129
128
Annual Financial Statements
MYTILINEOS GROUP
MYTILINEOS S.A.
(Amounts in thousands
€
)
31/12/2014 31/12/2013
31/12/2014 31/12/2013
Commitments from construction contracts
Value of pending construction contracts
1,292,605
2,242,374
-
-
Granted guarantees of good performance
340,310
372,437
-
-
Total
1,632,915
2,614,811
-
-
4.25 Discontinued Operations
The Group, since 2009, applies IFRS 5 “Non-current assets held for
sale & discontinued operations”, and presents separately the assets
and liabilities of the subsidiary company SOMETRA S.A., following
the suspension of the production activity of the Zinc-Lead production
plant in Romania, and presents also the amounts recognized in the
income statement separately from continuing operations. Given the
global economic recession, there were no feasible scenarios for the
alternative utilization of the aforementioned financial assets. 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 asset held for sale and is consid-
ered as an asset to be abandoned. The
assets of the disposal group to be aban-
doned are presented within the continuing
operations while the results as discontin-
ued operations.
Following is presented the analysis of
the profit and loss of the discontinued
operations.
MYTILINEOS GROUP
(Amounts in thousands
€
)
1/1-31/12/2014 1/1-31/12/2013
Sales
7,713
6,339
Cost of sales
(5,406)
(4,155)
Gross profit
2,307
2,184
Other operating income
711
655
Distribution expenses
(650)
(445)
Administrative expenses
(1,958)
(1,867)
Other operating expenses
(630)
(706)
Earnings before interest and income tax
(220)
(179)
Financial income
-
1
Financial expenses
(39)
(24)
Profit before income tax
(259)
(202)
Profit for the period
(259)
(202)
4.26 Sale of Treasury Shares
On 7.12.2007, the Board of Directors of the Company resolved on
the commencement of the plan regarding the acquisition of treasury
shares, in implementation of the decision of the Extraordinary General
Meeting of the Company’s shareholders of 07.12.2007. In the period
from 13.12.2007 until 06.12.2009, the Company would acquire up to
6.053.907 treasury shares, at a minimum acquisition price of 2,08
€
/
share and a maximum acquisition price of 25
€
/share (amounts ad-
justed for the shares split of 19.12.2007). Following, the Company can-
celled 5,635,898 own shares by the 2nd Repeat General Meeting of
the Company’s Shareholders of June 3rd.
MYTILINEOS HOLDINGS S.A. on 18 October 2013, pursuant to its
BoD resolution on 17 October 2013, sold 4,972,383 treasury shares
at the price of
€
5.13 per share for a total
consideration of
€
25,508,325. Following
the above mentioned transaction MYTILI-
NEOS HOLDINGS S.A. does not hold any
treasury stock.
Total number of treasury shares were ac-
quired by Fairfax Financial Holdings Lim-
ited, a financial services holding company.
As of 18 October 2013, the interest held by
Fairfax in MYTILINEOS Group stands at
5,02% making Fairfax the third largest MY-
TILINEOS Group shareholder.
4.27 Encumbrances
Group’s assets are pledged for an amount of 323,7 m as bank debt collateral.
4.28 Commitments
Group’s commitments due to construction contracts and finance lease are as follows:
4.29 Operating Leases
MYTILINEOS GROUP
MYTILINEOS S.A.
(Amounts in thousands
€
)
31/12/2014 31/12/2013
31/12/2014 31/12/2013
Until 1 year
3,028
2,584
265
124
1 to 5 years
10,945
8,432
1,006
207
> 5 years
14,433
-
349
-
Total Operating Lease
28,407
11,016
1,621
331
4.30 Financial Risk Factors
The Group’s activities expose it to a variety of financial risks:
market risk (including foreign exchange risk and price risk),
credit risk, liquidity risk, cash flow risk and fair value interest-
rate risk. The Group’s overall risk management program focus-
es on the unpredictability of commodity and financial markets
and seeks to minimize potential adverse effects on the Group’s
financial performance. The Group uses derivative financial in-
struments to hedge the exposure to certain financial risks.
Risk management is carried out by a central treasury depart-
ment (Group Treasury) under policies approved by the Board
of Directors. Group Treasury operates as a
cost and service centre and provides ser-
vices to all business units within the Group,
co-ordinates access to both domestic and
international financial markets and manag-
es the financial risks relating to the Group’s
operations. This includes identifying, eval-
uating and if necessary, hedging financial
risks in close co-operation with the various
business units within the Group.
