Interim / Quarterly Report • Sep 29, 2021
Interim / Quarterly Report
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Interim Condensed Financial Reporting for the period January 1st to June 30th, 2021 (pursuant to Article 5 of Law 3556/2007)
Company's Number in the General Electronic Commercial Registry :913601000 (former Company's Number in the Register of Societes Anonymes: 14303/06/B/86/26)
16 Amaroussiou ‐ Halandriou str.,
151‐25, Marousi, Greece
| INDEX OF INTERIM CONDENSED FINANCIAL STATEMENTS | 2 |
|---|---|
| Website where the company's and consolidated financial statements are available | 5 |
| I) Statements of members of the Board of Directors | 6 |
| II) Interim report of the Board of Directors | 7 |
| III) Independent Auditor's Report on Review | 25 |
| IV) Interim Condensed Financial Statements for the period from January 1st, 2021 to June 30th, 2021 | |
| ‐ Interim Condensed Statement of Financial Position | 26 |
| ‐ Interim Condensed Statement of Income | 27 |
| ‐ Interim Condensed Statement of Comprehensive Income | 28 |
| ‐ Interim Condensed Cash Flow Statement | 29 |
| ‐ Interim Condensed Statement of Changes in Equity | 30 |
| V) Notes and accounting policies | 32 |
| Α. INFORMATION ABOUT THE COMPANY | |
| Α.1 General Information about the Company and the Group | 32 |
| Α2. Activities | 32 |
| Β. FINANCIAL REPORTING STANDARDS | |
| Β.1. Compliance with IFRS | 33 |
| Β.2. Basis of preparation of the financial statements | 33 |
| C. BASIC ACCOUNTING PRINCIPLES | |
| C.1. Consolidated financial statements (I.F.R.S. 10) and Business Combinations (I.F.R.S. 3) | 33 |
| C.2a. Property, Plant & Equipment (I.A.S. 16) | 38 |
| C.2b. Investment Property (IAS 40) | 39 |
| C.3. Intangible Assets (I.A.S. 38) | 40 |
| C.4. Impairment of Assets (I.A.S. 36) | 40 |
| C.5. Inventories (I.A.S. 2) | 41 |
| C.6. Financial Instruments: Presentation (IAS 32) | 41 |
| C.7. Financial Instruments: Disclosures (IFRS 7) | 41 |
| C.8. Provisions, Contingent Liabilities and Contingent Assets (I.A.S. 37) | 41 |
| C.9. Accounting for Government Grants and disclosure of Government Assistance (I.A.S. 20) | 42 |
| C.10. The effects of changes in Foreign Exchange Rates (I.A.S. 21) | 42 |
| C.11. Earnings per share (I.A.S. 33) | 42 |
| C.12. Dividend Distribution (I.A.S. 10) | 42 |
| C.13. Income Taxes & Deferred Tax (I.A.S. 12) | 42 |
| C.14. Personnel Benefits (I.A.S. 19) | 43 |
| C.15. Leases (I.F.R.S. 16) | 44 |
| C.16. Borrowing Cost (I.A.S. 23) | 45 |
| C.17. Operating Segments (I.F.R.S. 8) | 45 |
| C.18. Related Party Disclosures (I.A.S. 24) | 45 |
| C.19. Revenue from contracts with customers (I.F.R.S. 15) | 46 |
| C.20. Financial Instruments (I.F.R.S. 9) | 48 |
| C.21. Restricted Cash Deposits | 50 |
|---|---|
| C.22. Significant accounting estimates and judgments | 50 |
| C.22.1 Impairment of goodwill and other non‐financial assets | 50 |
| C.22.2 Income taxes | 50 |
| C.22.3 Deferred tax assets | 50 |
| C.22.4 Asset lives and residual values | 51 |
| C.22.5 Allowance for net realizable value of inventory | 51 |
| C.22.6 Allowance for doubtful accounts receivable | 51 |
| C.22.7 Provision for staff leaving indemnities | 51 |
| C.22.8 Contingent liabilities | 51 |
| C.22.9 Revenue from Contracts with Customers (I.F.R.S. 15) | 51 |
| C.22.10 Joint Arrangements (I.F.R.S. 11) | 51 |
| C.22.11 Fair Value measurement (I.F.R.S. 13) | 51 |
| C.22.12 Derivative financial instruments and hedging activities | 52 |
| D. NEW STANDARDS, INTERPRETATIONS AND AMENDMENT OF CURRENT STANDARDS | 52 |
| E. NOTES TO THE FINANCIAL STATEMENTS | |
| 1a. Segment Reporting | 56 |
| 1b. Secondary reporting format ‐ Geographical segments | 58 |
| 2. Property, Plant and Equipment | 60 |
| 2a. Ri hg t of U A se ssets |
62 |
| 3. Investment Property | 63 |
| 4. Intangible Assets | 64 |
| 5. Investments in Subsidiaries/Associates and other companies | 65 |
| 5a. Financial assets at fair value through other comprehensive income | 65 |
| 6. Clients and other receivables | 66 |
| 6a. Other Debtors / Ongoing litigation | 67 |
| 7. Cash and cash equivalent | 68 |
| 7a. Restricted Cash Deposits | 68 |
| 8. Trade and other payables | 68 |
| 8a. Contractual assets | 68 |
| 9. Borrowings | 69 |
| 9a. Change in financial activity | 70 |
| 10. Other provisions and non‐current liabilities | 71 |
| 11. Income Tax | 71 |
| 12. Share capital | 71 |
| 13. Other Reserves | 71 |
| 13a. Revaluation Reserves of Financial Instruments at fair value through other comprehensive Income | 72 |
| 13b. Reserves from foreign profits Law 4171/61 | 72 |
| 13c.Reserves based on article 48 of Law 4172/2013 | 72 |
| 14. Memorandum accounts ‐ Contingent liabilities | 72 |
| 15. Encumbrances ‐ Concessions of Receivables | 72 |
| 16. Number of personnel | 72 |
|---|---|
| 17. Contingent Receivables and Liabilities | 73 |
| 18. Transactions with related parties | 74 |
| 19. Joint ventures projects with J&P (Overseas) Ltd | 76 |
| 20. Fair Value measurement | 77 |
| 21. Important Events during the first half of 2021 & their impact on financial results | 78 |
| 22. Important post balance sheet date developments & events | 80 |
| 23. Approval of Financial Statements | 81 |
We hereby certify that the attached Interim Financial Statements, which are an integral part of the semi‐ annual financial report of article 5 of Law 3556/2007, are those approved by the Board of Directors of "AVAX SA" on 27.09.2021 and have been published by posting them on the internet, at (www.avax.gr), as well as on the Athens Stock Exchange web site, where they will remain at the disposal of the investing public for at least ten (10) years from the date of their compilation and disclosure. The annual financial statements, the auditor's reports and the reports of the board of directors of consolidated companies, according to decision #8/754/14.4.2016 of the Board of Directors of Greece's Capital Market Commission, are also available at the above e‐mail address.
It is noted that the disclosed condensed financial statements and information resulting from the interim six‐month condensed financial statements are intended to provide the reader with a general overview of the Company's and the Group's financial position and results but do not provide a comprehensive view of the financial position, the Company's and the Group's financial performance and cash flows, in accordance with International Financial Reporting Standards.
In our capacity as executive members of the Board of Directors of AVAX SA (the «Company»), and according to the best of our knowledge, we,
declare the following:
Marousi, September 27, 2021
CHAIRMAN & EXECUTIVE DIRECTOR
DEPUTY CHAIRMAN & EXECUTIVE DIRECTOR
MANAGING DIRECTOR
JOANNOU CHRISTOS KOUVARAS KONSTANTINOS MITZALIS KONSTANTINOS ID: 889746 ID: ΑI 597426 ID: AN 033558
(in accordance with article 5, paragraph 6 of Law 3556/2007 and Decision #8/754/14.04.2016 of Greece's Capital Markets Commission)
this Interim Report of the Board of Directors has been prepared in accordance with corporate and capital markets legislation and the decisions of the Capital Markets Commission, providing for the 01.01‐30.06.2021 period:
The Interim Report of the Board of Directors performs a complementary role to the financial statements included in the Interim Financial Report for the 01.01‐30.06.2021 period.
The Group's construction sector continued to recover in the first half of 2021, following the slowdown recorded over most of 2020 due to the imposition of restrictive measures on professional activities and movement of citizens, to address the pandemic spread of coronavirus covid ‐19 and protect public health. The improvement of the project mix, especially in the parent company, with the disengagement from previous loss‐making projects in the Persian Gulf, and the full restoration of the operation of the construction sites and the international supply chain, led to increased activity and improved segment profitability in the first half of 2021. The construction sector continues to contribute over three quarters of the Group's total revenue, while international projects further increased their share relative to domestic projects, reaching 75% of total revenues from construction in the first half of 2021. The share of the international construction sector in the Group's total revenue edged up, amounting to 59% in the first half of 2021, versus 57% in the corresponding half of 2020 and 2019.
The main energy‐related projects which the Group in working on are the design & construction of a 1,650MW power plant in Iraq, the design & construction of an exhaust gas desulphurisation system in the 375MWe lignite‐ fired Unit V of the Agios Dimitrios power plant in Kozani, and the IGB natural gas pipeline for the interconnection of the natural gas networks of Greece and Bulgaria. The experience from ongoing projects, as well as other emblematic projects delivered in the recent past, are a valuable resource in the search for new large energy projects in the form of design & construction (EPC). During this period, the Group participates in the tender procedures for several projects, mainly in the Middle East region where there is an energy deficit and the demand for specialized manufacturers in large‐scale projects remains high.
In the field of Energy Production, 100% subsidiary Volterra has a portfolio of Renewable Energy Sources (RES) projects with a total capacity of 285MW (10 projects), in various stages of development (in operation, ready to build or under construction, ready to participate in competitive processes, and in development). All projects are developed by Volterra's team of engineers from scratch (green‐field) and in collaboration with external consultants, while the majority are Wind and Photovoltaic Parks. Within the first half of 2021, subsidiary Volterra Lykovouni SA completed the construction and entered trial operation of the Lykovouni and Ampelia Wind Farms with a total capacity of 53.7MW in Viotia, while subsidiary ILIOPHANIA SA completed the complete operation of a 2.65MW solar farm in Bitakos, Viotia, which was connected to the joint Substation Ypato II along with the Lykovouni and Ampelia projects. Total net production from the pilot operation of the above projects during the first half of 2021 amounted to 40,000MWh. The 16MW Kouromantri‐Riganolakka Wind Farm of subsidiary Volterra KR continues its operation producing approximately 20,000 MWh of green energy during the first half of 2021, while also issuing green certificates (Guarantees of Origin) of a corresponding amount of energy customers or companies of Volterra SA. Compared to the first half of 2020 and at a consolidated level, there was an increase of 225% in net energy production, while turnover from production increased by 200% due to the inclusion of new projects. Regarding the development of the remaining portfolio, Volterra is preparing the final licensing and financing of 2 new wind farm projects in Western Macedonia, aiming to start their construction in the first half of 2022.
Regarding energy trading (imports / exports), Volterra continues to maintain strong partnerships with counterparties in neighboring countries, through which it participates in the energy markets of Southeastern Europe. In the context of the development of the wholesale portfolio (Trading), the activity of Cross‐Border Trade (physical transit of energy) through Albania was intensified, with the conclusion of a new strategic cooperation. Thus, the goal of developing trade through the Greece‐Albania‐Montenegro‐Serbia‐Hungary route was achieved. Coupling with the Bulgarian Market took place in May, and as a result, the daily transit of energy through this border was stopped. In addition, participation in futures markets in Europe (Germany, France, Italy & Hungary) continues, with the aim of hedging against international fluctuations in electricity prices. Finally, in terms of organization, the Wholesale Department was re‐organised to meet the challenges arising from the new structure of the Market and was renamed Energy Management. Therefore, detailed tools for electricity costing and portfolio consumption estimation were developed, while the next goal of the management is the analysis and organization of the gas sector in the light of the new structure expected for the specific market (Gas Exchange).
Volterra continues to grow steadily, increasing its market share. The activity of the Electricity Supply during the first half of 2021 achieved an increase of 32.64% in new clients compared to the corresponding period last year, while the client load increased by 12.20%. Natural Gas supply activity increased clientele by 59.70% and the corresponding load by 161.27% as a result of the penetration in industrial customers as well. Also, there are 17 Retail stores (privately owned and franchised) in various cities of Greece, confirming the customer‐centric strategy
of Volterra, while the continuous upgrade of the Information Systems allows the smooth operation of the company, successfully implementing the remote work and observing all safety rules. The turnover from the activity of energy supply (marketing) exceeded €58 million in the first half of 2021, recording an increase of 13.7% compared to the corresponding period last year. In the Retail Market, as a Provider of Electricity and Gas, during the first half of the year Volterra dealt with the effects of the rapid increase in wholesale costs, a phenomenon which is observed throughout Europe, the structural changes that have brought the start of the Energy Exchange, coupled with the restrictions arising from the respective Supply Code. The increase in the prices of Natural Gas, a fuel used in the production of electricity, exceeds 120% while the same increasing trend is followed by the carbon dioxide (CO2) emission index. As a result, Market Clearing Price increased significantly (+157% June 2021 / June 2020). Also, the launch of the Energy Exchange increased the costs related to the Additional Charge Accounts, costs incurred by the supplier, while creating increased needs for cash flow as the requested energy in combination with the increased Clearing Price must be repaid on the same day. Under the conditions mentioned above, which intensified in the second quarter of this year, the Procurement Code is an inhibiting factor in the immediate harmonization with the new data. Based on this, if the supplier does not have the consent of the consumer to adjust his charges, he is obliged to inform in writing and activate the new charges within sixty days from the date of notification. The aforementioned term in combination with the ever‐increasing volume of our customers (Industrial Customers, Small and Medium Enterprises and Home Customers) made it impossible for the immediate updating of prices to all our customers and the results of our coordinated actions will be evident in the second half of this year.
The Group includes in its financial statements low amounts of income from participations in concessions, because except in a few cases it does not consolidate them completely but only proportionally consolidates their pre‐tax results. Group results for the first half of 2021 include the share of profits from affiliated companies for its participation in the concessions, such as Attiki Odos, Rio‐Antirrio Bridge, the Aegean Motorway, Olympia Odos, etc. During the first half of 2021, but also in the following months, traffic loads and income of these concessions recovered in relation to 2020, when there was negative impact from the imposition of lockdown of the economy and restrictive measures on the movement of citizens. Traffic data show that the improvement continues past the first half of the year, gradually approaching or even exceeding in some cases the data of the corresponding period before the pandemic. It is noted that the concessionaire companies, whose financial results were negatively affected by the government's counter‐traffic measures, initiated the procedures for claiming compensation for the lost revenue. In the long run, the revenues and dividends of these concessions are expected to trend according to the economic situation in our country, without no issue regarding the collection of dividends.
The Group's consolidated turnover grew 24.7% to €324.3 million in the first half of 2021 versus €260.0 million in the respective period of 2020.
Gross profit for the Group in the first half of 2021 rose to €24.8 million versus €22.8 million in the year‐earlier period, however the respective profit margin shrank to 7.6% in 2021 versus 8.8% in 2020 despite the fact that the construction segment recorded increased gross profitability and a wider gross profit margin.
The Group's general administrative and selling expenses edged up to €21.4 million in the first half of 2021 from €21.0 million a year earlier, representing a lower proportion of total revenues.
Income from associates rose in the first half of 2021, reaching €13.4 million versus €10.9 million in 2020, mainly due to Limassol Marina and the Athens Ring Road.
Taking all this into account, the consolidated profit at operating level in the first half of 2021 reached €20.4 million from €18.8 million in the respective period of 2020.
On a consolidated pretax basis, the Group turned in a €7.7 million profit in the first half of 2021 versus a €6.2 million profit in 2020, while net profit after tax reached €5.9 million in the first six months of 2021 as opposed to a €10.5 million profit in 2020, when a tax return was realised.
Group earnings before tax, interest expenses, depreciation and amortisation (EBITDA) improved in the first half of 2021 in relation to the respective period of 2020, reaching €32.1 million versus €26.7 million.
Total net interest expense for the Group increased marginally to €12.7 million in the first six months of 2021 versus €12.6 million a year earlier. The weighted net financial cost for the Group's bond loans amounted to 3.93% in the first half of 2021, versus 4.05% in 2020.
Net debt at Group level, including liabilities from leasing, dropped during the first six months of 2021, amounting to €484.9 million on 30.06.2021 as opposed to €511.6 million at the end of 2020. More specifically, the Group's short‐term debt & leasing increased €10.9 million in the first half of 2021, amounting to €115.0 million, due to the need for working capital and letters of credit for projects, as well as leases for technical equipment. Long‐term liabilities from bond loans and leasing fell substantially by €34.4 million in the first half of 2021, amounting to €476.3 million on 30.06.2021, in line with the bond repayment schedule. Cash and restricted deposits for the Group increased to €106.3 million on 30.06.2021 versus €103.3 million at end‐2020.
At a parent Company level, total debt & leasing amounted to €492.8 million on 30.06.2021, down from €517.9 million at the end of 2020. Net debt for the parent company followed suit, easing to €404.3 million at mid‐2021 from €431.7 million at end‐2020. The net financial cost of the Company in the first half of 2021 fell to €10.7 million from €11.7 million a year earlier.
Consolidated net equity at the end of the first half of 2021 reached €98.6 million versus €90.5 million at the end of 2020, due to the profitable result of the period.
The Group's operating cash flow was marginally positive by €0.4 million in the first half of 2021, recording a sharp improvement relative to the year‐earlier period when the Group realised a €21.3 million operating cash outflow. The investment cash balance amounted to a €41.4 million inflow in the first half of 2021, which was used to relax long term debt.
Free cash flow was positive in the first half of 2021, the inflow amounting to €41.8 million as opposed to a €1.5 million outflow recorded in the respective period of 2020.
| amounts in euro | Construction | Concessions | Energy | Other Activities | Total |
|---|---|---|---|---|---|
| Net Sales | 254,309,766 | 1,873,987 | 62,740,471 | 5,368,252 | 324,292,476 |
| Gross Profit | 23,882,862 | 573,239 | (1,393,914) | 1,717,583 | 24,779,770 |
| Pre tax Profit Share from Associated Companies |
(41,008) | 13,726,162 | 0 | (278,548) | 13,406,607 |
The Group's financial results for the first half of 2021 are broken down by business segment as follows:
| Operating Profit (EBIT) | 9,022,659 | 14,240,123 | (3,074,304) | 204,747 | 20,393,224 |
|---|---|---|---|---|---|
| Depreciation | 5,317,064 | 640,907 | 1,888,146 | 399,922 | 8,246,039 |
| EBITDA | 17,796,989 | 14,881,030 | (1,186,158) | 604,668 | 32,096,528 |
| Pre‐Tax Profit | 7,655,389 | ||||
| Net Profit | 5,927,753 |
The Group's financial results for the first half of 2021 are broken down by geographic region as follows:
| amounts in euro | Greece | International | Total |
|---|---|---|---|
| Markets | |||
| Net Sales | 133,063,419 | 191,229,057 | 324,292,476 |
| Gross Profit | (3,518,258) | 28,298,028 | 24,779,770 |
| Pre tax Profit Share from Associated Companies | 4,397,291 | 9,009,315 | 13,406,607 |
| Operating Profit (EBIT) | (2,950,880) | 23,344,105 | 20,393,224 |
| Depreciation | 6,896,454 | 1,349,584 | 8,246,039 |
| EBITDA | 7,402,840 | 24,693,689 | 32,096,528 |
| Pre‐Tax Profit | (9,074,142) | 16,729,531 | 7,655,389 |
| Net Profit | (10,517,377) | 16,445,131 | 5,927,753 |
The following are the most important events concerning the Group during the first half of 2021:
The Annual General Meeting of Company shareholders held on 24.06.2021 decided a series of important changes in management bodies and committees.
More specifically, it elected a new Board of Directors, for a three‐year term to 23.06.2024, which convened and appointed its members as follows:
It also elected a new Audit Committee for a three‐year term to 23.06.2024, which convened and appointed its members as follows:
Furthermore, a new joint Board members' Nomination and Remuneration Committee was launched, as per article 10, par.2 of Law 4706/2020, which convened and appointed its members as follows:
During the first half of 2021, the Group signed contracts for public & private projects, subcontracts and services totaling €62 million.
Through litigation, the Company achieved the reduction of the annual lease of Athens Marina, in which it holds a 99.84% stake, from €3 million to €2 million. This brought about a €13 million drop in long‐term debt, as the present value of the leases included in the loans decreased to €25 million in 2020 from €40 million in 2019. In addition, due to the above reduction, the amortization of the rights of use of Athens Marina from 2021 onwards will amount to €1,071 thousand per annum, compared to €1,624 thousand in 2020 and 2019, (ie a decrease of €553 thousand annually).
The Company set up an ESG / Sustainable Growth Committee, to take a systematic and in‐depth approach on the issue of sustainable growth, and improve the socio‐economic footprint caused to the economy and society by direct, indirect and induced actions and construction projects. The executives that make up the committee come from the departments of QSHE & Sustainability, Procurement, Human Resources, Investor Relations, Internal Audit, Corporate Communication, as well as the Banking Relations and Risk Management units of the Finance Department.
The Company signed on 01.02.2021 an annual contract with Piraeus Securities for the provision of market making services on its shares, to enhance their liquidity.
In March 2021, the Athens Water Authority awarded a new annual extension of the contract for the operation and maintenance of the Psytallia Wastewater Treatment Centre, which was carried out by a consortium in which the Company participates. Another consortium, which our Company is a member of, participates in the Athens Water Authority tender held in 2019 for the operation and maintenance of the Psytallia Wastewater Treatment Centre for a 5‐year period. The decision on the final result of the competition is pending.
[see section "Important post balance sheet date Developments & Events" for more details]
a. The Company wrote off an amount of €22.3 million from the receivables from contractual assets (construction contracts), which had not been invoiced, following legal developments towards the appeal by a consortium against the Greek State for the project titled "Extension of the PATHE road axis in the Skarfia‐Lamia‐Raches section". Therefore, turnover in the first half of 2021 was burdened with a €22.3 million charge and the result after taxes by €19.1 million. This amount is not included in the calculation of EBITDA, because it is not a write‐off of an invoiced receivable.
b. The Company's lawsuit against PPC for a project in Atherinolakkos, Crete was accepted for an amount of €4,757,158 plus interest, which is accrued since December 2009 and already reached €5,400,000. The deadline for the appeal has started and according to the legal advisors of the Company, if exercised by PPC, there is no room for acceptance of the appeal. Therefore, for this amount a relevant claim has been recognized through contractual assets (construction contracts).
The Greek economy returned to growth in 2021 following the crisis of the Covid‐19 pandemic. According to EUROSTAT estimates, the economic activity of Greece in the first quarter of 2021 increased by 5% in GDP, while the domestic construction sector in the first half of 2021 grew 3.3% compared to the corresponding half of 2020. The gradual lifting of restrictive measures due to extensive vaccination has positively affected the Greek economy and consequently the activities of the Group.
In Concessions, the gradual abolition of travel restrictions increased traffic on the Athens Ring Road, by 4% in the first half of 2021 compared to the corresponding half of 2020, leading to an increase in revenue. Based on available data, an increase is expected in the second half of the year. Normalisation of activities, along with the cash and reserves maintained at project level, loan liabilities are expected to be serviced within the stipulated time frame. The Management of the Group estimates that their value has not been affected at this stage.
In the Construction sector, there are still some delays observed in ongoing projects, while at the same time there are also delays in tendering procedures for the assignment of new projects. There are also increases in the cost of materials and transportation costs, which in the domestic market are dealt with through contractual price revisions, while abroad, where no price revisions are provided, any increases seep into production costs. Existing international projects are expected to be completed by 2021, therefore due to their advanced stage of completion, any impact of price increases on materials such as cement and iron will not be significant.
For the energy sector, reference has been made to the section "Evolution of Main Business Activities".
In the context of the support of businesses by the Greek Government, a reduction of liabilities in the real estate leases of the Group amounting to €1,375,421 for the first half of 2021 took place.
The spread of the Covid‐19 pandemic is not yet contained and will continue to affect the second half of 2021. Within 2021, measures were taken and intensified to protect staff and associates, both on construction sites and in offices of the Group companies. With a sense of responsibility, AVAX Group monitors any developments to respond appropriately at all levels to ensure the health of its employees and its smooth business operation, mainly with regards to cash flows and contractual obligations from the execution of projects.
The unexpected and intense reversal of the recovery of the Greek economy at the beginning of 2020 due to the outbreak of the covid‐19 pandemic led practically the whole planet to take measures with significant effects on the free movement of citizens and economic activity. Governments and central banks eased on policies of economic austerity and fiscal discipline. The global economy and businesses have gradually begun to adapt to the new conditions, changing production processes, the operation of the supply chain, but also the sales and work model. The emergence of covid‐19 mutations and outbreaks in the number of cases locally and globally, may ultimately lead to the extension of restrictive measures for citizens and the adoption of additional fiscal measures to support economies. In this context, in the short to medium term, governments in developed countries are considered unlikely to overturn the loose economic and fiscal recipe. The change in the Western military doctrine for Afghanistan and the return of the country to a theocratic, non‐democratic regime is expected in the long run to have implications beyond the Central Asian region. The spread of religious fanaticism is worsening the West's relations mainly with Asia and especially with certain regions of the Arab world, while at the same time tensions persist between the Western world and China on a commercial level.
Group activities are subject to various risks and uncertainties pertaining to the nature of its business activities, prevailing geopolitical, credit and currency conditions, relations with clients, suppliers and subcontractors. To a large extent, the risk arising from these relations and transactions is predictable or may be dealt with the selection of the appropriate management policy due to the accumulated expertise of the Group's senior staff and official procedures. It is always desirable to limit the overall level of risk to tolerable and manageable levels for Group operations. Nevertheless, no system and risk management policy can offer absolute security against all risks, as the ever‐ changing international political and economic environment may overturn any situation which was taken for granted and considered manageable in advance.
The main risks and uncertainties, their management policies and their impact on Group activities, are as follows:
The Group's Strategic Planning & Risk Management Committee has adopted a credit policy according to which the credit score of new clients is assessed individually before they are officially offered the standard terms and conditions of payment and delivery. Regarding public works, until the economic environment improves, the Group follows a policy of participating only in tenders where project financing is secured with European Union funds.
At any point in time, the Group is involved in a large number of projects in Greece and abroad, with select clients with a proven record of reliability and credit worthiness. In the local market, the Greek State has traditionally been the largest client, as the private sector historically is a small player in building facilities and infrastructure projects where the Group specializes in. Participation in self‐financed projects in the form of concessions and PPP has somewhat limited the participation of the Greek State in total Group revenues. In international markets, the group mostly deals with private‐sector clients. Under this light of clientele diversification, the Group presents a medium level of credit risk concentration.
As a result of the international practice in the construction sector, Group transactions are required to be secured to a large extent by the intervention of the banking sector and international credit security firms in issuing guarantees in all stages of a signed project contract, from participating in the bidding, to receiving an advance payment, the execution of the project in discrete phases till its final delivery.
To calculate the provision for impairment of receivables from clients and other debtors, the Group assesses the risk level of each client according to the aging breakdown of receivables in arrears and their broader credit‐worthiness, while also applying a general coefficient for doubtful receivables on the total of its receivables which depends on prevailing business conditions.
To provide a realistic view of the level of doubtful receivables in its financial accounts and keep any adverse impact in upcoming financial periods in check, the Group has in recent years been charging increased provisions for impairment of its receivables from clients and debtors, as may be seen in the following table.
The Company and the Group have implemented the simple form of IFRS 9 for the impairment of expected credit losses on the balance of commercial and other receivables on the date of first implementation.
The Group is exposed to volatility in the prices of raw materials and other materials supplied, in most cases of which they have internationally defined prices ("commodities"), such as cement, metal reinforcement and fuel. The Group centrally controls the supply of materials for the needs of the companies it controls, in order to achieve economies of scale and to "lock" the supply price through pre‐purchase of large quantities. Recently, there have been continuous increases in the prices of many raw materials and finished materials used in construction, mainly driven by rising international demand.
Liquidity risk refers to the likelihood of current assets, ie those that may be disposed off on a short‐term span, being insufficient to cover short‐term liabilities when they become due. As per the following table, the Group had positive net current assets at the end of the first half of 2021.
| amounts in € '000 | GROUP | COMPANY | |||
|---|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | ||
| Current Assets, excluding cash & equivalent and short‐term Blocked Deposits (Α) |
547,534 | 529,241 | 493,664 | 485,200 | |
| Short‐term Liabilities, excluding bank debt (Β) | 437,410 | 440,501 | 387,052 | 375,932 | |
| Net Current Assets (Α – Β) | 110,124 | 88,740 | 106,611 | 109,268 |
The Group follows a policy of securing adequate cash to meet upcoming liabilities at any point in time. To this extent, the Group seeks to maintain cash in physical form or in agreed credit lines sufficing for expected payments over the period of a month. The Finance Department prepares a detailed monthly and 12‐month cash plan, as well as revising on a quarterly basis the 5‐year budget and cash flow statement.
The basic criterion in evaluating the course of cash liquidity is the aging analysis or maturity of the Group's financial liabilities, starting from balance sheet date until those liabilities are due.
The Group occasionally makes use of complex financial products in association with the banking sector to hedge the cash flow primarily to specific investments in self‐financed projects. The part of the cash flow hedge which was absolutely effective is credited directly to shareholder funds through the Table of Changes in Own Equity of concessionaires, in line with the provisions of the International Accounting Standards. The ineffective part of the gain or loss is charged directly to the income statement of the companies. Therefore, the Group books its share in its consolidated financial accounts according to the respective entries in associated companies, in line with International Accounting Standard 28.
The Group receives a large part of its revenues from works in international markets, with a significant portion of those revenues coming from countries outside the eurozone. In cases of projects outside the eurozone, the Group makes an effort to match its receivables in foreign currency with payables in the same currency, effectively hedging part of its foreign exchange risk. The Group also carries out, partially at minimum, financial hedging of its receivables and payables in foreign currency through agreements with banking institutions.
The Company and its subsidiaries are covered by reputable insurance companies against basic risk arising from their business activity, relating to breakdowns and damages in their technical equipment, personnel accidents, and force majeure events. Insurance coverage is bound to usual terms for each contract and is seen adequate overall. Basic insurance provides full coverage of the undepreciated accounting value of fixed assets against catastrophic and other risks, with an emphasis on technical equipment in Greece and abroad as well as construction projects. Insurance contracts for projects also cover civil responsibility of the Company versus third parties.
Geopolitical risk is present throughout the Eastern Mediterranean region, the Middle East and Northern Africa due to conflicts and unrest linked to the overturning of old political regimes, the rise of new fanatic religious groups, and the conflict for control of natural resources.
The Group's international activities and expansion outside Europe has been focused on countries with limited geo‐ political risk, such as Jordan and some countries in the Persian Gulf, however the business environment has proven positive even in countries with perceived increased risk, like Iraq. Turkey's actions in disputing national territorial conditions are an additional factor of uncertainty in East Mediterranean, nevertheless posing no threat to Group projects.
The Group has halted works towards the construction of the 590MW thermal power plant at Deir Aamar (Phase II) near the city of Tripoli in Lebanon, and has filed a Petition for Arbitration to the International Centre for Settlement of Investment Disputes (ICSID) for its claim against the state of Lebanon. This petition was stalled until 31.05.2020 due to negotiations to solve the issue off‐courts. While the pursuit of an amicable settlement of the dispute between the two sides continues, the Company decided to restart the stalled process before ICSID. The Company submitted the first Claimant's Memorial to the Arbitration Court on 22.06.2020.
On 23.06.2021, the State of Lebanon submitted its detailed memorandum and on 06.08.2021, the two parties simultaneously submitted requests for documents, a process which is expected to be completed on 15.11.2021. Following the above procedure, on 24.01.2022, the Company will submit its response to the memorandum of the Lebanese state. Based on these data, the assessment of the recoverability of the receivable on 30.06.2021 remains unchanged from 31.12.2020. [see Note 6 to the detailed Financial Statements]
The Group finances its fixed assets with long‐term bond loans and its operations with working capital, while also using performance bonds issued by banking institutions to participate in project tenders and guarantee their proper execution to clients. The terms and pricing of those financial products, ie interest rates and bond fees, are determined by international and local liquidity conditions beyond the control of the Group, despite the good relationship maintained with the local banking system.
Total consolidated debt & leasing for the Group on 30.06.2021 amounted to €591 million, down from €615 million at end‐2020, due to the production of positive investment cash flow.
Long‐term debt continues to represent the largest part of the Group's liabilities from loans, making up around 80% of the total in the first half of 2021, broadly unchanged since the end of 2020.
At parent Company level, total debt amounted to €493 million on 30.06.2021, up from €518 million at the end of 2020. The parent company's net debt exhibited the same trend, easing to €404 million in mid‐2021 from €432 million at end‐2020.
The economic implications of the international measures to curb the covid‐19 pandemic implemented in early 2020 are less apparent in 2021, but will continue as long as restrictive measures are applied to the daily lives of citizens and the operation of trade and businesses. In the second half of 2021, but also in the future, strong recovery of the world and mainly of the Greek economy is expected, with the help of the global epidemiological improvement brought about by the vaccination programmes, mainly in the countries of the developed and developing world, but also due to the implementation of targeted fiscal measures to support citizens and the economy with European resources.
Already, disbursements have been made for Greece's Plan for Recovery and Sustainability over 2021‐2026, amounting to €30.9 billion, while a new package of financial support worth €26 billion is in the pipeline, as a continuation of the current European financial aid package which is completed at the end of 2023. In this light, the Greek construction sector is expected to record a significant recovery in economic activity, as the above support packages for the Greek economy include a large element of financing for infrastructure projects, mainly through Public & Private Partnerships, but also Renewable Energy Sources, the energy interconnection of the islands and various forms of energy storage.
AVAX Group estimates that this year will mark the exit from a prolonged period of stagnation of construction activity and loss‐making economic results as a result of the economic crisis experienced by our country, by replenishing the ground lost during 2020 and accelerating the execution rate of all older projects. At the same time, there is a continuous recovery in the traffic load and the revenues of the concessions in which the Group participates and which were affected in 2020 by the administrative measures to deal with the covid‐19 pandemic. As of the end of the first half of 2021, the Group's work‐in‐hand according to International Accounting Standards, ie the part of signed construction contracts that has not been recorded in the financial statements in terms of income and expenses, amounted to €0.65 billion, compared to €0.98 at the end of 2020. The amounts do not include contracts outside the construction sector, such as real estate and other services. Following 30.06.2021, the Group has signed new contracts of significant value, the largest of which is Line 4 of the Athens Metro, while there are also contracts pending for signing. Taking into account all those projects, work‐in‐hand amounts to around €1.7 billion.
This Interim Financial Report features some «Alternative Performance Measures», based on the ESMA Guidelines on Alternative Performance Measures dated 05.10.2015), besides the International Financial Reporting Standards which derive from the Group's financial statements. APMs are not a substitute for other financial figures and financial indicators of the Group which are calculated according to IFRS, rather they serve the purpose to allow the investment public to get a better understanding of the Group's financial performance.
The APMs used in the Group's Interim Financial Reports are as follows:
| amounts in € '000 | GROUP | COMPANY | ||
|---|---|---|---|---|
| 6Μ 2021 | 6Μ 2020 | 6Μ 2021 | 6Μ 2020 | |
| Pre‐tax Earnings (Α) | 7,655 | 6,208 | 3,374 | 8,078 |
| Financial Results (Β) | (12,738) | (12,570) | (10,655) | (11,656) |
| Investment Results / Adjustments for non‐cash items (C) |
(3,457) | (654) | (3,457) | (700) |
| Depreciation (D) | 8,246 | 7,278 | 4,307 | 4,391 |
| EBITDA (Α ‐ Β ‐ C + D) | 32,097 | 26,710 | 21,793 | 24,824 |
Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) are defined and calculated according to Circular #34 of the Capital Markets Commission, as follows: Earnings before tax, financial and investment results and total depreciation (EBITDA) = Profit / (Loss) pre tax earnings +/‐ financial and investment results + Total Depreciation (of tangible and intangible assets). EBITDA is widely used by financial analysts and banks to evaluate the capacity of corporations to service their debt out of generated cash flow.
| amounts in € '000 | GROUP | COMPANY | ||||
|---|---|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |||
| Total Bank Debt + Leasing (Α) | 591,318 | 614,849 | 492,801 | 517,923 | ||
| Shareholder Funds (Β) | 98,618 | 90,527 | 291,911 | 293,814 | ||
| Capital Leverage ( Α / B ) | 6.00 | 6.79 | 1.69 | 1.76 |
The capital leverage indicator is calculated as the ratio of the total of Short‐term loans, Long‐term loans and Leasing at year‐end to Total Shareholder Funds at year‐end. This indicator examines the relationship between loans and own equity to assess whether the business is adequately capitalized or exhibits excessive exposure to bank loans and borrowed capital.
| amounts in € '000 | GROUP | COMPANY | ||||
|---|---|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |||
| Bond Loans | (424,986) | (457,831) | (370,311) | (404,243) | ||
| Jessica Loans / EBRD (project financing) | (2,186) | (3,187) | (2,186) | (2,186) | ||
| Bond Loans – due in next 12months | (49,622) | (47,875) | (42,799) | (43,977) | ||
| Leasing | (56,462) | (57,739) | (28,073) | (29,191) | ||
| Short‐term Loans | (58,063) | (48,217) | (49,433) | (38,325) | ||
| Total Bank Debt & Leasing (Α) | (591,318) | (614,849) | (492,801) | (517,923) | ||
| Cash & Equivalent and Blocked Deposits (Β) | 106,376 | 103,262 | 88,469 | 86,227 | ||
| Net Bank Debt & Leasing (Α + Β) | (484,943) | (511,587) | (404,332) | (431,695) |
Net Debt & Leasing is calculated by subtracting Cash & Equivalent and Blocked Deposits from the total of Short‐term and Long‐term Loans and Leasing. As a performance indicator, net debt & leasing gives an immediate view of the capacity of a business to repay all or part of its debt making use of its cash and equivalent.
| amounts in € '000 | GROUP | COMPANY | ||
|---|---|---|---|---|
| 6Μ 2021 | 6Μ 2020 | 6Μ 2021 | 6Μ 2020 | |
| Pre‐Tax Earnings | 7,655 | 6,208 | 3,374 | 8,078 |
| Depreciation | 8,246 | 7,278 | 4,307 | 4,391 |
| Other Cash Flow Items | 926 | (328) | 2,685 | (6,135) |
| Change in Working Capital | (16,461) | (34,371) | (4,424) | (41,633) |
| Operating Cash Flow (Α) | 366 | (21,312) | 5,942 | (35,299) |
| Net Investment Cash Flow (Β) | 41,408 | 19,811 | 33.394 | 36.611 |
| Free Cash Flow (Α + Β) | 41,774 | (1,501) | 39,336 | 1,312 |
Free Cash Flow is measured by deducting Net Investments from Operating Cash Flow, providing an indication of the cash generated by a business due to its operation after paying for investments in assets. Positive free cash flow allows for financing of new activities to expand the business and relax debt, while any free cash outflow must be matched by new equity injected by shareholders or borrowing from the banking system.
The Company applies a series of policies on issues relating to Corporate Responsibility and Corporate Governance, according to pertinent legislation.
The Environmental Policy of the Company comprises a set of principles, defined as commitments, through which top management describes the long‐term direction of the Company with respect to the support and enhancement of environmental performance. The Company has developed and applies an Environmental Management System according to international standard ISO 14001/2015.
As part of the applied Environmental Management System, the Company has designed and applies various Programmes and Procedures in a bid to reduce energy consumption in worksites and central installations and offices. It is certified to international standard ISO‐50001/2011 for energy management.
The Company abides by local, national, EU and international legislation (depending on the country) in all its projects. As part of the applied Environmental Management System, the Company has designed and applies various Programmes and Procedures for Waste Management. In its effort to practice best environmental management, the Company has reached agreements with licensed firms and institutions for waste management and recycling.
The Company is very active in the area of social responsibility, realizing the interaction with the local communities it is active in. AVAX's contribution takes the form of financial support of cultural and sports activities of various local communities and institutions, along with a number of events focusing on humans as individuals. The Company views social responsibility as a broader notion, where the target is not only to support specific groups of people, rather it is to improve the quality of life and safety of its personnel, residents neighbouring to its work sites and users of its projects.
At the end of the first half of 2021, the Group and the Company employed 2,358 and 1,892 personnel, respectively, versus 2,186 and 1,680 personnel on 31.12.2020, and 2,399 and 1,405 on 30.06.2020. Personnel totals do not include staff employed by joint ventures which the Company and the Group participate in.
The Company has a fully operating department for managing Quality, Safety and Environment issues which supports the application of management systems for quality, safety and environmental impact through the Group's central MIS system. The Group has for many years been certified to ISO‐9001/2015 standard for quality, to ISO‐14001/2015 for the environment and OSHAS‐18001/2007 for safety, and is in the process of applying a Total Quality Management system, which is a leading move for the construction sector.
The Company has also hired a doctor, who is available to all personnel for medical recommendations and advice at its headquarters for a two‐hour period once per week.
Due to the covid‐19 pandemic, hygiene measures have been tightened throughout the Group, with regular disinfection of workplaces, compulsory use of a face mask, promotion of remote work and checks on those returning from business trips or work leave.
The Group has put in place a policy of specific benefits for its employees, including:
The Company invests in its human resources and applies a Training Procedure to all hierarchical levels. The purpose of the procedure is to define the conditions for the most efficient training of staff, making use of approved subsidies, with a view to increase performance and satisfaction derived from work. Training is done both in‐house and by external institutions.
The procedure is applied across all personnel when need arises, for example:
The Company incorporates in its corporate values the 17 Sustainable Development Targets of the United Nations which pertain to the protection of human and labour rights, prosperity across age groups, equality of sexes, easing of inequalities both inside and among countries. The Code of Ethics and Conduct includes the afore‐mentioned values and provides personnel with the appropriate guidelines to promote the Respect of Human Rights.
The Group has set as its top priority the protection of the personal data of associates and clients for all of its companies. For this reason, it has implemented a set of rules and procedures that ensure full compliance with the European and national legislative framework. The Harmonisation Plan for the General Data Protection Regulation ("GDPR", ie Regulation 2016/679 of the European Parliament and European Council of April 27, 2016) implemented by the AVAX Group is based on existing and new procedures and includes systematic scrutiny of operations, services and products of its companies, with the sole aim of achieving the most direct and smooth compliance of the companies.
Following a long appeal process in the tender conducted by the Athens Water Authority in 2019 regarding the operation and maintenance of the Psytallia Wastewater Treatment Centre for a period of 5 years, the Council of State in August 2021 ruled that the only acceptable bid was submitted by the Aktor‐Avax‐ERGOTEM consortium. So far, the technical bids have been opened, and the opening of the financial bids for the completion of the tender is pending.
During the third quarter of the year, the Group has signed a small number of contracts for low value projects, as well as the contract for the construction of the first phase of Line 4 of the Athens Metro, namely the Veikos‐Goudi section, as leader of a consortium with a discount offer of 12.19% on a budget of €1.8 billion. There are also a number of projects of significant value to be signed in the near future, adequately replenishing the Group's work‐in‐ hand, while project execution is picking up pace.
The following are the most important transactions of the Company with related parties, ie subsidiaries and related companies as per IAS 24, over the 01.01.2021‐30.06.2021 period and the comparative 01.01.2021‐30.06.2020 period:
| (amounts in € '000) | 01.01.2021‐30.06.2021 | 30.06.2021 | ||
|---|---|---|---|---|
| Group | INCOME | EXPENSES | RECEIVABLES | PAYABLES |
| AGIOS NIKOLAOS CAR PARK | 13 | |||
| OLYMPIA ODOS OPERATION SA | 2,791 | 390 | ||
| OLYMPIA ODOS CONCESSION SA | 794 | 229 | 1,234 | |
| GEFYRA OPERATION SA | 37 | 23 | ||
| GEFYRA CONCESSION SA | 4 | 1 | ||
| ATTIKI ODOS SA | 2,051 | 107 | 941 | 13,636 |
| AEGEAN MOTORWAY SA | 3,151 | 237 | ||
| MOREAS MOTORWAY SA | 1,753 | 178 | ||
| SALONICA PARK SA | 8 | 13 | ||
| POLISPARK SA | 2 | 1 | ||
| ATHENS CAR PARKS SA | 31 | |||
| METROPOLITAN ATHENS PARK SA | 0 | |||
| BIOENERGY SA | 1 | 55 | ||
| BONATTI J&P‐AVAX SRL | 67 | 148 | 3 | |
| ILIA WASTE MANAGEMENT PPP | 1 | 4,562 | 10 | |
| PYRAMIS SA | 161 | 518 | ||
| LIMASSOL MARINA LTD | 19,602 | |||
| J&P (UK) LTD LONDON | 31 | |||
| JCH SERVICES LTD | 86 | |||
| JCH LTD | 673 | |||
| 5Ν SA | 151 | |||
| SC ORIOL REAL ESTATE SRL | 420 | |||
| ENERSYSTEM FZE | 5,218 | 420 | ||
| CYCLADES RES ENERGY CENTRE SA | 1 | 8 | ||
| J/V J&P‐AVAX ‐ J&PARASKEVAIDES OV.LTD (JORDAN) | 437 | |||
| Joint Ventures | 858 | 21,336 | 6,079 | |
| Management members and Board Directors | 1,235 | 739 | ||
| 11,562 | 6,722 | 48,296 | 23,866 | |
| Company | INCOME | EXPENSES | RECEIVABLES | PAYABLES |
| ETETH SA | 47 | 52 | 692 | 6,930 |
| TASK AVAX SINGLE SHAREHOLDER SA AVAX ΙΚΤΕΟ SA |
35 4 |
669 1 |
1,398 11 |
3,540 444 |
| AVAX DEVELOPMENT SINGLE SHAREHOLDER SA | 159 | 8,434 | ||
| ATHENA CONCESSIONS SA | 25 | 41 | ||
| ERGONET SA | 49 | 1 | ||
| MONDO TRAVEL SA (UNDER LIQUIDIATION) | 108 | |||
| ATHENS MARINA SA | 73 | 79 | 270 | |
| AVAX CONCESSIONS SINGLE SHAREHOLDER SA | 1 | 73,066 | 20 | |
| VOLTERRA SA | 144 | 294 | 384 | 728 |
| VOLTERRA K‐R SINGLE SHAREHOLDER SA | 2 | 122 | ||
| VOLTERRA LYKOVOUNI SINGLE SHAREHOLDER SA | 1 | |||
| ILIOPHANIA SA | 6 | |||
| AVAX & POWER TECHNOLOGIES CYPRUS LTD | 6 | |||
| P.S.M. SUPPLIERS LTD | 1 | 1,942 |
| AVAX INTERNATIONAL LIMITED | 47,668 | 1,225 | 18,566 | |
|---|---|---|---|---|
| GAS & POWER TECH DMCC | 103 | 842 | ||
| BONATTI J&P‐AVAX Srl | 66 | 142 | ||
| OLYMPIA ODOS OPERATION SA | 997 | |||
| OLYMPIA ODOS CONCESSION SA | 371 | 227 | 1,234 | |
| GEFYRA OPERATION SA | 37 | 23 | ||
| ATTIKI ODOS SA | 9,544 | 92 | 54 | 13,630 |
| AEGEAN MOTORWAY SA | 730 | 0 | 0 | |
| MOREAS MOTORWAY SA | 830 | |||
| POLISPARK SA | 1 | |||
| METROPOLITAN ATHENS PARK SA | 0 | |||
| BIOENERGY SA | 1 | 55 | ||
| ILIA WASTE MANAGEMENT PPP | 1 | 4,562 | 10 | |
| PYRAMIS SA | 161 | 518 | ||
| LIMASSOL MARINA LTD | 19,602 | |||
| J&P (UK) LTD LONDON | 31 | |||
| CYCLADES RES ENERGY CENTRE SA | 1 | 7 | ||
| J/V J&P‐AVAX ‐ J&PARASKEVAIDES OV.LTD (JORDAN) | 437 | |||
| Joint Ventures | 858 | 21,186 | 5,395 | |
| Management members and Board Directors | 495 | 250 | ||
| 14,007 | 49,433 | 132,075 | 54,215 |
| (amounts in € '000) | 01.01.2021‐30.06.2020 | 31.12.2020 | ||
|---|---|---|---|---|
| Group | INCOME | EXPENSES | RECEIVABLES | PAYABLES |
| AGIOS NIKOLAOS CAR PARK | 11 | |||
| OLYMPIA ODOS OPERATION SA | 1,050 | 359 | ||
| OLYMPIA ODOS CONCESSION SA | 493 | 122 | 1,201 | |
| GEFYRA OPERATION SA | 41 | 1 | 28 | |
| GEFYRA CONCESSION SA | 1 | |||
| ATTIKI ODOS SA | 188 | 86 | 929 | 8,406 |
| AEGEAN MOTORWAY SA | 1,872 | 1 | 26 | 198 |
| MOREAS MOTORWAY SA | 180 | 5 | ||
| SALONICA PARK SA | 8 | 13 | ||
| POLISPARK SA | 1 | |||
| ELIX SA | 1 | |||
| ATHENS CAR PARKS SA | 21 | |||
| BIOENERGY SA | 1 | 174 | ||
| BONATTI J&P‐AVAX SRL | 469 | 300 | ||
| ILIA WASTE MANAGEMENT PPP | 181 | 4,565 | ||
| PYRAMIS SA | 582 | |||
| LIMASSOL MARINA LTD | 21,784 | |||
| J&P (UK) LTD LONDON | 31 | |||
| JCH SERVICES LTD | 72 | |||
| JCH LTD | 673 | |||
| 5Ν SA | 159 | |||
| SC ORIOL REAL ESTATE SRL | 431 | |||
| ENERSYSTEM FZE | 4,927 | 857 | ||
| CYCLADES RES ENERGY CENTRE SA | 1 | |||
| J/V J&P‐AVAX ‐ J&PARASKEVAIDES OV.LTD (JORDAN) | 47 | 437 | ||
| Joint Ventures | 940 | 18,040 | 4,149 | |
| Management members and Board Directors | 2,587 | 120 | 610 | |
| 5,322 | 7,601 | 48,091 | 16,363 |
| Company | INCOME | EXPENSES | RECEIVABLES | PAYABLES |
|---|---|---|---|---|
| ETETH SA | 86 | 12 | 11,449 | 6,957 |
| TASK AVAX SINGLE SHAREHOLDER SA | 148 | 810 | 1,364 | 3,390 |
| AVAX ΙΚΤΕΟ SA | 1 | 6 | 420 | |
| GLAVIAM LTD | 2 | |||
| AVAX DEVELOPMENT SINGLE SHAREHOLDER SA | 21 | 7,541 | 3 | |
| ATHENA CONCESSIONS SA | 1 | 25 | 41 | |
| ERGONET SA | 6 | 43 | 1 | |
| MONDO TRAVEL SA (UNDER LIQUIDIATION) | 2 | 32 | 270 | |
| ATHENS MARINA SA | 80 | 1 | ‐ | |
| AVAX CONCESSIONS SINGLE SHAREHOLDER SA | 73,064 | 20 | ||
| VOLTERRA SA | 44 | 236 | 205 | 450 |
| VOLTERRA K‐R SINGLE SHAREHOLDER SA | 2 | 122 | ||
| VOLTERRA LYKOVOUNI SINGLE SHAREHOLDER SA | 3,677 | 407 | ||
| ILIOPHANIA SA | 3 | |||
| AVAX & POWER TECHNOLOGIES CYPRUS LTD | 5 | |||
| P.S.M. SUPPLIERS LTD | 3,598 | 2,212 | 2,090 | |
| AVAX INTERNATIONAL LIMITED | 1,162 | 63,958 | 1,200 | 16,176 |
| GAS & POWER TECH DMCC | 839 | |||
| BONATTI J&P‐AVAX Srl | 411 | 296 | ||
| OLYMPIA ODOS OPERATION SA | 1,007 | |||
| OLYMPIA ODOS CONCESSION SA | 486 | 121 | 1,201 | |
| GEFYRA OPERATION SA | 41 | 28 | ||
| ATTIKI ODOS SA | 12,737 | 75 | 8,306 | |
| AEGEAN MOTORWAY SA | 1,872 | 1 | 1 | |
| ATHENS CAR PARKS SA | 1 | |||
| MOREAS MOTORWAY SA | 1 | |||
| POLISPARK SA | 1 | |||
| ELIX SA | 1 | |||
| BIOENERGY SA | 1 | 174 | ||
| ILIA WASTE MANAGEMENT PPP | 181 | 4,565 | ||
| PYRAMIS SA | 582 | |||
| LIMASSOL MARINA LTD | 21,779 | |||
| J&P (UK) LTD LONDON | 31 | |||
| J/V J&P‐AVAX ‐ J&PARASKEVAIDES OV.LTD (JORDAN) | 47 | 437 | ||
| Joint Ventures | 940 | 17,894 | 3,466 | |
| Management members and Board Directors | 417 | 244 | ||
| 26,554 | 65,510 | 142,418 | 45,044 |
No loans have been granted to members of the Board of Directors or other senior staff of the Group, and their family members.
Marousi, 27.09.2021 On behalf of the Board of Directors of AVAX SA
Konstantinos Mitzalis
Managing Director
To the Board of Directors of the Company "AVAX S.A."
We have reviewed the accompanying interim condensed separate and consolidated statement of financial position of «AVAX S.A.» as of June 30, 2021 and the related condensed separate and consolidated statements of comprehensive income, changes in equity and cash flows for the sixmonth period then ended, as well as the selected explanatory notes that comprise the interim condensed financial information, which is an integral part of the six-month financial report as provided by Law. 3556/2007.
Management is responsible for the preparation and presentation of this interim financial information in accordance with International Financial Reporting Standards as adopted by the European Union and applied to interim Financial Reporting (International Accounting Standard "IAS" 34). Our responsibility is to express a conclusion on this interim condensed financial information, based on our review.
We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, mainly of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, as incorporated into the Greek Legislation and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Consequently, we do not express an audit opinion.
Based on the review conducted, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial information is not prepared, in all material respects, in accordance with IAS 34.
Our review has not revealed any material inconsistency or misstatement in the statements of the members of the Board of Directors and the information of the six-month Board of Directors Report, as defined in articles 5 and 5a of Law 3556/2007, in relation to the accompanying interim condensed financial information.
BDO Certified Public Accountants SA 449, Mesogion Ave. 153 43 Agia Paraskevi Athens Greece Reg. SOEL: 173
Agia Paraskevi, 28 September 2021 The Certified Public Accountant
Andreas Konstantinou Reg. SOEL: 30441
| GROUP | COMPANY | |||||
|---|---|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |||
| ASSETS | ||||||
| Non‐current Assets | ||||||
| Property, Plant and Equipment | 2 | 118,946,022 | 123,261,026 | 31,511,858 | 34,923,316 | |
| Investment Property | 3 | 12,338,237 | 12,523,237 | 3,359,336 | 3,359,336 | |
| Right of Use Assets | 2a | 61,903,913 | 63,554,335 | 28,858,255 | 30,077,058 | |
| Intangible Assets | 4 | 7,490,349 | 7,123,148 | 693,449 | 657,254 | |
| Investments in other companies | 5 | 209,821,530 | 237,286,385 | 90,625,558 | 89,356,674 | |
| Financial assets at fair value through other | ||||||
| comprehensive income | 5a | 107,138,313 | 103,992,642 | 367,528,474 | 392,324,371 | |
| Restricted Cash Deposits | 7 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | |
| Other non current assets | 6,956,357 | 6,892,876 | 14,508,413 | 13,686,925 | ||
| Other long term receivables | ‐ | ‐ | 73,162,755 | 73,057,055 | ||
| Deferred tax assets | 22,865,042 | 24,251,923 | 31,138,292 | 32,119,212 | ||
| Total Non‐current Assets | 567,459,764 | 598,885,573 | 661,386,391 | 689,561,201 | ||
| Current Assets | ||||||
| Inventories | 47,696,114 | 39,561,001 | 42,243,781 | 34,456,724 | ||
| Contractual assets | 8a | 167,023,529 | 159,161,574 | 166,571,707 | 158,655,614 | |
| Trade receivables | 6 | 163,062,234 | 161,936,919 | 139,514,601 | 135,852,818 | |
| Other receivables | 6 | 169,752,450 | 168,581,911 | 145,333,652 | 156,235,111 | |
| Restricted Cash Deposits | 7 | 36,184,259 | 32,745,107 | 30,488,051 | 28,895,771 | |
| Cash and cash equivalents | 7 | 50,191,612 | 50,517,050 | 37,980,675 | 37,331,722 | |
| Total Current Assets | 633,910,199 | 612,503,562 | 562,132,467 | 551,427,760 | ||
| Total Assets | 1,201,369,963 | 1,211,389,135 | 1,223,518,858 | 1,240,988,961 | ||
| EQUITY AND LIABILITIES | ||||||
| Share Capital | 12 | 43,296,455 | 43,296,455 | 43,296,455 | 43,296,455 | |
| Share Premium account | 12 | 146,651,671 | 146,651,671 | 146,651,671 | 146,651,671 | |
| Reserves | 13 | 22,446,831 | 22,406,306 | 20,946,137 | 21,787,091 | |
| Revaluation Reserve for financial assets at fair value | 13a | 46,063,390 | 44,349,300 | 216,465,898 | 219,187,060 | |
| Translation exchange differences | (7,407,424) | (7,829,767) | (7,837,090) | (8,973,119) | ||
| Reserves based on Law 4171/61 | 13b | 17,482,013 | ‐ | 17,482,013 | ‐ | |
| Reserves based on article 48 of Law 4172/2013 (tax‐ | ||||||
| exempt intra‐group dividends) | 13c | 235,005,368 | 193,726,214 | 235,005,368 | 193,726,214 | |
| Retained earnings | (419,318,045) | (365,898,121) | (380,099,583) | (321,861,394) | ||
| Equity attributable to equity holders of the parent (a) | 84,220,259 | 76,702,058 | 291,910,870 | 293,813,978 | ||
| Non‐controlling interest (b) | 14,397,867 | 13,824,986 | ‐ | ‐ | ||
| Total Equity (c)=(a)+(b) | 98,618,126 | 90,527,044 | 291,910,870 | 293,813,978 | ||
| Non‐Current Liabilities | ||||||
| Debentures/Long term Loans | ||||||
| 9 | 427,171,762 | 461,017,820 | 372,496,014 | 406,428,858 | ||
| Deferred tax liabilities | 21,000,439 | 23,375,865 | 18,168,403 | 20,798,460 | ||
| Provisions for retirement benefits | ||||||
| 6,549,693 | 6,250,127 | 5,553,911 | 5,289,996 | |||
| Non current leasing liabilities | 9 | 49,115,455 | 49,711,185 | 23,510,836 | 24,646,182 | |
| Other long‐term provisions | 10 | 46,472,983 | 35,886,137 | 28,032,328 | 27,231,925 | |
| Total Non‐Current Liabilities | 550,310,333 | 576,241,133 | 447,761,492 | 484,395,421 | ||
| Current Liabilities | ||||||
| Trade and other creditors | 8 | 417,355,554 | 421,289,233 | 375,815,674 | 365,375,208 | |
| Contractual liabilities | 8a | 645,055 | 724,773 | 587,146 | 666,864 | |
| Income and other tax liabilities | 19,409,720 | 18,487,254 | 10,649,464 | 9,889,802 | ||
| Current leasing liabilities | 9 | 7,346,862 | 8,027,512 | 4,562,360 | 4,545,046 | |
| Short term Loans | 9 | 107,684,313 | 96,092,185 | 92,231,852 | 82,302,640 | |
| Total Current Liabilities | 552,441,504 | 544,620,958 | 483,846,497 | 462,779,560 | ||
| Total Liabilities (d) | 1,102,751,837 | 1,120,862,091 | 931,607,988 | 947,174,981 | ||
| Total Equity and Liabilities (c)+(d) | 1,201,369,963 | 1,211,389,135 | 1,223,518,858 | 1,240,988,961 | ||
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| 1.1.2021‐30.06.2021 | 1.1.2020‐30.06.2020 | 1.1.2021‐30.06.2021 | 1.1.2020‐30.06.2020 | ||
| Turnover Cost of sales |
324,292,476 (299,512,706) |
259,961,059 (237,172,572) |
249,403,764 (229,214,162) |
203,762,987 (188,209,638) |
|
| Gross profit | 24,779,770 | 22,788,487 | 20,189,602 | 15,553,349 | |
| Other net operating income/(expenses) | 3,965,480 | 4,009,094 | 1,107,306 | 2,638,202 | |
| Write‐off of doubtful receivables & other provisions | (3,457,265) | (654,034) | (3,457,265) | (700,000) | |
| Administrative expenses | (15,988,757) | (15,271,016) | (11,685,670) | (11,117,115) | |
| Selling & Marketing expenses | (5,409,378) | (5,691,969) | (3,650,975) | (3,888,671) | |
| Income from sub‐debts | 3,096,768 | 2,731,572 | 1,061,658 | 739,946 | |
| Income/(Losses) from Investments in Associates | 13,406,607 | 10,865,733 | 10,463,832 | 16,508,421 | |
| Profit/ (Loss) before tax, financial and investment results |
20,393,224 | 18,777,867 | 14,028,488 | 19,734,132 | |
| Net financial income / (loss) | (12,737,835) | (12,569,714) | (10,654,910) | (11,656,360) | |
| Profit/ (Loss) before tax | 7,655,389 | 6,208,153 | 3,373,579 | 8,077,772 | |
| Tax for the period 11 |
(1,727,636) | 4,330,258 | (2,850,600) | 3,447,601 | |
| Profit/ (Loss) after tax | 5,927,753 | 10,538,411 | 522,978 | 11,525,373 | |
| Attributable to: | |||||
| Equity shareholders Non‐controlling interests |
5,354,190 573,563 |
10,331,299 207,112 |
522,978 ‐ |
11,525,373 ‐ |
|
| 5,927,753 | 10,538,411 | 522,978 | 11,525,373 | ||
| Profit /(loss) per share after tax for the period attributable to shareholders | |||||
| ‐ Basic (in Euro) | 0.0371 | 0.0716 | 0.0036 | 0.0799 | |
| ‐Adjusted (in Euro) | 0.0371 | 0.0822 | 0.0036 | 0.0917 | |
| Weighted average # of shares | 144,321,516 | 125,640,198 | 144,321,516 | 125,640,198 | |
| Profit before tax, financial and investment results, depreciations and provisions |
32,096,528 | 26,710,279 | 21,792,849 | 24,824,717 | |
The following notes are integral part of the Financial Statements
| 1.1.2021‐ 1.1.2020‐ 1.1.2021‐ 30.06.2021 30.06.2020 30.06.2021 1.1.2020‐30.06.2020 Profit/ (Loss) for the Period after tax 5,927,753 10,538,411 522,978 11,525,373 Other Comprehensive Income Net other comprehensive income /(loss) to be reclassified to profit or loss in subsequent periods Exchange Differences on translating foreign operations 422,336 535,909 1,136,029 506,783 Cash flow hedges 790,409 (131,782) ‐ ‐ Revaluation reserves for other assets ‐ 1,062,275 ‐ ‐ Revaluation Reserve for financial assets at fair value 2,249,113 (1,666,524) (3,852,219) Reserves (847,511) (6,887) (884,548) ‐ Tax for other comprehensive income (405,452) 178,300 1,174,652 77,539 Net other comprehensive income /(loss) not to be reclassified to profit or loss in subsequent periods Actuarial revaluation of liabilities for personnel retirement ‐ ‐ ‐ ‐ Tax for other comprehensive income ‐ ‐ ‐ ‐ Total other comprehensive income after tax 2,208,895 (28,709) (2,426,086) Total comprehensive Income 8,136,648 10,509,702 (1,903,108) Total comprehensive Income attributable to: Equity shareholders 7,563,085 10,302,590 (1,903,108) (16,438,362) Non‐controlling interests 573,563 207,112 ‐ ‐ 8,136,648 10,509,702 (1,903,108) |
GROUP | COMPANY | |||
|---|---|---|---|---|---|
| (28,548,057) | |||||
| (27,963,735) | |||||
| (16,438,362) | |||||
| (16,438,362) |
The following notes are integral part of the Financial Statements
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 1.1.2021‐ | 1.1.2020‐ | 1.1.2021‐ | 1.1.2020‐ | |
| 30.06.2021 | 30.06.2020 | 30.06.2021 | 30.06.2020 | |
| Operating Activities | ||||
| Profit/ (Loss) before tax | 7,655,389 | 6,208,153 | 3,373,579 | 8,077,772 |
| Adjustments for: | ||||
| Depreciation | 8,246,039 | 7,278,377 | 4,307,095 | 4,390,585 |
| Provisions | 3,593,405 | 931,689 | 3,457,265 | 535,950 |
| Income from sub‐debts | (3,096,768) | (2,731,572) | (1,061,658) | (739,946) |
| Interest income | (164,205) | (1,656,954) | (2,091) | (21,709) |
| Interest expense | 12,902,040 | 14,226,667 | 10,657,001 | 11,678,069 |
| Investment (income) / loss | (13,406,607) | (9,920,809) | (10,459,677) | (16,508,421) |
| Εxchange rate differences | 93,769 | (1,144,796) | 94,543 | (1,067,854) |
| Profits from leasing concessions | 1,003,905 | (31,755) | ‐ | (11,074) |
| Change in working capital | ||||
| (Increase)/decrease in inventories | (8,135,114) | (1,081,880) | (7,787,056) | (2,500,840) |
| (Increase)/decrease in trade and other receivables | (13,148,325) | (51,652,175) | (7,780,202) | (17,341,469) |
| Increase/(decrease) in payables | 6,516,185 | 17,118,432 | 12,805,331 | (22,858,076) |
| Εxchange rate differences | (93,769) | 1,144,796 | (94,543) | 1,067,854 |
| Income taxes paid | (1,599,693) | ‐ | (1,567,670) | ‐ |
| Cash Flow from operating Activities (a) | 366,252 | (21,311,828) | 5,941,917 | (35,299,159) |
| Investing Activities | ||||
| Purchase of tangible and intangible assets | (4,229,430) | (30,909,548) | (860,738) | (3,955,740) |
| Proceeds from disposal of tangible and intangible assets Proceeds from disposal of tangible and intangible (Acquisition)/ disposal of, associates, JVs and other |
2,936,606 2 936 606 |
36,615,763 36 615 763 |
1,957,099 1 957 099 |
33,764,562 33 764 562 |
| investments | 26,033,274 | (8,299,124) | 20,189,541 | (10,442,764) |
| Interest received | 164,205 | 1,656,954 | 2,091 | 21,709 |
| Income from sub‐debts | 3,096,768 | 2,731,572 | 1,646,610 | 739,946 |
| Dividends received | 13,406,607 | 18,014,895 | 10,459,677 | 16,483,158 |
| Cash Flow from Investing Activities (b) | 41,408,029 | 19,810,512 | 33,394,279 | 36,610,871 |
| Cash Flow from Financing Activities | ||||
| Proceeds/(payments) from loans | (24,701,257) | 5,159,460 | (25,931,053) | (8,346,527) |
| Payment for leasing liabilities | (1,057,270) | (2,129,616) | (506,909) | (433,462) |
| Interest payments for operational leases | (1,214,800) | (935,337) | (496,571) | (92,916) |
| Receipt of advance payment | ‐ | 555,900 | ‐ | ‐ |
| Interest paid | (11,687,240) | (13,887,041) | (10,160,430) | (12,180,864) |
| (Increase)/ Decrease of restricted cash deposits Share capital increase |
(3,439,152) ‐ |
(9,544,250) 20,000,000 |
(1,592,281) ‐ |
(1,022,688) 20,000,000 |
| Cash Flow from Financing Activities (c) | (42,099,719) | (780,884) | (38,687,243) | (2,076,458) |
| Net increase / (decrease) in cash and cash equivalents (a)+(b)+(c) |
(325,438) | (2,282,200) | 648,953 | (764,746) |
| Cash and cash equivalents at the beginning of the year | 50,517,050 | 71,052,312 | 37,331,722 | 61,084,456 |
| Cash and cash equivalents at the end of the year | 50,191,612 | 68,770,112 | 37,980,675 | 60,319,710 |
In the comparative financial statement, interest payments have been moved from the section "changes in working capital" to the section "financing activities". This rearrangement was deemed most appropriate to provide more relevant and reliable information.
The following notes are integral part of the Financial Statements.
GROUP
| Cha s in sha reho lder 's eq uity for the iod ent nge curr per |
Sha re C apit al |
Sha re P ium rem |
Oth er R ese rves |
1/6 Res s L. 417 1 erve |
nsla tion cha Tra ex nge diff ere nce s |
ticle Res Ar 48 erve s 72/ L. 41 201 3 |
Ret aine d ea rnin gs |
Sha pita l & Ca re Res erve s |
lling Non ‐Co ntro Inte rest s |
Tot al Eq uity |
|---|---|---|---|---|---|---|---|---|---|---|
| Bala ubli she d 01 .01. 202 0‐P D ata nce |
23,2 96,4 55 |
146 ,651 ,671 |
85,2 64,2 78 |
‐ | (4,9 63) 08,7 |
168 ,082 ,363 |
(354 ) ,191 ,521 |
64,1 94,4 83 |
14,0 64,5 70 |
78,2 59,0 53 |
| Net ofit for the peri od pr |
‐ | ‐ | ‐ | ‐ | ‐ | ‐ | 10,3 31,2 99 |
10,3 31,2 99 |
207 ,112 |
10,5 38,4 11 |
| Oth in fo r th riod er com e e pe |
‐ | ‐ | ) (564 ,618 |
‐ | 535 ,916 |
‐ | ‐ | (28, 702 ) |
(7) | (28, 709 ) |
| al ehe e fo r th riod Tot nsiv e in co mpr com e pe |
‐ | ‐ | (564 ,618 ) |
‐ | 535 ,916 |
‐ | 10,3 31,2 99 |
10,3 02,5 97 |
207 ,105 |
10,5 09,7 02 |
| /de f sh Incr ital ease crea se o are cap |
20,0 00,0 00 |
‐ | ‐ | ‐ | ‐ | ‐ | ‐ | 20,0 00,0 00 |
‐ | 20,0 00,0 00 |
| /(Di ) of Acq uisit ions sals toll ing inte rest spo non con s |
‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | (19, ) 171 |
(19, ) 171 |
| 72/ Divi den cord ing rticl e 48 L.41 201 3 Re t to A serv es ac |
‐ | 25,6 43,8 50 |
(25, ) 643 ,850 |
|||||||
| Oth ts er m ove men |
‐ | ‐ ‐ |
‐ (7,8 30) 26,3 |
‐ ‐ |
‐ ‐ |
‐ | 7,82 6,22 0 |
‐ (110 ) |
‐ 57,6 64 |
‐ 57,5 54 |
| Bala 30 .06. 202 0 nce |
43,2 96,4 55 |
146 ,651 ,671 |
76,8 73,3 30 |
‐ | (4,3 72,8 47) |
193 ,726 ,213 |
(361 ,677 ,852 ) |
94,4 96,9 70 |
14,3 10,1 68 |
108 ,807 ,138 |
| Bala 31 .12. 202 0 nce |
43,2 96,4 55 |
146 ,651 ,671 |
66,7 55,6 06 |
‐ | (7,8 67) 29,7 |
193 ,726 ,214 |
(365 ) ,898 ,121 |
76,7 02,0 58 |
13,8 24,9 86 |
90,5 27,0 44 |
| Net ofit for the peri od pr |
‐ | ‐ | ‐ | ‐ | ‐ | ‐ | 5,35 4,19 0 |
5,35 4,19 0 |
573 ,563 |
5,92 7,75 3 |
| Oth fo r th riod in er com e e pe |
‐ | ‐ | 9 1,78 6,55 |
‐ | 422 ,343 |
‐ | ‐ | 2,20 8,90 2 |
(7) | 2,20 8,89 5 |
| e fo Tot al ehe nsiv e in r th riod co mpr com e pe |
‐ | ‐ | 1,78 6,55 9 |
‐ | 422 ,343 |
‐ | 5,35 4,19 0 |
7,56 3,09 2 |
573 ,556 |
8,13 6,64 8 |
| /(De se) of S hare Cap ital Incr ease crea |
‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ |
| /(Di Acq uisit ions sals ) of toll ing inte rest spo non con s |
‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ |
| cord 1/6 Res ing to L .417 1 erve ac s |
‐ | ‐ | ‐ | 17,4 82,0 13 |
‐ | ‐ | (17, 482 ,013 ) |
‐ | ‐ | ‐ |
| 72/ Divi den Re cord ing to A rticl e 48 L.41 201 3 t serv es ac |
‐ | ‐ | ‐ | ‐ | ‐ | 41,2 79,1 54 |
(41, 279 ) ,154 |
‐ | ‐ | ‐ |
| Oth ts er m ove men |
‐ | (31, ) 944 |
(12, ) 947 |
(44, ) 891 |
(675 ) |
(45, ) 566 |
||||
| Bala 30 .06. 202 1 nce |
43,2 96,4 55 |
‐ 146 ,651 ,671 |
68,5 10,2 21 |
‐ 17,4 82,0 13 |
‐ (7,4 24) 07,4 |
‐ 235 ,005 ,368 |
(419 ) ,318 ,045 |
84,2 20,2 59 |
14,3 97,8 67 |
98,6 18,1 26 |
| Cha s in sha reho lder 's eq uity for the iod ent nge curr per |
Sha re C apit al |
Sha re P ium rem |
Oth er R ese rves |
1/6 Res s L. 417 1 erve |
nsla cha Tra tion ex nge diff ere nce s |
ticle Res Ar 48 erve s 72/ L. 41 201 3 |
Ret aine d ea rnin gs |
Tot al E quit y |
|---|---|---|---|---|---|---|---|---|
| Bala 01 .01. 202 0‐P ubli she D d ata nce |
23,2 96,4 55 |
146 ,651 ,671 |
306 ,166 ,442 |
‐ | (4,8 75) 87,6 |
168 ,082 ,364 |
(319 ) ,042 ,181 |
320 ,267 ,074 |
| Net ofit for the peri od pr |
‐ | ‐ | ‐ | ‐ | ‐ | ‐ | 11,5 25,3 73 |
11,5 25,3 73 |
| Oth fo r th riod in er com e e pe |
‐ | ‐ | (28, 470 ,518 ) |
‐ | 506 ,783 |
‐ | ‐ | (27, 963 ,735 ) |
| al ehe e fo r th Tot nsiv e in riod co mpr com e pe |
‐ | ‐ | (28, ) 470 ,518 |
‐ | 506 ,783 |
‐ | 11,5 25,3 73 |
(16, ) 438 ,362 |
| /(De Incr se) of S hare Cap ital ease crea |
20,0 00,0 00 |
‐ | ‐ | ‐ | ‐ | ‐ | ‐ | 20,0 00,0 00 |
| 72/ Divi den cord ing to A rticl e 48 L.41 201 3 Re t serv es ac |
‐ | ‐ | ‐ | ‐ | ‐ | 25,6 43,8 50 |
(25, ) 643 ,850 |
‐ |
| Oth ts er m ove men |
‐ | ‐ | (7,8 30) 26,3 |
‐ | ‐ | ‐ | 7,82 6,33 0 |
‐ |
| Bala 30 .06. 202 0 nce |
43,2 96,4 55 |
146 ,651 ,671 |
269 ,869 ,595 |
‐ | (4,3 80,8 92) |
193 ,726 ,214 |
(325 ,334 ,327 ) |
323 ,828 ,712 |
| Bala 31 .12. 202 0 nce |
43,2 96,4 55 |
146 ,651 ,671 |
240 ,974 ,152 |
‐ | (8,9 19) 73,1 |
193 ,726 ,214 |
(321 ) ,861 ,394 |
293 ,813 ,978 |
| ofit for the peri od Net pr |
‐ | ‐ | ‐ | ‐ | ‐ | ‐ | 522 ,978 |
522 ,978 |
| Oth in fo r th riod er com e e pe |
‐ | ‐ | (3,5 15) 62,1 |
‐ | 1,13 6,02 9 |
‐ | ‐ | (2,4 86) 26,0 |
| Tot al ehe nsiv e in e fo r th riod co mpr com e pe |
‐ | ‐ | (3,5 15) 62,1 |
‐ | 1,13 6,02 9 |
‐ | 522 ,978 |
(1,9 08) 03,1 |
| /(De se) Incr of S hare Cap ital ease crea |
‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ |
| cord ing 1/6 Res to L .417 1 erve ac s |
‐ | ‐ | ‐ | 17,4 82,0 13 |
‐ | ‐ | (17, ) 482 ,013 |
‐ |
| 72/ Divi den Re cord ing to A rticl e 48 L.41 201 3 t serv es ac |
‐ | ‐ | ‐ | ‐ | ‐ | 41,2 79,1 54 |
(41, ) 279 ,154 |
‐ |
| Oth ts er m ove men |
‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ |
| Bala 30 .06. 202 1 nce |
43,2 96,4 55 |
146 ,651 ,671 |
237 ,412 ,037 |
17,4 82,0 13 |
(7,8 37,0 90) |
235 ,005 ,368 |
(380 ,099 ,583 ) |
291 ,910 ,870 |
It is noted that for the period ending 30.06.2021 for the purpose of more detailed information, the dividend reserves according to article 48 of Law 4172/2013 which concern intragroup dividends exempt from tax, appear separately from Other Reserves. Furthermore the Company has created a reserve from profits realised abroad according to Law 4171/61 amounting to € 17,482,013, which is reflected separately from Other Reserves for the same purpose. The financial assets reserves at fair value are included in theOther Reserves column.
Thefollowing notes are integral part of the Financial Statements
AVAX S.A. was listed on the Athens Stock Exchange's Main Market in 1994 and is based in Marousi, in the Attica prefecture. It boasts substantial expertise spanning the entire spectrum of construction activities (infrastructure projects, civil engineering, BOTs, precast works, real estate etc) both in Greece and abroad.
In 2002, AVAX S.A. merged with its subsidiaries J&P (Hellas) S.A. and ETEK S.A. and was renamed into J&P‐AVAX S.A, whereas another 100% subsidiary unit, namely ETETH S.A., merged with its own subsidiary AIXMI S.A. The new business entities which evolved out of these mergers made use of Law 2940/2001 on contractors' certification for public works. The Group's leading company AVAX S.A. was awarded a 7th‐class public works certificate, which is the highest class available, whereas ETETH S.A. acquired a 6th‐class certificate. In the year 2007 Avax SA acquired the subsidiary Athena SA. which during 2018 was merged by absorption by the Company following the submission of an optional public offer and the exercise of the squeeze‐out right of the minority shareholders of ATHENA SA.
At the beginning of 2019, the Company was renamed to AVAX SA again in accordance with the General Meeting of Shareholders of the Company on 27/03/2019 and the Approval Decision No. 40094/09‐04‐ 2019 by the Ministry of Economy and Development.
Group strategy is structured around three main pillars:
AVAX S.A.'s consolidated accounts for the period running from January 1st , 2021 to June 30th, 2021 conform to the International Financial Reporting Standards (I.F.R.S.) issued by the International Accounting Standards Board (I.A.S.B.) and the interpretations issued by IASB's International Financial Reporting Interpretation Committee (I.F.R.I.C.) which have been adopted by the European Union.
Consolidated and Company Financial Statements of AVAX S.A. have been prepared on a going concern basis and the historical cost principle as amended by adjusting specific assets and liabilities to current values except for certain financial assets and liabilities (including derivatives), valued at fair value.
The policies listed below have been consistently applied throughout the periods presented.
The preparation of financial statements in accordance with I.F.R.S. requires the use of estimates and judgments when applying the Company's accounting policies. Significant assumptions (C.22) by management for the application of the company's accounting policies have been identified where appropriate.
The Group consistently applies the following accounting principles in preparing the attached Financial Statements:
All companies managed and controlled, either directly or indirectly, by another company (parent) through ownership of a majority share in the voting rights of the company in which the investment has been made. Subsidiaries are fully consolidated (full consolidation) with the purchase method starting on the date on which their control is assumed, and are excluded from consolidation as soon as their control is relinquished.
Acquisitions of subsidiaries by the Group are entered according to the purchase method. Subsidiary acquisition cost is the fair value of all assets transferred, of all shares issued and all liabilities at the acquisition date, plus any costs directly related to the transaction. The specific assets, liabilities and contingent liabilities acquired through a business combination are accounted for at their fair values irrespective of the percentage of participation. The acquisition cost in excess of the fair value of the acquired net assets is entered as goodwill. Should the total acquisition cost fall short of the fair value of the acquired net assets, the difference is directly entered in the Income Statement.
Intragroup sales, balances and un‐realised profits from transactions among Group companies are omitted. Losses among Group companies (un‐realised on a Group level) are also eliminated, except when
the transaction provides evidence of impairment of the transferred asset. The accounting principles of subsidiaries have been amended for uniformity purposes relative to those adopted by the Group.
At the Company's balance sheet, investment in subsidiaries is stated at cost less loss from impairment, if any. IAS 36 "Impairment of Assets" requires an impairment test if there is any indication that an asset is impaired.
All companies which the Group may influence significantly but do not qualify for subsidiary or Joint Venture status. The Group's assumptions call for ownership between 20% and 50% of a company's voting rights to have significant influence on it. Investments in associates are initially entered in the Company's books at cost and subsequently consolidated using the equity method.
The Group's share into the profit or loss of associates following the acquisition is recognised into the Income Statement, whereas the share into changes in capital reserves following the acquisition is recognised into the reserves. Accumulated changes affect the book value of investments in associates. When the Group's participation into the financial loss of an associate is equal to or exceeds its participation in the associate, inclusive of provisions for bad debts, the Group does not recognise any further losses, except when covering liabilities or making payments on behalf of the associate, or taking other actions as part of its shareholder relationship.
Unrealised profits from transactions between the Group and its associates are omitted according to the participation of the group into those associates. Unrealised gains are omitted, unless the transactions suggest impairment of the transferred assets. Accounting principles of associates have been amended for uniformity purposes relative to those adopted by the Group.
I.F.R.S. 11 focuses on the rights and obligations arising from the joint arrangements, rather than in their legal form.
A common agreement has the following basic features:
• The parties are bound by a contractual agreement
• The contractual agreement confers on two or more of the parties joint control
The IFRS classifies joint arrangements into two types—joint operations and joint ventures.
• A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. joint operators) have rights to the assets, and obligations for the liabilities, relating to the arrangement.
• A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement (i.e. joint venturers) have rights to the net assets of the arrangement.
An entity determines the type of joint arrangement in which it is involved by considering its rights and obligations.
An entity assesses its rights and obligations by considering the structure and legal form of the arrangement, the contractual terms agreed to by the parties to the arrangement and, when relevant, other facts and circumstances. Τhe factors that the Group tests to determine that joint arrangements are under common control include the structure, legal form, contractual arrangement and other facts and circumstances.
The IFRS requires to recognize and to account for a joint arrangement proportionate consolidation – the party's share of assets, liabilities, income and expenses of a jointly controlled entity was combined line‐ by‐line with similar items in the companies' financial statements.
Also, the party to a joint venture shall account for the above data relating to its participation in the joint venture under the relevant IFRS.
Group Structure: AVAX Group consists of the following subsidiaries, which are consolidated with the full consolidation method:
| Company | % of AVAX's SA | Fiscal Years not tax | |
|---|---|---|---|
| participation | audited | ||
| AVAX S.A., Athens | Parent | 2015‐2020 | |
| ΕΤΕTH S.A., Salonica | 100% | 2015‐2020 | |
| ELVIEX Ltd, Ioannina | 60% | 2015‐2020 | |
| AVAX DEVELOPMENT S.A., Athens | 100% | 2015‐2020 | |
| TASK AVAX SINGLE MEMBER S.A., Athens | 100% | 2017‐2020 | |
| CONCURRENT REAL INVESTMENΤS SRL, Romania | 95,24% | 2005‐2020 | |
| SC BUPRA DEVELOPMENT SRL, Romania | 99,93% | 2005‐2020 | |
| AVAX IKTEO S.A., Athens | 94% | 2015‐2020 | |
| SC FAETHON DEVELOPMENTS SRL, Romania | 100% | 2006‐2020 | |
| MONDO TRAVEL (under liquidation), Athens | 99,999% | 2015‐2020 | |
| AVAX CONCESSIONS SINGLE MEMBER S.A, Athens | 99,967% | 2015‐2020 | |
| ATHENS MARINA S.A., Athens | 99,84% | 2015‐2020 | |
| AVAX INTERNATIONAL LTD, Cyprus | 100% | 2016‐2020 | |
| AVAX MIDDLE EAST LTD, Cyprus | 100% | 2019‐2020 | |
| GAS AND POWER TECH DMCC, United Arab | 100% | 2019‐2020 | |
| Emirates | |||
| CONSPEL EMIRATES LLC, United Arab Emirates | 49% | 2019‐2020 | |
| ABU DHABI J&PP LLC, Abu Dhabi | 49% | 2019‐2020 | |
| AVAX (CYPRUS) LTD, Cyprus | 100% | 2020 | |
| GLAVIAM HELLAS SINGLE MEMBERED COMPANY | |||
| LTD | 100% | 2016‐2020 | |
| VOLTERRA S.A., Athens | 100% | 2017‐2020 | |
| VOLTERRA K‐R S.A., Athens | 55% | 2015‐2020 | |
| ILIOPHANIA S.A., Athens | 100% | 2015‐2020 | |
| VOLTERRA LYKOVOUNI SINLGE MEMBER S.A., | |||
| Athens | 55% | 2017‐2020 | |
| VOLTERRA L‐S SINGLE MEMBER S.A., Athens | 100% | 2018‐2020 | |
| VOLTERRA KOUKOULI SINGLE MEMBER COMPANY, | |||
| Athens | 100% | 2020 | |
| VOLTERRA DOUKAS SINGLE MEMBER COMPANY, Athens |
100% | 2020 | |
| ATHENA LIBYA COMPANY, Libya | 65% | ‐ | |
| ATHENA CONCESSIONS S.A., Athens | 99% | 2015‐2020 | |
| ERGONET S.A., Athens | |||
| P.S.M. SUPPLIERS LTD, Libya | 51,52% | 2016‐2020 | |
| AVAX & POWER TECHNOLOGIES CYPRUS LTD, | 100% | 2019‐2020 | |
| Cyprus | 90% | 2020 | |
For the fiscal years 2015, 2016, 2017, 2018 & 2019 the parent Company and its subsidiaries that are tax audited in Greece have been subjected to tax auditing from an auditor in accordance with article 65A para 1 of Law 4174/2013 and have received a "Tax Compliance Certification" with an unqualified opinion. It should also be noted that for fiscal years 2016 onwards, tax audit and issuance of a Certificate of Tax Compliance by the statutory auditors are optional. The Group and the Company have opted for continued audit by the statutory auditors.
For the fiscal year 2020, the parent Company and its subsidiaries that are tax audited in Greece have been subjected to tax auditing from an auditor in accordance with article 65A para 1 of Law 4174/2013 as it is amended and still in force . This control is in progress and the related tax certificate is projected to be provided after the publication of the interim condensed financial statements of 1st semester of 2021. The Group's management believes that upon completion of the tax audit no additional tax liabilities will be occur that will have substantial impact beyond those recognized and reported in the financial statements.
It is noted that in the fiscal year 2020 the company was audited by the Large Corporation Tax Bureau for the fiscal year 2014 and the resulting tax differences burdened the results of the current fiscal year of the company and the Group. A Subsidiary of the Group for the fiscal years 2014, 2015 and 2016 was also audited by the Large Corporation Tax Bureau and the resulting differences burdened the results of the current year of the Group. In addition, it is noted that the tax audit for the year 2015 is in progress, based on an order received by the company during the year 2020.
The Group consolidates the following associates using the equity method:
| 5Ν S.A., Athens | 45,00% |
|---|---|
| ATHENS CAR PARKS S.A., Athens | 24,69% |
| ATTICA DIODIA S.A., Athens | 34,22% |
| ATTIKI ODOS S.A., Athens | 34,21% |
| POLISPARK S.A., Athens | 28,76% |
| 3G S.A., Athens | 50,00% |
| CYCLADES ENERGY CENTER S.A., Athens | 45,00% |
| SC ORIOL REAL ESTATE SRL, Romania | 50,00% |
| SALONICA PARK S.A., Athens | 24,70% |
| AEGEAN MOTORWAY S.A., Larissa | 23,61% |
| GEFYRA OPERATION S.A., Athens | 21,55% |
| GEFYRA S.A., Athens | 20,53% |
| PIRAEUS ST. NICOLAS CAR PARK S.A., Athens | 54,26% |
| MARINA LIMASSOL S.A., Limassol | 33,50% |
| METROPOLITAN ATHENS PARK S.A., Athens | 22,91% |
| STARWARE ENTERPRISES LTD, Cyprus | 50,00% |
| VIOENERGEIA S.A., Greece | 45,00% |
| ILIA WASTE MANAGEMENT PPP, Greece | 50,00% |
| ILIA WASTE MANAGEMENT OPERATION, Greece | 50,00% |
Joint arrangements (construction consortia or companies) which the parent Company or its subsidiaries participate in, are consolidated with the method of proportional consolidations in the financial statements of the parent Company, or its subsidiaries respectively. The total participations in joint arrangements (construction consortia) are as follows:
Proportionate consolidation
| 1. | J/V APION KLEOS (ELEFSINA‐PATRA), Elefsina | 21,00% |
|---|---|---|
| 2. | J/V CONSTRUCTION MALIAKOS – KLEIDI, Larissa | 20,70% |
| 3. | J/V AKTOR – J&P‐AVAX OTE NETWORKS, Athens | 50,00% |
| 4. | J/V AKTOR – J&P‐AVAX, Athens (Maintenance of National Natural Gas Network), | |
| Athens | 50,00% | |
| 5. | J/V J&P‐AVAX – GHELLA SpA, Piraeus | 60,00% |
| 6. | J/V AKTOR SA – J&P‐AVAX SA., Athens (New Maintenance of Attiki Odos) | 34,22% |
| 7. | J/V AKTOR SA – J&P‐AVAX SA., Achaia (Panagopoula) | 33,91% |
| 8. | J/V AKTOR SA – J&P‐AVAX SA – TERNA SA, Athens (Tithorea‐Domokos) | 33,33% |
| 9. | J/V AKTOR SA – J&P‐AVAX SA – TERNA SA, Athens (Tithorea‐Domokos‐Sub | |
| Project D, Bridge) | 31,00% | |
| 10. | J/V AKTOR SA – J&P‐AVAX SA (Construction of Gas Networks), Athens | 50,00% |
| 11. | J/V AKTOR SA – J&P‐AVAX SA (Attica Gas Networks & Pipelines), Attica | 60,00% |
| 12. | J/V AKTOR SA – AVAX SA (D‐1618), Psitallia | 30,00% |
| 13. | J/V AVAX SA – AKTOR SA (Gas Projects, PUBLIC GAS NETWORK OPERATION) | 50,00% |
| 14. | J/V AVAX SA – MESOGEIOS SA (ILIA WASTE TREATMENT) | 50,00% |
| 15. | BONATTI J&P‐AVAX Srl, Italy | 45,00% |
| 16. | J/V J&P AVAX S.A – J&P Ltd (Vassilikos III), Cyprus | 75,00% |
| 17. | J&P AND J&P AVAX J/V – QATAR BUILDING, Cyprus | 45,00% |
| 18. | AVAX‐J&P LTD‐CYBARCO MARINA LIMASSOL J/V, Cyprus | 55,00% |
| 19. | J/V QUEEN ALIA AIRPORT, Jordan | 50,00% |
| 20. | AVAX SA – TERNA J/V MEDITERRANEAN CITY OF DREAMS | 60,00% |
| 21. | J/V AVAX SA – AKTOR ("MACEDONIA" AIRPORT), Thessaloniki | 70,00% |
| 22. | J/V AVAX SA – INTRAKAT SA – MYTILINEOS SA – TERNA SA (Construction of an artificial barrier of the border line of Evros), |
25,00% |
| 23. | Evros J/V ARCHIRODON – ERGONET (indirect participation), Alexandroupoli |
25,50% |
| 24. | J/V TSO‐ARCHIRODON ‐ ERGONET (indirect participation), Alexandroupoli |
22,95% |
| 25. | J/V D.SIRDARIS & CO – ERGONET (indirect participation), Athens | 15,30% |
| 26. | J/V PROET SA – ERGONET SA (indirect participation), Chania | 25,50% |
| 27. | J/V ERGONET SA – PROET SA (KOS) (indirect participation), Athens | 25,50% |
| 28. | J/V EURARCO SA – ERGONET SA (SPERCHEIOS) (indirect participation), Larisa |
7,65% |
The following Joint Arrangements are not included in current period's financial statements in comparison with those of previous one because the projects are now completed:
| 1. | J/V AVAX S.A. – ETETH S.A., Athens (SMAEK) | 100,00% |
|---|---|---|
| 2. | J/V AVAX S.A. – ETETH S.A., Athens (Suburban Railway) | 100,00% |
| 3. | J/V AVAX S.A. – "J/V IMPREGILO SpA – AVAX S.A.‐ EMPEDOS S.A.", Athens | 66,50% |
|---|---|---|
| 4. | J/V AKTOR S.A. – AVAX S.A. – ALTE S.A. – ΑΤΤΙΚΑΤ S.A. ‐ ETETH S.A. – PANTECHNIKI S.A. – EMPEDOS S.A., Athens |
30,84% |
| 5. | J/V AVAX S.A. – EKTER S.A. – KORONIS S.A., Crete | 36,00% |
| 6. | J/V AVAX S.A.‐ VIOTER S.A., Athens | 50,00% |
| 7. | J/V AVAX S.A. – INTERNATIONAL TAPESTRY CENTRE, Athens | 99,90% |
| 8. | J/V ETETH S.A. – AVAX S.A. – TERNA S.A. – PANTECHNIKI S.A., Athens | 47,00% |
| 9. | J/V TOMES S.A. – ETETH S.A., Chania | 50,00% |
| 10. | J/V AKTOR Α.Τ.Ε – AEGEK S.A. – AVAX S.A. – SELI S.p.A, Athens | 20,00% |
| 11. | J/V "J/V AKTOR SA – DOMOTEXNIKH S.A. THEMELIODOMI S.A." – TERNA S.A – ETETH S.A., Salonica |
25,00% |
| 12. | J/V AVAX S.A. – FCC CONSTRUCCION S.A, Athens | 49,99% |
| 13. | J/V ETETH SA – TRIKAT SA – VIOTER SA, Chalkida | 40,00% |
| 14. | J/V MAINTENANCE ATT.ODOS, Athens | 30,84% |
| 15. | J/V SUBURBAN RAILWAY, SKA PIRAEUS, PHASE B', Athens | 33,33% |
| 16. | J/V ERGOTEM ATEVE – AKTOR S.A. – ETETH S.A., Athens | 15,00% |
| 17. | J/V AKTOR S.A. – AVAX S.A. – INTRAKAT (Road Line Tripoli‐Kalamata‐Moreas), Athens |
15,00% |
| 18. | J/V AKTOR SA – AVAX SA (Technical Support DEPA – 2) , Athens | 50,00% |
| 19. | J/V AKTOR SA – AVAX SA (White Regions), Athens | 50,00% |
| 20. | J/V AVAX SA – TERNA SA – AKTOR ATE – INTRAKAT SA (Mosque), Athens | 25,00% |
| 21. | J/V AVAX SA – TASK J&P‐AVAX SA (ISP), Athens | 100,00% |
| 22. | J/V ATHENA SA – F.C.C. SA , Igoumenitsa | 50,00% |
| 23. | J/V ATHENA SA – THEMELIODOMI SA ‐ ATTIKAT SA (HERMES), Athens | 33,33% |
| 24. | J/V MICHANIKI SA – ATHENA SA (MPC), Athens | 50,00% |
| 25. | J/V AKTOR SA – AVAX SA – GOLIOPOULOS (A‐440), Psytallia | 48,00% |
| 26. | J/V J&P – AND J&P – AVAX GERMASOGEIA, Cyprus | 75,00% |
Group Management has utilised the basic valuation method (at acquisition cost, less accumulated amortisation and impairments), as per IAS 16, for classifying operating fixed assets (Technical Equipment, Vehicles, Furniture and other Equipment).
The revaluation method was chosen by management for classifying land and fixtures.
Upon recognition as an asset, a fixed asset whose fair value may be estimated reliably may be revalued, to reflect the fair value at recognition date less any subsequent accumulated impairment of value. The fair value of land and buildings is usually appraised by auditor‐valuators. The fair value of equipment and fixtures is usually their acquisition price.
When tangible fixed assets are revalued, the entire class of similar assets should be revalued. When the book value of a fixed asset increases as a result of revaluation, the increase is credited directly into the Equity as a Revaluation Surplus. Increases in value due to revaluation will be recognised through the
Income Statement to the extend it reverses an earlier impairment of the same asset, charged in the Income Statement.
Should the book value of an asset be reduced as a result of a revaluation, the decrease in value should be charged in the Income Statement. If a revaluation surplus for that asset exists in Equity, the decrease will be charged directly into Equity up to the value of that surplus. Revaluation surpluses in Equity are transferred to Retained Earnings as soon as the fixed assets are sold or derecognized. Tax effects on the revaluation of tangible fixed assets are recognised and disclosed according to IAS 12 Income Tax. The initial implementation of a tangible fixed asset revaluation policy is treated as a revaluation according to IAS 16, not IAS 8.
While applying I.A.S. 36 (on Impairment of Assets), on each reference date, Group management effectively estimates whether its asset base shows signs of impairment, comparing the residual value for each asset against its book value.
Subsequent expenditure on fixed assets already appearing on the Company's books are added to that asset's book value only if they increase its future economic benefits. All expenditure (maintenance, survey etc.) for assets not increasing their future economic benefits are realised as expenses in the financial period incurred.
Expenditures incurred for a major repair or survey of a fixed asset are realised as expenses in the financial period in which they are incurred, except when increasing the future economic benefits of the fixed asset, in which case they are added to the book value of the asset.
Depreciation of tangible fixed assets (excluding land which is not depreciated) is calculated on a straight‐ line basis according to their useful lives. The main depreciation rates are as follows:
| Operating Property | |
|---|---|
| (buildings) | 3% |
| Machinery | 5.3% ‐ 20% |
| Vehicles | 7.5% ‐ 20% |
| Other equipment | 15% ‐ 20% |
Residual values and useful lives of tangible fixed assets are subject to revision on balance sheet date. When the book value of fixed tangibles exceeds their recoverable value, the difference (impairment loss) is directly charged as an expense item in the Income Statement.
When disposing of tangible fixed assets, the difference between the revenue from the sale and the book value of the assets is realised as profit or loss in the Income Statement.
Own‐produced fixed tangibles constitute an addition to the acquisition cost of the assets in the form of direct cost of personnel participating in their production (including related employer's social security contributions), cost of materials and other general expenses.
For investment property, management has opted to apply the method of revaluation (fair values), based on IAS 40.
Management believes that the use of fair values in appraising investment property provides reliable and more pertinent information, because it is based on updated prices.
Only expenses meeting the criteria of I.A.S. 38.18 are capitalized, such as expenses for computer software and licenses.
Intangible assets includes computer licenses.
Goodwill represents the additional price paid by the Group for the acquisition of new subsidiaries, joint ventures, and associates. It arises from the comparison of the price paid for the acquisition of a new company with the proportion of the group share to the fair value of the net assets, during the acquisition date. The arisen goodwill from the acquisition of the new subsidiaries and joint ventures is recognized to intangible assets. Every year impairment test for the goodwill is conducted, which decreases the original amount as it is recognized in the balance sheet. During the calculation of profit or loss arisen from participation disposal, the relevant (if any) goodwill is taken under consideration of the disposed company.
For an easier processing of impairment tests, goodwill is allocated to Cash Generating Units (CGU's). The CGU is the smallest identifiable unit of assets which creates independent cash flows and represents the level at which the Group collects and presents the financial data for reasons of internal information. The impairment for the goodwill, is determined from the calculation of the recoverable amount of the CGU's with which the goodwill is connected. Impairment loss which is related with goodwill cannot be reversed in future periods. The Group conducts the annual test for goodwill impairment at 31 December of each accounting period.
In case that the fair value of net assets of a company during the acquisition date is higher than the price paid for the acquisition, negative goodwill is recognized (income), which goes directly in the Income Statement.
Intangible assets with an infinite useful life are not depreciated and are subject to annual review for impairment, whenever events take place showing their book value is not recoverable. Assets being depreciated are subject to review of their value impairment when there are indications that their book value shall not be recovered.
Net Selling Price (NSP) is the amount obtainable from the sale of an asset in an arm's length transaction between knowledgeable willing parties, less the costs of disposal. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. At each balance sheet date, management assess whether there is an indication of impairment as required by I.A.S. 36, requiring that the book value of assets does not exceed their recoverable amount. Recoverable amount is the highest between Net Selling Price and Value in Use.
This evaluation also takes into account all available information, either from internal or external sources. Impairment review is applied on all assets except for inventories, construction contracts, deferred tax receivables, financial assets falling under I.F.R.S. 9, investment property and non‐current assets classified as being held for disposal.
Impairment losses are charged in the Income Statement.
On Balance Sheet date, inventories are valued at the lowest between cost and Net Realisable Value (NRV). NRV is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. Inventory cost does not include financial expenses.
The principles in this Standard complement the principles for recognising and measuring financial assets and financial liabilities in IFRS 9 Financial Instruments.
This Standard is concerned with the classification of financial instruments into financial assets, financial liabilities and equity instruments, as well as the classification of related interest, dividends, losses and gains, and the circumstances in which financial assets and financial liabilities should be offset.
A financial instrument is any contract that simultaneously gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Participatory security is any contract that proves a right to the remaining balance, if from the assets of an entity are deducted its liabilities.
Fair value defined the price that somebody would receive for the sale of an asset or that somebody would pay for the transfer of an obligation to a normal transaction between market participants at the date of measurement.
I.F.R.S. 7 refers to all risks arising from all financial instruments, except those instruments specifically excluded (e.g. interests in subsidiaries, associates and joint ventures, etc.). The objective of the disclosures is to provide an overview of the Group's use of financial instruments and its exposure to risks they create. The extent of the disclosure required depends on the extent of the Company's use of financial instruments and its exposure to risk.
Provisions are recognized when the Group faces legal or substantiated liabilities resulting from past events, their settlement may result in an outflow of resources and the amount of the liability can be reliably estimated. Provisions are reviewed on Balance Sheet date and adjusted to reflect the present value of the expense estimated for settling the liability. Contingent liabilities are not recognized in the financial statements but nevertheless are disclosed in the accompanying notes, except when the probability of an outflow of resources is minimal. Contingent assets are not recognized in the financial statements, but are disclosed in the notes, provided an inflow of economic benefits is probable.
The Group recognizes government grants (subsidies) only when there is reasonable assurance that:
Subsidies are entered in the company's books at their fair value and recognized on a consistent basis as revenue, in accordance with the principle of matching the receipts of subsidies with the related expenses.
Subsidies on assets are included in long‐term liabilities as deferred income and recognized on a consistent basis as revenues over the expected useful life of the assets.
The financial statements of all Group companies are prepared using the currency of the economic area which the Group mainly operates in (operating currency). Consolidated financial reports are denominated in euros, the operating and presentation currency of the parent Company and its subsidiaries.
Transactions in foreign currency are converted in the operating currency according to the going foreign exchange rates on the date on which transactions take place.
Profit and losses from foreign exchange differences arising from settlement of transactions in foreign currency during the financial reporting period and the conversion of monetary items denominated in foreign currency according to the going exchange rates on balance sheet date are recognised in the Income Statement. Foreign exchange adjustments for non‐monetary items valued at fair value are considered part of the fair value and are therefore treated as differences in fair value.
Expenses incurred due to the issue of new shares appear below the deduction of related income tax, reducing the net proceeds from the issue. Expenses incurred due to the issue of new shares to finance the acquisition of another company are included in the target company's total acquisition cost.
Dividend distribution to the parent's shareholders is recognized as a liability in the consolidated financial statements at the date that the distribution is approved by the General Meeting of Shareholders.
Income tax expenses appearing in the Income Statement include both tax for the period and deferred tax, which correspond to tax charges or tax returns arising from benefits realized within the reporting period in question but booked by the tax authorities in earlier or later reporting periods. Income tax is recognized in the Income Statement for the reporting period, except for tax relating to transactions directly charged against shareholders' funds; in that case, income tax is similarly charged directly against shareholders' funds.
Current income tax includes short‐term liabilities and/or receivables from the tax authorities related to payable tax on the taxable income of the reporting period, as well as any additional income tax from earlier reporting periods.
Current tax is calculated according to the tax rates and fiscal legislation applied on each reporting period involved, based on the taxable income for the year. All changes in short‐term tax items listed on either side of the balance sheet are recognized as part of the tax expense in the Income Statement.
Deferred income tax is calculated by means of the liability arising from the temporary difference between book value and the tax base of asset and liabilities. No deferred income tax is entered when arising from the initial recognition of assets or liabilities in a transaction, excluding corporate mergers, which did not affect the reported or taxable profit / loss at that time.
Deferred tax income and liabilities are valued according to the tax rates expected to apply in the reporting period in which the receipt or payment will be settled, taking into account the tax rates (and fiscal laws) introduced or in effect until the reporting date. The tax rate in effect on the day following the reporting date is used whenever the timing of reversal of temporary differences cannot be accurately determined.
Deferred tax receivables are recognized to the extent in which taxable profits will arise in the future while making use of the temporary difference which gives rise to the deferred tax receivable.
Deferred income tax is recognized for the temporary differences arising from investments in subsidiaries and affiliates, excluding those cases where de‐recognition of temporary differences is controlled by the Group and temporary differences are not expected to be derecognized in the foreseeable future.
Most changes in deferred tax receivables or liabilities are recognised as tax expenses in the Income Statement. Only changes in assets or liabilities affecting temporary differences (e.g. asset revaluations) which are recognized directly against the Group's shareholders' funds do result in changes in deferred tax receivables or liabilities being charged against the relevant revaluation reserve.
Short‐term benefits to personnel (excluding termination benefits) in money and in kind are recognized as an expense when deemed payable. Portions of the benefit yet unpaid are classified as a liability, whereas if the amount already paid exceeds the benefit then the company recognizes the excess amount as an asset (prepaid expenses) only to the extent to which the prepayment will result in a reduction in future payments or to a fund return.
Benefits at retirement from service include a defined contribution plan as well as a defined benefit plan.
According to the plan, the company's legal liability is limited to the amount agreed for contribution to the institution (social security fund) managing employer contributions and handing out benefits (pensions, medical plans etc).
The accrued cost of defined contribution plans is classified as an expense in the corresponding financial reporting period.
Defined Benefit Plan:
The Company has legal liability for personnel benefits due to lay‐offs ahead of retirement date or benefits upon retirement from service, in accordance with pertinent legislation.
The Projected Unit Credit Method is used to calculate the present value of defined benefit obligations, the related current cost of services and the cost of services rendered which is the accrued services method, according to which benefits are paid at the financial periods in which the retirement benefit liability is founded. Liabilities arise while employees provide services qualifying for retirement benefits.
The Projected Unit Credit Method therefore requires that benefits are paid in both the current reporting period (to calculate the current cost of services) and in the current and past reporting periods (to calculate the present value of defined benefit obligations).
Despite the fact that remaining in service with the Company is a prerequisite for receiving benefits (ie benefits cannot be taken for granted by employees), liabilities are calculated using actuarial methods as follows:
Demographic Assumptions: Personnel Turnover (Staff Resignations / Staff Lay‐offs), and
Financial Assumptions: discount rate, future salary levels (calculated using government bond yield of equal maturities) and estimated future changes in state benefits affecting payable benefits.
Leases are recognized in the Statement of Financial Position as a right to use an asset and a lease obligation on the date that the leased asset becomes available for use. Each lease is divided between the lease liability and the interest, which is charged to the results throughout the term of the lease, in order to obtain a fixed interest rate on the balance of the financial liability in each period.
After the lease date commencement, the Group measures the right to use the asset in the cost model: (a) less any accumulated depreciation and impairment losses, and (b) adjusted for any subsequent lease measurement, applies the requirements of IAS 16 regarding the depreciation of the right to use an asset, which it examines for impairment.
Following the effective date of the lease period, the Group measures the lease liability as follows: (a) increasing the carrying amount to reflect the financial cost of the lease; (b) reducing the carrying amount to reflect the lease, and (c) remeasuring the carrying amount to reflect any revaluation or modification of the lease. The financial cost of a lease liability is allocated during the lease period in such a way as to give a fixed periodic rate of interest on the outstanding balance of the liability. After the effective date of the lease period, the Group recognizes profit or loss (unless costs are included in the carrying amount of another asset for which other relevant Standards are applied) and the following two elements: (a) the financial cost of the lease obligation; and (b) variable lease payments that are not included in the measurement of the lease liability during the period in which the event that triggers those payments is made.
According to IFRS 16, the treatment of a sale and leaseback transaction depends on whether the transaction constitutes a sale of the asset in accordance with IFRS 15 "Revenues from contracts with customers".
If the transaction constitutes a sale of the asset in accordance with IFRS 15, then:
If the fair value of the sale price of the asset is not equal to the fair value of the asset, then the company should make the following adjustments:
Borrowing cost refers to interest charged on debt, as well as other expenses incurred by the company in securing that debt.
Included in borrowing costs are:
Borrowing costs that can be allocated directly in acquisition, construction or production of an asset which fulfils the requirements should be capitalized.
The Group recognizes the sectors of constructions, concessions, energy and other activities as its primary business operating segments. It also recognizes Greece and international markets as its secondary operating geographic segments. Those operating segments are used by Management for internal purposes and strategic decisions are taken on the basis of the adjusted operating results of each segment, which are used to measure their performance.
Related party disclosures are governed by I.A.S. 24 and refer to transactions between a company reporting its financial statements and other related parties. The main issue is the economic substance of transactions, as opposed to their legal form.
A company is considered a related party to a reporting company if:
c) It is an associate, as defined in IAS 28
d) It is a joint venture, as defined in IFRS 11
Related party transaction is any transfer of resources, services or liabilities between related parties, irrespective of the payment of a price in return.
The standard establishes a five‐step model for determining revenue from customer contracts:
In accordance with IFRS 15, revenue is recognized at the amount that an entity expects to be entitled to in return for the transfer of goods or services to a customer. The standard also specifies the accounting for the additional costs of obtaining a contract and the direct costs required to complete the contract.
Revenue is the amount that an entity expects to be entitled to in return for the goods or services it has transferred to a customer, excluding amounts collected on behalf of third parties (value added tax, other sales taxes). Variable amounts are included in the price and are calculated either by the "expected value" method or the "most probable amount" method.
An entity recognizes revenue when (or as it) satisfies a contractual obligation by transferring the goods or services promised to the customer. The customer acquires control of the good or service if he is able to direct the use and derive substantially all the financial benefits from that good or service. The control is transferred over a period or at a specific time.
Revenue from the sale of goods is recognized when control of the good is transferred to the customer, usually upon delivery, and there is no unfulfilled obligation that could affect the customer's acceptance of the good.
Revenue from the provision of services is recognized in the accounting period in which the services are provided and measured according to the nature of the services provided, using either out put methods or in put methods.
A customer's receivable is recognized when there is an unconditional right for the entity to receive the consideration for the contractual obligations to the customer. A contractual asset is recognized when the Group and the Company have satisfied its obligations to the customer before the customer pays or the payment becomes due, for example when the goods or services are transferred to the customer prior to the Group's right to invoicing.
A contractual liability is recognized when the Company and the Group receive a payment from the customer (prepayment) or when they retain a right that is unconditional (deferred income) before the performance of the contract obligations and the transfer of the goods or services. The contractual liability is derecognised when the obligations of the contract are executed and the income is recorded in the income statement.
The Group is active in the fields of Construction, Concessions, Energy Trading and Real Estate Investments. In the context of assessing the impact of applying IFRS. 15, the Group divided its revenues into revenues from construction and maintenance contracts, revenues from the sale of goods, revenues from electricity trading and other income.
Contracts with customers of this category concern the construction or maintenance of public projects and private projects in Greece and abroad.
Each construction contract contains a single performance obligation for the contractor. Even in the cases of contracts that contain both the design and construction of a project, in substance the contractor's obligation is to deliver one project, the goods and services of which form individual components.
Contract revenue will continue to be accounted for over the time of the contract by using an estimation method similar to the percentage of completion method. The completion stage is measured on the basis of the contractual costs incurred up to the balance sheet date in relation to the total estimated cost of construction of each project.
IFRS 15 states that any variable consideration, i.e. claims for delay/acceleration costs, reward bonus, additional work, should only be recognized as revenue if it is highly probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in the future. In making this assessment, Management has to consider past experience adjusted to the circumstances of the existing contracts. Additional claims and variation orders are included in contract revenue when it is probable that they will be approved by the customer and the amount of revenue can be reliably measured.
Costs of Projects: Project costs include the following:
In the second case, general construction costs are also included. These costs are allocated on an ongoing basis using reasonable methods and bases that are consistently applied to all expenses with similar characteristics.
Indirect project costs include costs such as the preparation and processing of the payroll of construction sites, bank costs directly related to the projects.
Costs that are not attributed or allocated to a project include sales expenses, research and development costs, general administrative expenses and depreciation of machinery inactivity, which are not occupied in the specific project.
There are also contracts with clients for the maintenance of construction projects. Recognition of the revenue from these contracts is made during the contract using the percentage cost‐based approach.
Under I.F.R.S. 9, financial instruments are measured and classified at either fair value (fair value through profit or loss or fair value through other comprehensive income) or amortized cost.
The classification is based on two criteria:
a) the business model for managing the assets and
b) whether the instruments' contractual cash flows represent "solely payments of principal and interest" on the principal amount outstanding (the 'SPPI criterion').
The classification of equity instruments is based on the business model for managing the investments concerned.
The Group and the Company measure financial assets initially at their fair value by adding transaction costs, and if a financial asset is not measured at its fair value, it will be measured through profit or loss. Trade receivables are initially measured at the transaction price.
The Group and the Company recognize impairment provisions for expected credit losses for all financial assets. Expected credit losses are based on the difference between the contractual cash flows and all cash flows that the Group and the Company expects to receive. The difference is discounted using an estimate of the original effective interest rate of the financial asset. For contractual assets, trade receivables and leases, the Group and the Company have applied the simplified approach to the standard and have calculated the expected credit losses on the basis of the expected credit losses over the life of those assets.
The IFRS 9 enables entities to continue to apply the requirements of IAS 39 for hedge accounting. The Group and the Company have chosen to continue to apply IAS 39 for the existing hedging relationship at the date of first application. Therefore, they will continue to apply their present hedge accounting policy, although they will consider initiating the hedge accounting in accordance with IFRS 9 requirements when a new hedging relationship arises.
Financial assets will be measured at amortized cost if they are held within a business model for the purpose of holding and collecting the contractual cash flows that meet the SPPI criterion. Interest income of these items is included in financial income and is recognized using the effective interest rate. Any gain or loss resulting from the write‐off is recognized immediately in the income statement.
Financial assets classified in this category mainly include the following assets:
Trade receivables are initially recognized at their fair value and are subsequently measured at amortized cost using the effective interest method, unless the result of the discount is not material, less any impairment loss. Trade and other receivables also include foreign exchange and receivables.
This category includes investments in Subordinated Debt, in concessions in the Group and the Company, which will be measured at fair value through the statement of other comprehensive income if they are held as part of a business model whose objective both the collection of cash flows and the sale of financial assets, and these contractual cash flows relate exclusively to capital and interest payments. Changes in fair value are recognized in the statement of comprehensive income and upon their recognition the accumulated profits or losses will be recycled to the income statement.
According to I.A.S. 32 «Financial Instruments: Presentation», when a financial instrument includes a contractual commitment to deliver cash or other financial asset to another entity, then the financial instrument is classified as a debt security.
Furthermore, according to I.A.S. 32, there is the possibility of reclassifying a financial instrument from a participatory to debt security due to changes in the substantive terms of the contract without changing the contractual terms.
Some concession contracts will be reclassified from participatory to debt securities in subsequent periods, due to a contractual obligation of the Greek State for a total guaranteed return and payment of dividends.
This category includes equity investments mainly in concession companies that the Group and the Company intends to hold in the foreseeable future and have decided to classify them in their initial recognition or transfer to the IFRS 9. Dividends from such investments continue to be recognized in the income statement unless they represent a recovery of part of the cost of the investment. Changes in fair value are recognized in the statement of comprehensive income and, upon their recognition, accrued gains or losses will not be recycled to the income statement.
In all other cases, the financial assets will be measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are initially recognized at fair value and transaction costs are recognized in profit or loss in the period in which they arise. Realized and unrealized gains or losses arising from changes in the fair value of financial assets measured at fair value through profit or loss are recognized in profit or loss in the period in which they arise.
The Group and the Company do not have any assets in this category, however maintains the right, in the event of a change in the business model, to reclassify financial assets from the category of amortized cost to the category of fair value through profit and loss. In this case, any profit or loss resulting from the
difference between the previous amortized cost of the financial asset and the fair value is recognized in profit and loss (according to I.F.R.S. 9)
Furthermore, the Group and the Company maintains the right, in the event of a change in the business model, to reclassify financial assets from the category of fair value through other comprehensive income to the category of fair value through profit and loss. In this case, the cumulative gain or loss previously recognized in the other comprehensive income is reclassified from equity to profit and loss as adjusted from reclassification (according to IAS 1 and IFRS 9) on the date of reclassification.
Restricted cash are cash equivalents not readily available for use. These cash equivalents may not be used by the Group until a certain point in time or an event is reached or occurs in the future. In the cases where restricted cash is expected to be used within one year from the date of the statement of financial position, these are classified as a short‐term asset. However, if they are not expected to be used within one year from the date of the statement of financial position, they are classified as a long‐term asset.
The preparation of the financial statements requires management to make estimations and judgments that affect the reported disclosures. On an ongoing basis, management evaluates its estimates, the most important of which are presented below. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. These management's estimation and assumptions form the bases for making judgments about the carrying value of assets and liabilities that are not readily available from other sources. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Management tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in paragraph C.4.i. The recoverable amounts of cash‐generating units have been determined based on value‐in‐use calculations. These calculations require the use of estimates which mainly relate to future earnings and discount rates.
Non‐financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, in accordance with the accounting policy stated in paragraph C.6.
Group entities are subject to income taxes in numerous jurisdictions. Significant judgment is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made.
Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Further details on taxes are disclosed in note 19.
Property, plant and equipment (PPE) are depreciated over their estimated useful lives. The actual lives of the assets are assessed annually and may vary depending on a number of factors.
The allowance for net realizable value of inventory, in accordance with the accounting policy as stated in paragraph C.5, represents management's best estimate, based on historic sales trends and its assessment on quality and volume, of the extent to which the stock on hand at the reporting date will be sold below cost.
The Group's management periodically reassess the adequately of the allowance for doubtful accounts receivable using parameters such as its credit policy, reports from its legal counsel on recent developments of the cases they are handling, and its judgment/estimate about the impact of other factors affecting the recoverability of the receivables.
The cost for the staff leaving indemnities is determined based on actuarial valuations. The actuarial valuation requires management making assumptions about future salary increases, discount rates, mortality rates, etc. Management, at each reporting date when the provision is re‐examined, tries to give its best estimate regarding the above mentioned parameters.
The existence of contingent liabilities requires from management making assumptions and estimates continuously related to the possibility that future events may or may not occur as well as the effects that those events may have on the activities of the Group.
Whenever the financial result of a contract may be estimated with reliability, the income and expenses of the contract are recognized during the life of the contract respectively as income and expenses. Income is only recognized to the extent that the cost arising from the contract may be recovered, while that cost is recognized as an expense in the period in which it arose.
The factors examined by the Group to assess whether a company is a joint arrangement, include the structure, the legal form, the contractual agreement and other facts and conditions.
A number of assets and liabilities included in the Group's financial statements require measurement at, and / or disclosure of, fair value. The Group measures a number of items at fair value:
Group Companies consider, as applicable, entering into derivative financial instrument contracts with the aim of hedging their exposure to interest rate risk deriving from long‐term loan agreements. The Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. This procedure includes linking all derivatives defined as hedging instruments to specific asset and liability items or to specific commitments or forecast transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Any changes in the value of the derivative that does not meet the recognition criteria as a hedging instrument are recognized in the income statement. The estimated fair value is calculated on the basis of current prices. The total fair value of hedging derivatives is classified as equity.
Derivative assets are initially recognized at fair value as of the date of the relevant agreement. The portion of change to the derivative's fair value considered effective and meeting the cash flow hedging criteria is recognized in other comprehensive income. Profit or loss associated with the non‐effective portion of change is directly recognized in the Income Statement, under "Finance income" or "Finance cost". Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects the profit or loss of the period. Profit or loss associated with the effective portion of the hedging of floating interest rate swaps is recognized in the Income Statement under "Finance income" or "Finance cost". However, when a prospective transaction to be hedged results in the recognition of a non‐financial asset (such as inventory or PPE), then profit or losses previously recognized in equity are transferred from Equity and are accounted for at the initial cost of such asset. The deferred amounts are ultimately recognized in cost of goods sold in the case of inventory or in depreciation in the case of fixed assets. When a hedging instrument expires or it is sold, or when a hedging relation no longer meets the criteria of hedge accounting, the cumulative profit or loss recorded to that time under Equity remain in Equity and are recognized when the prospective transaction is ultimately recognized in the Income Statement. When a prospective transaction is no longer expected to occur, the cumulative profit or loss recognized in Equity is directly transferred to the Income Statement under "Other operating profit/(loss)".
These interim consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. They do not include all disclosures that would otherwise be required in a complete set of financial statements and should be read in conjunction with the 2020 annual report.
The company and the Group has applied the same accounting policies and methods of computation in its interim consolidated financial statements as in its 2020 annual financial statements, except for those that relate to new standards and interpretations effective for the first time for periods beginning on (or after) 1 January 2021.
However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance since the last annual group financial statements.
| IFRS | IASB Effective Date |
|---|---|
| IBOR reform and its effects on financial report – phase 2 | 1 January 2021 |
New and amended standards and Interpretations issued by the IASB that will apply for the first time in the next annual financial statements are not expected to impact the Group as they are either not relevant to the Group's activities or require accounting which is consistent with the Group's current accounting policies.
In addition to the above pronouncements, the IFRS Interpretations Committee has issued a number of agenda decisions which set out the Interpretations Committee's rationale on how the requirements of applicable IFRSs should be applied. Since 30 June 2020, agenda decisions have been finalized on the following topics:
| Accounting Standard | Topic |
|---|---|
| IAS 1 Presentation of Financial Statements | Supply Chain Financing Arrangements – Reverse Factoring |
| IAS 38 Intangible Assets | Configuration or Customisation Costs in a Cloud Computing Arrangement |
| IFRS 9 Financial Instruments | Hedging Variability in Cash Flows due to Real Interest Rates |
| IAS 19 Employee Benefits | Attributing Benefit to Periods of Service |
| IAS 10 Events after the Reporting Period | Preparation of Financial Statements when an Entity is no longer a Going Concern |
| IAS 2 Inventories | Costs Necessary to Sell Inventories |
The IFRS Interpretations Committee (IFRS IC) has issued, in May 2021, a tentative decision "Attributing Benefit to Periods of Service (IAS 19 Employee Benefits)" where additional explanatory application guidance is provided on the method used to attribute employee benefits on specific defined benefit schemes with similar characteristics of the scheme contemplated in article 8 of legislation Ν.3198/1955 which refers to staff retirement indemnity.
The application guidance modifies the method currently used in Greece to apply the basic principles of IAS 19 and as a result, entities which prepare IFRS financial statements are required to change their accounting policy accordingly.
The tentative decision is effective immediately however, it was impracticable to be applied in the interim financial statements as at 30th June 2021.
Any changes will be presented as a change in accounting policy and applied retrospectively in the annual financial statements for the year ending 31 December 2021, adjusting comparatives balances for 2020 and the opening balance of reserves for amounts relating to previous periods, as if the new policy had always been applied.
The Company (or the Group) is currently investigating the impact of the change in the method to attribute the retirement benefits however, a reliable estimate cannot be produced until the actuarial report is updated and finalized.
| Title | Mandatorily effective for periods beginning on or after |
|---|---|
| IFRS 16 Leases: Covid‐19‐Related Rent Concessions beyond 30 June 2021 |
1 April 2021 |
| Annual Improvements to IFRSs ‐ 2018‐2020 cycle | 1 January 2022 |
| IAS 16 Property, Plant and Equipment (Amendment – Proceeds before Intended Use) |
1 January 2022 |
| IAS 37 Provisions, Contingent Liabilities and Contingent Assets (Amendment – Onerous Contracts – Cost of Fulfilling a Contract) |
1 January 2022 |
| IFRS 3 Business Combinations (Amendment – Reference to the Conceptual Framework) |
1 January 2022 |
| IFRS 17 Insurance Contracts | 1 January 2023 |
| IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (Amendment – Classification of Liabilities as Current or Non‐ current) |
1 January 2023 |
| IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 (Amendment – Disclosure of Accounting Policies) |
1 January 2023 |
| IAS 8 Accounting policies, Changes in Accounting Estimates and Errors (Amendment ‐ Definition of Accounting Estimates) |
1 January 2023 |
| IAS 12 Income Taxes (Amendment ‐ Deferred Tax related to Assets and Liabilities arising from a Single Transaction) |
1 January 2023 |
The Company and the Group is currently investigating the impact of the new standards and amendments on its financial statements. The Company and the Group do not believe these standards and interpretations will have a material impact on the financial statements once adopted.
There have been no material revisions to the nature and amount of estimates of amounts reported in prior periods.
However, the effects of COVID‐19 have required significant judgments and estimates to be made, including:
The Group is active in 4 main business segments:
‐ Other activities (Real estate development and other activities)
The figures per business segments for the period 01/01‐30/06/2021 are as follows:
| Construction | Concessions | Energy | Other activities | Total | |
|---|---|---|---|---|---|
| Total gross sales per segment | 302,470,474 | 1,874,587 | 63,269,665 | 6,162,898 | 373,777,623 |
| Inter‐segment sales | (48,160,708) | (600) | (529,193) | (794,646) | (49,485,147) |
| Net Sales | 254,309,766 | 1,873,987 | 62,740,471 | 5,368,252 | 324,292,476 |
| Gross Profit/ (Loss) | 23,882,862 | 573,239 | (1,393,914) | 1,717,583 | 24,779,770 |
| Other net operating income/(expenses) | 2,740,962 | 1,010,914 | 145,110 | 68,494 | 3,965,480 |
| Impairment of investments/participations & Write‐off of doubtful receivables & other provisions |
(3,457,265) | ‐ | ‐ | ‐ | (3,457,265) |
| Administrative expenses / Selling & Marketing expenses | (13,971,488) | (3,532,596) | (2,591,269) | (1,302,783) | (21,398,135) |
| Income from sub‐debt | (131,403) | 2,462,404 | 765,768 | ‐ | 3,096,768 |
| Income/(Losses) from Investments in Associates | (41,008) | 13,726,162 | ‐ | (278,548) | 13,406,607 |
| Profit/ (Loss) from operations | 9,022,659 | 14,240,123 | (3,074,304) | 204,747 | 20,393,224 |
| Profit/ (Loss) of other financial instruments Interest |
‐ (12,737,835) |
||||
| Profit/ (Loss) before tax | 7,655,389 | ||||
| Tax | (1,727,636) | ||||
| Profit/ (Loss) after tax | 5,927,753 | ||||
| Depreciation | 5,317,064 | 640,907 | 1,888,146 | 399,922 | 8,246,039 |
| EBITDA | 17,796,989 | 14,881,030 | (1,186,158) | 604,668 | 32,096,528 |
The figures per business segments for the period 01/01‐30/06/2020 are as follows:
| Construction | Concessions | Energy | Other activities | Total | |
|---|---|---|---|---|---|
| Total gross sales per segment | 270,412,973 | 1,437,706 | 52,798,393 | 6,712,154 | 331,361,226 |
| Inter‐segment sales | (70,007,258) | (600) | (458,644) | (933,665) | (71,400,167) |
| Net Sales | 200,405,715 | 1,437,106 | 52,339,749 | 5,778,489 | 259,961,059 |
| Gross Profit/ (Loss) | 18,530,493 | 180,290 | 3,717,739 | 359,965 | 22,788,487 |
| Other net operating income/(expenses) | 3,394,324 | 30,923 | 190,604 | 393,243 | 4,009,094 |
| Impairment of investments/participations & Write‐off of doubtful receivables & other provisions |
(300,000) | ‐ | (354,034) | ‐ | (654,034) |
| Administrative expenses / Selling & Marketing expenses | (13,303,735) | (4,592,495) | (2,230,565) | (836,190) | (20,962,985) |
| Income from sub‐debt | ‐ | 2,654,390 | 77,182 | ‐ | 2,731,572 |
| Income/(Losses) from Investments in Associates | 955,521 | 9,910,089 | ‐ | 122 | 10,865,733 |
| Profit/ (Loss) from operations | 9,276,603 | 8,183,198 | 1,400,926 | (82,859) | 18,777,867 |
| Profit/ (Loss) of other financial instruments Interest |
‐ (12,569,714) |
||||
| Profit/ (Loss) before tax | 6,208,153 | ||||
| Tax | 4,330,258 | ||||
| Profit/ (Loss) after tax | 10,538,411 | ||||
| Depreciation | 5,432,066 | 916,765 | 628,000 | 301,546 | 7,278,377 |
| EBITDA | 15,008,669 | 9,099,963 | 2,382,960 | 218,687 | 26,710,279 |
| Construction | Concessions | Energy | Other activities | Total | |
|---|---|---|---|---|---|
| Assets (excluding investments in associates) | 747,880,377 | 82,904,829 | 125,705,230 | 35,057,997 | 991,548,433 |
| Investments in associates | 202,893,770 | 21,000 | ‐ | 6,906,760 | 209,821,530 |
| Investments in tangible fixed assets, intangible, investment property and right of use assets |
83,516,258 | 24,201,993 | 73,879,831 | 19,080,438 | 200,678,521 |
| Total assets | 950,774,147 | 82,925,829 | 125,705,230 | 41,964,757 | 1,201,369,963 |
| Liabilities | (886,493,078) | (96,514,024) | (105,788,036) | (13,956,700) (1,102,751,837) | |
| Debentures / leasing liabilities | (496,301,288) (28,501,027) (60,328,732) (6,187,344) (591,318,392) | ||||
| Restricted Cash Deposits | 50,488,051 | ‐ | 5,696,208 | ‐ | 56,184,259 |
| Cash and cash equivalents | 39,432,682 | 328,816 | 8,585,009 | 1,845,106 | 50,191,612 |
| Net Debt / Available cash and cash equivalents | (406,380,555) | (28,172,212) | (46,047,515) | (4,342,239) (484,942,521) |
The assets and liabilities of the business segment at 31st December 2020 are as follows:
| Construction | Concessions | Energy | Other activities | Total | |
|---|---|---|---|---|---|
| Assets (excluding investments in associates) | 709,545,946 | 107,932,621 | 121,752,513 | 34,871,671 | 974,102,750 |
| Investments in associates | 233,266,667 | 21,000 | ‐ | 3,998,718 | 237,286,385 |
| Investments in tangible fixed assets, intangible, investment property and right of use assets |
81,123,757 | 29,342,536 | 78,695,393 | 17,300,060 | 206,461,746 |
| Total assets | 942,812,613 | 107,953,621 | 121,752,513 | 38,870,389 | 1,211,389,135 |
| Liabilities | (872,755,540) | (123,166,749) | (97,561,707) | (27,378,098) (1,120,862,094) | |
| Debentures / leasing liabilities | (521,091,417) (28,981,194) (55,756,312) (9,019,779) (614,848,702) | ||||
| Restricted Cash Deposits | 48,895,770 | ‐ | 3,849,337 | ‐ | 52,745,107 |
| Cash and cash equivalents | 39,125,595 | 292,479 | 8,579,864 | 2,519,112 | 50,517,050 |
| Net Debt / Available cash and cash equivalents | (433,070,051) | (28,688,715) | (43,327,111) | (6,500,666) (511,586,545) |
The group is active in 2 main Geographical segments
‐ Greece
‐ International Markets
The figures per segment for the period 01/01‐30/06/2021 are as follows:
| Greece | International Markets | Total | |
|---|---|---|---|
| Total gross sales per segment | 134,777,542 | 239,000,081 | 373,777,623 |
| Intra group sales | (1,714,124) | (47,771,024) | (49,485,147) |
| Net Sales | 133,063,419 | 191,229,057 | 324,292,476 |
| Gross Profit/ (Loss) | (3,518,258) | 28,298,028 | 24,779,770 |
| Other net operating income/(expenses) | 4,246,370 | (280,889) | 3,965,480 |
| Impairment of investments/participations & Write‐off of | |||
| doubtful receivables & other provisions | (3,457,265) | ‐ | (3,457,265) |
| Administrative expenses / Selling & Marketing expenses | (7,715,786) | (13,682,350) | (21,398,135) |
| Income from sub‐debt | 3,096,768 | ‐ | 3,096,768 |
| Income/(Losses) from Investments in Associates | 4,397,291 | 9,009,315 | 13,406,607 |
| Profit/ (Loss) from operations | (2,950,880) | 23,344,105 | 20,393,224 |
| Interest | (6,123,262) | (6,614,573) | (12,737,835) |
| Profit/ (Loss) before tax | (9,074,142) | 16,729,531 | 7,655,389 |
| Tax | (1,443,235) | (284,401) | (1,727,636) |
| Profit/(Loss) after tax | (10,517,377) | 16,445,131 | 5,927,753 |
| Depreciation | 6,896,454 | 1,349,584 | 8,246,039 |
| EBITDA | 7,402,840 | 24,693,689 | 32,096,528 |
The figures per segment for the period 01/01‐30/06/2020 are as follows:
| Greece | International Markets | Total | |
|---|---|---|---|
| Total gross sales per segment | 116,468,382 | 214,892,844 | 331,361,226 |
| Inter‐segment sales | (5,482,852) | (65,917,314) | (71,400,167) |
| Net Sales | 110,985,530 | 148,975,529 | 259,961,059 |
| Gross Profit/ (Loss) | (693,887) | 23,482,374 | 22,788,487 |
| Other net operating income/(expenses) | 1,091,120 | 2,917,974 | 4,009,094 |
| Impairment of investments/participations & Write‐off of | |||
| doubtful receivables & other provisions | (654,034) | ‐ | (654,034) |
| Administrative expenses / Selling & Marketing expenses | (8,996,608) | (11,966,376) | (20,962,985) |
| Income from sub‐debt | 2,731,572 | ‐ | 2,731,572 |
| Income/(Losses) from Investments in Associates | 10,865,733 | ‐ | 10,865,733 |
| Profit/ (Loss) from operations | 4,343,896 | 14,433,971 | 18,777,867 |
| Interest | (7,284,057) | (5,285,657) | (12,569,714) |
| Profit/ (Loss) before tax | (2,940,161) | 9,148,314 | 6,208,153 |
| Tax | 4,343,654 | (13,396) | 4,330,258 |
| Profit/(Loss) after tax | 1,403,493 | 9,134,918 | 10,538,411 |
| Depreciation | 5,239,125 | 2,039,253 | 7,278,377 |
| EBITDA | 10,237,055 | 16,473,224 | 26,710,279 |
Turnover, assets and liabilities of the geographical segment for the period 01/01‐30/6/2021 are as follows:
| Greece | Other European countries |
Gulf, Middle East and Africa countries |
Consolidated data | |
|---|---|---|---|---|
| Turnover excluding intra‐company transactions | 133,063,419 | 73,134,742 | 118,094,315 | 324,292,476 |
| Non‐current assets (other than deferred tax and financial assets) |
422,519,967 | 13,826,627 | 1,109,815 | 437,456,409 |
| Capital expenses | (24,740,450) | ‐ | ‐ | (24,740,450) |
Turnover, assets and liabilities of the geographical segment for the period 01/01‐30/6/2020 are as follows:
| Greece | Other European countries |
Gulf, Middle East and Africa countries |
Consolidated data | |
|---|---|---|---|---|
| Turnover excluding intra‐company transactions Non‐current assets (other than deferred tax and |
110,985,530 | 25,305,369 | 123,670,160 | 259,961,059 |
| financial assets) | 423,919,518 | 24,984,322 | 12,409,294 | 461,313,134 |
| Capital expenses | 1,220,344 | 13,687,779 | (12,315,214) | 2,592,909 |
GROUP
| hin & Ma c ery |
rni & Fu tur es |
de As set u s n r |
|||||
|---|---|---|---|---|---|---|---|
| Co st |
d Lan |
i l d ing Bu s |
ipm Eq t u en |
hic les Ve |
Fit ing t s |
Co ion nst t ruc |
l i b le To T As ta set an g s |
| lan Ba 31 .12 .20 20 ce |
20 72 7, 22 3 , |
43 20 0, 70 8 , |
15 2, 40 1, 48 9 |
24 98 7, 09 5 , |
11 15 9, 73 8 , |
9, 44 4, 45 7 |
26 1, 92 0, 70 9 |
| Ac isit ion f s bsi dia qu o u ry |
‐ | ‐ | ‐ | ‐ | ‐ | ‐ | |
| du he d Ac isit ion rin 1.1 ‐30 .06 .20 21 rio t qu s g pe |
‐ | 16 62 7 , |
37 6, 24 2 |
48 13 7 , |
22 6, 12 9 |
2, 10 2, 96 8 |
2, 77 0, 10 4 |
| fer Tra ns s |
‐ | 25 4, 76 9 |
10 72 2, 62 8 , |
‐ | 40 2 |
( ) 10 97 7, 79 9 , |
‐ |
| ha di f fer Exc ate ng e r en ces |
‐ | ‐ | ‐ | ( ) 15 03 9 , |
( ) 15 1 |
‐ | ( ) 15 19 0 , |
| ls du he d Dis rin 1.1 ‐30 .06 .20 21 rio t po sa g pe |
‐ | ( ) 11 1, 29 3 |
( ) 8, 27 7, 50 4 |
( ) 1, 03 5, 30 0 |
( ) 58 2, 91 4 |
( ) 16 3, 08 5 |
( ) 10 17 0, 09 6 , |
| lan Ba 3 0.0 6.2 02 1 ce |
20 72 7, 22 3 , |
43 36 0, 81 0 , |
15 5, 22 2, 85 5 |
23 98 4, 89 3 , |
10 80 3, 20 5 , |
40 6, 54 2 |
25 4, 50 5, 52 8 |
| lan Ba 31 .12 .20 20 ce |
2, 41 5, 06 0 |
24 27 8, 27 2 , |
85 09 0, 86 9 , |
17 64 2, 54 7 , |
9, 22 7, 76 3 |
5, 17 2 |
13 8, 65 9, 68 3 |
|---|---|---|---|---|---|---|---|
| cia tio ha for he rio d De 1.1 ‐30 .06 .20 21 t pre n c rge pe |
10 0, 00 0 |
75 6, 37 1 |
3, 32 1, 52 7 |
56 0, 45 1 |
24 1, 85 1 |
23 6 |
4, 98 0, 43 5 |
| ha di f fer Exc ate ng e r en ces |
‐ | ‐ | ‐ | ( ) 14 08 0 , |
( ) 15 1 |
‐ | ( ) 14 23 1 , |
| ls du he d Dis rin 1.1 ‐30 .06 .20 21 rio t po sa g pe |
‐ | ( ) 41 25 7 , |
( ) 6, 40 3, 94 3 |
( ) 1, 05 6, 74 5 |
) ( 56 4, 43 7 |
‐ | ( ) 8, 06 6, 38 1 |
| lan Ba 30 .06 .20 21 ce |
2, 51 5, 06 0 |
24 99 3, 38 6 , |
82 00 8, 45 2 , |
17 13 2, 17 3 , |
8, 90 5, 02 7 |
5, 40 8 |
13 5, 55 9, 50 6 |
| lan Ba 30 .06 .20 21 ce |
18 21 2, 16 3 , |
18 36 7, 42 4 , |
73 21 4, 40 3 , |
6, 85 2, 72 0 |
1, 89 8, 17 8 |
40 1, 13 4 |
11 8, 94 6, 02 2 |
|---|---|---|---|---|---|---|---|
| lan Ba 31 .12 .20 20 ce |
18 31 2, 16 3 , |
18 92 2, 43 6 , |
67 31 0, 62 0 , |
7, 34 4, 54 8 |
1, 93 1, 97 4 |
9, 43 9, 28 5 |
12 3, 26 1, 02 6 |
TheGroup and the Company apply the revaluation model of tangible assets (land and buildings).
The Group, as of 31/12/20 as part of a review of the value of tangible assets, has assigned to independent certified valuators the valuation of the main properties.The value of the assets was not re‐checked for the currentperiod because there was no relevant indication of impairment.
| hin & Ma c ery |
rni & Fu tur es |
de As set u s n r |
|||||
|---|---|---|---|---|---|---|---|
| Co st |
Lan d |
i l d ing Bu s |
ipm Eq t en u |
Ve hic les |
Fit ing t s |
Co ion nst t ruc |
l i b le As To ta T set an g s |
| lan Ba 31 .12 .20 20 ce |
11 54 3, 61 5 , |
17 30 8, 20 7 , |
86 87 1, 38 9 , |
19 41 1, 44 3 , |
10 31 9, 90 5 , |
15 7, 95 5 |
14 5, 61 2, 51 4 |
| Ac isit ion du rin he 1.1 ‐30 .06 .20 21 rio d t qu s g pe |
‐ | 66 5, 7 |
35 3, 96 5 |
47 38 8 , |
15 1, 76 5 |
‐ | 8, 78 6 55 |
| ha di f fer Exc ate ng e r en ces |
‐ | ‐ | ‐ | ‐ | ( ) 15 1 |
‐ | ( ) 15 1 |
| Dis ls du rin he 1.1 ‐30 .06 .20 21 rio d t po sa g pe |
‐ | ( ) 11 1, 29 3 |
( ) 8, 08 7, 74 9 |
( ) 99 4, 32 8 |
( ) 57 3, 80 5 |
( ) 16 71 3 , |
( ) 9, 78 3, 88 8 |
| lan Ba 30 .06 .20 21 ce |
11 54 3, 61 5 , |
17 20 2, 58 1 , |
79 13 7, 60 5 , |
18 46 4, 50 3 , |
9, 89 7, 71 5 |
14 1, 24 2 |
13 6, 38 7, 26 0 |
| Ac lat d iat ion De cu mu e pre c |
|||||||
| lan Ba 31 .12 .20 20 ce |
‐ | 13 07 9, 20 3 , |
72 96 0, 31 8 , |
16 05 1, 25 2 , |
8, 59 8, 42 5 |
‐ | 11 0, 68 9, 19 8 |
| ha for he d De cia tio 1.1 ‐30 .06 .20 21 rio t pre n c rge pe |
‐ | 13 8, 81 4 |
1, 47 8, 96 0 |
30 1, 75 2 |
20 1, 90 4 |
‐ | 2, 12 1, 43 0 |
| ha di f fer Exc ate ng e r en ces |
‐ | ‐ | ‐ | ‐ | ( ) 15 1 |
‐ | ( ) 15 1 |
| ls du he d Dis rin 1.1 ‐30 .06 .20 21 rio t po sa g pe |
‐ | ( ) 41 25 7 , |
( ) 6, 31 9, 21 1 |
( ) 1, 01 6, 73 1 |
) ( 55 7, 87 7 |
‐ | ( ) 7, 93 5, 07 5 |
| lan Ba 30 .06 .20 21 ce |
‐ | 13 17 6, 76 0 , |
68 12 0, 06 7 , |
15 33 6, 27 3 , |
8, 24 2, 30 2 |
‐ | 10 4, 87 5, 40 2 |
| k lue Ne Bo Va t o |
|||||||
| lan Ba 30 .06 .20 21 ce |
11 54 3, 61 5 , |
4, 02 5, 82 1 |
11 01 7, 53 8 , |
3, 12 8, 22 9 |
1, 65 5, 41 3 |
14 1, 24 2 |
31 51 1, 85 8 , |
| lan 31 .12 .20 20 Ba ce |
11 54 3, 61 5 , |
4, 22 9, 00 4 |
13 91 1, 07 1 , |
3, 36 0, 19 0 |
1, 72 1, 48 0 |
15 95 7, 5 |
34 92 3, 31 6 , |
TheGroup and the Company apply the revaluation model of tangible assets (land and buildings).
The Company, as of 31/12/20 as part of a review of the value of tangible assets, has assigned to independent certified valuators the valuation of the main properties.The value of the assets was not re‐checked for the currentperiod because there was no relevant indication of impairment.
GROUP
| Machinery & | ||||||
|---|---|---|---|---|---|---|
| Cost | Land | Buildings | Equipment | Vehicles | Furnitures & Fittings | Total Tangible Assets |
| Balance 31.12.2020 | 28,652,078 | 27,605,397 | 13,241,035 | 3,199,599 | 177,343 | 72,875,452 |
| Additions | 459,380 | 756,594 | 123,703 | 706,266 | ‐ | 2,045,943 |
| Disposals | ‐ | (535,806) | ‐ | (335,389) | (3,800) | (874,995) |
| Balance 30.06.2021 | 29,111,458 | 27,826,185 | 13,364,738 | 3,570,477 | 173,543 | 74,046,400 |
| Accumulated Depreciation | ||||||
| Balance 31.12.2020 | 3,882,209 | 1,597,329 | 2,437,814 | 1,281,400 | 122,365 | 9,321,117 |
| Disposals | ‐ | ‐ | ‐ | (232,242) | ‐ | (232,242) |
| Depreciation charge for the period | 660,428 | 1,071,892 | 823,718 | 479,208 | 18,366 | 3,053,612 |
| Balance 30.06.2021 | 4,542,637 | 2,669,221 | 3,261,532 | 1,528,366 | 140,731 | 12,142,487 |
| Net Book Value | ||||||
| Balance 30.06.2021 | 24,568,821 | 25,156,964 | 10,103,207 | 2,042,111 | 32,812 | 61,903,913 |
| Balance 31.12.2020 | 24,769,869 | 26,008,068 | 10,803,221 | 1,918,199 | 54,978 | 63,554,335 |
| COMPANY | ||||||
| Cost | Land | Buildings | Machinery & Equipment |
Vehicles | Furnitures & Fittings | Total Tangible Assets |
| Balance 31.12.2020 | 744,468 | 21,225,179 | 8,551,841 | 2,690,598 | 164,902 | 33,376,987 |
| Additions | 113,813 | 78,815 | 122,750 | 649,979 | ‐ | 965,357 |
| Disposals Balance 30.06.2021 |
‐ 858,281 |
‐ 21,303,994 |
‐ 8,674,591 |
(335,389) 3,005,188 |
‐ 164,902 |
(335,389) 34,006,956 |
| Accumulated Depreciation | ||||||
| Balance 31.12.2020 | 596,176 | 1,067,111 | 622,206 | 899,575 | 114,861 | 3,299,929 |
| Disposals | ‐ | ‐ | ‐ | (232,242) | ‐ | (232,242) |
| Depreciation charge for the period | 119,853 | 930,683 | 586,174 | 427,812 | 16,490 | 2,081,013 |
| Balance 30.06.2021 | 716,029 | 1,997,794 | 1,208,380 | 1,095,146 | 131,351 | 5,148,701 |
| Net Book Value | ||||||
| Balance 30.06.2021 | ||||||
| 142,252 | 19,306,199 | 7,466,211 | 1,910,042 | 33,550 | 28,858,255 |
| GROUP | COMPANY | ||||||
|---|---|---|---|---|---|---|---|
| Land | Buildings | Total | Land | Buildings | Total | ||
| Cost | |||||||
| Balance 31.12.2020 | 11,613,347 | 909,890 | 12,523,237 | 3,104,885 | 254,450 | 3,359,336 | |
| Additions | ‐ | ‐ | ‐ | ‐ | ‐ | ‐ | |
| Disposals | (67,482) | (117,518) | (185,000) | ‐ | ‐ | ‐ | |
| Balance 30.06.2021 | 11,545,865 | 792,372 | 12,338,237 | 3,104,885 | 254,450 | 3,359,336 | |
| Balance 31.12.2020 | 11,613,347 | 909,890 | 12,523,237 | 3,104,885 | 254,450 | 3,359,336 |
The Group, as of 31/12/20 as part of a review of the value of investment property, has assigned to independent certified valuators the valuation of the main properties. The value of the assets was not re‐checked for the current period because there was no relevant indication of impairment.
| Cost | Software | Energy stations licenses |
Other Intangible Assets |
Total |
|---|---|---|---|---|
| Balance 31.12.2020 | 4,795,113 | 6,464,426 | 26,200 | 11,285,739 |
| Additions Exchange rate differences |
175,008 (34) |
409,327 ‐ |
‐ ‐ |
584,336 (34) |
| Disposals | (73,655) | ‐ | ‐ | (73,655) |
| Balance 30.06.2021 | 4,896,433 | 6,873,753 | 26,200 | 11,796,386 |
| Accumulated Depreciation | ||||
| Balance 31.12.2020 | 3,947,382 | 204,752 | 10,458 | 4,162,591 |
| Depreciation charge for the period | 139,206 | 72,265 | 524 | 211,996 |
| Exchange rate differences | (34) | ‐ | ‐ | (34) |
| Disposals | (68,517) | ‐ | ‐ | (68,517) |
| Balance 30.06.2021 | 4,018,038 | 277,017 | 10,982 | 4,306,036 |
| Net Book Value | ||||
| Balance 30.06.2021 | 878,395 | 6,596,736 | 15,218 | 7,490,349 |
| Balance 31.12.2020 | 847,731 | 6,259,675 | 15,742 | 7,123,148 |
| COMPANY | ||||
| Cost | Software | |||
| Balance 31.12.2020 | 4,477,536 | |||
| Additions | 145,985 | |||
| Exchange rate differences | (34) | |||
| Disposals | (73,655) | |||
| Balance 30.06.2021 | 4,549,832 | |||
| Accumulated Depreciation | ||||
| Balance 31.12.2020 | 3,820,282 | |||
| Depreciation charge for the period | 104,652 | |||
| Exchange rate differences Disposals |
(34) (68,517) |
|||
| Balance 30.06.2021 | 3,856,383 | |||
| Net Book Value | ||||
| Balance 30.06.2021 | 693,449 | |||
| Balance 31.12.2020 | 657,254 |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Investments in Subsidiaries | ‐ | ‐ | 88,661,986 | 88,661,986 |
| Investments in Associates | 208,494,138 | 236,721,204 | ‐ | ‐ |
| Investments in Associates and Other participating | ||||
| companies (Participating interests) | 1,327,393 | 565,182 | 1,963,572 | 694,688 |
| 209,821,530 | 237,286,385 | 90,625,558 | 89,356,674 |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Investments in GROUP/AVAX S.A | 107,138,313 | 103,992,642 | 367,528,474 | 392,324,371 |
| 107,138,313 | 103,992,642 | 367,528,474 | 392,324,371 |
In order to provide more detailed information the valuation of concessions is stated at fair value, according to Independent Appraisers valuations. Last appraisal as of 31.12.20.
The financial assets at fair value through other comprehensive income include the participation in the G.E.F.Y.R.A. SA, as there is a contractual obligation of the Greek State for a total guaranteed return and payment of dividends.
In the consolidated balance sheet of the Group, concessionss are reported by the equity method, except for the participations below 20% (Moreas Highway and Olympia Odos, which are reported at fair value).
As a result an amount of €175 mil. is not depicted in the consolidated balance sheet and refers to the difference between fair value and net position of the concessions which are consolidated with the equity method of the concessions which are consolidated with the equity method.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Clients | 163,062,234 | 161,936,919 | 139,514,601 | 135,852,818 |
| Other receivables | 169,752,450 | 168,581,911 | 145,333,652 | 156,235,111 |
| 332,814,684 | 330,518,830 | 284,848,253 | 292,087,929 |
The receivables from customers of the Company and the Group include an amount of € 24 mil. which is overdue for more than 4 years. This amount relates to a portion of an invoiced amount under a Lebanon technical project contract for which an Arbitration Application has been filed before the ICSID (International Center for the Resolution of Investment Disputes) and was postponed until 31.5.2020 in the context of an out‐of‐court negotiations. While the effort for amicable negotiation continues, the Company decided the resumption of suspended arbitration before ICSID.The Company finally submitted its first full memorandum (Claimant's Memorandum) to the Arbitration Court on 22 June 2020. On 23.06.2021 the State of Lebanon submitted its detailed memorandum and on 06.08.2021, the two parties submitted simultaneous requests for documents, procedure which is scheduled to be completed on 15.11.2021. Following the above procedure, on 24.01.2022, the company will submit its response to the memorandum of the Lebanese state. Based on these data, the assessment of the recoverability of the claim as at 30.06.2021 remains same as of 31.12.2020.
(a) Regarding the pending court cases of the Company on 30.06.2021, arbitration decision 21/2005, which had obliged the parties to pay the Company €16.3 million plus interest for the equity deficit of "TECHNICAL UNION SA" which was absorbed by the Company, under the Decision of the Court of First Instance of Athens #2752/2010 was ordered to suspend the execution of the arbitration decision under article 938 of the Criminal Law Code until a decision is taken on the ordinary opposition that challenges the validity of the enforcement procedure, which was tried in March 2013. This decision of suspension is incorrect because it accepted that the Company misused its right to enforcement, which was repeatedly raised by the defendants and was dismissed, covered by the "res judicata". The Company on 30.03.2011 requested the Court of First Instance of Athens to revoke this decision, reopening the road of enforcement, but this revocation application was rejected, and the progress of the enforcement would therefore be delayed by the March 2013 hearing, as part of the regular opposition. The case was adjudicated and a decision was issued by the First Instance Court of Athens, which also dismissed the objection of the "P family", so that the decision to suspend (5752/10) lost its validity and progress in enforcement is now possible.
Within the framework of this last possibility, after two suspensions at the Athens Peace Court, on 06.10.2015, ATHENA SA requested permission to sell by auction the shares of the P. family members to satisfy its claim. At the same time, the P. family house located in Kefalari, Kifissia (Pentelis 39 Street), has been seized, the Court having determined the value of this property at€5,000,000 and cleared it for auctioning.
A decision was taken by the Athens Court of Appeal (7/2016), which allowed the public auctioning of the shares and appointed a public notary to perform the auction (in the hands of the ATHEX as a third party). A lawsuit dated 08.01.2016 was notified to the Company for the recognition of the non‐existence of the Arbitration Decision 21/2005, which was scheduled to be heard on 03.11.2016 at the Athens Court of Appeal, but ultimately resigned from it.
The option to abandon the public auction of the shares was finally approved, due to the significant dilution of the stake of A.P. and A.P. on the back of share capital increases which they did not participate in. Subsequently, a second action was filed to certify the recognition of non‐existence (not invalidity) of arbitration decision #21/2005, of similar content to the request of the first action, the application of which was resigned. The second action was discussed before the Athens Court of Appeal on 21.09.2017 and is reasonably expected to be rejected. Prior to this second lawsuit, ATHENA SA removed the existing foreclosure of the A.P. residence because there was a fear of being overthrown due to the fact that a year had passed since its imposition without being auctioned. To this extent, it imposed a new foreclosure, the relevant auction being set for 24.01.2018. An objection was brought against this foreclosure, which was tried on 13.03.2018 without, so far, any sign of application for suspension of the execution of the enforcement procedure, which implies that there is no obstacle to its enforcement. Though no official documents are available, it is speculated that A. and A.P. appealed against the decision of the Lower Court of Athens, which rejected their first action. However, this action was aimed at invalidating an enforcement which is no longer pursued, since ATHENA SA removed its application for foreclosure, therefore rendering this action groundless. We are awaiting the decisions on the second action against the foreclosure which was tried on 13.03.2018, as well as the appeal against the non‐existence of the arbitration decision which was tried on 21.09.2017. A new electronic auction successfully took place on 06.06.018, with a starting bid price of €1,930,000, resulting in the Company receiving its proportion according to lenders table in October 2018. More acts of the enforcement procedure on other assets are under way, hoping to receive the highest amount possible towards the claim.
The Company will continue its efforts to collect the remaining amount due by proceeding with the sale of other properties of the P family. Αfter the death of A.P. the progress of the execution is frozen, until the identity of his heirs is revealed.
(b) A l f h C i ATHENS MICHANIKI ( AVAX SA f h l f MICHANIKIS SA b AVAX SA) i h G k S f h j Appeal ofthe Consortium ‐ MICHANIKI (now AVAX SA after the replacement ofMICHANIKIS SA by AVAX SA) against the Greek State for the project "Extension of the PATHE axis in the section Skarfia ‐ Lamia ‐ Raches". The appeal was discussed on 7.5.2014 and a decision was issued (sub number 3329/2014) accepting the appeal amounting to € 22,291,987 plus VAT. An appeal was filed against the decision by the Greek State which was heard in the State Council on 25.11.2019. The decision of the Court of Appeal was overturned by the State Council in favor of the State for lack of reasoning and was referred to the Administrative Court of Appeal of Piraeus, which on 14.1.2021 rejected the appeal with decision 466/2021.
The company has filed an appeal against this decision and its determination is expected. According to the lawyers, the application is sufficiently supported, although in any case the outcome of the case is subject to a judicial decision and a decision of the competent courts. In view of the new data, the company wrote off € 22.3 million from receivables from contractual assets (construction contracts), as these amounts were not invoiced. In this way, the turnover was affected by € 22.3 million and the result after taxes by € 19.1 million. This amount is not taken into account in the calculation of EBITDA, because it is not a write‐off of invoiced receivables.
(c) Lawsuit of ATHENA SA (now AVAX SA) against PPC (Project "Atherinolakkos") for which an expert opinion was ordered which determined the amount of € 6,031,637 on 17.9.2020. This lawsuit was accepted in favor of ATHINA for the amount of € 4,757,158 plus interest, beginning in December 2009, and which to date amount to € 5,400,000. The deadline for the appeal is already running and according to the lawyers, if it is exercised by PPC, there is no room for acceptance of the appeal. Therefore for this amount a relevant claim has been recognized through contractual assets (construction contracts).
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Cash in hand | 133,098 | 140,495 | 99,051 | 98,689 |
| Cash at bank | 50,058,514 | 50,376,554 | 37,881,624 | 37,233,033 |
| 50,191,612 | 50,517,050 | 37,980,675 | 37,331,722 | |
| 7a. Restricted Cash Deposits | ||||
| Restricted Cash Deposits (Non‐current) | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 |
| Restricted Cash Deposits (Current) | 36,184,259 | 32,745,107 | 30,488,051 | 28,895,771 |
| Balance of Restricted Cash deposits | 56,184,259 | 52,745,107 | 50,488,051 | 48,895,771 |
| Balance of Cash and cash equivalent | 106,375,871 | 103,262,157 | 88,468,726 | 86,227,493 |
For the Group Restricted cash deposits come from the branch of parent company in IRAQ in the amount of € 50,488,051 and from Volterra in the amount of € 5,696,208. In the company the restricted cash desposits of €50,488,051 come from deposits of \$ 60,000,000.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Trade payables | 171,482,072 | 170,885,768 | 130,427,470 | 129,610,222 |
| Advances from clients | 129,181,216 | 114,154,236 | 126,832,086 | 112,962,596 |
| Other current payables | 116,692,266 | 136,249,229 | 118,556,118 | 122,802,390 |
| 417,355,554 | 421,289,233 | 375,815,674 | 365,375,208 |
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | ||
| Contractual assets | 167,023,529 | 159,161,574 | 166,571,707 | 158,655,614 | |
| Contractual obligations | 645,055 | 724,773 | 587,146 | 666,864 | |
| 166,378,474 | 158,436,801 | 165,984,561 | 157,988,750 |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Short term debentures payable in the | ||||
| following 12 months | 49,621,739 | 47,874,986 | 42,799,278 | 43,977,244 |
| Short term loans | 58,062,573 | 48,217,200 | 49,432,574 | 38,325,395 |
| 107,684,313 | 96,092,185 | 92,231,852 | 82,302,640 |
According to Group and Company Financial Statements for the period 1.1‐30.6.2021, both the Company and the Group meet the financial ratios regarding liquidity,capital adequacy and profitability, as they are currently stand, with the excemption of few that have been granted waiver with amendements on the bondholders' limits.
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | ||
| Long term debentures | 424,986,262 | 457,831,274 | 370,310,514 | 404,243,358 | |
| Long ‐term loans | 2,185,500 | 3,186,546 | 2,185,500 | 2,185,500 | |
| 427,171,762 | 461,017,820 | 372,496,014 | 406,428,858 |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Current liabilities | 7,346,862 | 8,027,512 | 4,562,360 | 4,545,046 |
| Non current liabilities | 49,115,455 | 49,711,185 | 23,510,836 | 24,646,182 |
| Total lease liabilities | 56,462,317 | 57,738,697 | 28,073,196 | 29,191,228 |
On 29/05/2020, the company sold the owned properties in Amarousiou‐ Halandriou 16 & 29, which had a book value of € 33.75 million, compared to € 34 million in a real estate investment company. Following this, the company entered into a lease agreement with the same company for the specific properties, for a monthly rent of € 190 thousand (€ 2,279 million per year). The lease term is 12 years and ends on 28/05/2032. According to IFRS 16, the specific transaction concerns sale and leaseback above the fair value of the real estate. During the sale, on 29/5/2020 of the properties, the company transferred from the fair value reserves € 7.8 million, which concerned these properties, directly to the retained earnings, and not through the Income Statement. As at 31/12/2020 the company recognized € 20.13 million right of use assets, € 19.7 million lease liabilities and € 240 thousand financial liability. For the period ended 30/06/2021 the Right of use of Assets amounted to € 19.24 million, the lease liabilities to € 19.36 million and the financial liability to € 0.236 million.
Below is an analysis of the change in liabilities arising from financing activities as reflected in the cash flow statement.
| GROUP | |||||
|---|---|---|---|---|---|
| Long Term Bond Loan Liabilities |
Short‐term Loan Liabilities |
Total | |||
| 01.01.2021 | 461,017,819 | 96,092,185 | 557,110,004 | ||
| Non cash flow | 2,447,326 | 2 | 2,447,328 | ||
| Cash flow Bond Loan Liabilities payable in the next 12 |
(34,546,630) | 9,845,373 | (24,701,257) | ||
| months | (1,746,753) | 1,746,753 | ‐ | ||
| Effect of leasing IFRS 16 | ‐ | ‐ | ‐ | ||
| Transfers | ‐ | ‐ | ‐ | ||
| 30.06.2021 | 427,171,762 | 107,684,313 | 534,856,075 |
| COMPANY | ||||||
|---|---|---|---|---|---|---|
| Long Term Bond Loan Liabilities |
Short‐term Loan Liabilities |
Total | ||||
| 01.01.2021 | 406,428,858 | 82,302,640 | 488,731,498 | |||
| Non cash flow | 1,927,421 | ‐ | 1,927,421 | |||
| Cash flow Bond Loan Liabilities payable in the next 12 |
(37,038,231) | 11,107,178 | (25,931,053) | |||
| months | 1,177,966 | (1,177,966) | ‐ | |||
| Effect of leasing IFRS 16 | ‐ | ‐ | ‐ | |||
| Transfers | ‐ | ‐ | ‐ | |||
| 30.06.2021 | 372,496,014 | 92,231,852 | 464,727,866 |
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | ||
| Other provisions | 29,545,008 | 28,632,469 | 27,672,153 | 26,771,750 | |
| Other Non‐current liabilities | 16,927,976 | 7,253,668 | 360,175 | 460,175 | |
| 46,472,983 | 35,886,137 | 28,032,328 | 27,231,925 |
There are pending court cases and arbitrations regarding disputes of contractual works and other issues, against the companies of the Group. A provision of € 18,191 thousand has been formed to cover possible damage from pending court cases.
On a periodic basis, the Management of the Group examines the stage at which each important case is located and evaluates the possible financial risk based on the opinion of its legal advisors. If the potential loss from any claims and legal cases is considered probable and the relevant amount can be estimated reliably, the Group Management recognizes a provision for the estimated loss. Management's judgment is required to a significant degree both to determine the probability and to determine the degree to which the risk can be reliably assessed.
When additional information becomes available, the Group's Management reviews any contingent liabilities and lawsuits and may revise the relevant estimates. Such revisions to the estimates of the contingent liability may have a material effect on the financial position and results of the Group.
For lawsuits the outcome of which cannot be predicted at this stage, no provision has been made in the financial statements. However, it is estimated that any amounts awarded will not substantially change the Group's financial position.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 30.06.2020 | 30.06.2021 | 30.06.2020 | |
| Income tax | (3,091,728) | (348,689) | (3,325,086) | (312,006) |
| Deferred tax | 1,364,092 | 4,678,946 | 474,486 | 3,759,607 |
| (1,727,636) | 4,330,258 | (2,850,600) | 3,447,601 |
The tax rate of the Company according to art. 58 Law 4172/2013, as amended by art. 120 of Law 4799/2021 (Government Gazette AD78 / 18.05.2021) in effect, amounts to 22%.
The change (reduction) of the deferred tax receivables in Group and Company, due to the effect of the reduction of the tax rate from 24% to 22% for the year 2021, amounts to € 871 thousand and € 659 thousand respectively.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Paid up share capital (30/06/2021: shares | ||||
| 144.321.516 of € 0.30 and 31/12/2020: 144.321.516 | ||||
| shares of € 0.30) | 43,296,455 | 43,296,455 | 43,296,455 | 43,296,455 |
| Share premium account | 146,651,671 | 146,651,671 | 146,651,671 | 146,651,671 |
| 189,948,126 | 189,948,126 | 189,948,126 | 189,948,126 |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Revaluation of participations and securities & of | ||||
| other assets | 6,651,864 | 6,522,293 | 8,391,323 | 8,371,051 |
| Cash Flow hedging | 3,520,629 | 2,730,220 | ‐ | ‐ |
| Regular and Other Reserves | 12,274,338 | 13,153,793 | 12,554,815 | 13,416,040 |
| 22,446,831 | 22,406,306 | 20,946,137 | 21,787,091 |
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Revaluation Reserves of Financial Instruments at fair | ||||
| value | 46,063,390 | 44,349,300 | 216,465,898 | 219,187,060 |
| 46,063,390 | 44,349,300 | 216,465,898 | 219,187,060 |
The Company has created a reserve from foreign profits of Law 4171/61 amounting to € 17,482,013, which is reflected separately from the Other Reserves for purposes of more detailed information.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Article 48 L.4172/2013 (tax exempt intra group | ||||
| dividends) | 235,005,368 | 193,726,214 | 235,005,368 | 193,726,214 |
| 235,005,368 | 193,726,214 | 235,005,368 | 193,726,214 |
For the purpose of a more detailed information, it is noted that retained earnings of €193,726,214 have been transferred to dividend reserves based on article 48 of L4172/2013, which concern dividend income (intragroup dividends exempt from tax). Accumulated retained earnings before the transfer amounted to losses of €128,135,180 against losses of € 321,861,394. Respectively retained earnings transfered for the period of 1.1 ‐ 30.06.2021 amount € 41,279,154.
| GROUP | COMPANY | |
|---|---|---|
| 30.06.2021 | 30.06.2021 | |
| Letters of Guarantee | 440,235,518 | 388,284,590 |
| Other memorandum accounts | 4,780,399 | 1,483,430 |
| 445,015,918 | 389,768,021 |
Mortgage amounting to € 52,077 thousand on Group property as well as € 15,397 thousand on Company property are used to secure the claims of bond banks for the issuance of bond loans. Dividends of concession companies as well as shares of some concession companies have been pledged. Furthermore, claims of performance guarantees, future claims from projects execution as well as legally disputed claims are also pledged.
The number of employees on 30/06/2021 in the Group was 2,358 people (compared to 2,186 on 31/12/2020) and at Company level amounts to 1,892 (compared to 1,680 on 31/12/2020). The number of employed personnel does not include the staff of the Joint Ventures in which the Group and the Company participate.
(a) Litigation against the Group is proceeding for labour accidents which took place during construction works by companies or joint ventures which the Group participates in. Given that the Group is insured against labour accidents, no significant impact from contingent adverse legal decisions is expected. Other litigation or arbitration cases as well as pending court or arbitration decisions do not expect to have a significant impact on the financial status or operation of the Group or the Company. As of 30.06.2021 total provisions have been made of € 18,191 mil.
(b)Regarding a case of arbitration for a project in Greece, a decision was issued on 30/3/2020 of the Arbitration Court (abroad) against the company, and concerns the amount of €5.5 mil., plus interest of €8.8 mil. plus extra €4.5 mil for arbitration costs and lawyers. The outcome of the case is considered uncertain at this stage, as it is pending before the Arbitration Court a lawsuit for annulment of a previous partial Decision, on which the Final Judgment of the Arbitration Court abroad was based. On 02.04.2020, the other party claimed the forfeiture of two letters of guarantee amounting to € 2.9 million which he had in his possession and which were paid in August 2020.
Pursuant to IAS 37 "Provisions for Contingent Liability", the Company has entered a provision of € 13.5 million after the payment of the amount covered by the letters of guarantee, taking into account the relevant negotiation that is in progress.
After out‐of‐court negotiations, an agreement was signed on 9.9.2021 for repayment of the remaining amount in 7 annual installments until 31.7.2027. The provision that has been made and concerns the present value of the liability covers the above liability
(c) A note on tax auditing is included in the Interim financial report.
(d) The Group has contingent liabilities in relation to banks, guarantees and other issues arising from its ordinary operations, which are not expected to yield any negative impact.
The Group is controlled by AVAX. The members of the Board of Directors and the related legal entities hold approximately 61% of the share capital of the Company, without any substantial change compared to the previous year, while the remaining approximately 39% of the shares are held by the public. Several transactions with affiliated companies are accounted for by the Company and its subsidiaries during the year. Sales and purchases from and to affiliated companies are made at the actual market prices.
Account balances shown at the end of the period are not covered by guarantees and are settled in cash. The Group did not enter a provision for doubtful receivables from affiliated companies, as until now the course of payments was without problems. Transactions between Group companies (intra‐group) are eliminated when consolidating their financial statements.
The following is a brief description of transactions with affiliated companies: (all amounts in € thousands)
| Group | 1.1.2021 ‐ 30.06.2021 | 30.06.2021 | ||
|---|---|---|---|---|
| Income | Expenses | Receivables | Payables | |
| AG.NIKOLAOS CAR PARK | 13 | ‐ | ‐ | ‐ |
| OLYMPIA ODOS OPERATIONS S.A. | 2,791 | ‐ | 390 | ‐ |
| OLYMPIA ODOS S.A. | 794 | ‐ | 229 | 1,234 |
| GEFYRA OPERATIONS S.A. | 37 | 0 | 23 | ‐ |
| GEFYRA S.A. | 4 | ‐ | 1 | ‐ |
| ATTIKA ROAD S.A | 2,051 | 107 | 941 | 13,636 |
| AEGEAN MOTORWAY S.A. | 3,151 | 0 | 237 | ‐ |
| MOREAS S.A. | 1,753 | ‐ | 178 | ‐ |
| SALONICA PARK S.A. | 8 | ‐ | 13 | ‐ |
| POLISPARK S.A. | 2 | ‐ | 1 | ‐ |
| ATHINAIKOI STATHMOI SA | 31 | ‐ | ‐ | ‐ |
| METROPOLITAN ATHENS PARK S.A. | ‐ | ‐ | 0 | ‐ |
| VIOENERGEIA S.A. | 1 | ‐ | 55 | ‐ |
| BONATTI J&P‐AVAX Srl | 67 | ‐ | 148 | 3 |
| ILIA WASTE MANAGEMENT (PPP) | 1 | ‐ | 4,562 | 10 |
| PYRAMIS S.A. | ‐ | 161 | ‐ | 518 |
| LIMASSOL MARINA LTD | ‐ | ‐ | 19,602 | ‐ |
| J&P (UK) LTD LONDON | ‐ | ‐ | ‐ | 31 |
| JCH SERVICES LTD | ‐ | ‐ | ‐ | 86 |
| JCH LTD | ‐ | ‐ | ‐ | 673 |
| 5Ν S.A. | ‐ | ‐ | 151 | ‐ |
| SC ORIOL REAL ESTATE SRL | ‐ | ‐ | 420 | ‐ |
| ENERSYSTEM FZE | ‐ | 5,218 | ‐ | 420 |
| CYCLADES ENERGY CENTRE S.A. | 1 | ‐ | 8 | ‐ |
| J/V J&P‐AVAX ‐ J&PARASKEVAIDES OV.LTD (JORDAN) | ‐ | ‐ | ‐ | 437 |
| JOINT VENTURES | 858 | ‐ | 21,336 | 6,079 |
| Executives and members of the Board | ‐ | 1,235 | ‐ | 739 |
| 11,562 | 6,722 | 48,296 | 23,866 |
| Company | 1.1.2021 ‐ 30.06.2021 | 30.06.2021 | ||
|---|---|---|---|---|
| Income | Expenses | Receivables | Payables | |
| ETETH SA | 47 | 52 | 692 | 6,930 |
| TASK AVAX SINGLE SHAREHOLDER SA | 35 | 669 | 1,398 | 3,540 |
| AVAX IKTEO S.A. | 4 | 1 | 11 | 444 |
| AVAX DEVELOPMENT SINGLE SHAREHOLDER SA | 159 | ‐ | 8,434 | ‐ |
| ATHENA CONCESSIONS S.A. | ‐ | ‐ | 25 | 41 |
| ERGONET | ‐ | ‐ | 49 | 1 |
| MONDO TRAVEL SA (UNDER LIQUIDATION) | ‐ | 0 | ‐ | 108 |
| ATHENS MARINA S.A. | 73 | ‐ | 79 | 270 |
| AVAX CONCESSIONS SINGLE SHAREHOLDER SA | 1 | ‐ | 73,066 | 20 |
| VOLTERRA S.A. | 144 | 294 | 384 | 728 |
| VOLTERRA K‐R S.A. | ‐ | ‐ | 2 | 122 |
| VOLTERRA LIKOVOUNI S.A. | ‐ | ‐ | 1 | ‐ |
| ILIOFANEIA S.A. | 6 | ‐ | ‐ | ‐ |
| AVAX & POWER TECHNOLOGIES CYPRUS LTD | ‐ | ‐ | 6 | ‐ |
| P.S.M. SUPPLIERS LTD | ‐ | ‐ | 1 | 1,942 |
| AVAX INTERNATIONAL LIMITED | ‐ | 47,668 | 1,225 | 18,566 |
| GAS AND POWER TECH DMCC | 103 | ‐ | 842 | ‐ |
| BONATTI J&P‐AVAX Srl | 66 | ‐ | 142 | ‐ |
| OLYMPIA ODOS OPERATIONS S.A. | 997 | ‐ | ‐ | ‐ |
| OLYMPIA ODOS CONCESSIONS S.A. | 371 | ‐ | 227 | 1,234 |
| GEFYRA OPERATIONS S.A. | 37 | ‐ | 23 | ‐ |
| ATTIKA ROAD S.A | 9,544 | 92 | 54 | 13,630 |
| AEGEAN MOTORWAY S.A. | 730 | 0 | 0 | ‐ |
| MOREAS S.A. | 830 | ‐ | ‐ | ‐ |
| POLISPARK S.A. | ‐ | ‐ | 1 | ‐ |
| METROPOLITAN ATHENS PARK S.A. | ‐ | ‐ | 0 | ‐ |
| VIOENERGEIA S.A. | 1 | ‐ | 55 | ‐ |
| ILIA WASTE MANAGEMENT (PPP) | 1 | ‐ | 4,562 | 10 |
| PYRAMIS S.A. | ‐ | 161 | ‐ | 518 |
| LIMASSOL MARINA LTD | ‐ | ‐ | 19,602 | ‐ |
| J&P (UK) LTD LONDON | ‐ | ‐ | ‐ | 31 |
| CYCLADES ENERGY CENTRE S.A. | 1 | ‐ | 7 | ‐ |
| J/V J&P‐AVAX ‐ J&PARASKEVAIDES OV.LTD (JORDAN) | ‐ | ‐ | ‐ | 437 |
| JOINT VENTURES | 858 | ‐ | 21,186 | 5,395 |
| Executives and members of the Board | ‐ | 495 | ‐ | 250 |
| 14,007 | 49,433 | 132,075 | 54,215 |
| (all amounts in € thousands) | ||||
|---|---|---|---|---|
| Group | 1.1.2020 ‐ 30.06.2020 | 31.12.2020 | ||
| Income | Expenses | Receivables | Payables | |
| AG.NIKOLAOS CAR PARK | 11 | ‐ | ‐ | ‐ |
| OLYMPIA ODOS OPERATIONS S.A. | 1,050 | ‐ | 359 | ‐ |
| OLYMPIA ODOS CONCESSIONS S.A. | 493 | ‐ | 122 | 1,201 |
| GEFYRA OPERATIONS S.A. | 41 | 1 | 28 | ‐ |
| GEFYRA S.A. | ‐ | ‐ | 1 | ‐ |
| ATTIKA ROAD S.A | 188 | 86 | 929 | 8,406 |
| AEGEAN MOTORWAY S.A. | 1,872 | 1 | 26 | 198 |
| MOREAS S.A. | ‐ | ‐ | 180 | 5 |
| SALONICA PARK S.A. | 8 | ‐ | 13 | ‐ |
| POLISPARK S.A | ‐ | ‐ | 1 | ‐ |
| ELIX S.A. | ‐ | ‐ | 1 | ‐ |
| ATHINAIKOI STATHMOI SA | 21 | ‐ | ‐ | ‐ |
| VIOENERGEIA S.A. | 1 | ‐ | 174 | ‐ |
| BONATTI J&P‐AVAX Srl | 469 | ‐ | 300 | ‐ |
| ILIA WASTE MANAGEMENT (PPP) | 181 | ‐ | 4,565 | ‐ |
| PYRAMIS S.A. | ‐ | ‐ | ‐ | 582 |
| LIMASSOL MARINA LTD | ‐ | ‐ | 21,784 | ‐ |
| J&P (UK) LTD LONDON | ‐ | ‐ | ‐ | 31 |
| JCH SERVICES LTD | ‐ | ‐ | ‐ | 72 |
| JCH LTD | ‐ | ‐ | ‐ | 673 |
| 5Ν S.A. | ‐ | ‐ | 159 | ‐ |
| SC ORIOL REAL ESTATE SRL | ‐ | ‐ | 431 | ‐ |
| ENERSYSTEM FZE | ‐ | 4,927 | 857 | ‐ |
| CYCLADES ENERGY CENTRE S.A. | ‐ | ‐ | 1 | ‐ |
| J/V J&P‐AVAX ‐ J&PARASKEVAIDES OV.LTD (JORDAN) | 47 | ‐ | ‐ | 437 |
| JOINT VENTURES | 940 | ‐ | 18,040 | 4,149 |
| Executives and members of the Board | ‐ | 2,587 | 120 | 610 |
| 5,322 | 7,601 | 48,091 | 16,363 |
| Company | 1.1.2020 ‐ 30.06.2020 | 31.12.2020 | ||
|---|---|---|---|---|
| Income | Expenses | Receivables | Payables | |
| ETETH SA | 86 | 12 | 11,449 | 6,957 |
| TASK AVAX SINGLE SHAREHOLDER SA | 148 | 810 | 1,364 | 3,390 |
| AVAX IKTEO S.A. | ‐ | 1 | 6 | 420 |
| GLAVIAM L.T.D | 2 | ‐ | ‐ | ‐ |
| AVAX DEVELOPMENT SINGLE SHAREHOLDER S.A | 21 | ‐ | 7,541 | 3 |
| ATHENA CONCESSIONS S.A. | 1 | ‐ | 25 | 41 |
| ERGONET | 6 | ‐ | 43 | 1 |
| MONDO TRAVEL SA (UNDER LIQUIDATION) | 2 | ‐ | 32 | 270 |
| ATHENS MARINA S.A. | 80 | ‐ | 1 | ‐ |
| AVAX CONCESSIONS SINGLE SHAREHOLDER SA | ‐ | ‐ | 73,064 | 20 |
| VOLTERRA S.A. | 44 | 236 | 205 | 450 |
| VOLTERRA K‐R S.A. | ‐ | ‐ | 2 | 122 |
| VOLTERRA LIKOVOUNI S.A. | 3,677 | ‐ | 407 | ‐ |
| ILIOFANEIA S.A. | 3 | ‐ | ‐ | ‐ |
| AVAX & POWER TECHNOLOGIES CYPRUS LTD | ‐ | ‐ | 5 | ‐ |
| P.S.M. SUPPLIERS LTD | 3,598 | ‐ | 2,212 | 2,090 |
| AVAX INTERNATIONAL LIMITED | 1,162 | 63,958 | 1,200 | 16,176 |
| GAS AND POWER TECH DMCC | ‐ | ‐ | ‐ | 839 |
| BONATTI J&P‐AVAX Srl | 411 | ‐ | 296 | ‐ |
| OLYMPIA ODOS OPERATIONS S.A. | 1,007 | ‐ | ‐ | ‐ |
| OLYMPIA ODOS CONCESSIONS S.A. | 486 | ‐ | 121 | 1,201 |
| GEFYRA OPERATIONS S.A. | 41 | ‐ | 28 | ‐ |
| ATTIKI ODOS S.A | 12,737 | 75 | ‐ | 8,306 |
| AEGEAN MOTORWAY S.A. | 1,872 | 1 | 1 | ‐ |
| ATHINAIKOI STATHMOI SA | 1 | ‐ | ‐ | ‐ |
| MOREAS S.A. | ‐ | ‐ | 1 | ‐ |
| POLISPARK S.A | ‐ | ‐ | 1 | ‐ |
| ELIX S.A. | ‐ | ‐ | 1 | ‐ |
| VIOENERGEIA S.A. | 1 | ‐ | 174 | ‐ |
| ILIA WASTE MANAGEMENT (PPP) | 181 | ‐ | 4,565 | ‐ |
| PYRAMIS S.A. | ‐ | ‐ | ‐ | 582 |
| LIMASSOL MARINA LTD | ‐ | ‐ | 21,779 | ‐ |
| J&P (UK) LTD LONDON ( ) |
‐ | ‐ | ‐ | 31 |
| J/V J&P‐AVAX ‐ J&PARASKEVAIDES OV.LTD (JORDAN) | 47 | ‐ | ‐ | 437 |
| JOINT VENTURES | 940 | ‐ | 17,894 | 3,466 |
| Executives and members of the Board | ‐ | 417 | ‐ | 244 |
| 26,554 | 65,510 | 142,418 | 45,044 |
75
On 11.10.2018, it was announced that international contractor J&P (Overseas) Limited, incorporated in Guernsey, filed for liquidation. Given that the Company participated in four joint venture projects with J&P (Overseas) Limited in Jordan and Qatar, it was necessary to review the respective contracts with the clients and banks involved in these projects. The Company made, and still does, every effort to continue and complete these projects (except the two road projects in Qatar that have been completed) in the most technically perfect way, to ensure the Company's future presence in the construction market of the wider Arab world as well as its access to the local banking system.
A detailed report on this matter may be found in the Report of the Board of Directors for the Annual Financial Report 2018, under the "Important post balance sheet date Developments & Events" section.
More specifically, the status of each project is as follows:
The projects have been completed.
AVAX ME was fully integrated in the Group's Financial Statements of 30/06/2019, and immediately affected its financial figures as it essentially replaced the J&P (Overseas) Ltd group, which had already been liquidated to ensure the execution of local projects, most notably the Qatar Foundation Stadium, which will host the 2022 World Cup.
The QFS project was a joint venture of the Company and subsidiaries of J&P (Overseas) Ltd that went under the control of AVAX ME, therefore the Company immediately increased its participation in the Project. The rest of the projects acquired were of large size E/M subcontracts for third parties in Qatar.
Significant loan liabilities and outstanding project balances were initially recognized during the integration process. However, the development of the liquidation of J&P (Overseas) Ltd worsened the financial statements of the Group. A relevant report has been made in the Company's Informatial memorandum on 20.01.2020, where it was mentioned that the inability to collect receivables from projects totaling approximately \$ 140m. created conditions of temporary cash flow constraints for which the Company was considering since the end of 2019 various possible actions, including discussions with the local partner Fahad Trading W.L.L. (who owned 51%), for full acquisition of these companies.
Eventually, due to the continuous deterioration of cash flow, the Company proceeded with this solution, i.e. idecided to sell these companies to the local partner with whom a draft contract of sale was made. Specifically, according to the draft contract of sale, the Group of companies of AVAX SA. will have to pay as compensation for the sale to the local partner an amount of € 29.4m. (QAR 120m.), for which a provision has already been included in the Financial Statements of 31.12.2019 and which will be settled by a payment of € 21.0 m. from AVAX SA, while the remaining amount of € 8.4m. will be available for participation of AVAX SA to the share capital increase of "AVAX INTERNATIONAL LIMITED" (100% subsidiary of AVAX SA), which will be paid as a sale compensation for the sale of AVAX ME subsidiaries in Qatar compensation for the sale of AVAX ME subsidiaries in Qatar.
The local partner Fahad Trading WLL, has fully taken over the management of the aforementioned projects since the beginning of 2020, has the full and exclusive communication with the banks, t the customers, and also the receipts and payments of the project. As a result, the companies Conspel Qatar WLL and J&P Qatar WLL as well as the project 'Education City Stadium' (according to the 24% share corresponding to AVAX SA) are not included in the financial statements of the Group.
The aforementioned companies and the projects they carry out (including the Education City Stadium in which AVAX participated by 24%) are included in the sale agreement between the AVAX Group and the local partner. This sale agreement, for which the payment schedule of the amount of QAR 120m has been finalized (Approximately € 29.4m), has not been signed to date, with alleged reasons mainly related to the spread of the COVID‐19 pandemic. The fact that it must be endorsed by the bank (Arab Bank), because we believe that it is sought through it and final negotiation with the bank that finances the projects of Conspel Qatar WLL, we consider to be the main reason for the delay. In any case, given that the project of 'Education City Stadium' is practically completed, we estimate that the recognized provisions are € 29.4m. are sufficient to cover any damages that may arise in the event of non‐implementation of the sales agreement.
The project concerns the upgrading of the baggage handling system at the international airport of Queen Alia in the capital city of Amman, which is effectively an extension of the oldest contract signed with the government of the country for the construction of the state‐of‐the‐art airport. The contract was signed on 12.04.2018 representing a value of €24.8 million for our Company, corresponding to a 50% stake.
AVAX SA agreed to assume the continuation of the project and purchase used assets of J&P Overseas Ltd (office space and limited mechanical equipment exclusively employed in the project), according to the appraisal conducted by specialists on behalf of AVAX and the liquidator of J&P (Overseas) Ltd). The signing of the deal between the liquidators, banks and the Concession lending banks has been delayed because of the requirement to secure the consent of ARAB Bank, which had issued the letters of guarantee for the initial project, which is concluded and is currently in its defect liability period. This is the responsibility of AVAX, which also performs the extention of the contract. No forfeiture of guarantee is expected that could result to any damage for the bank. Since the liquidators asked for the Novation Agreement to be also signed by the Project Owner, the Project Owner announced that he had not received the approval from the lenders of the concession project. Therefore, the Novation Agreement has not been signed but the project is being carried out normally and we are collecting normally from the customer.
The delay is related to the ceding to ARAB Bank of J&P (Overseas)Ltd's share in revenues. Nevertheless, a final agreement has been reached for ARAB Bank to grant its consent. Since the liquidators asked for the Novation Agreement to be also signed by the Project Owner, the Project Owner announced that he had not received the approval from the lenders of the concession project. Therefore, the Novation Agreement has not been signed but the project is being carried out normally and we are collecting normally from the customer.
Bank performance bonds and letters of guarantee for the additional works, currently amounting to €12.4 million, are issued by AVAX SA. Letters of guarantee amounting to €9.3 million have been returned.
The project has been completed and is in the maintenance period which ends in August of 2022.
Below are presented the fair values of assets and liabilities of the Group and the Company, which are presented in the statement of financial position:
| 30.06.2021 (amounts in € '000) | GROUP | COMPANY | ||
|---|---|---|---|---|
| Assets | Fair Value | Fair Value | Fair Value Hierarchy |
|
| Tangible Fixed Assets (Land / Buildings) Right of Use Assets |
19,681 49,726 |
15,569 19,448 |
2 2 |
|
| Investment Property Financial assets at fair value through OCI Work in Progress |
12,338 107,138 3,135 |
3,359 367,528 757 |
2 3 2 |
|
| 31.12.2020 ( amounts in € '000) | GROUP | COMPANY |
| Fair Value | |||
|---|---|---|---|
| Assets | Fair Value | Fair Value | Hierarchy |
| Tangible Fixed Assets (Land / Buildings) | 28,333 | 15,773 | 2 |
| Right of Use Assets | 50,778 | 20,306 | 2 |
| Investment Property | 12,523 | 3,359 | 2 |
| Financial assets at fair value through OCI | 103,993 | 392,324 | 3 |
| Work in Progress | 3,126 | 757 | 2 |
The administration estimated that the cash and short‐term deposits, customers, suppliers and other current liabilities approximate their carrying value, primarily because of their short maturities.
The Group and the Company use the following hierarchy to define and disclose the fair value of receivables and payables per valuation method:
Level 1: based on negotiable (non‐adjusted) prices in active markets for similar assets or liabilities.
Level 2: based on valuation techniques for which all data with substantial effect on the fair value are visible, either directly or indirectly, while also including valuation techniques with negotiable prices at less active markets for similar or equivalent assets or liabilities.
Level 3: based on valuation techniques utilising data with substantial effect on fair value, as opposed to apparent market data.
The fair value of financial assets and liabilities is the value at which an asset or liability could be traded in a current transaction between consenting parties, differing from the price of a forced liquidation or sale. The following methods and assumptions were used to calculate the fair values:
Investment property and tangible assets (land / buildings) were valued by independent auditors in 31.12.2020.
Financial assets available for sale (long‐term and other long‐term financial assets) of Level 3 mostly concern investments in concession companies. Valuation of the most important concession companies was carried out by independent auditors. The valuations were based on data from financial models approved by the concession companies and financing banks. The discount rate for 30.06.2021 ranges between 6,5% and 8,1%, proportionately to the stage of completion and the maturity rate of each concession project, and proportionately to the total risk calculated in Greece and abroad.
Valuation of financial assets available for sale through the income statement is conducted at current prices because those assets are listed and traded on organised markets in Greece and abroad.
The following are the most important events concerning the Group during the first half of 2021
The Annual General Meeting of Company shareholders held on 24.06.2021 decided a series of important changes in management bodies and committees.
More specifically, it elected a new Board of Directors, for a three‐year term to 23.06.2024, which convened and appointed its members as follows:
It also elected a new Audit Committee for a three‐year term to 23.06.2024, which convened and appointed its members as follows
• Christos Siatis, Chairman [Independent, Non Executive Board Member] • Aikaterini Pistioli, Member [Non Executive Board Member]
• Alexios Sotirakopoulos, Member [Independent, Non Executive Board Member]
Furthermore, a new joint Board members' Nomination and Remuneration Committee was launched, as per article 10, par.2 of Law 4706/2020, which convened and appointed its members as follows:
During the first half of 2021, the Group signed contracts for public & private projects, subcontracts and services totaling€62 million.
Through litigation, the Company achieved the reduction of the annual lease of Athens Marina, in which it holds a 99.84% stake, from €3 million to €2 million. This brought about a €13 million drop in long‐term debt, as the present value of the leases included in the loans decreased to €25 million in 2020 from €40 million in 2019. In addition, due to the above reduction, the amortization of the rights of use of Athens Marina from 2021 onwards will amount to €1,071 thousand per annum, compared to €1,624 thousand in 2020 and 2019, (ie a decrease of €553 thousand annually).
The Company set up an ESG / Sustainable Growth Committee, to take a systematic and in‐depth approach on the issue of sustainable growth, and improve the socio‐economic footprint caused to the economy and society by direct, indirect and induced actions and construction projects. The executives that make up the committee come from the departments of QSHE & Sustainability, Procurement, Human Resources, Investor Relations, Internal Audit, Corporate Communication, as well as the Banking Relations and Risk Management units of the Finance Department.
The Company signed on 01.02.2021 an annual contract with Piraeus SA for the special trading on its shares, to enhance their liquidity.
Annual contract extension of Psytallia Wastewater Treatment Centre In March 2021, the Athens Water Authority awarded a new annual extension of the contract for the operation and maintenance of the Psytallia Wastewater Treatment Centre, which was carried out by a consortium in which the Company participates. Another consortium, which our Company is a member of, participates in the Athens Water Authority tender held in 2019 for the operation and maintenance of the Psytallia Wastewater Treatment Centre for a 5‐year period. The decision on the final result of the competition is pending.
[see section "Important post balance sheet date Developments & Events" for more details]
The Greek economy returned to growth in 2021 following the crisis of the Covid‐19 pandemic. According to EUROSTAT estimates, the economic activity of Greece in the first quarter of 2021 increased by 5% in GDP, while the domestic construction sector in the first half of 2021 grew 3.3% compared to the corresponding half of 2020. The gradual lifting of restrictive measures due to extensive vaccination has positively affected the Greek economy and consequently the activities of the Group.
In Concessions, the gradual abolition of travel restrictions increased traffic on the Athens Ring Road, by 4% in the first half of 2021 compared to the corresponding half of 2020, leading to an increase in revenue. Based on available data, an increase is expected in the second half of the year. Normalisation of activities, along with the cash and reserves maintained at project level, loan liabilities are expected to be serviced within the stipulated time frame. The Management of the Group estimates that their value has not been affected at this stage.
In the Construction sector, there are still some delays observed in ongoing projects, while at the same time there are also delays in tendering procedures for the assignment of new projects. There are also increases in the cost of materials and transportation costs, which in the domestic market are dealt with through contractual price revisions, while abroad, where no price revisions are provided, any increases seep into production costs. Existing international projects are expected to be completed by 2021, therefore due to their advanced stage of completion, any impact of price increases on materials such as cement and iron will not be significant
In the Retail Market, as a Provider of Electricity and Gas, Volterra was called upon during the first six months of 2021 to manage the effects of the rapid increase in wholesale costs, a phenomenon that is observed throughout Europe, the structural changes brought by the launch of the Energy Exchange, in combination with the restrictions arising from the respective Procurement Code.
The increase in the prices of Natural Gas, a fuel which is used in the production of electricity, exceeds 120% while the same increasing trend is followed by the carbon dioxide (CO2) emission index. As a result of the above, the significant increase of the Purchase Price (+157% TEA June 2021 / June 2020). Also, the launch of the Energy Exchange increased the costs related to the Increase Accounts, costs that are borne by the supplier, while creating increased needs for cash flow as the requested energy in combination with the increased Clearing Price must be repaid on the same day.
Under the conditions mentioned above, which intensified in the second quarter of this year, the Procurement Code is an inhibiting factor in the immediate harmonization with the new data. Based on this, if the supplier does not have the consent of the consumer to adjust his charges, he is obliged to inform in writing and activate the new charges within sixty days from the date of notification. The above term in combination with the ever‐increasing volume of our customers (Industrial Customers, Small and Medium Enterprises and Home Customers) made it impossible for the immediate updating of prices to all customers and the results of the coordinated actions of the Company will be visible to the Company. of this year.
In the context of the support of businesses by the Greek Government, a reduction of liabilities in the real estate leases of the Group amounting to €1.3 mil for the first half of 2021 took place.
The spread of the Covid‐19 pandemic is not yet contained and will continue to affect the second half of 2021. Within 2021, measures were taken and intensified to protect staff and associates, both on construction sites and in offices of the Group companies. With a sense of responsibility, AVAX Group monitors any developments to respond appropriately at all levels to ensure the health of its employees and its smooth business operation, mainly with regards to cash flows and contractual obligations from the execution of projects.
After a long appeal process in the tender conducted by EYDAP in 2019 regarding the operation and maintenance of KELD for a period of 5 years, in August 2021 the Council of State decided that the only acceptable bid was submitted by the consortium Aktor‐ Avax‐ERGOTEM. So far, the technical bids have been opened, and the opening of the financial bids for the completion of the tender is pending.
During the third quarter of the year, the Group has signed a small number of low value projects contracts, as well as the contract for the construction of the first phase of Line 4 of the Athens Metro, and specifically the section Alsos Veikou ‐ Goudi, as head of consortium with a discount offer of 12.19% on a budget of € 1.8 billion. In addition, there are a number of projects of significant value that are going to be signed in the near future, sufficiently replenishing the outstanding balance of the Group as the overall pace of project execution accelerates.
The above Interim Condensed Financial Statements both for the Group and the Parent Company for the period January 1st 2021 to June 30th,2021, have been approved by the Board of Directors on27th of September, 2021.
| CHAIRMAN & | DEPUTY CHAIRMAN & | MANAGING DIRECTOR | GROUP CFO | CHIEF ACCOUNTANT |
|---|---|---|---|---|
| EXECUTIVE DIRECTOR | EXECUTIVE DIRECTOR |
| CHRISTOS JOANNOU | KONSTANTINOS | KONSTANTINOS MITZALIS | ATHENA | GEORGE |
|---|---|---|---|---|
| KOUVARAS | ELIADES | GIANNOPOULOS | ||
| I.D.No. 889746 | I.D.No. ΑI 597426 | I.D.No. AN033558 | I.D.No. 0000550801 | I.D.No. AI 109515 |
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