industry sector. During last year, ALUMINIUM OF GREECE
also made a number of moves that paved the way for its further
growth and for enhancing its social footprint, and are expected to
consolidate its position as the largest vertically integrated alumina
and aluminium plant in Europe.
In the Energy Sector, Protergia, the largest independent electricity
producer in Greece, is continuing with its investments in modern
power plants, despite the fact that its growth is taking place in
a highly unstable and constantly changing environment for the
country as well as for the energy market. In spite of the difficulties
in the market, in 2014 Protergia entered the retail market for
electricity, aiming to be able to supply electricity very soon
to businesses and households whose number will match its
production capacity, yet in the framework of a liberalised energy
market modelled after those in the other European countries.
Last year, through M&M Gas, MYTILINEOS Group also led
developments in the natural gas sector, as the first independent
supplier to provide natural gas to an industrial consumer.
Financial and business performance are not the only areas where
MYTILINEOS Group is innovating and distinguishing itself. Our
actions and initiatives to create value for the society in which
we live and operate are for us a source of equal, if not greater,
pride. The social product generated by the Group for 2014
stood in excess of
€
261 million, an amount that was allocated
to business, social and environmental investments. Finally the
Group’s Sustainability Report 2013 was certified for compliance
with the requirements of Application Level A+, the top application
level under the GRI-G3.1 Reporting Guidelines.
Throughout the deep recession of the Greek economy and after six
years marked by unprecedented business and financial challenges,
MYTILINEOS Group remains committed to its strategic focus on
markets abroad and to the strict control of costs, which has been the
hallmark of the business model it has been following since 2008. As
a result, in 2014 it posted improved profits and a rapid decline of net
borrowing, while strengthening its international profile through the
increased participation of foreign institutional investors.
Although its activities lie in sectors that were harshly challenged, 2014
was yet another year of sustained positive results for the Group. The
strategy to prepare for and shield itself against the challenges of the
crisis helped the company not only to withstand the recession, but
also to continue to grow and steadily invest, going ahead with new
important business moves during the year.
The impact of these moves was also reflected in the Group’s financial
figures, leading some of the largest players in the global economic
scene to express their confidence in MYTILINEOS Group. Canadian
Fairfax Financial Holdings, one of the most prestigious asset
management companies, opted to continue its investment in the Group
by further increasing its shareholding stake in it. In this way, Fairfax
gave a clear vote of confidence to the Group, enhancing even more
the latter’s value and negotiating power, despite the risks associated
with the Greek economy. Eurobank Equities too was consistently
raising the bar for the MYTILINEOS Group share, by including it in its
top investment picks. Finally, Kepler Chevreux and Wood & Company,
two of the world’s leading international investment firms, expressed
their confidence in the performance of the Group’s share and initiated
their coverage of it.
METKA’s course during 2014 mirrored that of the Group. Drawing on
its strong financial structure, the company was appointed preffered
bidder in the tender procedure for the
€
273 million project of the
new Kiato-Rododafni railway line, in what was a clear statement of its
intention to make a comeback as a strong contender for infrastructure
projects in Greece, bringing to the domestic market its experience and
significant liquidity from its international activities. In parallel, in 2014
METKA continued to implement successfully the contracts it has been
Message from
the Chairman
awarded abroad and managed to deal
effectively with the environment of instability
in the Middle East markets, as it accelerated
the implementation of its projects abroad
and strengthened its position in the global
market for EPC projects in the energy
sector.
For ALUMINIUM OF GREECE, too, 2014
was the first year in which it reaped the
fruits of the “MELLON” programme – the
company’s two-year long effort to curtail
costs and improve its competitiveness.
The “MELLON” programme is the sector’s
most ambitious programme on a global
level. Its successful completion, coupled
with the mid-year recovery of aluminium
prices, enhanced the Sector’s performance
significantly and succeeded in drastically
improving the competitiveness of the
Group’s flagship company in the heavy
Evangelos Mytilineos
Chairman & CEO
Annual Repor t 2014
03
02
ΜΕΤΚΑ,
ALUMINIUM OF
GREECE, Protergia,
M&M Gas.
Four leading
companies, one
Group, a single
strategy. Steady
progress, a
dynamic portfolio,
a vision for
the future.
ΜΕΤΚΑ, ALUMINIUM OF GREECE,
Protergia, M&M Gas. Four leading
companies, one Group, a single
strategy. Steady progress, a dynamic
portfolio, a vision for the future. Our
target for 2015 is to continue firmly on
this path, aiming to achieve growth
for the Group and for the Greek
economy and society, focusing on
our people, our shareholders and
our business partners.
“
”
