MYTILINEOS Holdings Sustainability Report
2014
MYTILINEOS Holdings Sustainability Report
2014
14
15
4.2 Strategy & Key Economic Value Data
Core development goal
"Continuous
Responsible
Development"
• Maintain the Group's leading position in all three activity
sectors
• Develop and leverage effective and efficient synergies
• Create value for Stakeholder groups
"TO SEEK NEW VERTIVAL INTEGRATION PROJECTS OR PROJECTS FOR EXPANDING METALLURGY
OPERATIONS" and "TO INCREASE COMPETITIVENESS THROUGH STRATEGIC INVESTMENTS AND
RISK-HEDGING METHODS".
Metallurgy
& Mining
SECTOR
"TO BUILD ON THE SIGNIFICANT INDUSTRIAL KNOW-HOW AND INFRASTRUCTURE" and "TO
MAINTAIN THE GROUP'S LEADING ROLE IN ENERGY PROJECTS IN GREECE AND, BY EXTENSION, IN
ITS ACTIVITIES ABROAD".
EPC Projects
SECTOR
“TO STRENGTHEN THE POSITION HELD BY THE GROUP AS THE LARGEST INDEPENDENT ELECTRICITY
PRODUCER IN GREECE”.
Energy
SECTOR
DEVELOPMENT GOALS
Driven by its commitment to continuous development and progress and
seeking to always be at the forefront of developments in each one of
its activity sectors MYTILINEOS Group consistently pursues its vision
to become a strong and competitive European heavy industry group.
Drawing on its highly qualified human resources, significant assets and
financial robustness, the Group aims to achieve steady organic growth
in the wider region of SE Europe, Africa and the Middle East and to
consolidate the significant synergies available between its core activity
sectors, seeking in this way to ensure their balanced development. In
parallel with its investment plan, it develops methods to curtail costs
and exploits the capabilities of sophisticated risk-hedging tools and
techniques to optimise its economic performance in the coming years.
4.3 Key figures for 2014 &
Outlook for 2015
MYTILINEOSGroup in 2014 posted a consolidated turnover of €1,232.6million
against €1,403 million in 2013, a decline attributed exclusively to the regula-
tory changes in the operation of the energy market. Earnings before inter-
est, tax, depreciation and amortisation (EBITDA) grew to €253.9 million from
€225.3 million in 2013, driven mainly by the improved performance of the
Metallurgy &Mining Sector and the sustained strong performance of the EPC
Projects Sector. Net profit after tax and minority rights stood at €64.9 million,
against €19.1million for the previous year.
Overall, during the six-year recession in the Greek economy, MYTILINEOS
Group managed to successfully complete its large-scale Energy investment
plan and proceed with investments in its industrial activities, thus recovering
the competitiveness of its Metallurgy Sector, while at the same time gradu-
ally expanding to new EPC markets abroad. The success of this strategy is
reflected in theGroup’s strong financial performance for 2014 and the steadily
declining net borrowing levels, which dropped by more than €370 million in
the course of the last two years, and is also demonstrated by the fact that the
Group hasmaintained the 2,500 direct and indirect jobs it provides.
Metallurgy & Mining
The Group's Metallurgy and Mining Sector posted the strongest im-
provement relative to the previous year, with a turnover of €470.8
million, against €435.9 million in 2013. The year 2014 was a turning point for
the sector, as the successful completion of the “MELLON” competitiveness
recovery programme and the drastic cost reductions it made possible, were
combined from the second half of the year onwardswith favourable develop-
ments in the international markets, such as the strengthened performance
of the US Dollar against the Euro and the decline in oil prices, as well as the
stabilisation of the “all-in” aluminiumprices at higher levels.
The rate of growth of global aluminiumdemand is expected to remain strong
during 2015. Aluminium prices currently stand at levels that pose significant
challenges for producers and thus create conditions for a further drop in al-
uminium stocks, which have been steadily declining since early 2013. The
developments regarding the market fundamentals, the performance of
emerging economies and especially of the Chinese economy, the energy
costs and the evolution of the Euro/USD parity, together with the monetary
policy to be adopted by the Central Banks, are expected to be the key factors
that will determine the developments in the sector in the months ahead. In
this international environment, MYTILINEOS Group, relying primarily on its
strict control of production costs, focuses on further strengthening the com-
petitiveness of its Metallurgy & Mining Sector, expecting it to post a strong
financial performance in 2015.
Turnover (€)
1,232,604,268.9
2014
965,796,625.7
83,876,209.0
53,641,409.8
62,250,594.0
Operating costs (€)
Employee salaries
and benefits (€)
Payment of income tax
& other taxes (€)
852,000
Investments in local
communities (€)
Payments to capital providers (€)
(shareholder dividends, payment of
interest to creditors, including interest
on all types of debts and loans, as
well as retrospective payment of
dividend amounts owed to preference
shareholders).
*During the fiscal year 2014, ALUMINIUM OF
GREECE received this amount as training
programmes subsidy from the Manpower
Employment Organisation (OAED).
Economic Value Table
Significant financial assistance received from
Government
2012 2013
2014
Tax exemptions
/ credits (€)
0
0
0
Subsidies (€)*
436,841 181,813 140,993.6
Investment,
research and
technology
subsidies
and other relevant
types of
subsidies (€)
0 7,024,872
0
% of economic value
distributed
94.6%
% of economic value
retained
5.4%
1,166,416,838.5
Total (€)
(G4-1)
(G4-EC1)
(G4-1)
(G4-8)
(G4-EC4)
