Inapa : Results 1st half 2016

CONSOLIDATED RESULTS

June, 30th 2016

Contents

1. Highlights 2

2. Relevant facts 4

3. Management report 5

4. Market analysis 5

5. Consolidated performance 7

6. Performance of the Group Business Areas 9

7. Future prospects 11

8. Stock Exchange performance 12

9. Interim Consolidated Accounts 13

10. Mandatory information 39

11. Shares Held by Governing Bodies 39

12. Managerial Transactions 39

13. Statement of conformity 40

14. Auditor report 41

15. Additional information 43

17. Highlights Reinforcement of the financial equilibrium through a €11.2 million debt decrease compared to the same period of 2015 Strict costs and credit risk management allows a € 2.6 million (-3.9%) reduction of operating costs compared to the same period of 2015 Slight increase in market share does not prevent sales decline and narrowing of margins in a market contraction Generation of results

    • Sales in volume decreased 4.0% compared to previous year, above market performance.

    • Sales decrease 3.9% relatively to June 2015.

    • Gross margin of 18.0%, -0.3 percentage points over the same period of last year.

    • Operational costs before provisions reduced €1.9 M. Personnel and administrative expenses decreased €2.1 M.

    • Recurrent EBITDA of €10.2 M, represented 2.4% of sales.

    • Operational results (EBIT) of €7.1 M.

    • Financial costs decreased € 0.5M (-7.4%).

    • Positive Net income of € 0.3 M.

      Financial strength

    • Net debt decreased €11.2 M compared with the 1st half of 2015 and €6.1 M relatively to year end.

    • Working capital decreased €8.6 M compared with the 1st half of 2015, and increased

€2.2 M compared with December 2015.

Chart 1_Main Consolidated Indicators
M ILLION EU R OS	1H16	1H15	Δ 16/15	2Q16	2Q15
Tons ('000)	388	404	-4,0%	191	196	-2,7%
Sales	426,8	444,1	-3,9%	211,0	217,8	-3,1%
Gross margin	76,8	81,4	-5,7%	38,2	39,7	-3,8%
Gross margin (%)	18,0%	18,3%	-0,3 pp	18,1%	18,2%	-0,1 pp
Opera ting costs 1	65,6	67,5	-2,9%	32,9	34,0	-3,2%
Provisions	1,0	1,7	-42,8%	0,5	0,8	-32,4%
Re-EBITDA	10,2	12,2	-16,2%	4,8	4,9	-3,2%
Re-EBITDA (%)	2,4%	2,7%	-0,3 pp	2,3%	2,3%	0,0 pp
EBIT	7,1	9,0	-21,7%	3,1	3,2	-2,7%
Net financial costs	7,0	7,5	-7,4%	3,7	3,8	-2,2%
EBT	0,1	1,6	-1,5	-0,5	-0,5	-0,1
Net income	0,3	1,0	-0,7	-0,1	-0,6	0,5

30/06/16	30/6/15	Δ 16/15	31/12/15	Δ 6 months
Net Debt2	304,8	316,0	-3,6%	310,9	-2,0%
Working Capital	140,1	148,7	-5,8%	137,9	1,6%

(1) Net of income from services and other income and excludes provisions

(2) Includes securitization

GLOSSARY

Gross margin: Sales - Cost of sales

Re-EBITDA: Recorrent results before depreciations and amortizations, non recurrent costs, financial costs and taxes Re-EBITDA (%): Re-EBITDA/Total sales

EBIT: EBITDA + Depreciations os tangible assets and amortizations of Intangible assets

Net Debt: Medium and long term loans + Short term loans + Fixed asset suppliers + Financing associated to financial assets - Cash and cash equivalents

Working capital: Customers + Inventories - Suppliers