Annual Financial Report for the period from1st of January to the 31st of December 2013
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On the other hand, due to anyone of the aforementioned legislative changes relating to the climate change, the
Group might be given opportunities in the EPC sector.
Failure of achieving the expected long term benefits from productivity and the cost reduction
initiatives.
The Group has undertaken and will pursue initiatives relevant to productivity and cost reduction in order to
improve the performance and reduce the overall production cost. All such actions may not be fulfilled or the
entire estimated savings might not be achieved for various reasons beyond the Group’s control.
Political, legal and regulatory issues
The Group’s activities in Greece relevant to energy remain regulated , in a significant degree, by the government
and depend on political decisions or legal and regulatory framework matters. The developments within this
environment, which could be translated into delays in the essential deregulation of the energy market, might
affect the activities of the Group and its future results as well as the value of its energy assets or assets, the
operation of which requires an important consumption of energy products.
Moreover, the Group may be affected by adverse political developments or developments relating to the
regulatory framework that could be connected to its EPC activities in areas outside Greece and mainly in
countries with political instability.
IT Safety
Our business operations are supported by different software and data processing systems. However, we cannot
fully exclude an eventual non availability of such systems or violation in terms of data safety.
We mitigate such risks by applying high standards and taking measures in order to obtain and ensure their
availability, reliability, confidentiality and traceability. In addition and in order to control eventual hazards we
regularly invest in the upgrading of software, hardware and equipment and we conduct regular internal and
external audits supported by international consulting groups and we apply continuing progress procedures.
Risks relevant to EPC projects
The Group, via its subsidiary (ΜΕΤΚΑ), is exposed, in terms of contracts, to risks that are relevant to engineering
and electrical design, the supply, manufacturing and delivery of turn-key energy facilities against a determined
price. The aforementioned risks involve mainly cost overruns and/or delays in the implementation due to:
• Unforeseen increases of the cost of raw materials and/or equipment
• Mechanical failures or failures of equipment
• Unforeseen condition during manufacturing
• Delays due to adverse weather conditions
• Performance failure or problems relating to suppliers and subcontractors
• Additional works at the request of the customers or due to the customers’ delaying to produce in time the
necessary information for the design or the engineering of the project.
• Unforeseen or unexpected changes relating to sociopolitical situations mainly in countries with political
and governmental instability
When additional time is required or when METKA Group incurs additional cost due to the customers’ liability,
METKA negotiates with such customers the eventual compensation.
