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Annual Financial Statements
1. Information about MYTILINEOS HOLDINGS S.A.
1.1 General Information
Mytilineos Holdings S.A. is today one of the biggest industrial Groups
internationally, activated in the sectors of Metallurgy, EPC, Energy, and
Defence. The Company, which was founded in 1990 as a metallurgical
company of international trade and participations, is an evolution of
an old metallurgical family business which began its activity in 1908.
Devoted to continuous growth and progress and aiming to be a leader
in all its activities, the Group promotes through its long presence its
vision to be a powerful and competitive European Group of “Heavy
Industry”.
The group’s headquarters is located in Athens – Maroussi (5-7 Pa-
troklou Str., P.C. 151 25) and its shares were listed in the Athens Stock
Exchange in 1995.
The financial statements for the year ended 31.12.2014 (along with the
respective comparative information for the previous year 2013), were
approved by the Board of directors on 17 March 2015.
1.2 Nature of activities
During the last ten years the Group’s activities have expanded from
the traditional sector of international metal’s trading to those of con-
struction and energy. The group aims in the development of synergies
between the three different areas of activities, by delegating the role of
management and strategy formation in Mytilineos Holdings S.A.
The group monitors its performance on Metallurgy & Mining Sector
through the subsidiaries “Aluminium S.A.” (Alumina–Aluminium) and
“Sometra S.A.” (Zinc–Lead). Zinc – Lead Sector was the first which
effected from the negative economic environment mainly due to the
decrease on demand, the increasing prices of coke and the difficulty
to find appropriate Raw Materials. All the above mentioned reasons
lead the General Assembly of the company on 26.01.2009 to suspend
temporary the production activity (note 4.25).
The Group through its subsidiary METKA is the leading and most
specialized EPC Constructor in Greece and expanded in competitive
markets abroad with value of pending construction contracts amount-
ing to
€
1,3 bil.
Since June 2010, “MYTILINEOS HOLDINGS S.A.” has become the
sole shareholder of “ENDESA HELLAS PRODUCTION AND TRADE
OF ELECTRICAL POWER S.A.”, which is now renamed into “PROTER-
GIA PRODUCTION AND TRADE OF ELECTRICAL POWER S.A.”. The
acquisition of the full control of “ENDESA HELLAS” marks “MYTILI-
NEOS HOLDINGS S.A.” establishment as the country’s largest inde-
pendent energy producer with a portfolio of 1.2 GW of installed capac-
ity from thermal plants in operation by 2012 and over 1,000 MW RES in
different stages of development.
2. Basis for preparation of the
financial statements
The consolidated financial statements of
MYTILINEOS S.A. as of December 31st
2014 covering the entire 2014 fiscal year,
have been compiled based on the his-
toric cost principle as is amended by
the readjustment of specific asset and li-
ability items into market values, the going
concern principle and are in accordance
with the International Financial Reporting
Standards (IFRS) that have been issued
by the International Accounting Standards
Board (IASB) and their interpretations that
have been issued by the International Fi-
nancial Reporting Interpretations Commit-
tee (IFRIC) of the IASB. The accompany-
ing standalone financial statements are
compiled by demand of the statutory law
2190/1920.
According to the IFRS, the preparation of
the Financial Statements requires estima-
tions during the application of the com-
pany’s accounting principles. Important
admissions are presented wherever it has
been judged appropriate.
The Group, since 2009, applies IFRS 5
“Non-current assets held for sale & dis-
continues operations”, and presents sepa-
rately the assets and liabilities of the sub-
sidiary company SOMETRA S.A., following
the suspension of the production activity
of the Zinc-Lead production plant in Ro-
mania, and presents also the amounts
recognized in the income statement sepa-
rately from continuing operations. Given
the global economic recession, there were
no feasible scenarios for the alternative uti-
lization of the aforementioned financial as-
sets. For that reason the Group plans to
abandon the Zinc-Lead production while
exploiting the remaining stock of the plan.
Consequently, by applying par. 13 of IFRS
5 “Non-current assets Held for Sale” the
Zinc-Lead production ceases to be an as-
set held for sale and is considered as an
asset to be abandoned. The assets of
the disposal group to be abandoned are
presented within the continuing operations
while the results as discontinued opera-
tions.
The reporting currency is Euro (currency of the country of the
domicile of the parent Company) and all amounts are reported
in thousands unless stated otherwise.
3. Basic accounting principles
The accounting principles, applied by the Group for the report-
ing period are consistent with the accounting principles applied
for the fiscal year 2013.
3.1 New and amended accounting standards
and interpretations of IFRIC
New Standards, Interpretations, Revisions and Amend-
ments to existing Standards that are effective and have
been adopted by the European Union
The following amendments and interpretations of the IFRS have
been issued by IASB and their application is mandatory from or
after 01/01/2014.
IFRS 10 “Consolidated Financial Statements”, IFRS
11 “Joint Arrangements” and IFRS 12 “Disclosure of
Interests in Other Entities”, IAS 27 “Separate Financial
Statements” and IAS 28 “Investments in Associates and
Joint Ventures” (effective for annual periods starting on
or after 01/01/2014)
In May 2011, IASB issued three new Standards, namely IFRS
10, IFRS 11 and IFRS 12. IFRS 10 “Consolidated Financial State-
ments” sets out a new consolidation method, defining control
as the basis under consolidation of all types of entities. IFRS
10 supersedes IAS 27 “Consolidated and Separate Financial
Statements” and SIC 12 “Consolidation — Special Purpose
Entities”. IFRS 11 “Joint Arrangements” sets out the principles
regarding financial reporting of joint arrangements participants.
IFRS 11 supersedes IAS 31 “Interests in Joint Ventures” and SIC
13 “Jointly Controlled Entities – Non-Monetary Contributions by
Venturers”. IFRS 12 “Disclosure of Interests in Other Entities”
unites, improves and supersedes disclosure requirements for
all forms of interests in subsidiaries, under common audit, as-
sociates and non-consolidated entities. As a result of these new
standards, IASB has also issued the revised IAS 27 entitled IAS
27 “Separate Financial Statements” and revised IAS 28 entitled
IAS 28 “Investments in Associates and Joint Ventures”.
Transition Guidance: Consolidated Financial State-
ments, Joint Arrangements and Disclosure of Interests
in Other Entities (Amendments to IFRS 10, IFRS 11 and
IFRS 12) (effective for annual periods starting on or after
01/01/2014)
In June 2012, IASB issued this Guidance to clarify the transition
provisions of IFRS 10. The amendments also provide additional
accommodation during the transition to
IFRS 10, IFRS 11 Joint Arrangements and
IFRS 12 Disclosure of Interests in Other
Entities, limiting the requirements to pro-
vide adjusted comparative information to
only the preceding comparative period.
Furthermore, in respect to the disclosures
relating to the unconsolidated entities, the
amendments take away the requirement to
present comparative information.
Investment Entities (Amendments to
IFRS 10, IFRS 12 and IAS 27) (effective
for annual periods starting on or after
01/01/2014)
In October 2012, IASB issued amend-
ments to IFRS 10, IFRS 12 and IAS 27. The
amendments apply to a particular class of
business that qualifies as investment enti-
ties. The IASB uses the term ‘investment
entity’ to refer to an entity sole business
purpose is to invest funds solely for returns
from capital appreciation, investment in-
come or both. An investment entity must
evaluate the return of its investments on a
fair value basis. Such entities could include
private equity organizations, venture capi-
tal organizations, pension funds, sovereign
wealth funds and other investment funds.
The Investment Entities amendments pro-
vide an exception to the consolidation
requirements under IFRS 10 and require
investment entities to measure particular
subsidiaries at fair value through profit or
loss, rather than consolidate them while
making the required disclosures.
Amendments to IAS 32 “Financial Instru-
ments: Presentation” – Offsetting finan-
cial assets and financial liabilities (effec-
tive for annual periods starting on or after
01/01/2014)
In December 2011, IASB issued amend-
ments to IAS 32 “Financial Instruments:
Presentation”, which provide clarification
on some requirements for offsetting finan-
cial assets and liabilities in the Statement
of Financial Position. The amendments af-
fect the consolidated/ separate Financial
Statements.
