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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 internation-
ally, activated in the sectors of Metallurgy, EPC, Energy, and Defence. The Com-
pany, 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 power-
ful and competitive European Group of “Heavy Industry”.
The group’s headquarters is located in Athens – Maroussi (5-7 Patroklou Str.,
P.C. 151 25) and its shares were listed in the Athens Stock Exchange in 1995.
The financial statements for the year ended 31.12.2015 (along with the respective
comparative information for the previous year 2014), were approved by the Board
of directors on 22 March 2016.
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 construction 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 econom-
ic 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 amounting to €1,2 bil.
Since June 2010, “MYTILINEOS HOLDINGS S.A.” has become the sole share-
holder of “ENDESA HELLAS PRODUCTION AND TRADE OF ELECTRICAL POW-
ER S.A.”, which is now renamed into “PROTERGIA PRODUCTION AND TRADE
OF ELECTRICAL POWER S.A.”. The acquisition of the full control of “ENDESA
HELLAS” marks “MYTILINEOS HOLDINGS S.A.” establishment as the country’s
largest independent energy producer with a portfolio of 1.2 GW of installed ca-
pacity from thermal plants in operation by 2012 and over 1,000 MW RES in differ-
ent 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 liabil-
ity 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 Financial Reporting Interpretations
Committee (IFRIC) of the IASB. The accompanying standalone financial state-
ments are compiled by demand of the statutory law 2190/1920.
According to the IFRS, the preparation of the Financial Statements requires es-
timations during the application of the company’s accounting principles. Impor-
tant admissions are presented wherever it has been judged appropriate.
The Group, since 2009, applies IFRS 5 “Non-current
assets held for sale & discontinues 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 state-
ment separately from continuing operations. Given
the global economic recession, there were no fea-
sible scenarios for the alternative utilization of the
aforementioned financial assets. For that reason
the Group plans to abandon the Zinc-Lead pro-
duction 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 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 operations.
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 reporting period are consistent with the account-
ing principles applied for the fiscal year 2014.
3.1 New and amended accounting
standards and interpretations of IFRIC
New Standards, Interpretations, Revisions and
Amendments to existing Standards that are ef-
fective and have been adopted by the European
Union
The following amendments and interpretations of
the IFRS have been issued by IASB and their appli-
cation is mandatory from or after 01/01/2015.
Annual Improvements cycle 2011-2013 (ef-
fective for annual periods starting on or after
01/01/2015
In December 2013, the IASB issued Annual Im-
provements to IFRSs 2011-2013 Cycle, a collec-
tion of amendments to IFRSs, in response to four
issues addressed during the 2011-2013 cycle. The
amendments are effective for annual periods begin-
ning on or after 1 July 2014, although entities are
permitted to apply them earlier. The issues included
in this cycle are the following: IFRS 1: Meaning of
effective IFRSs, IFRS 3: Scope exceptions for joint
ventures; IFRS 13: Scope of paragraph 52 (portfolio
exception); and IAS 40: Clarifying the interrelation-
ship of IFRS 3 Business Combinations and IAS 40
Investment Property when classifying property as in-
vestment property or owner-occupied property. The
above have no impact on the consolidated/separate
Financial Statements.
Defined Benefit Plans: Employee Contributions (Amendments
to IAS 19) (effective for annual periods starting on or after
01/02/2015)
In November 2013, the IASB published narrow scope amendments to
IAS 19 “Employee Benefits” entitled Defined Benefit Plans: Employee
Contributions (Amendments to IAS 19). The narrow scope amend-
ments apply to contributions from employees or third parties to de-
fined benefit plans. The objective of the amendments is to simplify the
accounting for contributions that are independent of the number of
years of employee service, for example, employee contributions that
are calculated according to a fixed percentage of salary. The above
have no impact on the consolidated/separate Financial Statements.
Annual Improvements cycle 2010-2012 (effective for annual pe-
riods starting on or after 01/02/2015)
In December 2013, the IASB issued Annual Improvements to IFRSs
2010-2012 Cycle, a collection of amendments to IFRSs, in response
to eight issues addressed during the 2010-2012 cycle. The amend-
ments are effective for annual periods beginning on or after 1 July
2014, although entities are permitted to apply them earlier. The issues
included in this cycle are the following: IFRS 2: Definition of ‘vesting
condition’, IFRS 3: Accounting for contingent consideration in a busi-
ness combination, IFRS 8: Aggregation of operating segments, IFRS
8: Reconciliation of the total of the reportable segments’ assets to the
entity’s assets, IFRS 13: Short-term receivables and payables, IAS 7:
Interest paid that is capitalised, IAS 16/IAS 38: Revaluation method—
proportionate restatement of accumulated depreciation and IAS 24:
Key management personnel. The above have no impact on the con-
solidated/separate Financial Statements.
Amendment to IAS 27: “Equity Method in Separate Financial
Statements» (effective for annual periods starting on or after
01/01/2016)
In August 2014, the IASB published narrow scope amendments to
IAS 27 “Equity Method in Separate Financial Statements “. Under the
amendments, entities are permitted to use the equity method to ac-
count for investments in subsidiaries, joint ventures and associates in
their separate Financial Statements – an option that was not effective
prior to the issuance of the current amendments. The Group will ex-
amine the impact of the above on its consolidated/separate Financial
Statements.
Annual Improvements cycle 2012-2014 (effective for annual pe-
riods starting on or after 01/01/2016)
In September 2014, the IASB issued Annual Improvements to IFRSs
2012-2012 Cycle, a collection of amendments to IFRSs, in response
to four issues addressed during the 2012-2014 cycle. The amend-
ments are effective for annual periods beginning on or after 1 January
2016, although entities are permitted to apply them earlier. The issues
included in this cycle are the following: IFRS 4: Changes in methods of
disposal, IFRS 7: Servicing Contracts and Applicability of the amend-
ments to IFRS 7 to Condensed Interim Financial Statements, IAS 19:
Discount rate: regional market, and IAS 34: Disclosure of information
“elsewhere in the interim financial report”. The Group will examine
the impact of the above on its consolidated/separate Financial State-
ments.
Amendments to IFRS 11: Accounting for Acquisitions of Inter-
ests in Joint Operations (effective for annual periods starting
on or after 01/01/2016)
In May 2014, the IASB issued amendments to IFRS 11. The amend-
ments add new guidance on how to account for the acquisition of an
interest in a joint operation that constitutes a business and specify
the appropriate accounting treatment for such ac-
quisitions. The Group will examine the impact of the
above on its consolidated/separate Financial State-
ments.
Amendments to IAS 1: « Disclosures
Initiative»(effective for annual periods starting
on or after 01/01/2016)
In December 2014, the IASB issued amendments
to IAS 1.The aforementioned amendments address
settling the issues pertaining to the effective pres-
entation and disclosure requirements as well as the
potential of entities to exercise judgment under the
preparation of financial statements The Group will
examine the impact of the above on its consolidat-
ed/separate Financial Statements.
Amendments to IAS 16 and IAS 38: Clarifica-
tion of Acceptable Methods of Depreciation
and Amortisation (effective for annual periods
starting on or after 01/01/2016)
In May 2014, the IASB published amendments to
IAS 16 and IAS 38. IAS 16 and IAS 38 both establish
the principle for the basis of depreciation and amor-
tisation as being the expected pattern of consump-
tion of the future economic benefits of an asset. The
IASB has clarified that the use of revenue-based
methods to calculate the depreciation of an asset
is not appropriate because revenue generated by
an activity that includes the use of an asset gener-
ally reflects factors other than the consumption of
the economic benefits embodied in the asset. The
Group will examine the impact of the above on its
consolidated/separate Financial Statements.
New Standards and Interpretations that have
not been applied yet or have not been adopted
by the European Union.
IFRS 14 “Regulatory Deferral Accounts” (ef-
fective for annual periods starting on or after
01/01/2016)
In January 2014, the IASB issued a new standard,
IFRS 14. The aim of this interim Standard is to en-
hance the comparability of financial reporting by
entities that are engaged in rate-regulated activi-
ties. Many countries have industry sectors that are
subject to rate regulation, whereby governments
regulate the supply and pricing of particular types
of activity by private entities. The Group will examine
the impact of the above on its consolidated/sepa-
rate Financial Statements. The above have not been
adopted by the European Union.
Amendments to IFRS 10 and IAS 28: “Sale or
Contribution of Assets between an Investor and
its Associate or Joint Venture” (effective for an-
nual periods starting on or after 01/01/2016)
In September 2014, the IASB published narrow
scope amendments to IFRS 10 and IAS 28 “Sale or
Contribution of Assets between an Investor and its
Associate or Joint Venture”. The amendments will
be applied by entities prospectively in respect of
sales or contribution of assets performed in the an-
