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C. ANNUAL BOARD OF DIRECTORS MANAGEMENT REPORT
Board of Directors Annual Management Report
BOARD OF DIRECTORS ANNUAL REPORT
The present Board of Directors Annual Report pertains to the 2013 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 2013. 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 be 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. 2013 REVIEW - PERFORMANCE AND FINANCIAL POSITION
2013 saw the recession continuing in Greece for the sixth consecutive year, at the end of which the Greek
economy has lost around 1/4 of the GDP posted in 2007.
Although the prolonged recession has damaged the country’s productive fabric, driving unemployment up to
unprecedented levels, at the end of 2013 there are several indications that Greece is now entering a phase of
stabilisation. The primary surplus achieved for the first time ever since 2002, the elimination of the foreign
trade deficit and the decline in the yields of Greek government bonds, are unquestionable signs of stabilisation
and give rise to expectations of a recovery of the Greek economy. A positive development of major significance
in this direction was the successful recapitalisation of the banking system, which was concluded in 2013 and is
expected to improve liquidity conditions for the Greek economy in the medium term.
At the same time, on the global level, the steps taken by the European Central Bank succeeded in smoothing
out pressures on the markets, however the European economy is still confronted with strong challenges and
the risk of deflation. Outside Europe, the weakened growth rates in emerging markets are again causing
concerns about the prospects for global growth.
In this context, MYTILINEOS Group, relying on the expansion of its activities abroad, on the implementation
of strict cost controls and on the emerging returns of the significant investments carried out during the last
years, is posting improved core profitability and reduced net borrowing levels, while also securing adequate
liquidity to achieve its strategic goals.
Metallurgy and Mining Sector
In 2013, aluminium prices in the LME ranged from $1,695/tn to $2,123/tn against significant volatility in
the Euro/USD parity, which varied from 1.28 to 1.38. The second half of the year saw the continuation of the
declining trend in prices, with aluminium prices dropping even below $1,700/ton, posing significant challenges
for high-cost producers.
