102
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
subsidiaries 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 resolution
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.
3.26 CO
2
emission Liability
CO2 emissions are recognized according to the net liability approach through which, the Group recognizes
liabilities from CO2 emissions when the actual emissions exceed the distributed emission rights from E.U. The
liability is measured at fair value to the extent that the Group has the obligation of covering the deficit through
the market. Emission rights acquired over the required quantities for covering the deficit are recognized as
intangible assets at cost.
4. Business Risk Management
4.1 Financial Risk Factors
The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk
and price risk), credit risk, liquidity risk, cash flow risk and fair value interest-rate risk. The Group’s overall
risk management program focuses on the unpredictability of commodity and financial markets and seeks to
minimize potential adverse effects on the Group’s financial performance. The Group uses derivative financial
instruments to hedge the exposure to certain financial risks.
Risk management is carried out by a central treasury department (Group Treasury) under policies approved
by the Board of Directors. Group Treasury operates as a cost and service centre and provides services to all
business units within the Group, co-ordinates access to both domestic and international financial markets
and manages the financial risks relating to the Group’s operations. This includes identifying, evaluating and
if necessary, hedging financial risks in close co-operation with the various business units within the Group.
