CORRECTION: PROFIT WARNING – DECREASE OF TURNOVER AND EBITDA

15:15 London, 17:15 Helsinki, 1 July 2024 - Afarak Group SE ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)

CORRECTION: PROFIT WARNING – DECREASE OF TURNOVER AND EBITDA

Correction: Message category

PROFIT WARNING – DECREASE OF TURNOVER AND EBITDA

Stock Exchange Release

The Board of Directors of Afarak Group SE (“Company”) estimates, that the EBITDA for the first half of year 2024 is at 4-5 Million Euro, which represents a decrease of 70% compared to 2023.

Furthermore, the turnover for the first half of year 2024 is expected to be at 70-75 Million Euro which represents a decrease of 26%

In the Annual report 2023 published 27 March 2024, the company stated the following expectations: We wish to provide our shareholders an update about these:

 Market Overview

- Price Stabilization: Prices for low carbon ferrochrome standard grades are expected to stabilize but remain low. Increased output for these grades is unlikely unless the stainless mills' activity improves, unless the leading stainless-steel groups improve their activity and/or start showing more interest in sustainable and responsible supply chains.

- We continue to improve our productivity and efficiency, so as to cope better and better with this low-quality competition. We expect the margin pressure to continue, at least through H1/2024, due to the weak state of the stainless-steel industry, mostly in Europe.

Update: The stainless steel activity in Europe has been subdued, as expected, unfortunately the imports, especially from India, have increased and the price pressure from these imports has been even higher than expected. The sanctions against Russian imports have shown little affects so far. We successfully continued the reduction of our cost of production.

Special Grade Market

In the Annual Report the Company expected that the Special Grade Market Continues to grow and show some upside. The Company is expecting solid results for 2024, as our focus resides in this special grade segment.

Update: We can generally confirm that the demand for these products has increased and the market prices have shown some upside, but the price situation of the standard grades (see above) has impacted our margins heavily in that segment as well. The extremely low Yen is also allowing our main competitor from Japan to operate aggressively in this segment. Unlike expected, the interest rates have only recently started to diminish, and there is no real expectation for substantial further reductions until end of 2024.

FerroAlloys segment

We expect further positive developments in this segment for 2024

Update: this has been confirmed and the positive signs are continuing

 In the light of these events, the company is nevertheless expected to produce solid results in 2024, as communicated before. The EBITDA for H1/2024 is at 4-5 Million Euro, which represents a decrease of 70% compared to H1/2023. The turnover for H1/2024 is expected at 70-75 Million Euro which represents a decrease of 26%.

Helsinki, July 1, 2024

AFARAK GROUP SE

Board of Directors

For additional information, please contact:

Guy Konsbruck, CEO, ,

Financial reports and other investor information are available on the Company's website: .

Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).

Distribution:

NASDAQ Helsinki

London Stock Exchange

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