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C. Annual Board of Directors Management Report
Board of Directors Annual Management Report
The present Board of Directors Annual Report pertains to the 2012 fiscal period. The Report has been prepared
so as to ensure harmonization with the relevant provisions of C.L. 2190/1920 as in effect, of law 3556/2007 (GGI
91Α/30.4.2007) and the issued executive decisions of the HCMC, especially HCMC Board of Directors Decision
number 7/448/11.10.2007.
The present report contains financial details on the entity titled «MYTILINEOS HOLDINGS S.A.» (hereinafter
called the «Company») and its subsidiaries and associated companies (hereinafter called the «Group», jointly
with the company) for fiscal year 2012. It describes major events that occurred in the same period and their
influence on annual financial statements. It also describes the main hazards and risks that may faced by the
Group member companies in the forthcoming year; finally, it lists major transactions between the Company
and the persons associated with it.
Ι. 2012 REVIEW - PERFORMANCE AND FINANCIAL POSITION
2012 was another year in the continuing deep recession that already counts five consecutive years. Financial
and political uncertainty experienced a mid-year peak, particularly through the summer when two consecutive
elections were held and national financing through the bailout program was provisionally suspended.
At a global level, the government debt crisis is still here and focuses on the European Region, yet its conse-
quences are now apparent on the economical growth rate of all Eurozone members. The ECB plays a key role
in the effort to restore and balance the level of liquidity at individual member states, while unemployment is a
phenomenon that undermines development prospects.
At a national level the financial recess has grown to a phenomenal extent, as the cumulative GDP diminution in
the 2008 – 2012 period exceeded 20%. The recapitalization of the bank system remained an outstanding issue
in 2012 and this adversely affected the liquidity in the Hellenic Economy that remained controlled at marginal
levels. The above, combined with delayed government disbursements to private businesses; the enforcement
of a series of new indirect and direct taxes and the uncertainty regarding the progress of investment plans,
resulted in an unbearable financial setting for Greek enterprises.
Despite these conditions, MYTILINEOS Group, leveraging its extrovert orientation, the rational management
of cash flows and its liquidity and the strict cost control, managed to maintain its financial performance at
comparable levels to the historic peaks of 2011. In addition, 2012 was marked by the completion of the major
Energy investment program, despite the particularly adverse environment.
By the end of 2012 the Group held a strong position, having achieved the strategic objectives of globalizing its
operations, improving its competitiveness and creating a balanced portfolio of industrial activities, setting a
strong and auspicious foundation for the time to come. Nevertheless, the Group is confronted with major chal-
lenges and difficulties ahead, that must be tackled with and successfully overcome.
