Growing results for ROCA Industry in S1 2024: Cumulative business of RON 314.5 mln, EBITDA by 75.2% above the value of S1 2023 and cumulative net profit of RON 4.5 mln
<h3>ROCA Industry, the first industrial holding in Romania, specialized in the production of construction materials, listed on the BVB main market under the symbol ROC1, recorded in the first semester of 2024 a cumulative turnover of RON 314.5 mln, according to the financial report for the first six months of the year.&nbsp;</h3>

<p><strong>Thus, the revenues of the companies within the holding increased by 9.5% compared to S1 2023, despite a difficult market context for the construction materials market.</strong> The holding, majority owned by the private equity company ROCA Investments, represents a strategic pillar of it, designed to create value in the economy by consolidating and modernizing local production capacities, with the objective of increasing the competitiveness of the national industry.</p>

<p>In relation to the results obtained in S1 2023, ROCA Industry also registered positive developments at the level of operational profit, <strong>the cumulative EBITDA at the level of the entire holding reaching the value of RON 36.3 mln RON (EBITDA margin of 11.5% of the turnover), representing an increase of 75.2% vs. S1 2023. At the same time, in the first half of 2024, the holding registered a cumulative net profit amounting to RON 4.5 mln.</strong></p>

<p>The results highlight a strategy adapted to market dynamics and focused on growth factors that generate stable results, regardless of the cycles and challenges of the construction sector. In this sense, the ROCA Industry management team applies, as early as 2022, a multi-dimensional strategy, based on operational optimization, development of distribution channels, diversification of the portfolio and expansion of export channels.</p>

<p>From the liquidity point of view, the visibility offered by the listing of ROCA Industry on the regulated stock market in the first half of the year and the signing of the contract with BRK as a market maker <strong>generated a positive evolution in the daily volumes of traded shares</strong>. Thus, in the period March 11-July 31, 2024 (eliminating Deal-type transactions), the traded volume was 1.17 million shares, with a daily average of 12.1 thousand shares, compared to the values ​​from the same period of 2023 - 279.2 thousand shares, respectively a daily average of 3.4 thousand traded shares. In the 1st semester of 2024, the holding reached a record daily traded volume of 580,000 shares, thus fulfilling its promise to shareholders regarding the liquidity of the shares after the transfer to the BSE regulated market.</p>

<blockquote>
<p>"The performance in the first half of the year confirms the effectiveness of our strategy, even in a difficult and continuously unpredictable market context. The achievements, which we attribute primarily to the high-performing management team, demonstrate not only the ability to quickly respond and adapt through operational efficiency to market changes, but also the added value of the ROCA Industry holding model. In essence, an integrated system of companies, under professional management with a focus on effective transformational strategies, is more resilient in the face of economic fluctuations and generates, together, performance," said <strong>Ionuț Bindea, CEO of ROCA Industry</strong>.</p>
</blockquote>

<p>According to the data presented by the National Strategy and Forecast Commission in June 2024, in the first quarter of <strong>2024 industrial activity contracted by 2.7% compared to the same period of the previous year.</strong> Another predictive indicator with a direct impact on the construction sector is the number of construction permits issued, which, in the first semester of 2024, registered a decrease of 1.3% compared to S1 2023, according to data provided by INSSE.</p>

<p><strong>From an operational point of view, ROCA Industry's business model generates a J-Curve evolution</strong>, which foresees an initial period of integration and adjustment before starting a significant growth phase. This strategy involves, at the beginning, a phase of investment and optimization that may temporarily affect performance, but which prepares the ground for accelerated and sustainable expansion.</p>

<h3>Positive developments in all ROCA Industry companies&nbsp;</h3>

<p>According to the cumulative financial results, in the first 6 months of this year, all the companies of the ROCA Industry holding registered positive developments at the turnover level.&nbsp;</p>

<p><strong>BICO Industries</strong> (60% holding), the most important manufacturer of fiberglass mesh in Eastern Europe and the third largest in the EU, reported a turnover of 85.3 million RON, registering an increase of 8.8 % compared to H1 2023. In addition, EBITDA reached 11.6 million RON, a 398.2% increase in operating profit. This performance was possible due to process optimization and increased sales of the highest margin products in the portfolio.</p>

<p><strong>EVOLOR</strong> (100% ownership), one of the main players in the paint and varnish industry, reached a turnover of 53.7 million RON, registering an increase of 8.3% compared to the same period in 2023. EBITDA was 5 .9 million RON in the first half of the year, decreasing as a result of the significant investments made by the company to support the scaling and expansion of operations.</p>

<p><strong>Eco Euro Doors</strong> (100% ownership) and <strong>Workshop Doors</strong>, (70% ownership since February 2024), companies in the process of merging, report for S1 2024 a turnover of 54.7 million RON. EBITDA amounted to 12.7 million RON, thus marking an increase of 75.6% compared to S1 2023.</p>

<p><strong>DIAL </strong>(100% ownership), a company specialized in the production of metal wire products, registered a significant increase in turnover, of 44.3%, reaching 41.3 million RON. In addition, EBITDA increased by 90.4% compared to the first half of last year, reaching 5.1 million RON. This evolution is the result of the implementation of an effective commercial strategy, which included the launch of new products, the capitalization and expansion of sales channels, with a special focus on the development of exports.&nbsp;</p>

<p><strong>ELECROPLAST</strong> (99.99% ownership since July 2023), one of the most important producers of electric cables, reaches a turnover of 79.6 million RON, indicating an increase of 2.8%. EBITDA reached the value of 4.7 million RON, results showing an increase of 56.1% compared to the results of 2023.</p>

<p><strong>ROCA Industry Holding</strong> owns, directly and indirectly, a number of 9 players with a significant presence on the construction market: BICO Industries (the first and largest national producer of fiberglass mesh and the only domestic producer of fiberglass reinforcement), EVOLOR (one of the largest players in the paint and varnish production industry), ECO EURO DOORS (the largest Romanian manufacturer of doors for residential construction), WORKSHOP DOORS (the second largest Romanian manufacturer of doors for residential construction), DIAL (manufacturer of metal wire products), ELECTROPLAST (one of the leading manufacturers of electrical cables), as well as fiberglass manufacturers Terra, Europlas and Iranga, through BICO Industries.</p>

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<p><em>*This is a Press release.</em></p>