure in long-term contracts and long-term relationships that we have with our clients.

Speaker #1: with a strong focus, obviously, on improving cash conversion across all of our businesses and strengthening working capital. the principal drivers in, that led to the 820 million operating cash flow in the first half were obviously very strong cash conversion from our traditionally cash-generative businesses, namely the fully integrated utility and the integrated aluminum value chain, together with, good asset rotation profits and very disciplined working capital management across the group, especially in H1.

Speaker #1: We benefited from the collection of receivables that were overdue, in previous periods, as well as commercial arrangements and customer prepayments that we managed to secure in long-term contracts and long-term relationships, that we have with our clients.

Speaker #1: I think as a final point, what I want to, what I want to point out is that we managed to bring in this net leverage improvement and this operating cash flow without jeopardizing in any way our investment plan or our capex plan, as that was planned for H1.

Fotini Ioannou: I think as a final point, what I want to point out is that we managed to bring in this net leverage improvement and this operating cash flow without jeopardizing in any way our investment plan or our CapEx plan as that was planned for H1.

Speaker #2: Thank you for the name. we go to, the next, question set of questions, actually. From Mr. Nestor Askachios from Optima Bank. Question number one, your strong H1 performance coupled with expectations for an even stronger second half, driven by seasonal factors, suggests that full-year 2026 results could reach the upper end of your guidance range.

Evangelos Mytilineos: Thank you, Fotini. We go to the next set of questions, actually, from Mr. Nestor Katsios from Optima Bank. Question number one: Your strong H1 performance, coupled with expectations for an even stronger H2 driven by seasonal factors, suggests that full year 2026 results could reach the upper end of your guidance range. Are you considering an upward revision to your guidance? I agree with Mr. Katsios that the results of the H1 could merit an upgrade in our guidance. We prefer to stay on the conservative side and keep the guidance as is. Second question, how is the MEDA IPO progressing? Are you still on track for a potential listing in H2 2026? Depending on global and local market conditions, the IPO of MEDA in the H2 of 2026 is a strong possibility.

Speaker #2: Are you considering an upward revision to your guidance? I agree with Mr. Askachios that the results of the first half could merit, an upgrade in our guidance.

Speaker #2: But, we prefer to stay on the conservative side and keep the guidance as it is. Second question, how is the Medcar IPO progressing? Are you still on track for a potential listing in second half 2026?

Speaker #2: depending on, on global and local market conditions, the IPO of Medcar in the second half of 2026 is a strong possibility. Number three, could you update us on your aluminum and alumina hedging levels in coming years?

Evangelos Mytilineos: Number three, could you update us on your aluminum and alumina hedging levels in coming years, and how should we think about their impact on the metal segment's future profitability? Have you also fully hedged your input costs? Hedging is a difficult business, and that is why many companies try to avoid it. On the other hand, in situations like the ones that we are going through now, when a company has the possibility to lock in prices that are way above its cost basis, our practice has been to lock in both the sales prices as well as the prices of the inputs, at least the main materials. That has now been the case as well. As you very well point out, it concerns the years 2026, 2027, 2028. This concerns both aluminum and alumina.

Speaker #2: And how should we think about their impact on the metal segments future profitability? Have you also fully hedged your input costs? hedging is a difficult business, and that's why many companies try to avoid it.

Speaker #2: On the other hand, in situations like the one that we are going through now, and when a company has the possibility to lock in prices that are way above its, its cost basis, our practice has been to lock in both the prices of the sales prices as well as the prices of the inputs, the main at least the main materials.

Speaker #2: That has now been the case as well. And as you very well, point out, it concerns the years '26, '27, '28. Did this concerns both aluminum and alumina?

Speaker #2: And, following the trend of the prices of the last, I would say, nine months, the trend of the hedging prices has also been on an upward move.

Evangelos Mytilineos: Following the trend of the prices of the last, I would say, 9 months, the trend of the hedging prices has also been on an upward move. Mr. Marios Bourazanis from Eurobank Equities. Number one, you have a bond maturing in H2 2026. Are you considering early repayments? More broadly, do you intend to refinance the bond or repay it using available cash? This EUR 500 million maturing bond bears a coupon of 2.25%. Therefore, early repayment makes, as you can realize, absolutely no sense. Whether repayment of the bonds will take place with available cash, I remind you, in our results, we speak about a total liquidity of EUR 5 billion, of which EUR 2.6 million is cash. Whether repayment will take place with this cash or through a refinancing operation, depends entirely on the market conditions.

Speaker #2: Mr. Marios Bourazanis from European Eurobank Equities. Number one, you have a bond maturing in second half 2026. Are you considering early repayments? And more broadly, do you intend to refinance the bond or repay it using available cash?

Speaker #2: So this, 500 million maturing bond bears a coupon of 225%. Therefore, early repayment makes as you can realize absolutely no sense. Whether repayment of the bond will take place with available cash, I remind you in a in a results we speak about, a total liquidity of 5 billion, of which 2.6 billion is cash.

Speaker #2: Whether repayment will take place with the with this cash or through, refinancing operation, depends entirely on the market conditions. In general, repayment of our capital markets obligation is never linked to refinancing.

Evangelos Mytilineos: In general, repayment of our capital markets obligation is never linked to refinancing. Our operations in the capital markets are totally independent and linked only to what we, as management, consider as appropriate conditions. I want to be very frank and clear about it. Never link the two, as far as our company is concerned. Repayment of a bond is one thing, going into the capital markets to raise money is another thing. They do not go together, not for us. Question number two, on metals, how should we think about the timing of the recent aluminum pricing uplift in your results? Should the alumina benefit be even more visible in H2 due to pricing lag? Will the full aluminum benefit come through mostly over 2027, 2028? It is a bit early to talk about 2027.

Speaker #2: Our operations in the capital markets are totally independent and linked only to what we as management consider as appropriate conditions. I want to be very frank and clear about it, never link the two as far as our companies concerned.

Speaker #2: Repayment of a bond is one thing, going into the capital markets to raise money is another thing. They don't go together. Not for us.

Speaker #2: Question number two, on metals, how, how should we think about the timing of the recent aluminum, alumina pricing uplift in your results? Should the alumina benefit be even more visible in second half due to pricing lag?

Speaker #2: And will the full aluminum benefit come through mostly over '27, '28? It's a bit early to talk about '27, but I would make a small exception, and I I will say, without, without telling, the results of the metals sector, is going to, to surprise the market community very much.

Evangelos Mytilineos: I will make a small exception, and I will say, without telling the results of the metals sector, is going to surprise the market community very much. This is as much as I can say at this stage. Mr. Ioannis Noikokyrakis from Alpha Axia Securities. Good afternoon, and thank you for taking my questions. Number one, could you help bridge the gap between EBITDA and operating cash flow in H1? What level of operating cash flow do you expect by year-end 2026?

Speaker #2: This is as much as I can say at this stage. Mr. Ioannis Nikogerakis from Alpha Axia Securities. Good afternoon, and thank you for taking my questions.

Speaker #2: Number one, could you help bridge the gap between EBITDA and operating cash flow in H1? What level of operating cash flow do you expect by year-end 2026?

Speaker #3: Chairman, I think, this is, the same question that I've already, replied to. I, as I explained, operating cash flow was helped by strong cash conversion, from the from our underlying businesses and very focused working capital management.

Fotini Ioannou: Chairman, I think this is the same question that I've already replied to. As I explained, operating cash flow was helped by strong cash conversion from our underlying businesses and very focused working capital management. Going forward, net leverage ratio will remain at least at the same levels as where we are now, and working capital management will continue to be a priority.

Speaker #3: Going forward, net leverage ratio will remain at least at the same levels as where we are now in working capital management. We'll continue to be a priority.

Speaker #2: Thank you for the need. Doesn't matter to, to, repeat the question. An answer in the question twice as long as we make ourselves very clear to all our friends who are now 213 to and make sure that they all understand exactly the answer.

Evangelos Mytilineos: Thank you, Fotini. It doesn't matter to repeat the question and answer in the question twice, as long as we make ourselves very clear to all our friends who are now 213, and make sure that they all understand exactly the answer. Number two, what is your CapEx outlook for the remainder of 2026? Additionally, how much do you expect to invest in 2027 and 2028? Christo, please.

Speaker #2: Number two, what is your capex outlook for the remainder of 2026? Additionally, how much do you expect to invest in 2027 and '28? Please, so please.

Speaker #4: So we keep on growing. this was clear from the outset. both on metallurgy and energy. numbers is going to be a bit lower, compared what we were anticipating in the beginning of the year, because it was a bit higher last year, and it has been as a result, a bit, a higher leverage as, end of 2025 indicated.

Christos Gavalas: We keep on growing. This was clear from the outset, both on metallurgy and energy. Numbers is going to be a bit lower compared to what we were anticipating in the beginning of the year, because it was a bit higher last year, and it has been, as a result, a bit higher leverage, as end of 2025 indicated. As a total, it's going to be much lower than 1 billion that we have initially thought. It's going to be split between metallurgy and energy after many years of spending money only to energy. Now it's going to be split. You know that we spend money on increasing aluminum, bauxite, gallium. On the one hand, defense-related projects that will result in a completely different level of earnings 2027 onwards.

Speaker #4: So as a total, it's going to be much lower than a billion that we have initially thought. It's going to be split between metallurgy and energy after many years of, spending money only to energy.

Speaker #4: So now it's going to be split. You know that, we spend money on increasing alumina, bauxite, gallium, on the one hand, defense related projects.

Speaker #4: that will result in a completely different level of earnings. '27 onwards, even though that we anticipate this number to be coming in second half, probably a bit lower than a billion as I told you before.

Christos Gavalas: Even though that we anticipate this number to be coming in H2, probably a bit lower than EUR 1 billion, as I told you before. At the same time, dividend is going to be paid, financial cost and tax. As Fotini said twice, we stick to our commitment on the leverage metrics to stay at least at the levels that we have currently indicated.

Speaker #4: and at the same time, dividend is going to be paid financial cost and tax. as for the need, said twice, we stick to our commitment on the leverage metrics to stay at least at the levels that we have currently indicated.

Speaker #2: So the third question is, you previously guided to a year-end, leverage net leverage ratio below two. Yet you have already achieved this target in H1, 2026.

Evangelos Mytilineos: The third question is, you previously guided to a year-end leverage, net leverage ratio below two. Yet you have already achieved this target in H1 2026. Should investors expect further deleveraging in H2 2026?

Speaker #2: Should investors expect further deleveraging in H2, 2026?

Speaker #3: Again.

Speaker #2: So, for the need, please.

Fotini Ioannou: Again, sorry.

Evangelos Mytilineos: For the main things.

Speaker #3: For the third time, despite the expected dividend payment and the increased capex in H2, as Christos mentioned, we, will have ample financial flexibility, and we will remain at least at the levels of leverage where we are now.

Fotini Ioannou: For the third time.

Christos Gavalas: Yeah.

Fotini Ioannou: For the third time, despite the expected dividend payment and the increased CapEx in H2, as Christos mentioned, we will have ample financial flexibility, and we will remain at least at the levels of leverage where we are now. Thank you.

Speaker #3: Thank you.

Speaker #2: Thank you. Mr. Evangelis Karanikis from NBG Securities. Good afternoon. Two questions from my side. Please, mostly on your metals business. First, congratulations on signing your first gallium oftake agreement, which provides early commercial validation of the project.

Evangelos Mytilineos: Thank you. Mr. Vangelis Karanikas from NBG Securities. Good afternoon. Two questions from my side, please, mostly on your metals business. First, congratulations on signing your first gallium offtake agreement, which provides early commercial validation of the project. Could you provide more color on the pricing mechanism and contract duration? I assume you are not in a position to disclose the identity of the off taker. Is there room for any potential capacity expansion above the 50 tons? Well, of course, as we say, we cannot disclose the identity of the off taker. I repeat, this is a very severe disclosure clause in our contracts. We are trying to exhaust our technical possibilities. Not only exhaust, but stretch our technical possibilities to expand our production to 60 tons. We will not be able to say more on this one before Q2 2027.

Speaker #2: Could you provide more color on the pricing mechanism and contract duration? I assume you are not in a position to disclose the identity of the oftaker.

Speaker #2: is there room for any potential capacity expansion above above the 50 tons? Well, of course, as we say, we cannot disclose the identity of the oftaker.

Speaker #2: I repeat, this is a very severe disclosure clause in our contract. we are trying to exhaust our technical possibilities not only exhaust, but stretched our technical possibilities to expand our production to 60 tons.

Speaker #2: But we will not be able to say more on this one before the second quarter of 2027. But this is our goal. At the moment, we are talking about 50 tons.

Evangelos Mytilineos: This is our goal. At the moment, we are talking about 50 tons. About the color on the pricing mechanism, I referred you five minutes ago to the Argos and Fastmarket publications, which publish twice weekly the price of the market. Almost all contracts for these products are usually made on this basis. Now, regarding the rest of our business on the gallium. Again, I have to say that it's only a matter of time, or a very short time, that we will book as many quantities as we wish to very selected buyers. We are, I repeat for a second time, really patient in order to cover any European needs that may come up.

Speaker #2: about the color on the pricing mechanism, I referred to you were five minutes ago to the Argus and Fast Market publications which published twice weekly the price of the market.

Speaker #2: Almost all contracts for these products have usually made on, on on this, basis. now, regarding the rest of, business on, on the gallium, again, I have to say that, it's only a matter of time or a very short time that, we will book as many quantities as we wish to very selected buyers and we are I repeat for a second time, we are really patient in order to cover any European needs that may come up.

Speaker #2: So I would like to make it very clear and I say it again over and again because we want to avoid criticism at the European company which is the first to produce gallium on a commercial scale is selling the material to the world and not and not to Europe.

Evangelos Mytilineos: I would like to make it very clear, and I say it again, over and again, because we want to avoid criticism that a European company, which is the first to produce gallium on a commercial scale, is selling the material to the world and not to Europe. I'm sorry, I have this to say once and again. Regarding the financial side of the gallium, some of you may remember that in the Capital Markets Day in London on 25 April, first of all, we had a split between the gallium business and the circular metal business. As I said, this is now one division. It's called Metal and Rare and

Speaker #2: I'm sorry, I, I have this, to say one, once and again. regarding the financial side of the of the gallium, some of you may remember that in the in the capital markets day in London in April '25, we had, first of all, we had, split between the gallium business and the circular metal business.

Speaker #2: As I said, this is now one division. it's called, metal and, rare and, critical and rare metals. This is now one division. And we had said at the time, we had indicated an EBITDA for gallium at 40 euros.

Christos Gavalas: Critical and rare

Evangelos Mytilineos: Critical and Rare Metals. This is now one division. We had said at the time, we had indicated an EBITDA for gallium at EUR 40. At that time, the price was about, if I remember well, it was about $800 per kilo. Now, the price of Fastmarkets and Argus, and always when you look at these prices, the price we are talking about is the high price, because they have a low price and a high price. We want to talk about commercial sales, it's always the high price. The high price at the moment is $3,250. At that time, as I said, it was $800. You can make your calculations. What is more important, and I think you should all know, the negotiation with the first buyer, which is a massive company in size, was a lengthy and difficult negotiation.

Speaker #2: at that time, the price was about, if I remember well, was about 800, dollars per kilo. Now the price of Fast Market and Argus and were always when you look at these prices, the price we are talking about is the high price because they have a low price and a high price.

Speaker #2: We are talking about commercial sales. It's always the high price. The high price at the moment is 3,250. At that time, I rem as I said, it was 800.

Speaker #2: You can make your calculations. What is more, more important and I think you should all know the negotiation with the first buyer which is, a massive company, in size, was, a lengthy and difficult, negotiation.

Speaker #2: But it was in, in very good spirits and, I really have very good impression and, memory out of this negotiation. There was only one issue that.

Evangelos Mytilineos: It was in very good spirits, and I really have very good impression and memory out of this negotiation. There was only one issue that the counterparty made it a deal breaker, and that was a cap on the price that the deal during its duration could not exceed. I cannot, of course, name the price. All I can say is that the price of the cap is way above the current prices. The fact that the company of this size and knowledge of the market, the insistence on a cap, even at so much higher price, means something to us and our ongoing five-year business plan. Keep it in mind for your own analysis as well. It was the only deal breaker issue. Second, could you provide an update of the Circular Metals platform?

Speaker #2: Counterparty made it a deal breaker. And that was a cap on the price that the, the deal during the during its duration could not exceed.

Speaker #2: I cannot of course name the price, all I can say is that the price of the cap is way above the current prices. And the fact that the company of this size and knowledge of the market, they insistence on a cap, even at so much higher price, means something to us and our ongoing, five-year business plan.

Speaker #2: Keep it in mind for your all own analysis as well. It was the only deal breaker issue. Second, could you provide an update of the circular metals platform?

Speaker #2: In particular, could you elaborate on your strategy for scanning germanium and the other critical metals expected to be recovered through the platform following your comments on the 2026 AGM that additional, initiatives are expected to follow?

Evangelos Mytilineos: In particular, could you elaborate on your strategy for scandium, germanium, and the other critical metals expected to be recovered through the platform following your comments on the 2026 AGM that additional initiatives are expected to follow. Scandium and germanium are indeed the two rare metals to follow gallium. Our research and development and technical teams have made a lot of progress, and I hope we'll be able to announce positive development in the next months. As for the Circular Metals first plant in Thessaloniki, commissioning is going ahead. First high purity metal oxides expected in 2027. Let me make now a definition here, which I think is important for you as well. All these metals, scandium, germanium, gallium, and the more well-known metals like copper, aluminum, zinc, and so on, they're all included in the list of 34 metals of the European Union called critical raw materials.

Speaker #2: Scanning and germanium are indeed the two rare metals to follow gallium. Our research and development and technical teams have made a lot of progress and I hope we'll be able to announce positive development in the next months.

Speaker #2: As for the circular metals first plan in Salonika, commissioning is going ahead first high, high purity metal oxides expected in 2027. Let's let me make now a definition here which I think is important for you as well.

Speaker #2: All these metals, scandium, germanium, gallium, and the more well-known metals like copper, aluminum, zinc, and so on, they're all included in the list of 34 metals of the European Union called critical raw materials.

Speaker #2: So as I said before, our divisions now is metal CRM, critical raw rare metals. Not raw, rare. Why rare? Because scandium, germanium, and gallium may be in the same list, but at the same time, they are rare metals.

Evangelos Mytilineos: As I said before, our division now is Metlen MCRM, Critical Rare Metals, not raw, rare. Why rare? Because scandium, germanium, and gallium may be in the same list, but at the same time, they are rare metals. That's why we make the definition in the name of the division so that everybody knows what we're talking about. Usually, the rare metals come in smaller prices and much, much higher prices. Whereas critical metals, they come in much larger quantities and lower prices. The Thessaloniki plant is concentrating, as you know, on the extraction of metals from waste materials through proprietary patents that are already established. Our hope for this plant is that it will be an even bigger success than the rare metals gallium, scandium, and germanium. Stay tuned on this one. It is, I can assure you, our best bet.

Speaker #2: That's why we make we make the definition in the name of the division so that everybody knows what we're talking about. Usually, the rare metals come in smaller prices and much, much higher prices.

Speaker #2: Whereas critical metals, they come in much larger quantities and lower prices. So the Salonika plant is concentrating as you know on the ex-extraction of metals from waste materials through proprietary patents that are al-already established.

Speaker #2: And, our hope for this plant is that, it will be an even bigger success than the rare metals gallium scandium and germanium. Stay tuned on this one.

Speaker #2: It is, I can assure you, our best bet. Some people think is gallium scandium and germanium and indeed they are, as you can realize from the numbers of the gallium and the and the, the, the cap that the buyers want to put on the price that if you knew you would make completely different calculations but the big quantities and the, future is absolutely on the extraction of, metals from the, waste materials.

Evangelos Mytilineos: Some people think it's gallium, scandium, and germanium, and indeed they are, as you can realize from the numbers of the gallium and the cap that the buyers want to put on the price. That if you knew, you would make completely different calculations. The big point of this and the future is absolutely on the extraction of metals from the waste materials. Big hopes on this one. Mrs. Agapi Mavroyiani from Beta Securities. Congratulations on the results. Three questions from our side. What is the distinction between critical metals and rare metals? Thank you very much. I just said two minutes ago. I hope my answer is satisfactory to you. If not, please, in the Q&A, please ask me again. Number two, At the Capital Markets Day, you outlined a number of strategic initiatives.

Speaker #2: So big hopes on this one. Mrs. Agape Mavrogianni from Better Securities. Congratulations on the results. Three questions from our side. What is a distinction between critical metals and rare metals?

Speaker #2: Thank you very much. I just said two minutes ago. I hope the my answer is satisfactory to you. If not, please in the Q&A period, please ask me again.

Speaker #2: Number two, at the capital markets day, you outlined a number of strategic initiatives. How would you assess the progress made against your objectives? Particularly in your newer growth platform such as infrastructure defense and critical raw materials.

Evangelos Mytilineos: How would you assess the progress made against your objectives, particularly in your newer growth platform, such as infrastructure, defense, and critical raw materials? That's a question, if I may comment, which is very much the point. The rest of our business is well known to you, and we keep you very well posted about the developments, which are gradually and steadily all the way up. The relatively newer things, in which I would not include defense, which we only made a different division, but defense has always been in our portfolio. Thank you. Allow me to say that infrastructure and construction is superseding all our hopes on its results, and the management had told me that the years 2024, 2025, 2026, every year we will double the results. They seem they keep their promise.

Speaker #2: That's a question if, if I may comment. which is very much the point because the rest of our business is well known to you and we keep you we keep you very well posted about the developments which are gradually and steadily all the way up.

Speaker #2: The relatively newer things in which I would not include defense which, we only made a different division but defense has always been in our portfolio.

Speaker #2: But, thank you allow me to say that infrastructure and construction is a superseding all our hopes on its results. And the management had told me that, the year 24, 25, 26, every year we will double the results.

Speaker #2: And they seem they keep their promise. On the defense side, they said the same except for the fact that the results are accelerating a little more speedily.

Evangelos Mytilineos: On the defense side, they said the same, except for the fact that the results are accelerating a little more speedily. We had, if I remember well, about EUR 12 to 15 million EBITDA in 2025. We now have EUR 30 million in 2026, and the first draft budget for 2027 points at EUR 85 million. Not to mention 2028 or 2029. The last one, which is the Critical and Rare Metals. I just made a comment. I don't need to say anything more. Number three, "How do you view the outlook of M renewables going forward?" Christos, please.

Speaker #2: So we had, if I remember well, about 12 to 15 million EBITDA in 25. We now have 30 million in 26. And, the first draft budget for 27 points at 85 million.

Speaker #2: Not to mention 28 or 29. And the last one which is the, critical and rare materials I just made the comment I don't need I have to say anything more.

Speaker #2: Number three, how do you view the outlook of M Renewables going forward? Christopher, please.

Speaker #1: I guess most of that has been covered by previous answer. So we stay put with the guidance provided to the market last year. it's going to be a core business for Metlin going forward.

Christos Gavalas: I guess most of that has been covered by previous answer. We stay put with the guidance provided to the market last year. It's going to be a core business for Metlen going forward, more than half a billion EUR medium-term as a contribution, which is considered to be a core alongside metals and utility. Composition is going to be a bit different between storage and solar. This is again the answer. Thank you for asking.

Speaker #1: More than half billion medium term as a contribution. which is considered to be a core. Alongside metals and, and utility. Composition is going to be a bit different.

Speaker #1: between storage and, and solar. so this is again the answer. Thank you for asking.

Speaker #2: So these were, the written questions. we are now going into the normal session of Q&As. And, I can see Jason Frecklaff as the first name on the screen.

Evangelos Mytilineos: These were the written questions. We are now going into the normal session of Q&As, I can see Jason Pretclaff as the first name on the screen. Jason, please go ahead.

Speaker #2: So Jason, please go ahead.

Speaker #3: can you hear me okay?

Speaker #2: Well, I can hear you very well, Jason.

Jason Fairclough: Can you hear me okay?

Speaker #3: Excellent. look, with a little bit of an apology, I, I think I'm going to ask you to repeat yourself again. Mr. Melaneos, you have had quite a, a tricky 12 months at Metlin because of the, the legacy MPP projects.

Evangelos Mytilineos: We can hear you very well, Jason.

Jason Fairclough: Excellent. Look, with a little bit of an apology, I think I'm going to ask you to repeat yourself again, Mr. Mytilineos. You have had quite a tricky 12 months at Metlen because of the legacy MPP projects. We had the two profit warnings last year. I think last year, we thought that you'd fully provisioned for these problem projects. In H1, you've had to take more charges on those projects. I guess, could you give us some confidence that this expensive part of the journey is nearly over? Will you definitely deliver the three problem projects this year?

Speaker #3: we had the two profit warnings last year. And I think, last year we thought that you'd fully provisioned for these problem projects. but in the first half you've had to take more charges on those projects.

Speaker #3: So I guess could you give us some confidence that this expensive part of the journey is nearly over? will you definitely deliver the three problem projects this year?

Speaker #2: For the new place, we will answer and, if there's a I will add something.

Evangelos Mytilineos: For the moment, please, we'll answer if necessary, I will add something.

Speaker #4: Hi Jason. Thank you for the question. Yes, I we as I said, before we have committed to deliver 11 out of 13 projects within 2026.

Fotini Ioannou: Hi, Jason. Thank you for the question. Yes, as I said before, we have committed to deliver 11 out of 13 projects within 2026. We're well in line to do that. As all of these projects, including the main three problematic ones, they come to a close, and they come close to delivery. I think you can see from what we shared that we made significant progress across all of them, including Protos. As these come to a close, we have to take additional completion costs, okay? These are obviously depicted in the overall M&A profitability. Given that all these projects will be delivered in 2026, I think the worst is behind us. Let me put it that way.

Speaker #4: We're well in line to do that. As all of these projects, including the main three problematic ones, they come to a close and they come close to delivery I think you can see from what we shared that we made significant progress across all of them including Protos as these come to a close we have to take additional completion costs.

Speaker #4: Okay? And these are obviously the depicted in the overall M reset profitability. Given that all these projects will be delivered in 2026 I think, you know, the worst is behind us.

Speaker #4: Let me put it that way.

Speaker #2: also to add, Jason, that, for the new mentions 11 out of the 13 projects because the other two one with the other two is the EGL subsidy cable between Scotland and England.

Evangelos Mytilineos: To add, Jason, that Fotini mentions 11 out of the 13 projects, because the other two, one of the other two is the EGL sub-sea cable between Scotland and England, which is very big, and it is going very well. Another project that is also going very well. That is the deal.

Speaker #2: Which is which is very big and it's going very well. And another project that is also going very well. So that's a deal.

Speaker #3: Okay. Just a, a second one if I could. And again, we've sort of touched on this so I'm going to end up making you repeat yourself a little bit.

Jason Fairclough: Okay. Just a second one, if I could, again, we have sort of touched on this, I am going to end up making you repeat yourself a little bit. The balance sheet de-leveraging is quite dramatic. It does seem to be driven quite a lot by moves in working capital. I have got some of investors that are asking, how should we think about actual cash flow in H2? You said leverage likely at least flat into the end of the year. Do any of these working capital moves need to reverse, Fotini?

Speaker #3: But the, the balance sheet deleveraging, is quite dramatic. and it does seem to be driven quite a lot by moves in working capital. And so I've got some of investors that are asking how should we think about actual cash flow in the second half.

Speaker #3: I mean, you said leverage likely at least flat into the end of the year. Do any of these working capital moves need to reverse Fortini?

Speaker #4: Not at all, Jason. No. not at all. As I said, commitment is there. Net leverage will be at least where it is now. Working capital management will continue to be a priority.

Fotini Ioannou: Not at all, Jason. No. Not at all. As I said, commitment is there. Net leverage will be at least where it is now. Working capital management will continue to be a priority, obviously, that may further reflect positively net leverage in H2.

Speaker #4: And obviously that may further reflect positively net leverage in H2.

Speaker #2: Yep. I think probably you're ma your client did not exactly understand our point. The point was that the deleverage will stay at least where, where it is now.

Evangelos Mytilineos: Yep. I think probably your client did not exactly understand that point. The point was that the de-leverage will stay at least where it is now, taking into account that we have a much higher capital spending in H2. Even then, we expect considerable positive cash flow on the other activities. Considering the increased CapEx, I think we will have a balanced H2.

Speaker #2: Taking into account that we have a much higher capital spending in, in the second half. But even then we expect considerable positive cash flow on the other activities.

Speaker #2: So considering the increased capex I think we will have a balance second half.

Speaker #3: Okay. I'm going to be a little bit cheeky and ask a third one here. one question I've had again from investors is, you guys have a very large cash balance.

Jason Fairclough: Okay, I'm going to be a little bit cheeky and ask a third one here. One question I've had again from investors is, you guys have a very large cash balance, yet if we look at interest income, it seems to be very low. Why don't you do better on your cash balances?

Speaker #3: And yet if we look at interest income it seems to be very, very low. why don't you do better on your, your cash balances?

Speaker #4: Shall I take this?

Speaker #2: Yeah.

Speaker #4: Kerman, thank you Jason. Yes. The first of we've discussed this also, in the past and it's a very valid question. First of all, I'm sure you appreciate that the cash balance that is reported at the reporting date is not in any event the average cash balance that we have, in the period.

Fotini Ioannou: Shall I take this, chairman?

Evangelos Mytilineos: Yeah.

Fotini Ioannou: Thank you, Jason. Yes. First, we've discussed this also in the past, it's a very valid question. First of all, I'm sure you appreciate that the cash balance that is reported at the reporting date is not in any event the average cash balance that we have in the period. Cash accumulation is inherently seasonal, it very much relates to the completion of specific milestones of EPC projects or asset rotation proceeds that come in, as was the case, as you remember, with the disposal of the Chilean portfolio at the end of the year. We have committed, in addition about a significant part of our group's cash balances are held by entities that are in our SPVs, within a broad geographical footprint, which basically makes, let me call it cash pooling, a little bit challenging to a certain extent.

Speaker #4: Cash accumulation is inherently seasonal and it very much you know, relates to the completion of specific milestones of EPC projects or asset rotation process.

Speaker #4: that come in as was the case as you remember with the disposal of the Chilean portfolio at the end of the year. we have committed in addition about you know, a significant part of our group's cash balances are held by NTDs that are in our SPVs.

Speaker #4: so and a broad and within a broad geographical footprint which basically makes let me call it cash pulling a little bit challenging to a certain extent but we have committed to improve a lot on that in 2026.

Fotini Ioannou: We have committed to improve a lot on that in 2026, it's an ongoing exercise. Furthermore, I think just as a final point, I'm sure you must have realized by now that we are a group that intentionally prioritizes liquidity, that is a priority. That's where we are.

Speaker #4: And it's an ongoing exercise. Furthermore, I think just as a final point, I'm sure you must have realized by now that we are a group that intentionally prioritizes liquidity.

Speaker #4: And that and that is a priority. So that's where we are.

Speaker #3: Okay. Thanks very much. Appreciate it.

Jason Fairclough: Okay, thanks very much. Appreciate it.

Speaker #2: May I add on this last one? the question was a little bit contradictory with the, previous question we had earlier. Whether we are going to pay out bond maturing in October or the or we are going to refinance.

Evangelos Mytilineos: May I add on this last one? The question was a little bit contradictory with the previous question earlier, whether we are going to pay out bond maturing in October, or we are going to refinance. I'm very glad to say, or to repeat to you, that we don't need to refinance because we have quite a lot of cash. That, I think should make shareholders happy, not unhappy. You can always improve on your asset management. This is a very dynamic exercise, and as Fotini says, the cash balance at the end of the 6-month period does not mean that all throughout the 6 months you have the same amount of cash in the bank. Thank you, Jason.

Evangelos Mytilineos: May I add on this last one? The question was a little bit contradictory with the previous question earlier, whether we are going to pay out bond maturing in October, or we are going to refinance. I'm very glad to say, or to repeat to you, that we don't need to refinance because we have quite a lot of cash. That, I think should make shareholders happy, not unhappy. You can always improve on your asset management. This is a very dynamic exercise, and as Fotini says, the cash balance at the end of the 6-month period does not mean that all throughout the six months you have the same amount of cash in the bank. Thank you, Jason.

Speaker #2: So I will I'm very glad to say or to repeat to you that we don't need to refinance because we have quite a lot of cash.

Speaker #2: so that I think should make shareholders happy. Not unhappy. You can always improve on your asset management. but this is a, a very dynamic exercise.

Speaker #2: And as Fortini says the cash balance at the end of, of the six-month period does not mean that all throughout the six months you have the same amount of cash in the bank.

Speaker #2: Thank you Jason.

Speaker #3: Yep. Thanks very much sir.

Jason Fairclough: Yep. Thanks very much, sir.

Speaker #1: The next question is from the line of Krishana Garval with City Bank. Please go ahead.

Operator: The next question is from the line of Krishan Agarwal with Citi. Please go ahead.

Speaker #5: Hi. can you hear me?

Krishan Agarwal: Hi. Can you hear me?

Speaker #2: Please go ahead Krishna.

Evangelos Mytilineos: Please go ahead, Krishan.

Speaker #5: Yeah. thanks a lot. most of the questions have been answered. The one question on metal business where performance in the first half was very strong.

Krishan Agarwal: Yeah, thanks a lot. Most of the questions have been answered. The one question on metal business, where performance in the H1 was very strong. My assumption is that progressively, the hedging prices are going better in the H2, should we expect the overall EBITDA performance more than the implied rate of EUR 300 million for the metal business on a full year basis? Related to that, does the large pre-payment that you have received from the metal customer, does it have any relation to this significantly better performance in the metal business for the H1 and H2?

Speaker #5: my assumption is that the progressively the heading prices are going better in the second half. So should we expect the overall EBITDA performance more than the implied rate of 300 billion for the for the metal business for the full year basis?

Speaker #5: And, and related to that does the, the large prepayment that you have received from the metal customer does it have any you know, relation to, to this significantly better performance in the metal business for, for the first half and seconds?

Speaker #2: Thank you Katala. So as I as I said Krishna, the, the results of the first half the, the me they may merit an upgrade on, on the guidance.

Evangelos Mytilineos: Okay. Hello, Marios. As I said, Krishan, the results of the H1, they may merit an upgrade on the guidance, we will stick to the conservative side and stay on our guidance as was given during our AGM. Regarding the hedging, it is true that the hedging prices are progressively going up in the next quarters. The market, it is following the trends of the physical market of the previous months.

Speaker #2: But we will stick to the conservative side. and stay on our guidance as was given during our AGM. Regarding the hedging, it is true that the, the hedging prices are progressively going up in the next quarters.

Speaker #2: As the market it's it is following the trend of the physical market of the previous months.

Speaker #5: Okay. Thanks a lot.

Krishan Agarwal: Okay. Thanks a lot.

Speaker #1: The next question is from the line of Fanitu Kalia with New York Securities. Please go ahead.

Operator: The next question is from the line of Fanis Tzioukalias with Euroxx Securities. Please go ahead.

Speaker #6: Hi. Hello on my end. thank you for the presentation and congratulations on, on the strong set of results. Most of the questions were answered except for one.

Fanis Tzioukalias: Hi. Hello on my end. Thank you for the presentation. Congratulations on the strong set of results. Most of the questions were answered except for one. I was wondering, do you expect the current geopolitical tensions and the upcoming elections in Greece to affect the medium-term roadmap? Thank you.

Fani Tzioukalia: Hi. Hello on my end. Thank you for the presentation. Congratulations on the strong set of results. Most of the questions were answered except for one. I was wondering, do you expect the current geopolitical tensions and the upcoming elections in Greece to affect the medium-term roadmap? Thank you.

Speaker #6: I was wondering do you expect the current geopolitical tensions and the upcoming elections in Greece to affect the medium-term roadmap? Thank you.

Speaker #2: Greece has enjoyed a political stability in the last years. And has managed to achieve miracles I would say in the global financial scene. And that reflects on the performance of sovereigns but even considerably better than the Italian ones close to the French ones.

Evangelos Mytilineos: Greece has enjoyed political stability in the last years and has managed to achieve miracles, I would say, in the global financial scene. That reflects on the performance of the Greek sovereigns. Even considerably better than the Italian ones, close to the French ones. We only hope that the elections will be smooth, and we will not have any political turbulence that may destabilize the Greek market. That would be extremely unfortunate, and it's up to us all to avoid these kinds of developments. Let's keep fingers crossed. Not much else to say or do. Thank you.

Speaker #2: We only hope that the elections will be smooth. and we will not have any political turbulence that may destabilize the, the Greek market. That will be an extremely unfortunate and it's up to us all to avoid this kind of developments.

Speaker #2: But let's keep fingers crossed not much else to say or do. Thank you.

Speaker #1: Mr. Tsoukalia, you finished with your questions?

Speaker #6: Yes. That was the only question. Thank you so much.

Operator: Mr. Tzioukalias, are you finished with your questions?

Speaker #1: Thank you. Ladies and gentlemen, in the interest of time we are taking one last question from Mr. Richard Hatch with Berenberg. Please go ahead.

Fanis Tzioukalias: Yes, that was the only question. Thank you so much.

Fani Tzioukalia: Yes, that was the only question. Thank you so much.

Operator: Thank you. Ladies and gentlemen, in the interest of time, we are taking one last question from Mr. Richard Hatch with Berenberg. Please go ahead.

Speaker #7: thanks. yeah. Thanks for the call. Just a couple of questions. I'm just curious as we go through the accounts just on a couple of the the s the items such as the increase in related party transactions year on year 266 million euros of revenue versus 227 million last year.

Richard Hatch: Thanks. Yeah, thanks for the call. Just a couple of questions. I'm just curious as we go through the accounts, just on a couple of the items such as the increase in related party transactions year-on-year, EUR 266 million of revenue versus EUR 227 million last year. Also, Fotini, just as I go through the balance sheet, there was a sort of a doubling of other long-term payables. I just wonder if you might just be able to help us out just to understand what's going on in those bits of the accounts, please. Thanks.

Speaker #7: And then also Fortini just as I go through the the, the balance sheet there was a, a s sort of a, a doubling of other long-term payables.

Speaker #7: I just wonder if you might be just be able to help us out just to understand what's, what's going on in those bits of the the accounts please.

Speaker #7: Thanks.

Speaker #1: Richard, yes. Absolutely. In related parties, Richard, these are these are just commercial arrangements that we have in the normal course of business with specific counterparties where the arrangement that we have with them reflects is a joint venture.

Fotini Ioannou: Richard. Yes, absolutely. In related parties, Richard, these are just commercial arrangements that we have in the normal course of business with specific counterparties, where the arrangement that we have with them reflects is a joint venture. As such, everything in terms of revenues and receivables is recorded separately. You can find, in this particular case, and you can find more information, I think in note 19, I think it is, of the financial statements on revenues and receivables. The main joint ventures that reflect those numbers are three, two of them in the energy sector and one in the concession. Obviously, what you see there are revenues and receivables for the period. Okay? Should not be necessarily compared with the previous period.

Speaker #1: And as such, everything in terms of revenues and receivables is recorded separately. You can find in this particular case and you can find more information I think in note 19 I think it is of the financial statements.

Speaker #1: On revenues and receivables, the main joint ventures that reflect those numbers are three. Two of them in the energy sector and one in the concession and obviously it is there are revenues and receivables for the period.

Speaker #1: Okay? so n-n-not necessarily should not be necessarily compared with the previous period. As far as revenue recognition is concerned in terms of you know, with those joint venture arrangements, the revenue recognition happens the same way as we would recognize revenue in that line of business in any other in any other transaction.

Fotini Ioannou: As far as revenue recognition is concerned in terms of with those joint venture arrangements, the revenue recognition happens the same way as we would recognize revenue in that line of business in any other transaction. That's on related parties. I think your next question was on payables. Yes, we do have an increase in payables. Some of it is purely accounting. You can see there that we include the dividends, we include the CO2 liabilities, we include the share buyback. A big part of that increase, it's purely the accounting treatment of the payments that, as we have mentioned before, will be made in H2. The other big item is obviously the customer prepayments that, as I mentioned, we managed to secure as part of our working capital management.

Speaker #1: So that's that's on on related parties. I think you're next question was on payables. yes, we do have an increase in payables. Some of it is purely accounting.

Speaker #1: you can see there that we include the dividends we include the CO2 liabilities. We include the share buyback. So a big part of that increase it's purely the accounting treatment of the payments that as we have mentioned before will be made in H2.

Speaker #1: And then the other big item is obviously the customer prepayments. That as I mentioned we manage to secure as part of our working capital management.

Speaker #7: Okay. Much appreciated. Keep keep up the good work. Thanks.

Speaker #1: Thank you. Ladies and gentlemen, this concludes the Q&A session. I will now turn the conference over to Mr. Mytilinaos for any closing comments. Thank you.

Richard Hatch: Okay. Much appreciated. Keep up the good work. Thanks.

Fotini Ioannou: Thank you.

Operator: Ladies and gentlemen, this concludes the Q&A session. I will now turn the conference over to Mr. Methemas for any closing comments. Thank you.

Speaker #2: Well, as Jason Ferlaff from Bangor America said a few minutes ago, it has been a difficult period for us. And indeed some I would say a few of our long-standing friends of the company and the stock almost lo-lost faith in the company.

Evangelos Mytilineos: Well, as Jason Fairclough from Bank of America said a few minutes ago, it has been a difficult period for us. Indeed some, I would say a few of our longstanding friends of the company and the stock almost lost faith in the company, but just almost. In the end, I have to underline the loyalty of our shareholders, which gave us the strength to go and fight these mishappenings and turn around the company at a record time. Therefore, on behalf of all the team and all the people that work in this organization, I want to thank shareholders, our friends, stakeholders that have stood by us and to reaffirm that the move to London was not for tourism, as some interesting sort of types write in some newspapers. They will find out shortly.

Speaker #2: But just almost. In the end, I have to underline the loyalty of our shareholders which gave us the strength to go and fight this mis-happenings and turn around turn around the company at a record time.

Speaker #2: Therefore on behalf of all the team and all the people that work in this organization, I want to thank shareholders and friends and stakeholders have that have stood by us.

Speaker #2: And to reaffirm that the move to London was not for tourism. As some interesting sort of types write in some newspapers. And they will find out shortly.

Speaker #2: I think this lesson for the first half after the crisis would should make you all pleased and give you all hope for what is to come.

Evangelos Mytilineos: I think this lesson for the H1 after the crisis should make you all pleased and give you all hope for what is to come. We did not go to London just to be in the FTSE 100. We went to London to move way up the ladder of the FTSE 100. Thank you very much. Enjoy the holidays. Goodbye.

Speaker #2: We did not go to London just to be in the 40 hundreds. We are going to London we went to London to move way up the ladder of the 40 hundreds.

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Q2 2026 Metlen Energy & Metals PLC Earnings Call

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