33
32
Solvency Risk
The solvency risk is linked to the need to sufficiently finance the Group’s activity and growth. The relevant solvency re-
quirements are the subject of management through the meticulous monitoring of debts of long term financial liabilities
and also of payments made on a daily basis.
On 31/12/2014, the positive balance between Group’s Working Capital and Short-Term Liabilities secures the adequate
funding of the Parent Company.
The Group ensures the provision of adequate credit facilities available so as to cover short term business requirements.
In addition, funds for long term solvency needs shall be ensured through an adequate amount of borrowed capital and
the ability of selling long term financial assets.
The tables below summarize the maturity profile of the Group’s liabilities as at 31.12.2014 and 31.12.2013 respectively:
The tables below summarize the maturity profile of the Group’s financial assets as at 31.12.2014 and 31.12.2013
respectively:
MYTILINEOS GROUP
Past due but not impaired
Non past due but not
impaired
Total
(Amounts in thousands
€
)
0-3
months
3-6
months
6-12
months > 1 year
Liquidity Risk Analysis -
Trade Receivables
2014
37,270
8,761
2,413
130,854
227,720
407,018
2013
82,161
67,177
1,552
104,496
308,977
564,363
MYTILINEOS S.A.
Past due but not impaired
Non past due but not
impaired
Total
(Amounts in thousands
€
)
0-3
months
3-6
months
6-12
months > 1 year
Liquidity Risk Analysis -
Trade Receivables
2014
491
-
-
-
9,003
9,494
2013
200
46
-
-
139
385
MYTILINEOS GROUP
Liquidity Risk Analysis - Liabilities
(Amounts in thousands
€
)
2014
up to 6 months
6 to 12 months 1 to 5 years after 5 years
Total
Long Term Loans
74
7,432
413,688
102,828
524,023
Short Term Loans
28,084
92,664
-
-
120,748
Trade and other payables
234,917
33,388
24,906
-
293,212
Other payables
(202,703)
251,552
58
-
48,907
Current portion of non - current liabilities
42,090
42,090
Total
60,373
427,126
438,653
102,828
1,028,980
MYTILINEOS GROUP
Liquidity Risk Analysis - Liabilities
(Amounts in thousands
€
)
2013
up to 6 months
6 to 12 months 1 to 5 years after 5 years
Total
Long Term Loans
1,371
3,149
426,131
4,464
435,115
Short Term Loans
16,643
75,000
-
-
91,643
Trade and other payables
240,662
44,461
-
-
285,123
Other payables
26,218
1,324
4,897
-
32,439
Current portion of non - current liabilities
-
164,668
-
-
164,668
Total
284,894
288,602
431,028
4,464
1,008,988
It must be noted that the above table does not include liabilities
to clients from the performance of construction projects, as the
maturity of such values cannot be assessed.
Moreover, cash-advances from customers, construction con-
tacts liabilities as well as the provisions and accrued expenses
are not included.
Market Risk
Price Risk
Goods prices that are mainly determined by international mar-
kets and global offer and demand result in the Group’s expo-
sure to the relevant prices fluctuation risk.
Goods’ prices are connected both to variables that determine
revenues (e.g. metal prices at LME) and to the cost (e.g. natural
gas prices) of the Group’s companies. Due to its activity, the
Group is exposed to price fluctuation of aluminium (AL), zinc
(Zn), lead (Pb) as well as to price fluctuation of natural gas, as
production cost.
As regards price fluctuation of metals, the Group’s policy is to
minimize risk by using financial derivative instruments.
Exchange rate risk
The Group develops activity at international level and is there-
fore exposed to exchange rate risk that arises mainly from the
US dollar. Such risk primarily stems from commercial transac-
tions in foreign currency as well as from net investments in for-
eign financial entities. For the management of such risk, the
MYTILINEOS S.A.
Liquidity Risk Analysis - Liabilities
(Amounts in thousands
€
)
2014
up to 6 months
6 to 12 months 1 to 5 years after 5 years
Total
Long Term Loans
-
7,432
144,549
-
151,981
Short Term Loans
-
3,832
-
-
3,832
Trade and other payables
4,294
-
11,061
-
15,355
Other payables
250
125,064
-
-
125,314
Current portion of non - current liabilities
-
9,167
-
-
9,167
Total
4,544
145,495
155,610
-
305,649
MYTILINEOS S.A.
Liquidity Risk Analysis - Liabilities
(Amounts in thousands
€
)
2013
up to 6 months
6 to 12 months 1 to 5 years after 5 years
Total
Long Term Loans
-
-
159,308
-
159,308
Short Term Loans
-
3,329
-
-
3,329
Trade and other payables
6,132
149
-
-
6,281
Other payables
119,854
255
-
-
120,109
Total
125,986
3,733
159,308
-
289,027
Group’s Financial Management Depart-
ment establishes financial derivative and
non-derivative instruments with financial
organizations for the account and in the
name of the Group’s companies.
At the Group level, such financial instru-
ments are considered to constitute com-
pensation means for the exchange rate risk
of specific assets, liabilities or future com-
mercial transactions
Interest rate risk
The Group’s assets that are exposed to
interest rate fluctuation primarily concern
cash and cash equivalents. The Group’s
policy as regards financial assets is to in-
vest its cash in floated interest rates so as
to maintain the necessary liquidity while
achieving satisfactory return for its share-
holders. In addition, for the totality of its
bank borrowing, the Group uses floating
interest rate instruments. Depending on
the level of liabilities in floating interest rate,
the Group proceeds to the assessment of
interest rate risk and when necessary ex-
amines the necessity to use interest bear-
ing financial derivative instruments. The
Group’s policy consists in minimizing its
exposure to interest bearing cash flow risk
as regards long-term funding.
BOARD OF DIRECTORS ANNUAL REPORT
