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Metlen Energy & Metals

Quarterly Report Mar 28, 2017

2755_10-k_2017-03-28_2811c461-81b8-46f8-b1c0-13c44550e598.pdf

Quarterly Report

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

COMPANY PROFILE

Interest received 1.608 1.825 1 3 Cash received from loans to associates - - - - Loans to / from related parties - - - -

Supervising Authority: Amounts in 000's € Company website: www.mytilineos.gr Board of Directors: Continuing Operations Discontinuing Operations Total Continuing Operations Discontinuing Operations Total Sales Turnover 1.246.086 4.042 1.250.128 1.382.873 4.004 1.386.877 Date of approval of the Financial Statements by the Board of Directors: 27 March 2017 Gross profit / (loss) 200.402 (878) 199.524 226.520 (1.572) 224.948 The Certified Auditor: Emmanouil Mihalios, Athanasios Xynas Profit / (Loss) before tax, financial and investment results 148.294 (2.584) 145.710 174.247 (4.675) 169.572 Auditing Company: GRANT THORNTON Profit / (Loss) before tax 85.276 (2.630) 82.646 108.791 (4.713) 104.078 Type of Auditor's opinion: Unqualified opinion - emphasis of matters Less taxes (21.407) - (21.407) (28.379) - (28.379) Profit / (Loss) after tax (A) 63.869 (2.630) 61.240 80.412 (4.713) 75.699 Equity holders of the parent Company 36.796 (2.630) 34.166 52.261 (4.713) 47.548 Minority Interests 27.074 - 27.074 28.151 - 28.151 Other comprehensive income after tax (B) (5.070) - (5.070) 18.154 - 18.154 Total comprehensive income after tax (A) + (B) 58.800 (2.630) 56.170 98.566 (4.713) 93.854 Owners of the Company 26.795 (2.630) 24.165 71.351 (4.713) 66.638 31/12/2016 31/12/2015 31/12/2016 31/12/2015 Minority Interests 32.006 - 32.006 27.215 - 27.215 ASSETS Net profit after tax per share (in Euro/share) 0,3147 (0,0225) 0,2922 0,4470 (0,0403) 0,4067 Tangible Assets 1.073.255 1.070.375 9.529 9.746 Profit / (Loss) before tax, financial, Intangible Assets 243.034 239.506 159 68 investment results, depreciation and amortization 221.620 (1.824) 219.796 234.103 (3.265) 230.838 Other non current assets 535.104 528.309 649.970 651.112 Inventories 257.409 239.276 - 11 Trade Receivables 590.578 470.014 264 85 1/1-31/12/2016 1/1-31/12/2015 Other Current Assets 409.040 351.924 47.887 44.833 Non current assets available for sale - - - - Sales Turnover 6.887 13.528 Total Assets 3.108.420 2.899.404 707.809 705.855 Gross profit / (loss) 11 26 Profit / (Loss) before tax, financial and investment results 3.617 (2.506) EQUITY AND LIABILITIES Profit / (Loss) before tax 539 (1.705) Share Capital 113.643 113.643 113.408 113.408 Less taxes (553) 1.434 Treasury stock reserve - - - - Profit / (Loss) after tax (A) (14) (271) Retained earnings and other reserves 875.738 850.714 370.897 370.916 Equity holders of the parent Company (14) (271) Equity attributable to parent's Shareholders (a) 989.382 964.358 484.306 484.324 Minority Interests - - Minority Interests (b) 294.869 265.980 - - Other comprehensive income after tax (B) (4) 10 Total Equity (c) = (a) + (b) 1.284.251 1.230.338 484.306 484.324 Total comprehensive income after tax (A) + (B) (18) (261) Long term Borrowings 428.650 404.278 5.250 - Owners of the Company (18) (261) Provisions and other long term liabilities 360.480 294.132 57.545 58.918 Minority Interests - - Short term borrowings 387.525 323.258 18.831 24.375 Net profit after tax per share (in Euro/share) (0,0001) (0,0023) Other short term liabilities 647.513 647.399 141.877 138.238 Profit / (Loss) before tax, financial, Non current liabilities available for sale - - - - investment results, depreciation and amortization 3.970 (2.161) Total Liabilities (d) 1.824.169 1.669.066 223.503 221.531 TOTAL EQUITY AND LIABILITIES (c) + (d) 3.108.420 2.899.404 707.809 705.855 CASH FLOW STATEMENT Amounts in 000's € Amounts in 000's € 1/1-31/12/2016 1/1-31/12/2015 1/1-31/12/2016 1/1-31/12/2015 31/12/2016 31/12/2015 31/12/2016 31/12/2015 Operating activities Equity at the beginning of the period (01.01.2016 and 01.01.2015 respectively) 1.230.339 1.161.226 484.324 496.277 Profit before tax (continuing operations) 85.276 108.791 539 (1.705) Total comprehensive income for the period after tax (continuing/ discontinuing operations) 56.170 93.853 (18) (261) Profit before tax (discontinuing operations) (2.630) (4.713) - - Increase / (Decrease) in Share Capital - (11.692) - (11.692) Adjustments for: Dividends paid (3.267) (12.988) - - Depreciation 74.086 61.266 354 345 Impact from acquisition of share in subsidiaries - - - - Impairments 279 42 75 42 Treasury shares purchased 918 (3) - - Provisions (1.386) (1.051) - (457) Other movements from subsidiaries - - - - Exchange differences (8.628) (3.763) 529 2.889 Changes in Equity from Sale of Subsidiary 92 (59) - - Other Operating Results - (508) - - Treasury Stock Sales/Purchases - - - - Results (income, expenses, gains and losses) of insting activities 1.233 (503) (4.879) (16.241) Equity at the end of the period (31.12.2016 and 31.12.2015 respectively) 1.284.251 1.230.339 484.306 484.324 Interest expense 51.422 54.563 7.954 15.441 Adjustments related to working capital accounts or to operating activities (Increase)/Decrease in stocks (33.761) (81.131) 11 - (Increase)/Decrease in trade receivables (101.254) (87.684) (4.230) 10.657 Increase / (Decrease) in liabilities (excluding banks) 45.223 (41.291) (7.133) (15.806) 1. Companies included in the consolidated financial statements with the corresponding participation of interest as well as the method of consolidation for the period 1/1-31/12/2016 Less: are being presented in note 3.10 of the Annual Financial Statements. Interest expense paid (48.314) (50.752) (4.231) (10.377) Income tax paid (14.281) (20.824) (3) (760) Cash flows from discontinuing operating activities 712 (720) - - Cash flows from operating activities (a) 47.977 (68.278) (11.015) (15.974) Investing activities (Acquisition ) / Sale of subsidiaries (less cash) (358) (2) - - Purchases of tangible and intandible assets (90.755) (44.881) (240) (163) Acquisition of associates (10.000) (2.450) - - Sale of tangible and intangible assets 1.326 282 13 - 4. Group's assets are pledged for an amount of 733,32 m € and other encumbrances of 168m€ as bank debt collateral. Purchase of financial assets held-for-sale - (108) - - Return of capital from Subsidiary - - - - Sale of financial assets held-for-sale 5 - - - Sale of financial assets at fair value through profit and loss - 4.660 - 540 Purchase of financial assets at fair value through profit and loss (2.000) (6.832) - - 6. Capital Expenditure for the period 01/01-31/12/2016 : Group €90.755 thousand and Company €240 thousand. Grants received 3.383 599 - - STATEMENT OF CHANGES IN EQUITY INCOME STATEMENT General Commercial Registry (G.E.MI.) THE GROUP EVANGELOS MYTILINEOS - President & CEO, IOANNIS MYTILINEOS - Vice President non-executive, GEORGE KONTOUZOGLOU - Executive Director-executive member, SOFIA DASKALAKI - nonexecutive, WADE BURTON - non-executive, APOSTOLOS GEORGIADIS - independent non-executive, CHRISTOS ZEREFOS, independent non-executive, MICHALIS HANDRIS - independent nonexecutive, PANAGIOTIS PSARREAS, Secretary 1/1-31/12/2016 1/1-31/12/2015 STATEMENT OF FINANCIAL POSITION Amounts in 000's € THE GROUP THE COMPANY THE COMPANY THE GROUP THE COMPANY THE GROUP THE COMPANY ADDITIONAL DATA AND INFORMATION 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 4.36 of the Annual financial statements. For the fiscal year 2012 and 2013, the Group companies which were subject to tax audit by statutory auditors or audit firm, received a Tax Compliance Certificate free of disputes in 2013 and 2014 accordingly.For the 2014 and 2015 tax audit, the companies of the Group which operate in Greece have been subjected to a tax audit by Sworn Auditors according to article 65A par. 1 of law 4174/2013 and of law 4262/2014. Said tax audit has been completed during 2015 and 2016 accordingly and the tax certificates were distributed by the statutory auditors.For fiscal year 2016, the tax audit is already being performed by the legal auditors and is not expected to bring any significant differentiation on the tax liabilities incorporated in the Financial Statements. According to the relevant recent law, the audit and issuance of tax certificates are also valid for the fiscal years starting from 2016 onwards on an optional basis.It is noted that a tax audit started in 2016 by the competent authorities of the Ministry of Finance of the parent company METKA SA for fiscal years 2009-2010 and is expected to be concluded during this year. The Group's Management estimates that the additional tax liabilities to be paid will not be more than the already formed forecast.The tax audit for the parent company Mytilineos S.A. for the fiscal years 2007-2010 has been completed by the relevant authorities of Ministry of Finance. The differences that arose from said tax audit amounts to €760k. 3. The basic accounting policies in the consolidated balance sheet of 31 December 2015 have not been altered. 5. The number of employees at 31/12/2016 amounts to 2.009 for the Group and to 79 for the Entity. Accordingly, at 31/12/2015, the number of employees amounted to 1.853 and 72.

  1. Related party transactions and balances for the reported period, according to I.A.S. 24 are as follows: Dividends received 18 160 5.928 16.080
Liabilities 54 165.764 Financing activities

Amounts in 000's € THE GROUP THE COMPANY Cash flows from discontinuing investing activities - - - - Revenues 664 23.640 Return of Capital from Subsidiary - - - 157.600 Expenses 4.816 14.044 Other cash flows from investing activities 9 1 - - Receivables 2.488 45.055 Cash flows from investing activities (b) (96.764) (46.745) 5.702 174.060 Key management personnel compensations 16.242 2.579 Proceed from issue of capital - - - - Receivables from key management personnel - - Sale / (purchase) of treasury shares - - - - Payables to key mananagement personnel 47 47 Tax payments (3) (3) - - Proceeds from borrowings 292.471 295.593 12.900 13.190 Loan repayments (205.344) (251.000) (8.500) (159.122) Dividends paid (3.109) (13.787) - - Return of share capital to shareholders - (11.702) - (11.692) Cash flow discontinuing financing activities (41.073) (16.895) - - 31/12/2016 31/12/2015 31/12/2016 31/12/2015 Cash flows from continuing financing activities (c) 42.942 2.205 4.400 (157.623) Net (decrease) / increase in cash and cash equivalents of the period (a) + (b) + (c) (5.845) (112.817) (913) 462 Exchange differences on translation of foreign operations (538) 17.960 - - Cash and cash equivalents at beginning of period 200.859 313.428 1.249 786 Cash Flow hedging reserve (6.004) 197 - - Foreign exchange differences 2.869 249 - - Actuarial gain/ (losses) (424) (770) (6) 14 Net cash at the end of the period 197.884 200.859 336 1.249

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 31 DECEMBER 2016

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

THE GROUP THE COMPANY
Net profit (loss) for the period 61.240 75.699 (14) (271)
Held for sale Financial Assets - - - -
Gain/(Loss) from sale of Treasury Stock - - - -
Deferred tax of cash flow hedging 1.741 647 - -
Deferred tax of actuarial gain/losses 155 120 2 (4)
Change in reserves from tax rate alteration
Total comprehensive income for the period after tax (continuing/
- - - -
discontinuing operations) 56.170 93.854 (18) (261)
  1. Within the current year, and after the termination of the agreement between Group's subsidiary company METKA S.A. ( the Company) with UBAF (Bank) to keep cash of the Company amounting to € 59,7 mil. within a term deposit account, followed the refusal of UBAF to transfer the aforementioned balance it maintained to the company's current account. The reason of the above was the invocation of the need to use the specific amount as collateral, by way of collateral account, in case that any demands be raised, from counter guarantees that the Bank has provided, on the Company's request, in order to issue good performance guarantee letters. Following the above, the Company proceeded with the commencement of proceedings before the courts of France. The litigation addresses the legal and substantial merits of the claim by UBAF to keep that amount to a pledge account for the sake of its own assurance, without in any case UBAF questioning that METKA is the proprietor of that amount.

  2. In the Statement of Changes in Equity, the amounts included in the line "Total comprehensive income for the period after tax (continuing/ discontinuing operations)" for 31 December 2016 and 2015 are presented in the table below:

23.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").The Cross Border Merger was completed and approved by the Business Registry in Greece on 9. The transitional Flexibility Remuneration Mechanism was enacted and entered into force from 1.5.2016, following the decision of the European Commission No. C (2016) 1791 final dated 31.3.2016, through the article 150 of L. 4389/2016 in 29/11/2016. Analysis on note 3.11 of the Annual Financial Statements.

accordance to the provisions set in the 3rd Memorandum between the Hellenic Republic and the Institutions, as embodied in the L. 4336/2015. An analysis is made on note 3.11 of the Annual Financial Statements.

10. Regarding the power purchase agreement between ALUMINIUM OF GREECE and PPC an analysis is made on note 3.11 of the Annual Financial Statements. 24. 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.
11. 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 11/03/2016. 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. 25.- On 04/09/2016, the 50% Group's subsidiary company, METKA S.A., founded METKA INTERNATIONAL LTD in UNITED ARAB EMIRATES , 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.
12. 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
26.On 16/11/2016, the 50% Group's subsidiary company, METKA S.A., founded METKA POWER INVESTMENTS in Cyprus, 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.
stores
13. In December 2016, subsidiary METKA S.A. became a strategic investor in IPS with a 10% stake by means of capital increase by 10mio€, enabling the company to fund a significant expansion of its production capacity, and to further develop its
market leading position in off-grid power applications globally. and cash contribution, while IPS and METKA will jointly pursue major off-grid power opportunities around the world.
27.In December 2016, the subsidiary METKA EGN, in which the Group's subsidiary METKA S.A. holds a 50.1% stake, proceeded to the acquisition of a 100% stake in four (4) companies based in England, namely HIGH POINT SOLAR LIMITED (on 02/12/2016),
GREEN LANE SOLAR LIMITED (on 01/12/2016), SEL PV 09 LIMITED (on 23/12/2016) and (vii) NORTH TENEMENT SOLAR LIMITED (on 29/12/2016). The only asset held by these companies, which were fully consolidated in the consolidated financial
statements, are permits for the construction of photovoltaic parks.
of the merger into a single entity by absorption of METKA, AoG, Protergia and Protergia Thermo by MYTILINEOS. Thorougly presented on note 3.11 of the Annual Financial Statements. 14. On 14.12.2016, the Boards of Directors of the companies "MYTILINEOS HOLDINGS S.A.","METKA INDUSTRIAL – CONSTRUCTION SOCIETE ANONYME", "ALUMINIUM OF GREECE INDUSTRIAL AND COMMERCIAL SOCIETE ANONYME",
"PROTERGIA POWER GENERATION AND SUPPLIES SOCIETE ANONYME"and "PROTERGIA AGIOS NIKOLAOS POWER SOCIETE ANONYME OF GENERATION AND SUPPLY OF ELECTRICITY"announced that they have decided to commence the process
28.Line, "Other cash flows" of Cash Flow from Group's Financial Activities, includes the variation of collateral deposits account, more specifically, deposits that are tied up for the issuance of Letters of Guarantee-Insurance for the good and prompt
performance of the projects. The Group, up to the previous fiscal year, included said variation at Cash flows from operating activities and more specifically at "(Increase)/Decrease in trade receivables". The Management assesses that the variation of
collateral deposits (thus the transfer of those, from collateral deposits to non-cash items and vise versa) does not constitute working capital variation and subsequently it should not be included at Cash flows from operating activities. By taking the above into
consideration, at Statement of Cash Flows for fiscal year 2015, an amount of € 16,895 thousands was reclassified from Cash flows from operating activities to Cash flows from financing activities, for comparative reasons
15.Regarding the briefing note that ADMIE sent to the subsidiary company Aluminium of Greece, an analysis is made on note 4.36 of the Annual Financial Statements.
16.Regarding the State Aid in favour of subsidiary, Aluminium of Greece, an analysis is made on note 4.36 of the Annual Financial Statements. 29. The emphasis matter of the Independent Auditor's report concern the explanatory note 4.36 of the Annual Financial Statements. Specifically, on 26/10/2016, the Court of Justice of the European Union issued the decision lifting the First Instance General
Court Decision as of October 8th 2014, in respect of the government grant provided by Greece to the subsidiary company ALUMINIUM OF GREECE S.A The aforementioned decision referred the case back to the General Court so that the remaining
17.Regarding DEPA claim against Protergia Thermoilektriki, Korinthos Power and Aluminium of Greece, an analysis is made on note 4.36 of the Annual Financial Statements. reasons behind the appeal, previously omitted, should be examined. The appeal in question revives the contingent liability of ALUMINIUM OF GREECE S.A. to return the amount of €17,4 million plus interest to the Public Power Corporation S.A. – Hellas (PPC
S.A.). ALUMINIUM OF GREECE S.A. has submitted all the required statements regarding the procedures. The Management of ALUMINIUM OF GREECE S.A. estimates that the appeal will be reaccepted by the General Court and, therefore, no amounts will
potentially outflow in order to settle the aforementioned contingent liability.
18.Regarding the dispute of DESFA and Aluminium of Greece, an analysis is made on note 4.36 of the Annual Financial Statements.
amounting to 21,85 m€. (Note 4.36 of the Annual Financial Statements) 19.There are other contingent liabilities against the Group, amounting to 4,21 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
20.There is a pending legal claim of the Group's subsidiary company METKA S.A. from a supplier of € 28.1 million which relates to compensation for poor performance. The defendant company has filed a declaratory action claiming that it has no 30. Important post balance sheet events are presented in note 4.37 of the Annual Finanacial Statements.
requested arbitration against the absorbed company RODAX S.A., the cases of which are automatically taken over by METKA. 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. For the above case, the defendant company has also 31.Possible differences in totals are due to rounding.
Tribunal at the time of the expected positive outcome. The amount expected to be awarded may not be accurately assessed 21.The Company MYTILINEOS S.A. has a pending legal claim against the Republic of Serbia for the amount of US\$ 98,9 million including interest and expenses until the hearing, which relates to compensation for the damages caused to the
Company as a result of the failure by "RTB BOR", a state enterprise of former Yugoslavia (now "Serbia"), to comply with obligations that the latter had contractually undertaken, and for which compensation the Republic of Serbia is also liable due
to breaching its international contractual obligations. For said case, the Company filed a claim against the Republic of Serbia before an international arbitral tribunal. Following the conducting of the arbitration proceedings and the submission of
pleadings by both parties outlining their claims, the arbitration proceedings were completed and the arbitral decision is currently being awaited. In its results, the Company will acknowledge the amount that may be awarded to it by the Arbitral
Maroussi, 27 March 2017
THE CHIEF EXECUTIVE DIRECTOR GROUP FINANCE THE EXECUTIVE DIRECTOR GROUP
THE PRESIDENT OF THE BOARD & CHIEF EXECUTIVE OFFICER
EVANGELOS MYTILINEOS
THE VICE-PRESIDENT OF THE BOARD
IOANNIS MYTILINEOS
IOANNIS KALAFATAS FINANCIAL CONTROLLER
ANASTASIOS DELIGEORIS
I.D. No ΑΒ649316/2006 I.D. No ΑΕ044243/2007 I.D. No ΑΖ 556040/2008 I.D. No Π 195231/1989

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