12
13
MYTILINEOS HOLDINGS SUSTAINABILITY REPORT
2015
Economic performance
In 2015, MYTILINEOS Group remained on a steady course of
growth and continued to consolidate its position in all its three
business activity areas, focusing on newmarkets’ 13 entry in the
EPC Projects Sector, on further improving the competitiveness
of the Metallurgy Sector and on strengthening the presence of
Protergia in the electricity market. In particular, the Group’s con-
solidated turnover for 2015 stood at €1,383 million from €1,233
million for 2014 (up 12.2%). Earnings before interest, tax, depre-
ciation and amortisation (EBITDA) stood at €234.4 million, down
7.7% from €253.9 million for 2014, with net profit after tax and
minority rights standing at €47.6 million from €64.9 million the
previous year (down 26.7%). While this performance affirms the
Group’s resilience, it also reflects the pressure from a number of
negative factors, such as the weak domestic economic environ-
ment, the delays in the process for the completion of the energy
and industrial policy, the negative developments in the global
commodities markets and the slowing down of investments in
new energy projects as a result of geopolitical changes in vari-
ous markets.
Outlook 2016
G4-1 G4-8
Metallurgy & Mining Sector
In the Metallurgy sector, the growth rate of global aluminium
demand is expected to remain strong during 2016, thus help-
ing support aluminium prices. After the record-high levels at-
tained at the end of 2014 and their rapid decline fall during 2015,
Premia appear to be stabilised. On the contrary, the significant
decrease in energy prices, raw materials and transportation,
drives production costs to lower levels. Accordingly, low Al-
uminium prices, prevailed also at the beginning of 2016, pose
significant challenges for less competitive, marginal producers,
who are expected to continue curtailing their production levels
in the upcoming months. The developments regarding the mar-
ket’s fundamentals, the performance of emerging economies
and especially the Chinese, the energy costs and the evolution of
Ο Όµιλος ΜΥΤΙΛΗΝΑΙΟΣ µε γνώµονα τη συνεχή ανάπτυξη και
πρόοδο και µε στόχο να συνεχίσει να πρωταγωνιστεί σε κάθε
τοµέα δραστηριοποίησής του, προωθεί µε συνέπεια το όραµά του
να αποτελέσει έναν ισχυρό και ανταγωνιστικό ευρωπαϊκό Όµιλο
στο πεδίο της βαριάς βιοµηχανίας. Ο Όµιλος, βασιζόµενος στο
άριστα εκπαιδευµένο ανθρώπινο δυναµικό του, στα σηµαντικά
πάγια και στην οικονοµική ευρωστία που διαθέτει, στοχεύει στη
σταθερή οργανική ανάπτυξη στην ευρύτερη περιοχή της Ν.Α.
5.
Στρατηγική & προοπτικές 2016
Ευρώπης, της Αφρικής και της Μέσης Ανατολής και στην
εδραίωση σηµαντικών συνεργειών στους βασικούς τοµείς της
δραστηριότητάς του επιδιώκοντας την ισόρροπη ανάπτυξή τους.
Παράλληλα µε τo επενδυτικό του πρόγραµµα, αναπτύσσει
µεθόδους περιορισµού των δαπανών αξιοποιώντας τις
δυνατότητες εξελιγµένων εργαλείων και µεθόδων αντιστάθµισης,
για τη διασφάλιση της βελτιστοποίησης της οικονοµικής
απόδοσής του στα επόµενα χρόνια.
1,382,872,590.1
1,122,043,109.6
87,258,503.0
64,350,111.0
64,539,251.1
1,135,037.0
1,399,326,01.7
96.9%
3.1%
2014
2015
Generated Value
Turnover (€)
Distributed Value
Operating costs (€)
Employee salaries and benefits (€)
Payment of income tax & other taxes (€)
Payments to capital providers (€)*
Investments in local communities (€)
Total (€)
% of economic value distributed
% of economic value retained
1,232,604,268.9
965,796,625.7
83,876,209.0
53,641,409.8
62,250,594.0
852.000
1,166,416,838.5
94.6%
5.4%
Strengthen the Group’s position in all three activity sectors
Develop and leverage effective and efficient synergies
Create value for Stakeholder groups
Strategic directions for Business Growth
2015-2019
Strategic directions for
Responsible Development 2015-2019
• Increase market share in the electricity market and
establishment of the Group as the largest independent
electricity producer in Greece.
• Continuation of the investment plan in RES plants, to
develop full integrated electricity production/supply
operations.
• Pursuit of strategic alliances.
• Optimisation of the coverage under competitive terms
of business needs in natural gas and achievement of
strategic synergies in natural gas trading to third
parties.
• Further strengthening of competitiveness through the
implementation of the new “Excellence” cost reduction
programme.
• Concentration on exports.
• Continuation of investments.
• Pursuit of new vertical integration projects or projects
for expanding Metallurgy operations.
• Continuous adherence to the law across all hierarchical
levels and activities of the Group.
• Strict commitment to employees Health & Safety.
• Continuous Stakeholder engagement and collaboration.
• Implementation of best practices that enhance
harmonious coexistence with the local communities.
• Maintaining transparency and strengthening of the
corporate governance system.
• Strengthening of the Group’s role as a key sustainability
actor in Greece.
• Improvement in the use of natural resources.
• Further strengthening of waste recycling and utilisation.
• Stabilisation and reduction of air emissions.
• Maintaining the high efficiency rate of power plants.
• Raising public awareness of issues related to Respon-
sible Entrepreneurship.
Metallurgy & Mining Sector
• Expansion to existing and new developing markets,
building on the Group’s significant industrial know-how
and infrastructure.
• Business focus on large-scale turn-key projects.
• Expansion of activities to new products.
• Exploration of new opportunities for securing
infrastructure projects in the domestic market.
EPC Projects Sector
Energy Sector
* shareholder dividends, payment of interest to creditors, including interest on all types of debts and loans, as well as retrospective payment of dividend amounts owed to
preference shareholders.
Group Strategy "Continuous Responsible Development
Economic Value Table
G4-EC1
1
4
7
8
9
17
15
20
23
24
25
26
27
29
30
28
21
10
11
22
12
13
5
2
3
18
16
6
14
19
5. Strategy & Outlook 2016
Driven by its commitment to continuous development and pro-
gress and seeking to always be at the forefront of developments
in each one of its activity sectors MYTILINEOS Group consistently
pursues its vision to become a strong and competitive European
heavy industry group. Drawing on its highly qualified employees,
significant assets and financial robustness, the Group aims to
achieve steady organisational growth in the wider region of SE
Europe, Africa and the Middle East and to consolidate the signif-
icant synergies available between its core activity sectors, seek-
ing, in this way to ensure their balanced development. In parallel
with its investment plan, it develops methods to curtail costs and
exploits the capabilities of sophisticated risk-hedging tools and
techniques to optimise its economic performance in the coming
years.
G4-1
Ο Όµιλος ΜΥΤΙΛΗΝΑΙΟΣ µε γνώµονα τη συνεχή ανάπτυξη και
πρόοδο και µε στόχο να συνεχίσ ι να πρωταγ νιστεί
κάθε
τοµέα δρ στηριοποίησής του, προωθεί µε συνέπεια το όραµά του
να αποτελέσ ι έναν ισχυρό και ανταγωνιστικό ευρωπαϊκό Όµιλο
στο πεδίο της βαριάς βιοµηχανίας. Ο Όµιλος, βασιζόµενος στο
άριστα εκπαιδευµένο ανθρώπινο δυναµικό του, στα σηµαντικά
πάγια και στην οικονοµική ευρωστία που διαθέτει, στοχεύει στη
σταθερή οργανική ανάπτυξη στ ν ευρύτε η περιοχή της Ν.Α.
5.
Στρατηγική & προοπτικές 2016
Ευρώπης, της Αφρικής και της Μέσης Ανατολής και στην
εδραίωση σηµαντικών συνεργειών στους βασικούς τοµείς τη
δραστηριότητάς του επιδιώκοντας την ισόρροπη ανάπτυξή τους.
Παράλληλα µε τo επενδυτικό του πρόγραµµα, αναπτύσσει
µεθόδους περιορισµού των δαπανών αξιοποιώντας τις
δυνατότητες εξελιγµένων εργαλείων και µεθόδων αντιστάθµισης,
για τη διασφάλιση τ ς βελτιστοποίησης της οικονοµικής
απόδοσής του στα επόµενα χρόνια.
1,382,872,590.1
1,122,043,1 9.6
87,258,503.0
64,350,111.
64,539,2 1.1
1,135,037.0
1,399,326,01.7
96.9%
3.1%
2014
2015
Generated Value
Turnover (€)
Distributed Value
Operating costs (€)
Employee salaries and benefits (€)
Payment of i c me tax & other tax s (€)
Payments to capital providers (€)*
Investm nts in local c mmunities (€)
Total (€)
% of economic value distributed
% of economic value retained
1,232,604,268.9
965,7 ,625.7
83,876,209.0
53,641,409.8
62,250,594.
852.000
1,166,4 ,838.5
94.6%
5.4%
Strengthen the Group’s o iti n in all three activity sectors
Develop and leverage eff ctive and efficient synergi s
Create value for Stakeholder groups
Strategic directions f r Business Growth
2015-2019
Strategic directions f r
Respon ible Development 2015-2019
• Increase market share in the electricity market and
establishment of the Group as the largest independent
electricity producer in Greece.
• Continuation of the inv stment plan in RES plants, to
develop full integrated electricity production/supply
operations.
• Pursuit of strategic alliances.
• Optimisation of the coverage under competitive terms
of busine s needs in natur l gas and chievement of
strategic synergi s in natur l gas tr ding to third
parties.
• Furthe strengthening of competitiv ness through the
imple entation of the new “Excellence” cost reduction
programme.
• Concentration on exports.
• Continuation of investments.
• Pursuit of new v rtical integration projects or projects
for expanding Metallurgy operations.
• Continuous adherence to the law across all hierarchical
levels and ctivities of the Group.
• Strict commit ent to employees H alth & Safety.
• Continuous Stakeholder engagement and collaboration.
• Imple entation of best practices that enha ce
harmonious coexist nce with the local communities.
• Maintaining transparency and strengthening of the
corporate governance system.
• Strengthening of the Group’s role as a key sustainability
actor in Greece.
• Improvement in the us of natur l resources.
• Furthe strengthening of waste recycling a d utilisation.
• Stabilisation and reduction of air emissions.
• Maintaining the high effici n y rate of power plants.
• Raising public awareness of i sues r lated to Respon-
sible Entrepreneurship.
Metallurgy & Mining Sector
• Expansio to existing a d new d veloping markets,
building o the Group’s significant industrial know-how
and infrastructure.
• Busine s focus on large-scale turn-key projects.
• Expansio of activities to new products.
• Explorati n of ew opportunities for securing
infrastructure projects in the domestic market.
EPC Projects Sector
Energy Sector
* sharehold r dividends, payment of i terest to creditors, including interest on all types of debts and loans, as well as retrospective payment of dividend amounts owed to
preferenc sharehold rs.
Group Strategy "Conti uo s Responsible Dev lopment
Economic Value Table
G4-EC1
1
4
7
8
9
17
15
20
23
24
25
26
27
29
30
28
21
10
11
22
12
13
5
2
3
18
16
6
14
19
the Euro/USD parity, along with the monetary policy by the Cen-
tral Banks, are expected to be the catalysts for the sector in the
months to come. Within this international landscape, the Group
is focusing on further strengthening its competitiveness and is
expecting a satisfactory financial performance from its Metallurgy
Sector in 2016.
EPC Sector
Implementation of the signed backlog, currently standing at €1.2
billion, is expected to continue during 2016. METKA has laid the
foundations for yet another year of satisfactory results, driven
mainly by the projects it has been awarded in the markets of
Ghana, Algeria and Iraq. For the immediate future, METKA will
focus on ensuring the successful implementation of its contracts
abroad and on securing new projects in existing and/or in new
markets, in order to expand its share of the market for energy
infrastructure projects in Europe, Turkey, N. Africa and the Middle
East. In parallel, the company continues to diversify its activities
by expanding to new products, with the establishment of MET-
KA-EGN, active in the fast-growing global solar energy market,
being a recent such example.
Energy Sector
2016 is expected to be a turning point for the Energy Sector, as
the reduction of natural gas prices favours the competitiveness
of the Group’s thermal plants, especially regarding the merit to
order compared to the Lignite fired plants. In addition, PROTER-
GIA is expected to continue increasing its share in the retail elec-
tricity market, while it also keeps up with the implementation of
its investment plan in new RES projects. In this context, the En-
ergy Sector is expected to have an increased contribution in the
Group’s consolidated financial results for 2016.
