42
43
Interim Financial Statements
8.5.1 Foundation & Acquisition
-
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 share-
holder of 100%. The incorporation of the foresaid company in the consoli-
dated 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.
-
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.
8.5.2 Other changes
-
On 11/05/2016, the Annual General Meeting of the company’s Shareholders
resolved, among others, to change the company’s business name to “MET-
KA INDUSTRIAL-CONSTRUCTION S.A.”, with the distinctive title “METKA”.
8.6 Significant information
•
On 31/12/2014 the transitional Capacity Assurance mechanism expired. A
new Flexibility Remuneration Mechanism, was expected to come into force
from 1/1/2015.However and despite the fact that the public consultation pro-
cess had been completed from January 2015, the final information required
by the DG Competition of the EU were sent with a significant delay (Septem-
ber 2015) by the Greek authorities. Said delay had as result the lapse of time
required to set the new mechanism in force for the year 2015.Consequently,
the EBITDA of Mytilineos Group for the 1st half of 2015, are reduced by the
amount of approximately 22.3 mio
€
.
The transitional Flexibility Remuneration Mechanism was enacted and en-
tered into force from 1.5.2016, following the decision of the European Com-
mission No. C (2016) 1791 final dated 31.3.2016, through the article 150 of
L. 4389/2016 in accordance to the provisions set in the 3rd Memorandum
between the Hellenic Republic and the Institutions, as embodied in the L.
4336/2015.
According to the provisions of the aforementioned article, the duration of the
new transitional Flexibility Remuneration Mechanism is set for twelve months,
meaning up to 30.4.2017 (unless a new permanent Capacity and/or Flexibility
Mechanism comes into force at an earlier date).
The remuneration of the transitional Flexibility Mechanism has been set to
forty five thousand (45.000) euros per MW of net installed capacity with a cap
of fifteen million (15.000.000) euros per power plant.
The consultation held by the Regulating Authority for Energy (RAE) regarding
the implementation of the transitional Flexibility Remuneration Mechanism
was completed as of 18.7.2016. The Law expressly stipulates that the remu-
neration provided by said mechanism is guaranteed from 1.5.2016, but will
be collected from the entitled producers after they have been registered in
the Flexible Plants Registry. It is noted that if said mechanism was put into
force from 1.1.2016 (instead of 1.5.2016), the EBITDA of Mytilineos Group
would have been increased by 12,6mil
€
.
•
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 Ab-
sorbing 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, Ab-
sorbing 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 metallur-
gical waste thus enhancing its knowledge-base
on environmental compliance in all markets in
which Absorbing Company operates.
•
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 electric-
ity 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.
•
METKA’s New EPC project in GHANA
METKA S.A. announced the signature of a new
EPC contract with Amandi Energy Limited for a
new power plant in Ghana. The contract signa-
ture took place in London on 11 March 2016.
The project will be executed by METKA in con-
sortium with General Electric, and includes the
engineering, procurement, construction and
commissioning of a 192MW combined cycle
power plant in Takoradi. The plant will be im-
plemented 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.
8.7 Impairments testing of goodwill
and intangible assets
On 30/06/2016 the Group analyzed the sensitivity
of recoverable amount in relation to a reasonable
or possible change in some of key assumptions
which were disclosed in the financial statements for
the year ended 31 December 2015 (discount rate or
growth rate).
This analysis doesn’t indicate that the Group’s car-
rying amount of Cash Generating Units exceeds the
recoverable amount.
8.8 Tangible Assets
MYTILINEOS GROUP
(Amounts in thousands
€
)
Land &
Buildings
Vehicles &
mechanical
equipment
Furniture and
other
equipment
Tangible
assets under
construction
Total
Gross Book Value
389.660
1.384.596
32.822
41.630
1.848.709
Accumulated depreciation and/or impairment
(79.427)
(681.291)
(24.633)
-
785.352
Net Book Value as at
1/1/2015
310.233
703.305
8.189
41.630
1.063.357
Gross Book Value
398.105
1.417.786
33.839
56.646
1.906.376
Accumulated depreciation and/or impairment
(86.814)
(723.259)
(25.928)
-
(836.002)
Net Book Value as at
31/12/2015
311.291
694.527
7.911
56.646
1.070.375
Gross Book Value
372.586
1.399.141
34.074
91.538
1.897.339
Accumulated depreciation and/or impairment
(66.722)
(720.775)
(26.409)
-
(813.907)
Net Book Value as at
30/06/2016
305.864
678.366
7.664
91.538
1.083.432
(Amounts in thousands
€
)
Land &
Buildings
Vehicles &
mechanical
equipment
Furniture and
other
equipment
Tangible
assets under
construction
Total
Net Book Value as at
1/1/2015
310.233
703.305
8.189
41.630
1.063.357
Additions
3.779
35.843
812
35.264
75.698
Sales - Reductions
(22)
(14.574)
(9)
(384)
(14.989)
Depreciation
(7.411)
(47.219)
(1.402)
-
(56.033)
Reclassifications
2.357
17.160
329
(20.400)
(554)
Net Foreign Exchange Differences
2.356
13
(9)
536
2.896
Net Book Value as at
31/12/2015
311.291
694.527
7.911
56.646
1.070.375
Additions
729
10.507
438
38.299
49.973
Sales - Reductions
(704)
475
(4)
(3.473)
(3.705)
Depreciation
(3.531)
(27.237)
(685)
-
(31.454)
Reclassifications
(1.602)
96
6
(110)
(1.610)
Net Foreign Exchange Differences
(321)
-
(1)
-
(322)
Net Book Value as at
30/06/2016
305.864
678.366
7.664
91.538
1.083.432
