Annual Financial Report for the period from1st of January to the 31st of December 2013
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When the result of a construction contract can be valuated reliably, the contract’s income and expenses are
recognized during the contract’s duration, respectively as income and expense.
The Group uses the “percentage of completion” method to define the appropriate income and expense amount
that will be recognized in a specific period.
The completion stage is measured based on the contractual cost that has been realized up to the balance sheet
date compared to the total estimated construction cost of each project.
When it is likely for the total contract cost to exceed the total income, then the expected loss is directly
recognized in the period’s results as an expense.
For the calculation of the cost realized until the end of the period, any expenses related to future activities
regarding the contract are excluded and appear as a project under construction. The total cost that was
realized and the profit/loss that was recognized for each contract is compared with the progressive invoices
until the end of the period.
When the realized expenses plus the net profit (less the losses) that have been recognized, exceed the
progressive 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 contract 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
consolidated financial statements at the date on which the distribution is approved by the General Meeting of
the shareholders.
Pro forma figures (EBITDA, EBITDA margin, free cash flow, net debt) are not governed by the International
Financial 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 Earnings before any interest income and expenses, investment results, depreciation,
amortization 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
associates when these are active in one of its reported Business Segments.
It is noted that the Group financial statements, prepared according to IAS 1 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
