Metlen Energy & Metals — Interim / Quarterly Report 2016

Aug 3, 2016

According to 4/507/28.04.2009 resolution of Greek Capital Committee,

COMPANY PROFILE

Profit / (Loss) before tax, financial and investment results	1.340	(257)

Receivables	1.405	67.772

Continuing Operations Discontinuing Operations Total Continuing Operations Discontinuing Operations Total Auditing Company: GRANT THORNTON Sales Turnover 635.750 - 635.750 636.530 3.114 639.644 Type of Auditor's opinion: Unqualified opinion - emphasis of matters Gross profit / (loss) 82.895 - 82.895 113.690 188 113.878 Profit / (Loss) before tax, financial and investment results 66.430 (520) 65.910 91.243 (905) 90.338 Profit / (Loss) before tax 34.338 (529) 33.809 60.519 (925) 59.594 Less taxes (10.076) - (10.076) (14.883) - (14.883) Profit / (Loss) after tax (A) 24.262 (529) 23.733 45.636 (925) 44.711 Equity holders of the parent Company 12.966 (529) 12.437 33.751 (925) 32.826 Minority Interests 11.296 - 11.296 11.886 - 11.886 Other comprehensive income after tax (B) (13.014) - (13.014) 10.406 - 10.406 Total comprehensive income after tax (A) + (B) 11.249 (529) 10.720 56.042 (925) 55.118 Owners of the Company (4.839) (529) (5.368) 44.801 (925) 43.876 30/06/2016 31/12/2015 30/06/2016 31/12/2015 Minority Interests 16.088 - 16.088 11.242 - 11.242 Net profit after tax per share (in Euro/share) 0,1109 (0,0045) 0,1064 0,2887 (0,0079) 0,2808 THE COMPANY THE GROUP 1/1-30/06/2016 1/1-30/06/2015

Maroussi, 2 August 2016

THE PRESIDENT OF THE BOARD & CHIEF EXECUTIVE OFFICER THE CHIEF EXECUTIVE DIRECTOR GROUP FINANCE

EVANGELOS MYTILINEOS IOANNIS KALAFATAS

		Amounts in 000's €			Other comprehensive income after tax (B)	(13.014)	-	(13.014)	10.406	-	10.406
					Total comprehensive income after tax (A) + (B)	11.249	(529)	10.720	56.042	(925)	55.118
		THE GROUP	THE COMPANY		Owners of the Company	(4.839)	(529)	(5.368)	44.801	(925)	43.876
	30/06/2016	31/12/2015	30/06/2016	31/12/2015	Minority Interests	16.088	-	16.088	11.242	-	11.242
					Net profit after tax per share (in Euro/share)	0,1109	(0,0045)	0,1064	0,2887	(0,0079)	0,2808
Tangible Assets	1.083.432	1.070.375	9.624	9.746	Profit / (Loss) before tax, financial,
Intangible Assets	239.571	239.506	59	68	investment results, depreciation and amortization	100.942	(515)	100.427	118.697	(429)	118.268
Other non current assets	521.692	528.309	652.115	651.112
Inventories	149.171	239.276	-	11			THE COMPANY
Trade Receivables	495.321	470.014	241	85		1/1-30/06/2016	1/1-30/06/2015
Other Current Assets	427.484	351.924	73.184	44.833
Non current assets available for sale	-	-	-	-	Sales Turnover	-	7.333
Total Assets	2.916.672	2.899.404	735.223	705.855	Gross profit / (loss)	-	12
					Profit / (Loss) before tax, financial and investment results	1.340	(257)
EQUITY AND LIABILITIES					Profit / (Loss) before tax	2.091	5.776
Share Capital	113.643	113.643	113.408	113.408	Less taxes	1.534	1.871
Treasury stock reserve	-	-	-	-	Profit / (Loss) after tax (A)	3.624	7.647
Retained earnings and other reserves	846.694	850.714	374.539	370.916	Equity holders of the parent Company	3.624	7.647
Equity attributable to parent's Shareholders (a)	960.337	964.358	487.949	484.324	Minority Interests	-	-
Minority Interests (b)	277.479	265.980	-	-	Other comprehensive income after tax (B)	0	0
Total Equity (c) = (a) + (b)	1.237.815	1.230.338	487.949	484.324	Total comprehensive income after tax (A) + (B)	3.624	7.647
Long term Borrowings	442.614	404.278	5.250	-	Owners of the Company	3.624	7.647
Provisions and other long term liabilities	296.115	294.132	58.117	58.918	Minority Interests	-	-
Short term borrowings	366.839	323.258	50.430	24.375	Net profit after tax per share (in Euro/share)	0,0310	0,0654
Other short term liabilities	573.289	647.399	133.476	138.238	Profit / (Loss) before tax, financial,
Non current liabilities available for sale	-	-	-	-	investment results, depreciation and amortization	1.517	(86)
Total Liabilities (d)	1.678.857	1.669.066	247.274	221.531
TOTAL EQUITY AND LIABILITIES (c) + (d)	2.916.672	2.899.404	735.223	705.855

I.D. No ΑΒ649316/2006 I.D. No ΑΖ 556040/2008

I.D. No ΑΕ044243/2007 I.D. No Π 195231/1989

1. In June, MYTILINEOS Group and OTE Group announced a strategic partnership in the retail electricity market. In this framework, COSMOTE and Germanos stores enrich their customer services portfolio with electricity supply from PROTERGIA, the largest independent electricity producer in Greece. Meanwhile, PROTERGIA strengthens its points of sale and promotion network, making its products available across Greece through more than 450 COSMOTE and Germanos stores

		STATEMENT OF CHANGES IN EQUITY Amounts in 000's €				CASH FLOW STATEMENT Amounts in 000's €	THE GROUP	THE COMPANY
		THE GROUP	THE COMPANY				1/1-30/06/2016 1/1-30/06/2015	1/1-30/06/2016 1/1-30/06/2015
Equity at the beginning of the period (01.01.2016 and 01.01.2015	30/06/2016	31/12/2015	30/06/2016	31/12/2015	Operating activities
respectively) Total comprehensive income for the period after tax (continuing/	1.230.339	1.161.226	484.324	496.277	Profit before tax (continuing operations)	34.338	60.519	2.091	5.776
discontinuing operations)	10.720	55.118	3.624	7.647	Profit before tax (discontinuing operations)	(529)	(925)	-	-
Increase / (Decrease) in Share Capital	-	(11.576)	-	(11.692)	Adjustments for:
Dividends paid	(3.248)	(12.988)	-	-	Depreciation	34.517	27.930	177	171
Impact from acquisition of share in subsidiaries	-	-	-	-	Impairments	149	-	-	-
Treasury shares purchased	6	(3)	-	-	Provisions	(719)	(1.576)	-	(1.100)
Other movements from subsidiaries	-	-	-	-	Exchange differences	1.405	(572)	(405)	(2.008)
Changes in Equity from Sale of Subsidiary	-	(59)	-	-	Other Operating Results		- -	-	-
Treasury Stock Sales/Purchases	-	-	-	-	Results (income, expenses, gains and losses) of insting activities	1.392	(1.092)	(4.724)	(6.029)
Equity at the end of the period (30.06.2016 and 30.06.2015						26.136	26.296	3.974	(3)
respectively)	1.237.815	1.191.719	487.949	492.232	Interest expense Adjustments related to working capital accounts or to operating activities
					(Increase)/Decrease in stocks	89.448	(1.212)	11	-
		ADDITIONAL DATA AND INFORMATION			(Increase)/Decrease in trade receivables	2.105	155.113	2.815	3.442
					Increase / (Decrease) in liabilities (excluding banks)	(88.060)	(266.310)	(10.529)	3.183
1. Companies included in the consolidated financial statements with the corresponding participation of interest as well as the method of consolidation for the period 1/1-30/06/2016					Less:
are being presented in note 8.5 of the Interim Financial Statements.					Interest expense paid	(24.318)	(17.335)	(1.367)	(5.321)
					Income tax paid	(1.388)	(2.008)	-	(760)
2.The fiscal years that are unaudited by the tax authorities for the Company and the Group's subsidiaries are presented in detail in note 8.16 of the Interim financial statements. For the fiscal years 2012-2013, the Group					Cash flows from discontinuing operating activities	112	(536)	-	-
companies whose financial statements were audited by mandatory statutory auditor or audit firm, under the provisions in paragraph 5 of Article 82 of Law 2238/1994, received on 2013 and 2014 respectively, a Tax Compliance Certificate free of disputes. For fiscal year 2014, the tax audit has been carried out by the auditors are not expected to result in a significant variation in tax liabilities incorporated in the financial statements.					Cash flows from operating activities (a)	74.588	(21.709)	(7.958)	(2.650)
Said tax audit has been completed during 2015 and the tax certificates were distributed by the statutory auditors. For fiscal year 2015, the tax audit which is being carried out by the auditors is not expected to result in a					Investing activities
significant variation in tax liabilities incorporated in the financial statements.					(Acquisition ) / Sale of subsidiaries (less cash)		- -	-	-
					Purchases of tangible and intandible assets	(47.522)	(18.095)	(45)	(43)
3. The basic accounting policies in the consolidated balance sheet of 31 December 2015 have not been altered.					Acquisition of associates		- -	-	-
					Sale of tangible and intangible assets	1.264	132	-	-
4. Group's assets are pledged for an amount of 499,8 m as bank debt collateral.					Purchase of financial assets held-for-sale		- -	-	-
					Return of capital from Subsidiary		- -	-	-
5. The number of employees at the end of the current reporting period amounts for the Group to 1.886 and for the Company to 71. Accordingly, on 30/06/2015, amounted for the amounts for the Group to 1.808 and for					Sale of financial assets held-for-sale	3	3	-	-
the Company to 75.					Sale of financial assets at fair value through profit and loss		- 540	-	540
					Purchase of financial assets at fair value through profit and loss	(2.000)	(2.832)	-	-
6. Capital Expenditure for the period 01/01-30/06/2016 : Group €47.522 thousand and Company €45 thousand.					Grants received		- 773	-	-
					Interest received	587	1.627	12	53
					Cash received from loans to associates		- -	-	-
					Loans to / from related parties		- -	-	-
7. Related party transactions and balances for the reported period, according to I.A.S. 24 are as follows:					Dividends received		- -	5.078	12.988
Amounts in 000's €	THE GROUP	THE COMPANY			Cash flows from discontinuing investing activities		- -	-	-
Revenues	153	6.210			Other cash flows from investing activities	3	-	-	-
Expenses	2.390	3.569			Cash flows from investing activities (b)	(47.664)	(17.852)	5.045	13.537
Receivables	1.405	67.772			Financing activities
Liabilities	3.081	148.347			Proceed from issue of capital		- 115	-	-
Key management personnel compensations	8.578	1.365			Sale / (purchase) of treasury shares		- -	-	-
Receivables from key management personnel	-	-			Tax payments	6	(3)	-	-
Payables to key mananagement personnel	65	65			Proceeds from borrowings	116.872	90.583	10.200	-
					Loan repayments	(67.681)	(33.683)	(7.500)	-
8. In the Statement of Changes in Equity, the amounts included in the line "Total comprehensive income for the period after tax (continuing/ discontinuing operations)"					Dividends paid	(3.433)	(13.035)	-	-
for 30 June 2016 and 2015 are presented in the table below:					Payment of finance lease liabilities		- (11)	-	-
					Cash flow discontinuing financing activities		- -	-	-
	THE GROUP		THE COMPANY		Cash flows from continuing financing activities (c)	45.763	43.967	2.700	-
	30/06/2016	30/06/2015 30/06/2016	30/06/2015		Net (decrease) / increase in cash and cash	72.687	4.406	(213)	10.887
Net profit (loss) for the period	23.733	44.711	3.624 7.647		equivalents of the period (a) + (b) + (c) Cash and cash equivalents at beginning of period	200.859	313.428	1.249	786
Exchange differences on translation of foreign operations	(9.786)	9.361	- -		Foreign exchange differences	(494)	18	0	-
Cash Flow hedging reserve	(4.548)	1.045	- -		Net cash at the end of the period	273.053	317.853	1.036	11.674
Actuarial gain/ (losses)	1	-	- -
Held for sale Financial Assets	-	-	- -

	30/06/2016	THE GROUP 31/12/2015	THE COMPANY 30/06/2016	31/12/2015	Operating activities
Equity at the beginning of the period (01.01.2016 and 01.01.2015 Total comprehensive income for the period after tax (continuing/
Increase / (Decrease) in Share Capital	-	(11.576)	-	(11.692)	Adjustments for:
Equity at the end of the period (30.06.2016 and 30.06.2015

20.Possible differences in totals are due to rounding.

IOANNIS MYTILINEOS ANASTASIOS DELIGEORIS THE EXECUTIVE DIRECTOR GROUP

1. Subsidiary METKA S.A. announced the signature of a new EPC contract with Amandi Energy Limited for a new power plant in Ghana that took place in London on 11 March 2016. The project will be executed by METKA in consortium with General Electric, and includes the engineering, procurement, construction and commissioning of a 192MW combined cycle power plant in Takoradi. The plant will be implemented with capability to operate on both natural gas and light crude oil, and will utilize the latest advanced version of General Electric's well proven 9E gas turbine. The project will be constructed in 28 months. The contract value for METKA is approximately \$174 million.

16.On 16/6/2015, the subsidiary company METKA S.A. signed the fifth contract for the construction of Patriot PAC-3 complexes for Raytheon Company, destined for the government of Qatar. The contractor is INTRACOM Defense Electronics through an agreement with Raytheon Company/IDS (Integrated Defense Systems) and the project is the construction and delivery of 44 semi-trailers and 34 launcher platforms. The total contractual value is \$ 38,6 million and final deliveries are anticipated in 2018.

THE VICE-PRESIDENT OF THE BOARD FINANCIAL CONTROLLER

17.- In April 2016, the 100% Group's subsidiary company ALUMINIUM OF GREECE S.A., has acquired the 100% of the subsidiary company REYCOM RECYCLING (REYCOM) in Romania.

1. Regarding the the transitional mechanism for the Capacity Remuneration an analysis is made on note 8.6 of the Interim Financial Statements.

	THE GROUP		THE COMPANY
	30/06/2016	30/06/2015	30/06/2016	30/06/2015
Actuarial gain/ (losses)	1	-	-	-
Held for sale Financial Assets	-	-	-	-
Gain/(Loss) from sale of Treasury Stock	-	-	-	-
Deferred tax of cash flow hedging	1.319	-	-	-
Change in reserves from tax rate alteration Total comprehensive income for the period after tax (continuing/	-	-	-	-
discontinuing operations)	10.720	55.118	3.624	7.647

10.Regarding the briefing note that ADMIE sent to the subsidiary company Aluminium of Greece, an analysis is made on note 8.6 of the Interim Financial Statements. 18. The emphasis matter of the Independent Auditor's report concern the explanatory note 8.17 of the Interim Financial Statements. Specifically, Group's subsidiary company ALUMINIUM of GREECE S.A.I.C. (ALUMINIUM) and its supplier PUBLIC POWER CORPORATION S.A., have not yet reached to an agreement for the pricing of electricity for the term beginning on 1st January and onwards. The finalization of the negotiations between the two parties may result in ALUMINIUM of GREECE recognizing assets or liabilities the amount of which currently cannot be measured reliably.

11.Regarding the power purchase agreement between ALUMINIUM OF GREECE and PPC a reference is made on note 8.6 of the Interim Financial Statements.

1. The shareholder of the Romanian company "REYCOM RECYCLING S.A." ("Reycom") and the Board of Directors of the Greek company "ALUMINIUM OF GREECE INDUSTRIAL AND COMMERCIAL SOCIETE ANONYME ICSA" ("AoG") respectively resolved on 30/05/2016 the merger of Reycom and AoG by way of AoG (hereinafter the "Absorbing Company") absorbing Reycom (hereinafter the "Absorbed Company").

Τhe Cross Border Merger will strengthen the Absorbing Company offering AoG the opportunity to diversify its sources of revenue as well as its exposure to commodity prices which is currently concentrated on Aluminium. By being able to produce Zn and Pb alongside Aluminium, Absorbing Company will diversify its sources of revenue at a time that the price of its current product (Aluminium) is experiencing increased pressure in the commodity markets. At the same time, AoG will be able to obtain valuable know-how in the recycling of metallurgical waste thus enhancing its knowledge-base on environmental compliance in all markets in which Absorbing Company operates.

12.There are other contingent liabilities against the Group, amounting to 4,03 m€, for which no provision is formed on the results since the outcome of these is deemed uncertain. Moreover there are Groups' claims against third parties amounting to 70,42 m€. (Note 8.17 of the Interim Financial Statements)

13.There is a pending legal claim of the parent company METKA from a supplier of € 16,8 million which relates to compensation for poor performance. The defendant company has filed a declaratory action claiming that it has no obligation to pay the Company the above amount. The Company shall acknowledge in its results the amount that may be assigned to it at the time of a positive outcome and recovery.

8. In the Statement of Changes in Equity, the amounts included in the line "Total comprehensive income for the period after tax (continuing/ discontinuing operations)"

1. On 07/06/2016, the 50% Group's subsidiary company, METKA S.A., founded METKA POWER WEST AFRICA LIMITED in Nigeria, in which she's a shareholder of 100%. The incorporation of the foresaid company in the consolidated financial statements was made using the full consolidation method. Since the newly founded company hasn't started its operation yet, it has no contribution on the Group's Consolidated Financial Results

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CHANGES IN EQUITY

The reader who aims to form a full opinion on the company's financial position and results, must access the company's website where the financial statements prepared according to the International Financial Reporting Standards and the Auditor's Report, when this is required, are published. Indicatively, the reader can visit the company's web site www.mytilineos.gr, where the above financial statements are posted.

INCOME STATEMENT

Company's No 23103/06/Β/90/26 in the register of Societes Anonymes

5-7 Patroklou Str. Maroussi

FIGURES AND INFORMATION FOR THE FISCAL YEAR OF 1 JANUARY 2016 UNTIL 30 JUNE 2016

The figures presented below aim to give summary information about the financial position and results of MYTILINEOS S.A. and its subsidiaries.