ALUMINIUM OF GREECE · 2016. 8. 2. · Annual Financial Report for the period from1st of January to...

ALUMINIUM OF GREECE Annual Financial Report for the period from the 1st of January to

the 31st of December 2015

Annual Financial Report for the period from1st of January to 31st of December 2015 1

TABLE OF CONTENTS

A. Representation of the Members of the Board of Directors ..................................................................................... 4

B. Independent Auditor’s Report ................................................................................................................................. 5

C. Annual report of the Board of Directors .................................................................................................................. 7

D. Annual Financial Statements .................................................................................................................................. 20

I. Statement of Financial Position ............................................................................................................................... 21

II. Income Statement .................................................................................................................................................. 22

IΙΙ. Statement Of Comprehensive Income .................................................................................................................. 23

IV. Company Statement of Changes in Equity ............................................................................................................ 24

V. Cash Flow Statement .............................................................................................................................................. 25

E. Notes On The Financial Statements ....................................................................................................................... 26

1. General Information ............................................................................................................................................... 26

1.2 Company’s purpose .............................................................................................................................................. 26

2. Basis for preparation of the financial statements .................................................................................................. 27

3. Basic accounting principles ..................................................................................................................................... 28

3.1 New and amended accounting standards and interpretations of IFRIC .............................................................. 28

3.2 Consolidation ........................................................................................................................................................ 32

3.3 Significant accounting judgments, estimates and assumptions ........................................................................... 33

3.3.1 Accounting decisions ......................................................................................................................................... 33

3.3.2 Assumptions and estimations............................................................................................................................ 35

3.4 Group Structure .................................................................................................................................................... 36

3.5 Significant information ......................................................................................................................................... 36

3.6 Conversion to foreign currency ............................................................................................................................ 37

3.7 Segment reporting ................................................................................................................................................ 38

3.8 Recognition of income and expenses ................................................................................................................... 38

3.9 Intangible assets ................................................................................................................................................... 39

3.10 Tangible assets .................................................................................................................................................... 41

3.11 Impairment of Assets .......................................................................................................................................... 42

3.12 Leases .......................................................................................................................................................... 42

3.13 Financial instruments ......................................................................................................................................... 43

3.14 Inventories .......................................................................................................................................................... 44

3.15 Trade Receivables ............................................................................................................................................... 44

3.16 Cash and cash equivalent ................................................................................................................................... 44

3.17 Share capital ....................................................................................................................................................... 44

3.18 Income tax & deferred tax .................................................................................................................................. 45

3.19 Employee benefits .............................................................................................................................................. 46

3.19.1 Short-term benefits ......................................................................................................................................... 46

3.19.2 Post-employment benefits .............................................................................................................................. 46

3.20 Grants .......................................................................................................................................................... 47

3.21 Loans .......................................................................................................................................................... 48


3.22 Provisions .......................................................................................................................................................... 48

3.23 Dividend distribution .......................................................................................................................................... 48

3.24 CO2 emission Liability ......................................................................................................................................... 48

3.25 Hedging Accounting ............................................................................................................................................ 49

4. Business Risk Management .................................................................................................................................... 51

4.1 Financial risk management aims and policies ...................................................................................................... 51

4.2 Fair Value Measurements ..................................................................................................................................... 51

4.3 Market Risk .......................................................................................................................................................... 52

4.4 Credit Risk .......................................................................................................................................................... 54

4.5 Liquidity Risk ......................................................................................................................................................... 54

4.6 Capital Management ............................................................................................................................................ 55

5. Segment reporting .................................................................................................................................................. 57

5.1 Primary reporting format – business segments ................................................................................................... 57

5.2 Secondary reporting format – geographical segments ........................................................................................ 57

6. Notes on the Financial Statements ......................................................................................................................... 59

6.1 Tangible Assets ..................................................................................................................................................... 59

6.2 Intangible Assets ................................................................................................................................................... 60

6.3 Investments on Subsidiaries ................................................................................................................................. 60

6.4 Investments on associates .................................................................................................................................... 61

6.5 Deferred tax assets and liabilities ......................................................................................................................... 61

6.6 Other long-term assets ......................................................................................................................................... 62

6.7 Inventories fair value ............................................................................................................................................ 63

6.8 Customers and other trade receivables ............................................................................................................... 63

6.9 Other receivables .................................................................................................................................................. 64

6.10 Financial assets at fair value through profit or loss ............................................................................................ 64

6.11 Derivative financial instruments ......................................................................................................................... 64

6.12 Cash and Cash Equivalents ................................................................................................................................. 65

6.13 Own Equity ......................................................................................................................................................... 66

6.13.1 Share capital .................................................................................................................................................... 66

6.13.2 Other reserves ................................................................................................................................................. 67

6.13.3 Fair value reserves ........................................................................................................................................... 67

6.14 Benefits for employment termination................................................................................................................ 68

6.15 Loan liabilities ..................................................................................................................................................... 70

6.16 Other long-term liabilities .................................................................................................................................. 70

6.17 Provisions .......................................................................................................................................................... 71

6.18 Suppliers and other trade liabilities .................................................................................................................... 72

6.19 Current tax liabilities ........................................................................................................................................... 72

6.20 Other short-term liabilities ................................................................................................................................. 72

6.21 Cost of goods sold ............................................................................................................................................... 73

6.22 Administrative & Distribution Expenses ............................................................................................................. 73


6.23 Other Operating Income – Expenses .................................................................................................................. 74

6.24 Financial revenues and expenses ....................................................................................................................... 74

6.25 Other Financial results ........................................................................................................................................ 75

6.26 Earnings/ (losses) per share ................................................................................................................................ 75

6.27 Income Tax .......................................................................................................................................................... 75

6.28 Cash Flows from operating activities .................................................................................................................. 77

6.29 Related Party transactions .................................................................................................................................. 77

6.30 Dividend .......................................................................................................................................................... 79

6.31 Contingent assets and contingent liabilities ....................................................................................................... 79

6.32 Number of employees ........................................................................................................................................ 84

6.33 Commitments ..................................................................................................................................................... 84

6.33.1 Operating lease deposit – the company as a lessor ........................................................................................ 84

6.33.2 Operating lease deposit – the company as a lessee ........................................................................................ 84

6.33.3 Warranties ....................................................................................................................................................... 85

6.34 Financial Instruments ......................................................................................................................................... 85

6.35 Tax Authorities Control ....................................................................................................................................... 86

6.36 Post Balance Sheet events .................................................................................................................................. 86

F. Figures and Information ......................................................................................................................................... 87

G. Availability of Financial Statements ....................................................................................................................... 88


A. REPRESENTATION OF THE MEMBERS OF THE BOARD OF DIRECTORS

The members of the Board of Directors of ALUMINIUM OF GREECE:

1. Spyridon KASDAS, Chairman of the Board of Directors 2. Dimitrios STEFANIDIS, Chief Executive Officer,

In our above capacity declare that as far as we know:

a. the enclosed financial statements of “ALUMINIUM OF GREECE” for the period of 1.1.2015 to

31.12.2015, drawn up in accordance with the applicable accounting standards, reflect in a true manner

the assets and liabilities, equity and results of “ALUMINIUM OF GREECE”.

b. the enclosed report of the Board of Directors reflects in a true manner the development, performance

and financial position of “ALUMINIUM OF GREECE”, including the description of the principal risks and

uncertainties.

Maroussi, 21 March 2016

The designees

Spyridon KASDAS Dimitrios STEFANIDIS

Chairman of the Board Chief Executive Officer Of Directors of Directors


B. INDEPENDENT AUDITOR’S REPORT

TO THE SHAREHOLDERS OF ALUMINIUM OF GREECE

Report on the Financial Statements

We have audited the accompanying financial statements of Aluminium of Greece S.A.I.C. (“the

Company”), which comprise of the Statement of Financial Position as at December 31, 2015, and the

Income Statement and Statement of Comprehensive Income, changes in equity and cash flows for the

year then ended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these individual and consolidated

financial statements in accordance with International Financial Reporting Standards as adopted by

European Union, and for such internal control as management determines is necessary to enable the

preparation of individual and consolidated financial statements that are free from material misstatement,

whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We

conducted our audit in accordance with International Standards on Auditing. Those standards require

that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance

about whether the individual and consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in

the individual and consolidated financial statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material misstatement of the financial statements,

whether due to fraud or error. In making those risk assessments, the auditor considers internal control

relevant to the entity’s preparation and fair presentation of the financial statements in order to design

audit procedures that are appropriate in the circumstances but not for the purpose of expressing an

opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the

appropriateness of accounting policies used and the reasonableness of accounting estimates made by

management, as well as evaluating the overall presentation of the financial statements. We believe that

the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

opinion.


Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of

the Company as at December 31, 2015, and the financial performance and the cash flows of the

Company for the year then ended in accordance with International Financial Reporting Standards that

have been adopted by the European Union.

Emphasis of matter

We would like to draw your attention to note 6.31 of the annual financial statements, where it is

disclosed that the Company and its supplier PPC, have not yet reached an agreement for the pricing of

electricity for the term beginning on 1st January 2014 and onwards. The finalization of the negotiations

between the two parties may result in the Company recognizing assets or liabilities the amount of which

currently cannot be measured reliably

We have not qualified our opinion for the above mentioned matter.

Report on Other Legal and Regulatory Requirements

We confirm that the information given in the Director’s Report is consistent with the accompanying

financial statements and complete in the context of the requirements of articles 43a, and 37 of Codified

Law 2190/1920.

Athens, 21 March 2016

The Chartered Accountant

Marios Lasanianos

S.O.E.L. Reg. No.: 25101


C. ANNUAL REPORT OF THE BOARD OF DIRECTORS

BOARD OF DIRECTORS ANNUAL MANAGEMENT REPORT

I. GENERAL OVERVIEW

2015, was a year with great difficulties, as the country had to take important and vital decisions, under

the pressure of an unstable and turbulent national and global environment.

After a short period of recovery within 2015, the Hellenic economy slipped back to recession, being

negatively affected by the financial uncertainty that reached its peak in June, stemming from the

restrictions imposed on banking transactions and capital controls. The agreement, signed on July for a

new funding program, set the beginning of Hellenic economy stabilization.

The new reinforcement of the capitalization of country’s banking system and the gradual easing of the

banking transactions restrictions, contributed on the stabilization of the economic activity which showed

sturdiness and the negative impact on GDP (-0,7% in total for 2015) was finally not as much as initially

expected. Although, it is a fact that the Hellenic economy was undergoing the 7th year of economic

downturn during the last 8 years and as a consequence, the ratio Debt/ GDP is deteriorating,

unemployment ratio remains constantly high and social cost is rising. At the same time, despite the

recapitalization that was carried out on December, the situation in Banking sector remains crucial as the

work-out of the non-performing loans remains in pendency and the maintenance of necessary liquidity

depends exclusively on ECB.

At an international level the weakening of economic growth in emerging market countries, and especially

in China, the sharp decline in the prices of oil and commodities and the overall geopolitical instability

give cause for concern, and reservations exist regarding the effectiveness of further interventions from

Central Banks.

In this context ECB extended the program of securities acquisitions and continues to apply monetary

policy measures as there is an increasing risk of deflation. At the same time, investments in securities

with negative yields have increased in unprecedented levels providing concerns about the quality of the

balance sheets of the European Banks. From the other side, the normalization of FED’s monetary policies

initiated strong fluctuations in international FOREX, commodities and stock markets.

Aluminium of Greece, continued its course against severe conditions resulted from the international

crisis in commodities markets that are affecting mines and smelters all over the world. In this

environment, Mytilineos Group focused on immunization through the program “Excellence” which is

focusing on further limitation of operational costs and enhancement of investments (€30m value of

investments that are in the stage of completion) in order to secure its international business profile and

to strengthen competitiveness of Aluminium of Greece. When “Excellence” is accomplished, AoG will


have achieved globally competitive cost levels, while retaining the strong momentum of the historic

industry.

ECONOMIC ENVIRONMENT

ALUMINA MARKET

The metallurgical Alumina Market in 2015 closed with relative equilibrium (production ~113 million

metric tons vs consumption ~112,8 million metric tons.) while the same is expected for 2016 with an

estimated increase in production and consumption by 2-3%.

The continuous increasing demand for aluminum worldwide for 4-6%, in connection with the historically

high production of aluminum in China and the restriction for bauxite export from Indonesia and the lack

of investments in new production plants, are expected to positively affect the price.

During the second half of 2015, after a sharp correction, the price has recovered and combined with the

reduction of the costs lots of producers see their profit margins maintaining at good levels.

Low metal prices in the stock market prices of metals in London in conjunction with the reduction of

premia may have a negative impact.

For Aluminium of Greece the long term contract with Glencore for metallurgical alumina has been

completed in 2015 with a total sales quantity of ~344.000 tons and value based 50% on the average of

3 different price index Alumina Price Index FOB Australia (Platts, MB, CRU) and the remaining 50% to a

specified percentage of the price of aluminum.

As for hydrated alumina, Aluminium of Greece maintained high profit margins with annual sales of

~123,000 tons in a market characterized as difficult and highly competitive.

ALUMINIUM MARKET

In the first half of 2015, prices of aluminum on the LME were downwards comparing to the high prices

reached during second half of 2014. The average price of aluminum during 2015 (LME 3 month)

amounted to $1,682 / ton, a noticeable reduction of 11% compared to the previous year (from $1.894 /

ton. in 2014), recording gradual reduction per quarter of 2015 and reaching in the 4th quarter the price

of $1,510 / ton. (the lowest price of the last (5) five years). The price of premia, despite the fact that

followed a similar trend with a reduction during the first half of 2015, maintained the high levels. A

sudden and sharp fall of the price started in the second half of 2015, recording a nominal reduction of -

$380 / ton. comparing to the prices of the beginning of 2015, affecting negatively the final total price of

LME + Premium, which was in the low levels of $ 1.860 / ton. at year end, against the price of $2.790 /

ton. at year end of 2014.

Inventory increase (registered or not) in the LME warehouse, the inflow of metals in the European

Market from countries such as China, Malaysia and other countries with very low premia, and the


noticeable reduction of the production cost, due to cheaper energy and raw materials used for the

production of aluminum, are the principal reasons for the drop of the prices, resulting a great pressure

to industry’s margins, leading a big portion of producers with losses to reduce production or even

suspend their less efficient industrial plants.

The accentuated decrease of the price seems not consistent with the development of the demand as in

China and in the rest of the world, aluminum consumption continues to rise at a satisfactory pace

(increased 3% in 2015) and is expected to reach 60m tons in 2016 recording an increase of

approximately 5%.

The consistent strengthening of the US dollar against the euro adjusted totally the drop of aluminum

prices (expressed in Euro / ton) as from the high level of 1.37 in 2014, declined gradually within 2015 to

1.09 and remained stable by the end of the year. On an annual basis dollar increased against euro by

16%.

ALUMINIUM OF GREECE in 2015

Having successfully completed the program "MELLON" and setting new target for further improvement

of its competitiveness, Aluminium of Greece decided in the beginning of 2015 the initiation of the

program "Excellence".

Focusing on tighter control over the costs and the implementation of the program "Excellence" are the

key priorities over the years 2015 - 2016 and are expected to create the conditions to avoid turmoil

resulted from the ongoing strains on metal prices.

As regards the production level, it has recorded historical performance in the production of Electrolysis

(liquid metal), as a result of initiation of the project "creeping" (increasing intensity of electricity) in

Electrolysis.

The increase of the production of molten metal has contributed in the production of the end products of

the Smelter. The production of hydrated alumina remained high, amounting approximately 810 thousand

tons.

The sales of hydrated alumina, a product that yields significant profit margins for Aluminium of Greece

have maintained its market share and amounted to 123 thousand tons.

Aluminum sales are focused for another year on high added value products.

Aluminum sales in volumes per product amounted to:

• 109.9 thousand tons of Billets in 2015 while 121.3 thousand tons in 2014

• 67.0 thousand tons of Slabs in 2015 while 50.6 thousand tons in 2014


In addition to the produced products, the following quantity was re-sold as merchandise in form of

Billets:

• 14.7 thousand tons of goods (Billets) in 2015 while 0,0 thousand tons in 2014

In 2015 the turnover of ALUMINIUM OF GREECE increased compared to 2014. The key factors that led

to this increase were: a) the LNG resale activity (€72m), b) the resale of foundry products (€27m), c)

the aid from strengthening of the US dollar against the euro that overcame the drop of the prices (€30m

as the net sum of the impact from prices and currency) and d) the increased sales quantity (€10m).

As regards to the cost, the contribution of the reduction of gas prices and basic raw materials has been

of particular significance.

A significantly negative impact on 2015 results (€15m) was resulted from the suspension of Capacity

Assurance mechanism for power stations.

II. PROSPECTS FOR THE NEW YEAR

The growth in global aluminum demand is expected to remain strong in 2016, being supportive for

prices of aluminum.

Premia’s prices, from historically high levels at the end of 2014 and the dramatic fall during 2015, seems

to enter a trend of stabilization. Vice versa, the emerging stability of low prices in energy, transportation

and raw materials, as formed in 2015, lead to lower levels of average costs of production. At the same

time, the low prices of aluminum, recorded in the beginning of 2016, seem to set strong challenge for

the less competitive producers who will have to reduce their production within the foreseeable future.

Developments regarding the fundamentals measures, the course of the emerging economies, especially

China’s, the energy cost, the development of Euro – dollar exchange rate and the monetary policy

pursued by central banks, are expected to be the main drivers that will determine the course of the

sector in the coming period.

Aluminium of Greece is expected to maintain the very good technical results without disregarding the

effects on staff safety.

The progress of program “Excellence” will lead to historical high levels of both annual production of

alumina and aluminium. Furthermore, by starting the new static furnace, the consumption of natural gas

needed for the production process of alumina and its carbon dioxide emissions will be limited.

Aluminium of Greece will focus on further strengthening of its competitiveness, based on strict and

continuous cost control, expecting to record strong financial performance in 2016.


ΙΙΙ. ADDED VALUE & PERFORMANCE INDICATORS

ALUMINIUM OF GREECE applies the policy of assessing its results and performance on a monthly basis

effectively identifying timely deviations from targets and taking the relevant corrective measures. The

Company monitors its performance by analyzing specific financial, technical and operational indicators.

Α. Financial Indicators

-EBITDA (Operating Earnings Before Interest, Taxes, Depreciation & Amortization): The

Company defines the «EBITDA» quantity as profits/losses before tax, itemized for financial and

investment results; for total depreciation (of tangible and intangible fixed assets).

- ROCE (Return on Capital Employed): This indicator is derived by dividing profit before tax and

financial results to the total capital employed by the Company, these being the sum of the Net Position,

the sum of loans and long - term forecasts.

- ROE (Return on Equity): This indicator is derived by dividing profit after tax by the company‘s Net

Position.

- EVA (Economic Value Added): This metric is derived by multiplying the total capital employed with

the difference (ROCE – Capital Expenditure) and constitutes the amount by which the financial value of

the company increases. To calculate the capital expenditure, the Company uses the WACC formula – «

Weighted Cost of Capital».

The above indicators for 2015 compared to 2014 are as follows:

Β. Operational And Technical Indices

- LTI : in 2015 the indicator was 1.08 compared to 1.64 in 2014.

- RCR : in 2015 the indicator was 2.16 compared to 4.37 in 2014.

- % Faraday: 94.0 in 2015 compared to 93.8 in 2014.

2015 2014

EBITDA (in mil. Euro) 88,06 65,00

ROCE 8,47% 5,45%

ROE 13,16% 3,63%

EVA (in mil. Euro) -11,00 -19,28


- % Pumping availability: 96.4 in 2015 compared to 97.1 in 2014.

IV. SIGNIFICANT INFORMATION

During the reporting period, the Company proceeds to the following:

• Transitional mechanism for the Capacity Remuneration

In 31/12/2014 the transitional mechanism for the Capacity Remuneration expired and regarding the new

Flexibility Remuneration Mechanism, which is expected to come into force from 1/1/2015, the public

consultation process has been completed from January 2015 and pending the approval of the DG

Competition of EU in order for the Regulatory Authority for Energy (RAE) to issue its relevant decision.

However, until the date of the annual financial statements of ALUMINIUM of GREECE, DG Competition

has not yet given its expected approval as it is still pending the response of the Greek Government’s

authorities in its final requests. As a result of that, the operating results before taxes, financials and

depreciation/amortization (EBITDA) of ALUMINIUM OF GREECE for 2015, have been reduced by the

amount of approximately 15,3 m €.

• Issue of bonds

In 2015 ALUMINIUM OF GREECE has issued a) syndicated loan of € 288 million , which was held by

restructuring existing debt. The loan term is 4 years and b) syndicated loan of € 55 million , which was

held by restructuring existing debt. The loan term is 1.5 years.

• Decrease of share capital

On March 30, 2015, the Extraordinary General Meeting of ALUMINIUM OF GREECE resolved to the

decrease of its share capital by an amount of € 199.999.982 and the equall return to the shareholders in

cash, according to art. 4 par. 4 of L. 2190/1920. This reduction was made with the cancellation of

5,494,505 shares of nominal value € 36,40 each. After this reduction, the share capital of the Company

will amount to € 14.760.018, divided into 405.495 shares with a nominal value of € 36,40 each. The

reduction of share capital has been approved by the Attica Region, Athens North Sector at April 21,

2015.

V. BUSINESS RISK MANAGEMENT

Aims and management polices of business risk

The Company's activities give rise to multiple financial risks, including the current and interest rate

related risks, the volatility in market prices, credit risks and liquidity risks. The Company's risk

management program aims at containing potential negative influence to its financial results, as this may


arise from the inability to predict financial markets and the volatility with respect to cost and sales

variables.

The essential risk management policies are determined by the Company's Management. The risk

management policy is applied by the Corporate Treasury Department. The risk management which is

being created by the main operational activities of the Company, identified and managed by the

Corporate Treasury Department.

Credit Risk

The Company does not exhibit any considerable concentration of credit risk in any of the contracted

parties. Credit risk originates from available cash and cash equivalents, derivative financial instruments

and deposits at banks and financial institutions; also from exposure to client derived credit risk.

Regarding commercial and other claims, the Company is not theoretically exposed to significant credit

risks, as of the multifaceted nature of the Company's activities, there is no significant concentration of

credit risk with respect to its commercial requirements, as this is allocated over a high number of clients.

However, the atypical conditions that dominate the Greek market and several other markets in Europe

are forcing the Company to constantly monitor its business claims and also to adopt policies and

practices to ensure that such claims are collected. By way of example, such policies and practices include

insuring credits where possible; pre-collection of the value of product sold to a considerable degree;

safeguarding claims by collateral loans on customer reserves; and receiving letters of guarantee.

To minimize credit risk on cash reserves and cash equivalents; in financial derivate contracts; as well as

other short term financial products, the Company specifies certain limits to its exposure on each

individual financial institution and only engages in transactions with creditworthy financial institutions of

high credit rating.

The tables below summarize the maturity profile of the Company's financial assets as at 31.12.2015 and

31.12.2014 respectively:

(Amounts in €)

Non past due but

not impaired

Liquidity Risk Analysis -

Trade Receivables 0-3 months 3-6 months 6-12 months > 1 year

2015 27.425.525 8.859.189 674.779 2.132.427 53.938.209 93.030.128

2014 11.816.184 3.817.369 - - 64.327.775 79.961.329

ALUMINIUM OF GREECE

Past due but not impaired

Total


Liquidity Risk

The liquidity risk is linked to the need to sufficiently finance the Company's activity and growth. The

relevant liquidity requirements are the subject of management through the meticulous monitoring of

debts of long term financial liabilities and also of payments made on a daily basis.

The Company ensures the provision of adequate credit facilities available so as to cover short term

business requirements. In addition, funds for long term solvency needs shall be ensured through an

adequate amount of borrowed capital and the ability of selling long term financial assets.

The maturity of financial liabilities in December 31, 2015 and 2014 for the Company pictured as follows:

Capital Control imposition in Greece

The Greek government and the Institutions, after almost five months of negotiations, failed to reach an

agreement until the extended Greek program expired on the 30th of June 2015. During said period a

continuous and escalated leak of bank deposits occurred as a result of the increasing uncertainty. Said

fact, along with the decision of the European Central Bank (ECB) for no further increase in the

Emergency Liquidity Assistance (ELA), led to the Legislative Act (L.A.) of the 28th of July 2015 that

introduced the impose of capital controls along with a Bank holiday period. With a later L.A. on the 18th

of July 2015, the Greek government decided the termination of the Bank holiday, but retained the

measure of capital controls.

Liquidity Risk Analysis - Liabilities

2015

up to 6

months

6 to 12

months1 to 5 years after 5 years Total

(Amounts in €)

Long Term Loans - - 242.666.895 - 242.666.895

Short Term Loans 39.303.711 57.637.111 - - 96.940.821

Trade and other payables 131.212.065 492.691 - - 131.704.756

Other payables 19.616.300 45.405.545 - - 65.021.846

Current portion of non-current l iabil ities 15.000.000 15.000.000 - - 30.000.000

Total 205.132.076 118.535.347 242.666.895 - 566.334.318

ALUMINIUM OF GREECE

Liquidity Risk Analysis - Liabilities

2014

up to 6

months

6 to 12

months1 to 5 years after 5 years Total

(Amounts in €)

Long Term Loans - - 111.790.367 - 111.790.367

Short Term Loans 18.802.682 29.325.389 - - 48.128.071

Trade and other payables 128.319.244 25.524.302 - - 153.843.546

Other payables 15.382.577 1.343.088 - - 16.725.665

Current portion of non-current l iabil ities 10.432.750 10.432.750 - - 20.865.500

Total 172.937.253 66.625.529 111.790.367 - 351.353.149

ALUMINIUM OF GREECE


The Company monitored and still does said developments very closely, taking every necessary measure

to safeguard its going concern. Through the strength of its international profile and export orientation,

the Company copes with existing difficulties, supports the liquidity of the Greek system and achieves a

smooth and normal operation for all its sectors of activity.

Market Risk

Exchange rate risk

The Company develops activity at international level and is therefore exposed to exchange rate risk that

arises mainly from the US dollar. Such risk primarily stems from commercial transactions in foreign

currency as well as from net investments in foreign financial entities. For the management of such risk,

the Group’s Financial Management Department establishes financial derivative and non-derivative

instruments with financial organizations.

The Company’s exposure to commodities price risk and the corresponding sensitivity may depending on

the transaction’s quantity in foreign currency as well the level of the prices. However, the following

analysis is considered representative of the Company's exposure to this risk for the year 2015.

Commodity’s Price Risk

Goods prices that are mainly determined by international markets and global offer and demand result in

the Company’s exposure to the relevant prices fluctuation risk.

Goods’ prices are connected both to variables that determine revenues (e.g. metal prices at LME) and to

the Company’s cost (e.g. natural gas prices). Due to its activity, the Company is exposed to price

fluctuation of aluminium (AL), fuel oil as well as to price fluctuation of natural gas, as production cost.

As regards price fluctuation of metals, the Company’s policy is to minimize risk by using financial

derivative instruments (forward deals commodity fulfilling contracts).

The Company's exposure to commodities price risk and the corresponding sensitivity may vary

depending on the volume of transactions and price levels. However, the following analysis is considered

representative of the Company's exposure to this risk for the year 2015.

Interest rate risk

The Company’s assets that are exposed to interest rate fluctuation primarily concern cash and cash

equivalents. The Company’s policy as regards financial assets is to invest its cash in floated interest rates

so as to maintain the necessary liquidity while achieving satisfactory return for its shareholders. In

addition, for the totality of its bank borrowing, the Company uses floating interest rate instruments.


Depending on the level of liabilities in floating interest rate, the Company proceeds to the assessment of

interest rate risk and when necessary examines the necessity to use interest bearing financial derivative

instruments.

The Company’s policy consists in minimizing its exposure to interest bearing cash flow risk as regards

long-term funding.

Effect from risk factors and sensitivities analysis

The effect from the above mentioned factors to Company’s operating results, equity and net results

presented in the following table:

In relation to the risk from interest rate fluctuation, it is noted that an increase of five (5) basis points

presume a decrease of €1.0 million on net results and Equity.

The Company’s exposure in price risk and therefore sensitivity may vary according to the transaction

volume and the price level. However the above sensitivity analysis is representative for the Company

exposure in 2015.

VI. CORPORATE GOVERNANCE

The Company has adopted the principles of corporate governance as set forth in current Greek

legislation and international practice. As a set of rules, principles and control mechanisms under which a

company is organized and managed, Corporate Governance seeks to promote transparency for investors

and to safeguard the interests of shareholders and all persons connected with company operation.

$/t + 50 - 50

EBITDA mil € 9,0 -9,0

Net Results mil € 9,0 -9,0

Equity mil € 9,0 -9,0

€/$ - 0,05 + 0,05

EBITDA mil € 15,0 -15,0


Equity mil € 14,7 -14,7

$/t - 50 + 50

EBITDA mil € 0,3 -0,3


Equity mil € 0,3 -0,3

€/MWh - 5 + 5

EBITDA mil € 13,0 -13,0


Equity mil € 13,0 -13,0

Fuel Oil Price (FOB MED)

Natural Gas

LME AL (Alouminium)

Parity €/$


The Board of Directors of ALUMINIUM OF GREECE is the trustee of the corporate governance principles.

Today it is comprised of 1 executive and 4 non-executive member.

Internal auditing is a fundamental, necessary condition for corporate governance. ALUMINIUM OF

GREECE Internal Audit Division is an independent unit, which reports to the Group's Audit Committee. Its

duties include evaluating and improving the systems for risk management and internal auditing and also

verifying compliance with established policies and procedures as set in the company’s internal operation

regulations, the applicable legislation and regulatory provisions.

ALUMINIUM OF GREECE has an Internal Audit Division led by Theodoros Pelekis who is a full-time

employee engaged exclusively in internal auditing.

VII. RELATED PARTY TRANSACTIONS

In context of operational activity, materials, inventories and services originate from a number of related

parties of the company. The transactions with these companies take place on purely trade basis,

whereas no business transactions take place. ALUMINIUM OF GREECE did not participate in any

transaction of unusual nature or content which is significant for the Company it participates, or for

companies and the people closely related to it, and does not intend to participate in any kind of similar

transactions in the future. None of these transactions include special terms or conditions.

In the tables below presented the intercompany transactions and balances between the Company,

the BoD members for the fiscal year and the intercompany balances on 31.12.2015 and 31.12.2014 :

Transactions with other related party :

(Amounts in €) 31/12/2015 31/12/2014

Short term employee benefits

- Wages and Salaries and BOD Fees 7.870.319 4.957.856

- Insurance service cost 197.211 182.414

Total 8.067.530 5.140.269

Pension Benefits:

- Defined contribution scheme 51.516 3.647

Total 8.119.047 5.143.916

ALUMINIUM OF GREECE


VIII. DIVIDEND POLICY

On 1st December 2015 the Extraordinary General Meeting of Shareholders decides to approve the

payment of dividend to the Shareholder Company with the amount of 1,500,331.50 € or 3.70 € / share

from the part distribution of specially taxed reserve, from revaluation’s differences based on N.3229/04,

which is depicted into a) the Company’s books of taxation, the balance sheet accounts “revaluation’s

differences – Investment Grants” and b) the Company’s books, the balance sheet accounts “Retained

Earnings”. This particular decision is going to be confirmed during the next Regular General Meeting of

Shareholders where will be approved the Financial Statements of 2015. The Board of Directors proposal

(Amounts in €) 31/12/2015 31/12/2014

Other Related Parties 60.562.238 2.469.925

Total 60.562.238 2.469.925

Parent Company 13.523.340 14.410.084

Subsidiaries 4.626.275 2.248.733


Total 28.802.889 24.930.073

Subsidiaries 14.750 8.900

Associates 3.161.705 3.418.343

Other Related Parties 1.665.662 472.583

Total 4.842.116 3.899.826

Parent Company 6.000.000 17.223.190

Subsidiaries 43.021 60.839

Associates - 7.794


Total 8.332.039 19.301.213

Sales of goods

Purchases of goods

Sales of Services

Purchases of Services

ALUMINIUM OF GREECE

(Amounts in €) 31/12/2015 31/12/2014

Parent Company 2.812.014 -

Subsidiaries 5.200 2.282.618

Associates 71.959.242 68.804.241


Total 99.755.224 74.668.029

Parent Company 42.399.982 7.884.715

Subsidiaries 43.355 1.294.981

Associates 125.000 125.000


Management remuneration and fringes 5.002.572 1.349.890

Total 50.655.596 12.086.829

ALUMINIUM OF GREECE

Customers / Debitors

Suppliers / Creditors


to the General Meeting of Shareholders will be the distribution of dividend to the Shareholder Company

with the amount of 1,500,331.50 € or 3.70 € / share.

IX. POST BALANCE SHEET EVENTS

There are no other significant subsequent events, apart from the abovementioned, that relate to the

Company, which should be announced for the purposes of I.F.R.S.


D. ANNUAL FINANCIAL STATEMENTS

The attached Financial Statements are those approved by the Board of Directors of “ALUMINIUM OF

GREECE” at 21.03.2016 and have been published to the electronic address www.alhellas.gr.

It is noted that the published, in the press, brief financial data aim to provide the user with general

information but do not present a full picture of the Company’s financial results and position and cash

flows, according to International Accounting Standards.


I. Statement of Financial Position

The notes on pages 59 to 86 are an integral part of these financial statements.

(Amounts in €) Note 31/12/2015 31/12/2014

Tangible Assets 6.1 569.660.176 563.727.352

Intangible Assets 6.2 756.897 245.141

Investments in Subsidiary Companies 6.3 17.509.351 17.509.351

Investments in Associate Companies 6.4 500.000 500.000

Deferred Tax Receivables 6.5 8.764.968 12.067.798

Other Long-term Receivables 6.6 160.835 161.594

Non current assets 597.352.227 594.211.236

Total Stock 6.7 98.687.706 88.742.386

Trade and other receivables 6.8 93.030.128 79.961.329

Other receivables 6.9 109.077.328 99.727.544

Financial assets at fair value through profit or loss 6.10 926.667 -

Cash and cash equivalents 6.12 13.533.585 3.206.357

Current assets 315.255.413 271.637.616

Assets 912.607.640 865.848.852

Share capital 6.13 14.760.018 214.760.000

Fair value reserves 6.13 (137.351) (957.591)

Other reserves 6.13 55.071.431 55.612.495

Retained earnings 6.13 173.223.889 142.732.982

Equity 242.917.987 412.147.886

Long-term debt 6.15 242.666.895 111.790.367

Deferred Tax Liability 6.5 45.195.611 40.543.922

Liabilities for pension plans 6.14 14.704.030 14.686.187

Other long-term l iabilities 6.16 28.244.416 28.147.343

Provisions 6.17 12.146.826 12.651.024

Non-Current Liabilities 342.957.778 207.818.844

Trade and other payables 6.18 131.704.756 153.843.546

Tax payable 6.19 2.870.999 5.025.299

Short-term debt 6.15 96.940.821 48.128.071

Current portion of non-current liabilities 6.15 30.000.000 20.865.500

Derivatives 6.11 193.452 1.294.042

Other payables 6.20 65.021.846 16.725.665

Current Liabilities 326.731.875 245.882.123

Liabilities 669.689.653 453.700.966

Liabilities & Equity 912.607.640 865.848.852

ALUMINIUM OF GREECE


II. Income Statement


(Amounts in €) Note 1/1-31/12/2015 1/1-31/12/2014

Sales 5.1, 5.2 601.428.995 462.567.354

Cost of sales 6.21 (528.009.291) (415.985.797)

Gross profit 73.419.704 46.581.556

Other operating income 6.23 3.335.070 19.657.318

Distribution expenses 6.22 (1.260.053) (904.255)

Administrative expenses 6.22 (11.341.515) (11.712.643)

Other operating expenses 6.23 (4.607.854) (16.676.940)

Earnings before interest and income tax 59.545.353 36.945.038

Financial income 6.24 4.695.004 6.478.346

Financial expenses 6.24 (20.126.088) (21.955.302)

Other financial results 6.25 (3.486.578) (2.209.999)

Profit before income tax 40.627.690 19.258.083

Income tax expense 6.27 (8.661.783) (4.291.933)

Profit for the period 31.965.907 14.966.150


Attributable to:

Equity holders of the parent 31.965.907 14.966.150

Earnings before income tax,financial results,depreciation and amortization (A) 88.063.378 65.001.361

Oper.Earnings before income tax,financial results,depreciation and amortization (B) 88.063.378 65.001.361

Earnings before interest and income tax 59.545.353 36.945.038



(A)Definition of line item: Earnings before income tax,financ results,depr&amort


Plus: Financial results 18.917.663 17.686.955

Plus: Depreciation 28.518.025 28.056.323

Earnings before income tax,financial results,depreciation and amortization 88.063.378 65.001.361

(B)Definition of line item: OperEarnings before income tax,financ.res,depr&amort


Plus: Financial results 18.917.663 17.686.955

Plus: Depreciation 28.518.025 28.056.323

Subtotal 88.063.378 65.001.361

Oper.Earnings before income tax,financial results,depreciation and amortization 88.063.378 65.001.361

ALUMINIUM OF GREECE

Summury of Results from

continuing operations


IΙΙ. Statement Of Comprehensive Income


(Amounts in €) 31/12/2015 31/12/2014

Net Profit/(Loss) For The Period 31.965.907 14.966.150

Amounts not reclassified to the income statement in subsequent period:

Actuarial Gain / (Losses) (644.455) (2.180.330)

Deferred Tax From Actuarial Gain / (Losses) 103.391 336.451

Amounts reclassified to the income statement in subsequent period

Cash Flow Hedging Reserve 1.100.589 (597.055)

Deferred Tax From Cash Flow Hedging Reserve (280.350) -

Other Comprehensive Income 279.175 (2.440.935)

Total Comprehensive Income For The Period 32.245.084 12.525.215

ALUMINIUM OF GREECE


IV. Company Statement of Changes in Equity


(Amounts in €)Share capital

Fair value

reserves

Other

reserves

Retained

earnings Total

Opening Balance 1st January 2014, according to IFRS

(as published) 214.760.000 (696.986) 57.792.824 127.766.832 399.622.671

Change In Equity

Transactions With Owners - - - - -

Net Profi t/(Loss ) For The Period - - - 14.966.150 14.966.150

Cash Flow Hedging Reserve - (597.055) - - (597.055)

Deferred Tax From Actuaria l Gain / (Losses) - 336.451 - - 336.451

Actuaria l Ga in / (Losses) - - (2.180.330) - (2.180.330)

Total Comprehensive Income For The Period - (260.605) (2.180.330) 14.966.150 12.525.215

Closing Balance 31/12/2014 214.760.000 (957.591) 55.612.495 142.732.982 412.147.886

(Amounts in €)Share capital

Fair value

reserves

Other

reserves

Retained

earnings Total

Opening Balance 1st January 2015, according to IFRS

(as published) 214.760.000 (957.591) 55.612.495 142.732.982 412.147.886

Change In Equity

Dividends Pa id - - - (1.475.000) (1.475.000)

Increase / (Decreas e) Of Share Capi ta l (199.999.982) - - - (199.999.982)

Transactions With Owners (199.999.982) - - (1.475.000) (201.474.982)

Net Profi t/(Loss ) For The Period - - - 31.965.907 31.965.907

Cash Flow Hedging Reserve - 1.100.589 - - 1.100.589

Deferred Tax From Actuaria l Gain / (Losses) - - 103.391 - 103.391

Actuaria l Ga in / (Losses) - - (644.455) - (644.455)

Deferred Tax From Cash Flow Hedging Reserve - (280.350) - - (280.350)

Total Comprehensive Income For The Period - 820.240 (541.063) 31.965.907 32.245.084

Closing Balance 31/12/2015 14.760.018 (137.351) 55.071.431 173.223.889 242.917.987

ALUMINIUM OF GREECE


V. Cash Flow Statement


(Amounts in €) Note 1/1-31/12/2015 1/1-31/12/2014

Cash flows from operating activities 6.28 20.421.348 17.271.603

Interest paid (20.110.190) (20.549.554)

Taxes paid - (442.858)

Net Cash flows continuing operating activities 311.158 (3.720.810)

Net Cash flow from continuing investing activities

Purchases of tangible assets (24.696.117) (16.515.219)

Purchases of intangible assets (297.128) (385)

Purchase of financial assets at fair value through profit and loss (2.000.000) -

Sale of financial assets at fair value through profit and loss 1.109.550 -

Interest received 310.071 142.114

Grants received 599.314 -

Other cash flows from investing activities 759 23.864

Net Cash flow from continuing investing activities (24.973.551) (16.349.626)

Net Cash flow from continuing financing activities

Dividends payed to parent's shareholders (1.475.000) -

Return of share capital to shareholders (157.600.000) -

Proceeds from borrowings 215.460.620 20.204.394

Repayments of borrowings (21.396.000) (5.655.000)

Net Cash flow from continuing financing activities 34.989.620 14.549.394

Net (decrease)/increase in cash and cash equivalents 10.327.227 (5.521.042)

Cash and cash equivalents at beginning of period 3.206.357 8.727.400

Net cash at the end of the period 13.533.585 3.206.357

ALUMINIUM OF GREECE


E. NOTES ON THE FINANCIAL STATEMENTS

1. General Information

“ALUMINIUM OF GREECE” is located at the Amarousion Municipality (8 Artemidos Str., Marousi, P.C. 151

25).

The Company is registered in the Athens Prefecture - North Sector, with Company’s Registration Number

59413/01 ΑΤ/Β/05/228 (07). The General Commercial Register number is: 6550901000.

The company’s website is www.alhellas.gr

The financial statements, for the period which has ended 31/12/2015 (including the syncretic elements

for the period which has ended 31/12/2014), has been approved for publication by the Board of

Directors of the company at 21 March 2016 and are pending definitive approval by the Annual General

Shareholders’ Meeting.

1.2 Company’s purpose

The company’s purpose, according to article 2 of the Articles of Association, is the production and

construction of alumina and aluminium in Greece and their trade in any country, the production and

trade of any source of energy as well as the purchase and trade of Greenhouse Gas Emission Allowances

in Greece and abroad and the provision of services.

Moreover, the company has as a purpose the research, extraction and process of any ore material and

metal in Greece and their trade in any country.

The construction and operation of plumbing, sewerage and other related facilities to serve the purposes

of the Company and / or other physical and / or legal persons who cooperate with it and whose facilities

are adjacent to those of ALUMINIUM OF GREECE.

The production and sale of steam, water (deionized indicative, fire, etc.) as well as the availability of

industrial and potable water to natural and / or legal persons who cooperate with the Company and

whose premises adjacent to those of the Company, as well as the provision of services related to the

above physical and / or legal entities.

The company, in order to achieve the above and in a more general manner, has the right to acquire

licenses or metal research and exploitation, any grants, to acquire, lease and establish, shape and

exploit mines and pits, establish, acquire, lease, and develop factories and industrial branches, as well as

any kind of real estate or equipment. To acquire, to take, to deposit, set to action, exploit and grant

patent diplomas, and diploma licenses, industrial methods and signs. To acquire, lease, develop, and

exploit rural and forest areas, as well services and land and sea transport businesses, an in general do

anything that might contribute in the achieving its purpose.

The company may also proceed to:


a) Construction and exploitation of electricity production stations as well as the trade of electricity in

Greece and abroad. For this purpose the company has begun utility studies of production processes,

exploitation of electricity production stations and Heat of any kind as well as studies of trade exploitation

of electricity in Greece and abroad. The company invests and participates in investments, constructs,

operates and exploits stations and electricity and Heat plants with the purpose to trade in Greece and

abroad.

b) The supply of services to third parties in relation to study, production and exploitation of

electricity.

c) Acquisition, storage, vaporization, transportation, distribution and transferring to third parties

Natural Gas (Liquefied or not) that origins from domestic deposits or imported from abroad and

generally participating in any kind of transaction related to Natural Gas (Liquefied or not).

The company may also participate, for similar purposes, in any form, in any underlying or future

commendation of a company of any kind, with any purpose, in either domestic or foreign soil, to

establish subsidiaries and to enter trusts of any kind, in either domestic or foreign soil, to cooperate in

any way with either physical or legal entities that pursue similar purposes or coherent to those of the

company.

Moreover, the company is capable of supplying services related to market research, analyses of

investment programs, studies and designs, entrustment, supervision and management, risk

management and strategic programming, development and organization of any consulting company in

any of the related sectors of production and metal trade, energy and related activities.

2. Basis for preparation of the financial statements

The consolidated financial statements of ALUMINIUM OF GREECE as of December 31st 2015 covering

the entire 2015 fiscal year, have been compiled based on the historic cost principle as is amended by the

readjustment of specific asset and liability items into market values, the going concern principle and are

in accordance with the International Financial Reporting Standards (IFRS) that have been issued by the

International Accounting Standards Board (IASB) and their interpretations that have been issued by the

International Financial Reporting Interpretations Committee (I.F.R.I.C.) of the IASB. The accompanying

standalone financial statements are compiled buy demand of the statutory law 2190/1920.

According to the IFRS, the preparation of the Financial Statements requires estimations during the

application of the company’s accounting principles. Important admissions are presented wherever it has

been judged appropriate.

The reporting currency is Euro (currency of the home country ALUMINIUM OF GREECE) and all the

amounts depicted in euro, except where stated otherwise.


3. Basic accounting principles

The accounting principles, applied by the Company for the reporting period are consistent with the

accounting principles applied for the fiscal year 2014.

3.1 New and amended accounting standards and interpretations of IFRIC

New Standards, Interpretations, Revisions and Amendments to existing Standards that are

effective and have been adopted by the European Union

The following amendments and interpretations of the IFRS have been issued by IASB and their

application is mandatory from or after 01/01/2015.

The most important standards and interpretations are mentioned bellow:

Annual Improvements cycle 2011-2013 (effective for annual periods starting on or after

01/01/2015

In December 2013, the IASB issued Annual Improvements to IFRSs 2011-2013 Cycle, a collection of

amendments to IFRSs, in response to four issues addressed during the 2011-2013 cycle. The

amendments are effective for annual periods beginning on or after 1 July 2014, although entities are

permitted to apply them earlier. The issues included in this cycle are the following: IFRS 1: Meaning of

effective IFRSs, IFRS 3: Scope exceptions for joint ventures; IFRS 13: Scope of paragraph 52 (portfolio

exception); and IAS 40: Clarifying the interrelationship of IFRS 3 Business Combinations and IAS 40

Investment Property when classifying property as investment property or owner-occupied property. The

above have no impact on the Company’s Financial Statements.

Defined Benefit Plans: Employee Contributions (Amendments to IAS 19) (effective for

annual periods starting on or after 01/02/2015)

In November 2013, the IASB published narrow scope amendments to IAS 19 “Employee Benefits”

entitled Defined Benefit Plans: Employee Contributions (Amendments to IAS 19). The narrow scope

amendments apply to contributions from employees or third parties to defined benefit plans. The

objective of the amendments is to simplify the accounting for contributions that are independent of the

number of years of employee service, for example, employee contributions that are calculated according

to a fixed percentage of salary. The above have no impact on the Company’s Financial Statements.


01/02/2015)


In December 2013, the IASB issued Annual Improvements to IFRSs 2010-2012 Cycle, a collection of

amendments to IFRSs, in response to eight issues addressed during the 2010-2012 cycle. The

amendments are effective for annual periods beginning on or after 1 July 2014, although entities are

permitted to apply them earlier. The issues included in this cycle are the following: IFRS 2: Definition of

‘vesting condition’, IFRS 3: Accounting for contingent consideration in a business combination, IFRS 8:

Aggregation of operating segments, IFRS 8: Reconciliation of the total of the reportable segments’

assets to the entity’s assets, IFRS 13: Short-term receivables and payables, IAS 7: Interest paid that is

capitalised, IAS 16/IAS 38: Revaluation method proportionate restatement of accumulated depreciation

and IAS 24: Key management personnel. The above have no impact on the Company’s Financial

Statements.

Amendment to IAS 27: “Equity Method in Separate Financial Statements» (effective for

annual periods starting on or after 01/01/2016)

In August 2014, the IASB published narrow scope amendments to IAS 27 “Equity Method in Separate

Financial Statements “. Under the amendments, entities are permitted to use the equity method to

account for investments in subsidiaries, joint ventures and associates in their separate Financial

Statements – an option that was not effective prior to the issuance of the current amendments. The

above have no impact on the Company’s Financial Statements.


01/01/2016)

In September 2014, the IASB issued Annual Improvements to IFRSs 2012-2012 Cycle, a collection of

amendments to IFRSs, in response to four issues addressed during the 2012-2014 cycle. The

amendments are effective for annual periods beginning on or after 1 January 2016, although entities are

permitted to apply them earlier. The issues included in this cycle are the following: IFRS 4: Changes in

methods of disposal, IFRS 7: Servicing Contracts and Applicability of the amendments to IFRS 7 to

Condensed Interim Financial Statements, IAS 19: Discount rate: regional market, and IAS 34: Disclosure

of information “elsewhere in the interim financial report”. The Company will examine the impact of the

above on its Financial Statements.

Amendments to IFRS 11: Accounting for Acquisitions of Interests in Joint Operations

(effective for annual periods starting on or after 01/01/2016)

In May 2014, the IASB issued amendments to IFRS 11. The amendments add new guidance on how to

account for the acquisition of an interest in a joint operation that constitutes a business and specify the


appropriate accounting treatment for such acquisitions. The Company will examine the impact of the

above on its Financial Statements.

Amendments to IAS 1: « Disclosures Initiative» (effective for annual periods starting on or

after 01/01/2016)

In December 2014, the IASB issued amendments to IAS 1.The aforementioned amendments address

settling the issues pertaining to the effective presentation and disclosure requirements as well as the

potential of entities to exercise judgment under the preparation of financial statements. The Company

will examine the impact of the above on its Financial Statements.

Amendments to IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation

and Amortisation (effective for annual periods starting on or after 01/01/2016)

In May 2014, the IASB published amendments to IAS 16 and IAS 38. IAS 16 and IAS 38 both establish

the principle for the basis of depreciation and amortization as being the expected pattern of

consumption of the future economic benefits of an asset. The IASB has clarified that the use of revenue-

based methods to calculate the depreciation of an asset is not appropriate because revenue generated

by an activity that includes the use of an asset generally reflects factors other than the consumption of

the economic benefits embodied in the asset. The Company will examine the impact of the above on its

Financial Statements.

New Standards and Interpretations that have not been applied yet or have not been

adopted by the European Union.

IFRS 14 “Regulatory Deferral Accounts” (effective for annual periods starting on or after

01/01/2016)

In January 2014, the IASB issued a new standard, IFRS 14. The aim of this interim Standard is to

enhance the comparability of financial reporting by entities that are engaged in rate-regulated activities.

Many countries have industry sectors that are subject to rate regulation, whereby governments regulate

the supply and pricing of particular types of activity by private entities. The Company will examine the

impact of the above on its Financial Statements. The above have not been adopted by the European

Union.

Amendments to IFRS 10 and IAS 28: “Sale or Contribution of Assets between an Investor

and its Associate or Joint Venture” (effective for annual periods starting on or after

01/01/2016)


In September 2014, the IASB published narrow scope amendments to IFRS 10 and IAS 28 “Sale or

Contribution of Assets between an Investor and its Associate or Joint Venture”. The amendments will be

applied by entities prospectively in respect of sales or contribution of assets performed in the annual

periods starting on or after 01/01/2016. Earlier application is permitted, given that this fact is relatively

disclosed in the financial Statements. The Company will examine the impact of the above on its Financial

Statements. The above have not been adopted by the European Union.

Amendments to IFRS 10, IFRS 12 and IAS 28: “Investment Entities: Applying the

Consolidated Exception effective for annual periods starting on or after 01/01/2016)

In December 2014, the IASB published narrow scope amendments to IFRS 10, IFRS 11 and IAS 28. The

aforementioned amendments introduce explanation regarding accounting requirements for investment

entities, while providing exemptions in particular cases, which decrease the costs related to the

implementation of the Standards. The Company will examine the impact of the above on its Financial


Amendment to IAS 12 Income Taxes: “Recognition of Deferred Tax Assets for Unrealised

Losses” (effective for annual periods starting on or after 01/01/2017)

In January 2016, the IASB published narrow scope amendments to IAS 12. The objective of this

amendment is to clarify the accounting for deferred tax assets for unrealised losses on debt instruments

measured at fair value. The Company will examine the impact of the above on its Financial Statements.

The above have not been adopted by the European Union.

IFRS 9 “Financial Instruments” (effective for annual periods starting on or after

01/01/2018)

In July 2014, the IAB issued the final version of IFRS 9. This version brings together the classification

and measurement, impairment and hedge accounting models and presents a new expected loss

impairment model and limited amendments to classification and measurement for financial assets. The

Company will examine the impact of the above on its Financial Statements. The above have not been

adopted by the European Union.

IFRS 15 “Revenue from Contracts with Customers” (effective for annual periods starting on

or after 01/01/2018)

In May 2014, the IASB issued a new standard, IFRS 15. The Standard fully converges with the

requirements for the recognition of revenue in both IFRS and US GAAP. The new standard will

supersede IAS 11 “Construction Contracts”, IAS 18 “Revenue” and several revenue related


interpretations. The Company will examine the impact of the above on its Financial Statements. The

above have not been adopted by the European Union.

IFRS 16 “Leases” (effective for annual periods starting on or after 01/01/2019)

In January 2016, the IASB issued a new standard, IFRS 16. The objective of the project was to develop

a new Leases Standard that sets out the principles that both parties to a contract, ie the customer

(‘lessee’) and the supplier (‘lessor’), apply to provide relevant information about leases in a manner that

faithfully represents those transactions. To meet this objective, a lessee is required to recognize assets

and liabilities arising from a lease. The Company will examine the impact of the above on its Financial


3.2 Consolidation

Subsidiaries: All the companies that are managed or controlled, directly or indirectly, by another

company (parent) either through the majority of voting rights or through its dependence on the know-

how provided from the Company.

The acquisition of a subsidiary by the Company is accounted for using the purchase method. The

acquisition cost of a subsidiary is the fair value of the assets given as consideration, the shares issued

and the liabilities undertaken on the date of the acquisition plus any costs directly associated with the

transaction. The individual assets, liabilities and contingent liabilities that are acquired during a business

combination are valued during the acquisition at their fair values regardless of the participation

percentage. The acquisition cost over and above the fair value of the individual assets acquired is

booked as goodwill. If the total cost of the acquisition is lower than the fair value of the individual assets

acquired, the difference is immediately transferred to the income statement.

The Company, in the basis of IAS 27 < Consolidated and Separate Financial Statements>, has chosen to

implement the exemption of consolidation and draws only separate financial statements.

The financial statements of the Company ALUMINIUM OF GREECE are included in the consolidated

financial statements of the Group MYTILINEOS SA, that is located in Greece and owns 100% of

ALUMINIUM OF GREECE and are consolidated under the method of full consolidation. The reader, who

wants to have access to the financial statements, can visit the site www.mytilineos.gr.

Associates: Associates are companies on which the Company can exercise significant influence but not

“control” and which do not fulfill the conditions to be classified as subsidiaries or joint ventures. The

assumptions used by the Company imply that holding a percentage between 20% and 50% of a


company’s voting rights suggests significant influence on the company. Investments in associates are

initially recognized at cost and are subsequently valued using the Equity method. At the end of each

period, the cost of acquisition is increased by the Company’s share in the associates’ net assets change

and is decreased by the dividends received from the associates.

Any goodwill arising from acquiring associates is contained in the cost of acquisition. Whether any

impairment of this goodwill occurs, this impairment decreases the cost of acquisition by equal charge in

the income statement of the period.

Unrealized profits from transactions between the Company and its associates are eliminated according to

the Company’s percentage ownership in the associates. Unrealized losses are eliminated, except if the

transaction provides indications of impairment of the transferred asset. The accounting principles of the

associates have been adjusted to be in conformity to the ones adopted by the Company.

3.3 Significant accounting judgments, estimates and assumptions

The preparation of financial statements in accordance with IFRS requires management to make

judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, as well

as the disclosure of contingent assets and liabilities at the date of the financial statements and the

reported amounts of revenue and expenses during the reporting period. Actual results could differ from

those estimates.

Estimates and judgments are continually evaluated and are based on historical experience and other

factors, including expectations of future events that are believed to be reasonable under the

circumstances.

3.3.1 Accounting decisions

During the implementation procedure for accounting policies, decisions are made by the management,

which relate to the following:

• Classification of investments

Management classifies Financial assets in the scope of IAS 39 based on their nature and their

characteristics at the following four categories:

• financial assets at fair value through profit and loss,

• loans and receivables,

• held-to-maturity investments, and

• available-for-sale investments.


Financial assets are recognized initially at cost, which represents their fair value (plus, in certain cases,

directly attributable transaction costs). The Company determines the classification of its financial assets

after initial recognition and, where allowed and appropriate, re-evaluates this designation at each

financial year-end.

(i) Financial assets at fair value through profit and loss: Financial assets are classified as held for

trading if they are acquired for the purpose of selling in the near term. Gains or losses on investments

held for trading are recognized in income.

(ii) Loans and receivables: Loans and receivables which are generated form the Company’s

operations (and are beyond the Company’s normal credit terms) are carried at amortized cost using the

effective interest method. Gains and losses are recognized in the income statement when the loans and

receivables are derecognized or impaired, as well as through the amortization process.

(iii) Held-to-maturity investments: Financial assets with fixed or determinable payments and fixed

maturity are classified as held-to-maturity when the Company has the positive intention and ability to

hold to maturity. Investments intended to be held for an undefined period are not included in this

classification. Held-to-maturity investments are carried at amortized cost using the effective interest

method. For investments carried at amortized cost, gains and losses are recognized in income when the

investments are derecognized or impaired, as well as through the amortization process.

• Recoverability of receivables accounts

Short term receivables are presented in their nominal value, net of provisions for potential non collectible

accounts, while long-term receivables (balances that deviate from the normal credit terms) are

measured at amortized cost based on the effective interest rate method.

At each balance sheet date all potentially uncollectible accounts are assessed individually for purposes of

determining the appropriate allowance for doubtful accounts. The balance of such allowance for doubtful

accounts is appropriately adjusted at each balance sheet date in order to reflect the possible risks. Any

amount written-off with respect to customer account balances is charged against the existing allowance

for doubtful accounts. Any amount provided for in respect to customer account balances is charged in

the profit and loss statement.

• Impairment of inventories

Provision for slow moving, damaged or obsolete inventories is made when necessary. The impairments

at the net realizable value of inventories are charged in the profit and loss statement in the period that

occur.

• Classification of a lease as operating or financial.

Leases where all the risks and rewards of ownership are retained by the lessor are classified as

operating leases. Payments made under operating leases (net of any incentives received from the lessor)


are charged to the income statement on a straight-line basis over the period of the lease. Leases of

property, plant and equipment where the Company has substantially all the risks and rewards of

ownership are classified as finance leases.

3.3.2 Assumptions and estimations

The presentation of the value of specific assets and liabilities in the financial statements requires the use

of estimations that are based on assumptions relating to the values and conditions not known with

certainty during the compilation date of the financial statements. The Company continuously evaluates

the estimations it makes based on historical data, the research of specialized consultants, the trends and

methods considered appropriate for the estimation of specific conditions as well as estimations regarding

how the assumptions made may change in the future.

The accounting principles, applied by the Company for the reporting period are consistent with the

accounting principles applied for fiscal year 2014. In addition to the abovementioned and more

specifically for the Annual Financial Statements of 2015 the following are noted.

• Possible reductions in Goodwill

The Company test goodwill for impairment annually and whenever events or circumstances make it

more likely than not that an impairment may have occurred, such as a significant adverse change in the

business climate or a decision to sell or dispose of a reporting unit. Determining whether an impairment

has occurred requires valuation of the respective reporting unit, which we estimate using a discounted

cash flow method. When available and as appropriate, we use comparative market multiples to

corroborate discounted cash flow results. In applying this methodology, we rely on a number of factors,

including actual operating results, future business plans, economic projections and market data.

If this analysis indicates goodwill impaired, measuring the impairment requires a fair value estimate of

each identified tangible and intangible asset. In this case we supplement the cash flow approach

discussed above with independent appraisals, as appropriate.

• Income Tax

ALUMINIUM OF GREECE is subject to income taxes in numerous jurisdictions. Significant estimates are

required in determining the provision for income taxes. There are many transactions and calculations for

which the ultimate tax determination is uncertain during the ordinary course of business. The Company

recognizes liabilities for anticipated tax audit issues based on estimates of whether additional taxes will

be due. Where the final tax outcome of these matters is different from the amounts that were initially

recorded, such differences will impact the income tax and deferred tax provisions in the period in which

such determination is made.


• Provisions

Doubtful accounts are reported at the amounts likely to be recoverable based on historical experience of

customer default. As soon as it is learned that a particular account is subject to a risk over and above

the normal credit risk (e.g., low creditworthiness of customer, dispute as to the existence or the amount

of the claim, etc.), the account is analyzed and written down if circumstances indicate the receivable is

uncollectible. Provisions for environmental rehabilitation are reported at the amounts that are likely to be

claimed against the Company in order to settle the liability.

• Contingencies

The Company is involved in litigation and claims in the normal course of operations. Management is of

the opinion that any resulting settlements would not materially affect the financial position of the

Company as at December 31, 2015. However, the determination of contingent liabilities relating to the

litigation and claims is a complex process that involves judgments as to the outcomes and interpretation

of laws and regulations. Changes in the judgments or interpretations may result in an increase or

decrease in the Company’s contingent liabilities in the future.

3.4 Group Structure

The structure of the Group at 31/12/2015 is as follows:

The Company, in the basis of IAS 27 < Consolidated and Separate Financial Statements>, has chosen to

implement the exemption of consolidation and draws only separate financial statements.

3.5 Significant information

During the reporting period, the Company proceeds to the following:

• Transitional mechanism for the Capacity Remuneration

In 31/12/2014 the transitional mechanism for the Capacity Remuneration expired and regarding the new

Flexibility Remuneration Mechanism, which is expected to come into force from 1/1/2015, the public

Company

Participation

rate %

Consolidation

method Participation

ALUMINIUM OF GREECE - Maroussi Holding

DELPHI DISTOMON S.A. - Maroussi 100% - Direct

DESFINA SHIPPING COMPANY - Maroussi 100% - Direct

DESFINA MARINE - Marshall Islands 100% - Indirect

MYTILINEOS FINANCIAL PARTNERS S.A. - Luxembourg 25% - Direct


consultation process has been completed from January 2015 and pending the approval of the DG

Competition of EU in order for the Regulatory Authority for Energy (RAE) to issue its relevant decision.

However, until the date of the annual financial statements of ALUMINIUM of GREECE, DG Competition

has not yet given its expected approval as it is still pending the response of the Greek Government’s

authorities in its final requests. As a result of that, the operating results before taxes, financials and

depreciation/amortization (EBITDA) of ALUMINIUM OF GREECE for 2015, have been reduced by the

amount of approximately 15,3 m €.

• Issue of bonds



held by restructuring existing debt. The loan term is 1.5 years..

• Decrease of share capital







2015.

3.6 Conversion to foreign currency

a) Functional and presentation currency

The financial statements of the Company are measured using the currency of the primary economic

environment in which the entity operates (functional currency).

The financial statements of ALUMINIUM OF GREECE are presented in Euro (€), which is the operational

currency of the company and all of the subsidiaries.

b) Transactions and Balances

Transactions in foreign currency are converted in the operational currency using currency par values that

applied at the date of the transactions.

Profit or losses from currency differences that arise from such transactions and from the conversion of

the remaining balances with currency par values at year end are recognized in the income statement

under “other income/(expense)”, Currency differences arising from non-currency figures evaluated at fair


value , are considered as part of the fair value and therefore they are recognized the same way as fair

value .

3.7 Segment reporting

A business segment is defined as a group of assets and operations engaged in providing goods and

services which are subject to different risks and returns than those of other business segments. In

identifying its operating segments, management generally follows the Company's service lines, which

represent the main products and services provided by the Company. According to IFRS 8 – Operating

Segments each one of these operating segments is managed separately as each of these service lines

requires different technologies and other resources as well as marketing approaches. For administrative

purposes, the Company is organized into three main business activities: a) Metallurgy - Alumina

Production, b) Metallurgy - Production of Aluminium and c) Production and Trading of Energy.

A geographical segment is engaged in providing products or services within a particular economic

environment that are subject to risks and returns that are different from those of segments operating in

other economic environments.

3.8 Recognition of income and expenses

Income: Income includes the fair value of goods and services sold, net of Value Added Tax, discounts

and returns. Intercompany revenue within the Company is eliminated completely. The recognition of

revenue is done as follows:

- Sale of goods: Sales of goods are recognized when the Company transfers goods to customers,

the goods are accepted by them and the collection of the resulting claim is reasonably assured.

- Provision of services: Income from the provision of services is accounted for in the period

during which the services are rendered, based on the stage of completion of the service in relation to

the total services to be rendered.

- Income Interest: Interest income is recognized on a time proportion basis using the effective

interest rate. When there is impairment of assets, their book value is reduced to their recoverable

amount which is the present value of the expected future cash flows discounted using the initial real

interest rate. Interest is then booked using the same interest rate calculated on the impaired (new book)

value.

- Income from assigned rights for use of tangible assets (Compensative benefits): The

fair value of the assigned rights is recognized as deferred income and is amortized through the income

statement according to the completion of the contracts for which these rights have been assigned.


When a receivable is impaired, the Company reduces the carrying amount to the amount expected to be

recovered, being the estimated future cash flow discounted at the original effective interest rate of the

instrument, and continues unwinding the discount as interest income. Interest income on impaired loans

is recognized using the original effective interest rate.

- Dividends: Dividends are accounted for as revenue when the right to receive payment is

established.

Expenses: Expenses are recognized in the results on an accrued basis. The payments made for

operating leases are transferred to the results as an expense, during the time the lease is used. Interest

expenses are recognized on an accrued basis.

Cost of capital: Borrowing liabilities are recorded initially on fair value, where bank expenses and

commissions are included.

The company management assumes that the interest rates in relation to the contracted loans equal the

current fair rates of the market and as a result, there is no need for any readjustment to the value that

they are presented. Any difference that may arise between the collection (net from all transaction costs)

and the repayment value is recorded in the income statement during the borrowing period.

Loan liabilities are categorized as short-term except from cases where the company has the right to

postpone the repayment of the liability for at least 12 months after the balance sheet date.

3.9 Intangible assets

The intangible assets include Goodwill, the rights of use of Property, plant and equipment, software

licenses, licenses for the production, installation and operation of renewable energy assets and thermal

energy assets, the environment rehabilitation expenditure and borrowing costs.

Goodwill on Acquisition: is the difference between the asset’s acquisition cost and fair value and the

net assets of the subsidiary / associate company as at the acquisition date. During the acquisition date,

the company recognizes this surplus value, emerged from acquisition, as an asset and presents it in

cost. This cost is equal to the amount by which the acquisition cost exceeds the company’s share in the

net assets of the acquired company.

After the initial recognition, the surplus value is valued at cost less any accumulated impairment losses.

The surplus value is not depreciated, but is reviewed on an annual basis for possible decrease in its

value (impairment), if there are events that indicate such a loss according to IAS 36.


Goodwill is allocated to cash-generating units for the purpose of impairment testing. A cash generated

unit is the smallest identifiable group of assets generating cash inflows independently and represents the

level used by the Company to organize and present each activities and results in its internal reporting.

Impairment is determined for goodwill by assessing the recoverable amount of the cash-generating

units, to which the goodwill relates. Where the recoverable amount (typically the value in use) of the

cash-generating units is less than their carrying amount an impairment loss is recognized. Impairment

losses relating to goodwill cannot be reversed in future periods. The Company performs its annual

impairment test of goodwill as at 31 December.

In the case where acquisition cost is less than the company’s stake in the acquired company’s net

assets, the former recalculates the acquisition cost and valuates the assets, liabilities and contingent

liabilities of the acquired company. Any difference prevailing after the recalculation is recognized directly

in the income statement as a profit.

Software: Software licenses are valued in cost of acquisition less accumulated depreciation.

Depreciation is calculated using the straight-line method during the assets’ useful life that range from 1

to 5 years.

Research and Development Expenses: Research and Development expenditures are recognized as

expenses when they are realized. The expenses which arise from the developing programs (related to

the design and the test of new or improved products) are capitalized if it is possible to produced future

economic benefit. The other development expenditures are booked as an expense in the results when

they are realized. Previous years’ development expenditures recognized as expenses, cannot be

capitalized in the future fiscal years. The capitalized development expenses are depreciated from the

beginning of the product’s economic life using the straight line method during the period of the product’s

future economic benefits.

Legal rights to explore mines: The legal rights to explore mines concern rights that the Company has

acquired mining mineral reserves in several geographical areas. In cost of the mining rights, apart from

nominal value of the rights, any cost that relates to the initial evaluation of the rehabilitation cost of the

area where work has been done, the commitment of the Company either during the acquirement of the

right or as a result of its use for a certain time period.

Land Stripping & Restoration expenses: Land Stripping & Restoration expenses are recognized as

intangible assets as they offer to the Company economic benefits and their depreciation performed

based on production method.


Emission Rights: The Company acquires CO2 emission rights in order to cover the liability arising from

the actual CO2 emissions of the production units. The liability is measured at fair value to the extent that

the Company has the obligation to cover its emissions by purchasing (after the set of any CO2

allowances held by free allocations). CO2 emission rights acquired and held are recognized as intangible

assets at cost less any accumulated impairment losses.

Borrowing costs: Borrowing costs that are directly attributable to the acquisition, construction or

production of a qualifying asset shall be capitalized as part of the cost of that asset. The amount of

borrowing costs eligible for capitalization shall be determined in accordance with IAS 23.

3.10 Tangible assets

Fixed assets are reported in the financial statements at acquisition cost or deemed cost, as determined

based on fair values as at the transition dates, less accumulated depreciations and any impairment

suffered by the assets. The acquisition cost includes all the directly attributable expenses for the

acquisition of the assets.

Subsequent expenditure is added to the carrying value of the tangible fixed assets or is booked as a

separate fixed asset only if it is probable that future economic benefits will flow to the Company and

their cost can be accurately and reliably measured. The repair and maintenance cost is booked in the

results when such is realized.

Upon sale of the tangible fixed assets, any difference between the proceeds and the book value are

booked as profit or loss to the results.

Depreciation of tangible fixed assets (other than Land which are not depreciated) is calculated using the

straight line method over their useful life, as follows:

� Buildings up to 40 years

� Mechanical equipment up to 30 years

� Cars 4 - 5 years

� Other equipment 10 - 20 years

Self-constructed tangible fixed assets constitute an addition to the acquisition cost of tangible assets at a

value that includes the direct cost of employee’s salaries (including the relevant employer’s

contributions), the cost of materials used and other general costs.

The residual values and useful economic life of tangible fixed assets are subject to reassessment at each

balance sheet date. When the book value of tangible fixed assets exceeds their recoverable amount, the

difference (impairment) is immediately booked as an expense in the income statement.


3.11 Impairment of Assets

Assets with an indefinite useful life are not depreciated and are subject to an impairment review

annually and when some events suggest that the book value may not be recoverable any resulting

difference is charged to the period’s results. Assets that are depreciated are subject to an impairment

review when there is evidence that their value will not be recoverable. The recoverable value is the

greater between the net sales value and the value in use. An impairment loss is recognized by the

company when the book value of these assets (or cash generating unit- CGU) is greater than its

recoverable amount.

Net sales value is the amount received from the sale of an asset at an arm’s length transaction in which

participating parties have full knowledge and participate voluntarily, after deducting any additional direct

cost for the sale of the asset, while value in use is the present value of estimated future cash flows that

are expected to flow into the company from the use of the asset and from its disposal at the end of its

estimated useful life.

3.12 Leases

Company as Lessee: Leases of fixed assets with which all the risks and benefits related with

ownership of an asset are transferred to the Company, regardless of whether the title of ownership of

the asset is eventually transferred or not, are finance leases. These leases are capitalized at the

inception of the lease at the lower of the fair value of the asset and the present value of the minimum

lease payments. Each lease payment is apportioned between the reduction of the liability and the

finance charge so that a fixed interest rate on the remaining financial liability is achieved. The relevant

liabilities from leases, net of financial expenses, are reported as liabilities. The part of the financial

expense that relates to finance leases is recognized in the income statement during the term of the

lease. Fixed assets acquired through finance leases are depreciated over the shorter of their useful life

and the lease term.

Lease agreements where the lessor transfers the right of use of an asset for an agreed period of time,

without transferring, however, the risks and rewards of ownership of the fixed asset are classified as

operating leases. Payments made with respect to operating leases (net of any incentives offered by the

lessor) are recognised in the income statement proportionately throughout the term of the lease.

Company as lessor: When fixed assets are leased through financial leasing, the present value of the

lease is recognized as a receivable. The difference between the gross amount of the receivable and its

present value is registered as a deferred financial income. The income from the lease is recognized in


the period’s results during the lease using the net investment method, which represents a constant

periodic return.

Fixed assets that are leased through operating leases are included in the balance sheet’s tangible assets.

They are depreciated during their expected useful life on a basis consistent with similar self-owned

tangible assets. The income from the lease (net of possible incentives given to the lessees) is recognized

using the constant method during the period of the lease.

3.13 Financial instruments

Financial instrument is any contract that creates a financial asset in an enterprise and a financial liability

or Equity instrument in another. The financial instruments of the Company are classified in the following

categories according to the substance of the contract and the purpose for which they were purchased.

i) Financial instruments valued at fair value through the income statement

These comprise assets that satisfy any of the following conditions:

- Financial assets that are held for trading purposes (including derivatives, except those that are

designated and effective hedging instruments, those that are acquired or incurred for the purpose of

sale or repurchase and, finally, those that are part of a portfolio of designated financial instruments).

- Upon initial recognition it is designated by the company as an instrument valued at fair value, with any

changes recognized through the Income Statement.

In the Balance sheet of the Company the exchanges and the assessment at fair value of derivatives they

are portrayed in separate items of Asset and Liabilities with titled « Derivatives Financial Assets ». The

changes at fair value of derivatives are registered in income statement.

ii) Loans and receivables

They include non-derivative financial assets with fixed or predefined payments, which are not traded in

active markets. The following are not included in this category (loans and receivables):

a) Receivables from down payments for the purchase of goods or services,

b) Receivables relating to tax transactions, which have been legislatively imposed by the state,

c) Any receivable not covered by a contract, which gives the company the right to receive cash, or other

financial fixed assets.

Loans and receivables are included in current assets, except those with a maturity date exceeding 12

months from the balance sheet date. The latter are included in the non-current assets.


(iii) Held-to-maturity investments: Financial assets with fixed or determinable payments and fixed

maturity are classified as held-to-maturity when the Company has the positive intention and ability to

hold to maturity. Investments intended to be held for an undefined period are not included in this

classification.

3.14 Inventories

Inventories include products, raw materials and goods that were acquired. The cost includes all

expenses that were made in order for inventories to reach their present position and condition, and

which are directly distributable to the production process, as well as a part of general expenses related

to production, which is absorbed based on the normal capabilities of the production facilities. Financial

costs are not taken into consideration.

At the balance sheet date, inventories are valued at the lower of acquisition cost and net realizable

value. Net realizable value is the estimated sales price during the normal course of the company’s

business less any relevant sales expenses and it is determined based on the current selling prices of

inventories and in line with the normal activity of the Company less any sale expenses, where necessary.

The cost of inventories is determined using the weighted average method.

3.15 Trade Receivables

Receivables from customers are initially booked at their fair value and are subsequently valued at their

amortized cost using the method of the effective interest rate, less the provision for impairment. In the

event that the amortized cost or the cost of a financial asset exceeds the present value, then this asset

is valued at its recoverable amount, i.e. at the present value of the future cash flows of the asset, which

is calculated using the real initial interest rate.

The relevant loss is immediately transferred to the period’s profit and loss. The impairment losses, i.e.

when there is objective evidence that the Company is unable to collect all the amounts owed based on

the contractual terms, are recognized in the income statement.

3.16 Cash and cash equivalent

Cash and cash equivalents include cash at bank and in hand as well as short term highly liquid

investments such as money market instruments and bank deposits. Money market instruments are

financial assets carried at fair value through profit or loss.

3.17 Share capital

Share capital is determined using the nominal value of shares that have been issued. Ordinary shares

are classified as Equity.


Expenses incurred for the issuance of shares reduce, after deducting the relevant income tax, the

proceeds from the issue. Expenses related to the issuance of shares for the purchase of companies are

included in the acquisition cost of the company acquired.

Where the Company purchases the Company’s equity share capital (Treasury shares), the consideration

paid, including any directly attributable incremental costs is deducted from equity attributable to the

Company’s equity holders until the shares are cancelled, reissued or disposed of. Where such shares are

subsequently sold or reissued, any consideration received, net of any directly attributable incremental

transaction costs, is included in equity attributable to the Company’s equity holders. Treasury stock does

not hold any voting rights.

3.18 Income tax & deferred tax

The tax for the period comprises current income tax and deferred tax, i.e. the tax charges or tax credits

that are associated with economic benefits accruing in the period but have been assessed by the tax

authorities in different periods. Income tax is recognized in the income statement of the period, except

for the tax relating to transactions that have been booked directly to Equity. In such case the related tax

is, accordingly, booked directly to Equity. Current income taxes include the short-term liabilities or

receivables from the fiscal authorities that relate to taxes payable on the taxable income of the period

and any additional income taxes from previous periods (tax audit differences).

Current taxes are measured according to the tax rates and tax laws prevailing during the financial years

to which they relate, based on the taxable profit for the year. All changes to the short-term tax assets or

liabilities are recognized as part of the tax expense in the income statement.

Deferred income tax is determined according to the liability method which results from the temporary

differences between the book value and the tax base of assets or liabilities. Deferred tax is not booked if

it results from the initial recognition of an asset or liability in a transaction, except for a business

combination, which when it occurred did not affect neither the accounting nor the tax profit or loss.

Deferred tax assets and liabilities are valued based on the tax rates that are expected to be in effect

during the period in which the asset or liability will be settled, taking into consideration the tax rates

(and tax laws) that have been put into effect or are essentially in effect up until the balance sheet date.

In the event where it is impossible to identify the timing of the reversal of the temporary differences, the

tax rate in effect on the day after the balance sheet date is used. Deferred tax assets are recognized to

the extent that there will be a future tax profit to be set against the temporary difference that creates

the deferred tax asset.

Deferred income tax is recognized for the temporary differences that result from investments in

subsidiaries and associates, except for the case where the reversal of the temporary differences is


controlled by the Company and it is possible that the temporary differences will not be reversed in the

foreseeable future.

Most changes in the deferred tax assets or liabilities are recognized as part of the tax expense in the

income statement. Only changes in assets or liabilities that affect the temporary differences are

recognized directly in the Equity of the Company, such as the revaluation of property value that results

in the relevant change in deferred tax assets or liabilities being charged against the relevant Equity

account.

3.19 Employee benefits

3.19.1 Short-term benefits

Short-term employee benefits (except post-employment benefits) monetary and in kind are recognized

as an expense when they accrue. Any unpaid amount is booked as a liability, while in the case where the

amount paid exceeds the amount of services rendered, the company recognizes the excess amount as

an asset (prepaid expense) only to the extent that the prepayment will lead to a reduction of future

payments or to reimbursement.

3.19.2 Post-employment benefits

Post-employment benefits comprise pensions or other benefits (life insurance and medical insurance) the

company provides after retirement as an exchange for the employees’ service with the company. Thus,

such benefits include defined contribution schemes as well as defined benefits schemes. The accrued

cost of defined contribution schemes is booked as an expense in the period it refers to.

• Defined contribution scheme

According to the defined contributions scheme, the (legal or implied) obligation of the Company is

limited to the amount that it has been agreed that it will contribute to the entity (i.e. pension fund) that

manages the contributions and provides the benefits. Thus the amount of benefits the employee will

receive depends on the amount the company will pay (or even the employee) and from the paid

investments of such contributions.

The payable contribution from the company to a defined contribution scheme is either recognized as a

liability after the deduction of the paid contribution, or as an expense.

• Defined benefits scheme

A Defined benefits scheme is a post-employment program that is not included in a defined contribution

scheme. Typically, it defines an amount of benefits that the employee is going to acquire after his


retirement based on factors such as the age, the years of service and the reimbursement. The liability

that is reported in the balance sheet with respect to this scheme is the present value of the liability for

the defined benefit less the fair value of the scheme’s assets (if there are such) and the changes that

arise from any actuarial profit or loss and the service cost. The commitment of the defined benefit is

calculated annually by an independent actuary with the use of the projected unit credit method. The

yield of long-term Greek Government Bonds is used as a discount rate.

Given the fiscal situation of that time, especially for the wide spreads of the Hellenic Bonds and the

financial crisis as well as for the long term predictive nature of the actuary liability, the discount rate

should be set at a lower level than it was on 31/12/2014. The corresponding discount rate used for the

31/12/2014 valuation was 2.50%, therefore, based on the above, the discount rate was set to 2.00%.

A Defined benefits scheme is based on various parameters, such as age, years of service, salary, specific

obligations for benefits payable. The provisions that concern the period are included in personnel costs

in the accompanying statements of income and consist of the current and past service cost, the relative

financial costs and any possible additional charges. Regarding unrecognized actuarial gains or losses, is

followed the revised IAS 19R, which includes a number of changes to accounting for defined benefit

plans, including:

- The recognition of actuarial gains / losses in other comprehensive income and permanent exclusion

from the income statement,

- Non-recognition of expected returns on investment of the program in the period but the recognition of

such interest on net liability / (asset) providing calculated using the discount rate used to measure the

defined benefit obligation,

- Recognition of past service cost in the income statement on the earlier of the dates or amend program

recognized when the related restructuring or terminal provision,

- Other changes would entail new disclosures, such as quantitative analysis.

3.20 Grants

The Company recognizes Government Grants that cumulatively satisfy the following criteria:

a) There is reasonable certainty that the company has complied or will comply to the conditions of the

grant and

b) It is probable that the amount of the grant will be received.

Government Grants are booked at fair value and are systematically recognized as revenues according to

the principle of matching the grants with the corresponding costs that they are subsidizing. Government


Grants that relate to assets are included in long-term liabilities as deferred income and are recognized

systematically and rationally as revenues over the useful life of the fixed asset.

3.21 Loans

Bank loans provide long-term financing for the operating activities of the company. All loans are initially

recognized at cost, which is the fair value of the exchange that is included apart from issuance cost in

relation to borrowing.

Loans are recorded as liabilities at the date the capital is received. Issuance expenses are included in the

income statement. At dates following the balance sheet dates, loans appear at the face unpaid value.

Interest expenses are recognized when paid and at the balance sheet date in the extent that these

expenses are used up and paid for. Loans are categorized as long-term, if they mature in more than a

year and in short-term in they mature in a year or less.

3.22 Provisions

Provisions are recognized when a current obligation is likely to lead to an outflow of financial assets form

the company when this can be valuated reliably. Provisions are reviewed during the date when each

balance sheet is compiled so that they may reflect the present value of the outflow that is expected to

be required for the settlement of the obligation. Contingent liabilities are not recognized in the financial

statements but are disclosed, except if the probability that there will be an outflow of resources that

embody economic benefits is very small. Contingent claims are not recognized in the financial

statements but are disclosed provided that the inflow of economic benefits is probable.

3.23 Dividend distribution

The distribution of dividends to the shareholders of the company is recognized as a liability in the

financial statements at the date on which the General Meeting of the shareholders approves the

distribution.

3.24 CO2 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 Company 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.


3.25 Hedging Accounting

The Company uses Derivative financial instruments such as Commodity Futures and Currency Forwards

in order to mitigate the risk related to its business activities along with the risk related to the funding of

such activities. At inception of the hedging transaction, the Company validates the hedging relationship

between the underlying and the hedging instrument as far as its risk management strategy is concerned.

The Company also verifies the hedging efficiency from the beginning of the hedging relationship and on

a continuing basis.

All derivative financial instruments are initially recognized at fair value as at the date of settlement and

are valued on a mark - to - market basis on each balance sheet date. The result of this valuation is

recognized as an asset when positive and as a liability when negative.

When a derivative financial instrument is no longer regarded as hedging instrument any difference in its

fair value is recognized in profit and loss.

There are three kinds of hedges:

A. Fair Value Hedging

Fair value hedging is regarded when hedging the exposure in the fluctuations of the fair value of a

recognized asset, liability, contingent liability or part of them that could have a negative impact on

results.

When hedging accounting, concerning fair value hedge, is followed then any profit or loss from

revaluation is recognized in profit and loss.

B. Cash Flow Hedging

The Company enters into Cash Flow Hedging transactions in order to cover the risks that cause

fluctuations in its cash flows and arise either from an asset or a liability or a forecasted transaction.

On revaluation of open positions, the effective part of the hedging instrument is recognized directly in

Equity as “Hedging Reserve” while the ineffective part is recognized in Profit & Loss. The amounts

recognized in Equity are transferred in profit and loss at the same time as the underlying.

When a hedging instrument has expired, sold, settled or does not qualify for hedging accounting all

accumulated profit or loss recognized in Equity, stays in Equity until the final settlement of the

underlying. If the underlying is not expected to be settled then any profit or loss recognized in Equity is

transferred to profit and loss account.

C. Hedging of a Net Investment


Hedging of a foreign investment is regarded for accounting purposes in a way similar to cash flow

hedging.

The effective part of the hedging result is recognized directly in Equity while any ineffective part is

recognized in profit and loss. Accumulated profit or loss recognized in Equity is transferred in profit and

loss account at the time of disposal of the investment.

Determination of Fair Value

The fair value of financial instruments trading in an active market is defined by the published prices as of

the date of the financial statements. The fair value of financial instruments not traded in active market is

defined through the use of valuation techniques and assumptions based on relevant market information

as of the date of the financial statements.


4. Business Risk Management

4.1 Financial risk management aims and policies

The Company's activities give rise to multiple financial risks, including the current and interest rate

related risks, the volatility in market prices, credit risks, and liquidity risks. The Company's risk

management program aims at containing potential negative influence to its financial results, as this may

arise from the inability to predict financial markets and the volatility with respect to cost and sales

variables. The Company uses derivative financial instruments in order to hedge its exposure to specific

categories of risk.

The essential risk management policies are determined by the Company's Management and it’s consort

with the Group’s general policy. The risk management policy is applied by the Corporate Treasury

Department. The Corporate Treasury Department, identifies, quantifies, manages and hedges the

financial risks arising from the main operating activities of the Company.

4.2 Fair Value Measurements

The following table presents financial assets and liabilities measured at fair value in the statement of

financial position in accordance with the fair value hierarchy. This hierarchy groups financial assets and

liabilities into three levels based on the significance of inputs used in measuring the fair value of the

financial assets and liabilities. The fair value hierarchy has the following levels:

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

- Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or

liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable

inputs).

The level within which the financial asset or liability is classified is determined based on the lowest level

of significant input to the fair value measurement.

The financial assets and liabilities measured at fair value in the statement of financial position are

grouped into the fair value hierarchy as follows:


4.3 Market Risk

Exchange rate risk

The Company develops activity at international level and is therefore exposed to exchange rate risk that

arises mainly from the US dollar. Such risk primarily stems from commercial transactions in foreign

currency as well as from net investments in foreign financial entities. For the management of such risk,

the Group’s Financial Management Department establishes financial derivative and non-derivative

instruments with financial organizations.

The Company’s exposure to commodities price risk and the corresponding sensitivity may depending on

the transaction’s quantity in foreign currency as well the level of the prices. However, the following

analysis is considered representative of the Company's exposure to this risk for the year 2015.

Commodity’s Price Risk

Goods prices that are mainly determined by international markets and global offer and demand result in

the Company’s exposure to the relevant prices fluctuation risk.

Goods’ prices are connected both to variables that determine revenues (e.g. metal prices at LME) and to

the Company’s cost (e.g. natural gas prices). Due to its activity, the Company is exposed to price

fluctuation of aluminium (AL), fuel oil as well as to price fluctuation of natural gas, as production cost.

As regards price fluctuation of metals, the Company’s policy is to minimize risk by using financial

derivative instruments (forward deals commodity fulfilling contracts).

The Company's exposure to commodities price risk and the corresponding sensitivity may vary

depending on the volume of transactions and price levels. However, the following analysis is considered

representative of the Company's exposure to this risk for the year 2015.

(Amounts in €) 31/12/ 2015 Level 1 Level 2 Level 3

Financial Assets

Financial assets at fair value through profit or loss

Stock Shares 926.667 926.667 - -

Bank Bonds - - - -

Financial assets of the investment portfolio - - - -

Financial Assets 926.667 926.667 - -

Financial Liabilities

Foreign Exchange Contracts (Forward) (11.452) - (11.452) -

Options 204.904 - 204.904 -

Financial Liabilities 193.452 - 193.452 -

ALUMINIUM OF GREECE


Interest rate risk

The Company’s assets that are exposed to interest rate fluctuation primarily concern cash and cash

equivalents. The Company’s policy as regards financial assets is to invest its cash in floated interest rates

so as to maintain the necessary liquidity while achieving satisfactory return for its shareholders. In

addition, for the totality of its bank borrowing, the Company uses floating interest rate instruments.

Depending on the level of liabilities in floating interest rate, the Company proceeds to the assessment of

interest rate risk and when necessary examines the necessity to use interest bearing financial derivative

instruments.

The Company’s policy consists in minimizing its exposure to interest bearing cash flow risk as regards

long-term funding.

Effect from risk factors and sensitivities analysis

The effect from the above mentioned factors to Company’s operating results, equity and net results

presented in the following table:

In relation to the risk from interest rate fluctuation, it is noted that an increase of five (5) basis points

presume a decrease of €1.0 million on net results and Equity.

The Company’s exposure in price risk and therefore sensitivity may vary according to the transaction

volume and the price level. However the above sensitivity analysis is representative for the Company

exposure in 2015.


4.4 Credit Risk

The Company does not exhibit any considerable concentration of credit risk in any of the contracted

parties. Credit risk originates from available cash and cash equivalents, derivative financial instruments

and deposits at banks and financial institutions; also from exposure to client derived credit risk.

Regarding commercial and other claims, the Company is not theoretically exposed to significant credit

risks, as of the multifaceted nature of the Company's activities, there is no significant concentration of

credit risk with respect to its commercial requirements, as this is allocated over a high number of clients.

However, the atypical conditions that dominate the Greek market and several other markets in Europe

are forcing the Company to constantly monitor its business claims and also to adopt policies and

practices to ensure that such claims are collected. By way of example, such policies and practices include

insuring credits where possible; pre-collection of the value of product sold to a considerable degree;

safeguarding claims by collateral loans on customer reserves; and receiving letters of guarantee.

To minimize credit risk on cash reserves and cash equivalents; in financial derivate contracts; as well as

other short term financial products, the Company specifies certain limits to its exposure on each

individual financial institution and only engages in transactions with creditworthy financial institutions of

high credit rating.

The tables below summarize the maturity profile of the Company's financial assets as at 31.12.2015 and

31.12.2014 respectively:

4.5 Liquidity Risk

Liquidity Risk

The liquidity risk is linked to the need to sufficiently finance the Company's activity and growth. The

relevant liquidity requirements are the subject of management through the meticulous monitoring of

debts of long term financial liabilities and also of payments made on a daily basis.

The Company ensures the provision of adequate credit facilities available so as to cover short term

business requirements. In addition, funds for long term solvency needs shall be ensured through an

adequate amount of borrowed capital and the ability of selling long term financial assets.


The maturity of financial liabilities in December 31, 2015 and 2014 for the Company pictured as follows:

Capital Control imposition in Greece

The Greek government and the Institutions, after almost five months of negotiations, failed to reach an

agreement until the extended Greek program expired on the 30th of June 2015. During said period a

continuous and escalated leak of bank deposits occurred as a result of the increasing uncertainty. Said

fact, along with the decision of the European Central Bank (ECB) for no further increase in the

Emergency Liquidity Assistance (ELA), led to the Legislative Act (L.A.) of the 28th of July 2015 that

introduced the impose of capital controls along with a Bank holiday period. With a later L.A. on the 18th

of July 2015, the Greek government decided the termination of the Bank holiday, but retained the

measure of capital controls.

The Company monitored and still does said developments very closely, taking every necessary measure

to safeguard its going concern. Through the strength of its international profile and export orientation,

the Company copes with existing difficulties, supports the liquidity of the Greek system and achieves a

smooth and normal operation for all its sectors of activity.

4.6 Capital Management

The primary objective of the Company’s capital management is to ensure the continuous smooth

operation of its business activities and the achievement of its growth plans combined with an acceptable


credit rating. For the purpose of capital management, the Company monitors the ratios “Net Debt to

EBITDA” and “Net Debt to Equity”. As net debt, the Company defines interest bearing borrowings minus

cash and cash equivalents. The borrowings for the calculation of the index determined in accordance

with the relevant terms of the Bond Loan contract. The ratios are managed in such a way in order to

ensure the Company a credit rating compatible with its strategic growth.

The table below presents ratio results for the years December 31, 2015 and 2014 respectively:

(Amounts in €) 2015 2014

Long-term debt 242.666.895 111.790.367

Short-term debt 77.916.139 48.128.071

Long-term Liabi lities payable in the next period 30.000.000 20.865.500

Cash and cash equivalents (13.533.585) (3.206.357)

Net debt 337.049.449 177.577.581

Oper.Earnings before income tax,financial results,depreciation and amortization 88.063.378 65.001.361

EQUITY 242.917.987 412.147.886

Net debt / Oper.Earnings before income tax,financial results,

depreciation and amortization 3,83 2,73

Net debt / EQUITY 1,39 0,43

ALUMINIUM OF GREECE


5. Segment reporting

5.1 Primary reporting format – business segments

ALUMINIUM OF GREECE recognizes three sectors (alumina trade, aluminium trade, energy trade) as

operational sectors. According to IAS 8, the above operational sectors are those used by management

for internal purposes and strategically decisions are made based on the readjusted results of every

sector, and which are used for measuring their effectiveness. Measurement of each segment’s efficiency

is based on operational results after deletion of intercompany transactions.

Additionally, sectors of smaller importance, for which the required disclosure amount limits are not met,

are included in the following table under the heading “Others”.

The allocation of the consolidated items of the assets and liabilities of the company per business sector

on 31st of December 2015 is the following:

5.2 Secondary reporting format – geographical segments

The Company is active in Greece where it has its Headquarters. It operates also in Euro zone and other

countries.

Company’s sales allocation to geographical segments, are as follows:

(Amounts in Euro) Alumina Aluminium Energy

Not

Allocated Total

Total gross sales per segment 211.574.456 372.758.032 102.804.714 2.389.725 689.526.927

In house sales (88.097.932) (88.097.932)

Net Sales 123.476.524 372.758.032 102.804.714 2.389.725 601.428.995

Operating profit (1.207.768) 36.851.500 23.913.969 (12.348) 59.545.353

Financing income 4.695.004 4.695.004

Financing expenses (20.126.088) (20.126.088)

Other Financing Results (3.486.578) (3.486.578)

Profit before taxes (1.207.768) 36.851.500 23.913.969 (18.930.011) 40.627.690

Income Tax (8.661.783) (8.661.783)

Net profit (1.207.768) 36.851.500 23.913.969 (27.591.793) 31.965.907

ALUMINIUM OF GREECE

Sales Non current assets Sales Non current assets

(Amounts in €)

Hellas 225.059.544 570.417.073 145.187.012 563.972.493

European Union 324.235.214 - 256.660.600 -

Other Countries 52.134.237 - 60.719.742 -

Regional Analysis 601.428.995 570.417.073 462.567.354 563.972.493

2014

ALUMINIUM OF GREECE

2015


The Company’s income in Europe and also in the main countries of activity, generated by the Company's

internal information system. This system is the basic information system of the Company for income tax

purposes and declaration of VAT to the tax authorities. The total amounts which are pictured into the

Company’s functional areas consort with the basic financial data as presented in the financial

statements:

(Amounts in €) 1/1-31/12/2015 1/1-31/12/2014

Sale of commodities 32.841.909 -

Sales of goods produced 468.788.204 430.356.417

Sales of other inventory 99.798.882 32.210.937

Sales 601.428.995 462.567.354

ALUMINIUM OF GREECE


6. Notes on the Financial Statements

6.1 Tangible Assets

The Company’s tangible assets are analyzed, into the Financial Statements, as follows:

Investment on tangible assets, during the fiscal year 2015, for the company amounted to €36.0 million.

Depreciation is analyzed in notes 6.20 and 6.21.

Encumbrances:

Company’s assets are pledged for an amount of € 345.6 million as bank debt collateral.

Commitments:

Company’s commitments due to construction contracts and finance lease at 31/12/2015 amounted to

€17.0 million.

(Amounts in €)

Land &

Buildings

Vehicles &

mechanical

equipment

Furniture and

other equipment

Tangible assets

under

construction Total

Gross Book Value 178.811.090 893.192.096 17.667.826 5.512.844 1.095.183.855

Accumulated depreciation and/or impai rment 23.546.662 481.273.853 13.032.589 - (517.853.104)

Net Book value as at 01/01/2014 155.264.428 411.918.243 4.635.237 5.512.844 577.330.752

Gross Book Value 179.235.683 894.372.464 18.497.401 8.467.042 1.100.572.590



Gross Book Value 179.639.472 904.251.976 18.826.343 28.338.643 1.131.056.434



(Amounts in €)

Land &

Buildings

Vehicles &

mechanical

equipment

Furniture and

other equipment

Tangible assets

under

construction Total


Additions - 7.709.664 - 8.805.555 16.515.219

Depreciation (1.907.262) (27.428.213) (555.087) - (29.890.562)

Reclass i fications 424.593 4.369.133 829.575 (5.851.357) (228.057)


Additions 10.934 9.062.172 - 26.643.267 35.716.372

Depreciation (1.921.862) (26.983.336) (588.672) - (29.493.870)

Reclass i fications 392.855 5.760.190 328.942 (6.771.666) (289.678)


ALUMINIUM OF GREECE

ALUMINIUM OF GREECE


6.2 Intangible Assets

The company’s intangible assets mainly involve acquired licenses and software as well as developing

software. The Company’s intangible assets are analyzed as follows:

The amount which appears in the category 'other intangibles assets" refers to emission rights acquired

more than necessary to cover the deficit of the current year and is expected to be consumed in the next

fiscal year. The depreciations which affect the income statements are appeared at the notes 6.20 and

6.21.

6.3 Investments on Subsidiaries

In separate financial statements, investments on subsidiaries have been evaluated in the cost of

acquisition.

(Amounts in €) Software

Other intangible

assets Total

Gross Book Va lue 6.632.357 1.969.612 8.601.969

Accumulated depreciation and/or impairment 6.564.014 - 6.564.014

Net Book value as at 01/01/2014 68.342 1.969.612 2.037.955

Gross Book Va lue 6.860.414 385 6.860.799


Net Book value as at 31/12/2014 244.756 385 245.141

Gross Book Va lue 7.150.092 297.514 7.447.606


Net Book value as at 31/12/2015 459.383 297.514 756.897

(Amounts in €) Software

Other intangible

assets Total

Net Book value as at 01/01/2014 68.342 1.969.612 2.037.955

Additions - 385 385

Sa les - Reductions - (1.969.612) (1.969.612)

Depreciation (51.644) - (51.644)

Reclass i fications 228.057 - 228.057

Net Book value as at 31/12/2014 244.756 385 245.141

Additions - 297.128 297.128

Depreciation (75.051) - (75.051)

Reclass i fications 289.678 - 289.678

Net Book value as at 31/12/2015 459.383 297.514 756.897

ALUMINIUM OF GREECE

ALUMINIUM OF GREECE


Summary information about the subsidiaries:

6.4 Investments on associates

Summary information about the associates:

6.5 Deferred tax assets and liabilities

Deferred tax is calculated on temporary differences, with the use of tax rate in the country where the

company operates. The amounts that appear in the balance sheet are estimated that will be retrieved or

settled after the 31st December 2015. Deferred tax related to assets and liabilities before offsetting for

the year 2015 is analyzed below:

31/12/2015 31/12/2014

Balance at the beginning of the period 17.509.351 19.719.350

Exchange-rate differences - -

Additions - -

Sales/ Cancellations - -

Losses - (2.209.999)

Balance at the end of the period 17.509.351 17.509.351

ALUMINIUM OF GREECE

Name Location Total of shares

Percentage of

contribution

31/12/2015

Percentage of

contribution

31/12/2014

DELFI DISTOMON AME Greece 3.099.000 100% 100%

DESFINA SHIPPING COMPANY Greece 2.210.000 100% 100%

31/12/2015 31/12/2014

Opening Balance 500.000 500.000

Consolidation Of Subsidiaries - -

Additions - -

Sales - Reductions - -

Other changes in equity - -

Closing Balance 500.000 500.000

ALUMINIUM OF GREECE

Name Location

Percentage of

contribution

31/12/2015

Percentage of

contribution

31/12/2014

MYTILINEOS FINANCIAL PARTNERS S.A. Luxembourg 25% 25%


6.6 Other long-term assets

The Company’s long-term assets are analyzed as follows:

(Amounts in €)At 1st

January 2015

Recognised In

Profit Or Loss

Recognised In

Other

Comprehensive

As At 31

December 2015

Deferred Tax

Asset

Deferred Tax

Laibility

Non - Current Assets

Intangible As s ets 755.704 (300.113) - 455.592 455.592 -

Tangible As sets (38.056.214) (3.697.944) - (41.754.157) - (41.754.157)

Current Assets

Receivables (2.218.834) (256.019) - (2.474.853) - (2.474.853)

Long-term Liabilities

Employee Benefi ts 3.218.933 386.456 103.391 3.708.780 3.708.780 -

Long-Τerm Loans (268.875) (697.726) - (966.600) - (966.600)

Other Long-Term Liabi l i ties 5.466.349 (3.854.128) - 1.612.221 1.612.221 -

Short-Term Liabilities

Employee Benefi ts 454.546 (273.516) - 181.030 181.030 -

Liabi l i ties From Derivatives 336.451 - (280.350) 56.101 56.101 -

Other Short-Term Lia bi l i ties 1.835.816 915.429 - 2.751.244 2.751.244 -

Total (28.476.124) (7.777.560) (176.958) (36.430.643) 8.764.968 (45.195.611)

Offsetting - - - - - -

Deferred Tax (Liability)/Receivables (28.476.124) (7.777.560) (176.958) (36.430.643) 8.764.968 (45.195.611)

ALUMINIUM OF GREECE

(Amounts in €)At 1st

January 2014

Recognised In

Profit Or Loss

Recognised In

Other

Comprehensive

As At 31

December 2014

Deferred Tax

Asset

Deferred Tax

Laibility

Non - Current Assets

Intangible Ass ets 512.930 242.774 - 755.704 755.704 -

Tangible As sets (39.288.204) 1.231.991 - (38.056.214) - (38.056.214)

Current Assets

Receivables - (2.218.834) - (2.218.834) - (2.218.834)

Long-term Liabilities

Employee Benefi ts 2.927.831 291.102 - 3.218.933 3.218.933 -

Long-Τerm Loans (466.068) 197.193 - (268.875) - (268.875)

Other Long-Term Liabi l i ties 3.012.947 (806.761) - 2.206.186 2.206.186 -

Unused Tax Los ses 5.743.238 (2.483.076) - 3.260.162 3.260.162

Short-Term Liabilities

Employee Benefi ts 876.968 (422.422) - 454.546 454.546 -

Liabi l i ties From Derivatives - - 336.451 336.451 336.451 -

Other Short-Term Lia bi l i ties 1.274.000 561.816 - 1.835.816 1.835.816 -

Total (25.406.358) (3.406.217) 336.451 (28.476.124) 12.067.798 (40.543.922)

Offsetting - - - - - -

Deferred Tax (Liability)/Receivables (25.406.358) (3.406.217) 336.451 (28.476.124) 12.067.798 (40.543.922)

ALUMINIUM OF GREECE

(Amounts in €) 31/12/2015 31/12/2014

Given Guarantees 88.388 88.355

Other long term receivables 72.447 73.239

Other Long-term Receivables 160.835 161.594

ALUMINIUM OF GREECE


6.7 Inventories fair value

The Company’s inventories are analyzed as follows:

The amount of inventories that was recognized as an expense during the fiscal year and is included in

the cost of sales was € 355.948.953 (2014: € 187.852.950)

The company had no pledged inventories.

For establishing the net realizable sale value of inventories, management takes into account the most

reliable information available at the date of the valuation. The basic part of the business activity is not

subject to continuous technological changes that are likely to lead to obsolete inventories. The future

recovery of the accounting value of inventories is not affected by prices in other sectors.

6.8 Customers and other trade receivables

The Company’s customers and other receivables are analyzed as follows:

The total amount of the above receivables is of short-term time horizon. The fair value of the short-term

financial assets is not determined independently since the accounting value is considered as close to fair

value. The company has no receivables in arrears for which it should make a provision for the case of

(Amounts in €) 31/12/2015 31/12/2014

Raw materials 23.532.563 12.277.284

Semi-finished products 843.209 572.031

Finished products 18.802.935 23.033.229

Work in Progress 30.498.844 29.310.302

Others 26.312.665 24.852.049

Total 99.990.215 90.044.896

(Less)Provisions for scrap,slow moving and/or

destroyed inventories: (1.302.510) (1.302.510)

Total Stock 98.687.706 88.742.386

ALUMINIUM OF GREECE

(Amounts in €) 31/12/2015 31/12/2014

Customers 85.989.416 78.351.792

Checks receivable 306.937 300.587

Net trade Receivables 86.296.353 78.652.379

Advances to trade creditors 6.733.775 1.308.950

Total 93.030.128 79.961.329

ALUMINIUM OF GREECE


non-collection. The majority of the above receivables from commercial activity have been insured for the

risk of non-liquidation.

6.9 Other receivables

The Company’s other receivables are analyzed as follows:

Company’s receivables from loans given to related parties, regard the loan to the related company

‘MYTILINEOS FINANCIAL PARTNERS’. The amount of interest charged for the period, amounted to €3.2

million.

6.10 Financial assets at fair value through profit or loss

It concerns high-liquidity placements in shares traded in an active market.

6.11 Derivative financial instruments

Derivatives are classified as assets or liabilities. Provided that the maturity date of the derivatives is

within 12 months, the derivatives are recognized as current assets or short-term liabilities and in the

(Amounts in €) 31/12/2015 31/12/2014

Other Debtors 2.264.974 2.476.365

Receivables from the State 27.194.370 24.863.568

Receivables from Subsidiaries - 2.279.811

Loans given to Subsidiaries 62.855.976 62.855.976

Accrued income - Prepaid expenses 17.661.061 8.150.877

Less:Provision for Bad Debts (899.053) (899.053)

Total 109.077.328 99.727.544

ALUMINIUM OF GREECE

(Amounts in €) 31/12/2015 31/12/2014

Opening Balance - -

Additions 2.000.000 -

Sales (1.000.000) -

Fair Value Adjustments (73.333) -

Closing Balance 926.667 -

ALUMINIUM OF GREECE


case that their maturity date is over twelve months, they are recognized as long-term assets or long-

term liabilities. The balances of derivatives as at 31/12/2015 are analyzed as follows:

All derivatives open positions have been mark to market. Fair values of the “interest rate swaps”, are

confirmed by the financial institutions that the Company has as counterparties.

The Company manages the exposure to currency risk through the use of currency forwards and options

and thus by “locking” at exchange rates that provide sufficient cash flows and profit margins.

Furthermore, the Company manages the exposure to commodity risk through the use of :

a)commodity futures that hedge the risk from the change at fair value of commodities and

b) commodity swaps that hedge fluctuations in cash flows.

The open positions on financial derivatives is going to be settled in 2016 and concluded new, based on

dynamic risk management strategy of the Company.

6.12 Cash and Cash Equivalents

The Company’s cash and cash equivalents include the following:

(Amount in €) 31/12/ 2015 31/12/ 2014

Foreign Exchange Forward for Cash Flow Hedging - -

Commodity Future - -

Foreign Exchange Forward - -

Derivative financial instruments (receivable) - -

Foreign Exchange Forward for Cash Flow Hedging (11.452) 403.673

Foreign Exchange Forward - -

Option Contract for Cash Flow Hedging 204.904 890.369

Commodity Future - -

Commodity Option Contract - -

Derivative financial instruments (liability) 193.452 1.294.042

ALUMINIUM OF GREECE

(Amounts in €) 31/12/2015 31/12/2014

Cash 18.821 6.734

Bank deposits 13.514.764 3.199.623

Time deposits & Repos - -

Total 13.533.585 3.206.357

The weighted average interest rate is as: 31/12/2015 31/12/2014

Deposits in Euro 0,32% 1,61%

ALUMINIUM OF GREECE


6.13 Own Equity

6.13.1 Share capital

As of January 1, 2007, the share capital of the company amounted to € 60.000. After the absorption of

the production, construction, alumina trade, aluminium, ore materials, metal and production and trade of

electricity branch of ALUMINIUM OF GREECE S.A. from ALUMINIUM S.A., the company proceeded in an

increase in share capital at the accounting value of the branch, as in € 294.786.074,51 and at the

amount of € 153.925,48 in cash. In total the increase in share capital amounted in € 294.940.000,00

with the issuance of 5.898.800 new common shares, with voting rights and face value 50 Euro.

On 15 November the Extraordinary General Meeting of "ALUMINIUM S.A." resolved to the decrease of its

share capital by an amount of 50.150.000 € and the equall return to the shareholders in cash, according

to art. 4 par. 4 of L. 2190/1920. The decrease will be effected by a decrease of the company's 5.900.000

shares nominal value by 8,50 € per share. Following the above, the share capital of "ALUMINIUM S.A."

amount to 244.850.000 €, divided in 5.900.000 shares at a nominal value of 41,50 € each.

In September, the Extraordinary General Meeting of ALUMINIUM SA resolved to the decrease of its

share capital by € 30,09m and to the equivalent return of cash to the shareholders. The decrease was

realised by a decrease of the nominal value of its 5.900.000 shares by 5,10€ per share. Therefore, the

shareholder will receive for each one (1) share held by the amount of 5,10 €. After this reduction, the

share capital of the Company will amount to 214.760.000 €, divided into 5,900,000 registered shares

with a nominal value of each 36, 40 €. The reduction of the share capital approved by the District on

September 27, 2011.







2015.

On 31st December 2015 the share capital of the company amounts € 14.760.018.


6.13.2 Other reserves

The Company’s other reserves are analyzed as follows:

Under Greek corporate law, corporations are required to transfer a minimum of 5% of their annual net

profit as reflected in their statutory books to a legal reserve, until such reserve equals one-third of the

outstanding share capital. The above reserve cannot be distributed throughout the life of the company.

Tax free reserves represent non distributed profits that are exempt from income tax based on special

provisions of development laws (under the condition that adequate profits exist for their allowance).

These reserves mainly relate to investments and are not distributed.

Specially taxed reserves represent interest income and income from disposal of listed in the Stock

Exchange and non-listed companies and tax free or tax has been withheld at source. Except for any tax

prepayments, these reserves are exempted from taxes, provided they are not distributed to

shareholders.

6.13.3 Fair value reserves

The Company’s fair value reserves are analyzed as follows:

(Amounts in €)

Regular

Reserve

Special &

Extraordinary

Reserves

Tax-free

and Specially

taxed Reserves

Stock Option

Plan Reserve

Actuarial

Gain/Losses

Reserve

Total

Opening Balance 1st January 2014,

according to IFRS (as published) 1.537.933 35.632.600 22.337.227 317.298 (2.032.234) 57.792.824

Actuaria l Gain / (Losses) - - - - (2.180.330) (2.180.330)

Closing Balance 31/12/2014 1.537.933 35.632.600 22.337.227 317.298 (4.212.564) 55.612.495

(Amounts in €)

Regular

Reserve

Special &

Extraordinary

Reserves

Tax-free

and Specially

taxed Reserves

Stock Option

Plan Reserve

Actuarial

Gain/Losses

Reserve

Total

Opening Balance 1st January 2015,

according to IFRS (as published) 1.537.933 35.632.600 22.337.227 317.298 (4.212.564) 55.612.495

Deferred Tax From Actuaria l Ga in / (Los ses) - - - - 103.391 103.391

Actuaria l Gain / (Losses) - - - - (644.455) (644.455)

Closing Balance 31/12/2015 1.537.933 35.632.600 22.337.227 317.298 (4.753.627) 55.071.431

ALUMINIUM OF GREECE

ALUMINIUM OF GREECE

Fixed Assets

Reassessment

Reserves

Compensation

Financial

Instruments Total

Adjusted Balance 31st December 2014, according to IFRS - (957.591) - (957.591)

Gains / (Losses) of valuation transfered to Equity - (2.113.545) - (2.113.545)

Gains / (Losses) transfered to Financial Results throuhg the sales - 2.653.435 - 2.653.435

Defeared Tax - 280.350 - 280.350

Closing Balance 31st December 2015, according to IFRS - (137.351) - (137.351)

ALUMINIUM OF GREECE


6.14 Benefits for employment termination

The amounts that are recognized in the balance sheet and the income statement concern defined

benefit plans and pension plan are as follows:

The current part of these liabilities represents liabilities of ALUMINIUM OF GREECE to current employees

which are expected to be settled during 2015. These liabilities come mainly from pensions at the balance

sheet date. Since no employee has the right to an earlier settlement of the pension adjustment, the

remaining of the pension liabilities is considered as long-term.

ALUMINIUM OF GREECE has established a pension plan given to employees and according to which a

certain percentage of their current salary is converted into pension each year. Pensions that fall into this

plan are paid when the beneficiary reach pension age.

From 1 January 2013 the calculation of benefits in accordance with applicable law, that does not exceed

the applicable percentage of the full severance allowance and the current limits of regular monthly

salary. Guaranteed but the accumulated rights corresponding to year of service up to 31 December 2012

and are a result of a more favorable method of calculating the statutory rights as it was.

The amounts that are recognized in the balance sheet are as follows:

The program’s assets that are retained for funding the program do not include own shares of

ALUMINIUM OF GREECE or any other asset that is used by the Group. The real performance of the

program’s assets in 2015 was 4.942 (2014: 283.804).

The amounts that are recognized in the income statement are as follows:

(Amounts in €) 2015 2014

Liabi l i ties for pens ion plans 14.704.030 14.686.187

Total 14.704.030 14.686.187

ALUMINIUM OF GREECE

Non-funded

Pension Schemes

Defined

Benefit Plans Total

Non-funded

Pension Schemes

Defined

Benefit Plans Total

Present va lue of Defined Benefit Plans - 7.077.258 7.077.258 - 7.495.185 7.495.185

Less : Fa i r va lue of plan ass ets - (5.162.126) (5.162.126) - (5.189.509) (5.189.509)

Total - 1.915.132 1.915.132 - 2.305.676 2.305.676

Present va lue of Defined Contributions Plans 12.788.897 - 12.788.897 12.380.511 - 12.380.511

Total 12.788.897 - 12.788.897 12.380.511 - 12.380.511

Net retirement obligation 12.788.897 1.915.132 14.704.030 12.380.511 2.305.676 14.686.187

2015 2014


The amounts of actuarial gains / losses recognized in other comprehensive income are as follows:

Changes in the current value of a liability for predetermined benefits programs are as follows:

Change in the fair value of the assets of the program during year is as follows:

For determining the pension liability, the following proportional principles were used:

Non-funded

Pension Schemes

Defined

Benefit Plans Total

Non-funded

Pension Schemes

Defined

Benefit Plans Total

Current employment cost 153.329 - 153.329 133.903 - 133.903

Financial cost 309.513 187.380 496.892 394.131 285.290 679.421

Anticipated return on ass ets - 129.738 129.738 - 182.556 182.556

Settlement Cost 75.171 73.882 149.053 460.025 560.818 1.020.843

Amount included in employees' benefits 538.013 131.524 669.537 988.059 663.552 1.651.611

Expected return of plan assets - 129.738 129.738 - 182.556 182.556

Actuaria l gains on plan as sets - (134.680) (134.680) - 101.248 101.248

Return of plan assets - (4.942) (4.942) - 283.804 283.804

2015 2014

Non-funded

Pension Schemes

Defined

Benefit Plans Total

Non-funded

Pension Schemes

Defined

Benefit Plans Total

Opening Balance (3.059.791) (1.152.773) (4.212.564) (1.206.335) (825.899) (2.032.234)

Net actuaria ly profi ts / (loss es ) real is ed for the period (356.522) (287.932) (644.455) (1.853.456) (326.874) (2.180.330)

Cumulative amount recognized in OCI (3.416.314) (1.440.705) (4.857.019) (3.059.791) (1.152.773) (4.212.564)

2015 2014

Non-funded

Pension Schemes

Defined

Benefit Plans Total

Non-funded

Pension Schemes

Defined

Benefit Plans Total

Balance at beginning of year 12.380.511 7.495.185 19.875.696 11.260.887 8.151.149 19.412.036

Employment Cos t 153.329 - 153.329 133.903 - 133.903

Interest Cost 309.513 187.380 496.892 394.131 285.290 679.421

Settlement Cost 75.171 73.882 149.053 460.025 560.818 1.020.843

Actuaria l Ga ins /Los ses (356.522) (153.253) (509.775) (1.853.456) (428.122) (2.281.578)

Contributions Pa id 486.149 832.442 1.318.591 1.721.891 1.930.194 3.652.085

Total Retirement Obligation 12.788.898 7.077.257 19.866.155 12.380.511 7.495.185 19.875.696

2015 2014

2015 2014

Defined

Benefit Plans

Defined

Benefit Plans

Total Opening 5.189.509 5.215.899

Anticipated Return On Ass ets 129.738 182.556

Actuaria l Gain / (Loss es ) (134.680) 101.248

Employer Contributions 810.000 1.620.000

Contributions Pa id 832.442 1.930.194

Closing Balance 5.162.126 5.189.509


The contributions that are expected to be paid for the program in the fiscal year 2016 amounts to €1.4

million.

Employment Cost

6.15 Loan liabilities

The financial liabilities of the company are analyzed in the following table:



held by restructuring existing debt. The loan term is 1.5 years.

6.16 Other long-term liabilities

Other long term liabilities are analyzed as follows:

2015 2014

Discount rate 2,00% 2,50%

Inflation 1,50% 1,50%

Expected rate of pens ion increas es 0,00% 0,00%

(Amounts in €) 31/12/2015 31/12/2014

Wages & Salaries 30.788.125 29.776.787

Employeer Contributions 8.377.604 8.378.410

Amount included in employees' benefits 669.537 1.651.611

Total Personnel Costs 39.835.265 39.806.807

ALUMINIUM OF GREECE

(Amounts in €) 31/12/2015 31/12/2014

Long-term debt

Bonds 242.666.895 111.790.367

Total 242.666.895 111.790.367

Short-term debt

Overdraft 41.940.821 48.128.071

Bonds 55.000.000 -

Total 96.940.821 48.128.071

Current portion of non-current liabilities 30.000.000 20.865.500

Total 369.607.716 180.783.938

ALUMINIUM OF GREECE


The amounts which appeared in category “Others” concern energy product supplier‘s liabilities.

6.17 Provisions

Provisions referring to Company are recognized if the following are met legal or implied liabilities exist as

a consequence of past events, there is a possibility of settlement that will require the outflow if

economic benefits and the amount of the liability can be measured reliably. Contingent receivables are

not recognized in the financial statements but are disclosed if there is a possibility of an inflow of

economic benefits.

Following is stated analysis of the Company’s provisions on 31/12/2015 and 31/12/2014:

Environmental Restoration. This provision represents the present value of the estimated costs to

reclaim quarry sites and other similar post-closure obligations.

(Amounts in €) 31/12/2015 31/12/2014

Grants

Total Opening 28.147.343 31.084.121

Additions 599.314 -

Transfer At Profits/Loss (502.240) -

Transfer From / (To) Short - Term 1.050.895 (1.050.895)

Depreciation For The Period (1.050.896) (1.885.883)

Closing Balance 28.244.416 28.147.343

Other

Total Opening - 48.557.332

Transfer From / (To) Short - Term - (48.557.332)

Closing Balance - -

Total 28.244.416 28.147.343

ALUMINIUM OF GREECE

(Amounts in €)

Environmental

RestorationTax liabilities

Electrolisis Pots

ReliningOther Total

01/01/2014 - 250.000 13.852.025 1.371.425 15.473.450

Additions From Acquisition/Consolidation Of Subsidiaries - - - - -

Sale Of Subsidiary - - - - -

Additional Provisions For The Period - - 1.261.759 - 1.261.759

Unrealised Reversed Provisions - - - (1.200.000) (1.200.000)

Exchange Rate Differences - - - - -

Realised Provisions For The Period - - (2.884.185) - (2.884.185)

31/12/2014 - 250.000 12.229.599 171.425 12.651.024

Long -Term - 250.000 12.229.599 12.401.024 12.651.024

Short - Term - - - -

Additions From Acquisition/Consolidation Of Subsidiaries - - - - -

Sale Of Subsidiary - - - - -

Additional Provisions For The Period - - 805.946 - 805.946

Unrealised Reversed Provisions - - - - -

Exchange Rate Differences - - - - -

Realised Provisions For The Period - - (1.310.144) - (1.310.144)

31/12/2015 - 250.000 11.725.401 171.425 12.146.826

Long -Term - 250.000 11.725.401 11.896.826 12.146.826

Short - Term - - - -

ALUMINIUM OF GREECE


Tax Liabilities. This provision relates to future obligations that may result from tax audits. This

provision is expected to be in used in the next 3 years.

Electrolysis pots relining. This provision relates to future costs for Electrolysis pots relining. The

provisions for Electrolysis pots relining are expected to be in used in the next 9 years.

Other provisions. Comprise other provisions relating to other risks none of which are individually

material to the Company and to contingent liabilities arising from current commitments.

6.18 Suppliers and other trade liabilities

With the exception of liabilities from financial leases all other liabilities are considered as short-term. The

fair values of trade and other liabilities are not shown separately because of their short-term liabilities,

management considers that their accounting values that are recognized in the balance sheet constitute a

reasonable approach of their fair value. The analysis of trade and other liabilities are shown in the table

below:

6.19 Current tax liabilities

Current tax liabilities of the company are analyzed as follows:

6.20 Other short-term liabilities

Other short-term liabilities are analyzed as follows:

(Amounts in €) 31/12/2015 31/12/2014

Suppliers 104.448.691 137.473.349

Customers' Advances 27.256.065 16.370.196

Total 131.704.756 153.843.546

ALUMINIUM OF GREECE

(Amounts in €) 31/12/2015 31/12/2014

Tax l iabil ities 2.870.999 5.025.299

Total 2.870.999 5.025.299

ALUMINIUM OF GREECE


6.21 Cost of goods sold

Expenses analysis of the company is analyzed as follows:

6.22 Administrative & Distribution Expenses

(Amounts in €) 31/12/2015 31/12/2014

Liabil ities to Related Parties 45.405.545 125.000

Accrued expense 6.814.704 5.129.629

Social security insurance 1.967.722 1.958.951

Deferred income-Grants - 1.050.895

Others Liabil ities 10.833.875 8.461.190

Total 65.021.846 16.725.665

ALUMINIUM OF GREECE

(Amounts in €) 31/12/2015 31/12/2014

Retirement benefits 666.211 73.883

Other employee benefits 38.719.886 37.358.767

Cost of materials & inventories 355.948.953 187.852.950

Third party expenses 9.846.660 20.713.337

Third party benefits 61.893.393 132.655.268

Operating leases rent 1.195.811 1.261.175

Taxes & Duties 20.668.541 6.073.389

Advertisement 320.094 358.406

Other expenses 10.251.731 4.459.134

Depreciation - Tangible Assets 29.486.157 27.026.028

Depreciation - Intangible Assets 62.750 39.342

Grants amortization incorporated to cost (1.050.896) (1.885.883)

Total 528.009.291 415.985.797

ALUMINIUM OF GREECE

(Amounts in €) 31/12/2015 31/12/2014

Distribution expenses

Other emploee benefits 608.551 502.145

Third party expenses 183.929 152.306

Third party benefits 208.040 26.030

Taxes & Duties 4.441 2.688

Other expenses 242.790 208.785

Depreciation - Intangible Assets 12.301 12.301

Total 1.260.053 904.255

ALUMINIUM OF GREECE


6.23 Other Operating Income – Expenses

No impairment loss was recognized in financial assets for the periods presented.

Variations in exchange rates for the years 2015 and 2014 and their consequences are analyzed in the

Annual report of the Board of Directors as well as in note 4 about risk management.

6.24 Financial income and expenses

Financial expenses include any revenue or expense in relation to interest, apart from interest from

financial assets recorded in fair value in the income statement. The following amounts are included in

the income statement and are analyzed as follows:

(Amounts in €) 31/12/2015 31/12/2014

Administrative expenses

Other emploee benefits 379.986 724.534

Third party expenses 8.855.767 5.938.418

Third party benefits 739.525 821.437

Taxes & Duties 58.098 58.899

Other expenses 1.300.426 1.304.821

Depreciation - Tangible Assets 7.713 2.864.535

Total 11.341.515 11.712.643

ALUMINIUM OF GREECE

(Amounts in €) 31/12/2015 31/12/2014

Other operating income

Government grants 540.916 140.994

Compensations 50.144 35.071

Profit from foreign exchange differences - 11.937.376

Rent income 655.325 672.821

Operating income from services 1.020.931 -

Income from reversal of unrealized provisions - 1.702.157

Other 1.067.755 5.168.899

Total 3.335.070 19.657.318

Other operating expenses

Losses from foreign exchange differences 221.275 16.444.604

Operating expenses from services 3.066.402 185.029

Other taxes 710.365 47.307

Compensations 609.812 -

Total 4.607.854 16.676.940

ALUMINIUM OF GREECE


6.25 Other Financial results

6.26 Earnings/ (losses) per share

Basic earnings per share are calculated by the weighted average number of ordinary shares in issue

during the year.

6.27 Income Tax

The amount of tax on profit before tax of the company differs from the theoretical amount that would

arise using the tax rate applied in the profit of the consolidated companies. The relationship between the

(Amounts in €) 31/12/2015 31/12/2014

Financial income

Bank deposits 1.176 14.846

Customers 1.229.931 2.947.119

Loans to related parties 3.165.094 3.424.360

Other 15.326 92.021

Transactions with related parties 283.478 -

Total 4.695.004 6.478.346

Financial expenses

Bank Loans 14.307.548 10.561.920

Loans to related parties 78.893 7.794

Letter of Credit commissions 628.145 698.643

Factoring 2.072.005 3.110.311

Other Banking Expenses 280.143 7.576.635

Interest from operating/trading activities 2.759.355 -

Total 20.126.088 21.955.302

ALUMINIUM OF GREECE

(Amounts in €) 31/12/2015 31/12/2014

Other financial results

Nonhedging derivatives (1.237.852) -

Profit / (loss) from fair value of other financial instrument through profit/los (73.333) (2.209.999)

Profit / (loss) from the sale of financial instruments 109.550 -

Other Income (2.284.943) -

Total (3.486.578) (2.209.999)

ALUMINIUM OF GREECE

(Amounts in €) 1/1-31/12/2015 1/1-31/12/2014

Equity holders of the parent 31.965.907 14.966.150

Weighted average number of shares 2.061.373 2.061.373

Basic earnings per share 15,5071 7,2603

Diluted earnings per share 15,5071 7,2603

ALUMINIUM OF GREECE


expected tax expense, based on the true company tax rate, and the tax expense that was actually

recognized in the income statement, is the following:

Starting with the year 2011 and in accordance with paragraph 5 of Article 82 of Law 2238/1994,

companies whose financial statements are audited by mandatory statutory auditor or audit firm, under

the provisions of Law 2190/1920, are subject to a tax audit by statutory auditors or audit firms and

receives annual Tax Compliance Certificate. In order to consider that the fiscal year was inspected by the

tax authorities, must be applied as specified in paragraph 1a of Article 6 of POL 1159/2011.

The Company has not been audited by the tax authorities for the fiscal year 2010. For the fiscal years

2011-2013, the company has received a Tax Compliance Certificate free of disputes under the provisions

in paragraph 5 of Article 82 of Law 2238/1994. For the 2014 tax audit, the Company have been

subjected to a tax audit by Sworn Auditors according to article 65A par. 1 of law 4174/2013 and of law

4262/2014. Said tax audit has been completed during 2015 and the company has received a Tax

Compliance Certificat free of disputes. For fiscal year 2015, the tax audit which is being carried out by

the auditors is not expected to result in a significant variation in tax liabilities incorporated in the

financial statements.

Finally the tax audit for the Aluminium of Greece for the fiscal years 2011-2012 has been completed by

the relevant authorities of Ministry of Finance. The differences that arose from said tax audit amounts to

€590 Thousand.

(Amounts in €) 31/12/2015 31/12/2014

Income tax expense - -

Deferred taxation 7.777.560 3.406.217

Other Taxes 884.222 885.716

Total 8.661.783 4.291.933

Earnings before tax 40.627.690 19.258.083

Nominal Tax rate 29% 26%

Tax calculated at the statutory tax rate 11.782.030 5.007.102

Nominal Tax Rate Adjustments - Change in Greek Tax Rate 3.324.528 -

Non taxable income (601.573) (442.561)

Income tax from land - plot & buildings 884.222 885.716

Other (6.727.425) (1.158.324)

Effective Tax Charge 8.661.783 4.291.933

ALUMINIUM OF GREECE


6.28 Cash Flows from operating activities

6.29 Related Party transactions

In context of operational activity, materials, inventories and services originate from a number of related

parties of the company. The transactions with these companies take place on purely trade basis,

whereas no business transactions take place. ALUMINIUM OF GREECE did not participate in any

transaction of unusual nature or content which is significant for the Company it participates, or for

companies and the people closely related to it, and does not intend to participate in any kind of similar

transactions in the future.

Related party transactions according to IAS 24 are shown in the table below:

(Amounts in €) 1/1-31/12/2015 1/1-31/12/2014


Adjustments for:

Tax 8.661.783 4.291.933

Depreciation of property,plant and equipment 29.493.870 29.890.562

Depreciation of intangible assets 75.051 51.644

Impairments - 1.969.612

Provisions (504.198) (2.822.426)

(Profit)/Loss from fair value valuation of financ.assets at fair value

through PnL73.333 2.209.999

(Profit)/Loss from sale of financial assets at fair value (109.550) -

Interest income (4.695.004) (6.478.346)

Interest expenses 20.126.088 21.955.302

Grants amortization (1.050.896) (1.885.883)

Other differences (502.240) -

Total 51.568.238 49.182.398

Changes in Working Capital

(Increase)/Decrease in stocks (9.945.320) 1.844.685

(Increase)/Decrease in trade receivables (18.033.651) (9.223.618)

Increase / (Decrease) in l iabil ities (34.507.215) (37.807.731)

Pension plans (626.612) (1.690.280)

Total (63.112.797) (46.876.945)

Cash flows from operating activities 20.421.348 17.271.603

ALUMINIUM OF GREECE


Transactions with management

Benefits to management are analyzed as follows:


BOD fees include yearly wages as well as bonus related to the achievement of certain goals .No loans

have been given to members of the Board of Directors or other management members of the Company

(and their families).

6.30 Dividend

On 1st December 2015 the Extraordinary General Meeting of Shareholders decides to approve the

payment of dividend to the Shareholder Company with the amount of 1,500,331.50 € or 3.70 € / share

from the part distribution of specially taxed reserve, from revaluation’s differences based on N.3229/04,

which is depicted into a) the Company’s books of taxation, the balance sheet accounts “revaluation’s

differences – Investment Grants” and b) the Company’s books, the balance sheet accounts “Retained

Earnings”. This particular decision is going to be confirmed during the next Regular General Meeting of

Shareholders where will be approved the Financial Statements of 2015. The Board of Directors proposal

to the General Meeting of Shareholders will be the distribution of dividend to the Shareholder Company

with the amount of 1,500,331.50 € or 3.70 € / share.

6.31 Contingent assets and contingent liabilities

Note on Independent Power Transmission Operator S.A. (ADMIE)

On 17.12.2014, Independent Power Transmission Operator S.A. (IPTO or ADMIE) sent briefing notes to

ALUMINIUM OF GREECE (henceforth the “Company”), requesting the issuance of a credit invoice for the

amount of €17.4 million relating to the Excise Tax (ET) on Gas consumed at the Combined Heat and

Power (CHP) Plant for the period of 28/11/2012 until 31/10/2013 (henceforth the “Period”). Said ET was

invoiced to ADMIE during the aforementioned period, pursuant to its related debit notes.

In relation to the above, we note the following:

- The CHP station is a dispatchable cogeneration unit, part of which qualifies as highly efficient (High-

Efficiency Combined Heat and Power/ HE-CHP) under the Code’s provisions, but also under the specific

operational terms which were approved by way of RAE’s Decision No. 700/2012 (as amended by

Decision 341/2013).


- According to Article 197(2) of Law 4001/2011, from 1/9/2011 onwards, all HE-CHP stations, regardless

of their installed capacity, gain priority for the allocation of their loads. In particular, in accordance with

Article 197(3) of the above Law, HE-CHP stations with an installed capacity over 35MW are to be

compensated with the tariff which derives from the table displayed in Law 3468/2006, plus the Natural

Gas Clause Coefficient (CC), which is calculated using the following formula: CC = 1+(AGP-26)/(100 x

nel)

Where:

o AGP: the monthly mean average unitary selling price of natural gas to NG users in

Greece who are also electricity customers, in €/MWh using the gross calorific value

(GCV). This value is determined by the Ministry of Environment, Energy and Climate

Change’s Petroleum Policy Directorate and is communicated to Hellenic Transmission

System Operator S.A. (HTSO or DESMIE) on a monthly basis.

o nel: the electrical efficiency of the provision for High-Efficiency CHP based on the gross

calorific value (GCV) of natural gas, which is defined in accordance with the station’s

technical information, as reported by the relevant Operator.

The CC value cannot be lower than one (1) and is determined on a case-by-case basis by way of a

decision made by the Minister of Environment, Energy and Climate Change (henceforth the “Ministerial

Decision”) following consultation by RAE. RAE’s opinion must also take the plant’s installed capacity into

account, in a way so that the determined value generally decreases as the capacity increases.

Moreover, the AGP is displayed in €/MWh and includes the ET, as specified in the letter sent by the

Ministry of Environment, Energy and Climate Change’s Petroleum Policy Directorate on 2/11/2011.

The High-Efficiency CHP station owned by the Company has an installed capacity of 334MW, of which

134.6MW has priority in entering the system (HE-CHP) in accordance with the aforementioned decisions

which approved the Specific Operational Terms. From 1/9/2011 until 31/10/2013 (which ADMIE set as

the final date for settling the ET), the CC value, as defined above, had not been established because the

relevant decision had not been issued by the Minister of Environment, Energy and Climate Change,

despite the fact that the Regulatory Authority for Energy had issued two relevant opinions in accordance

with the provisions of Article 197(2) of Law 4001/2011 (RAE 3/2012 and RAE 5/2013). Consequently, the

Company’s HE-CHP neither issued invoices nor received a tariff in accordance with the provisions of Law

4001/2011. Instead, following the signing of a Private Agreement between the Company and the

Operator of Electricity Market (LAGIE) on 26.4.2013, HE-CHP issued temporary invoices, for the entire

aforementioned period, at the minimum price which could have resulted from the application of the

mathematical formula established by Law 4001/2011 (if the CC value was set at the unit price, i.e., if the

AGP amounted to 26€/MWh). According to the Private Agreement, the final settlement was to take place

following the establishment of the CC by way of the issuance of the relevant Ministerial Decision, so that


dispatched HE-CHP energy would be compensated in accordance with the provisions of the

"Supplementary Agreement for Transactions relating to Electricity from the Dispatchable High-Efficiency

CHP Station” (Government Gazette B’ 3108/23.11.2012) which was concluded between the Company

and LAGIE on 28.11.2012.

The aforementioned provisions of Law 4001/2011, in conjunction with the provisions specified in the

letter sent by the Ministry of Environment, Energy and Climate Change’s Petroleum Policy Directorate, as

well as the provisions of both the Company’s Private Agreement with LAGIE and the “Supplementary

Agreement for Transactions relating to Electricity from the Dispatchable High-Efficiency CHP Station”

between the two parties, require that the Natural Gas ET is recovered to the extent that the natural gas

was consumed in generating electricity. Therefore, the Subsidiary also recognized the part of the Natural

Gas ET which corresponded to consumptions made in generating useful heat (steam for the Alumina

production process) as a liability (deducted from ADMIE’s receivables balance), the total value of which

amounted to €9.1 million.

Regarding the remaining balance of ADMIE’s relevant briefing note, which amounts to €8.3 million and

relates to the Natural Gas ET which corresponded to consumptions for electricity generation (HE- CHP),

it is noted that this does not constitute a liability for the Company. Specifically, in accordance with IAS

37, “a liability is a present obligation of the entity arising from past events, the settlement of which is

expected to result in an outflow from the entity of resources embodying economic benefits”. Based on

the above and given that the Company has not received a final compensatory price for the Period (by

way of the CC, see above), while, based on the Private Agreement between the Company and LAGIE,

the final settlement will take place following the issuance of the relevant Ministerial Decision regarding

the establishment of the CC (which has not been issued), the Company believes that it has no

commitment which would legally constitute an obligation to return the amount of €8.3 million. A relevant

liability may arise once the aforementioned Ministerial Decision regarding the establishment of the CC is

issued, in which case the Company estimates that the final compensation that it will receive for

electricity dispatched to the system as High-Efficiency CHP will exceed the amount of €8.3 million.

Therefore, it is not expected that a loss will result for the Company.

Finally, in respect of the final settlement of the CHP pricing for 2013 it is noted that, on the 4th of June

2015 Aluminium of Greece, sent a letter to the Operator of the Electricity Market (LAGHE) asking the

convene of the Dispute Settlement Committee as provided in the article 16 p. 2 of the “Supplementary

Agreement for Transactions relating to Electricity from the Dispatchable High-Efficiency CHP Station”

signed between the parties. The dispute in consideration concerns the imposition of a 10% special tax


plus an extra 10% of one-off discount on tariffs, both regarding the financial year 2013. On 11/6/2015

LAGIE accepted the request of Aluminium of Greece and further actions are expected to occur within the

following period.

The minutes of the off-court Settlement Committee dated 24/11/2015, confirmed the failure for a

settlement agreement between the parties. Mytilineos SA with its letter dated 21/1/2016 proposed to the

Greek Operator of Electricity Market (LAGIE) to bring the said dispute to arbitration after the Regulatory

Authority for Energy (RAE) based on the provisions of the article 16 par. 4 of the Supplementary Power

Purchase Agreement signed between the parties on 28/11/2012. Further to that, Mytilineos SA has also

attached a draft arbitration memorandum pending LAGIE’s final consent.

Power purchase agreement between ALUMINIUM OF GREECE and PPC

Following arbitral decision no. ∆1/1/2013, which was issued by RAE’s Permanent Court of Arbitration on

31.10.2013 and which defined the fair, reasonable and worthy price for the electricity supplied by PPC to

ALUMINIUM OF GREECE (henceforth the “Company”) during the period of time between 1-7-2010 and

31-12-2013, the two parties have not signed a power purchase agreement for the period between

1/1/2014 and the date on which the financial statements for the year 2014 were published.

On 7/1/2014, PPC’s Board of Directors requested the convening of an Extraordinary General Meeting,

the main topic of discussion of which concerned the terms by which the Company would be charged

from 1/1/2014 onwards. PPC’s Extraordinary General Meeting eventually convened on 28/2/2014 and

decided the following:

a) The provision of an exceptional discount of 10% on PPC’s approved tariffs for High Voltage

customers, for 1 + 1 year, from 1.1.2014 onwards.

b) A further 10% discount on top of the aforementioned discount for High Voltage customers with an

annual consumption over 1000 GWH.

c) A further 25% discount on the A4 tariff for all High Voltage customers, apart from those with an

annual consumption over than 1000 GWH, for consumption during off-peak hours of minimum demand

(nighttime and weekends), as an incentive for increasing consumption during these time periods.

The Company considers that the content of the decision taken during PPC’s Extraordinary General

Meeting, under a, b and c above, merely constitutes an offer of pricing terms on behalf of PPC, towards

their large industrial customers. In this respect, the Company has engaged in discussions with PPC in

good faith, expressing both its opinions and its reservations in relation to the terms and content of the

power purchase agreement under negotiation. In particular, the aforementioned decision of the

Extraordinary General Meeting of PPC's shareholders has been considered taking into account relevant


developments in general. Among other things, said developments relate to the rejection of all the judicial

and administrative proceedings instituted by PPC against the Arbitral Award and RAE’s Decision no.

346/2012 (the decision which determined a temporary price to be applied until RAE’s Permanent Court

of Arbitration’s final adjudication) before both the Administrative Court of Appeal of Athens and the

European Commission's Directorate-General for Competition, a fact which confirms and updates the

fairness and reasonableness of the price at which the Court of Arbitration concluded.

Consequently, given that as of the date of approval of ALUMINIUM OF GREECE’s annual financial

statements for the year 2015, the two parties have not yet reached an agreement in relation to the basic

terms for charging electricity supplied by PPC to the Company, the latter has announced in the results

for the period in question that the competitive component of the electricity price amounts to the value

which has most recently been held to be fair and reasonable (by RAE’s Permanent Court of Arbitration),

plus the Use of System charge, the SGI charge, the Special RES Duty charge and charges relating to the

relevant Special Consumption Tax, Execution of Customs Operations (∆ΕΤΕ) and provisions for non-

recoverable (by way of the compensation mechanism) carbon dioxide (CO2) emissions costs.

However, it is noted that during 2015, PPC, acting arbitrarily and unilaterally, invoiced the Company

based on the “A5” tariff, without incorporating the discount decided in the General Meeting, noting that

the discount would only apply retrospectively if the Subsidiary Company accepted and signed PPC’s

terms. Finally, on the 12th and 13th of January 2015, without the Company’s acceptance of the

aforementioned terms, PPC issued credit notes as a result of the re-pricing of electricity for the year

2014, stating that said re-pricing was in accordance with the decision of its General Meeting on

28/2/2014. Consequently, PPC, acting unilaterally, invoiced the Company for the period’s 01/01 -

31/03/2015 electricity consumption based on “A5” tariff which incorporated a 20% discount, stating that

these invoices were issued based on the decision of PPC’s extraordinary General Meeting.

The Company contests the way in which PPC’s Management has interpreted and applied the General

Meeting’s decision of 28/2/2014 in relation to the issuance of the aforementioned credit tariffs, stressing

that in no case have they ever reached an agreement with PPC either on the basis of the General

Meeting resolution, or on any other basis, given that decisions taken by a Company’s General Assembly

are only binding to the company issuing the General Assembly resolution and do not bind other

contracting parties.

For the years 2014 and 2015, the difference between the amount announced in the Company’s results

as the cost for electricity consumption and the amount that it would have announced on the basis of the


tariffs which PPC unilaterally and arbitrarily formed, amounts to €20.6 million and €21.7 million

respectively. Moreover, for the year 2014 and 2015, the difference between the amount announced in

the Company’s results as the cost for electricity consumption and the amount that it would have

announced in implementation of PPC’s Extraordinary General Meeting resolution, as this has been

interpreted by the Company during negotiations between the parties, amounts to €4.3 million and 5.8

million respectively.

However, it is noted that the two parties have not yet, as of the date of approval of the Company’s

Annual Financial Statements of 2015, reached an agreement. Therefore, none of the above differences

constitute contingent liabilities, nor can they be considered as such, because contingent claims and

contingent liabilities which cannot be accurately estimated at this stage may arise for the Company, as a

result of the finalization of negotiations between the two parties, or following new legal or arbitration

procedures, or procedures before another competent authority.

6.32 Number of employees

6.33 Commitments

6.33.1 Operating lease deposit – the company as a lessor

The company leases offices and land in various related parties.

6.33.2 Operating lease deposit – the company as a lessee

The expense amount of the lease that was recorded in the income statement for the current fiscal year

amounts to € 1.195.811. The future lease payments based on the non-reversible financial leases on the

31st December 2015 is analyzed as follows:

31/12/2015 31/12/2014

Full time employees 962 943

Total 962 943

ALUMINIUM OF GREECE

(Amounts in €) 31/12/2015 31/12/2014

Until 1 year 1.289.904 1.172.342

1 to 5 years 5.160.000 4.690.000

Total Operating Lease 6.449.904 5.862.342

ALUMINIUM OF GREECE


6.33.3 Warranties

Warranties of ALUMINIUM OF GREECE:

ALUMINIUM OF GREECE also received the following warranties:

6.34 Financial Instruments

Company‘s Financial Instruments are analyzed as follows:

(Amounts in €) 31/12/2015 31/12/2014

Non current assets

Other Long-term Receivables 160.835 161.594

Total 160.835 161.594

Current assets

Financial assets at fair value through profit or loss 926.667 -

Trade and other receivables 184.446.395 171.537.996

Cash and cash equivalents 13.533.585 3.206.357

Total 216.567.707 182.895.230

Non-Current Liabilities

Long-term debt 242.666.895 111.790.367

Total 242.666.895 111.790.367

Current Liabilities

Short-term debt 96.940.821 48.128.071

Current portion of non-current l iabil ities 30.000.000 20.865.500

Trade and other payables 196.726.602 170.569.211

Total 323.667.423 239.562.782

ALUMINIUM OF GREECE

31/12/2015 31/12/2014

Guarantees given on government grants relating to tangible fixed

assets 0 0

Other guarantees (letters of credit) 35.942.380 30.524.210

Total 35.942.380 30.524.210

31/12/2015 31/12/2014

Parent company guarantees as security for bank loans 371.761.608 -

Parent company guarantees to Customers / Suppliers 13.777.900 -

Customer Warranties 8.545.000 10.095.000

Other guarantees (letters of credit) 9.865.160 8.743.585

Total 403.949.668 18.838.585


6.35 Tax Authorities Control

The Company has not been audited by the tax authorities for the fiscal year 2010. For the fiscal years

2011-2013, the company has received a Tax Compliance Certificate free of disputes under the provisions

in paragraph 5 of Article 82 of Law 2238/1994. For the 2014 tax audit, the Company have been

subjected to a tax audit by Sworn Auditors according to article 65A par. 1 of law 4174/2013 and of law

4262/2014. Said tax audit has been completed during 2015 and the company has received a Tax

Compliance Certificat free of disputes. For fiscal year 2015, the tax audit which is being carried out by

the auditors is not expected to result in a significant variation in tax liabilities incorporated in the

financial statements.

Finally the tax audit for the Aluminium of Greece for the fiscal years 2011-2012 has been completed by

the relevant authorities of Ministry of Finance. The differences that arose from said tax audit amounts to

€590 Thousand.

The Company’s management considers that apart from the recorded provisions which are amounted on

€ 0.3 million during 2015, additional taxes which may incur, will not have a material impact on the

Financial Position Results and Company’s cash flows.

6.36 Post Balance Sheet events

There are no other significant subsequent events that relate to the Company, which is required by the

International Financial Reporting Standards (IFRS).


F. FIGURES AND INFORMATION


G. AVAILABILITY OF FINANCIAL STATEMENTS

The Annual Financial Statements of the Company, the auditor’s report and the report of the Board of

Directors have been posted on the web site of the Company www.alhellas.gr. On Group’s website

www.mytilineos.gr there is, in electronic form, the Annual Financial Statement and the Annual

Newsletter of the previous fiscal and other important information.

THE PRESIDENT OF THE BOARD

SPYRIDON KASDAS

I.D. No ΑΒ050826

THE MANAGING DIRECTOR

DIMITRI STEFANIDIS

I.D. No AI994068

THE DIRECTOR FINANCE CONTROL

I OANNIS BOUBONARIS

I.D. No AM499302

THE CHIEF ACCOUNTANT

STERGIOS KARAMELISSARIS

I.D. No X312904

Reg. No. 65196/A' Class

ALUMINIUM OF GREECE · 2016. 8. 2. · Annual Financial Report for the period from1st of January to...

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