90
When the realized expenses plus the net profit (less the losses) that have been recognized, exceed the pro-
gressive invoices, the difference appears as a receivable from construction contract customers in the account
“Customers and other receivables”. When the progressive invoices exceed the realized expenses plus the net
profit (less the losses) that have been recognized, the balance appears as a liability towards construction con-
tract customers in the account “Suppliers and other liabilities”.
3.24 Dividend distribution
The distribution of dividends to the shareholders of the parent company is recognized as a liability in the con-
solidated financial statements at the date on which the distribution is approved by the General Meeting of the
shareholders.
3.25 Proforma figure “Operating Earnings before Financial & Investment results,
Tax, Depreciation & Amortization” (Group EBITDA)
Pro forma figures (EBITDA, EBITDA margin, free cash flow, net debt) are not governed by the International Fi-
nancial Reporting Standards (IFRS). Thus, these figures are calculated and presented by the Group in a way that
provides a more fair view of the financial performance of its Business Sectors. The Group defines “Group EBITDA”
as the Operating earning before any interest income and expenses, investment results, depreciation, amortiza-
tion and before the effects of any special factors. “Group EBITDA” is an important indicator used by Mytilineos
Group to manage the Group’s operating activities and to measure the performance of the individual segments.
The special factors that affect the Group’s net profit / (losses) and EBITDA are the following:
• The Group’s share in the EBITDA of associates when these are active in one of its reported Business Segments.
• The Group’s share on the profit from the construction of fixed assets on account of subsidiaries and associ-
ates when these are active in one of its reported Business Segments.
It is noted that the Group financial statements, prepared according to IAS 21 and IAS 28, include:
The Group’s profit realized in connection with the construction of fixed assets on account of subsidiaries and
associates, when these are active in one of its reported Business Segments. Such profits are deducted from
the Group’s equity and fixed assets and released in the Group accounts over the same period as depreciation
is charged. Consequently, for the calculation of EBITDA (operational results before depreciation), the Group
does not eliminate the profit from the construction of fixed assets as its recovery through their use will effect
only the profit after depreciation.
The Group states that the calculation of “Group EBITDA” may differ from the calculation method used by other
companies/groups. However, “Group EBITDA” is calculated with consistency in each financial reporting period
and any other financial analysis presented by the Group. Specifically financial results contain interest income/
expense, while investment results contain gains/loss of financial assets at fair value through profit and loss,
share of results in associates companies and gains/losses from the disposal of financial assets (such as sub-
sidiaries and associates).
Finally, the proforma figure “Group EBITDA” should not be confused with the figure “Earnings before income
tax, financial results, depreciation and amortization” calculated for the purposes of 6/448/11.10.2007 resolu-
tion of the Hellenic Capital Committee, according to Circular No. 34, as the purpose of the latter is not to define
proforma figures like EBITDA despite the familiar terminology used.
