0
ELVALHALCOR HELLENIC COPPER AND ALUMINIUM INDUSTRY S.A.
G.C. Registry: 303401000
LEI: 213800EYWS2GY56AWP42
S.A. Registry No.: 26/06/B/86/48
Seat: Athens Tower, Building B, 2-4 Mesogeion Ave., 11527 Athens
ANNUAL FINANCIAL REPORT FOR OF 31
st
DECEMBER 2023
According to the International Financial Reporting Standards and
according to Law 3556/2007
Annual Financial Report of 31st December 2023
0
STATEMENTS BY MEMBERS OF THE BOARD OF DIRECTORS ......................................................................... 2
BOARD OF DIRECTORS ANNUAL REPORT ..................................................................................................... 3
1. FINANCIALS - BUSINESS REPORT - MAJOR EVENTS ............................................................................................. 3
2. FINANCIAL STANDING ................................................................................................................................. 5
3. MAIN RISKS AND UNCERTAINTIES ................................................................................................................. 10
4. OUTLOOK AND TARGETS FOR 2024 ............................................................................................................. 16
5. TRANSACTIONS WITH RELATED PARTIES ......................................................................................................... 16
6. SUBSEQUENT EVENTS ................................................................................................................................ 20
ELVALHALCOR NON-FINANCIAL REPORTING .............................................................................................. 21
ANNEX I
.............................................................................................................................................................. 34
BOARD OF DIRECTORS EXPLANATORY REPORT ......................................................................................... 38
1. Structure of share capital ............................................................................................................... 38
2. Restrictions on the transfer of shares of the Company ................................................................. 38
3. Major direct or indirect holdings within the meaning of Articles 9 to 11 of Law 3556/2007 ...... 38
4. Shares granting special rights of control. ...................................................................................... 38
5. Restrictions on voting rights ........................................................................................................... 38
6. Agreements between Company’s shareholders ............................................................................ 38
7. Rules on the appointment and replacement of Board members and amendment of the Articles
of Association .......................................................................................................................................... 39
8. Powers of the Board of Directors to issue new shares or purchase own shares........................... 39
9. Major agreements which take effect have been amended or expire in the case of change in
control ..................................................................................................................................................... 39
10. Agreements with Board of Directors members or Company’s staff.............................................. 40
CORPORATE GOVERNANCE STATEMENT ................................................................................................... 41
AUDIT COMMITTEE OF ELVALHALCOR S.A. ................................................................................................ 61
AUDIT RERORT .......................................................................................................................................... 68
ANNUAL FINANCIAL STATEMENTS (GROUP AND COMPANY) AS AT 31 DECEMBER 2023 ACCORDING TO
INTERNATIONAL FINANCIAL REPORTING STANDARDS ............................................................................... 75
I. Statement of Financial Position ..................................................................................................... 76
II. Income Statement........................................................................................................................... 77
III. Statement of Other Comprehensive Income .................................................................................. 78
IV. Statement of Changes in Equity ..................................................................................................... 79
V. Cash flow statement ....................................................................................................................... 83
VI. Notes to the financial statements at 31.12.2023 .......................................................................... 84
1. Incorporation and Group Activities ........................................................................................................... 84
2. Basis of preparation of the Financial Statements ...................................................................................... 84
3. Changes in accounting policies .................................................................................................................. 85
4. New Standards .......................................................................................................................................... 85
5. Significant accounting policies .................................................................................................................. 85
5.1 Basis of Consolidation ..................................................................................................................... 88
5.2 Foreign currency .............................................................................................................................. 89
5.3 Revenue ........................................................................................................................................... 90
5.4 Employee benefits ........................................................................................................................... 91
5.5 Government Grants ......................................................................................................................... 91
Annual Financial Report of 31st December 2023
1
5.6 Finance income and finance costs ................................................................................................... 92
5.7 Income tax ....................................................................................................................................... 92
5.8 Inventories ....................................................................................................................................... 93
5.9 Property, plant and equipment ....................................................................................................... 93
5.10 Intangible assets .............................................................................................................................. 94
5.11 Investment property ........................................................................................................................ 94
5.12 Assets Held for sale .......................................................................................................................... 95
5.13 Financial instruments ...................................................................................................................... 95
5.14 Share capital .................................................................................................................................... 98
5.15 Provisions ......................................................................................................................................... 98
5.16 Impairment ...................................................................................................................................... 98
5.17 Leases ............................................................................................................................................. 100
5.18 Earnings per share ......................................................................................................................... 100
5.19 Fair value measurement ................................................................................................................ 101
5.20 Restatement of Consolidated profit or loss statement ................................................................ 101
6. Operating segments ................................................................................................................................ 103
7. Sales ........................................................................................................................................................ 106
8. Other income and expenses .................................................................................................................... 106
9. Expenses by nature ................................................................................................................................. 107
10. Finance income and cost ......................................................................................................................... 108
11. Property, plant and equipment ............................................................................................................... 109
12. Intangible assets ...................................................................................................................................... 115
13. Investment property ............................................................................................................................... 117
14. Investments ............................................................................................................................................. 118
15. Other investments ................................................................................................................................... 123
16. Income tax ............................................................................................................................................... 124
17. Inventories .............................................................................................................................................. 130
18. Trade and other receivables .................................................................................................................... 130
19. Derivatives ............................................................................................................................................... 131
20. Cash and cash equivalents ...................................................................................................................... 133
21. Share capital and reserves ...................................................................................................................... 133
22. Earnings per share ................................................................................................................................... 135
23. Loans and obligations from financial leasing ........................................................................................... 135
24. Liabilities for employee’s retirement benefits ........................................................................................ 137
25. Grants ...................................................................................................................................................... 139
26. Provisions ................................................................................................................................................ 139
27. Trade and other payables ........................................................................................................................ 139
28. Financial assets and risk management .................................................................................................... 140
29. Fair value of financial assets .................................................................................................................... 150
30. Commitments .......................................................................................................................................... 152
31. Contingent Liabilities ............................................................................................................................... 152
32. Related parties ........................................................................................................................................ 152
33. Audit fees ................................................................................................................................................ 156
34. Right of use of Assets .............................................................................................................................. 156
35. Long- and short-term receivables from loans ......................................................................................... 158
36. EBITDA and a-EBITDA .............................................................................................................................. 159
37. Assets held for sale .................................................................................................................................. 162
38. Subsequent events .................................................................................................................................. 163
The annual financial statements of the Company (in consolidated and non-consolidated basis), the Auditor’s
Report and the management report of the Board of Directors are posted on the Company's website
(www.elvalhalcor.com) and the Athens Exchange website (www.helex.gr).
Annual Financial Report of 31st December 2023
2
STATEMENTS BY MEMBERS OF THE BOARD OF DIRECTORS
(Pursuant to Article 4 par. 2 of Law 3556/2007)
The undersigned in our capacity as members of the Board of Directors of the company with the name ELVALHALCOR
HELLENIC COPPER AND ALUMINIUM INDUSTRY S.A, trading as ELVALHALCOR S.A., whose registered offices are
located in Athens, at 2-4 Mesogeion Avenue, do hereby declare and confirm that as far as we know:
(a) the attached annual company and consolidated financial statements for the company ELVALHALCOR S.A. for
the fiscal year from 1 January to 31 December 2023, which were prepared in accordance with the applicable
International Financial Reporting Standards (IFRS), as adopted by the European Union, fairly present the assets,
liabilities, equity and results for the period ended on 31 December 2023 for ELVALHALCOR S.A. and the entities
included in the consolidation taken as a whole, in line with the provisions of Article 4, paragraphs 3 to 5, of Law
3556/2007; and
(b) the attached Annual Report of the Board of Directors reflects fairly the development, the performance and the
status of ELVALHALCOR S.A., as well as of the entities that are included in the consolidation taken as a whole and
includes a description of the main risks and uncertainties they confront.
Athens, 5
th
of March 2024
Confirmed by
The Vice-Chairman of the Board
The Board-appointed Member
The Board-appointed Member
DIMITRIOS KYRIAKOPOULOS
NIKOLAOS KARAMBATEAS
PANAGIOTIS LOLOS
ID Card No. AK 695653
ID Card No. AK 121870
ID Card No. ΑΗ 131173
Annual Financial Report of 31st December 2023
3
BOARD OF DIRECTORS ANNUAL REPORT
This Annual Report of the Board of Directors set out below (hereinafter referred to for the purpose of brevity as
"Report") concerns year 2023 (1 January – 31 December 2023). This report was prepared in line with the relevant
provisions of Codified Law 4548/2018, the provisions of Law 3556/2007 (Government Gazette 91A/30.4.2007) and
of Law 4374/2016 (Government Gazette 50Α/01.04.2016) and the decisions of the Hellenic Capital Market
Commission (HCMC) issued pursuant to it, and in particular Decision No. 8/754/14.4.2016 of HCMC.
This report details financial information on the Group and the Company of ELVALHALCOR HELLENIC COPPER AND
ALUMINIUM INDUSTRY S.A (hereinafter referred to for the purpose of brevity as "Company" or "ELVALHALCOR")
for the year 2023, important events that took place during the said year and their effect on the annual financial
statements. It also points out the main risks and uncertainties which Group’s companies were faced against and
finally sets out the important transactions between the issuer and its affiliated parties. The principal activities of
the Group lie in the production and trade of rolling and extrusion products made of copper, aluminium and their
alloys, zinc rolling products and copper and aluminium winding (enamelled) wires.
1. Financials - Business report - Major events
Since early 2023, rising inflationary pressures shrank economic activity in most segments of the economy, mostly
in the construction sector. During the first half of 2023, the Eurozone entered a technical recession after two
consecutive quarters of declining GDP. During the second half of the fiscal year, economic activity and growth
remained weak, while monetary policy remained restrictive. The basic lending rates, following consecutive
increases, were kept stable at high levels during the last quarter of 2023 by the Central Banks, which focused on
the reducing inflation, which gradually declined vs the previous year. Regarding the energy prices, European natural
gas prices declined, as supply was gradually increasing amid low demand, with gas consumption remaining below
historical norms, owing to a combination of mild winter weather, changes in consumer behavior and weak industrial
activity. The outlook for the Euro area remains weak in terms of growth, weighting on the tight financing conditions
and the geopolitical crisis, with Russia’s war against Ukraine and the conflict in the Middle East, which are
dampening demand and foster uncertainty.
LME metals prices held lower than 2022, reflecting subdued global demand and growth. The average price of
aluminium reached EUR 2,080/tn in 2023 compared to EUR 2,557/tn in 2022, decreased by 18.7%, the average
price of copper reached EUR 7,835/tn versus EUR 8,334/tn the respective prior year, decreased by 6.0% while the
average price for of Zinc was EUR 2,445/tn versus EUR 3,299/tn in 2022, decreased by 25.9%.
The Aluminium Ssegment presented a decrease by 1.6% in sales volumes, reaching 386 thousand tons. It is
noteworthy that aluminium products marked a marginal increase by 0.4%, excluding the impact from ETEM’s
deconsolidation, as the segment took advantage of its expanded product portfolio and long-term partnerships
alongside with the integration of the new lacquering line in the production process during the first half of 2023, as
the investment was concluded successfully. Regarding the product mix, 58% of its sales was directed to the food
packaging sector (flexible and rigid), 13% to the transportation sector, 14% to the building and construction sector
and the remaining 15% was allocated among other industrial applications.
Annual Financial Report of 31st December 2023
4
Sales volume of the Copper segment dropped slightly by 8% for the fiscal year 2023, reaching 175 thousand tons,
mainly affected by the reduced demand in the construction sector. Despite the decrease in demand in the sector,
the increase by 1.6% in the sales volume of the subsidiary SOFIA MED is noteworthy. More specific, sales volume
of the latter for flat rolled products increased by 1.3%, while sales volume for the extruded copper and alloys
products of the same increased by 2.0%, as a result of its strategic advantages and its expanded product portfolio.
The parent company's copper and alloys extrusion division saw a decline of 10.5% for copper tube products and
45.8% for extruded copper alloys, the latter having the largest exposure in the construction sector. Regarding the
product mix, sales of copper tubes represent 37% of total sales, followed by copper and alloys rolled products for
industrial applications that participate in the product mix by 34%, copper bus bars by 19%, brass rods and tubes by
6%, enamelled wires by 2% and the products of Epirus Metalworks by 1%.
Consolidated turnover dropped to Euro 3,293 million versus the historically high level of Euro 3,714 million in 2022,
decreased by 11.3%, driven by the drop in sales volume and the LME metal prices in the global markets.
Consolidated gross profit decreased by 41.5% and amounted to Euro 213.3 million compared to Euro 364.6 million
the respective prior year, attributed mainly to the metal result which amounted to losses of Euro 47.4 million
compared to profits of Euro 61.5 million in the previous year. Consolidated earnings before taxes,
interest,depreciation and amortisation (EBITDA) amounted to Euro 176.4 million versus Euro 326.2 million,
decreased by Euro 149.8 million. Consolidated profit before interest and tax (EBIT), amounted to Euro 103.1 million
compared to Euro 256.3 million in 2022. Finally, consolidated profit before tax reached Euro 43.0 million in 2023
compared to Euro 199.8 million in 2022, mainly affected by the increased finance costs. Consolidated adjusted
earnings before interest, tax, depreciation and amortisation (a-EBIDTA) reached Euro 239.3 million for 2023
compared to Euro 271.2 million the respective prior year, decreased by 11.8% as a result of reduced sales volumes
and lower benefit from scrap consumption in production. Conversely, processing prices remained high, while lower
energy and gas prices helped reduce production costs. Finally, consolidated profit after tax and minority interests
amounted to Euro 28,5 million and Euro 0.07595 per share versus Euro 159.3 million and Euro 0.42449 per share
in prior year.
On a standalone Company basis, turnover amounted to Euro 2,317 million compared to Euro 2,616 million for 2022
and marked an increase by 11.4 %. Gross profit recorded a decrease by 61.1% to Euro 94.3 million compared to
Euro 242.4 million for year 2022, while earnings before interest and tax, depreciation, and amortisation, (EBIDTA)
amounted to Euro 77.3 million versus Euro 220.7 million in the respective prior year, with metal result amounting
to Euro 39.0 million losses compared to Euro 45.6 million gains in prior year, therefore decreased by Euro 84.7
million. Reduced sales volumes and lower benefit from scrap consumption in production led to a significant decline
of adjusted earnings before tax, interest, depreciation and amortisation (a-EBITDA), which reflect the operational
profitability of the Company, which amounted to Euro 125.4 million compared to Euro 180.8 million for 2022, an
decrease by 30.3%. Finally, profit before tax amounted to Euro 3 million compared with Euro 130.0 million in the
prior year.
In the fiscal year 2023, ELVALHALCOR Group carried out investments amounting in total to Euro 95.3 million, out
of which the amount of Euro 70.4 million was related with the upgrading of production facilities of the parent
Company in Oinofyta, allocated to Euro 59.1 million for the Aluminium Rolling Division of the Company, mainly for
the expansion of its production capacity (new cold rolling mill and lacquering line) and Euro 11.3 million for the
Copper and Alloys extrusion division of the Company. Finally, the subsidiaries of the copper segment invested Euro
14.9 million while the subsidiaries of the Aluminium segment invested Euro 10.0 million with the aim to increase
their production capacity as well as the production of high value-added products.
Annual Financial Report of 31st December 2023
5
The successful completion of the investment programs of the parent company's Aluminium sector as well as the
successful management of the group's funds contributed to the reduction of the Group's Net Debt by Euro 142.2
million compared to the previous year.
It is worth to be noted that the Company has entered into interest rate swaps, to hedge the effects of the uptrend
in interest rates and smooth the finance cost.
On 30.06.2023 the Company distributed a dividend of Euro 22.5 million for the profits of fiscal year 2022, or Euro
0.06 per share.
On 05.03.2024, for the fiscal year 2023, the Board of Directors decided to propose to the General Assembly which
will take place on 23.05.2024 a dividend distribution of Euro 0.04 per share.
To mitigate the risk of the increase in electricity prices, the Group and the Company entered into a power purchase
agreement (PPA) with an electricity producer which will be supported by renewable energy sources.
On 07.04.2023, the merger by absorption of the subsidiary of ELVALHALCOR, unlisted SA company with the name
“ETEM Commercial and Industrial Light Metals Societe Anonyme” by the SA company with the name “COSMOS
ALUMINIUM A.E.” was completed.
2. Financial Standing
ELVALHALCOR’s Management has adopted to focus on measures and reports internally and externally Ratios and
Alternative Performance Measures. These ratios provide a comparative outlook of the performance of the
Company and the Group and constitute the framework of undertaking decisions for the Management.
Liquidity: This is the measure of coverage of the current liabilities by the current assets and can be calculated by
the ratio of the current assets to current liabilities. The figures are derived from the Statement of Financial Position.
For the Group and the Company for the current fiscal year and the comparative prior year are as follows:
GROUP €'000
31.12.2022
Liquidity =
Current Assets
1,077,132
1.90
1,312,177
1.97
Current Liabilities
568,175
666,892
COMPANY €'000
31.12.2022
Liquidity =
Current Assets
752,595
1.69
903,219
1.88
Current Liabilities
444,578
481,668
Leverage: This is an indication of the leverage and can be calculated by the ratio of Equity to Debt. The amounts
are used as presented in the Statement of Financial Position. For 2023 and 2022 the index is as follows:
GROUP €'000
31.12.2023
31.12.2022
Leverage =
Equity
962,382
1.13
978,372
0.99
Loans & Borrowings
853,867
990,753
COMPANY €'000
31.12.2022
Leverage =
Equity
809,247
1.11
852,475
1.01
Loans & Borrowings
727,959
845,916
Annual Financial Report of 31st December 2023
6
Return on Invested Capital: It is the performance rate of the returns of the equity and the loans invested and is
measured by the ratio of operating result before interest and tax to equity plus loans and borrowings. The amounts
are used as presented in the Statement of Profit and Loss and the Statement of Financial Position. For the fiscal
year 2023 and the prior year, the ratios for the Group and the Company are as follows:
GROUP €'000
31.12.2023
31.12.2022
Return on
Invested
Capital =
Operating profit / (loss)
103,090
5.68%
256,250
13.01%
Equity + Loans &
Borrowings
1,816,249
1,969,125
COMPANY
€'000
31.12.2023
31.12.2022
Return on
Invested
Capital =
Operating profit / (loss)
25,926
1.69%
174,607
10.28%
Equity + Loans &
Borrowings
1,537,206
1,698,391
Return on Equity: It is a measure of return on equity of the entity and is measured by the net profit / (loss) after
tax to the total equity. The amounts are used as presented in the Statement of Profit and Loss and the Statement
of Financial Position. For the years 2023 and 2022, the ratio is as follows:
GROUP
€'000
31.12.2023
31.12.2022
Return on
Equity =
Net Profit / (Loss)
32,846
3.41%
161,889
16.55%
Total Equity
962,382
978,372
COMPANY
€'000
31.12.2023
31.12.2022
Return on
Equity =
Net Profit / (Loss)
2,524
0.31%
111,495
13.08%
Total Equity
809,247
852,475
Pursuant to the 8.11.2021 issuance of the Common Bond Loan of EUR 250 million tradeable in the Athens Stock
Exchange in the Bonds Category/Main Market with ISIN: GRC281121BD8, the Group undertook the
commitment of reporting the following ratios at consolidated level. For purposes of transparency and uniformity
the ratios are presented at company level as well.
Net Debt to a-EBITDA ratio: Is the measure which shows the number of years that it takes to repay the Net Debt in
case that the Net Debt and the a-EBITDA remain constant. Net Debt is the sum of “Loans and Borrowings” and
“Lease Liabilities” as reported in the Current liabilities and Non-Current liabilities, minus the caption of “Cash and
cash equivalents” as calculated and reported in the Financial Statements. For the fiscal year 2023 and 2022 the ratio
is as follows:
Annual Financial Report of 31st December 2023
7
GROUP €'000
31.12.2023
31.12.2022
Net Debt / a-EBITDA
Net Debt
813,350
3.40
955,559
3.52
a-EBITDA
239,330
271,216
COMPANY €'000
31.12.2023
31.12.2022
Net Debt / a-EBITDA
Net Debt
701,335
5.59
828,241
4.60
a-EBITDA
125,483
180,034
Where Net Debt:
GROUP €'000
31.12.2023
31.12.2022
Net Debt
Non-Current Liabilities
Plus: Loans and Borrowings
694,544
778,250
Plus: Lease Liabilities
7,809
5,442
Current Liabilities
Plus: Loans and Borrowings
148,866
202,704
Plus: Lease Liabilities
2,649
4,357
(Less): Cash and cash equivalents
(40,517)
(35,195)
=
813,350
955,559
COMPANY €'000
31.12.2023
31.12.2022
Net Debt
Non-Current Liabilities
Plus: Loans and Borrowings
651,223
712,604
Plus: Lease Liabilities
4,193
3,611
Current Liabilities
Plus: Loans and Borrowings
71,020
126,195
Plus: Lease Liabilities
1,523
3,506
(Less): Cash and cash equivalents
(26,624)
(17,675)
=
701,335
828,241
Total Liabilities to Equity ratio: Is the measure of leverage of an entity. For the fiscal year 2023 and 2022 stands as
follows:
Annual Financial Report of 31st December 2023
8
GROUP €'000
31.12.2023
31.12.2022
Total liabilities /
Total equity
Total Liabilities
1,371,068
1.42
1,555,457
1.59
Total Equity
962,382
978,372
COMPANY €'000
31.12.2023
31.12.2022
Total liabilities /
Total equity
Total Liabilities
1,163,411
1.44
1,273,509
1.49
Total Equity
809,247
852,475
a-ΕΒΙΤDΑ to Net Finance Expenses: Is the measure of the financial expenses’ coverage. More specifically, Net
Finance Expenses is calculated by “Finance Costs” minus “Finance Income”, as reported in the Financial Statements.
For the fiscal year 2023 and 2022 stands as follows:
GROUP €'000
31.12.2023
31.12.2022
a-EBITDA /
Net Finance Expenses
a-EBITDA
239,330
4.51
271,216
6.51
Net Finance
Expenses
53,121
41,675
COMPANY €'000
31.12.2023
31.12.2022
a-EBITDA /
Net Finance Expenses
a-EBITDA
125,483
3,16
180,034
5.39
Net Finance
Expenses
39,731
33,391
Net Finance expenses:
GROUP €'000
31.12.2023
31.12.2022
Net finance expenses
Finance Costs
56,596
42,210
(Less): Finance Income
(3,476)
(535)
=
53,121
41,675
COMPANY €'000
31.12.2023
31.12.2022
Net finance expenses
Finance Costs
43,311
34,036
(Less): Finance Income
(3,580)
(646)
=
39,731
33,391
EBITDA: It is the measure of profitability of the entity before taxes, financial, depreciation and amortisation. It is
calculated by adjusting the depreciation and amortisation to the operating profit, as this is reported in the
Statement of Profit and Loss. For the period including the results of the absorbed after the transaction date for the
prior year comparatives, it was calculated as follows:
Annual Financial Report of 31st December 2023
9
Amounts in EUR
thousand
GROUP
COMPANY
2023
2022
2023
2022
Operating profit / (loss)
103,090
256,250
25,926
174,607
Adjustments for:
+ Depreciation of tangible assets
70,461
66,348
48,693
43,257
+ Depreciation of right of use assets
2,568
3,325
1,471
1,732
+ Amortisation
1,068
1,371
593
685
+ Depreciation of investment property
739
543
1,783
1,692
- Amortisation of Grants
(1,535)
(1,673)
(1,146)
(1,254)
EBITDA
176,390
326,163
77,320
220,719
a – EBITDA: adjusted EBITDA is a measure of the profitability of the entity after adjustments for:
• Metal result
• Restructuring Costs
• Special Idle costs
• Impairment of fixed assets
• Impairment of Investments
• Profit / (Loss) of sales of fixed assets, investments if included in the operational results
• Other impairment
For the fiscal year:
Amounts in EUR
thousand
GROUP
COMPANY
2023
2022
2023
2022
EBITDA
176,390
326,163
77,320
220,719
Adjustments for:
+ Loss / - Profit from Metal Lag
47,403
(61,517)
39,041
(45,568)
+ Losses from Fixed assets write-offs or impairments
1,610
8,674
1,296
6,813
- Profit / + Loss from sale of Assets
(264)
(2,104)
(190)
(1,930)
+ Reversal of Impairment
(176)
-
(176)
-
- Loss from valuation of financial instruments
3,588
-
-
-
+ Loss from sale of investment
2,589
-
-
-
+ Other extraordinary losses
8,191
-
8,191
-
a - EBITDA
239,330
271,216
125,483
180,034
Annual Financial Report of 31st December 2023
10
Metal result stems from:
1. The time period that runs between the invoicing of the purchase, holding time and metal processing versus
the invoicing of sales.
2. The effect of the opening balance of inventory (which in turn is affected by the metal prices of prior periods)
on the amount reported as Cost of Sales, due to the valuation method used which is the weighted average.
3. Specific customer contracts containing fixed forward price commitments which result in exposure to
changes in metal prices for the period of time between when our sales price fixes and the sale actually
occurs
ELVALHALCOR and its subsidiaries use derivatives to reduce the effect of the fluctuation of metal prices. However,
there will always be a positive or negative effect in the result due to the safety stock that is held. The calculation of
the metal price lag as derived from the financial statements can be analysed as follows:
GROUP
COMPANY
31.12.2023
31.12.2022
31.12.2023
31.12.2022
(Α) Value of Metal in Sales
2,344,543
2,734,956
1,551,671
1,782,857
(B) Value of Metal in Cost of Sales
(2,394,067)
(2,693,176)
(1,590,246)
(1,752,719)
(C) Result of Hedging Instruments
2,121
19,736
(466)
15,430
(A+B+C) Metal Result in Gross Profit
(47,403)
61,517
(39,041)
45,568
The “other extraordinary losses” includes non-operational impairments and could be considered as extraordinary
out of which Euro 1,9 million related to allowances of loans receivable (note 35) and Euro 5,5 million related to
remeasurement of the receivable concerning the Strategic Shareholder Agreement (note 18).
3. Main risks and uncertainties
The Group is exposed to the following risks due to the use of its financial instruments:
Credit risk
The Group and the Company’s exposure to credit risk are primarily affected by the features of each customer. The
demographic data of the Group’s clientele, including payment default risk that determines the specific market and
the country in which customers are active, affect credit risk to a lesser extent since no geographical concentration
of credit risk is noticed. No client exceeds 10% of total sales (for the Group or Company), and, consequently, the
commercial risk is spread over a large number of clients. More specific, it should be noted that INTERNATIONAL
TRADE S.A trades products of the Group ELVALHALCOR to various foreign countries, with the delivery provided
directly from the production facilities of the Group to the end use customers, none of which exceeds 10% of total
sales. ELVALHALCOR’s transactions with INTERNATIONAL TRADE are approved by the Board of Directors and are
published to the Business Registry (GEMH), pursuant to art. 99-101 of the Law L4548/2018.
The Board of Directors has adopted a credit policy, which assesses each new customer separately for
creditworthiness before normal payment terms are proposed. The creditworthiness control implied by the Group
and the Company includes the examination of bank sources. Credit limits are set for each customer, which are
reviewed in accordance with the current conditions and the terms of sales and collections are revised, if it is
required. In principle, the credit limits of customers are set on the basis of the insurance limits received for them
from insurance companies and, subsequently, receivables are insured according to such limits.
Annual Financial Report of 31st December 2023
11
During the monitoring of customers’ credit risk, customers are grouped according to their credit characteristics, the
maturity characteristics of their receivables and any past difficulties of collectability they have shown. Trade and
other receivables include mainly wholesale customers of the Group and the Company. Customers that are
characterized as being of “high risk” are included in a special list of customers for further monitoring and future
sales should be collected in advance. Depending on the background of the customer and his properties, the Group
and the Company demands as collateral securities or other security (e.g. letters of guarantee) in order to secure its
receivables, if possible.
Bearing in mind that there is no official definition of default, ElvalHalcor considers as default the occurrence of one
or both of the following events: i) The Company assumes that the counterparty is unlikely to fully recover its
obligation to the Company, unless the Company obtain measures, such as the liquidation of any collateral provided
in favour of the insurance company. ii) The counterparty is overdue for payment / fulfilment of its obligation to the
Company for a period of more than 30 days (provided that the terms of the credit have not been changed by
agreement of the Company). Any write-off is carried out following the completion of the legal actions.
The Group and the Company record impairment allowances that reflect its assessment of losses and expected credit
losses from customers, other receivables, and investments in securities. This allowance mainly consists of
impairment losses of specific receivables that are estimated based on given circumstances that they will be
materialized though they have not been finalized yet, as well as an allowance for expected credit losses according
to the Group’s analysis which was formulated for the implementation of IFRS 9.
Investments
These items are classified by the Group pursuant to the purpose for which they were acquired. The Management
decides on the proper classification of the investment at the time of the acquisition and reviews classification on
each presentation date.
The Management estimates that there will be no payment default for such investments.
Guarantees
Group’s and the Company’s policy consists of not providing any financial guarantees unless the Board of Directors
decides so on an exceptional basis, and as considered in article 99-101 of law 4548/2018; The guarantees provided
by the Group do not pose a significant risk.
Liquidity risk
Liquidity risk is the inability of the Group to discharge its financial obligations when they mature. The approach
adopted by the Group to manage liquidity is to ensure, by holding the necessary cash and having adequate credit
limits from cooperating banks, that it will always have adequate liquidity in order to cover its obligations when they
mature, under normal or more difficult conditions, without there being unacceptable losses or its reputation being
jeopardized. It is noted that the Group held cash and cash equivalents on 31 December 2023, which amounted to
Euro 40.5 million and the Company Euro 26.7 million as well as approved but not utilized lines of credit to cover
current and medium-term liabilities. As far as investments are concerned, the Group and the Company take new
loans according to their needs (see note 23). Moreover, the Group communicates with the banks to secure proper
refinancing of loans that expire.
In order to avoid liquidity risk, the Group and the Company examine a cash flow projection for one year while
preparing the annual budget as well as a monthly rolling projection for three months to ensure that it has adequate
cash to cover its operating needs, including the fulfilment of its financial obligations. This policy does not take into
account any impact of extreme conditions which cannot be foreseen.
Annual Financial Report of 31st December 2023
12
Market risk
Market risk is the risk related to fluctuations in raw material prices, exchange rates and interest rates, which affect
the Group’s results or the value of its financial instruments. The purpose of risk management in respect of market
conditions is to control Group exposure to such risks in the context of acceptable parameters while at the same
time improving performance.
The Group enters into transactions that include derivative financial instruments so as to hedge a part of the risks
arising from market conditions.
Risk from the fluctuation of metal prices (aluminium, copper, zinc, other metals, gas)
The Group and the Company base both their purchases and sales on stock market prices/ indexes for the price of
copper and other metals used and incorporated in its products. In addition, the Company is exposed to risk from
the fluctuation of gas prices, as part of its production cost. The risk from metal prices and gas fluctuation is covered
by hedging instruments futures on (London Metal Exchange-LME) and Commodity Forward Start Swaps (Title
Transfer Facility - TTF) respectively. The Group, however, does not hedge the entire working stock of its operation
and, as a result, any drop-in metal prices may have a negative effect on its results through the impairment of
inventories. Respectively, the Group does not hedge all of its future needs for gas, as a result any increase in gas
prices may adversely affect its costs.
Exchange rate risk
The Group is exposed to foreign exchange risk in relation to the sales and purchases carried out and the loans issued
in a currency other than the functional currency of Group companies, which is mainly the Euro. The currencies in
which these transactions are held are mainly the Euro, the USD, the GBP and other currencies of S/E Europe.
Over time, the Group and the Company hedge part of their estimated exposure to foreign currencies in relation to
the anticipated sales and purchases and the greatest part of receivables and liabilities in foreign currency. The
Group enters mainly into currency forward contracts with external counterparties so as to deal with the risk of the
exchange rates variation, which mainly expire within less than a year from the balance sheet date. When deemed
necessary, these contracts are renewed upon expiry. As the case may be, foreign exchange risk may be hedged by
taking out loans in the respective currencies.
Loan interest is denominated in the same currency with that of cash flows, which arises from the Group’s operating
activities and is mostly the Euro.
The investments of the Group in other subsidiaries are not hedged because these exchange positions are considered
to be long-term.
Interest rate risk
The Group finances its investments and its needs in working capital through bank and bond loans, thus interest
charges burden its results. Rising interest rates have a negative impact on results since borrowing costs for the
Group rise. The consistently high interest rates to control inflation and mitigate it to the desired levels (2%) as well
as the prospects for a non-immediate and sharp reduction of those that have a negative impact on the results as
the Group and the Company will be burdened with additional borrowing costs.
The Group and the Company may undertake loans issued at fixed rates for the reduction of the Interest rate risk
when it is deemed necessary. Also, the Group and the Company carry out interest rate risk hedging operations using
floating to fixed interest rate swaps for a part of their long-term borrowing.
The Group and the Company document the existence of an economic relationship between the hedged item and
the hedging instrument based on reference interest rates, time periods, maturity dates and nominal values.
The Group and the Company assess whether the derivative identified in each hedging relationship is expected to
be effective on changes in the cash flows of the hedged item.
Annual Financial Report of 31st December 2023
13
Capital management
The Groups’ policy is to maintain a strong capital base to ensure investors’, creditors’ and market’s trust in the
Group and to allow Group activities to expand in the future. The Board of Directors monitors the return on capital
which is defined by the Group as net results divided by total equity and minority interests. The Board of Directors
also monitors the level of dividends distributed to holders of common shares.
The Board of Directors tries to maintain equilibrium between higher returns that would be feasible through higher
borrowing levels and the advantages and security offered by a strong and robust capital structure.
The Group does not have a specific plan for own shares purchase.
There were no changes in the approach adopted by the Group in how capital was managed during the financial
year.
Cash Flow Hedging
The Group and the Company base both their purchases and sales on metals exchange prices for the price of copper,
aluminium and other metals used and contained in their products and may invoice customers distinctly, but also to
proceed to purchases from suppliers, regarding the quantities of metal required for their operation. Consequently,
for each sale of a product or other inventory item that contains metal, at the point of time the LME price is agreed
with the customer, a long position is opened on the LME for the corresponding quantity contained using derivatives,
and for each order of raw materials from suppliers, at the point of time the LME price is agreed with the suppliers,
a short position is taken on the LME for the corresponding quantity using derivatives, where and if these daily
purchases and sales cannot be offset by each other (back-to-back). Thus, the Group and the Company cover
purchases and sales with cash-flow hedging operations, ensuring that the fluctuation of the price of metals in the
international markets will not affect the operating cash flows and consequently the regular, sustainable and optimal
operation of the Group and the Company.
More specific, for cash flows hedges related to natural gas, the Group and the Company conduct Commodity
Forward Start Swaps to hedge the risk of fluctuations in natural gas prices, that is embedded in future gas purchases.
Also, the Company, from its operations, is exposed to fluctuations in gas prices as a component of production costs.
The risk of natural gas price fluctuations is covered by cash flow hedging using Commodity Forward Start Swaps
derivative contracts traded on the Title Transfer Facility (TTF). In particular, the Company assumes a long position
for predetermined quantities of natural gas that will be consumed in its future production. Upon the
commencement of the hedging transaction, the Group and the Company shall document the hedging relationship
between the hedged item and the hedging instrument in relation to risk management and the strategy for future
gas transactions. The Group and the Company document the assessment of the effectiveness of the hedging
relationships in terms of offsetting changes in the fair value of cash flows of the hedged items, both at the inception
of the hedging relationship and on an ongoing basis.
Finally, the Group and the Company use derivative financial instruments in order to hedge their cash flows from
the risk of changes in reference interest rates, as part of the risk management strategy. More specifically, the Group
and the Company proceed with interest rate swaps floating to fixed rate, for a portion of their long-term
borrowings. Interest rate swaps designated as cash flow hedges involve receiving floating rate amounts from a
counterparty in exchange for the Company and the Group making fixed rate payments during the term of these
agreements without exchanging the underlying amount of their financial obligations. This results in any change in
the hedged item causing an equal but opposite change in the cash flows of the hedging instrument. The Group
documents the existence of an economic relationship between the hedged item and the hedging instrument based
on reference interest rates, time periods, maturity dates and nominal values.
Annual Financial Report of 31st December 2023
14
Inflation pressures
Inflationary pressures in the market appear to be persisting, resulting in an upward trend in the production costs
stemming mainly from rising energy, raw material and transportation prices. The price environment for natural gas
and in general energy in the Eurozone is inextricably linked to the geopolitical conflicts between Russia and Ukraine.
In order to mitigate the risk of natural gas price increases, the Group and the Company, carry out transactions on
derivative financial instruments (Commodity Forward Start Swaps) in order to compensate for the risk of natural
gas price increases. Commodity Forward Start Swaps derivative contracts are traded through the Title Transfer
Facility (TTF) stock Index.
To mitigate the risk of the increase in electricity prices, the Group and the Company entered into a power supply
agreement (PPA) with an electricity producer which will be supported by renewable energy sources.
Climate Change Risk
The challenges by climate change could lead to damage of assets and infrastructure, shortages of raw materials,
fluctuations in raw material prices and supply chain disruptions. Recognizing the current challenges of climate
change, energy efficiency and the circular economy, the Group and the Company are committed to managing and
addressing these challenges by continuously reducing their carbon emissions and environmental footprint through
the implementation of specific policies, procedures and initiatives. For this reason, Elvalhalcor assesses the
potential risks and the potential benefits of the opportunities with the aim of taking all the necessary measures to
mitigate the negative and maximize the positive effects, as well as adopting the framework regarding the Task Force
on Climate-Related Financial Disclosures (TCFD). More details are included in the non-Financial information section
attached to the attached annual report.
Both the Aluminium and Copper sectors have opportunities linked to new low-carbon and circular economy
products, such as products with increased recycled content, energy-efficient heating and ventilation systems
(HVAC) and digital technologies, in addition to opportunities related to the development of products that enable
decarbonisation due to changing consumer preferences.
Based on the above, the financial effects have been considered in the accounting estimates to the extent that they
can be assessed at present. In addition, the challenges associated with climate commitments have been examined
and Elvalhalcor companies have not identified additional issues that may have a material impact on their financial
statements.
Carbon Border Adjustment Mechanism | CBAM
The CBAM was implemented from 1 October 2023 (extended from 1 January 2023), but with a transitional phase
linked to the phasing out of free allowances under the EU Emissions Trading System (ETS). Currently, the final
implementation of the Mechanism is estimated for January 1, 2027 and it concerns only the Aluminium segment,
but it is expected to be applied in the future also to the Copper segment.
As of January 1, 2027, the obliged companies will also bear the financial burden of the measure with the obligation
to pay guarantees and purchase CBAM certificates. Certificates cannot be traded on the EU ETS market and will
initially be subject to a "rights free" scheme (similar to the EU ETS regime). It is therefore becoming clear that the
CBAM will affect businesses in the EU and worldwide both in terms of business operation and strategic decision-
making, while the effects may be direct or indirect.
Annual Financial Report of 31st December 2023
15
The Group and the Company take all necessary measures to assess the financial impact of the CBAM in the supply
chain and taking the necessary actions to limit the costs associated with the review of supply chain structure,
inventory management, planning production etc. as well as the review of the structure of imports into the EU taking
into account the financial burden due to customs duties and CBAM, but also the administrative burden for
compliance with required procedures, including declaratory obligations and any limitations due confidentiality of
information. More details are included in the section on non-Financial information attached to the attached annual
report.
Macro-economic environment
Despite the limitations in the global economy and logistics, the implementation of investment programs was
performed in accordance with the program, while the uninterrupted operation of the production continued for
another year, which was an advantage over many Europeans competitors. The availability and prices of the basic
raw materials follow and are determined by international market and are not affected by the domestic situation in
any individual country. Elvalhalcor has multiple alternative sources of supply of raw materials and acts proactively
by increasing safety stocks in key materials, where and when this becomes necessary, thus dealing with any rhythm
disturbance in supply chains are observed.
Ιt is worth to mention that Elvalhalcor perform sales to companies with long-term partnerships and presence in
local markets and do not face particular risks related to macroeconomic environment. Despite all this, the
Management constantly evaluates the individual parameters and the possible negative effects, to ensure that all
necessary and possible measures are taken in a timely manner and actions to minimize any impact on the activities
of the Company and the Group.
The Group and the Company monitor closely and continuously the developments in the international and domestic
environment and adapt business strategy and risk management policies in a timely manner to minimize the impact
of macroeconomic conditions on operations.
Penalties
Geopolitical risks and geopolitical tensions continue to be high on the agenda of both the EU as well as the US and
led the competent authorities to proceed with a series of changes brought about by the 12th package sanctions
against Russia, by amending the EU legislation, and in particular Regulation 833/2014 with the newest regulation
2878/2023. According to the revised regulation, a ban on the sale of goods (copper pipes) is introduced directly and
indirectly to the Russian market. The report of the Copper sector in the Russian market for the 2023 was
approximately €6,5 million on an annual basis (2023). The Aluminium Segment had no exposure to the Russian
market, the effect of which did not have a material impact on the Group's and the Company's figures.
The Company and the Group have taken drastic measures and will continue to take all necessary measures in order
to ensure their compliance with the regulatory framework and with the requirements of the applicable legislation
which govern its operation.
Annual Financial Report of 31st December 2023
16
4. Outlook and targets for 2024
The first signs of 2024 present a weak growth mostly in Eurozone, although a further improvement in the following
years is expected. Inflation is expected to decline further during 2024, as the negative effects of the increased
energy prices of previous years and the delays in supply chain have begun to weaken after the opening of the
economy. The tight monetary policy continues to burden demand, with Russia's ongoing war against Ukraine and
the conflicts in the Middle East to increase geopolitical risk. Gas prices are dropping, as Europe responded well to
the supply shortages with the use of alternative sources, assisted by a relatively warm winter. However, there can
be no certainty that prices will stabilise in these low levels for the remainder of the year. The Group and the
Company follow up developments closely and are ready to address any temporary fluctuations in demand. The
Group and the Company follow up developments closely and are ready to address any temporary fluctuations in
demand. The fluctuations in energy prices and the increased interest rates from Central Banks may affect the global
economy for 2024. It is worth to be noted that in the most segments that Company operates, a pass-through model
exists for metal prices, while the Group uses cash flow hedge strategies in order to respond to any variations in
prices between sales and purchases. In addition, the Company uses hedging in order to mitigate the risk of gas
prices increase for a portion of its long-term sales contracts. Any possible increase in metal prices may increase the
working capital needs, although the Company and its subsidiaries have available all the approved credit lines in
order to respond to the increased needs for working capital. In parallel, The Group will utilize its strategic
advantages, as the customer-centric philosophy, the investments, the production capacity, and high flexibility which
provide the ability to exploit any future opportunity.
The Groups investments follow global megatrends with sustainable, innovative solutions aimed at sustainable
operation and growth-oriented markets such as the packaging for food and beverages industries, electric mobility
and renewable energy sources. With this way the Company and the Group are among the leading industries
worldwide in the production of products and aluminium and copper solutions with a significant contribution to the
value chain within the circular economy.
Finally, the Group and the Company retain their long-term strategy through the increase of exports in Europe and
in other markets outside Europe, as well as the production capacity and the market shares in products with dynamic
prospects for development in the context of circular economy and sustainable development.
5. Transactions with related parties
Transactions with affiliated parties mainly concern purchases, sales and processing of copper and zinc products
(finished and semi-finished). Through such transactions, the companies take advantage of the Group's size and
attain economies of scale.
Transactions between affiliated parties within the meaning of IAS 24 are broken down as follows:
Annual Financial Report of 31st December 2023
17
Transactions of the parent company with subsidiaries (amounts in thousands Euro)
Company
Sales of Goods,
Services and
Assets
Purchases of
Goods, Services
and Assets
Receivables
Payables
ANOXAL SA
1,048
17,107
11,405
1
CABLEL WIRES SA
188
2,278
80
204
ELVAL COLOUR SA
30,924
1,261
19,184
-
EPIRUS METALWORKS SA
14,797
470
11,025
199
ETEM COMMERCIAL SA
2,228
617
-
-
ETEM SCG DOO
77
-
-
-
SOFIA MED AD
77,928
21,080
10,134
1,553
SYMETAL SA
164,920
18,660
5,153
17
TECHOR SA
-
95
-
70
ELVIOK SA
-
-
3
-
VEPAL SA
679
33,470
-
15,812
VIOMAL SA
9,782
59
2,611
-
Total
302,571
95,097
59,597
17,857
Sofia Med SA purchases from ELVALHALCOR raw materials and semi-finished products of copper and copper alloys,
depending on its needs, as well as finished products which distributes to the Bulgarian market. In addition,
ELVALHALCOR provides technical, administrative and commercial support services to Sofia Med. Respectively,
ELVALHALCOR buys from Sofia Med raw materials, semi-finished products according to its needs, as well as finished
products which distributes to the Greek market.
ELVALHALCOR sells semi-finished products that Symetal uses as raw materials and purchases aluminium scrap from
the production process of Symetal, which is re-used as raw material (re-casting). ELVALHALCOR, occasionally, sells
spare parts and other materials to Symetal and provides other supportive services.
ELVALHALCOR S.A. sells final aluminium products to Viomal, which constitute raw material for the latter and Viomal
sells back to ELVALHALCOR the returns from its production process.
Elval Colour S.A. buys final products from ELVALHALCOR, which are used as raw material by the latter and
ELVALHALCOR processes Elval Colour’s materials.
Vepal S.A. processes ELVALHALCOR’s products and delivers semi-finished products. ELVALHALCOR sells raw
materials to Vepal and also provides supporting administrative services to the latter.
Anoxal S.A., also, processes ELVALHALCOR’s raw materials and ELVALHALCOR provides administrative support to
Anoxal. Furthermore, Anoxal purchases from ELVALHALCOR other materials (spare parts and other consumables)
for its production process.
Epirus Metalworks purchases raw materials from ELVALHALCOR, proceed with the process and then sales finished
products to ELVALHALCOR. ELVALHALCOR provides administrative services to Epirus Metalworks.
ETEM COMMERCIAL SA for first trimester of 2023 rents industrial facilities from ELVALHALCOR, purchases
aluminium billets and sells in its turn aluminium scrap from its production process to ELVALHALCOR.
Annual Financial Report of 31st December 2023
18
Transactions of the parent company with other affiliated companies (amounts in thousands of Euro)
Company
Sales of
Goods,
Services and
Assets
Purchases
of Goods,
Services
and Assets
Receivables
Payables
INTERNATIONAL TRADE
443,796
-
23,517
-
TEPROMKC GMBH
68,493
2,222
3,643
136
METAL AGENCIES LTD
10,357
1,253
634
118
ETEM ALUMINIUM EXTRUSIONS SA
37,363
10,948
16,726
395
REYNOLDS CUIVRE SA
60,866
984
11,641
56
UEHEM GMBH
70,368
131
5,856
4
BRIDGNORTH LTD
5,932
23,708
13,720
-
STEELMET ROMANIA SA
10,817
482
-
120
SOVEL SA
(118)
22
-
186
NEDZINK B.V.
72,419
19,200
24,904
-
GENECOS SA
8,235
398
1,076
-
FULGOR SA
3,717
16,037
1,616
2,439
TEKA ENGINEERING
28
7,523
47
1,563
STEELMET SA
5
9,232
147
33
TEKA SYSTEMS SA
-
4,600
-
953
VIENER SA
-
1,407
69
19
VIEXAL SA
-
5,499
-
34
ERGOSTEEL SA
38
1,762
48
826
ETEM Automotive Bulgaria SA
20
1,357
-
43
SIDENOR INDUSTRIAL SA
454
68
278
1
VIOHALCO SA
-
130
-
-
ELKEME SA
219
2,122
34
560
BASE METAL TICARET VE SANAYI A.S.
-
1,270
-
405
OTHER
1,378
7,794
1,635
1,062
794,388
118,148
105,590
8,952
Cenergy Group purchases raw materials from ELVALHALCOR according to their needs. In its turn, it sells copper
scrap to ELVALHALCOR from the products returned during its production process.
Steelmet Group provides ELVALHALCOR with administration and organization services.
INTERNATIONAL TRADE S.A trades products of the Group to various foreign countries, with the delivery provided
directly from the production facilities of the Group to customers, the majority of them does not represent 10% of
total sales. ElvalHalcor’s transactions with INTERNATIONAL TRADE are approved by the Board of Directors and are
published to G.E.MI. (ΓΕΜΗ), pursuant to art. 99-101 of the Law L4548/2018.
Metal Agencies LTD acts as a merchant - central distributor of ELVALHALCOR Group in Great Britain.
TEPROMKC Gmbh trades ELVALHALCOR’s products in the German market.
Steelmet Romania trades ELVALHALCOR’s products in the Romanian market.
Teka Systems S.A. provides consulting services in IT issues and SAP support and upgrade.
TEKA ENGINEERING carry out various industrial constructions for ELVALHALCOR.
Anamet S.A. provides ELVALHALCOR with considerable quantities of copper and brass scrap.
Viexal SA provides ELVALHALCOR with travelling services.
Annual Financial Report of 31st December 2023
19
Tepro Metall AG trades (through its subsidiary MKC) ELVALHALCOR products and represents the latter in the
German market.
Genecos, as well as its subsidiary Reynolds Cuivre sell ELVALHALCOR’s products and represent ELVALHALCOR in the
French market.
ETEM Gestamp Aluminium Extrusions purchases from ELVALHALCOR aluminium billets and sells in its turn
aluminium scrap from its production process to ELVALHALCOR.
Η GESTAMP Etem Automotive Bulgaria sells aluminium scrap from ELVALHALCOR’s production process.
UACJ ELVAL HEAT EXCHANGER MATERIALS purchases from ELVALHALCOR finished aluminium products and
distributes them to international markets.
Transactions of ELVALHALCOR’s Group with other affiliated companies (amounts in thousands of Euro)
Company
Sales of Goods,
Services and
Assets
Purchases of
Goods, Services
and Assets
Receivables
Payables
INTERNATIONAL TRADE
562,054
-
27,272
19
TEPROMKC GMBH
133,539
4,858
12,015
1,961
METAL AGENCIES LTD
62,946
1,338
5,834
961
ETEM ALUMINIUM EXTRUSIONS SA
37,397
11,149
16,726
395
BRIDGNORTH LTD
5,933
31,567
13,720
-
REYNOLDS CUIVRE SA
88,398
1,319
17,204
616
UEHEM (Associate)
70,368
131
6,087
4
VIENER SA
-
7,761
76
172
STEELMET ROMANIA SA
16,081
711
114
247
TEKA ENGINEERING
29
7,614
126
1,571
ΟΜΙΛΟΣ ΣΤΗΛΜΕΤ
61
1,918
10
727
NEDZINK B.V.
72,419
19,200
24,939
-
ΟΜΙΛΟΣ CENERGY
18,605
76,863
16,369
2,939
TEKA SYSTEMS SA
-
6,708
495
1,337
GENECOS SA
9,064
726
1,905
184
SOVEL SA
(118)
22
-
186
VIEXAL SA
-
6,675
8
194
VIOHALCO SA
-
130
-
-
ANAMET SA
1,688
551
213
24
ELKEME SA
242
2,635
50
731
ALURAME SPA
10
2,879
5
439
SIDMA SA (Associate)
216
1,539
5
1,189
ETEM Automotive Bulgaria SA
69
1,357
-
43
BASE METAL TICARET VE SANAYI A.S.
-
1,494
-
455
SIDENOR INDUSTRIAL SA
454
78
278
9
DIA.VI.PE.THI.V SA
-
1,195
753
622
Other
(8,198)
(2,835)
(12,221)
3,265
Total
1,071,260
187,583
131,985
18,291
Fees of Executives and Board members (amounts in thousands Euro)
The table below sets out the fees paid to executives and members of the Board of Directors:
Annual Financial Report of 31st December 2023
20
Amounts in EUR thousand
Group
Company
Total Board of Directors
2,726
1,040
Total executive fees
14,505
6,134
The company considers as management executives the General Manager of each division and subsidiary and all
others that report directly to them.
6. Subsequent events
With the approval of the General Assembly from 02.01.2024 of the sole shareholder of the company "ROULOC
CONSTRUCTION COMMERCIAL AND PARTICIPATION SINGLE MEMBER SOCIETE ANONYME " it was decided to
a) reduce the nominal value of each share of the Company from three euros (€3,00) to one euro (€1,00) with
a corresponding increase of the total number of shares of the Company from one hundred thousand
(100.000) to three hundred thousand (300.000)
b) reduce by the amount of eighty-two thousand one hundred and thirty-four euros (€82.134,00) to set off
losses of equal amounts from previous years, with a cancellation of eighty two thousand one hundred
thirty-four (82.134) shares with a nominal value of one euro (€1,00) each, and increased by the amount of
seven hundred eighty two thousand one hundred and thirty four euros (€782.134,00) by cash payment and
the issuance of seven hundred and eighty two thousand one hundred and thirty four (€782.134) new shares
registered shares, with a nominal value of one euro (€1,00) each and
c) the renaming of the company to "f-nous SOCIETY ANONYMOUS".
The above increases in the share capital were certified by the 05.02.2024 decision of its Board of Directors.
There are no subsequent events to December 31, 2023, that significantly affect these financial statements and
should either be disclosed or amend the figures of the financial statements at the year end.
Annual Financial Report of 31st December 2023
21
ELVALHALCOR NON-FINANCIAL REPORTING
General Information
Business Model
The business model of ELVALHALCOR Hellenic Copper and Aluminium Industry S.A. (ElvalHalcor) aims to create
value and positive impact for all stakeholders (shareholders, customers, employees, suppliers, etc.) and society.
ElvalHalcor operates in the aluminium and copper industry, with more than 80 years of experience and know-how,
offering innovative solutions of high added value products for a wide range of applications. ElvalHalcor's success is
founded on its commercial export orientation, customer-focused philosophy, and continuous innovation, with a
strong focus on research and technology. Following its continuous strategic investments in infrastructure, research
and development of new technologies, ElvalHalcor operates state-of-the-art production facilities and is capable of
creating new and innovative products and solutions, aligned with global megatrends of circular economy, energy
transition, urbanization and digitalization.
The strategic role of our aluminium products in circular economy and vital role in achieving the goals of the Green
Deal, as well as copper’s critical role in energy transition and the development of green technologies, are pillars of
ElvalHalcor’s ongoing strategy of climate neutrality.
Elvalhalcor’s portfolio encompasses a range of dynamic markets including:
• Packaging
• Transportation (automotive, marine, rail)
• HVAC&R
• Building and Construction
• Energy networks
• Various industrial applications
Annual Financial Report of 31st December 2023
22
The Non-Financial Information Reporting consolidates strategy and metrics in group level, including production
subsidiaries of the aluminium segment: Symetal S.A., Vepal S.A., Elval Colour S.A., Anoxal S.A., Viomal S.A., and the
copper segment: Sofia Med SA, Cablel Wires S.A. and Epirus Metalworks SA.
Sustainability Governance
Each segment and subsidiary has appointed a Sustainability Manager and Coordinator who has the overview on the
implementation of overall sustainability strategy. Sustainability departments coordinate various functions and
facilitate action plans, while also identifying and manage material impacts, risks and opportunities, while
implementing due diligence processes. Target setting and performance through various KPIs ranging across all ESG
material issues are monitored by executive management. Furthermore, executive management variable
compensation packages have been linked to critical sustainability-related matters, incentivizing performance, with
emphasis on Health and Safety and energy efficiency initiatives.
In order to ensure responsibility and commitment, ElvalHalcor has adopted a series of relevant policies, the
implementation of which lies to the most senior executive of each segment and subsidiary. Policies include Business
Code of Conduct, Environment, sustainability, Energy and Climate Change, Health and Safety, Labour and Human
Rights and Supplier Code of Conduct.
ElvalHalcor’s policies can be accessed here:
Sustainability - ElvalHalcor S.A.
Compliance with these policies is ensured through a due diligence framework, including the monitoring of
Sustainability professionals of each segment and subsidiary and Steelmet (subsidiary of Viohalco providing
corporate services to all subsidiaries) ESG Steering Committee, which conducts regular audits, including physical,
and provides semi-annual reports regarding performance and improvement areas.
Furthermore, all management systems including Energy, Environment and Health and Safety are certified against
relevant standards (ISO 50001:2018, 14001:2015 and 45001:2015 respectively) and regularly monitored by external
auditing parties. In addition, aluminium segment’s overall sustainability management, including supply chain
stewardship, carbon footprint management and human rights impact, is certified against the ASI Performance
Standard, dedicated to the aluminium industry. Elval, the aluminium rolling division, re-certified operations against
the newest version of the standard (3.1) in 2023 and is also certified against the Chain of Custody Standard.
ElvalHalcor annually assesses overall sustainability performance and Carbon Management performance through
relevant and renowned platforms, namely Ecovadis and CDP. In 2023, ElvalHalcor achieved a Gold Medal in Ecovadis
assessment, and a C grade in CDP assessment.
ElvalHalcor also collaborates with Ecovadis to assess sustainability performance in various KPIs, risks and
opportunities in its Supply Chain, in order to enhance responsible sourcing and mitigate possible sustainability risks.
Annual Financial Report of 31st December 2023
23
Sustainability Strategy
ElvalHalcor is committed to sustainability principles and has integrated them into overall business strategy and
decision-making. The principles are founded on the policies and major identified matters and utilize various
qualitative and quantitative metrics and performance indicators, as well as internal and external controls of
monitoring and due diligence. The principles include:
• Energy transition and gradual shift towards RES
• Reduction of carbon footprint, through short- and long- term initiatives and targets
• Supply Chain Responsibility, through evaluation of top-tier suppliers on sustainability matters
• Health and Safety action plan, through 5-year improvement initiatives
• Employee Training through dedicated sustainability training programs
Material Issues and Double Materiality Assessment
ElvalHalcor's material issues evaluation process has been based on the GRI global standards for sustainability
reporting and is a key concept in the framework of the EU Corporate Sustainability Reporting Directive (CSRD). The
double materiality assessment provides a more nuance and complete understanding of ElvalHalcor’s sustainability,
as it comprises impact and financial materiality.
In 2023, a double materiality assessment was performed for each segment, where the company evaluated and
prioritized impacts, risk and opportunities in operations and value chain, with results acting as guidance to strategic
overview on overall sustainability management.
The double materiality assessment procedure followed 4 steps:
• Stakeholder identification and each stakeholder group prioritization. Stakeholder groups included
customers, suppliers, employees, local communities, scientific community, shareholders and more.
• Sustainability matters identification and related impacts, risks and opportunities, through mapping
across relevant industries, global trends and workshop sessions.
• Matters assessment and prioritization through assessment criteria. The matters were assessed
according to impact materiality (according to scale, scope and irremediability as well as likelihood) and
financial risks and opportunities. Impact materiality was assessed both internally, through workshops and
externally, through a dedicated survey tool designed for the specific purpose.
• Creation of the double materiality matrix. After the workshops, the materiality score was calculated,
and the matrix was constructed. ElvalHalcor recognizes that the double materiality is an ongoing process
for the company’s strategy and plans to review the assessment on an annual basis.
Results of the double materiality assessment of ElvalHalcor, consolidating both segments (aluminium and copper)
as well as subsidiaries are presented below, alongside their relevant SDGs target:
Annual Financial Report of 31st December 2023
24
ElvalHalcor’s material issues
Relevant SDG's
Relevant target
(SDG's target)
Climate change and energy
9.4
Circular economy and efficient use of raw materials
9.4, 12.5
Waste management
12.5
Water management
6.4, 6.3
Occupational Health and Safety
8.8
Employee training and development
-
-
Supply chain responsibility
9.3, 12.1
Supporting local communities
9.3
SDG's: The 17 Global Sustainable Development Goals adopted in September 2015 by the 193 UN Member States (2030 Agenda) on achieving a sustainable
future for all: https://sdgs.un.org/goals
The table above shows how ElvalHalcor's important material issues correlate with the global goals of sustainable development that are directly related to the
activities and practices of the Company that contribute to the achievement of the goals.
Environment
ElvalHalcor cultivates environmental responsibility as an integral part of its corporate philosophy, having integrated
in its strategy the responsible management of all environmental matters associated with its activities.
Management's strong commitment in this field is reflected in the Environment, Climate Change and Energy Policy
(www.elvalhalcor.com, section «Sustainable Development/Environment). Management takes steps to implement
good practices aiming at environmental protection and management of any environmental impacts arising from
the Company's operation. The Company operates in accordance with the applicable environmental laws (applicable
National and European laws). ElvalHalcor:
• Implements an Environmental Management System (certified against ISO 14001:2015) in all its production
facilities;
• Implements targeted environmental management plans (e.g. energy-saving plans, actions and initiatives to
reduce air emissions, etc);
• Seeks the rational use of natural resources and operates in accordance with the principles of circular
economy, by optimizing recycled metal usage in production;
• implements an integrated waste management system, which focuses on the adoption of good practices
aiming to prevent waste generation;
• makes continuous investments in environmental protection infrastructure and technologies;
• focuses on continuous training and awareness-raising of its employees and partners in environmental
matters;
Annual Financial Report of 31st December 2023
25
Climate Change and Energy
As stated in the Environment, Climate Change and Energy Policy, as well as in the Business Code of Conduct,
ElvaHalcor is committed to contribute to the global effort to tackle climate change. Aluminium and Copper’s
inherent property of recyclability could result to significantly lower emissions compared to primary metal
production over the life cycle of a product.
In order to thoroughly assess and manage climate-related risk and opportunities, as well as communicate their
management approach, ElvalHalcor implemented the TCFD framework and published its first TCFD Report in 2023.
ELVALHACOR_TCFD_Report_15122023.pdf (elvalhalcor.com)
In the report, the climate-related risk assessment of highlighted transitional risks connected to volatile energy
prices, carbon taxes, effects of the ETS and CBAM, and physical risks related to adverse weather events, and water
availability. Both aluminium and copper segments have opportunities connected to new low-carbon and circular
products, such as products with increased recycled content, energy-efficient HVAC systems and digital technologies,
in addition to opportunities related to the development of products enabling decarbonization due to shifts in
consumer preferences. The transitional risks are mainly expected in the short to medium term, meaning 0-10 years,
whereas physical risks, such as adverse weather events and water availability are expected in the long term (10+
years).
ElvalHalcor’s operational carbon footprint (Scope 1 & 2) is related to energy consumption and depends on national
energy production residual mix for its electrical energy and indirect emissions (Scope 2) and the combustion of
fossil fuels for thermal energy intensive processes (Scope 1), as well as internal transportation vehicles and
emissions related to coating processes. ElvalHalcor participates in the EU Emissions Trading Scheme (ETS), where
annual emissions are verified, and purchases EU carbon allowances.
ElvalHalcor (Group Consolidated Data)
Year
2021
2022
2023
Total Operational Carbon Emissions (Scope 1 and 2)
(tn CO
2
)
(1)
397,034
455,293
453,147
(1) Scope 2 is based on the "location based" method according to the GHG Protocol Directive. Total C0
2
emissions are equal to the sum of direct and
indirect absolute CO
2
emissions. Note: For the calculation of the indirect CO
2
emissions for the year 2023 the coefficients of the year 2022 have
been used by the European Residual Mixes 2022, AIB. As the location-based index will be updated within 2024, the final emission indicators for
2023 will be published in ElvalHalcor's Sustainability Report.
In 2023, ElvalHalcor assessed overall Scope 3 emissions, covering all cradle-to-gate categories. Results of Scope 3
assessment, as well as carbon intensities for all emissions, will be published in ElvalHalcor’s sustainability report. A
critical pillar regarding overall emissions and Scope 3 footprint is the utilization of recycled metal in production,
which displaces primary aluminium and copper in production.
Annual Financial Report of 31st December 2023
26
ElvalHalcor’s plan to reduce operational emissions is to source renewable energy through Power Purchase
Agreements with electrical power suppliers, explore alternative fuel and technologies for thermal energy and
reduce energy footprint, through optimization of production processes and energy reduction projects. Through the
certified Energy Management System (ISO 50001:2018), the company aims at the integrated management of
energy matters and seeks to develop a continuous improvement culture. In 2023, ElvalHalcor completed energy
audits in both segments. The results will advise energy reduction strategy. Furthermore, the aluminium segment
investment in an advanced business intelligent system, to monitor energy consumption and implement corrective
measures.
Water management
Responsible water usage and wastewater treatment is critical for business continuity of ElvalHalcor, and the
company recognizes water as a precious natural resource. To mitigate possible adverse impacts, also related to
future climate risks, continuous efforts are made to reduce water consumption and water intensity.
ElvalHalcor (Group consolidated data)
Year
2021
2022
2023
Water withdrawal
(1000 m
3
)
1,603.8
1,602.3
1,574.3
Waste management
ElvalHalcor implements an integrated waste management process (from production to handling, storage and
treatment), the aim of which is to reduce the volume of waste generated. Our approach to waste management
focuses on techniques for waste volume reduction and reuse, either within the plant or in licensed external
partners. ElvalHalcor applies Best Available Techniques in Waste Management and, as a consequence, most of the
waste generated is led to recycling and energy recovery. To manage all types of waste, ElvalHalcor works with
specialized waste collection, transportation and management companies. The materials that are collected are
recycled and recovered in various ways.
The aluminium rolling division’s facilities operates a state-of-the-art wastewater treatment plant, which treats all
industrial wastewater produced by ElvalHalcor and its subsidiary Symetal.
Although waste generation intensity varies significantly depending on the production processes and the product
mix, the waste intensity per company has remained at similar levels. However, the portion of the generated waste
that is sent for recycling or recovery is maintained at very high %. In 2023, almost 96% of ElvalHalcor’s Group waste
was reused for energy recovery or recycled.
ElvalHalcor (Group consolidated data)
Year
2021
2022
2023
Waste generation (1000 tn)
100.3
117.7
109.2
Waste recovered and recycled (%)
(1)
93.8%
95.4%
95.8%
(1)
Waste recovered and recycled measured versus total waste generated.
Annual Financial Report of 31st December 2023
27
EU Taxonomy
The EU Taxonomy is a classification system that establishes a list of economic activities considered environmentally
sustainable and serves as a foundation for the Action Plan on Financing Sustainable Growth, which supports the
European Green Deal. By creating a common language for sustainable activities, the EU Taxonomy establishes the
first uniform and credible standard that allows economic actors to align with the transition to a low-carbon, resilient
and sustainable future.
The EU Taxonomy Regulation requests that companies subject to an obligation to publish non-financial information
shall disclose in their NFD the proportion of their turnover, capital expenditure and operating expenditure related to
“Taxonomy-eligible and Taxonomy-aligned activities”. The assessment methodology followed by ElvalHalcor this
year has been refined, considering the updated legislation and interpretation issued by the Taxonomy Platform
within 2023.
ElvalHalcor has evaluated the business activities against the EU Taxonomy eligibility criteria for climate mitigation
and climate adaptation and has identified eligible activities as shown below (cf. Disclosures Delegated Act EU
2021/2178):
Eligible economic activity
Description of operating activity
NACE-Code
Climate change
mitigation
Climate change
adaptation
3.5
Manufacture of energy
efficiency equipment for
buildings
Manufacture of façade and roofing,
heating and domestic hot water
systems and cooling, ventilation
systems and heat pumps key
components
3.8 Manufacture of aluminium
Secondary aluminium production
C24.42
Annual Financial Report of 31st December 2023
28
Aluminium segment
The façade and roofing activities have been included under the Manufacture of energy efficiency equipment for
buildings (3.5). ElvalHalcor aluminium segment also engages in secondary aluminium production (3.8), through the
different aluminium companies. However, since there is no distinct category regarding downstream aluminium
production and the products are intermediate and further processed internally (and therefore non-revenue
generating), the eligible turnover KPI of the secondary aluminium production will not be disclosed.
Aluminium facades manufacturing has been included in Taxonomy reporting under the category 3.5 Manufacture
of energy efficiency equipment for buildings.
Copper Segment
For the copper segment, key components for space heating and domestic hot water systems, as well as for cooling,
ventilation systems and heat pumps, (i.e. copper tubes manufacturing) have been included under the Manufacture
of energy efficiency equipment for buildings (3.5).
Proportion of ElvalHalcor companies’ turnover 2023 from products or services associated with Taxonomy-eligible
economic activities.
More information on Taxonomy disclosures can be found in the Annex Ι.
Social Sustainability
Through the Business Code of Conduct and the Labor and Human Rights Policy, ElvalHalcor recognizes the right of
all employees and stakeholders to work with dignity, safety and believe that everyone is responsible for having due
regard for human rights.
ElvalHalcor supports the fundamental principles, as articulated in the Universal Declaration of Human Rights, the
United Nations Guiding Principles on Business and Human Rights, the OECD Guidelines and the ILO Declaration of
Fundamental Principles and Rights at Work. The company supports the protection of international human rights
across the business value chain and will not be complicit in human rights abuses. ElvalHalcor’s policies and
procedures adhere to all applicable national laws and regulatory framework.
Furthermore, ElvalHalcor recognises the detrimental contribution of its people for successful business performance
and future growth. As a result, ElvalHalcor places particular emphasis on human resources development and strives
to maintain a working environment based on equal opportunities that respects each employee and focuses on
strengthening leadership skills and promoting talent. Furthermore, ElvalHalcor has developed a human rights due
diligence procedure, in respect for both operations and as part of Supply Chain evaluation process.
Health and Safety
Due to the nature of ElvalHalcor’s operations, health and safety in the workplace is a fundamental aspect and
assessed as a material matter. Through the Occupational Health and Safety policy, ElvalHalcor is committed to
continually promote health and safety for their employees and partners, including customers, suppliers,
contractors, and visitors. The company strictly complies with applicable legislation and fully implement suitable
standards, instructions and procedures regarding health and safety.
ElvalHalcor’s main goal is "No accident and no occupational illness". To achieve this goal, all employees and business
partners are expected to foster a preventive culture, strictly comply with Health and Safety standards, assess and
mitigate risks, report incidents thoroughly, communicate openly, prioritize training, ensure safe working conditions,
and continually improve Health and Safety performance.
Annual Financial Report of 31st December 2023
29
ElvalHalcor’s approach to the management of occupational H&S matters includes:
• Implementation of a H&S Management System (certified against ISO 45001:2018) in all its premises with the
involvement of all employees and administration.
• Continuous investments in infrastructure projects to reinforce safety at work (zero access).
• Behavioural audits in order to create a safety culture.
• In-depth investigation and recording of all incidents, as well as near misses by implementing improvement
measures aiming to reduce accidents.
• Employee targeted training and awareness raising to nourish safety culture.
ElvalHalcor and its subsidiaries develop detailed risk assessments, facilitating the implementation of control
measures. Emphasis is also given in performing accurate incidents analysis to ensure there is a robust framework
in place which provides for a systematic approach to incident reporting, management and investigation, thereby
enabling effective corrective and preventive actions to be set.
In its desire to further develop and improve its Health and Safety based corporate culture and work environment,
ElvalHalcor partnered with the internationally renowned Health and Safety Consulting firm DuPont Sustainable
Solutions. The purpose of the cooperation, that started in 2022, was to assess the current situation, explore
opportunities and proposals for improvement and cooperate in the implementation of the proposed actions.
ElvalHalcor (Group consolidated data)
2021
2022
2023
Lost time incident rate (LTIR)
(1)
5.96
8.36
5.78
Severity rate (SR)
(2)
139
179
126.2
# fatalities
0
0
0
(1)
LTIR: Lost time incident rate (number of LTI incidents per million working hours)
(2)
S.R.: Severity rate (number of lost workdays per million working hours)
Training, Diversity, Labour
In 2023, ElvalHalcor's Group human resources amounted to 4,152 employees, approx. a 13% increase compared to
2021. The ratio between male and female workers is approximately 87% to 13%, with slight increasing trend over
the last 3-years, in an industry with predominately male workforce, due the nature of operations. ElvalHalcor
understands that an inclusive work environment that values diverse perspectives and experiences can lead to better
innovation, problem-solving, and overall company performance. An inclusive workplace can also attract talent and
expertise, provide leading examples and lead to reputational benefits, all contributing to better innovation and
company performance.
In order to enhance an inclusive workplace environment, ElvalHalcor and subsidiaries rolled out a dedicated training
program for equity, diversity, and inclusion, introduced in 2022 and scheduled to be rolled out to employees over
three years.
Annual Financial Report of 31st December 2023
30
ElvalHalcor (Group consolidated data)
Year
2021 2022 2023
Employee turnover
(1)
15.4%
14.8%
14.7%
% of women in total workforce
11.0%
12.3%
13.2%
(1)
Τurnover rate: Percentage of employees who left the company (due to resignation, dismissal, retirement or death) in total company's workforce (31/12 data).
Employee training and development is also integral for an environment of equal opportunities than nourishes
individual growth, and it was assessed as material for ElvalHalcor. The company implements integrated high value-
added training programs, designed and shaped to meet the requirements of each level within our organization and
is also in line with the Company’s priorities. In 2023, 70,519 hours of training were carried out, a 5% increase since
2022.
ElvalHalcor (Group consolidated data)
Year
2021
2022
2023
Total training hours per employee
(2)
8.5
16.4
17.0
(2)
Total training hours implemented during the year against the total number of Company employees (data 31/12).
Local Communities
ElvalHalcor's (and its subsidiaries) growth and operation is linked to the well-being and growth of adjacent
communities. The company strives to have a positive impact and contribute to the overall economic development
of Greece and benefit local communities by creating jobs and offering business opportunities. It is worth mentioning
that more than 50% of ElvalHalcor total workforce originates from local communities (broader region of Viotia and
Evia, as well as the regions of the North Attica: Avlona, Malakasa, Oropos, Chalkoutsi). In addition, the company
(and its subsidiaries) has a long tradition of fostering local entrepreneurship as it seeks to cooperate, when possible,
with local suppliers.
As a Company operating responsibly, ElvalHalcor provides its support on an annual basis to a number of bodies,
organisations and associations through various sponsorships while also supporting and promoting the voluntary
activities of its employees.
Through its operations, ElvalHalcor and its subsidiaries generate multiple benefits for the society. In addition to the
payment of salaries and other benefits to its employees, the Company pays the State the corresponding taxes and
levies and makes continuous investments and payments to the collaborating suppliers of materials and services.
Thus, the overall positive impact of the Company on both local and broader communities is important.
Annual Financial Report of 31st December 2023
31
Responsible sourcing
Responsible sourcing has been assessed as a material sustainability matter for ElvalHalcor and its subsidiaries. The
company has introduced a Responsible Sourcing initiative, which targets the evaluation and engagement of major
suppliers to identify the ones with potential risks due to their environmental, social and governance practices.
Furthermore, the company has adapted a Supplier's Code of Conduct which requires suppliers to show the same
concern for employee health and safety, respect and protection of the environment, and respect for labour and
human rights as ElvalHalcor. Suppliers must sign off the Code of Conduct and are required to comply with the
principles defined in it and promote these within their own supply chain. To identify, report and investigate
concerns about behaviour in contradiction to the Supplier Code of Conduct, ElvalHalcor uses a whistleblowing
mechanism that was developed to ascertain that any illegal behaviour can be reported without retribution to the
person reporting it.
To increase transparency in the supply chain and to identify potential future risks, ElvalHalcor evaluates Tier 1
suppliers of raw materials on sustainability matters. This evaluation process is facilitated by EcoVadis. Suppliers that
are part of 90% spend are expected to agree to an assessment of their performance on sustainability matters, either
performed by the company or by third parties associated with the company. Additionally, responsible sourcing is
vital to delivering products that carry the minimum environmental and social impact. ElvalHalcor’s Sustainability
Strategy's Responsible Sourcing initiative further closely monitors suppliers' compliance with the Conflict Minerals
Regulation to ascertain that no material is procured from conflict countries.
EcoVadis evaluates suppliers on various sustainability criteria such as environment, labour and human rights, ethics,
and responsible procurement. The results of the evaluations provide Viohalco subsidiaries with valuable insights to
make informed decisions to promote sustainability throughout their supply chain. Moreover, human and labour
rights risks are especially significant in the supply chain of ElvalHalcor, as the raw materials used by the Companies
are located in various geographic locations, with varying degrees of labour standards. The human rights due
diligence procedure applies to all suppliers. The procedure includes a supplier prioritization based on the ABC
classification of suppliers, determined by strategic importance. A&B suppliers are mapped and assessed for human
rights risks, considering the country of operation and industry involvement. For the aluminium rolling division, ASI
certification in Performance and Chain of Custody standards for primary producers is also considered as a critical
verification of sustainable performance.
Furthermore, the Company's procurement policy applies a strategy aiming to boost the local economy, offering
business opportunities and employment to local suppliers. When evaluating and selecting suppliers, local origin is
a criterion factored in.
Governance and Business Ethics
ElvalHalcor prioritizes business ethics and anti-corruption. To ensure accountability and transparency with
stakeholders, robust internal controls and procedures have been implemented.
The Business Code of Conduct outlines how ElvalHalcor promotes corporate culture. The policy covers a
comprehensive range of topics, including corporate values, ethical guidelines and anti-corruption measures, and
guidelines for other areas such as social responsibility, human rights, and environmental protection. The company
has established a whistleblowing mechanism to report possible violations of the Code. The mechanism establishes
the proper channels of reporting for anyone, either within or outside ElvalHalcor and its subsidiaries, to report
illegal behaviour regarding labour or human rights practices, environmental compliance, and business ethics issues
Annual Financial Report of 31st December 2023
32
while at the same time ensuring complete protection and support for reporting persons. The Business Code of
Conduct serves as a guiding document outlining the expected behaviors from all employees. It articulates the rules
of how business is conducted, taking into consideration the interests of stakeholders. ElvalHalcor and its
subsidiaries are committed to promoting business excellence and building long-term relationships with customers
and suppliers.
To enhance above targets and overall business culture, in 2023 ElvalHalcor rolled out employee training on business
ethics, the Code of Conduct, and anti-corruption.
The financial risks related to anti-bribery and corruption lie in the failure to conduct business operations ethically
and comply with the laws and regulations in the jurisdictions in which ElvalHalcor operates. Besides the
whistleblowing mechanism, the internal audit function is responsible for monitoring and reporting timely and
properly any related deviation or misconduct.
As a listed company on the Athens Stock Exchange, ElvalHalcor, guided by transparency and responsible business
operation, follows and complies with the principles of Corporate Governance as they are defined by the current
institutional framework, as well as the respective standards.
Information security & personal data privacy
ElvalHalcor respects the personal data protection and undertakes the appropriate measures according to the
provisions of the General Data Protection Regulation 679/2016 of the European Union and the national
implementation law 4624/2019, with respect to the protection of the personal data of our employees, customers,
suppliers and partners.
Our goal is to harmonize how we operate with international standards and best practices so as to minimize related
risks. To achieve this goal, we have adopted and implemented a Data Protection Privacy Policy, setting specific
roles, procedures and mechanisms for the full range of our activities. Moreover, the provision of “by design and by
default” technological means, the formation of procedures, business activities and information systems, but also
fostering a data protection culture is our primary concern and a continuous improvement goal. During 2023, there
were no incidents of data privacy breaches.
Annual Financial Report of 31st December 2023
33
NOTE:
The non-financial KPI's for 2023, which are presented in this report, are compliant with the Sustainability Reporting Guidelines
of Global Reporting Initiative (GRI-Standards). These KPI's were chosen strictly on the basis of their relevance to the Company's
business (according to the double materiality analysis conducted by the Company). Details on the performance in terms of
sustainable development, and the actions of the Company's responsible operation will be set forth in the 2023 Sustainability
Report of ElvalHalcor (May 2023). The Sustainability Report is an important tool as it reflects the way in which the Company
responds to major issues and to the expectations of all its stakeholders. For 2023 disclosure, ElvalHalcor will produce its
Sustainabilty Report integrating the guidelines of CSRD, alongside previous frameworks. All the ElvalHalcor's Sustainability
Reports (according to the GRI Guidelines) are available on the Company's website http://www.elvalhalcor.com/sustainability.
Annual Financial Report of 31st December 2023
34
ANNEX I
Allocation of turnover, Capex and Opex to the environmental objective of climate change mitigation
ElvalHalcor is particularly concerned by the objective of climate change mitigation. It was determined that activities
3.5 & 3.8 should be allocated to climate change mitigation, as this objective is more pertinent to ElvalHalcor activities,
and the Taxonomy does not allow double counting using other objectives.
Relevant judgement on the Taxonomy-eligibility of our activities:
Manufacture of facades, copper tubes for heating and cooling applications
Activity 3.5 - Manufacture of energy efficiency equipment for buildings
In the specific activity the description includes numerous NACE codes and additional insight within the Technical
Screening Criteria related to the activity was used for this definition.
More specifically:
The economic activity manufactures one or more of the following products and their key components:
a. windows with U-value lower or equal to 1.0 W/m2K;
b. doors with U-value lower or equal to 1.2 W/m2K;
c. external wall systems with U-value lower or equal to 0.5 W/m2K;
d. roofing systems with U-value lower or equal to 0.3 W/m2K;
e. insulating products with a lambda value lower or equal to 0.06 W/mK;
f. household appliances falling into the highest two populated classes of energy efficiency in accordance with
Regulation (EU) 2017/1369 of the European Parliament and of the Council95 and delegated acts adopted
under that Regulation;
g. light sources rated in the highest two populated classes of energy efficiency in accordance with Regulation
(EU) 2017/1369 and delegated acts adopted under that Regulation;
h. space heating and domestic hot water systems rated in the highest two populated classes of energy
efficiency in accordance with Regulation (EU) 2017/1369 and delegated acts adopted under that Regulation;
i. cooling and ventilation systems rated in the highest two populated classes of energy efficiency in accordance
with Regulation (EU) 2017/1369 and delegated acts adopted under that Regulation;
j. presence and daylight controls for lighting systems;
k. heat pumps compliant with the technical screening criteria set out in Section 4.16 of this Annex;
l. façade and roofing elements with a solar shading or solar control function, including those that support the
growing of vegetation;
m. energy-efficient building automation and control systems for residential and nonresidential buildings;
n. zoned thermostats and devices for the smart monitoring of the main electricity loads or heat loads for
buildings, and sensoring equipment;
o. products for heat metering and thermostatic controls for individual homes connected to district heating
systems, for individual flats connected to central heating systems serving a whole building, and for central
heating systems;
p. district heating exchangers and substations compliant with the district heating/cooling distribution activity
set out in Section 4.15 of this Annex;
q. products for smart monitoring and regulating of heating system, and sensoring equipment.
Annual Financial Report of 31st December 2023
35
Based on ElvalHalcor companies’ product lines, it was concluded that eligible turnover is associated with:
• Façade elements (l)
• space heating and domestic hot water systems key components (h)
• cooling and ventilation systems key components (i)
• heat pumps key components (k)
Aluminium Production
Activity 3.8 - Secondary aluminium production
The description of activity 3.8 in Annex I to the Climate Delegated Act does not contain a clear definition of the term
"secondary aluminium".
The aluminium producing companies of ElvalHalcor manufacture aluminium slabs through a remelting process of the
casthouse, using as raw materials primary aluminium, as well as pre-consumer and post- consumer scrap. None of
our activities include primary aluminium production.
As stated above, the products of the aluminium casthouse, based on the description of the operating activity, are
considered intermediate and do not generate revenue.
Taxonomy-non-eligible economic activities
The activities that have not been identified as Taxonomy eligible, and which therefore comprise the Taxonomy non-
eligible %, are currently not included among the sectors and activities included in the EU Taxonomy; however, they
could be included in the activities envisaged in the additional four environmental objectives identified in the
Regulation that are currently being standardized.
Taxonomy-eligible Capex and Opex and individually Taxonomy eligible Capex and Opex
With regards to Capex and Opex related to our Taxonomy-eligible economic activities and Capex/Opex related to
purchases and measures that we consider as individually Taxonomy-eligible, explanations are provided in the
sections “Capex KPI” and “Opex KPI” in the description of our accounting policies.
KPIs and accounting policies
Reporting requirements include the eligibility percentage of the Turnover, CAPEX and OPEX for the companies that
are already included in the Sustainable Finance E.U. law. Article 10(1) of the Disclosures Delegated Act explicitly
requires that in the first year of implementation, non-financial undertakings should disclose "the proportion of
Taxonomy-eligible and Taxonomy non-eligible economic activities in their total turnover, capital and operating
expenditure".
Turnover KPI
Definition
The proportion of Taxonomy-eligible economic activities has been calculated as the part of turnover derived from
the economic activities presented below (numerator):
• 3.5 Manufacture of energy efficiency equipment for buildings
For further details on our turnover accounting policy please refer to page 94 of our Annual Report 2023.
Reconciliation
Turnover of ElvalHalcor can be reconciled to our consolidated financial statements, in “Operating segments” section,
on page 108 of our Annual Report 2023.
Annual Financial Report of 31st December 2023
36
Capex KPI
Definition
The Capex KPI is defined as Taxonomy-eligible Capex (numerator) divided by ElvalHalcor total Capex (denominator).
The numerator consists of Taxonomy-eligible Capex related to assets or processes that are associated with the
economic activities presented below (numerator):
• 3.8 Manufacture of Aluminium
We consider that assets and processes are associated with Taxonomy eligible economic activities when they are
essential components necessary to execute an economic activity. Consequently, all Capex invested into machinery
or equipment for the above-mentioned activities have been included in the numerator of the Capex KPI.
In particular, secondary aluminium Capex includes Capex related to the production of aluminium from secondary
raw materials (including scrap and metal-bearing materials) and the remelting and alloying processes.
The denominator consists of ElvalHalcor companies’ additions to tangible and intangible fixed assets during
financial year 2023, before depreciation, amortisation and any re-measurements, including those resulting from
revaluations and impairments. It includes acquisitions of tangible fixed assets (IAS 16), intangible fixed assets (IAS
38) and investment properties (IAS 40). Additions resulting from business combinations are also included. Goodwill
is not included in Capex, as it is not defined as an intangible asset in accordance with IAS 38. For further details on
our accounting policies regarding Capex please refer to page 108 of our Annual Report 2023.
Reconciliation
Capex of ElvalHalcor can be reconciled to our consolidated financial statements, in “Operating segments” section,
on page 109 of our Annual Report 2023.
Opex KPI
Definition
The Opex KPI is defined as Taxonomy-eligible Opex (numerator) divided by total ElvalHalcor total Opex
(denominator).
The numerator consists of Taxonomy-eligible Opex related to assets or processes that are associated with the
economic activities presented below (numerator):
• 3.5 Manufacture of energy efficiency equipment for buildings
• 3.8 Manufacture of Aluminium
Total Opex (denominator) consists of direct non-capitalized costs that relate to research and development, building
renovation measures, short-term lease, maintenance and repair, and any other direct expenditures relating to the
day-to-day servicing of assets of property, plant and equipment. This includes:
• Research and development expenditure recognized as an expense during the reporting period. Τhis
includes all noncapitalized expenditure that is directly attributable to research or development
activities.
• The volume of non-capitalized leases was determined in accordance with IFRS 16 and includes
expenses for short-term leases and low-value leases.
• Maintenance and repair and other direct expenditures relating to the day-to-day servicing of assets of
property, plant and equipment were determined based on the maintenance and repair costs
allocated to our internal cost centers. The related cost items constitute a portion of total operating
expenses in the income statement. This also includes building renovation measures. In general, this
includes staff costs, costs for services, and material costs for daily servicing as well as for regular and
Annual Financial Report of 31st December 2023
37
unplanned maintenance and repair measures. These costs are directly allocated to our PP&E including
an appropriate allocation of overhead costs. This does not include expenditures relating to the day-
to-day operation of PP&E such as raw materials, cost of employees operating the machine, electricity
or fluids that are necessary to operate PP&E. Direct costs for training and other human resources
adaptation needs are excluded from the denominator and the numerator. This is because Annex I to
Art. 8 Delegated Act lists these costs only for the numerator which does not allow a mathematically
meaningful calculation of the Opex KPI.
Taxonomy alignment KPIs
Based on the Company’s evaluation of the TSC relevant to the eligible activities of the Climate change:
ELVALHALCOR -
ELIGIBLE ACTIVITIES
SEGMENT
ABSOLUTE
TURNOVER
ABSOLUTE CAPEX
ABSOLUTE OPEX
%
%
%
3.5
Manufacture of
energy efficiency
equipment for
buildings
Copper
134,846
4.89%
2,065
1.0%
1,867
1.69%
Manufacture of
energy efficiency
equipment for
buildings
Aluminium
26,199
0.80%
940
0.3%
137
0.12%
3.8
Manufacture of
aluminium
Aluminium
1,958
8.9%
3,459
3.13%
Turnover of
taxonomy eligible
activities (A)
161,045
4.89%
4,963
10.1%
5,464
4.94%
Turnover of
taxonomy non-
eligible activities
(B)
3,132,375
95.11%
86,563
89.90%
105,086
95.06%
Total
Consolidated
(A+B)
3,293,420
100.00%
91,526
100.00%
110,549
100.00%
Annual Financial Report of 31st December 2023
38
BOARD OF DIRECTORS EXPLANATORY REPORT
(Article 4(7) and (8) of Law 3556/2007)
1. Structure of share capital
The Company’s share capital following the 22.11.2017 decision of the General Meetings and the 131569/30-11-
2017 decision of the Ministry of Economy and Development, amounts to Euro 146,344,218.54 divided in
375,241,586 common, dematerialized, bearer shares with nominal value of Euro 0.39 each. All the shares are listed
in the Athens Stock Exchange, included in the “Basic Resources” sector and the “Metal Fabricating” Subsector.
Pursuant to the decisions of the General Meetings of 30.09.2019 and the 106722/21.10.2019 decision of the
Ministry of Development and Investments (ΑΔΑ: 97ΔΔ465ΧΙ8-9Υ0), the Company’s shares converted to
dematerialized, registered with voting rights, in compliance with articles 40 and 184 of the L.4548/2018, as in force.
According to the Company’s Articles of Associations, the rights and obligations of shareholders are as follows:
• Right to obtain a dividend from the Company's annual profits. The dividend to which each share is entitled shall
be paid to the shareholder within two (2) months from the date of approval by the General Meeting of the
financial statements. The right to collect a divided shall be deleted after the elapse of five (5) years from the end
of the year in which the General Meeting approved distribution.
• Pre-emptive right in any share capital increase, which is not carried out by contribution in kind and in any case
of issuance of bonds convertible into shares.
• Right to participate and vote in the General Meeting of Shareholders.
• Subject to the provisions on the community, pledge and usufruct, securities are only issued and transferred
accompanied by the total of the rights they include and any separate disposal of rights is prohibited.
Exceptionally, the profit sharing, interest or capital payments, as well as other independent rights generated by
securities, are freely transferred, upon condition that the relevant securities terms of issuance do not provide
for otherwise.
• Shareholder liability is limited to the nominal value of each share they hold.
2. Restrictions on the transfer of shares of the Company
The transfer of the shares of the Company is made as provided by Law and there exist no restrictions in the transfer
pursuant to its Articles of Association.
3. Major direct or indirect holdings within the meaning of Articles 9 to 11 of Law 3556/2007
The major holdings (over 5%) known on 31 December 2023 were as follows:
• VIOHALCO SA/NV: 84,78% of voting rights.
4. Shares granting special rights of control.
There are no shares in the Company granting to their holders special rights of control.
5. Restrictions on voting rights
The Company’s Articles of Association contain no restrictions on voting rights deriving from its shares.
6. Agreements between Company’s shareholders
The Company is not aware of the existence of agreements between its shareholders which entail restrictions on
the transfer of its shares or the exercise of voting rights deriving from its shares.
Annual Financial Report of 31st December 2023
39
7. Rules on the appointment and replacement of Board members and amendment of the Articles of
Association
The rules contained in the Company’s Articles of Association on appointment and replacement of members of the
Board of Directors and amendment of the provisions of the latter are not different from those contained in L.
4548/2018.
8. Powers of the Board of Directors to issue new shares or purchase own shares
• Article 6 § 1 of the Company’s Articles of Association states that for the capital increase of the Company’s
capital the General Shareholders Meeting is required with an increased quorum and majority of the shareholders,
according to the provisions of article 27 § 1 and 2 of the Company’s Articles of Association (regular increase), unless
the increase takes place according to article 24 of the L.4548/2018 as in force, under the provisions of paragraph 2
of article 6 of the Company’s Articles of Association. In any case of increase the decision of the competent body is
subject to publicity.
• According to paragraph 2 of Article 6 of the Company’s Articles of Association: a) for a period of no longer
that five years of the incorporation of the Company, the Board of Directors has the right, with its decision, taken by
a 2/3 majority quorum to increase the share capital in part or in total with the issuance of new shares, for an amount
that may not exceed three-times the initial capital. b) The aforementioned power can be granted to the Board of
Directors with decision of the Shareholders’ General Meeting, for time period no longer than five years. In this case,
the capital can be increased by an amount no greater than three times the amount of the capital, which exists at
the date when the power to capital increase was granted to the Board of Directors. c) The said power of the Board
of Directors can be renewed with decision of the Shareholders’ General Meeting for a period no longer than five
years for every renewal granted. Each renewal applies from the expiry of the term of the previous. The decisions of
the General Meeting for the grant or renewal of the capital increase power to the Board of Directors are subject to
publicity. d) For a time period not exceeding five years from the incorporation of the company, the General Meeting
may, by its decision, adopted by simple quorum and majority, increase the capital, wholly or partially, by the issue
of new shares, in total up to eight-times the initial capital.
• The Board of Directors may acquire own shares in implementation of a decision of the General Meeting taken
under Article 49 of L. 4548/2018, as in force.
9. Major agreements which take effect have been amended or expire in the case of change in control
The bank loans of both the Company and ELVALHALCOR Group, taken out fully by Banks and set out in Note 22 of
the Annual Financial Report include clauses of change in control granting lenders the right to early terminate them.
Furthermore, the Company (pursuant to the decision of its Board of Directors of 05.11.2021, by authorization and
in execution of the resolution of the extraordinary General Meeting of its shareholders of 05.11.2021) has issues
an ordinary bond loan of a total principal amount of €250.000.000, divided into 250.000 dematerialised, ordinary
bonds of nominal value of €1.000 each, listed for negotiation in the category of Fixed Income Titles of the Regulated
Market of the Athens Exchange, offered by a public offer and the negotiation of which started on 17.11.2021 (“Bond
Loan”). According to the Program (clause 9.4) of the Bond Loan, in case of, among others, occurrence of Notification
of Change of Control (as defined in the said Program, i.e. notification of the Company to the investor community,
on the basis of the provisions of Law 3556/2007, in relation with (a) failure to keep the direct or indirect
participation of Viohalco in the Company by a percentage higher than fifty percent (50%) of the shares and voting
rights, or (b) loss by Viohalco of the control of the Company), each Bondholder shall have, under the other relevant
terms and conditions provided in the above Program of the Bond Loan, the right to demand from the Company the
early repayment of all or part of the Bonds held by them (Put Option).
Annual Financial Report of 31st December 2023
40
There are no other significant agreements which take effect, have been amended or expire in the case of change in
control of the Company.
10. Agreements with Board of Directors members or Company’s staff
There are no agreements between the Company and members of the Board of Directors or staff which provide for
the payment of remuneration specifically in the case of resignation or dismissal without just cause or termination
of service or employment.
Annual Financial Report of 31st December 2023
41
CORPORATE GOVERNANCE STATEMENT
1. Rules of Operation – Corporate Governance Code
The Company has an updated Rules of Operation, according to article 14 of Law 4706/2020, as in force. The said
Rules of Operation include, in particular, the organizational structure of the Company, its Units and Committees,
their object, the policies and procedures applied by the Company, the characteristics of the Company's Internal
Control System etc., while a summary of the Regulation of Operation has been published on the Company’s website
https://www.elvalhalcor.com/investor-relations/corporate-governance/rules-of-operation, in accordance with the
provisions of article 14 par. 2 point b) of Law 4706/2020.
Also, the Company, pursuant to the decision of its Board of Directors of 12.07.2021, has adopted and implements
the Hellenic Corporate Governance Code issued in June 2021 by the Hellenic Corporate Governance Council (HGCC),
as recognized by the Board of Directors of the Committee Capital Market during its 916
th
/7.6.2021 meeting (see
press release of the Capital Market Commission of 07.06.2021), as a National Authority of Recognized Validity for
the issuance of a Corporate Governance Code, according to the provisions of law 4706/20120 and nr.
2/905/3.3.2021 Decision of the Board of Directors of the Hellenic Capital Market Commission (hereinafter the
“Code”), which is available on the internet at the following link:
https://www.esed.org.gr/documents/20121/62611/Hellenic+Corporate+Governance+Code+2021.pdf/f1a35fbf-
1126-ca0e-160c-dbdc55c7198a?t=1626350753153.
The Company complies with the Code, with deviations (according to the relevant decisions of its Board of Directors
of the Company of 12.07.2021, 15.03.2022 and 17.02.2023) from certain paragraphs thereof, which, according to
the Code, relate to “Special Practices” governed by the “comply or explain” principle. According to the decision of
the Board of Directors dated 05.03.2024, these deviations are justified (article 152 par. 1 per. B) Law 4548/2018
and Part E of the Code) and are explained as follows:
− Special Practices of par. 1.14, 2.3.4, 3.1.5, 3.3.4, 3.3.8 and 3.3.12 of the Code: These Special Practices refer to
the Managing Director. The Articles of Association (article 13 par. 1) of the Company, as in force, provide for the
possibility of electing one or more Managing Directors by the Board of Directors of the Company was provided,
defining at the same time their responsibilities. The current Board of Directors of the Company elected by the
Ordinary General Meeting of Shareholders of the Company of 24.05.2023, has not appointed a Managing Director
(whose appointment is not mandatory under law), and has assigned specific powers of management and
representation of the Company to one or more persons, members of the Board of Directors (authorized Directors)
or not, reserving otherwise to the Board of Directors itself the management and representation of the Company
collectively. Therefore, the corresponding deviations from the above Special Practices (pursuant to the decision of
its Board of Directors of 12.07.2021) exist, as long as the Board of Directors has not elected a Managing Director.
According to the current, updated with Law 4706/2020, Rules of Operation of the Company, in the absence of a
Managing Director, the responsibilities provided for by the Managing Director according to Law 4706/2020 (e.g. a
person, to whom administratively reports the Head of the Internal Audit Unit) are exercised by the Vice President
of the Board of Directors of the Company who is an executive member. It is therefore considered that there is no
risk from this deviation.
− Regarding the Special Practice of par. 3.3.3, 3.3.4, 3.3.5 and 3.3.8 of the Code (regarding the annual evaluation
of the Board of Directors), it is noted that the planned evaluation of the Board of Directors on an annual basis mainly
concerns Boards of Directors with a term of office longer than one year. In the case of the Company, the relevant
discrepancy does not exist in principle, but may occur, for practical reasons, due to the fact that the term of the
Board of Directors of the Company, according to article 11 par. 1 of its articles of association, is annual (extended
Annual Financial Report of 31st December 2023
42
automatically until the expiration of the deadline within which the next Ordinary General Meeting must convene
and until the relevant decision is taken, not exceeding two years). Therefore, with the lapse of one year from the
election of the Board of Directors of the Company, when it is foreseen that its evaluation take place according to
the above Special Practice, as a rule, its term expires, and in any case if a new Board of Directors is elected. In this
case, that assessment becomes, in principle, devoid of purpose. It is estimated that in this case there is no risk of
this deviation, as a new Board of Directors will be elected, following the evaluation process of the candidates to be
elected members from the beginning, in accordance with the Company Suitability Policy. If in any way the term of
the Board of Directors of the Company is extended beyond one year, the Company will arrange for the annual
evaluation of the Board of Directors, in accordance with the above Special Practice. In the present case, from the
election of the existing Board of Directors by the Ordinary General Meeting of its shareholders on 24.05.2023 until
the date of the present, less than one year has lapsed. Therefore, upon the completion of one year from the election
of the current Board of Directors and depending on whether his term of office will expire or be extended as
mentioned above, the Company will consider whether it is appropriate for such an evaluation to take place.
− Regarding the Special Practice of par. 8.4, 8.5 of the Code (regarding the use of a communication platform to
ensure a constructive dialogue between the Company and its shareholders): The Company, under the responsibility
of the Shareholder Service Unit and Corporate Announcements, uses basically the corporate website to provide
shareholders with adequate and equal access to information and generally to communicate with them on a regular
basis. The Company is constantly searching for the best possible technical solution to upgrade the environment of
its website, possibly by enriching it with a communication platform, with the aim of strengthening the constructive
dialogue between the Company and its shareholders. It is estimated that this deviation is of minor importance and
there is no risk from it.
The Company will examine periodically on whether the above deviations continue to serve the corporate interest
and will proceed to the necessary adjustments.
2. Main features of the Internal Audit System in relation to the Process of Preparation of Financial Statements
and financial reports
2.1 Description of the main features and components of the Internal Audit System (internal audit, risk
management, regulatory compliance)
The Company has an adequate and effective Internal Audit System, which consists of all the internal control
mechanisms and procedures, including risk management, internal control and regulatory compliance, and covers on
a continuous basis every activity of the Company and contributes to the safe and effective its operation. The
Company's Internal Audit System aims at the following objectives, in particular:
a) Consistent implementation of the business strategy, with the effective use of available resources.
b) The efficient operation of the Internal Audit Unit, whose organization, operation and responsibilities are defined
in the law and its Internal Rules of Operation.
c) In the effective risk management, through the recognition and management of the essential risks related to the
business activity and operation of the Company.
d) Ensuring the completeness and reliability of the data and information required for the accurate and timely
determination of the financial situation of the Company and the preparation of reliable financial statements, as well
as its non-financial statement, in accordance with article 151 of Law 4548 / 2018.
e) The effective compliance of the Company with the regulatory and legislative framework, as well as the internal
regulations governing the operation of the Company (regulatory compliance).
Annual Financial Report of 31st December 2023
43
The Board of Directors ensures that the functions that make up the Internal Audit System are independent of the
business sectors they control, and that they have the appropriate financial and human resources, as well as the
powers to operate them effectively, as required by their role. The reporting lines and the division of responsibilities
are clear, enforceable and duly documented.
The Internal Audit Unit of the Company controls the correct implementation of each process and internal control
system regardless of their accounting or non-accounting content and evaluates the company through a review of its
activities, acting as a service to the Management. Its main mission is to monitor and improve the operations and
policies of the Company and its subsidiaries (hereinafter the "Group") and to provide advisory support by submitting
relevant proposals to the Board of Directors regarding the Internal Audit System. The Internal Audit Unit also aims to
provide reasonable confirmation to shareholders to achieve the goals and objectives of the Group. The Head of the
Internal Audit Unit meets all the formal and substantive selection criteria provided by law.
The Internal Audit System aims, among other things, at ensuring the completeness and reliability of the data and
information required for the accurate and timely determination of the Company's financial situation and the
production of reliable financial statements.
Regarding the preparation of financial statements, the Company reports that the financial reporting system of the
Issuer uses an accounting system that is adequate for reporting to Management and external users. The financial
statements and other analyses reported to Management on a quarterly basis are prepared on an individual and
consolidated basis in compliance with the International Financial Reporting Standards, as adopted by the European
Union for reporting purposes to Management, as well as for publication purposes in line with the applicable
regulations and on a quarterly basis. Both administrative information and financial reports to be published include
all the necessary details about an updated internal control system including analyses of revenue, cost/expenses and
operating profits as well as other data and indexes. All reports towards the Management include the data of the
current period compared to the respective data of the budget, as the latter has been approved by the Board of
Directors, along with the data of the respective period of the previous year.
All published interim and annual financial statements include all necessary information and disclosures about the
financial statements, in compliance with the International Financial Reporting Standards, as adopted by the European
Union, are reviewed by the Audit Committee and respectively approved in their entirety by the Board of Directors.
Audit controls are implemented with respect to: a) risk identification and evaluation as for the reliability of financial
statements; b) administrative planning and monitoring of financial figures; c) fraud prevention and disclosure; d)
roles and responsibilities of executives; e) year-end closing procedure including consolidation (e.g. recorded
procedures, access, approvals, agreements, etc.) and f) safeguarding the data provided by information systems.
The preparation of the internal reports towards the Management and the reports required under L. 4548/2018 and
by the supervisory authorities is conducted by the Financial Services Division, which is staffed with adequate and
experienced executives for this purpose. Management takes steps to ensure that these executives are adequately
updated about any changes in accounting and tax issues concerning both the Company and the Group.
The Company has established separate procedures regarding the collection of the necessary data from its
subsidiaries, and ensures the reconciliation of individual transactions and the implementation of the same accounting
principles by the companies of the Group.
The Risk Management Unit of the Company aims, through appropriate and effective policies, procedures and tools,
to assist the Board of Directors in identifying, evaluating and managing the substantial risks associated with the
business and operation of the Company and the Group, with adequate and effectiveness.
Annual Financial Report of 31st December 2023
44
The Company’s Regulatory Compliance Unit aims to assist the Board of Directors in the full and continuous
compliance of the Company with the current legal and regulatory framework and the internal Regulations and
Policies that govern its operation, providing at all times a complete picture of the degree of achievement of this
purpose.
2.2 Evaluation of corporate strategy, main business risks and Internal Audit System, as well as of the
Corporate Governance System
The Company’s Board of Directors states that it has examined the main business risks that the Group faces as well
as the Internal Audit System. On an annual basis, the Board of Directors reviews the corporate strategy, main
business risks and Internal Control System, on the basis of a relevant proposal by the Audit Committee.
Also, given that on 31.12.2023 the first three (3) financial years (2021, 2022 and 2023) of the application of the
provisions of articles 1 – 24 of Law 4706/2020 [which, according to the provision of par. 3 of article 92 of Law
4706/2020, entered into force twelve (12) months after the publication of this law in the Government Gazette
(17.07.2020), i.e. on 17.07.2021] elapsed, the Board of Directors of the Company, as provided for in article 4 par. 1
of Law 4706/2020, assisted by the Audit Committee and the Remuneration and Nomination Committee of the
Company, carried out, after 31.12.2023, the periodic evaluation of the implementation and effectiveness of the
Company’s Corporate Governance System of the provisions of articles 1 to 24 of Law 4706 /2020, which the
Company has designed and implemented, having taken into account the size, nature, scope and complexity of the
Company’s activities, which is reflected in the Company’s Rules of Operation and the implementation of which is
overseen by the Board of Directors. From this assessment, the Board of Directors of the Company, having
considered the relevant recommendations of the Audit Committee and the Remuneration and Nomination
Committee of the Company of 09.02.2024, unanimously considered, at its meeting of 05.03.2024, that nothing was
detected that could be considered as a material weakness in the Corporate Governance System of the Company,
which, therefore, was assessed as adequate and effective.
2.3 Provision of non-audit services to the Company by its statutory auditors and evaluation of the
effect that this fact may have on the objectivity and effectiveness of mandatory audit, taking also
into consideration the provisions of Law 4449/2017
The statutory auditors of the Company for the financial year 2023, “PriceWaterHouseCoopers Auditing Company
SA” (AM SOEL 113) (268 Kifisias Av. PC:15232, Chalandri, tel: 2106874400) have been elected by the Ordinary
General Meeting of the Company’s Shareholders on 24.05.2023.
Regarding financial year 2023, the fees of the above auditors in respect of audit of the financial statements of the
Company amounted to 251.895 Euros plus VAT (2022: Euros 238.075), for tax audit to 49.700 Euros plus VAT (2022:
47.040 Euros) and fees for other services to 229.080 Euros plus VAT (2022: 71.280 Euros). At a Group level they
amounted to 385.070 Euros (2022: 377.050 Euros), for tax audit 75.850 Euros (2022: 71.715 Euros) and fees for
other services to 257.480 Euros (2022: 96.280 Euros).
2.4 Head of Internal Audit Unit
The Company has appointed Mr. Epameinondas Batalas as Head of the Internal Audit Unit of the Company. Mr.
Batalas holds a bachelor’s degree in Economics and a postgraduate degree in Applied Economics and Finance from
Athens University of Economics and Business (AUEB). Moreover, holds the Diploma in IFRS from the Association of
Chartered Certified Accountants (ACCA).
Annual Financial Report of 31st December 2023
45
2.5 Head of Risk Management Unit
The Company has appointed Mr. Konstantinos Mougios as Head of the Risk Management Unit of the Company. Mr.
Konstantinos Mougios holds a bachelor’s degree in economics and a master’s degree in risk management and has
experience in risk management in the sector of financial and audit services.
2.6 Head of Regulatory Compliance Unit
The Company has appointed Mr. Ioannis Konstantinou as Head of the Regulatory Compliance Unit of the Company
(who replaced Mrs. Sevasti Amanatidou Voloudaki who left this position in 2023). Mr. Ioannis Konstantinou is an
Attorney at Law and has experience in regulatory compliance of enterprises.
3. Public Takeover Offers – Information
− There are no binding takeover bids and/or rules of mandatory assignment and mandatory takeover of the
Company's shares or any statutory provision on takeover.
− There are no third-party public offers to take over the Company’s share capital during the last and current year.
− In case the Company takes part in such a procedure, this will take place in accordance to applicable laws
(European and Greek legislation).
4. General Meeting of the Shareholders and rights of shareholders
The General Meeting of the shareholders of the Company is, according to the Law, the supreme body of the
Company and is entitled to resolve on any affair that involves the Company. It is convened and operates in
compliance with the provisions of the Articles of Association and the relevant provisions of Law 4548/2018, as
amended and in force today. The Company makes the necessary publications and generally takes all steps required
for the timely and thorough information of shareholders in regard to the exercise of their rights. The latter is
ensured by publishing the invitations to General Meetings and uploading them on the Company’s website, the text
of which contains a detailed description of shareholders rights and how these can be exercised.
5. Composition and operation of the Board of Directors, the Supervisory Bodies and the Committees of the Company
5.1 Board of Directors
5.1.1 Roles and responsibilities of the Board of Directors
The Company’s Board of Directors manages the Company and is responsible for the long-term strategy and
operational goals of the Company and generally for the control and decision-making within the framework of the
provisions of Law 4548/2018 and the Articles of Association, and for compliance with corporate governance
principles.
The Board of Directors convenes at the necessary intervals so as to perform its duties effectively.
More specifically and indicatively, the Board of Directors has the following responsibilities:
▪ Defines the long-term strategy and operational goals of the Company.
▪ Has the responsibility of controlling and making decisions within the framework of the provisions of the current
legislation and the Articles of Association, as well as the observance of the principles of corporate governance.
▪ Defines the corporate governance system of articles 1 to 24 of law 4706/2020, supervises its implementation
and monitors and evaluates periodically, every three (3) financial years, its implementation and effectiveness.
Annual Financial Report of 31st December 2023
46
▪ Ensures the adequate and efficient operation of the Company's Internal Control System, which aims at the
following objectives, in particular:
(a) the consistent implementation of the operational strategy, making effective use of the resources available;
(b) the identification and management of substantial risks associated with its business and operation;
(c) the efficient operation of the Internal Audit Unit,
(d) to ensure the completeness and reliability of the data and information required for the accurate and timely
determination of the financial situation of the Company and the preparation of reliable financial
statements, as well as the non-financial situation of the Company, according to article 151 of law 4548 /
2018,
(e) the compliance with the regulatory and legislative framework, as well as the internal regulations governing
the operation of the Company.
5.1.2 Composition – Term of Office of the Board of Directors
The existing Board of Directors of the Company was elected by the Ordinary General Meeting of the Company held
on 24.5.2023, with an annual term (according to article 11 par. 1 of its articles of association) until 24.5.2024, which
is extended, according to article 85 par. 1 point c of Law 4548/2018, as in force, and article 11 par. 2 of the
Company’s Articles of Association, until the expiration of the deadline, within which the next Ordinary General
Meeting must be convened in 2024 and until the receipt of the relevant decision, not exceeding two years. The
above elected Board of Directors was formed in a body during its meeting on 24.05.2023, in which the
representation of the Company was also determined. In the said meeting, the Board of Directors of the Company,
taking into account the long professional audit experience of the independent non-executive member of the Board
of Directors of the Company, Mr. Vassilios Loumiotis of Ioannis, his high scientific training and his teaching
experience in the field of auditing and accounting and his managerial skills from his participation, as a member, in
boards of directors of companies and from his tenure so far, as a member and Chairman, in committees of listed
companies, including the Company, decided unanimously and appointed him as a Senior Independent Director,
within the meaning of the relevant Special Practice of paragraphs 2.2.21 and 2.2.22 of the Corporate Governance
Code applied by the Company (Hellenic Corporate Governance Code of the H.C.G.C. of June 2021) with the
competencies provided in the above-mentioned provisions of the above Corporate Governance Code.
The current Board of Directors of the Company consists of thirteen (13) members, of which:
▪ four (4) are executive members (Vice President & 3 members),
▪ five (5) are non-executive members (Chairman and 4 Members).
▪ four (4) are independent non-executive members.
Ten (10) of the members of the Board of Directors are men and three (3) are women.
The composition of the current Board of Directors is as follows:
(1) Michael N. Stassinopoulos, Chairman, Non-Executive Member.
(2) Dimitrios Kyriakopoulos, Vice-chairman, Executive Member.
(3) Nikolaos Karabateas, Aluminium Segment General Manager, Executive Member.
(4) Panagiotis Lolos, Copper Segment General Manager, Executive Member.
(5) Konstantinos Katsaros, Executive Member.
(6) Christos-Alexis Komninos, Non-executive Member.
Annual Financial Report of 31st December 2023
47
(7) Elias Stassinopoulos, Non-Executive Member.
(8) Aikaterini-Nafsika Kantzia, Non-Executive Member.
(9) Athanasia Kleniati Papaioannou, Non-Executive Member.
(10) Vasileios Loumiotis, Senior Independent Non-Executive Member.
(11) Plutarchos Sakellaris, Independent Non-Executive Member.
(12) Ourania Ekaterinari, Independent, Non-Executive Member.
(13) Georgios Lakkotrypis, Ιndependent Non-Executive Member.
The Board of Directors meets whenever the law, the articles of association or the needs of the Company require it.
5.1.3 Suitability Policy
The current Suitability Policy of members of the Board of Directors of the Company (according to article 3 of Law
4706/2020, hereinafter “Suitability Policy”) was initially approved by the Ordinary General Meeting of its
shareholders of 24.05.2021 and was amended by the Ordinary General Meeting of its shareholders of 24.05.2023.
The Suitability Policy is an essential part of the Company's Corporate Governance System. Aims to ensure the quality
staffing, efficient operation and fulfilment of the role of the Board of Directors based on the overall strategy and
medium-term business aspirations of the Company in order to promote the corporate interest. Through its
implementation, the acquisition and retention of persons with skills, knowledge, skills, experience, crisis
independence, guarantees of morality and good reputation that ensure the exercise of good and effective
management for the benefit of the Company, shareholders and all stakeholders. The Suitability Policy, as well as
any substantial modification, is proposed to the Board of Directors of the Company by the Remuneration and
Promotion Committee of the Company, in collaboration with the Internal Audit Unit and the Legal Service of the
Company, then approved by the Board of Directors and is submitted for approval to the General Meeting of the
Company. The Company has and implements a diversity policy in order to promote an appropriate level of
differentiation in the Board of Directors and a diverse group of members. Through the accumulation of a wide range
of qualifications and skills in the selection of the members of the Board of Directors, the variety of views and
experiences is ensured in order to make the right decisions. The Eligibility Policy is included / referred to in the
diversity policy, to ensure that it has been taken into account when appointing new members of the Board.
Adequate gender representation of 25% of all members of the Board of Directors is explicitly provided, and based
on the current fifteen-member Board of Directors, the minimum number of women or men is three (3) and no
exclusion is applied due to gender, race, color, ethnic or social origin, religion or belief, property, birth, disability,
age or sexual orientation. The Suitability Policy is available on the Company's website at the following link:
https://www.elvalhalcor.com/investor-relations/corporate-governance/board-of-directors/suitability-policy-bod.
The composition of the existing Board of Directors of the Company (from its election by the Ordinary General
Meeting of the Company’s shareholders of 24.05.2023) meets the requirements and the criteria of suitability
(individual and collective) and diversity, as provided in Law 4706/2020 and the Suitability Policy, as determined by
the Remuneration and Promotion Committee of the Company at the level of candidate members, before the
election of the Board of Directors and each member to replace a missing person, as well as by the Board of Directors,
during the respective election.
Also, the Board of Directors during its meeting of 05.03.2024, following a relevant proposal of the Remuneration
and Nomination Committee of the Company, reviewed and found the fulfilment of the conditions of independence
of article 9 par. 1 and 2 of Law 4706/2020 of the existing independent non-executive members of the Board of
Directors.
Annual Financial Report of 31st December 2023
48
5.1.4 Company related parties transactions procedure
The Company has established and implements a Procedure for the transaction with parties related to the Company,
which is part of the Company’s Rules of Operation, and aims at the Company’s compliance with the obligations
arising from articles 99 to 101 of Law 4548/2018, regarding the transactions with related parties, in accordance
with point f) of paragraph 3 of article 14 of Law 4706/2020. By implementing this procedure, it is ensured that the
Board of Directors has sufficient information when making its relevant decisions regarding transactions between
related parties.
5.1.5 Participation of members of the Board of Directors in its meetings
In 2023, a total of thirty-three (33) meetings of the Board of Directors were held. The frequency of participation of
the members of the Board of Directors in its meetings during 2023 is as follows:
DIRECTOR
DIRECTOR’S TERM OF
OFFICE
NR. OF
MEETINGS
DURING
DIRECTORSHIP
TOTAL
PRESENCES
PRESENCE
PERCENTAGE
FROM
UNTIL
CHAIRMAN – NON-EXECUTIVE MEMBER
Stassinopoulos Michael
1/1/2023
31/12/2023
33
33
100,00%
VICE-CHAIRMAN – EXECUTIVE MEMBER
Kyriakopoulos Dimitrios
1/1/2023
31/12/2023
33
33
100,00%
ΕΚΤΕΛΕΣΤΙΚΑ ΜΕΛΗ
Varouchas Lambros
1/1/2023
13/1/2023
1
0
0,00%
Nikolaos Karabateas
20/1/2023
31/12/2023
32
32
100,00%
Katsaros Konstantinos
1/1/2023
31/12/2023
33
33
100,00%
Lolos Panagiotis
1/1/2023
31/12/2023
33
33
100,00%
NON-EXECUTIVE MEMBERS
Stassinopoulos Elias
1/1/2023
31/12/2023
33
28
84,85%
Komninos Christos - Elias
1/1/2023
31/12/2023
33
32
96,97%
Aikaterini-Nafsika Kantzia
1/1/2023
31/12/2023
33
33
100,00%
Kleniati Papaioannou Athanasia
1/1/2023
31/12/2023
33
33
100,00%
INDEPENDENT NON-EXECUTIVE MEMBERS
Loumiotis Vasileios
1/1/2023
31/12/2023
33
33
100,00%
Sofis Thomas George
1/1/2023
24/5/2023
14
13
92,86%
Ekaterinari Ourania
1/1/2023
31/12/2023
33
33
100,00%
Sakellaris Plutarchos
1/1/2023
31/12/2023
33
33
100,00%
Lakkotrypis Georgios
1/1/2023
31/12/2023
33
33
100,00%
5.1.6 CVs of the members of the Board of Directors
The CVs of the members of the Board of Directors of the Company (from which it appears that the composition of
the Board of Directors reflects the knowledge, skills and experience required to exercise its responsibilities, in
accordance with the Suitability Policy and the professional model and Company strategy) are set out below.
Annual Financial Report of 31st December 2023
49
5.2 Audit Committee
5.2.1 Description of the composition, operation, work, responsibilities and of the issues discussed during the Audit
Committee meetings
The Audit Committee, according to its current Rules of Operation, which consists of at least three (3) members, can
be a) a committee of the Board of Directors, consisting of non-executive members, or b) an independent
committee, which consists of non-executive members of the Board of Directors and third parties, or c) an
independent committee, which consists only of third parties. Third party means any person who is not a member
of the Board of Directors. The type of the Audit Committee, the term of office, the number and the qualities of its
members are decided by the general meeting of the Company’s shareholders. The term of office of the members
of the Audit Committee is the same as the term of office of the members of the Board of Directors. The re-election
of the members of the Audit Committee is possible. The members of the Audit Committee are appointed by the
Board of Directors, when it is a committee, or by the general meeting of shareholders of the Company, when it is
an independent committee, and are in their majority independent of the Company, in accordance with applicable
provisions (article 9 of Law 4706/2020). The Chairman of the Audit Committee is appointed by its members, at its
meeting, to form it in a body, and is independent of the Company.
The members of the Audit Committee as a whole have sufficient knowledge in the field in which the Company
operates. At least one (1) member of the Audit Committee, who is independent of the Company, with sufficient
knowledge and experience in auditing or accounting, is required to attend the meetings of the Audit Committee
regarding the approval of the annual corporate and consolidated financial statements.
Following the decision of the Ordinary General Meeting of the Company’s shareholders dated 24.05.2023, which
decided the appointment of the Company’s Audit Committee, as a committee of the Board of Directors, consisting
of non-executive members of the Company’s Board of Directors, in accordance with article 44 of Law 4449/2017,
as in force, all of which independent within the meaning of article 9 par. 1 and 2 of Law 4706/2020, the Board of
Directors of the Company, during its meeting of 24.05.2023, ascertaining the fulfilment of all the criteria and
conditions of par. 1 of article 44 of Law 4449/2017, as in force after its amendment by article 74 of Law 4706/2020,
appointed as members of the Company’s Audit Committee Mr. Vassilios Loumiotis, independent non-executive
member of the Board of Directors, Mr. Plutarchos Sakellaris, independent non-executive member of the Board of
Directors, and Mrs. Ourania Aikaterinari, independent non-executive member of the Board of Directors. All
members of the Audit Committee have proven sufficient knowledge and experience of the sector in which the
Company operates.
The Audit Committee during its meeting of 24.05.2023 was formed in a body and appointed its Chairman, and in
specific, in accordance with article 44 par. 1 (e) of law 4449/2017, as in force, after having first ascertained that Mr.
Vassilios Loumiotis of Ioannis is independent of the Company (examined entity), within the meaning of article 9
par. 1 and 2 of law 4706/2020, as in force, appointed, as Chairman of the Company’s Audit Committee, Mr. Vasileios
Loumiotis of Ioannis (Senior Independent Non-Executive Member of the Board of Directors of the Company) and
the Audit Committee of the Company was formed into body as follows:
1) Vasileios Loumiotis of Ioannis, Chairman of the Audit Committee, Senior Independent Non-Executive Member of
the Board of Directors of the Company.
2) Plutarchos Sakellaris of Konstantinos, Member of the Audit Committee, Independent Non-Executive Member of
the Board of Directors of the Company.
Annual Financial Report of 31st December 2023
50
3) Ourania Aikaterinari of Nikolaos – Parmenion, Member of the Audit Committee, Independent Non-Executive
Member of the Board of Directors of the Company.
The main mission of the Audit Committee is to assist the Board of Directors in the execution of its duties, supervising
the financial reporting procedures, the completeness and correctness of the annual corporate and consolidated
financial statements, the policies and the internal control system of the Company (Article 2 of Law 4706/2020) and
evaluating the adequacy, efficiency and effectiveness of the internal control systems (article 44 par. 3 par. c L.4449
/ 2017), the audit function of the internal audit work and the external auditors, in order to ensure the independence
of the quality, formal qualifications and performance of the auditors.
The Audit Committee receives from the Internal Audit Unit the following reports for the audit activity:
− Ad-hoc reports.
− Ordinary audit reports (submitted quarterly).
− Memos (submitted quarterly).
− Corporate Governance Reports.
− Inventory reports.
− Ressources Efficiency reports.
− Audit Opinion.
The Audit Committee examines and ensures the independence of the Company’s external auditors and takes
consideration of their findings and the Audit Reports on the annual or interim financial statements of the Company.
At the same time, it recommends corrective actions and procedures so as to deal with any findings or failures in
areas of financial reports or other important functions of the Company.
The Audit Committee meets at the Company’s headquarters or where the Articles of Association of the Company
provide, in accordance with article 90 of Law 4548/2018, as in force. The Audit Committee meets regularly and,
however, at least as many times in each year, to consider and take decisions on all matters within its competence.
5.2.2 Number of meetings of the Audit Committee and frequency of participation of each member in the meetings
The Audit Committee met nineteen (19) times in 2023 with a full quorum (all its members participated in all the
meetings).
5.2.3 Work of the Audit Committee
Regarding the activities of the Audit Committee, please refer to the annual Report of the Acts of the Audit
Committee to the Ordinary General Meeting of the Company’s shareholders (article 44 par. 1 per. i. of Law
4449/2017) to be convened in 2024, as approved at the meeting of the Audit Committee of 05.03.2024 and included
herein below, which includes all issues on the which the Audit Committee consulted and resolved during the
financial year 2023.
5.3 Remuneration and Nomination Committee
5.3.1 Description of the composition, operation, work, competences
According to its current Rules of Operation, the Remuneration and Nomination Committee (hereinafter “RNC”)
exercises, as a single committee, the responsibilities of both the remuneration committee (article 11 of law
4706/2020) and the candidacy committee (of article 12 of law 4706/2020), which have been assigned to the RNC,
according to par. 2 of article 10 of law 4706/2020, based on a relevant decision of the Board of Directors of the
Annual Financial Report of 31st December 2023
51
Company. The RNC has three members and consists entirely of non-executive members of the Board of Directors
of the Company, at least two (2) of which must be independent. The term of office of the RNC is equal to the term
of office of the Board of Directors.
With its decision of 24.05.2023, the Board of Directors of the Company appointed Mr. Plutarchos Sakellaris,
independent non-executive member of the Board of Directors, Mrs. Ourania Aikaterinari, independent non-
executive member of the Board of Directors, and Mrs. Ekaterini – Nafsika Kantzia, non-executive member of the
Board of Directors, as members of the RNC. During its meeting of 24.05.2023, the RNC was formed into a body and
appointed Mr. Plutarchos Sakellaris, independent non-executive member of the Board of Directors, as its Chairman.
The members of the RNC have in their entirety sufficient knowledge in the field in which the Company operates.
The main responsibilities of the RNC are the following:
▪ In terms of remunerations:
− Formulates proposals to the Board of Directors regarding the remuneration policy of the Company (article
110 of law 4545/2018, hereinafter "Remuneration Policy") which is submitted for approval to the General
Meeting (according to article 110 par. 2 law 4548/2018), and the remuneration of the persons that fall
within the scope of the Remuneration Policy, according to article 110 of law 4548/2018, the remuneration
of the Company’s executives and the remuneration of the Head of the Internal Audit Unit, according to the
existing provisions (article 11 par. b L.4706/2020).
− Evaluates, on a periodic basis, the need to update the company’s Remuneration Policy taking into account
the legislative developments, best practices, as well as the relevant findings / reports / reports of the
Internal Audit Unit.
− Reviews, on a periodic basis, the level of benefits of the Company based on the best practices and the levels
of remuneration of the respective branch, proposing, if necessary, the necessary changes in the level of
benefits and the Remuneration Policy.
− Examines the information included in the final draft of the annual remuneration report of the Company
(article 112 of law 4548/2018, hereinafter “Remuneration Report”) and issues an opinion to the Board of
Directors on it, before submitting the Remuneration Report to the General Meeting (according to article
112 of law 4548/2018).
▪ Regarding the nomination of candidates:
− Monitors the effectiveness and reviews the design and implementation of the Company Suitability Policy
and conducts its periodic evaluation, at regular intervals, or when significant events or changes take place.
− Locates and proposes to the Board of Directors persons suitable for the acquisition of the status of member
of the Board of Directors, the Company Audit Committee (article 44 of law 4449/2017) and any other
committees of the Board of Directors, taking into account the factors and criteria of individual and collective
suitability determined by the Company, in accordance with the Suitability Policy it adopts and based on the
relevant procedure provided in its Rules of Operation.
− Evaluates the performance of the members of the Board of Directors and the committees of the Company,
evaluating the skills, knowledge and experience of the members of the Board of Directors and the
committees of the Company and informs the Board of Directors accordingly.
− Evaluates the structure, composition and size of the Board of Directors of the Company and submits
proposals for appropriate changes.
Annual Financial Report of 31st December 2023
52
− Monitors on an ongoing basis the suitability of the members of the Board of Directors, in particular to
identify, in the light of any relevant new event, cases in which it is deemed necessary to re-evaluate their
suitability, in accordance with the relevant definitions of the Suitability Policy.
− Examines the independence of the independent non-executive members of the Board of Directors,
periodically, at least once a year, as well as in case of election of a new Board of Directors or election of a
member to replace a deceased independent member, and exceptionally, when required and submits
proposals to the Board as to the appropriate actions and/or changes in its composition.
− Examines the selection policy of the senior executives (key management personnel, within the meaning of
article 2 per. 13 of Law 4706/2020) of the Company.
The RNC meets at the Company’s registered office or where it provides for its Articles of Association, as in force, in
accordance with article 90 of Law 4548/2018, as in force, at regular intervals and extraordinarily, whenever deemed
necessary by the President or any of its members.
5.3.2 Number of meetings of the RNC and frequency of participation of each member in the meetings – activities
The RNC met ten (10) times in 2023 with a full quorum (all its members participated in all the meetings). The main
issues addressed by the RNC at its meetings are as follows:
− Establishment of the RNC in a body and election of its Chairman.
− Examination of the periodically submitted statements of independence of the independent members of the
Board of Directors.
− Determination of remuneration and benefits in accordance with the approved Remuneration Policy of the
Company. Determination of remuneration of the members of the Board of Directors of the Company for the
year 2022 – advance payment of remuneration of the members of the Board of Directors of the Company for
the financial year 2023 and the period until the following Ordinary General Meeting (article 109 par. 4 Law
4548/2018 as in force).
− Submission of opinion – suggestion to the Board of Directors of the Company on the draft Remuneration Report
of the corporate year 2023 regarding its approval and submission by the Board of Directors to the Ordinary
General Meeting of Shareholders for discussion and approval by advisory vote, according to articles 117 par. 1
par. c and 112 par. 3 of Law 4548/2018.
− Evaluation of the members of the Board of Directors and the Audit Committee of the Company for the year
2023.
− Recommendation to the Board of Directors of the Company for the election (re-election or not) of members of
the Board of Directors from the next Ordinary General Meeting of the Company’s shareholders.
− Recommendation to the Board of Directors of the Company regarding the type of Audit Committee, the term of
office, the number and the qualities of its members, according to article 44 of Law 4449/2017, as in force.
− Recommendation to the Board of Directors of the Company for the appointment (re-election or not) of members
of the Audit Committee, the Remuneration and Nomination Committee of Candidates and any other committees
of the Board of Directors, from the members of the Board of Directors proposed for election (and if elected) )
from the next Ordinary General Meeting of the Company’s shareholders.
− Recommendation to the Board of Directors of the Company for the election of a new executive member of the
Board of Directors to replace a deceased executive member, or the continuation of the management and
Annual Financial Report of 31st December 2023
53
representation of the Company by the remaining existing members of the Board of Directors without replacing
the deceased.
− Defining and approving agenda items and schedule of meetings of the RNC during the remainder of its term.
− Evaluation of a candidate for the position of Head of the Company’s Regulatory Compliance Unit and submission
of a relevant proposal to the Audit Committee and a recommendation regarding his remuneration to the
Company’s Board of Directors.
6. Sustainable Development Policy (ESG)
The Company has established and implements a Sustainable Development Policy, which is part of the Company’s
Rules of Operation, in accordance with point l) of paragraph 3 of article 14 of Law 4706/2020. Aiming to promote
the Company’s corporate interest and competitiveness, the main areas - pillars of the Company’s sustainable
development in ESG matters consist of caring for the health and safety of employees, respecting and protecting the
environment, as well as being responsible for society and the harmonious coexistence with the local communities
in which the Company operates. The Company considers that the above axes are a necessary condition for its long-
term development and are in line with its corporate values, such as, in particular, responsibility, integrity,
transparency, efficiency and innovation. In the context of the above Policy, the essential non-financial issues
concerning the long-term sustainability of the Company are in particular the relations of the Company with its
participants / stakeholders (shareholders, employees, customers and suppliers), corporate governance, human
resources and health and safety at work, the environment (environmental management based on the principle of
prevention, the minimization of the Company’s environmental footprint, the principles of the circular economy, the
promotion of recycling and the optimal management of natural resources) and the support of the local community.
For the disclosure of non-financial information the Company takes into account the following standards:
▪ AA1000 Accountability Principles (2018).
▪ Global Reporting Initiative (GRI) Sustainability Reporting Guidelines (GRI Standards – Core option for the
financial year 2023).
▪ Greek Sustainability Code.
7. CVs of Members of the Board of Directors, Key Executives and Corporate Secretary of the Company
7.1 Members of the Board of Directors
(1) Michael N. Stassinopoulos, Chairman, Non-Executive Member
Mr. Michael Stassinopoulos was born in Athens in 1967. He graduated from Athens College (1985) and holds a
Bachelor’s Degree in Management Sciences from London School of Economics (1989). He also holds a postgraduate
diploma (MSc) in Shipping, Trade and Finance from City University Business School UK. He was a member of the
Board of Directors of Elval SA Aluminium Industry for 11 years.
He also holds the following positions:
− Executive Member of the Board of Directors of Viohalco S.A. (since 2013).
− Member of the Board of Directors of EL.Κ.Ε.ΜΕ. Hellenic Metal Research Center S.A.
− Member of the Board of Directors of the non-profit company HELLENIC PRODUCTION – INDUSTRY
ROUNDTABLE FOR GROWTH.
(2) Dimitrios Kyriakopoulos, Vice-chairman, Executive Member
Mr. Dimitrios Kyriakopoulos studied Business Administration at AUEB and holds a Diploma in Business Studies from
the City of London College and Marketing from the British Institute of Marketing.
Annual Financial Report of 31st December 2023
54
He works for Viohalco since 2006, and since holds various managerial positions, among them financial manager of
Viohalco and vice-chairman of the non-ferrous metals. Prior to Viohalco, he had a long standing carreer in
Pfizer/Warner/Lambert holding the position of Regional Director of Europe / Middle East / Africa of ADAMS
(Confectionery Division of Pfizer), chairman of the consumer products of Warner Lambert for Italy/ France/
Germany, and President and CEo of Warner Lambert in Greece. He was also appointed Deputy Managing Director
of Duty Free SA.
He also holds the following positions:
− Vice-chairman (executive member) of the Board of Directors of Cenergy Holdings S.A.
− Chairman of the Board of Directors of ANOXAL S.A.
− Member of the Board of Directors of TEKA SYSTEMS S.A.
− Chairman of the Board of Directors of TECHOR S.A.
− Chairman of the Board of Directors of ELVIOK S.A.
− Member of the Board of Directors of SYMETAL ALUMINIUM FOIL INDUSTRY S.A.
(3) Nikolaos Karabateas, Executive Member, Aluminium Segment General Manager
Mr. Nikolaos Karabateas holds a degree in Mechanical Engineering from the National Technical University of Athens
(1988 – 1993) and a PhD in Mechanical Engineering from Imperial College London (1993 – 1997). He has been
working in the Aluminium Rolling Division of the Company (formerly ELVAL) since 1999 in a series of positions of
responsibility with increasing demands. In 2012, he assumed the position of Commercial Director, having in his
responsibilities the strategy of sales, marketing and development of international markets, contributing to the
formation of the conditions for the successive investment programs of the Company. In 2021 he assumed the
position of Deputy General Manager of the Aluminium Branch and in January 2023 the position of General Manager
of the Aluminium Branch of the Company.
(4) Panos Lolos, Executive Member, Copper Segment General Manager
Mr. Panos Lolos was born in 1972. He holds a B.A. in Political Science & International Studies from Panteion
University, an M.A. in International Economics from North Carolina State University and an MBA from the University
of Piraeus.
From 2000 until 2001 he worked in AV VASSILOPOULOS S.A., a subsidiary of the Belgian food retailer DELHAIZE.
Since 2001, he joined the heavy industry, having an experience in the domestic and exports sales of former
“HALCOR S.A.” and now “ELVALHALCOR HELLENIC COPPER AND ALUMINIUM INDUSTRY S.A.” (Copper Segment /
Copper & Alloys Extrusion Division – “HALCOR”). He holds the position of the General Manager of the Copper
Segment of ELVALHALCOR S.A. since 2021, whereas he also holds the position of the General Manager of the Copper
& Alloys Extrusion Division of ELVALHALCOR S.A. since 2020.
He is a registered member of the ECONOMIC CHAMBER OF GREECE.
He has a strong interest in technology, competition, pricing techniques, regulation, market analysis and marketing
strategies in the heavy industry.
Apart from industry-related topics, his pubic presence and his published articles in Greek and English are related to
the economy and the regulation policies.
He also holds the following positions:
− Member of the Board of Directors of SOFIA MED A.D.
− Chairman of the ASSOCIATION OF INDUSTRIES OF CENTRAL GREECE.
− Member of the Board of Directors of ΕANEP-Ο.Α. S.A.
− Member of the Board of Directors of ΕDEP-Ο.Α. S.A.
Annual Financial Report of 31st December 2023
55
− Member of the Board of Directors of the HELLENIC FEDERATION OF ENTERPRISES (in which he holds the
position of the Chairman of the International Trade Committee).
− Member of the Board of Directors of the non-profit company HELLENIC PRODUCTION – INDUSTRY
ROUNDTABLE FOR GROWTH.
(5) Konstantinos Katsaros, Executive Member
Mr. Katsaros is a Mechanical and Electrical Engineer of the National Technical University of Athens. He is an
Aeronautical Engineer of the Ecole Nationale Superieure d’Aeronautique (Paris) and a Ph.D. Engineer of the
University of Paris. He has been working in the Aluminium Rolling Division of ELVALHALCOR (former Elval) since
1974 and he is mainly engaged in the international development of the division. Previously he worked in Pechiney
in France for 6 years.
He also holds the following positions:
− Vice-chairman of the Board of Directors of BRIDGNORTH ALUMINIUM LTD.
− Chairman of the Board of Directors of EL.K.E.ME. Hellenic Metal Research Centre S.A.
− Member of the Board of Directors of VIOMAL S.A.
− Member of the Board of Directors of METAL AGENCIES LTD.
− Member of the Board of Directors of GENECOS S.A.
− Chairman of the Board of Directors of ALURAME S.r.l.
− Member of the Board of Directors of DIA.VI.PE.THI.V. S.A.
− Member of the Board of Directors of BASE METAL TICARET VE SANAYI ANONIM SIRKETI.
− Member of the Board of Directors of HELLENIC RECOVERY RECYCLING CORPORATION S.A. (HERRCO).
− Vice-chairman of the Board of Directors of Aluminium Association of Greece.
− Member of the Executive Committee of the European Aluminium (former European Union of Aluminium).
(6) Christos-Alexis Komninos, Non-executive Member
Mr. Christos Komninos is a Graduate (MSc) of the Department of Chemical Engineering of the Technical University
of Istanbul (1971). During his career he has worked in many firms, like COCA-COLA 3E (1972-1987), where he
assumed a leading position, as CEO of Coca-Cola Bottlers Ireland (a subsidiary of COCA COLA 3E) in 1987-1990 and
later as CEO of the above said COCA COLA 3E until 2000, as Chairman and CEO, of PAPASTRATOS SA (2000-2004),
as Executive Vice Chairman of SHELMAN SA, ELMAR S.A., (2005-2010) and as Chairman of the BoD of Hellenic
Petroleum SA (2011-2014).
In addition to the above, Mr. Komninos has been Vice Chairman of the BoD and member of the Executive
Committee of the Hellenic Federation of Enterprises (SEV) and he has been a member of the BoD of FINANSBANK
(Turkey), of the BoD of ANADOLU EFES (Turkey) and of the BoD of HALCOR SA. (current ELVALHALCOR SA).
During his long career, Mr. Komninos has taken on important administrative duties and has gained experience in
managing companies with international activities. He is fluent in English, French, Italian and Turkish.
He also holds the following positions:
− Non-executive Member of the Board of Directors of THRACE PLASTICS HOLDING AND COMMERCIAL SOCIETE
ANONYME.
− Member of the Board of Directors of BASE METAL TICARET VE SANAYI ANONIM SIRKETI.
(7) Elias Stassinopoulos, Non-executive member
Mr. Elias Stasinopoulos holds a Ph.D. from the Technical University of Clausthal-Zellerfeld in Germany and has been
working in the LHoist Group since 1994 in leading positions of responsibility. He speaks in addition to Greek, English,
French, German. He is member of the Board of Directors of STOMANA INDUSTRY S.A..
Annual Financial Report of 31st December 2023
56
(8) Aikaterini-Nafsika Kantzia, Non-executive member
Mrs. Aikaterini-Nafsika Kantzia holds a Degree in Law from National and Kapodistrian University of Athens; Upper
Second-Class Honours. As far as her professional experience, she practiced law from 1974-1993 at The Hellenic
Chemical Products and Fertilizers Company S.A., Chemical Industries of the BODOSSAKI Group, and at the Greek
Wine and Spirits Company S.A. and Larco S.A., belonging to the same group of companies. Within 1993-1996 she
only worked for the Greek Wine and Spirits Company S.A. and Larco S.A., due to the fact that The Hellenic Chemical
Products and Fertilizers Company S.A., of the BODOSSAKI Group was put into liquidation. In 1988, she began
collaborating with VIOHALCO group of companies and offered her services as a freelancer to various subsidiary
companies namely SIDENOR S.A., HELLENIC CABLES S.A., METEM S.A., VET S.A., VIOTIA CABLES S.A., ALUMINIUM
OF ATHENS S.A., ELLINIKI XALIVDEMPORIKI S.A., ERLIKON S.A., VECTOR S.A., DEPAL S.A., SIDEP S.A, VIEM S.A.,
TELECABLES S.A., and STEELMETAL S.A. From 1995 until today she stipulates services as an in - house attorney to
the companies SIDENOR S.A. and STEELMET S.A. Furthermore, Mrs. Kantzia has language diplomas in both German
(Grosses Sprachdiplom) and French (Sorbonne II). She attains intermediate knowledge of the English language.
She also holds the following positions:
− Member of the Remuneration and Nomination Committee of ELVALHALCOR S.A.
− Member of the Board of Directors of THE S.A.N.D. COLLECTION-VILLAS AND LUXURY APARTMENTS S.A.
(9) Athanasia Kleniati Papaionnou, Non-executive member
Ms. Athanasia Kleniati Papaioannou is a graduate of the School of Economics of the University of the Rhine
“Frederick – William” in Bonn. The subject of her thesis was the comparison of regional productivity by industry in
Greece and the conducting of economic policy conclusions. As a professional, she has participated in companies
active in the retail and wholesale trade. She was a research associate at the University of Piraeus (Department of
Economics) between 1980 and 1998 and in this context she participated in the University's research programs and
taught macroeconomic and microeconomic theory courses. Moreover, she has been involved for two years in
conducting and compiling studies in various industries under her role as a research associate of the ICAP Group.
She has knowledge of German and English.
(10) Vasileios Loumiotis, Senior Independent Non-executive member
Mr. Vasileios Loumiotis is a graduate of the Department of Business Administration and Management (1973) of the
Athens University of Business and Economics (formerly ASOEE) and holds a Master’s Degree in Business
Administration (M.B.A.) from Roosevelt University in Chicago (1979).
He is an auditor since 1980 and especially as a member of the Institute of Chartered Accountants of Greece (ΣΟΛ)
from 1980 until 1992 and the Institute of Certified Public Accountants of Greece (ΣΟΕΛ) since 1993 until today.
From 1993, under his capacity of the Certified Public Accountant, Mr. Loumiotis participates in “Associated Certified
Public Accountants S.A.” (“SOL S.A.”) a partner. During his career as a Certified Public Accountant, he was elected,
as auditor, by a significant number of companies to perform audits of annual financial statements. During his tenure
as an auditor, he completed projects, as special audits for the initial public offering of companies in the Athens
Exchange, corporate valuations, application of International Financial Reporting Standards, for a substantial
number of companies. In addition, he served as a member of the technical desk of “SOL S.A.” from 2006 until March
of 2009. In the past he has audited enterprises of the raw materials – metallurgy sector, indicatively, TITAN S.A.,
EXALCO S.A., etc.
In regards to his teaching experience, he is serves as a professor for the Training Institute of Certified Public
Accountants of Greece (Ι.Ε.Σ.Ο.Ε.Λ.) since 1997, a professor for National and Kapodistrian University of Athens, for
the post-graduate course “Master in Applied Auditing”, from 2006 until today and a professor for the University of
Macedonia for the post-graduate course “Master in Applied Accounting and Auditing” since 2011 to date. In
Annual Financial Report of 31st December 2023
57
addition to the above, he serves as a professor of “SOL S.A.” for the subjects of International Financial Reporting
Standards, International Auditing Standards and Consolidated Financial Statements.
He also holds the following positions:
− Senior Independent Non-executive Member of the Board of Directors, Chairman of the Audit Committee and
Member of the Remuneration and Nomination Committee of NOVAL PROPERTY S.A..
− Independent Non-executive Member of the Board of Directors and Chairman of the Audit Committee of
AYTOMATIC ANALYSERS - DIAGNOSTIC REAGENTS AND PRIVATE DIAGNOSTIC LABORATORIES MEDICON
HELLAS S.A.
− Independent non-executive member of the Board of Directors and a member and Chairman of the Audit
Committee and the Remuneration and Nomination Committee of the societe anonyme under the name
“ALPHA ASTIKA AKINITA SA”.
− Sole partner and administrator of the private company under the name “LOUMIOTIS EDUCATIONAL –
CONSULTING SINGLE MEMBER PRIVATE COMPANY”.
He has also served as Member of the Remuneration and Nomination Committee of ELVALHALCOR SA. in the past.
(11) Plutarchos Sakellaris, Independent Non-executive member
Mr. Ploutarchos Sakellaris is Professor of Economics and Finance at Athens University of Economics and Business,
focusing his research and teaching on macroeconomics, finance and banking. He holds a Ph.D. in economics and a
M.A., a M. Phil. from Yale University, as well as a B.A. degree in economics and computer science from Brandeis
University.
Mr. Sakellaris has served as Vice-President and Member of the Management Committee of the European
Investment Bank (2008-2012), where he was responsible for risk management and financing in the energy sector.
During the period 2004-2008, he was Chairman of the Council of Economic Advisers at the Ministry of Finance,
Deputy to the Minister of Finance in the European Union Councils of Eurogroup and ECOFIN, and a member of the
EU Economic and Financial Committee (EFC) and the Eurozone Working Group (EWG). He has served as member of
the Board of Directors and the Audit Committee of the TITAN Group (2013-2019), a member of the Board of
Directors of CreditM (2013-2018), a member of the Board of Directors, the Audit Committee and the Corporate
Governance and Nominations Committee of the National Bank of Greece (2004-2008), member of the Board of
Directors of the Public Debt Management Agency (2004-2008), as well as Deputy Governor for Greece at the World
Bank (2004-2008). His professional career includes the positions of economist at the US Federal Reserve Board
(1998-2000), visiting expert at the European Central Bank (2001-2003) and professor at the University of Maryland
(1991-2004).
He also holds the following positions:
− Chairman of the Remuneration and Nomination Committee and Member of the Audit Committee of
ELVALHALCOR S.A.
− Member of the Board of Directors and Chairman of the Audit Committee of CEPAL HELLAS FINANCIAL SERVICES
SINGLE MEMBER S.A. – SERVICING OF RECEIVABLES FROM LOANS AND CREDITS.
− Member of the Board of Directors of the Foundation for Economic & Industrial Research (IOBE).
(12) Ourania Ekaterinari, Independent Non-executive member
Rania Ekaterinari has over 25 years of professional experience. She is an independent non-executive member of
the board of ELVALHALCOR S.A.
Rania was CEO and executive member of the Board of the Hellenic Corporation of Assets and Participations S.A.,
the sovereign asset management fund. Before that, Rania was a Partner in Ernst & Young (EY) in Financial Advisory
Annual Financial Report of 31st December 2023
58
Services and EY energy sector leader for Southeast Europe. During 2010-2015, she served as Deputy CEO and
executive member of the Board of Public Power Corporation S.A.
During the period 2000-2010, she worked as senior banker in London and in Greece in both corporate and
investment banking in large financial institutions like BNP Paribas, Deutsche Bank and Eurobank. She began her
career in London working for Texaco in business development in the oil and gas industry in the Caspian region.
Rania is a member of the advisory board of Dianeosis, member of the Leadership Committee of the Greek American
Chamber of Commerce and member of the US based WomenCorporateDirectors. Previously she was member of
the Hellenic Corporate Governance Council (HCGC) and member of the Council of Competitiveness in Greece.
She holds a degree in Electrical & Computer Engineering from Aristotle University of Thessaloniki and an MBA from
City University Business School in London.
She also holds the following positions:
− Member of the Audit Committee and Member of the Remuneration and Nomination Committee of
ELVALHALCOR SA.
− Independent Non-executive Member of the Board of Directors and Chairman of the Remuneration and
Nomination Committee of MOTOR OIL (HELLAS) CORINTH REFINERIES S.A.
− Independent Non-executive Member of the Board of Directors and Chairman of the Remuneration and
Nomination Committee and Member of the Audit Committee of CORAL Α.Ε. OIL AND CHEMICALS COMPANY.
− Non-executive Member of the Board of Directors of HELLENIC ELECTRICITY DISTRIBUTION NETWORK
OPERATOR S.A.
− Administrator of EKATI CONSULTING SINGLE MEMBER LTD.
(13) Georgios Lakkotrypis, Independent Non-executive member
Mr. Georgios Lakkotrypis holds a BSc. degree in Computer Science and Mathematics from the University of Keele
in the United Kingdom (1988-1991) and an MBA in Business Administration, from the University of Colorado in the
United States (1993-1995). Between 1991 and 1993 he served as IT Systems Administrator for J & P, one of the top
construction companies in the world, where he overlooked the company’s IT systems in Benghazi, Libya.
Subsequently, he became part of the IBM team in Nicosia, Cyprus (1996-2002) where he worked in sales, and
customer and partner relationships.
He then worked for eleven years at Microsoft Corporation, as Cyprus & Malta Business Development Manager
(2002-2004), Cyprus Country Manager (2004-2008), Cyprus & Malta Regional Country Manager (2008-2011) and
CEE Multi-Country Public Sector Director (2011-2013). During this time, he also served as a non-executive member
of the Board of Directors of the then newly established University of Nicosia Research Foundation (2008-2013), the
first Board of Directors of the Cyprus Investment Promotion Agency (2007-2011) and the first Board of Directors of
the Natural Gas Public Company (2009-2013).
In March 2013, Mr. Lakkotrypis was appointed as Minister of Energy, Commerce, Industry and Tourism of the
Republic of Cyprus, a position in which he was reappointed in March 2018. He concluded his term in office in July
2020.
Currently, through his private firm, LMA Advisory Ltd, Mr. Lakkotrypis is providing consultancy services in areas
such as digital transformation and energy transition.
He also serves as a Non-executive Member of the Board of Directors of Ronin Europe Ltd.
7.2 Key Executives other than Members of the Board of Directors
(1) Spyridon Kokkolis, Group CFO
Mr. Kokkolis is an economist, graduate of Athens University of Economics. Mr. Kokkolis has worked for the internal
auditing department of Viohalco Group since 1993. His professional career includes the positions of Head of
Annual Financial Report of 31st December 2023
59
Financial Planning and reporting (2001-2003) and Group CFO (2004-2017) of HALCOR S.A., where he was
responsible for M&A activities and projects, including the merger with FITCO in 2006 and subsequent spin-off in
2010, the acquisition of 50% of NEDZINK in 2017 and the merger with ELVAL within the same year. He currently
holds the position of Group CFO of ELVALHALCOR S.A. since the merger with ELVAL and his responsibilities include,
among others, the supervision of the Supply Chain Department of the Copper Tubes Division, the Preparation for
Bond Issuance and Risk and Inventory management of metals exposure. He also served as BoD member of
ELVALHALCOR S.A. during the period 2017-2021.
(2) Stavros Voloudakis, Aluminum Segment Subsidiaries Coordinator
Mr. Stavros Voloudakis is a graduate Production & Management Engineer from the Technical University of Crete
(1989), holder of a postgraduate degree M.Sc. in Artificial Intelligence (AI) from UGA University USA (1992) as well
as postgraduate programs for senior executives from IMD (2007). Between 1996-2001 he was the coordinator of
central procurement agreements for Intracom Telecom SA. From 1994-2004 he was a professor (Part Time) at the
American College of Greece (Deree College) while from 2001 he took over the General Management of TOP
ELECTRONIC COMPONENTS SA. Since September 2003 he has been a member of the VIOHALCO Group and has
been the Director of Central Procurement of the Group. Then, from 2015 and for the next 16 years, he was the
Deputy General Manager, initially of ELVAL SA. and then ELVALHALCOR SA while at the same time from 2015 until
May 2021 he was an Executive Member of the Board of Directors of these companies. Since the beginning of 2021,
he has taken over as Coordination Director of the Aluminum Subsidiaries of ELVALHALCOR as well as General
Manager of the Subsidiary ANOXAL SA. At the same time, Mr. Voloudakis is the Executive Chairman of the subsidiary
VIOMAL SA as well as the Executive Board Member of the subsidiaries SYMETAL SA, VEPAL SA, ANOXAL SA, ELVAL
COLOR SA and ELVIOK SA.
7.3 Corporate Secretary
Panagiota Gouta, Corporate Secretary
Ms. Panagiota Gouta is an attorney-at-law and holds a degree in Law from the National and Kapodistrian University
of Athens. With regard to her extensive professional experience, in 1991 she took up the position of a lawyer at
VIOHALCO Group and since then she has been offering her legal services, as a freelancer, to various subsidiaries of
the same group. In addition, Ms. Gouta holds language diplomas (proficiency and teaching license) in Italian, French
and Spanish, while also having sufficient knowledge of English.
8. Number of shares of the Company held by members of the Board of Directors and Key Executives as of the
date hereof
(Article 18 par. 3 Ν. 4706/2020 and protocol nr. 425/21.02.2022 letter of the Hellenic Capital Market
Commission to the listed companies)
On the date hereof, the number of shares held by each member of the Board of Directors and each key executive
officer of the Company is as follows:
FULL NAME
CAPACITY
NR. OF SHARES
Michael N. Stassinopoulos
Chairman, Non-executive Director
1,294,771
Spyridon Kokkolis
Group CFO
75,000
Stavros Voloudakis
Aluminum Segment Subsidiaries Coordinator
15,000
Annual Financial Report of 31st December 2023
60
Vice-Chairman of the
BoD
Aluminium Segment
General Manager & BoD
Member
Copper Segment General
Manager & BoD Member
Group Chief Financial
Officer
DIMITRIOS
KYRIAKOPOULOS
NIKOLAOS KARABATEAS
PANAGIOTIS LOLOS
SPYRIDON KOKKOLIS
Annual Financial Report of 31st December 2023
61
AUDIT COMMITTEE OF ELVALHALCOR S.A.
Vasileios Loumiots, President
Ploutarchos Sakellaris, Member
Ourania Ekaterinari, Member
Athens, March 5
th
, 2024
To: The Shareholders of the Ordinary General Meeting of the company ELVALHALCOR S.A. of 2024
Activity Report of the Audit Committee on the audited financial year 2023.
Dear Shareholders,
In our capacity as Members of the Audit Committee of the Company under the name "ELVALHALCOR HELLENIC
COPPER AND ALUMINUM INDUSTRY SOCIETE ANONYME" (hereinafter referred to as the “Company”), and in
accordance with article 44 of L. 4449/2017 (the "Law") on the one hand, and as referred to in detail in reference
numbers 1302/28-4-2017 and 1508/17.7.2020 Announcements of the Directorate of Listed Companies /
Department of Supervision of Listed Companies of the Hellenic Capital Market Commission (hereinafter the
"Announcements") on the other hand, we state our Report below and we bring to your attention, within the
responsibilities of the Audit Committee, findings regarding the objects regulated by the Law and the
aforementioned announcements. Specifically:
A) In relation to the mandatory external audit (article 44, par. 3, case a) of the Law)
In specific:
a) Regarding the performance of the statutory audit (external audit) of the corporate and consolidated
financial statements of the Company for the year ended December 31st, 2023, we did not find significant deviations
in the recognition, valuation and classification of assets and liabilities and we consider that the Management's
assumptions and estimates are reasonable. We have found that the relevant disclosures in the notes to the financial
statements are adequate.
b) During the mandatory inspection, we performed the following matters:
1. Review of health, safety and environmental issues.
2. Review of production procedures.
3. Visit and briefing at the premises of two of the Company’s subsidiaries, CABLEL WIRES S.A. in Livadia Viotias,
and ELVAL COLOUR S.A. in Agios Thomas Viotias.
4. Internal Audit Unit Reports.
Annual Financial Report of 31st December 2023
62
5. Report of the group of External Auditors.
6. Examination of pending litigation risks.
In the exercise of our responsibilities, we have not identified any significant weaknesses that need improvement.
It is noted that the Audit Committee always takes into account the content of any additional reports submitted to
it by the chartered accountant of the auditing company hired by the Company, which contains the results of the
statutory audit performed and meets at least the specific requirements in accordance with Article 11 of Regulation
(EU) No 537/2014 of the European Parliament and of the Council of 16 April 2014.
c) Within the framework of our responsibilities, we were informed about the procedure and the schedule of
preparation of the financial information by the management of the Company, as well as we were informed by the
chartered accountant on the statutory audit program for the year 2023 before its implementation. We evaluated
it and made sure that this program covered the most important areas of control, taking into account the key areas
of business and financial risk of the Company. We also held meetings with the Company’s management /
responsible executives and the chartered accountant, during the preparation of the financial statements, during
the planning stage of the audit, its execution and during the stage of preparation of the audit reports, respectively.
d) We have taken into account and examined the most important issues and risks that may have an impact
on the Company's financial statements, as well as the significant judgments and estimates of management during
their preparation. Specifically, we examined and evaluated in detail the following issues with reference to specific
actions on these issues:
d1) Regarding the important judgments, assumptions and estimates in the preparation of the financial
statements, we found that they are reasonable (reasonable).
d2) Regarding the disclosures on the above issues required by IAS / IFRS, we found that the disclosures included
in the financial statements are sufficient.
d3) Regarding the transactions with related parties, as shown in the Annual Financial Report for the year 2023,
we did not find any significant unusual transactions.
e) Finally, we had timely and substantial communication with the chartered accountant in view of the
preparation of the audit report and its supplementary report to the Audit Committee, while we point out that we
reviewed the financial reports before their approval by the Company’s Board of Directors and consider that is
complete and consistent in relation to the information that was brought to our attention, as well as to the
accounting principles applied by the Company.
B) In relation to the financial information process (article 44, par. 3, case b) of the Law)
In particular:
In relation to the process of preparing the financial information, the Audit Committee monitored, examined and
evaluated:
a) the mechanisms and systems of production, flow and dissemination of financial information produced by the
involved organizational units of the Company, and
b) other disclosed information in any way (e.g. stock market announcements, press releases) in relation to
financial information.
In the exercise of our responsibilities, we did not find any weaknesses in the process of compiling the financial
information that need to be improved.
Annual Financial Report of 31st December 2023
63
C) In relation to the procedures of internal control, risk management and regulatory compliance systems and
the Internal Control Unit (article 44, par. 3, case c) of the Law)
In particular:
In connection with the monitoring, examination and evaluation of the adequacy and effectiveness of all the policies,
procedures and safety controls of the Company regarding the internal control system, the assessment and
management of risks and the regulatory compliance in relation to the financial information, the Audit Committee
proceeded to the following actions:
(a) Evaluation of the proper functioning of the Internal Audit Unit according to the professional standards as well
as the current legal and regulatory framework and evaluation of the work it performs, its adequacy and
effectiveness, without however affecting its independence,
(b) Overview of the disclosed information regarding the internal audit and the main risks and uncertainties of
the Company in relation to the financial information,
(c) Evaluation of the staffing and organizational structure of the Internal Audit Unit and its weaknesses, i.e. if it
does not have the necessary means, if it is insufficiently staffed with insufficient knowledge, experience and
training,
(d) Assessing the existence or non-existence of restrictions on the work of the Internal Audit Unit, as well as the
independence that it must have, in order to perform its work unobstructed,
(e) Evaluation of the annual control program of the Internal Audit Unit before its implementation, taking into
account the main areas of business financial risk as well as the results of previous audits,
(f) Considering that the annual audit program, in conjunction with any corresponding medium-term programs,
covers the most important areas of control and financial information systems,
(g) Organizing regular meetings with the Head of the Internal Audit Unit on matters within its competence and
gaining knowledge of its work and its regular and extraordinary reports,
(h) Monitoring the effectiveness of internal control systems through the work of the Internal Audit Unit and the
work of the chartered accountant;
(i) Periodic evaluation of the application and effectiveness of the Corporate Governance System of the Company
for the period from 17.7.2021 to 31.12.2023, in accordance with article 4 paragraph 1 of Law 4706/2020;
(j) Overview of the management of the main risks and uncertainties of the Company and their periodic review,
evaluating the methods used by the Company to identify and monitor the risks, the treatment of the main
ones through the internal audit system and the Internal Audit Unit as well as their disclosure to the disclosed
financial information in a proper manner.
The Audit Committee was informed and has evaluated the reports of the audit program for the current year, while
it was also informed and evaluated the audit program of the coming year. The following is what the Audit
Committee has learned and evaluated:
• 2023 Audit Program Review.
• Summary of the Annual Audit Program of 2024.
• Human Resources of Internal Audit.
• Resource Allocation Guides.
Annual Financial Report of 31st December 2023
64
• Risk Assessment.
During the internal audit process, the Audit Committee became aware of the following actions of the Internal Audit
Unit:
• Audit of financial information and corporate governance.
• Financial management audit (Copper Division).
• Audit of sales and finance.
• Inventory audit.
• Industrial Production Control.
• Audit of warehousing & costing procedures.
• Audit of the efficiency of production resources.
• Night surveillance audit.
• Premises security audit.
The Audit Committee was informed of the following main risks for the year 2024:
1. Commercial Risk - Distribution Risk, associated with:
• Additional quantities of final products to be available for sale in the year 2024, due to increased production
capacity (Aluminum Sector).
• Maintaining high stocks - Slow moving products (Copper & Aluminum Sector).
• Additional costs after the completion of the production process, transportation and handling costs, etc.
(Aluminum Sector).
• Logistics for sales abroad (Aluminum Sector).
2. Information Systems Risk, related to:
• Data Security (Cyber Security) (Copper & Aluminum Segment).
• Multiple Information Programs (Copper & Aluminum Segment).
• Information System Users Access / Authorization (Copper & Aluminum Segment).
3. Foreign Exchange Risk, related to the risk of exchange rate fluctuations, British Pound and US Dollar (Copper &
Aluminum).
4. Compliance risk, related to:
• Environmental Risk (Possible non-compliance with environmental legislation). (Copper & Aluminum
Segment).
• Health & Safety Risk (Possible non-compliance with Health & Safety rules). (Copper & Aluminum Segment).
• Risk of application of GDPR provisions (Copper & Aluminum Segment).
• Risk of an increase in contractor’s staff due to new investments (Copper & Aluminum Segment).
5. Legal risk, related to the risk of:
Annual Financial Report of 31st December 2023
65
• Pending legal claims against third parties.
• Legal claims of third parties.
In the exercise of our responsibilities on the above-mentioned issues, we have not identified any weaknesses that
need to be improved.
D) Sustainable development policy followed by the Company
In accordance with the provisions of article 44 par. 1 of Law 4449/2017, as replaced by the provisions of article 74
par. 4 case 9 of L.4706/2020, the Audit Committee is obliged to include in the annual report of the proceedings to
the Ordinary General Meeting also a description of the sustainable development policy followed by the Company.
Large modern companies implement a Sustainable Development Policy, in accordance with the international best
practice. This policy empowers companies, gives them a social dimension and perspective for the future and makes
them real cells of the national economy.
The Company and consequently the ELVALHALCOR Group, following the policy of the broader VIOHALCO group,
implements a Sustainable Development Policy and seeks, over time, to create value for its participants, i.e.
shareholders, customers, employees and society in general.
To achieve this goal, the Group places particular emphasis on, among others, the training and development of
human resources, health and safety at work, as well as respect for the environment, following the principles of
sustainable operation and development.
The Sustainable Development Policy of the Company reflects the approach and commitment of the Management
to the issues of sustainable development and responsible operation. Responsible operation is a continuous
commitment to action of substance, in order to generate value for all stakeholders that meet the modern needs of
society and contribute in general to its prosperity. The Company has a specific strategy, which focuses on the
important issues related to its activity and seeks its continuous responsible development, focusing on the critical
pillars of business responsibility: Economy, Society, Environment. Sustainable development policy is an integral part
of the Company's business practice model and culture. In the context of the implementation of Sustainable
Development policy, the Company develops activities, among others, in the following areas:
a) Staff health and safety
The Company has set as an unnegotiable priority and primary concern the protection of the health and safety of its
staff. In the context of the implementation of this policy, the Company has established every best international
practice that contributes to the reinforcement and improvement of the safety culture and the achievement of the
goal of “zero accidents” and at the same time organizes training programs, both for the knowledge of the risks in
the production process and for the cultivation of a common consciousness and safety behaviour among employees.
b) Training and development of human resources
The Company recognizes the decisive contribution of the staff in its successful business path so far. The great
experience, the high specialization, the know-how and the creativity of the staff support the course of the Company
for a stable, dynamic and continuous development. The Company attaches great importance to the objective
evaluation of the staff, to the detection and development of talent, as well as to the continuous training, designing
and implementing training programs of high added value. The Company encourages professional development and
makes the most of the knowledge and skills of the staff. The Academy of the Company, which has been operating
for six years, aims to effectively develop the skills, knowledge and know-how of employees, through educational
Annual Financial Report of 31st December 2023
66
programs, which are based on structured methodology, selected subjects and educational material that meet
specific needs and cover a wide range of knowledge fields. Within the Academy, in the year 2023, educational
programs were implemented giving the opportunity to participants to take part and reap the benefits of learning
provided by highly qualified instructors. Some of these programs were implemented on a recurring basis.
c) Responsibility for society
The Company seeks the sustainability of the local community and therefore maintains a bilateral, continuous
cooperation with it. The Company draws from the local community that operates a significant part of its needs in
human resources and suppliers. Of the total workforce, a significant part concerns workers from local communities,
thus contributing to the local and national economy.
Regarding the Company’s social contribution initiatives, notable are the support of vulnerable groups, the
strengthening of local health centers and hospitals with the provision of appropriate equipment, the response to
emergencies (e.g. natural disasters), the voluntary blood donations in the facilities are noted, donations to charities,
support to schools, sports and cultural organizations and other initiatives that promote common values for
progress, development and social contribution.
d) Environmental protection
For the Company, the protection of the environment is a key element of its Sustainable Development Policy and is
a key pillar of its business strategy, which is adjusted to the ever changing international business environment.
Environmental awareness is expressed through targeted, environmental protection investments and systematic
and daily practices, which combine responsible environmental management with the effort to constantly reduce
the environmental footprint. In the context of environmental protection, the Company implements the current
legislation and in particular:
• Implements targeted environmental management programs (e.g. energy saving programs, actions and
initiatives to reduce air emissions, etc.).
• It seeks the rational use of raw materials and natural resources (e.g. rainwater, etc.) and promotes the
recycling of aluminium and copper.
• Implements an integrated waste management system (with emphasis on prevention to avoid their
production).
• Monitors technology developments and regularly upgrades environmental protection infrastructure.
• Provides for the continuous training and awareness of employees on environmental issues.
• Ensures that there is an appropriate risk analysis and incident response organization.
The Company has adopted an environmental management policy to protect the environment from its operation.
e) Protection of personal data
We found that the Company respects the protection of personal data not only as an obligation of legal compliance
with the General Regulation of Personal Data Protection but also takes appropriate measures in accordance with
the provisions of the General Regulation of Personal Data Protection (EU) 679/2016 and the implementing internal
law, L. 4624/2019. In order to harmonize with international standards and best practices, the Company has adopted
a Personal Data Protection Policy of employees, customers, suppliers and partners by setting specific roles,
procedures and mechanisms for the full range of activities. At the same time, ensuring the appropriate
Annual Financial Report of 31st December 2023
67
technological means, planning its processes with a view to protecting from the outset and planning of business
activities and information systems, but also the formation of a similar culture is a primary concern and goal of
continuous improvement but also for added value and the competitive advantage it offers to the Company. The
protection of personal data is a commitment.
f) Corporate governance
The Company, recognizing the importance of corporate governance principles but also the advantages deriving
from their adoption, follows international best practices and international standards that apply in its areas of
activity, in order to maximize the benefit for its shareholders and the production of value in general for all
participants and for society as a whole.
As a listed company on the Athens Stock Exchange, it implements the current corporate governance legislation. In
order to enhance corporate transparency and control mechanisms, effective management and optimal operational
efficiency, the Company implements Rules of Operation and has adopted the Hellenic Corporate Governance Code
issued by the Hellenic Corporate Governance Council (HCGC) of June 2021. In addition, the Code of Ethics and
Business Ethics, the Supplier Code of Conduct for / Partners of the Company and the Business Ethics and Anti-
Corruption Policy reflect its commitment and position on the issues of transparency, and the fight against
corruption and bribery. The Company’s exposure to the risk of corruption is systematically monitored.
It is pointed out that in order to achieve the above mentioned objectives of the Sustainable Development policy,
the Company has established and operates the following Directorates, which are fully staffed with sufficient and
appropriate staff:
• Directorate of Health and Safety.
• Environment Department.
• Directorate of Sustainable Development.
• Human Resources Department.
• Directorate of Quality Assurance and Environment.
We remain at your disposal for any additional information or clarification.
With kind regards,
THE CHAIRMAN
THE MEMBERS
Vasileios Loumiotis
Ploutarchos Sakellaris
Ourania Aikaterinari
Annual Financial Report of 31st December 2023
68
AUDIT RERORT
Annual Financial Report of 31st December 2023
69
Annual Financial Report of 31st December 2023
70
Annual Financial Report of 31st December 2023
71
Annual Financial Report of 31st December 2023
72
Annual Financial Report of 31st December 2023
73
Annual Financial Report of 31st December 2023
74
Annual Financial Report of 31st December 2023
75
ANNUAL FINANCIAL STATEMENTS (GROUP AND COMPANY) AS AT 31
DECEMBER 2023 ACCORDING TO INTERNATIONAL FINANCIAL REPORTING
STANDARDS
THE VICE-CHAIRMAN OF
THE BOARD OF DIRECTORS
THE GENERAL MANAGER OF
THE ALUMINIUM SEGMENT
AND MEMBER OF THE BOD
THE GENERAL MANAGER OF
THE COPPER SEGMENT AND
MEMBER OF THE BOD
THE GROUP CHIEF
FINANCIAL OFFICER
DIMITRIOS KYRIAKOPOULOS
ID Card No. AK 695653
NIKOLAOS KARAMBATEAS
ID Card No. AK 121870
PANAGIOTIS LOLOS
ID Card No. ΑΗ 131173
SPYRIDON KOKΚOLIS
ID Card No. AN 659640
Reg.Nr. A’ Class 20872
ELVALHALCOR SA
G.C.Registry.: 303401000
SA Registry No: 2836/06/B/86/48
SEAT: Athens Tower, Building B, 2-4Mesogeion Avenue
Annual Financial Report of 31st December 2023
76
I. Statement of Financial Position
GROUP
COMPANY
Amounts in EUR thousand
Note:
2023
2022
2023
2022
ASSETS
Non-current assets
Property, plant and equipment
11
1,051,732
1,031,678
789,551
769,171
Right of Use of Assets
34
10,394
18,627
5,531
15,930
Intangible assets and goodwill
12
77,076
77,428
70,049
70,130
Investment property
13
22,731
20,840
32,163
33,946
Investment in Subsidiaries
14
-
-
240,981
244,131
Investments in Equity - accounted investees
15
23,420
23,057
11,382
12,417
Other investments
15
28,470
5,261
28,217
4,994
Derivatives
19
5,355
29,557
5,307
29,557
Trade and other receivables
18
34,540
15,203
34,281
42,487
Long term loan receivables
35
2,600
-
2,600
-
1,256,318
1,221,651
1,220,062
1,222,764
Current assets
Inventories
17
734,729
861,922
466,214
578,627
Trade and other receivables
18
291,116
316,489
247,587
258,260
Loan Receivables
35
220
4,500
3,531
7,500
Derivatives
19
9,020
16,205
8,639
14,522
Cash and cash equivalents
20
40,517
35,195
26,624
17,675
Assets held for sale
38
1,529
77,867
-
26,634
1,077,131
1,312,177
752,595
903,219
Total assets
2,333,450
2,533,829
1,972,658
2,125,984
EQUITY
Share capital
21
146,344
146,344
146,344
146,344
Share premium
21
65,030
65,030
65,030
65,030
Reserves
21
309,600
322,838
300,585
316,952
Retained earnings/(losses)
418,642
429,894
297,288
324,149
Equity attributable to owners of the Company
939,617
964,107
809,247
852,475
Non-controlling interests
22,765
14,264
-
-
Total equity
962,382
978,372
809,247
852,475
LIABILITIES
Non-current liabilities
Loans and borrowings
23
694,544
778,250
651,223
712,604
Lease Liabilities
23
7,809
5,442
4,193
3,611
Derivatives
19
3,598
1,249
4,756
1,249
Deferred tax liabilities
16
56,872
61,957
30,415
42,609
Employee benefits
24
13,194
11,795
8,177
7,844
Grants
25
12,674
14,210
7,293
8,440
Provisions
26
1,561
1,590
1,411
1,411
Trade and other payables
27
12,640
14,073
11,365
14,073
802,892
888,566
718,833
791,840
Current liabilities
Trade and other payables
27
395,328
384,495
363,020
312,772
Contract liabilities
36
10,923
8,386
5,620
1,727
Current tax liabilities
16
5,623
39,025
-
30,839
Loans and borrowings
23
148,866
202,704
71,020
126,195
Lease Liabilities
23
2,649
4,357
1,523
3,506
Derivatives
19
3,442
6,650
3,285
6,520
Provisions
26
182
162
110
110
Liabilities directly associated with the assets held for sale
38
1,163
21,113
-
-
568,176
666,892
444,578
481,668
Total liabilities
1,371,068
1,555,458
1,163,411
1,273,509
Total equity and liabilities
2,333,450
2,533,829
1,972,658
2,125,984
The notes on pages 84 to 173 constitute an integral part of these Financial Statements.
Annual Financial Report of 31st December 2023
77
II. Income Statement
GROUP
COMPANY
Amounts in EUR thousand
Note:
2023
2022
Restated*
2023
2022
Restated*
Revenue
7
3,293,421
3,714,015
2,317,901
2,616,208
Cost of sales
9
(3,080,111)
(3,349,431)
(2,223,622)
(2,373,841)
Gross profit
213,310
364,584
94,279
242,366
Other Income
8
25,291
32,647
18,394
20,108
Selling and Distribution expenses
9
(35,338)
(41,667)
(20,342)
(20,330)
Administrative expenses
9
(69,022)
(68,221)
(42,678)
(41,992)
Impairment loss on receivables
18,35
(7,793)
(1,626)
(7,727)
(5,271)
Other Expenses
8
(23,357)
(29,467)
(16,000)
(20,275)
Operating profit / (loss)
103,091
256,250
25,926
174,607
Finance Income
10
3,476
535
3,580
646
Finance Costs
10
(56,596)
(42,210)
(43,311)
(34,036)
Dividends
434
138
28,359
22,721
Net Finance income / (cost)
(52,686)
(41,537)
(11,372)
(10,669)
Share of profit/ (loss) of equity-accounted
investees, net of tax
14
(7,392)
(2,704)
-
-
Impairment in participations and Goodwill
14
(54)
(12,186)
(17,580)
(33,958)
Profit/(Loss) before income tax
42,959
199,823
(3,026)
129,980
Income tax expense
16
(10,113)
(37,934)
5,550
(18,485)
Profit/(Loss) for the year
32,846
161,889
2,524
111,495
Attributable to:
Owners of the Company
28,498
159,286
2,524
111,495
Non-controlling Interests
4,347
2,603
-
-
32,846
161,889
2,524
111,495
Earnings per share
0,07595
0,42449
0,00673
0,29713
The notes on pages 84 to 173 constitute an integral part of these Financial Statements.
* The figures for 2022 have been restated. See note 5.20 for details regarding the restatement.
Annual Financial Report of 31st December 2023
78
III. Statement of Other Comprehensive Income
GROUP
COMPANY
Amounts in EUR thousand
2023
2022
2023
2022
Profit/Loss (-) from continuing operations
32,846
161,889
2,524
111,495
Items that will never be reclassified to profit or loss
Remeasurements of defined benefit liability
(790)
1,457
(567)
1,378
Equity investments in FVOCI - net change in fair value
216
310
216
310
Other movements
-
(8)
-
-
Related tax
111
(383)
77
(371)
Total
(464)
1,376
(274)
1,316
Items that are or may be reclassified to profit or loss
Foreign currency translation differences
(48)
(112)
-
-
Cash flow hedges – effective portion of changes in fair value
(21,047)
35,138
(21,316)
40,096
Cash flow hedges – reclassified to profit or loss
(9,196)
(3,977)
(8,124)
(7,412)
Share of other comprehensive income of equity-accounted investees
(11)
(35)
-
-
Related tax
6,602
(7,164)
6,477
(7,190)
Total
(23,700)
23,851
(22,963)
25,493
Total comprehensive income / (expense) after tax
(24,164)
25,227
(23,237)
26,809
Total comprehensive income
8,681
187,116
(20,713)
138,304
Total comprehensive income attributable to:
Owners of the Company
4,388
184,753
(20,713)
138,304
Non-controlling interests
4,293
2,363
-
-
8,681
187,116
(20,713)
138,304
The notes on pages 84 to 173 constitute an integral part of these Financial Statements.
Annual Financial Report of 31st December 2023
79
IV. Statement of Changes in Equity
GROUP
Amounts in EUR thousand
Share capital
Share
premium
Acquisition
Reserve
Other
reserves
Retained
earnings
Translation
Reserves
Total
Non-
Controlling
Interest
Total
Equity
Balance as at 1 January 2023
146,344
65,030
46,144
278,399
429,894
(1,705)
964,107
14,264
978,372
Total comprehensive income
Other comprehensive income
-
-
-
(23,610)
(449)
(48)
(24,107)
(54)
(24,164)
Profit of the period
-
-
-
-
28,498
-
28,498
4,347
32,846
Total comprehensive income
-
-
-
(23,610)
28,049
(48)
4,391
4,293
8,681
Transactions with owners of the
company
Change in ownership interests
-
-
-
-
(1,039)
-
(1,039)
149
(890)
Transfer of reserves
-
-
-
10,494
(10,494)
-
-
-
-
Dividend
-
-
-
-
(22,514)
-
(22,514)
(1,269)
(23,782)
Loss of Control of subsidiary
-
-
-
(8)
(5,253)
(66)
(5,327)
5,327
-
Total transactions with owners of the
Company
-
-
-
10,486
(39,300)
(66)
(28,880)
4,207
(24,672)
Balance as at 31 December 2023
146,344
65,030
46,144
265,276
418,642
(1,819)
939,617
22,764
962,382
The notes on pages 84 to 173 constitute an integral part of these Financial Statements.
Annual Financial Report of 31st December 2023
80
Amounts in EUR thousand
Share capital
Share premium
Acquisition
Reserve
Other
reserves
Retained
earnings
Translation
Reserves
Total
Non-
Controlling
Interest
Total Equity
Balance as at 1 January 2022
146,344
65,030
46,144
246,847
286,426
(1,572)
789,219
19,098
808,316
Total comprehensive income
Other comprehensive income
-
-
-
24,239
1,340
(112)
25,467
(240)
25,227
Profit of the period
-
-
-
-
159,286
-
159,286
2,603
161,889
Total comprehensive income
-
-
-
24,239
160,626
(112)
184,753
2,363
187,116
Transactions with the shareholder's
directly in equity
Change in ownership interests
-
-
-
-
1,413
(21)
1,393
(6,404)
(5,012)
Transfer of reserves
-
-
-
7,313
(7,313)
-
-
-
-
Dividend
-
-
-
-
(11,257)
-
(11,257)
(792)
(12,049)
Total transactions with owners of the
Company
-
-
-
7,313
(17,157)
(21)
(9,865)
(7,196)
(17,061)
Balance as at 31 December 2022
146,344
65,030
46,144
278,399
429,894
(1,705)
964,107
14,264
978,372
The notes on pages 84 to 173 constitute an integral part of these Financial Statements.
Annual Financial Report of 31st December 2023
81
COMPANY
Amounts in EUR thousand
Share capital
Share premium
Acquisition Reserve
Other reserves
Retained earnings
Total
Balance as at 1 January 2023
146,344
65,030
49,843
267,109
324,149
852,475
Total comprehensive income
Other comprehensive income
-
-
-
(22,963)
(274)
(23,237)
Profit of the period
-
-
-
-
2,524
2,524
Total comprehensive income
-
-
-
(22,963)
2,250
(20,713)
Transactions with owners of the company
Transfer of reserves
-
-
-
6,597
(6,597)
-
Dividend
-
-
-
-
(22,514)
(22,514)
Change in ownership interests
-
-
-
-
-
-
Total transactions with owners of the Company
-
-
-
6,597
(29,111)
(22,514)
Balance as at 31 December 2023
146,344
65,030
49,843
250,742
297,288
809,247
The notes on pages 86 to 173 constitute an integral part of these Financial Statements.
Annual Financial Report of 31st December 2023
82
Amounts in EUR thousand
Share capital
Share premium
Acquisition Reserve
Other reserves
Retained earnings
Total
Balance as at 1 January 2022
146,344
65,030
49,843
237,581
226,630
725,428
Total comprehensive income
Other comprehensive income
-
-
-
25,493
1,316
26,809
Profit of the period
-
-
-
-
111,495
111,495
Total comprehensive income
-
-
-
25,493
112,811
138,304
Transactions with owners of the company
Transfer of reserves
-
-
-
4,034
(4,034)
-
Dividend
-
-
-
-
(11,257)
(11,257)
Change in ownership interests
-
-
-
-
-
-
Total transactions with owners of the
Company
-
-
-
4,034
(15,292)
(11,257)
Balance as at 31 December 2022
146,344
65,030
49,843
267,109
324,149
852,475
The notes on pages 84 to 173 constitute an integral part of these Financial Statements.
Annual Financial Report of 31st December 2023
83
V. Cash flow statement
GROUP
COMPANY
Amounts in EUR thousand
2023
2022
2023
2022
Cash flows from operating activities
Gains of the period after tax
32,846
161,889
2,524
111,495
Adjustments for:
- Income tax
10,113
37,934
(5,550)
18,485
- Depreciation
11,13,34
73,767
70,215
51,947
46,681
- Amortisation
12
1,068
1,371
593
685
- Amortisation of grants
25
(1,535)
(1,673)
(1,146)
(1,254)
- Net finance costs
10
53,121
41,675
39,731
33,391
- Dividends income
(434)
(138)
(28,359)
(22,721)
- Share of profit of equity-accounted investees, net of tax
14
7,392
2,704
-
-
- Reversal of dividend in kind
9
(264)
(2,104)
(189)
(1,930)
- (Gain) / loss from sale of property, plant & equipment
9
248
1,881
15
456
- Loss from write-offs of property, plant & equipment
9
1,187
6,794
1,106
6,357
- (Reversal of) / Impairment of property, plant & equipment
-
5,070
-
-
- (Reversal of) / Impairment of intangibles and goodwill
275
(376)
966
-
- Unrealised (Gain) / Loss from valuation of derivatives
9
3,588
-
4,745
-
- (Gain) / Loss from valuation from sale of investment
9
2,589
-
-
-
- (Reversal of) / Impairment loss on receivables and contract assets
7,758
1,626
7,727
5,271
- (Reversal of) / Impairment of inventories
17
5,208
6,103
235
3,143
- (Reversal of) / Impairment of investments
54
7,116
17,580
33,958
196,981
340,086
91,925
234,016
Changes in:
- Inventories
121,980
(170,420)
112,177
(145,031)
- Trade and other receivables
11,874
(27,119)
(9,194)
(55,378)
- Trade and other payables
8,759
(70,119)
46,890
(26,012)
- Contract liabilities
2,538
(881)
3,894
2,835
- Employee benefits
1,399
667
333
386
Cash generated from operating activities
343,531
72,214
246,026
10,816
Interest charges & related expenses paid
(54,007)
(37,488)
(40,867)
(29,926)
Income tax paid
(19,770)
(5,833)
(8,846)
(1,005)
Net Cash from / (used in) operating activities
269,754
28,892
196,313
(20,115)
Cash flows from investing activities
Purchase of property, plant and equipment
(94,958)
(153,955)
(70,175)
(129,614)
Purchase of intangible assets
(312)
(1,986)
(185)
(131)
Purchase of investment property
-
(18,139)
-
(18,139)
Proceeds from sale of property, plant & equipment
1,012
1,349
2,645
2,880
Dividends received
398
138
28,341
22,439
Interest received
154
483
1,747
646
Acquisition of financial assets and share capital increase in subsidiaries,
associates and joint-ventures
(965)
(4,970)
(3,705)
(9,825)
Cash transferred to held for sale
(292)
(3,434)
-
-
Net Cash flows used in investing activities
(94,963)
(180,514)
(41,331)
(131,743)
Cash flows from financing activities
Dividends paid
(22,514)
(11,257)
(22,514)
(11,257)
Dividends paid to minority
(1,269)
(792)
-
-
Proceeds from new borrowings
23
54,096
229,399
42,973
200,540
Repayment of borrowings
23
(194,190)
(113,049)
(161,816)
(70,099)
Payment of lease liabilities
23
(5,968)
(5,264)
(4,675)
(3,523)
Proceeds / (payment) from capital increase / (decrease)
-
(4,020)
-
(4,020)
Acquisition of non-controlling interests
376
-
-
-
Grant proceeds
-
656
-
650
Net cash flows from financing activities
(169,469)
95,672
(146,032)
112,291
Net (decrease)/ increase in cash and cash equivalents
5,326
(55,949)
8,949
(39,567)
Cash and cash equivalents at 1 January
35,195
91,144
17,675
57,242
Cash and cash equivalents at 31 December
20
40,517
35,195
26,624
17,675
The notes on pages 84 to 173 constitute an integral part of these Financial Statements.
Annual Financial Report of 31st December 2023
84
VI. Notes to the financial statements at 31.12.2023
1. Incorporation and Group Activities
ELVALHALCOR HELLENIC COPPER AND ALUMINIUM INDUSTRY S.A was created by the merger by absorption of
“ELVAL HELLENIC ALUMINIUM INDUSTRY S.A.” (hereinafter “ELVAL”) by the listed “HALCOR METAL WORKS S.A.”
(hereinafter “HALCOR”) with the 131569/30-11-2017 of the Ministry of Economy and Development.
The duration of the company has been set until 31.12.2200. It is listed on Athens Stock Exchange and is a subsidiary
of VIOHALCO S.A. The Company is registered at the Companies registry (Μ.Α.Ε.) with number 2836/06/B/86/48 and
at the General Electronic Commercial Registry (G.E.M.I) with registration number 303401000, and LEI:
213800EYWS2GY56AWP42.
These Financial Statements (the "Financial Statements") of the Company for the year ended on 31 December 2022
include the individual Financial Statements of ELVALHALCOR and the consolidated financial statements of
ELVALHALCOR (together the "Group"). The names of subsidiaries and affiliated companies are presented in Note
31 of the Financial Statements.
The Financial Statements of ELVALHALCOR Group are included in the consolidated Financial Statements of
VIOHALCO S.A/NV that is traded on the EURONEXT stock exchange in Belgium as well as in the Athens Exchange.
The principal activities of the Group lie in the processing of metals, and more specifically in the production,
manufacturing and trade and agency of products made of copper, copper alloys, aluminium, aluminium alloys and
zinc as well as from other metals or alloys, and any type of their products. The Group operates in Greece, in Bulgaria
and in Turkey.
The Company is located in Greece, 2-4 Mesogeion Ave., Athens Tower, Building B, 11525, Athens. The central offices
of the Company and its contact address are located at the 61 - 62
nd
km of "Athens-Lamia National Highway, Inofyta
(Pref. of Viotia), GR-32011. The company's website is www.elvalhalcor.com.
2. Basis of preparation of the Financial Statements
a) Compliance note
The Financial Statements have been prepared in accordance with the International Financial Reporting Standards
(IFRS), as adopted by the European Union.
The Financial Statements ended as at 31 December 2023 were approved for publication by the Company’s Board
of Directors on 5th of March, 2024 and remain under the approval of the General Assembly of Shareholders.
b) Measurement basis
The Financial Statements have been prepared in accordance with the historical cost principle except the following
assets and liabilities that are measured at fair value.
• Derivative financial instruments held for hedging purposes (fair value);
• Equity investments at FVOCI (fair value);
• Net defined benefit liability (present value of the obligation).
Annual Financial Report of 31st December 2023
85
c) Functional currency and presentation currency
The functional and presentation currency of the Company is the euro. All amounts in the Financial Statements are
rounded to the nearest thousand, unless otherwise indicated. As such, due to rounding, figures shown as totals in
certain tables may not be arithmetic aggregations of the figures that precede them.
d) Use of estimates and judgements
The preparation of financial statements is in line with I.F.R.S and requires from Management to make judgements,
estimates and assumptions that affect the application of Group’s accounting policies and the reported amounts of
assets, liabilities, income and expenses. The actual results may differ from these estimates.
Management’s estimates and judgements are reviewed on an ongoing basis. Revisions to estimates are recognised
prospectively.
The following notes give information about judgements, assumptions and estimation uncertainties that have
significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next
financial year:
• Note 24 – Measurement of defined benefit obligations: key actuarial assumptions.
• Note 16 – Recognition of deferred tax assets, availability of future taxable profits against which carry
forward tax losses can be used.
• Note 12 & 14 – Impairment test: key assumptions underlying recoverable amounts.
• Note 28 (a) – Measurement of expected credit losses on trade receivables and contract assets: key
assumptions in the determination of expected loss rates
• Note 16 & 26: Recognition of income tax payables
• Note 29: Fair value measurement of level 3 financial instruments.
• Note 13: Fair value measurement of investment property
• Note 8: Some contracts with customers includes variable consideration as well as these include credit
invoices issued due to volumes or due to price based on the total sales performed during the year to this
specific customer.
• Note 29: Classification and measurement of derivatives related to PPA agreements.
3. Changes in accounting policies
On 1 January 2023, ElvalHalcor applied the provisions related to hedge accounting according to IFRS 9. These
require the Group and the Company to ensure that hedging relationships are aligned with the objectives and the
strategy of risk management and to apply a more qualitative and forward-looking approach to evaluating hedging
effectiveness. The aforementioned applied without any material impact on the consolidated financial statements.
The Group applied the standard prospectively without restatement of the comparative information for prior years.
4. New Standards
New standards, amendments to standards and interpretations: Certain new standards, amendments to
standards and interpretations have been issued that are mandatory for periods beginning on or after 1 January
2023. The Group’s evaluation of the effect of these new standards, amendments to standards and interpretations
is as follows:
Standards and Interpretations effective for the current financial year
Annual Financial Report of 31st December 2023
86
IFRS 17 ‘Insurance contracts’ and Amendments to IFRS 17 (effective for annual periods beginning on or after 1
January 2023)
IFRS 17 has been issued in May 2017 and, along with the Amendments to IFRS 17 issued in June 2020, supersedes
IFRS 4. IFRS 17 establishes principles for the recognition, measurement, presentation and disclosure of insurance
contracts within the scope of the Standard and its objective is to ensure that an entity provides relevant information
that faithfully represents those contracts. The new standard solves the comparison problems created by IFRS 4 by
requiring all insurance contracts to be accounted for in a consistent manner. Insurance obligations will be accounted
for using current values instead of historical cost. The standard does not have a material impact on the financial
statements.
IAS 1 (Amendments) ‘Presentation of Financial Statements’ and IFRS Practice Statement 2 ‘Disclosure of
Accounting policies’ (effective for annual periods beginning on or after 1 January 2023)
The amendments require companies to disclose their material accounting policy information and provide guidance
on how to apply the concept of materiality to accounting policy disclosures. The standard does not have a material
impact on the financial statements.
IAS 8 (Amendments) ‘Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting
Estimates’ (effective for annual periods beginning on or after 1 January 2023)
The amendments clarify how companies should distinguish changes in accounting policies from changes in
accounting estimates. The standard does not have a material impact on the financial statements.
IΑS 12 (Amendments) ‘Deferred tax related to Assets and Liabilities arising from a Single Transaction’ (effective
for annual periods beginning on or after 1 January 2023)
The amendments require companies to recognise deferred tax on transactions that, on initial recognition, give rise
to equal amounts of taxable and deductible temporary differences. This will typically apply to transactions such as
leases for the lessee and decommissioning obligations. The standard does not have a material impact on the
financial statements.
IFRS 17 (Amendment) ‘Initial Application of IFRS 17 and IFRS 9 – Comparative Information’ (effective for annual
periods beginning on or after 1 January 2023)
The amendment is a transition option relating to comparative information about financial assets presented on initial
application of IFRS 17. The amendment is aimed at helping entities to avoid temporary accounting mismatches
between financial assets and insurance contract liabilities, and therefore improve the usefulness of comparative
information for users of financial statements. The standard does not have a material impact on the financial
statements.
IAS 12 ‘Income taxes’ (Amendments): International Tax Reform – Pillar Two Model Rules (effective for annual
periods beginning on or after 1 January 2023)
The amendments introduce a mandatory temporary exception from accounting for deferred taxes arising from the
Organisation for Economic Co-operation and Development’s (OECD) international tax reform. The amendments
also introduce targeted disclosure requirements.
The temporary exception applies immediately and retrospectively in accordance with IAS 8, whereas the targeted
disclosure requirements will be applicable for annual reporting periods beginning on or after 1 January 2023. The
standard. The standard does not have a material impact on the financial statements.
Annual Financial Report of 31st December 2023
87
Standards and Interpretations effective for subsequent periods
IAS 1 ‘Presentation of Financial Statements’ (Amendments) (effective for annual periods beginning on or after 1
January 2024)
● 2020 Amendment ‘Classification of liabilities as current or non-current’
The amendment clarifies that liabilities are classified as either current or non-current depending on the
rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the
entity or events after the reporting date. The amendment also clarifies what IAS 1 means when it refers to
the ‘settlement’ of a liability.
● 2022 Amendments ‘Non-current liabilities with covenants’
The new amendments clarify that if the right to defer settlement is subject to the entity complying with
specified conditions (covenants), this amendment will only apply to conditions that exist when compliance
is measured on or before the reporting date. Additionally, the amendments aim to improve the information
an entity provides when its right to defer settlement of a liability is subject to compliance with covenants
within twelve months after the reporting period.
The 2022 amendments changed the effective date of the 2020 amendments. As a result, the 2020 and 2022
amendments are effective for annual reporting periods beginning on or after 1 January 2024 and should be
applied retrospectively in accordance with IAS 8. As a result of aligning the effective dates, the 2022
amendments override the 2020 amendments when they both become effective in 2024.
IFRS 16 (Amendment) ‘Lease Liability in a Sale and Leaseback’ (effective for annual periods beginning on or after
1 January 2024)
The amendment clarifies how an entity accounts for a sale and leaseback after the date of the transaction. Sale and
leaseback transactions where some or all the lease payments are variable lease payments that do not depend on
an index or rate are most likely to be impacted. An entity applies the requirements retrospectively back to sale and
leaseback transactions that were entered into after the date when the entity initially applied IFRS 16.
IAS 7 ‘Statement of Cash Flows’ and IFRS 7 ‘Financial Instruments’ (Amendments) - Disclosures: Supplier
Finance Arrangements (effective for annual periods beginning on or after 1 January 2024)
The amendments require companies to disclose information about their Supplier Finance Arrangements such as
terms and conditions, carrying amount of financial liabilities that are part of such arrangements, ranges of payment
due dates and liquidity risk information. The amendments have not yet been endorsed by the EU.
IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’ (Amendments) - Lack of exchangeability (effective for
annual periods beginning on or after 1 January 2025)
These amendments require companies to apply a consistent approach in assessing whether a currency can be
exchanged into another currency and, when it cannot, in determining the exchange rate to use and the disclosures
to provide. The amendments have not yet been endorsed by the EU.
Annual Financial Report of 31st December 2023
88
5. Significant accounting policies
5.1 Basis of Consolidation
a. Business combination
The acquisitions of subsidiaries accounted under the purchase method on the date of acquisition, the date on which
control is transferred to the Group. Control power is the power of operating and financial policies of an enterprise
so as to benefit from the activity. In assessing control, the Group takes account of potential voting rights that
presently may be exercisable.
The goodwill arises from the acquisition of subsidiaries and constitutes the exceeding amount between the sum of
purchase price and the amount of the non-controlling participation to the acquired entity at the date of acquisition
and the fair value of the net assets acquired. If the sum of the total price paid, the non-controlling participation
recognized and the prior participation in the company is less than the fair value of the net assets then the difference
of a bargain purchase is recognized in the profit and loss.
Any expenses related to the acquisition are posted directly on the profit and loss. Any consideration transferred is
recognized at fair value at the acquisition date.
b. Subsidiaries
Subsidiaries are entities that the Group, directly or indirectly, controls their financial and operating policies.
Subsidiary companies are fully consolidated from the day control over them is acquired and cease to be
consolidated from the day this control is no longer exist. y. The financial statements of the subsidiaries are included
in the Consolidated Financial Statements from the date on which control commences until the date on which
control ceases.
In its financial statements, the Company measures holdings in subsidiaries at their acquisition cost less any
impairment of their value.
c. Accounting for transactions with non-controlling interest
Transactions with non-controlling interest that do not result in loss of control are accounted as transactions
between owners and their percentages and as a result no goodwill is recognized in these transations. Any difference
between the consideration paid and the carrying amount of the equity interests is accounted within equity. Any
gains or losses arising from the sale of equity interest to non-controlling interest are accounted directly to equity.
d. Non controlling interests
Non-controlling interests (NCI) are measured at fair value or at their proportionate share of the acquiree’s
identifiable net assets at the date of acquisition. This measurement is done on an acquisition by acquisition basis.
Changes in Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity
transactions.
e. Loss of control
Upon the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling
interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of
control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest
is measured at fair value at the date that control is lost. Subsequently it is accounted for as an investment in an
associate or as an available-for-sale financial asset depending on the level of influence retained.
Annual Financial Report of 31st December 2023
89
f. Investments in associates and joint ventures
Associated companies are companies over which the Group exercises significant influence, but not control, which,
in general, applies when the holding percentage in the voting rights ranges between 20% and 50%. A joint venture
is an arrangement in which ELVALHALCOR has joint control, whereby ELVALHALCOR has rights to the net assets of
the arrangement, rather than rights to its assets and obligations for its liabilities.
Investments in associates and joint ventures are accounted for using the equity method and recognized initially at
their acquisition cost. The Group’s investments in associates include goodwill identified on acquisition, net of any
accumulated impairment losses. In the consolidated financial statements, the Group represents the ratio of the
results and the total income after any changes in accounting principles to be comparable to those of the Group
from the date of obtaining significant influence until the date we lose it.
When the Group’s share of losses exceeds its interest in an investment in associate or joint venture the carrying
amount of that interest is reduced to zero and no recognition of further losses are recognized except to the extent
that the Group has an obligation or has made payments on behalf of the associate.
In the Company’s financial statements, investments in associates and joint ventures are recorded at cost minus any
impairment that may occur.
g. Elimination of intercompany transactions
Inter-company transactions, balances and recognized profits from transactions between Group companies are
eliminated in preparing the consolidated financial statements. Unrealised gains on transactions between associates
or joint ventures are eliminated against the Group’s stake in the affiliated company. The same applies to non-
realised losses, unless there are indications that the value of the assets that was transferred have been impaired.
h. Business combinations under common control
IFRS 3 “Business Combinations” does not apply to mergers of companies under common control and no guidance
from IFRS applies for such transactions. According to paragraphs 10 to 12 of IAS 8 “Accounting Policies, Changes in
Accounting Estimates and Errors” the Group selects to apply the method of acquisition as described in IFRS 3 for
such transactions, as stated above.
5.2 Foreign currency
a. Transactions in foreign currency
Transactions in foreign currencies are translated into the respective functional currencies of Group’s companies at
the exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into functional currency at the
exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign
currency are translated into the functional currency at the exchange rate, when the fair value was determined.
Foreign currency gains and losses are recognized and classified in the Consolidated Statement of Profit or Loss
based on the nature of the related item of the Consolidated Statement of Financial Position.
Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange
rate at the date of the transaction.
Foreign currency differences arising from the translation of qualifying cash flow hedges to the extent that the
hedges are effective and investments in equity securities designated as at FVOCI are recognized as Other
Comprehensive Income (OCI).
Annual Financial Report of 31st December 2023
90
Gains and losses from foreign exchange differences that arise from the settlement of such transactions are recorded
in the profit and loss statement and follow the respective income/ expense of such transaction.
b. Translation of financial statements of Group companies with different functional currency
The financial statements of Group companies that have a functional currency different from the Group’s
presentation currency are translated as follows:
• Assets and liabilities of foreign activities including goodwill and fair value adjustments arising during consolidation
are converted into Euro based on the official exchange rate for the foreign currency that is in effect on the balance
sheet date.
• Income and expenses are converted into Euro on the basis of the average rate of the foreign currency during the
year which approaches the exchange rate in effect on the date of transactions.
• Any foreign exchange difference that may arise is recorded in an equity reserve named “Foreign exchange
differences due to consolidation” through OCI and transferred to profit and loss when these companies are sold.
• When the Group disposes of only part of its investment in a subsidiary while retaining significant influence, the
relevant proportion of the cumulative amount is reclassified to non-controlling interest. When the Group disposes
of only part of an associate or joint venture while retaining significant influence or joint control, the relevant
proportion of the cumulative amount is reclassified to profit and loss.
5.3 Revenue
The Group and the Company recognize revenue from the following major sources:
• Sale of products;
• Rendering of services.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts
collected on behalf of third parties. The Group and the Company recognize revenue when it transfers control of a
product or service to a customer.
a) Sales of goods for Copper and Aluminium products
Income from sales of goods is recognized when the control is transferred to the buyer. Indicatively, income from
sales of goods is recognized when the significant risks and rewards of ownership have been transferred to the buyer,
no performance obligations exist which could affect the acceptance of the goods by the buyer, the collection of the
price is reasonably secured, the relevant expenses and eventual returns of goods can be reliably measured, and no
continuous involvement in goods management applies. Any returns or turnover-related discounts are deducted
from the income from sales of goods. The terms defined on the contracts with customers are according to
Incoterms.
b) Rendering of services
Rendering of services is recognized in the period in which the services are rendered, on the basis of the stage in the
completion of the actual service to the services as a whole.
Annual Financial Report of 31st December 2023
91
5.4 Employee benefits
A. Short-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the
amount expected to be paid if Group and its companies have a present legal or constructive obligation to pay this
amount, as a result of past service provided by the employee and the obligation can be estimated reliably.
B. Defined contribution plans
Defined-contribution plans are plans for the period after the employee has ceased to work during which Group
pays a defined amount to a third legal entity without any other obligation. The accrued cost of definedcontribution
programs is recorded as an expense in the period that the related service is provided.
C. Defined benefit plans
Group’s and Company’s net obligation in respect of defined benefit plans is calculated separately for each plan by
estimating the amount of future benefit that employees have earned in the current and prior periods, discounting
that amount and deducting the fair value of any plan assets. The discount rate is based on high-quality corporate
bonds that are denominated in the currency in which the benefits will be paid. The calculation of defined benefit
obligations is performed annually by a qualified actuary using the projected unit credit method, while benefits are
attributed over the last 16 years before retirement of each employee. Remeasurements of the net defined benefit
liability, which comprise actuarial gains and losses, are recognized immediately in OCI. The Group and the Company
determine the net interest expense on the net defined benefit liability for the period by applying the discount rate
used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined
benefit liability, taking into account any changes in the net defined benefit liability during the period as a result of
contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are
recognized in profit or loss. When the benefits of a plan are changed or when a plan is curtailed, the resulting
change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit
or loss. The Group and the Company recognize gains and losses on the settlement of a defined benefit plan when
the settlement occurs.
D. Termination benefits
Termination benefits are expensed at the earlier of when Group can no longer withdraw the offer of those benefits
and when the Group recognizes costs for a restructuring. If benefits are not expected to be settled wholly within
12 months of the reporting date, then they are discounted.
5.5 Government Grants
Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant
will be received, and Group will comply with all attached conditions. Government grants relating to the purchase
of property, plant and equipment are included in non-current liabilities as deferred government grants and are
credited to the Consolidated Statement of Profit or Loss (line “Other income”) on a straight-line basis over the
expected useful lives of the related assets.
Government grants relating to costs are deferred and recognized in the statement of profit or loss over the period
necessary to match them with the costs that they are intended to compensate, except in case that the Group will
comply with all the attached conditions following the recognition of expense. In this case these grants are
recognized when they collected.
Annual Financial Report of 31st December 2023
92
5.6 Finance income and finance costs
Group finance income and finance costs mainly include:
• interest income;
• interest expense;
• dividend income;
• foreign currency gains and losses from loans and deposits.
Dividend income is recognized in profit or loss on the date on which the right to receive payment is established.
Interest income or expense is recognized using the effective interest method.
The “effective interest rate” is the rate that exactly discounts estimated future cash payments or receipts through
the expected life of the financial instrument to:
• the gross carrying amount of the financial asset; or
• the amortised cost of the financial liability.
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the
asset or to the amortised cost of the financial liability.
5.7 Income tax
Income tax expense comprises current and deferred tax. It is recognized in profit or loss except to the extent that
it relates to a business combination, or items recognized directly in equity or in OCI.
A. Current tax
Current tax comprised the expected tax payable or receivable on the taxable income or loss for the year and any
adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or
substantively enacted at the reporting date. Current tax also includes any tax arising from dividends.
Current tax assets and liabilities are offset only if certain criteria are met.
B. Deferred tax
Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is determined using the
tax rates that are expected to apply to the period in which the asset will be liquidated, or the liability will be settled.
The determination of future tax rates is based on laws passed on the date the financial statements are prepared.
Deferred tax is not recognized for:
• Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss;
• Temporary differences related to investments in subsidiaries, associates and joint arrangements to the
extent that Group is able to control the timing of the reversal of the temporary differences and it is probable
that they will not reverse in the foreseeable future; and
• Taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognized for unused tax losses, unused tax credits and deductible temporary differences
to the extent that is probable that future taxable profits will be available against which they can be used. Deferred
tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the
Annual Financial Report of 31st December 2023
93
related tax benefit will be recognized; such reductions are reversed when the probability of future taxable profits
improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognized to the extent that is has
become probable that future taxable profits will be available against which they can be used. Deferred tax is
measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax
rates enacted or substantively enacted at the reporting date.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which Group
expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax
assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority.
5.8 Inventories
Inventories are valued at acquisition cost or net recognized value, whichever is lower. Acquisition cost is determined
by applying the annual average weighted cost method and includes the cost to buy, produce or manufacture and
other expenses so as to acquire its current condition and location and the ratio of production expenses. The cost
may include any transfer from the cash flow hedging reserve. Net recognized value is assessed based on current
sale prices of inventories in the course of ordinary activities, less any termination and sales expenses that apply to
the case.
The write-down of inventories to net recognized value and any reversals are recognized in “Cost of sales” in the
period in which the write-downs occur.
5.9 Property, plant and equipment
A. Recognition and measurement
Non-current assets include Land, Buildings, Machinery, Transportation equipment, Furniture and other equipment.
Property, plant and equipment are presented at their acquisition cost less accumulated depreciation and
impairment. The acquisition cost includes all expenses that are directly associated with the asset’s acquisition or
self-construction. The cost of self-constructed fixed assets includes the cost of direct labour, materials and any
other cost that is required for the fixed asset to be ready for use as well as any borrowing costs. Cost may also
include transfers from equity of any gains/losses on qualifying cash flow hedges of foreign currency purchases of
property, plant and equipment.
Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the
expenditure will flow to the Group. Repair and maintenance costs are recorded in the Consolidated Statement of
Profit or Loss when these are incurred.
The book value of a tangible asset is recorded down to its net recognized value when its book value exceeds its
recoverable amount.
On the sale of property, plant and equipment, any difference that may arise between the price that is received and
the carrying value thereof is recorded through profit or loss in the category “Other income (expenses)”.
B. Depreciation
Plots – lots (Land) and assets under construction are not depreciated. Depreciation of other tangible assets is
calculated using the straight-line method during the estimated useful life of fixed assets and their segments if they
have a different useful life. The estimated useful life of these categories is as follows:
- Buildings 20-50 years
Annual Financial Report of 31st December 2023
94
- Machinery & equipment 1-40 years
- Transportation equipment 4-15 years
- Furniture and fixtures 1-8 years
Residual value and the useful life of tangible assets are subject to re-examination on each balance sheet date, if
deemed necessary.
C. Reclassification to investment property
When the use of a property changes from owner-occupied to investment property, the property is reclassified
accordingly. The item is reclassified at its net book value at the date of reclassification which becomes its deemed
cost for subsequent accounting purposes.
D. Reclassification to assets held for sale
Non-current assets and disposal group of assets are reclassified as held for sale if their carrying amount will be
recovered principally through a sale transaction rather than continuing use.
5.10 Intangible assets
A. Recognition and measurement and amortisation
Intangible assets acquired separately are recognized at acquisition cost while any intangible assets acquired through
the purchase of entities are recognized at their fair value on acquisition date. After acquisition they are valued at
that amount less accumulated depreciation and any accumulated impairment losses. The useful life of intangible
assets may be finite or indefinite. The cost of intangible assets with a definite useful life is depreciated over the
estimated useful life using the straight-line method. Intangible assets are depreciated from the date they become
available for use.
Intangible assets with indefinite useful life are not depreciated but are subject periodically (at least annually) to an
estimate of any impairment based on the provisions of IAS 36 “Impairment of Assets”. Residual values are not
recognized. The useful life of intangible assets is evaluated on an annual basis. Intangible assets are tested for
impairment at least annually individually or at cash-generating unit level.
Goodwill do not amortized although measured to its carrying amount less any impairment losses.
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific
asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands,
is recognized in profit or loss as incurred.
5.11 Investment Property
Investment property includes properties held by the Group to earn long term rentals and cannot be own used.
Investment property is initially measured at cost less any accumulated despeciation. If the net book value of the
investment property exceeds its recoverable amount, the difference is posted as an impairment in the Statement
of Profit and Loss.
The land-plots included in the investment property are not depreciated. The depreciation of the buildings are
calculated on a straight-line method based on their useful life varies from 20 to 50 years.
Any gain or loss on disposal of investment property (calculated as the difference between the net proceeds from
disposal and the carrying amount of the item) is recognized in the profit or loss as incurs.
Rental income from investment property is recognized as other revenue on a straight line basis over the term of
the lease.
Annual Financial Report of 31st December 2023
95
5.12 Assets Held for sale
Assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is highly probable that
they will be recovered primarily through sale rather than through continuing use. Such assets, or disposal groups,
are generally measured at the lower of carrying amount and fair value minus costs to sell. Impairment losses on
initial classification as held-for-sale and subsequent gains and losses on remeasurement are recognized in profit or
loss.
Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or
depreciated, and any equity-accounted investee is no longer equity accounted.
5.13 Financial instruments
A. Recognition and initial measurement
Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities
are initially recognized when the Group and the Company becomes a party to the contractual provisions of the
instrument.
A financial asset (unless it is a trade receivable without a significant financing component that is initially measured
at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are
directly attributable to its acquisition. A trade receivable without a significant financing component is initially
measured at the transaction price.
B. Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at:
• amortized cost; FVOCI
• debt investment; FVOCI
• equity investment
• or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition, unless the Group and the Company
changes its business model for managing financial assets, in which case all affected financial assets are reclassified
on the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as
at FVTPL:
• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group and the Company may
irrevocably elect to present subsequent changes in the investment’s fair value in OCI. This election is made on an
investment-by investment basis.
All financial assets (except derivatives held for hedging purposes) not classified as measured at amortised cost or
FVOCI as described above are measured at FVTPL. On initial recognition, the Group and the Company may
irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or
at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise
arise.
Annual Financial Report of 31st December 2023
96
Financial assets – Subsequent measurement and gains and losses:
Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss. Financial assets at amortised cost These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are 96recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss. Debt investments at FVOCI These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. Equity investments at FVOCI These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.Financial liabilities
Financial liabilities are classified as measured at amortised cost. All financial liabilities (except derivatives held for
hedging purposes) are subsequently measured at amortised cost using the effective interest method. Interest
expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is
also recognized in profit or loss.
C. Derecognition
Financial assets
The Group and the Company derecognize a financial asset when:
• the contractual rights to the cash flows from the financial asset expire; or
• it transfers the rights to receive the contractual cash flows in a transaction:
- in which substantially all of the risks and rewards of ownership of the financial asset are transferred; or
- in which the Group and the Company neither transfers nor retains substantially all of the risks and rewards
of ownership and it does not retain control of the financial asset.
Annual Financial Report of 31st December 2023
97
Financial liabilities
The Group and the Company recognized a financial liability when its contractual obligations are discharged or
cancelled or expire. Also, recognized a financial liability when its terms are modified and the cash flows of the
modified liability are substantially different, in which case a new financial liability based on the modified terms is
recognized at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the
consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
D. Offsetting
Financial assets and financial liabilities are offset, and the net amount presented in the Consolidated Statement of
Financial Position when, and only when, the Group and the Company currently have a legally enforceable right to
set off the amounts and they intend either to settle them on a net basis or to realise the asset and settle the liability
simultaneously.
E. Derivatives and hedge accounting
The Group and the Company hold derivative financial instruments in order to cover risks arising from changes in
prices of metals, fluctuations of foreign exchange rates, changes in interest rates on borrowings and gas. Derivatives
are initially measured at fair value; any directly attributable transaction costs are recognized in profit or loss as
incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally
recognized in profit or loss, unless the instrument qualifies for cash flow hedge accounting.
i. Fair value hedge
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognized in the
Consolidated Statement of Profit or Loss, along with any changes in the fair value of the hedged asset or liability
that are attributable to the hedged risk.
ii. Cash flow hedge
The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognized in the
“Hedging reserve”. Any ineffective proportion is recognized immediately in profit or loss. The amounts recognized
in the “Hedging reserve” are reclassified to the Consolidated Statement of Profit or Loss when the hedged items
affect profit or loss. When a hedge item matures or is sold or when the hedge no longer meets the hedge accounting
criteria, hedge accounting is discontinued prospectively, amounts recorded in “Hedging reserve” the profits and
losses accrued to “Equity” remain as a reserve and are reclassified to profit or loss when the hedged asset affects
profit or loss. In the case of a hedge on a forecast future transaction which is no longer expected to occur, amounts
recorded in “Hedging reserve” are reclassified to profit and loss.
When hedge accounting for cash flows hedges is discontinued, the amount that has been accumulated in the
hedging reserve remains in equity until, for a hedge of a transaction resulting in the recognition of a non-financial
item, it is reclassified to profit and loss in the same period or periods as the hedged expected future cash flows.
If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated in
the hedging reserve and the cost of hedging reserve are immediately reclassified to profit and loss.
Annual Financial Report of 31st December 2023
98
Power Purchase Agreement
The Group and the Company first assesses Power Purchase Agreements (PPAs) and the related Green certificates
of origin (GoOs) contracts, following the requirements of IFRS 10, IFRS 11 or IAS 28, to conclude whether there is a
control, joint control or a significant influence over the underlying renewable facilities and if not, then the
requirements of IFRS 16 for lease recognition are considered. When the outcome of the above assessment is that
the Group neither controls, joint controls or exercises significant influence nor leases the underlying facilities, then
such agreements are accounted for as derivative financial instruments to the extent that the criteria for exemption
from IFRS 9 scope as own-use contracts are not met.
Accordingly, where the agreements to deliver non-financial items (e.g. electricity, GoOs) are in accordance with the
expected purchase requirements of the Group, the own-use criterion of IFRS 9 is met and these are accounted for
as executory contracts. Thereafter, the executory agreements are further assessed whether they contain
embedded derivatives which meet IFRS 9 requirements to be accounted for separately from their host contract.
5.14 Share capital
Shareholder’s equity is composed of ordinary shares. Incremental costs directly attributable to the issue of ordinary
shares are recognized as a deduction from equity. Income tax relating to transaction costs of an equity transaction
is accounted in equity.
5.15 Provisions
Provisions are recognized when the Group has a present legal or constructive obligation which will probably
demand an outflow of resources for its settlement. In addition, the amount of this obligation should be reliably
measurable. Provisions are re-examined on each balance sheet date and, if it is likely that there will no longer be
an outflow of resources to settle the obligations, the provisions are reversed. Provisions are used only for the
purpose for which they were originally created. No provisions are recognized for future losses. Contingent assets
and contingent liabilities are not recognized in the financial statements.
When time value of money is significant, provisions are measured at their present value of the costs expected to
be incurred in order to settle the liability, using a pre-tax interest rate as a discount rate, reflecting current market
estimates for time value of money and other associated risks. The increase of provision-liability over time is
recognized as a financial expense.
5.16 Impairment
A. Non-derivative financial assets
The Group and the Company recognized loss allowances for expected credit losses (ECLs) on:
• financial assets measured at amortised cost; and
• trade recevables
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of trade receivables
and contract assets.
Group considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations in full,
without recourse by Group’s companies to actions such as recognized security (if any is held).
The maximum period considered when estimating ECLs is the maximum contractual period over which the Group’s
companies are exposed to credit risk.
Annual Financial Report of 31st December 2023
99
For loans provided to related parties measured to amortized cost the Group and the Company recognize the ECLs
based on the assessment concerning the increase in credit risk and the probability of default of the counterparty
and any possible loss allowance may occur concerning the default.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash
shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash
flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of
the assets. Impairment losses related to trade and other receivables, including contract assets, are presented
separately in the statement of profit or loss and OCI.
Write-off
The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of
recovering a financial asset in its entirety or a portion thereof. Group’s subsidiaries make an assessment on an
individual basis with respect to the timing and amount of write-off based on whether there is a reasonable
expectation of recovery. The Group and the Company expect no significant recovery from the amount written off.
However, financial assets that are written off could still be subject to enforcement activities in order to comply with
the Group’s procedures for recovery of amounts due.
B. Non-financial assets
At each reporting date, the Group and the Company review the carrying amounts of their non-financial assets
(other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any
such indication exists, then the asset’s recoverable amount is estimated. Goodwill and intangible assets with
indefinite useful life is tested annually for impairment.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows
from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from
104 a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies
of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value
in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate
that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.
An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.
Impairment losses are recognized in profit or loss under “Other expenses”. They are allocated first to reduce the
carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets
in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed.
For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or recognized, if no impairment loss
had been recognized.
Annual Financial Report of 31st December 2023
100
5.17 Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group
uses the definition of a lease in IFRS 16.
The Group and the Company as a lessee
The Group and the Company recognized a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted
for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an
estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on
which it is located, less any lease incentives received.
Subsequently they are measured at cost less any accumulated depreciation and impairment losses and adjusted for
certain remeasurements of the lease liability. The right-of-use asset is depreciated using the straight-line method
from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying
asset to the Group by the end of the lease term or the cost of the right-of-use asset reflects that the Group will
exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the
underlying asset, which is determined on the same basis as those of property and equipment.
The lease liability Is initially measured at the present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable ;
• variable lease payment that are based on an index or a rate ;
• amounts expected to be payable by the lessee under residual value guarantees ;
• the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
• payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease
payment made. It is remeasured if there is a modification that is not accounted for as a separate lease; when there
is a change in future lease payments arising from a change in an index or rate; a change in the estimate of the
amount expected to be payable under a residual value guarantee; and changes in the assessment of whether a
purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not
to be exercised.
Lease liabilities and right-of-use assets are presented separately in the statement of financial position.
The Group and the Company have elected to present interest paid related to lease liabilities in the Consolidated
Statement of Cash Flows, within the line “Interest charges & related expenses paid” in operating activities.
The Group and the Company as a lessor
Leasing contracts in which the Group is a lessor are classified as financial or operating. The lease contracts of the
Group related exclusively to operating leases. Income from operating leases is recognized in the statement of profit
and loss on a straight line during the lease agreement.
5.18 Earnings per share
The Group presents both basic and diluted earnings per share for its common shares. The basic earnings per share
are calculated by dividing the profits or loss attributable to holders of common shares by the weighted average
number of outstanding common shares during the period.
Annual Financial Report of 31st December 2023
101
Diluted earnings per share are determined by adjusting the profit or loss attributable to holders of common shares
and the weighted average number of outstanding common shares by the effect of all diluted eventual common
shares consisting of convertible notes and shares with options granted to the staff.
5.19 Fair value measurement
“Fair value” is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date in the principal or, in its absence, the most advantageous
market to which the Group has access at that date. The fair value of a liability reflects its non-performance risk.
A number of Group’s accounting policies and disclosures require the measurement of fair values, for both financial
and non-financial assets and liabilities.
When one is available, the Group measures the fair value of an instrument using the quoted price in an active
market for that instrument. A market is regarded as “active” if transactions for the asset or liability take place with
sufficient frequency and volume to provide pricing information on an ongoing basis.
If there is no quoted price in an active market, then the Group uses valuation techniques that maximise the use of
relevant observable inputs and
101
ulfilme the use of unobservable inputs. The chosen valuation technique
incorporates all of the factors that market participants would take into account in pricing a transaction.
If an asset or a liability measured at fair value has a bid price and an ask price, then the Group measures assets and
long positions at a bid price and liabilities and short positions at an ask price. The best evidence of the fair value of
a financial instrument on initial recognition is normally the transaction price – i.e. the fair value of the consideration
given or received. If the Group determines that the fair value on initial recognition differs from the transaction price
and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor
based on a valuation technique for which any unobservable inputs are judged to be insignificant in relation to the
measurement, then the financial instrument is initially measured at fair value, adjusted to defer the difference
between the fair value on initial recognition and the transaction price. Subsequently, that difference is recognized
in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly
supported by observable market data or the transaction is closed out.
5.20 Restatement of Consolidated profit or loss statement
GROUP Amounts in EUR thousand As previously reported Adjustments As restated 2022 Revenue 3,714,015 - 3,714,015 Cost of sales (3,361,692) 12,261 (3,349,431) Gross profit 352,323 12,261 364,584 Other income 34,956 (2,309) 32,647 Selling and distribution expenses (34,441) (7,226) (41,667) Administrative expenses (65,496) (2,726) (68,222) Reversal of / (Impairment loss) on receivables (1,626) - (1,626) and contract assets Other expenses (29,467) - (29,467) Operating result 256,250 - 256,250 Net finance costs (41,537) - (41,537) Profit/Loss (-) before tax 199,823 - 199,823 Profit/(Loss) for the year 161,889 - 161,889
Annual Financial Report of 31st December 2023
102
COMPANY Amounts in EUR thousand As previously reported Adjustments As restated 2022 Revenue 2,616,208 - 2,616,208 Cost of sales (2,385,552) 11,711 (2,373,841) Gross profit 230,656 11,711 242,367 Other income 22,418 (2,309) 20,109 Selling and distribution expenses (13,679) (6,651) (20,330) Administrative expenses (39,241) (2,751) (41,992) Reversal of / (Impairment loss) on receivables and (5,271) - (5,271) contract assets Other expenses (20,275) - (20,275) Operating result 174,608 - 174,608 Net finance costs (10,669) (10,669) Profit/Loss (-) before tax 129,980 - 129,980 Profit/(Loss) for the year 111,495 - 111,495
GROUP 2022 Amounts in EUR thousand As previously reported Adjustments As restated Grants 391 391 Rental income 359 359 Income from fees 3,800 3,800 Income from costs recharged 1,081 1,081 Indemnities and income from claims 171 171 Gain from disposal of property, plant & equipment 2,127 2,127 Amortisation of grants 1,673 1,673 Foreign Exchange Gains 19,219 19,219 6,135 (2,309) 3,826 Other Other Income 34,956 (2,309) 32,647
COMPANY 2022 Amounts in EUR thousand As previously reported Adjustments As restated Grants 263 263 Rental income 306 306 Income from fees 543 543 Income from costs recharged 2,933 2,933 Indemnities and income from claims 153 153 Gain from disposal of property, plant & equipment 1,930 1,930 Amortisation of grants 1,254 1,254 Foreign Exchange Gains 10,216 10,216 4,819 (2,309) 2,510 Other 22,418 (2,309) 20,108 Other Income
Annual Financial Report of 31st December 2023
103
6. Operating segments
An operating segment is based on the structure of the information to the Group’s management and internal
reporting system. The Group is organized into business centres and business units based on the production of
copper and aluminium products. In particular, it has two reportable operating segments. The operating segments
of the Group are as follows:
• Copper products: this segment produces and sells copper and copper alloys rolled and extruded products.
• Aluminium products: the aluminium segment produces and sell a wide range of aluminium products and
their alloys.
a-EBITDA is determined as the significant key performance indicator of the operational profitability of the Group
and the Company. For further details please refer to note 37.
The segment analysis for the fiscal year 2023 considered as follows:
2023 Reportable segments Amounts in EUR thousand Aluminium Copper Total Segment revenue 1,624,589 1,668,949 3,293,538 Inter-segment revenue (26) (91) (117) Total Revenue 1,624,562 1,668,858 3,293,421 Cost of Sales (1,507,876) (1,572,235) (3,080,111) Gross profit 116,686 96,624 213,309 Other Income 15,799 9,493 25,291 Selling and Distribution expenses (23,568) (11,771) (35,338) Administrative expenses (42,275) (26,746) (69,022) Impairment loss on receivables and contract assets (5,787) (2,007) (7,793) Other Expenses (14,969) (8,388) (23,357) Operating profit / (loss) 45,886 57,204 103,090 Finance Income 1,753 1,723 3,476 Finance Costs (33,291) (23,306) (56,596) Dividends 300 134 434 Net Finance income / (cost) (31,238) (21,448) (52,686) Share of profit/(loss) of equity accounted investees, net of tax 1,148 (8,540) (7,392) Impairment in participations and Goodwill (14) (40) (54) Profit / (Loss) before taxes 15,782 27,176 42,958 Income tax and deferred tax expense (6,909) (3,204) (10,113) Profit/Loss (-) from continuing operations 8,874 23,972 32,846 Depreciation and amortisation (51,127) (23,708) (74,835) Total assets 1,474,577 858,874 2,333,450 Total liabilities 880,242 490,827 1,371,068 Capital expenditure 57,949 26,093 84,041
Annual Financial Report of 31st December 2023
104
2022* Reportable segments Amounts in EUR thousand Copper Total Copper Segment revenue 1,927,467 1,786,697 3,714,164 Inter-segment revenue (15) (135) (149) Total Revenue 1,927,453 1,786,562 3,714,015 Cost of Sales (1,657,801) (1,691,630) (3,349,431) Gross profit 269,652 94,932 364,584 Other Income 19,609 13,038 32,647 Selling and Distribution expenses (31,321) (10,345) (41,667) Administrative expenses (42,830) (25,392) (68,221) Impairment loss on receivables and contract assets (729) (897) (1,626) Other Expenses (14,713) (14,754) (29,467) Operating profit / (loss) 199,667 56,583 256,250 Finance Income 289 245 535 Finance Costs (27,010) (15,199) (42,210) Dividends (45) 183 138 Net Finance income / (cost) (26,766) (14,772) (41,537) Share of profit/(loss) of equity accounted investees, net of tax 1,345 (4,049) (2,704) Impairment in participations and Goodwill (2,367) (9,819) (12,186) Profit / (Loss) before taxes 171,879 27,944 199,823 Income tax and deferred tax expense (35,645) (2,289) (37,934) Profit/Loss (-) from continuing operations 136,235 25,655 161,889 (49,211) (22,376) (71,587) Depreciation and amortisation Total assets 1,665,672 868,156 2,533,828 Total liabilities 1,013,746 541,711 1,555,457 Capital expenditure 178,380 14,240 192,620
* See note 5.20 for details regarding the restatement
Annual Financial Report of 31st December 2023
105
The operating segments are mostly managed centrally, but the greater part of sales are overseas. Sales and non-
current assets of the Group based on the geographical allocation are presented as follows:
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Revenue Greece 201,900 281,607 359,703 454,066 Other European Union countries 2,173,551 2,296,064 1,377,137 1,419,974 UK 198,287 248,789 136,423 194,754 Other European countries 276,878 335,204 191,776 228,866 Asia 132,255 177,483 55,912 91,797 Americas 238,553 310,820 158,965 193,945 Αfrica 64,098 50,395 35,244 23,989 Oceania 7,900 13,652 2,739 8,816 Total 3,293,421 3,714,015 2,317,901 2,616,208
The Group and the Company are mainly operate in Greece and Bulgaria. The below information of the Group’s and
Company’s assets present the Geographic allocation of these assets.
Amounts in EUR thousand GROUP COMPANY Property, Plant & Equipment 2023 2022 2023 2022 Greece 916,407 900,329 789,551 769,171 International 135,325 131,349 - - Total 1,051,732 1,031,678 789,551 769,171 Right of use assets Greece 8,980 17,409 5,531 15,930 International 1,414 1,218 - - Total 10,394 18,627 5,531 15,930 Intangible assets and goodwill Greece 75,919 75,090 70,049 70,130 International 1,157 2,338 - - Total 77,076 77,428 70,049 70,130 Investment property Greece 22,731 20,840 32,163 33,946 Total 22,731 20,840 32,163 33,946
Annual Financial Report of 31st December 2023
106
Investments in Property, Plant & 2023 2022 2023 2022 Equipment Greece 76,577 192,165 62,421 167,130 International 14,949 3,474 - - Total 91,527 195,638 62,421 167,130
7. Sales
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Sale of goods 943,779 974,285 762,799 830,523 Metal Sales 2,344,543 2,734,956 1,551,671 1,782,857 Rendering of services 5,099 4,774 3,430 2,827 Total 3,293,421 3,714,015 2,317,901 2,616,208
Consolidated and corporate turnover for 2023 decreased compared to last year mainly due to the decline in LME
metals prices in international markets.
8. Other income and expenses
GROUP COMPANY 2022 2022 2023 2023 Amounts in EUR thousand Restated* Restated* Grants 583 391 513 263 Rental income 401 359 363 306 Income from fees 889 3,800 488 543 Income from costs recharged 822 1,081 2,785 2,933 Indemnities and income from claims 2,325 171 1,742 153 Gain from disposal of property, plant & equipment 266 2,127 190 1,930 Income from reversal of provisions 36 - - - Income from reversal of impairment of fixed assets 176 - 176 - Amortisation of grants 1,535 1,673 1,146 1,254 Foreign Exchange Gains 12,476 19,219 7,017 10,216 Other 5,783 3,826 3,974 2,510 Other Income 25,291 32,647 18,394 20,108
Amounts in EUR thousand 2023 2022 2023 2022 Loss from disposal of Property, plant & equipment 2 23 2 - Loss from write-offs of Property, plant & equipment 248 1,881 15 456 Loss from sale of investments (note 14) 2,589 - - - Loss from valuation of financial instruments (Note 15) 3,588 -4,745- Impairment of Fixed assets 1,362 6,794 1,2826,357 Other penalties, Indemnities and claims 19 258 13 27 Depreciation and amortisation 1,109 543 2,093 2,006 Foreign Exchange Losses 12,305 17,356 6,398 9,408 Other 2,136 2,614 1,453 2,020 Other expense 23,357 29,467 16,000 20,275
Annual Financial Report of 31st December 2023
107
9. Expenses by nature
The breakdown of expenses by nature was as follows:
GROUP COMPANY 2022 2022 Amounts in EUR thousand 2023 2023 Restated* Restated* Cost of inventories recognized as an expense 158,564 125,663 230,711 241,035 Metal Cost 2,394,067 2,693,176 1,590,246 1,752,719 Employee benefits 167,700 168,148 102,183 98,841 Energy 107,039 112,436 75,868 57,182 Depreciation and amortisation 73,726 71,044 50,447 45,360 Taxes – duties 2,583 18,046 505 13,811 Insurance expenses 12,008 11,565 8,144 7,561 Rental fees 3,961 3,501 2,752 1,901 Transportation costs for goods and materials 76,487 93,670 52,871 64,004 Promotion & advertising 3,827 4,841 1,642 2,235 Third party fees and benefits 86,759 79,293 112,689 112,202 (Gains)/losses from derivatives (2,637) (12,864) 326 (10,973) Production tools 12,970 11,685 4,723 4,473 Maintenance expenses 39,485 32,954 28,929 22,699 Travel expenses 7,345 6,281 5,033 4,444 Storage and packing 6,780 6,989 1,508 1,647 Commissions 19,650 17,282 12,724 10,389 Foreign exchange differences 10 - - - BOD Fees 2,095 2,586 520 740 Shared utility expenses 681 563 1 1 Royalties 815 654 661 550 Other expenses 10,558 11,807 4,159 5,341 Total 3,184,471 3,459,319 2,286,642 2,436,163
The analysis of the above expenses as presented in the statement of profit and loss is as follows:
GROUP COMPANY 2022 2022 2023 2023 Amounts in EUR thousand Restated* Restated* Cost of sales 3,080,111 3,349,431 2,223,622 2,373,841 Selling and Distribution expenses 35,338 41,667 20,342 20,330 Administrative expenses 69,022 68,221 42,678 41,992 Total 3,184,471 3,459,319 2,286,642 2,436,163
* See note 5.20 for details regarding the restatement
Annual Financial Report of 31st December 2023
108
For R&D expenses disbursed the amounts are below:
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Aluminium 5,230 6,577 4,632 5,154 Copper 4,770 3,620 4,770 3,620 Total 10,000 10,197 9,402 8,773
The cost of employees’ benefits can be broken down as follows:
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Employee remuneration & expenses 126,210 123,878 76,334 71,098 Social security expenses 25,375 26,261 15,537 15,090 Defined benefit plan expenses 3,324 2,290 1,941 1,480 Other 12,858 15,775 8,371 11,173 Total 167,767 168,204 102,183 98,841
In the above employee benefits are included capitalized employee benefits in projects under construction.
The number of employees of the Company at the end of the current year was: 1,845 (2022: 1,850) and as for the
Group: 3,400 (2022: 3,707).
10. Finance income and cost
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Finance income Interest income 3,476 535 3,580 646 3,476 535 3,580 646 Finance cost Interest expenses (54,195) (37,765) (43,311) (34,036) Other Finance Expense (3,917) (4,445) - - Loss from derivatives 1,516 - - - (56,596) (42,210) (43,311) (34,036) Net finance income – cost (53,121) (41,675) (39,731) (33,391)
Annual Financial Report of 31st December 2023
109
11. Property, plant and equipment
GROUP Fixed assets Fields – Transportation Furniture & other Buildings Machinery under Total Plots equipment equipment Amounts in EUR thousand construction Cost Balance as at 1 January 2022 116,739 271,391 1,136,129 22,238 29,396 152,062 1,727,955 Effect of movement in exchange rates - - (2) - - - (2) Additions 18,298 1,095 9,402 1,709 1,870 140,432 172,806 Disposals - (1,148) (1,683) (103) (326) (13,980) (17,238) Write offs - (536) (3,242) (47) (525) (554) (4,904) Other reclassifications - 35,216 155,039 51 682 (191,645) (656) Reclassification from Investment Property - (5,861) (18,368) (342) (1,550) (2,924) (29,045) Balance as at 31 December 2022 135,036 300,157 1,277,276 23,509 29,548 83,391 1,848,916 Accumulated depreciation Balance as at 1 January 2022 - (123,225) (594,405) (17,160) (25,207) (274) (760,271) Effect of movement in exchange rates - - 2 - - - 2 Depreciation of the period - (12,755) (50,575) (1,180) (1,838) - (66,348) Disposals - 517 1,137 46 312 - 2,012 Write offs - - 2,455 47 522 - 3,023 Impairment (2,507) (925) (3,362) - (6,794) Reclassification from Investment Property - 2,723 7,285 169 961 - 11,137 Balance as at 31 December 2022 (2,507) (133,664) (637,463) (18,080) (25,250) (274) (817,238)
Annual Financial Report of 31st December 2023
110
Fixed assets Fields – Transportation Furniture & other Buildings Machinery under Total Plots equipment equipment Amounts in EUR thousand construction Cost Balance at 1 January 2023 135,036 300,157 1,277,276 23,509 29,548 83,391 1,848,916 Effect of movement in exchange rates - - - - - (4) (4) Additions 251 1,481 4,867 862 2,668 73,599 83,729 Disposals - - (321) (95) (58) (571) (1,045) Reclassifications to investment Property - (3,505) - - - - (3,505) Write offs - (2,102) (8,492) (1,445) (4,918) (21) (16,978) Other Reclassifications - 17,792 70,424 125 1,521 (90,278) (415) Reclassifications from Right of use of assets - - 17,470 - - - 17,470 Reclassifications to Assets held for sale - (89) - - (153) - (242) Balance at 31 December 2023 135,287 313,734 1,361,223 22,956 28,609 66,117 1,927,926 Accumulated depreciation and impairment losses Balance at 1 January 2023 (2,507) (133,664) (637,463) (18,080) (25,250) (274) (817,238) Depreciation - (13,703) (53,563) (1,285) (1,910) - (70,461) Disposals - - 183 83 31 - 297 Reclassifications to investment Property - 876 - - - - 876 Write offs - 2,103 8,321 1,445 4,918 - 16,786 (1,330) - (4) - (1,362) Impairment loss - (28) Reversal of Impairment - 40 135 - - - 175 Reclassifications from Right of use of assets - - (5,271) - - - (5,271) Reclassifications to Assets held for sale - 1 - - 4 - 5 (2,507) (144,375) (688,989) (17,837) (22,211) (274) (876,193) Balance at 31 December 2023 Carrying amounts At 1 January 2022 116,739 148,166 541,725 5,078 4,189 151,787 967,684 At 31 December 2023 132,529 166,493 639,812 5,429 4,298 83,117 1,031,678 132,780 169,358 672,234 5,119 6,398 65,843 1,051,732 At 31 December 2023
Annual Financial Report of 31st December 2023
111
COMPANY Fixed assets Fields – Transportation Furniture & other Buildings Machinery under Total Plots equipment equipment Amounts in EUR thousand construction Cost Balance at 1 January 2022 65,303 193,859 827,969 17,831 18,173 133,842 1,256,976 Additions 12,545 496 4,561 1,256 1,041 128,317 148,216 Disposals - - (288) (21) (49) (13,919) (14,277) Write offs - - - - - (447) (447) Other Reclassifications - 33,619 136,664 23 220 (170,881) (355) Balance at 31 December 2022 77,849 227,974 968,905 19,089 19,385 76,912 1,390,114 Accumulated depreciation and impairment losses Balance at 1 January 2022 - (83,562) (457,069) (14,461) (16,304) - (571,395) Depreciation - (8,231) (33,037) (895) (1,095) - (43,257) Disposals - - 41 - 36 - 77 Write offs - (9) - - (1) - (10) Impairment loss (2,507) (916) (2,934) - - - (6,357) Balance at 31 December 2022 (2,507) (92,717) (492,999) (15,355) (17,364) - (620,942)
Annual Financial Report of 31st December 2023
112
Fixed assets Fields – Transportation Furniture & Buildings Machinery under Total Plots equipment other equipment Amounts in EUR thousand construction Cost Balance at 1 January 2023 77,849 227,974 968,905 19,089 19,385 76,912 1,390,114 Additions 191 787 2,050 395 1,589 53,925 58,937 Disposals - - (11) (37) (31) (571) (649) Write offs - (2,102) (6,413) (1,445) (4,659) (21) (14,640) Other Reclassifications - 16,232 58,249 102 790 (75,700) (328) Reclassifications from Right of use of assets - - 17,470 - - - 17,470 Balance at 31 December 2023 78,040 242,892 1,040,249 18,104 17,074 54,544 1,450,904 Accumulated depreciation and impairment losses Balance at 1 January 2023 (2,507) (92,717) (492,999) (15,355) (17,364) - (620,942) Depreciation - (9,368) (37,126) (995) (1,204) - (48,693) Disposals - - 6 24 5 - 36 Write offs - 2,103 6,418 1,445 4,659 - 14,625 Impairment loss - (28) (1,253) - - - (1,282) Reversal of Impairment - 40 135 - - - 175 Reclassifications from Right of use of assets - - (5,271) - - - (5,271) Balance at 31 December 2023 (2,507) (99,970) (530,090) (14,882) (13,904) - (661,353) Carrying amounts At 1 January 2022 65,303 110,297 370,900 3,370 1,869 133,842 685,581 At 31 December 2022 75,342 135,257 475,906 3,734 2,021 76,912 769,171 At 31 December 2023 75,533 142,922 510,159 3,223 3,170 54,544 789,551
Annual Financial Report of 31st December 2023
113
(a) Pledges on Fixed Assets
There are pledges upon fixed assets related to the security of loans received the Group and the Company (see note 23).
(b) Assets under Construction
The caption “Assets under construction” includes machinery the installation of which has not been completed as at December 31,
2023. The completion of these assets is estimated to be completed till the end of the upcoming year.
(c) Capitalization of Borrowing costs
For the fixed asset of the Group as well as the company Euro € 1,8 million was capitalized in 2023 (2022: € 255 thousands), which
stands for the borrowing cost of loans which were drawn for the funding of those assets. The discount rate used is 3,58%.
(d) Other reclassifications
Net amount of reclassifications is related to intangible assets under construction that were reclassified during the year to
intangible assets.
(e) Reclassifications to Assets held for sale
Reclassifications to assets held for sale are tangible assets related to the Partnership Agreement of the subsidiary ELVAL
COLOUR. Pursuant to the provision of IFRS 5 these assets are reclassified to “Assets held for sale”. For more information refer
to note 38.
(f) Reclassifications to Right of Use of Assets
In addition, in line “Reclassifications to Right of Use of Assets” of the Group and the Company have been tangible assets with
carrying amount of Euro 17,5 million and accumulated depreciation of Euro 5,3 million, which has been reclassified to Property,
Plant and Equipment as a result of the early prepayment of a sale and lease back agreement.
(g) Reclassifiacations to investment property
During the fiscal year, Group’s buildings have been reclassified to investment property, as ceased to be own-used.
(h) Additions
The caption “Additions” includes mainly investments to tangible assets related to the investment program of Aluminium
division of the Company and the investment programm of the subsidiary Sofia Med, with the aim to increase the production
capacity and develop the product portfolio.
(i) Impairments
During 2023, the Company and the Group conducted a review of the operational performance of their assets, which
resulted in changes to the expected useful life of specific machinery. For this reason, it proceeded with impairments
amounting to Euro 1.4 million.
Annual Financial Report of 31st December 2023
114
(j) Change in the useful life
During 2023, the Company and the Group conducted a review of the operational performance of the assets, which
resulted in changes in the expected useful life of specific building and machinery involved in the production process
of the Company's Aluminium division. In the context of the development and implementation of the strategic plan
of the Company and the Group by the Management, frequent maintenance and upgrade work are important factors
in the continued efficient operation of the assets, which in turn positively affect future benefits (future economic
benefits) that will result from the flows of the existing equipment. As a consequence of the above, the expected
useful life of specific buildings was extended by an average of 4 years and the useful life of specific machinery was
extended by an average of 5 years. In implementing the changes described above, the ranges of useful lives as
described in the relevant accounting policy remained unaffected. The increase in the useful life resulted in the
annual depreciation being reduced by approximately € 1.4 million in 2023. The application of the change in the
useful lives of the assets was made according to the provisions of IAS 8, par. 36 within the year 2023 and
progressively.
(k) Disposals
The disposals related mainly to tangible assets that have already been completely impaired.
Annual Financial Report of 31st December 2023
115
12. Intangible assets
GROUP Development Trademarks Goodwill Software Other Total Amounts in EUR thousand costs and licenses Cost Balance as at 1 January 2022 41,811 860 51,812 21,818 211 116,512 Additions - - - 1,675 - 1,675 Disposals - - - (67) - (67) Write offs - - - (12) - (12) Reclassifications to Assets held for (14,652) (884) (1,337) (789) - (17,662) sale Reclassifications - 103 - 487 127 718 Balance at 31 December 2022 27,158 80 50,475 23,113 338 101,164 Accumulated amortisation and impairment losses Balance at 1 January 2022 (5,524) (169) (621) (20,183) (86) (26,583) Amortisation - (96) (297) (955) (23) (1,371) Disposals - - - 67 - 67 Write offs - - - 12 - 12 Impairment loss (5,070) - - - - (5,070) Reclassifications to Assets held for 7,891 217 509 591 - 9,209 sale Balance at 31 December 2022 (2,703) (48) (408) (20,469) (109) (23,737) Development Trademarks Goodwill Software Other Total Amounts in EUR thousand costs and licenses Balance as at 1 January 2023 27,158 80 50,475 23,113 338 101,164 Additions - - 5 307 - 312 Disposals - - - (3) - (3) Write-offs - - - (1) - (1) Reclassifications to Assets held for - - (5) (6) - (11) sale Reclassifications - - 14 401 - 416 Balance at 31 December 2023 27,158 80 50,489 23,811 338 101,876 Accumulated amortisation and impairment losses Balance as at January 1 2023 (2,703) (48) (408) (20,469) (109) (23,737) Amortisation - (8) (67) (944) (49) (1,068) Disposals - - - 3 - 3 Write-offs - - - 1 - 1 Balance as at 31 December 2023 (2,703) (55) (476) (21,408) (158) (24,800) Carrying amounts At 1 January 2022 36,286 691 51,192 1,635 125 89,929 At 31 December 2022 24,456 32 50,067 2,645 228 77,428 At 31 December 2023 24,456 24 50,014 2,403 180 77,076
Annual Financial Report of 31st December 2023
116
In respect of the goodwill of €27.2 million as well as the trade name and client relationships of Euro 46.7 million,
an impairment test was performed to test for any indication of impairment of the CGU of the copper segment using
the value in use method based on a five-year business plan, the results of which indicated no need for impairment.
The basic assumptions of the test were as follows:
• Risk-free rate: 3,02%
• Market risk premium: 5,21%
• Expected income tax rate: 22%
• Unlevered beta: 1,03
• WACC 8,47%
• Growth rate (g): 1,50%.
The expected fair value will be increased (decreased) by approximately €13 million, if the expected growth of the
market increases (decreases) by 0.5%. In addition, it should be noted that the expected fair value will be increased
(decreased) by €2.7 million if the expected cash flows increase (decrease) by 1%.
An increase in WACC caused by the aforementioned factors by 0.25% basis units does change the discounted cash
flows and, as a consequence, the fair value by €10,4 and not significantly enough to cause an impairment.
Intangible assets, as trade name and client relationships amounted to Euro 46.7 million, do not have a legal or similar
maturity as to the creation of cash flows. As a result, the useful life is indefinite. Software and other intangible assets
have definite useful life.
COMPANY Trademarks Goodwill Software Total Amounts in EUR thousand and licenses Cost Balance as at 1 January 2022 22,118 47,370 16,501 85,989 Additions - - 131 131 Disposals - - (67) (67) Other reclassifications - - 355 355 Balance at 31 December 2022 22,118 47,370 16,920 86,408 Accumulated amortisation Balance at 1 January 2022 - (268) (15,392) (15,660) Amortisation - (67) (618) (685) Mergers and absorption - - 67 67 Balance at 31 December 2022 - (335) (15,943) (16,278)
Annual Financial Report of 31st December 2023
117
Trademarks Goodwill Software Total Amounts in EUR thousand and licenses Cost Balance as at 1 January 2023 22,118 47,370 16,920 86,408 Additions - - 185 185 Disposals - - (3) (3) Other reclassifications - - 328 328 Balance at 31 December 2023 22,118 47,370 17,429 86,917 Accumulated amortisation Balance at 1 January 2023 - (335) (15,943) (16,278) Amortisation - (67) (526) (593) Write offs - - 3 3 Balance at 31 December 2023 - (402) (16,466) (16,868) Carrying amounts At 1 January 2022 22,118 47,102 1,109 70,329 At 31 December 2022 22,118 47,035 977 70,130 At 31 December 2023 22,118 46,968 963 70,049
Regarding goodwill of Euro 22,2 million, an impairment test has been examined related to the CGU of Copper division
of the Company based on the aforementioned assumptions.
Amortisation for trademarks and patents is included in the item "Cost of Sales" in the "Income Statement".
13. Investment property
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Balance at 1 January 20,840 3,244 33,946 17,499 Additions - 18,139 - 18,139 Reclassifications to PPE 2,629 - - - Depreciation (739) (543) (1,783) (1,692) Balance at 31 December 22,731 20,840 32,163 33,946
Investment properties include a number of properties and plots of land that the Group and the Company either
intend to lease or sell to third parties in the near future, as circumstances permit. The Company's investment
properties are rented to Group companies. These properties in the Consolidated Financial Statements are
presented under Propery, Plant and Equipment.
During 2023, the Group reclassified fixed assets which are no longer leased to Group companies of Euro 2.7 million
from PPE to investment property.
Annual Financial Report of 31st December 2023
118
In addition, the Group and the Company conducted an assessment of the fair value of the above properties in
accordance with the provisions of IAS 40. The assessment of the fair value of the above properties was carried out
with the assessment reports from recognized independent valuators, who possess both the necessary experience
as well as the specialized knowledge regarding the measurement of the fair value of real estate in the areas where
the Group's properties are located. The valuation method applied to determine the fair value of the Group's real
estate investments reflects the most efficient and best use of these properties, as determined by the Group's
management, the Comparative Data Method. These observable data were adjusted taking into account the special
characteristics of each property. The properties are classified as level 3 (level 3). The Group and the Company are
not obliged to regularly assess the fair value of fixed assets.
Fair value of the investment property which are included in the reporting line “Investment Property” was as follows:
GROUP Fair Value Property category € ‘000 Industrial Buildings 12,571 Land and Land Plots 10,934 Other property 163 Total 23,669
COMPANY Fair Value Property category € ‘000 Industrial Buildings 28,975 Land and Land Plots 20,115 Other property 163 Total 49,254
At Company level, in addition to the above, industrial properties that are leased in fully consolidated and at Group
level are reclassified to the reference line "Tangible fixed assets". It should be noted that the Company is not
required to perform an annual measurement of the fair value of its investment properties, but receives assessments
at regular intervals to assess whether impairment conditions exist.
14. Investments
Investment in Subsidiaries:
COMPANY Amounts in EUR thousand 2023 2022 Balance at 1 January 244,131 269,353 Additions 4,040 13,120 Share capital reduction (-) (650) - Depreciation (6,540) (11,708) Reclassifications to Held for Sale - (26,634) Total 240,981 244,131
Annual Financial Report of 31st December 2023
119
Following the decision of the General Meeting of the Shareholders of the subsidiary "TECHOR S.A.” dated on
12.01.2023, it was decided the reduction of its share capital by Euro 649,800 with the cancellation of 855,000
common registered voting shares with a nominal value of Euro 0.76 cents per share.
On 07.04.2023, pursuant to the decision nr. ΑΔΑ: ΨΖΣΚ469ΗΛΣ-Β1Μ of the Head of the General Commercial
Register (G.C.R.) Service of the Larissa Chamber of Commerce, which in turn registered to General Registry (GEMI)
with reg. nr. 3544813, the merger by absorption of the subsidiary of ELVALHALCOR with the name “ETEM
Commercial and Industrial Light Metals Societe Anonyme” by the SA company with the name “COSMOS
ALUMINIUM A.E.” has been approved, following the resolutions of the General Meetings of the shareholders of the
merged companies ETEM and COSMOS ALUMINIUM dated on 05.04.2023 and 06.04.2023, respectively, and the
Notarial Merger Agreement nr. 10.585/06.04.2023 of the Notary Public of Larissa Dimitrios V. Nanos.
As a result of the completion of the merger by absorption of ETEM by COSMOS ALUMINIUM, ELVALHALCOR
recorded a loss of Euro 2.6 million that was charged in the consolidated statement of Profit and Loss. In addition,
ELVALHALCOR holds a minority stake of 15% in the share capital of COSMOS ALUMINIUM.
The Group and the Company classified its investment to COSMOS ALUMINIUM as “Other investments”. It is
noteworthy that the investment in ETEM has been previously classified as “Held for sale” at the Company level, as
well as its assets and liabilities at Group level.
Based on the purchase agreement, the shareholders of ELVALHALCOR granted COSMOS ALUMINIUM with a put
option to purchase the remaining outstanding capital stock of COSMOS ALUMINIUM. In addition, COSMOS
ALUMINIUM granted ELVALHALCOR with a put option to sale the remaining outstanding capital stock of COSMOS
ALUMINIUM. The calculation of the purchase price prescribed in the call and put option is based on a predetermined
formula based on the EBITDA of COSMOS ALUMINIUM on the strike date. The exercise period for both options
commenced in 2028 and their term is for six months. Upon the exercise of the aforementioned options, the
shareholders of COSMOS ALUMINIUM will own 100% of outstanding capital stock of COSMOS ALUMINIUM. These
expire in case that the shareholders do not exercise them during the exercise period. These options are recognized
in the consolidated and separate statement of financial position in their fair value and were included in the carrying
amount of the investment in COSMOS ALUMINIUM. The recognized gain arises from their measurement in the fair
value recorded in the consolidated and separate statement of profit and loss into account “Other income”.
The fair value of the put and call options was based on a widely acceptable valuation model methodology
considering the below:
• expected turnover & EBITDA margins of COSMOS ALUMINIUM;
• risk free rate;
• duration period;
• volatility, defined as the range of values for all inputs used in the valuation model;
Following the decision of the extraordinary General Meeting of the Shareholders, dated 10.02.2023, of the fully
owned subsidiary “EPIRUS METALWORKS S.A.” , a share capital increase was decided a) by Euro 235,290.00 paid in
cash withe the issuance of 23,529 new common registered voting shares at par value of Euro 10,00 each and a
premium of Euro 6.36 each, amounted in total to Euro 384.934,44, out of which Euro 149.644,44 related to share
premium and b) by Euro 117,650.00, through capitalization of part of the difference of premium reserves and issue
of 11,765 new common registered voting shares at par value of Euro 10.00 each. The parent company did not
participate in the aforementioned share capital increase. The result of the transaction presented in the statement
of the “Changes in Equity” in line “Change in ownership interests”.
Annual Financial Report of 31st December 2023
120
According to the purchase agreement between the new shareholders of Epirus Metalworks and ElvalHalcor, both
the Group and the Company granted two call options to the new shareholders of Epirus Metalworks to purchase
their ownership interests in Epirus Metalworks, while the new shareholders granted ElvalHalcor two put options to
sell their ownership interests in Epirus Metalworks. These options are presented in their fair value and are classified
as level 3, while are remeasured at each reporting date. The calculation of the purchase price prescribed in the call
and put options is based on a predetermined formula based on the EBITDA while the exercise period is considered
between five to ten years, pursuant to the agreement. In order to calculate the fair value of the above options took
into account the:
• expected turnover & EBITDA margins of Epirus Metalworks;
• risk free rate;
• duration period;
• volatility, defined as the range of values for all inputs used in the valuation model;
At the Company level, taking into account the provisions of IAS 32, the fair value of these options is recognized in
the statement of financial position under liabilities and are included in “Long-term derivatives”, while at the
Consolidated level, according to IFRS 10, the present value of redemption amount of the aforementioned options
was recognized in the statement of financial position as “NCI put Liability”.
According to the decision of the General Meeting of Shareholders of the equity accounted investee named
International Trade S.A., dated on 07.06.2023, a share capital reduction was decided by reducing the nominal value
of its shares by Euro 10.3783 per share. The total amount of reduction was approximately 1.0 million.
According to the decision of the General Meeting of Shareholders of the 100% subsidiary “ELVIOK SA”, a share
capital increase has been decided by Euro 2,000,000 paid in cash with the issue of 200,000 shares with nominal
value Euro 10.00 each.
Information of subsidiaries with significant non-controlling interest presented in the table below:
Amounts in EUR thousand
SOFIA MED 2023 VIOMAL S.A Other Total S.A. Percentage of Non-Controlling Interest 25.00% 10.44% Non-Current Assets 3,388 136,350 Current Assets 7,033 215,919 Non-current Liabilities 400 45,074 Current Liabilities 4,613 101,564 Net Assets 5,408 205,631 Attributable to NCI 1,352 21,468 (55) 22,765 Revenue 21,779 869,216 Profit / (Loss) 755 41,503 Other Comprehensive Income (6) (503) Total Comprehensive Income 749 41,000 Total OCI of NCI 187 4,280 (175) 4,293 Cash-Flows from Operating Activities 1,962 23,663 Cash-Flows from Investing Activities (562) (13,880) Cash-Flows from Financing Activities (1,441) (15,591) Effect on Cash and Cash equivalents (41) (5,808)
Annual Financial Report of 31st December 2023
121
Amounts in EUR thousand
SOFIA MED 2022 VIOMAL S.A Other Total S.A. 25.00% 10.44% Percentage of Non-Controlling Interest Non-Current Assets 3,176 133,272 Current Assets 8,005 236,429 Non-current Liabilities 441 59,274 Current Liabilities 5,180 135,786 Net Assets 5,560 174,642 Attributable to NCI 1,390 18,233 (5,358) 14.264 Revenue 23,208 873,352 Profit / (Loss) 1,280 26,542 Other Comprehensive Income 8 (2,319) Total Comprehensive Income 1,288 24,223 Total OCI of NCI 322 2,529 (488) 2.363 Cash-Flows from Operating Activities 494 26,865 Cash-Flows from Investing Activities (632) (4,799) Cash-Flows from Financing Activities (604) (17,429) Effect on Cash and Cash equivalents (742) 4,638
The movement in the caption of “Investments in Equity – accounted investees” is as follows:
GROUP COMPANY Amounts in EUR thousand 2022 2021 2022 2021 Balance at 1 January 23,057 29,964 12,417 30,417 Additions 11,000 4,250 11,000 4,250 Share in profit / (loss) after taxes (7,392) (2,704) - - Share from OCI after taxes (11) (35) - - Dividends received (-) (2,127) (1,107) - - Foreign exchange differences (72) (196) - - Share capital reduction (-) (1,035) - (1,035) - Impairment losses - (7,116) (11,000) (22,250) Balance at 31 December 23,420 23,057 11,382 12,417
Within 2023, capital increases were implemented in the associated company NedZink B.V., where ELVALHALCOR
participated in a total amount of 11.00 million euros, maintaining its share to 50%. The difficult economic conditions
prevailing worldwide, with the increased reference interest rates, burdened the demand for its products and, as a
consequence, the results of 2023. This resulted to an impairment loss of the investment, as a consequence of the
impairment test assessment conducted according to its business plan, which ELVALHALCOR incorporate the revised
negative assessments for future results for NedZink B.V., following the conservatism principle. As a consequence of
the revised assessment an impairment loss had to be recorded if Euro 11,00 million, due to the fact that the
recoverable amount of the investment was lower than the carrying amount of the investment at Company level.
The assumptions used was Risk-free rate: 3,0%, Market risk premium: 4,8%, Expected income tax rate: 25,8%,
levered beta: 1,25, WACC 8,0%, Growth rate (g): 1,3%.
Annual Financial Report of 31st December 2023
122
The main financial assets of these associated companies can be broken down as follows:
Consolidation Company Country Business % investment method 2023 2022 UACJ ELVAL HEAT EXCHANGER Germany Commercial Equity method 49.00% 49.00% MATERIALS GmbH International Trade S.A. Belgium Commercial Equity method 27.97% 27.97% STEELMET S.A. Greece Services Equity method 29.56% 29.56% Metallurgical ELKEME S.A Greece Equity method 92.50% 92.50% Research VIENER S.A Greece Energy Equity method 41.32% 41.32% VIEXAL S.A Greece Services Equity method 26.67% 26.67% HC ISITMA A.S. Turkey Industrial Equity method 50.00% 50.00% NEDZINK B.V. Netherlands Industrial Equity method 50.00% 50.00%
Current Non current Short term Long term Amounts in EUR Assets Assets Liabilities Liabilities thousand 2023 2022 2023 2022 2023 2022 2023 2022 UACJ ELVAL HEAT EXCHANGER 14,376 14,896 12 20 12,235 13,216 - - MATERIALS GmbH International Trade 151,263 149,577 8,127 8,247 103,543 103,172 4,752 5,968 S.A. STEELMET S.A. 13,639 13,191 7,088 5,388 13,877 13,373 3,106 2,619 ELKEME S.A 2,108 1,873 1,060 946 683 525 140 123 VIENER S.A 4,709 10,386 576 1,247 2,271 4,859 449 2,093 VIEXAL S.A 2,217 2,814 161 78 1,578 1,983 127 22 HC ISITMA A.S. 508 449 132 79 66 97 29 53 NEDZINK B.V. 30,165 39,419 40,240 46,970 52,377 43,777 32,030 38,693
Other Net Result after comprehensive Sales Dividends Amounts in EUR tax income after thousand tax 2023 2022 2023 2022 2023 2022 2023 2022 UACJ ELVAL HEAT EXCHANGER 73,559 69,383 1,656 1,235 - - 1,203 1,535 MATERIALS GmbH International Trade 1,249,526 1,724,169 7,661 6,665 (205) (429) 1,200 - S.A. STEELMET S.A. 57,289 52,518 1,140 1,861 17 (82) - 954 ELKEME S.A 3,710 3,198 158 93 (6) 5 - - VIENER S.A 17,980 79,803 401 2,645 - (179) 2,502 217 VIEXAL S.A 15,986 13,905 470 658 (52) 1 630 504 HC ISITMA A.S. 2,051 1,417 (48) 134 (4) (3) - - NEDZINK B.V. 79,614 100,161 (22,277) (13,762) - - - -
Annual Financial Report of 31st December 2023
123
The Group does not control Elkeme S.A. as the management is being appointed directly by Viohalco. Elkeme is being
consolidated in full by Viohalco S.A.
15. Other investments
The movement of other investments in non-current assets was as follows:
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Balance as at 1 January 5,261 4,231 4,994 4,189 Additions 26,634 720 26,634 495 Change in fair value through equity 216 310 216 310 Disposals (54) - (40) - Mergers and absorptions - - - - Reclassifications (3,588) - (3,588) - Balance as at 31 December 28,470 5,261 28,217 4,994
Other investments related to domestic and foreign equity instruments for which neither the Group nor the
Company has the power or significant influence.
Other investments include the following:
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Unlisted shares: -Greek equity instruments 27,572 4,364 27,319 4,096 -International equity instruments 895 895 895 895 28,467 5,258 28,213 4,991 Listed Securities -International Equity instruments 3 3 3 3 3 3 3 3
The investment in the related company COSMOS ALUMINIUM of Euro 23 million (2022: Euro 0), which has been
included in the above table, has been impaired by Euro 3.6 million, and the respective impairment loss has been
included in the consolidated and standalone statement of profit and loss and measured in the fair value through
profit and loss.
The investments for which the fair value cannot be estimated were valued at cost. For the calculation of the fair
value please see note 28. The fair value is being recorded through OCI statement (FVTOCI).
Annual Financial Report of 31st December 2023
124
16. Income tax
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Income tax expense (8,484) (41,727) (91)(30,401)Deferred tax (1,629) 3,793 5,640 11,916Income tax (10,113) (37,934) 5,550 (18,485) Amounts in EUR thousand 2023 2022 2023 2022 Profit before income tax 42,958 199,823 (3,026) 129,980 At statutory income tax rate of 22% (9,451) (43,961) 666 (28,596) Non-deductible expenses for tax purposes (6,707) (7,595) (1,264) (2,549) Tax-exempt income 96 9,574 6,239 8,565 Recognition of previously unrecognised tax losses, tax -724- - credit or temporary differences of a prior period Effect of tax rates in foreign jurisdictions 5,619 3,465- - Current-year losses for which no deferred tax asset is -(88)- - recognised Tax-exempt reserves recognition -1,732-1,667Change in tax rate or composition of new tax 122 - - - Permanent Differences -(2,269)-1,989Other taxes -(5)--Adjustment for prior year income tax 209 488(91)438Income tax expense reported in the statement of (10,113) (37,934) 5,550 (18,485) profit or loss Effective tax rate -24%-19%-183%-14%
The deferred tax assets that arise from the losses carried forward are recognized only if it is possible that they will be recovered with
future profits according to the Groups business plan.
Pursuant to Law.4799/2021 tax rate reduced to 22% for income of legal entities for the tax year 2021 and onwards. The effect of
the change in tax rate amounted to Euro 4.5 million and 3.7 million for the Group and the Company respectively.
The provisions of article 49 and paragraph 9 of article 72 of Law 4172/2013, as amended with the L.4607/2019, regarding thin
capitalization, were applicable according to which the limit of the additional interest expense is set to 30% of the EBITDA, subject to
paragraph 3, where interest expenses are not recognized as deductible tax expenses, to the extent that the excess interest expenses
exceed thirty percent (30%) of the taxable earnings before interest, taxes, depreciation and amortisation (EBITDA). These interest
expense that are not deducted can be settled with future tax profits with no time limitations.
For the fiscal year 2023, the Company recorded tax losses of Euro 12.7 million. Based on management assumptions concerning the
recoverability of the tax losses, these determined till the following five years. As a result, the Company has recognised deferred tax
assets of Euro 2.8 million.
For the fiscal year 2023, the Company and its subsidiaries are under the audit of the Certified Public Accountants, according to the
provisions of article 65A of Law 4174/2013. This audit is on-going, and the relative report of tax compliance is expected to be issued
after the publication of the financial statements for the year ended on 31
st
December 2022. The result of the audit is not expected
to significantly affect the financial statements.The unaudited years of the Group can be found in Note 30.
Annual Financial Report of 31st December 2023
125
The movement in deferred tax assets and liabilities can be presented as follows:
Net
Deferred tax
Deferred tax
GROUP Balance at 31 December Net balance at Recognised in Recognised Other 2023 1 January profit or loss in OCI assets liabilities Amounts in EUR thousand Property, plant & equipment (49,317) (6,215) - 944 (54,589) -(54,589)Right of use asset 220 274 -(1,924)(1,429) -(1,429)Intangible assets (10,231) (34)-- (10,265) -(10,265)Investment property (300) 8 -- (292) -(292)Other investments (1,965) 1,215 (47) - (798) - (798)Derivatives (8,271) (14)6,603-(1,681)-(1,681)Inventories 735 (1,358) - - (623)-(623)Loans and borrowings 164 146 - 980 1,290 1,290 - Employee benefits 2,175 255 158 -2,5882,588 - Provisions/ Accruals 3,444 88 - - 3,5313,531 - Deferred income (89)653-1,0301,5951,595 - Other items 1,478 550(1)(1,030)996 996 - Carry forward tax loss -2,803--2,803 2,803 - Tax assets/liabilities (-) before set-(61,957) (1,629) 6,713 -(56,873)12,804 (69,676) off Set-off tax (12,804) 12,804 Net tax assets/liabilities (-) (61,957) (1,629) 6,713 -(56,873)-(56,873)
Annual Financial Report of 31st December 2023
126
GROUP Balance at 31 December Reclassification to Liabilities directly Net balance at Recognised in Recognised in Deferred Deferred tax 2022 associated with Net 1 January profit or loss OCI tax assets liabilities the assets held for sale Amounts in EUR thousand Property, plant & equipment (51,254) 2,379 - (442) (49,317) - (49,317) Right of use asset 432 (167) - (45) 220 220 Intangible assets (10,419) 12 - 177 (10,231) - (10,231) Investment property (312) 12 - - (300) - (300) Other investments 956 (736) (68) (2,117) (1,965) - (1,965) Derivatives (1,404) 298 (7,164) - (8,271) - (8,271) Inventories (1,796) 2,587 - (56) 735 735 - Loans and borrowings 2 162 - - 164 164 - Employee benefits 2,406 114 (314) (31) 2,175 2,175 - Provisions/ Accruals 2,070 1,668 - (295) 3,444 3,444 - Deferred income (59) (30) - - (89) - (89) Other items 4,051 (2,505) - (67) 1,478 1,478 - Tax assets/liabilities (-) before set-(55,327) 3,793 (7,547) (2,876) (61,957) 8,216 (70,173) off Set-off tax - - - - - (8,216) 8,216 Net tax assets/liabilities (-) (55,327) 3,793 (7,547) (2,876) (61,957) - (61,957)
Annual Financial Report of 31st December 2023
127
COMPANY Balance at 31 December Net balance Recognised in Recognised Deferred tax Deferred tax 2023 Other Net at 1 January profit or loss in OCI assets liabilities Amounts in EUR thousand Property, plant & (38,070) (2,946) - 944 (40,072) -(40,072)equipment Right of use asset 470 238 - (1,924) (1,217) -(1,217)Intangible assets (10,471) (34) - - (10,506) -(10,506)Investment property (501) 11 - - (490) -(490)Other investments 5,662 5,072 (47) - 10,686 10,686 - Derivatives (7,988) 212 6,477 -(1,300)-(1,300)Inventories 383 (1,102) - - (719)-(719)Loans and borrowings 157 121 - 980 1,258 1,258 - Employee benefits 1,404 1 125 -1,5301,530 - Provisions/ Accruals 3,391 69 - - 3,4613,461 - Deferred income (124)677- 1,030 1,5841,584 - Other items 3,079 519- (1,030) 2,5672,567 - Carry forward tax loss -2,803 - - 2,8032,803 - Tax assets/liabilities (-) (42,609) 5,640 6,554 -(30,415)23,888 (54,303) before set-off Set-off tax - - - - -(23,888)23,888 Net tax assets/liabilities (-) (42,609) 5,640 6,554 -(30,415)-(30,415)
Annual Financial Report of 31st December 2023
128
Deferred tax
Deferred tax
COMPANY Balance at 31 December Net balance at 1 Recognised in Recognised in Net 2022 January profit or loss OCI assets liabilities Amounts in EUR thousand Property, plant & equipment (42,825) 4,755 -(38,070)-(38,070)Right of use asset 617 (147) - 470470 - Intangible assets (10,430) (41) - (10,471)-(10,471)Investment property (514) 12 -(501)-(501)Other investments (39) 5,770 (68)5,6625,662 - Derivatives (1,138) 340 (7,190) (7,988)-(7,988)Inventories (1,835) 2,218 -383383 - Loans and borrowings (10) 167 -157157 - Employee benefits 1,655 53 (303)1,4041,404 - Provisions/ Acrruals 2,085 1,306 -3,3913,391 - Deferred income (162) 39 -(124)-(124)Other items 5,633 (2,555) -3,0793,079 Tax assets/liabilities (-) before (46,963) 11,916 (7,562) (42,609) 14,546 (57,155) set-off Set-off tax - - - - (14,546) 14,546 Net tax assets/liabilities (-) (46,963) 11,916 (7,562) (42,609) -(42,609)
Annual Financial Report of 31st December 2023
129
The movement of deferred tax in Other Comprehensive Income was as follows:
GROUP 2023 2022 Tax Tax Amounts recognized in the OCI Net of Net of Before Tax (expense) / Before Tax (expense) / (Amounts in EUR thousand) Tax Tax Benefit Benefit Remeasurements of defined (790)158(632)1,457(314)1,143benefit liability Equity investments in FVOCI – 216 (47)168310 (68)242net change in fair value Foreign currency translation - - - (8) - (8) differences Gain / (Loss) of changes in fair value of cash flow hedging – (48) - (48)(112)-(112)effective portion Gain / (Loss) of changes in fair value of cash flow hedging – (21,047) 4,815 (16,233) 35,138 (8,401) 26,737 reclassified to profit or loss Remeasurements of defined (9,196) 1,788 (7,408) (3,977) 1,237 (2,740) benefit liability Share of other comprehensive income of equity-accounted (11) - (11) (35) - (35) investees Total (30,877) 6,713 (24,164) 32,774 (7,547) 25,227
COMPANY 2023 2022 Tax Tax Amounts recognized in the OCI Net of Net of Before Tax (expense) / Before Tax (expense) / (Amounts in EUR thousand) Tax Tax Benefit Benefit Remeasurements of defined (567)125(442)1,378(303)1,075benefit liability Equity investments in FVOCI – 216 (47)168310 (68)242net change in fair value Other movements that will never be reclassified to profit or - - - - - - loss Foreign currency translation - - - - - - differences Gain / (Loss) of changes in fair value of cash flow hedging – (21,316) 4,690 (16,627) 40,096 (8,821) 31,275 effective portion Gain / (Loss) of changes in fair value of cash flow hedging – (8,124) 1,787 (6,337) (7,412) 1,631 (5,782) reclassified to profit or loss Total (29,791) 6,554 (23,237) 34,371 (7,562) 26,809
Annual Financial Report of 31st December 2023
130
17. Inventories
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Merchandise 3,819 4,086 2,372 2,386 Finished goods 183,879 214,239 122,632 145,071 Semi-finished goods 212,674 264,045 137,356 184,222 By-products & scrap 76,877 94,586 36,863 57,824 Work in progress 13,630 13,892 2,517 2,145 Raw and auxiliary materials 128,414 163,038 74,564 101,493 Consumables 14,385 14,494 8,273 8,660 Packaging materials 3,013 5,722 1,020 4,228 Spare parts 98,039 87,820 80,617 72,598 Total 734,729 861,922 466,214 578,627
Inventories are recognized in the net realizable value which reflects the estimated value of sale less costs to sale.
During the year, an impairment loss to the net realizable value of Euro 6.1 million was recognized for the Group and
Euro 1.9 million for the Company, which charged to the results of the year and were included in the caption of “Cost
of Sales” of the Group’s and Company’s statement of profit and loss respectively.
18. Trade and other receivables
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Current Assets Trade receivables 134,497 148,589 75,221 81,033 Less: Impairment losses (7,803) (7,780) (7,206) (7,025) Receivables from related entities 119,763 124,654 149,664 155,165 Net trade receivables 246,457 265,464 217,679 229,172 Other down payments 2,910 4,099 339 966 Tax assets 19,505 36,983 12,737 27,230 Other debtors 8,684 10,234 5,396 6,060 Other receivables 13,721 4,420 11,597 2,543 Less: Impairment losses (161) (211) (161) (211) Total short term trade and other receivables 44,659 55,526 29,908 36,588 291,116 320,989 247,587 265,760 Non-current assets Non-current receivables from other related parties 33,578 13,053 33,568 44,939 Other non-current receivables 962 2,150 713 1,969 Less: Impairment loss - - - (4,421) Non-current trade & other receivables 34,540 15,203 34,281 42,487 Total trade and other receivables 325,656 336,192 281,868 308,247
Annual Financial Report of 31st December 2023
131
Impairment losses for doubtful customers is recognised for the outstanding balances for which the Management
of the Group considers as impaired less the expected remuneration from the insurance companies. More
information presented in note 28.
In the caption of “Long trade and other receivables” of the Company an long term receivable of Euro 27,3 million
(2022: Euro 32,3 million) related to a long term according to the strategic partnership agreement between ETEM
S.A and COSMOS ALUMINIUM. The specific receivable will be settled in accordance with the terms and conditions
attached in the strategic partnership agreement between ElvalHalcor and COSMOS Aluminium and the merger
agreement between ETEM SA and COSMOS Aluminium.
During the fiscal year, the Company write off a portion of the aforementioned receivable, of Euro 5.6 million, which
has been classified in the caption of the statement of profit and loss “Impairment of receivables”.
In the line “current tax assets” are included VAT receivables.
19. Derivatives
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Non-current assets Interest rate swap contracts 4,256 11,501 4,256 11,501 Commodity Forward Start Swaps 730 18,056 730 18,056 Forward electricity Swap 327 - 279 - Future Contracts 41 - 41 - Current assets 5,355 29,557 5,307 29,557 Interest rates swaps 3,805 3,162 3,805 3,162 Forward foreign exchange contracts 457 1,270 222 94 Future contracts 3,412 1,080 3,265 574 Commodity Forward Start Swaps 1,347 10,692 1,347 10,692 Total 9,020 16,205 8,639 14,522 Non-current liabilities Forward foreign exchange contracts - 4 - 4 Future contracts 1 - 1 - Commodity Forward Start Swaps 3,598 1,245 3,598 1,245 Other - - 1,157 - Current liabilities 3,598 1,249 4,756 1,249 Forward foreign exchange contracts 129 115 118 96 Future contracts 316 2,863 170 2,751 Commodity Forward Start Swaps 2,996 3,672 2,996 3,672 Total 3,442 6,650 3,285 6,520
Annual Financial Report of 31st December 2023
132
For the Group and the Company, the results from settled financial risk management operations through derivatives,
upon metal price, exchange rates and natural gas, were recorded in the Income Statement during years 2023 and
2022 are included in the caption of Cost of Goods Sold.
For the above derivatives it has been recognized in the income statement of the Group and Company profit of Euro
129 thousand and Euro 141 thousand respectively related to the ineffective part of the valuation of these
derivatives.
In category other derivatives are included Options according to "Shareholders' Agreement" of new shareholders of
EPIRUS METALWORKS SA. More information referred to note 14.
Based on the applicable policy (Note 5.13) and in accordance with the terms of the agreement, the power purchase
agreements (PPA) meet the definition of a derivative and are relevant to the provisions of IFRS 9 and for this reason
they have been accounted for as such. The fair value of the derivative financial instrument arising from the PPA
(power purchase agreements) concluded during 2023, amounts to Euro 327 thousand for the Group and Euro 279
thousand for the Company. These derivatives are classified as financial instruments of "level 3" and meet the
eligibility criteria for hedge accounting, as cash flow hedges. Therefore, the effective part of change in the fair value
of derivatives derived from the PPA is recognized in the “Reserve Risk Hedging” through the "Statement of Other
Comprehensive Income".
Derivatives are recognized when ELVALHALCOR companies perform transaction with purpose of either hedging the
fair value of receivables, liabilities, or commitments (fair value hedging) or highly probable transactions (cash flow
hedge).
The amount of Gains / (Losses) from the valuation of derivatives as cash flow hedge reclassified to statement of
profit and loss of the Group for the fiscal year 2023 was gains of Euro 9.2 million (2022: Loss 3.9 million) and at
Company level was Euro 8.1 million (2022: gains 7.4 million). Total impact of the derivatives reclassified to profit
and loss during the fiscal year as well as the prior year was as follows:
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Gains/(Losses) from derivatives (2,028) 35,072 (4,948) 33,849
The movement of derivatives in Equity was as follows:
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Gain / (Loss) of changes in fair value of cash (21,047) 35,138 (21,316) 40,096 flow hedging – effective portion Gain / (Loss) of changes in fair value of cash (9,196) (3,977) (8,124) (7,412) flow hedging – reclassified to profit or loss Related Tax 6,603 (7,164) 6,477 (7,190) Total (23,640) 23,997 (22,963) 25,493
Annual Financial Report of 31st December 2023
133
20. Cash and cash equivalents
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Cash in hand and cash in bank 126 17 6 5 Short-term bank deposits 40,391 35,178 26,618 17,670 Total 40,517 35,195 26,624 17,675
Bank deposits are set at variable interest rates according to the applicable rates of interbank market. Short term bank
deposits are assigned to bank institutions with Moody’s ratings, from A2 to Caa2.
In Note 28.c that is referred to currency risk of the Group, an analysis of cash per foreign currency is presented.
21. Share capital and reserves
a) Share capital and premium
Following the completion of the Merger by absorption of “ELVAL HELLENIC ALUMINIUM INDUSTRY S.A.” by “HALCOR
METAL WORKS S.A.”, the share capital of the Company amounts to Euro 146,344,218 (2022: Euro 146,344,218)
divided to 375,241,586 (2022: 375,241,586) common anonymous shares of a nominal value of € 0.39 (2022: Euro
0.39) each traded at the Athens Stock Exchange.
The share premium of Euro 65,030,285 is considered to be a part of the share capital that rose from the issuance of
shares for cash in a value higher than the nominal.
ElvaHalcor’s share capital was created as follows:
The share capital of Halcor amounted to Euro 38,486,258.26 divided to 101,279,627 common shares with voting rights,
of a nominal value of € 0.38 each. The share capital of Elval amounted to € 105,750,180.62 divided to 27,046,082
anonymous shares of nominal value € 3.91 each.
The Merger had, as a result, the increase of Halcor’s capital by:
• Amount of € 105,750,180.62, which corresponds to Elval share capital,
• Amount of € 2,107,779.66 which corresponds to the capitalization of share premium for rounding of the share price
of the merged company.
As a result, the present share capital of “ELVALHALCOR HELLENIC COPPER AND ALUMINIUM INDUSTRY S.A.” increased
from € 38,486,258.26 to €146,344,218.54 with the issuance of 273,961,959 new shares in favour of Elval’s
shareholders, and the total number of shares amounted to 375,241,586 shares with a nominal value of € 0.39.
Annual Financial Report of 31st December 2023
134
b) Reserves
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Statutory Reserves 24,807 17,719 15,285 10,355 Hedging reserves 6,640 30,251 5,169 28,133 Special Reserves 46,696 44,899 43,376 43,376 Tax exempt reserves 179,797 178,196 180,092 178,425 Extraordinary Reserves 6,713 6,713 6,738 6,738 Other reserves 622 622 622 622 Merger reserves 46,144 46,144 49,302 49,302 Foreign exchange difference (1,819) (1,704) - - Total 309,600 322,838 300,585 316,952
Statutory Reserve
According to article 158 of L.4548/2018, the companies are obligated, from the profit of the year, to create a statutory
reserve for an amount at least equal to 1/20 of the net earnings. The creation of statutory reserve seizes to be
compulsory when this reaches 1/3 of the capital. The statutory reserve is used exclusively for the offsetting of losses.
Pursuant to the decisions of the General Assemblies, the Group and the Company created reserves amounted to EUR
7.1 million and EUR 5.0 million, respectively. For the fiscal year 2023 the Board of Directors will propose to General
Assembly a dividend of Euro 0.04 per share.
Untaxed and special reserves
Untaxed and special reserves concern non-distributed profits that are exempt from taxation pursuant to special
provisions of incentive laws (under the condition that companies have sufficient profits to form these reserves).
Reserves from income exempt from taxation and reserves taxed pursuant to special laws concern income from interest
for which a tax has been withheld at the source. In addition to any prepaid taxes, these reserves are subject to taxation
in case they are distributed. No deferred taxes have been accounted for as regards the above untaxed reserves in case
they are distributed. Company and the Group created reserves of Law 4399/2016 during fiscal year in the amount of
Euro 1.6 million.
Exchange rate differences on consolidation
Exchange rate differences on consolidation arise from translating the financial statements of subsidiaries which are
denominated in foreign currency, to the currency of the Parent Company which is in Euro.
Hedging reserves
Hedging reserves contain the effective portion of the changes in the fair value of the derivatives that had been
considered under the hedge accounting. These reserves are transferred thereafter to the statement of profit and loss,
when the hedging item will affect the statement of profit and loss.
Reserve of merger/absorption
The reserve of the absorption includes the difference between the acquisition price and the nominal value of the
shares issued.
Annual Financial Report of 31st December 2023
135
22. Earnings per share
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Profit/Loss (-) attributable to the owners of 28,498 159,286 2,524 111,495 the Company Number of shares 2023 2022 2023 2022 Number of shares at the date 375,241,586 375,241,586 375,241,586 375,241,586 In EUR per share 2023 2022 2023 2022 Basic and diluted 0.07595 0.42449 0.00673 0.29713
Basic earnings per share are calculated by dividing the net profits (losses) attributable to the parent
company’s shareholders by the weighted average number of common shares, save the average number of
common shares acquired by the Group and held as own shares.
23. Loans and obligations from financial leasing
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Non-current liabilities Secured bank loans 109,521 104,940 75,000 52,907 Unsecured bank loans 55,182 62,490 55,182 62,490 Secured bond issues 178,526 208,528 178,526 208,528 Unsecured bond issues 351,315 402,291 342,515 388,678 Finance lease liabilities 7,809 5,442 4,193 3,611 Total 702,352 783,692 655,416 716,216 Current liabilities Secured bank loans 42,185 39,014 - - Unsecured bank loans 14,060 40,186 263 23,128 Current portion of secured bond issues 15,286 29,985 15,286 29,985 Current portion of unsecured bond issues 47,333 56,656 42,700 51,231 Current portion of secured bank loans 18,122 26,448 892 11,436 Current portion of unsecured bank loans 11,879 10,415 11,879 10,415 Current portion of finance lease liabilities 2,649 4,357 1,523 3,506 Total 151,515 207,061 72,543 129,700 Total loans and borrowings 853,867 990,753 727,959 845,916
There were no events of default on the loans. The above loans include a common bond loan, of a total capital of
€250,000,000, divided into 250,000 intangible, anonymous, common bonds nominal value of Euro 1,000 each,
which are listed for trading in category Fixed Income of the Regulated Market of the Athens Stock Exchange.
The Group and the Company did not enter into bond loan agreements within 2023.
The Group and the Company have pledged assets of a total amount of Euro 693 million and Euro 434 million,
respectively.
Annual Financial Report of 31st December 2023
136
The actual weighted average interest rates (both short and long term) at the balance sheet date were:
GROUP COMPANY 2023 2022 2023 2022 Bond loans 4.1% 3.6% 4.06% 3.6% Bank loans in EUR 5.1% 4.2% 4.31% 3.9% Bank loans in GBP - 6.8% - 6.8%
For the bank loans of the Group and the Company that have been assumed from banks, there are clauses of change
of control that provide the lenders with an early redemption clause. The Group secures the consent of the lenders in
case of non-compliance with the said clauses when it is necessary. There was no event during fiscal year 2023 that
led to a breach of the terms of the Group's loans and the company's.
The maturities of the loans are shown below.
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Between 1 and 2 years 98,253 138,424 93,840 115,377 Between 2 and 5 years 492,929 273,806 450,487 233,492 Over 5 years 111,171 371,462 111,089 367,347 Total 702,352 783,692 655,416 716,216
GROUP Amounts in EUR thousand 2023 2022 Loans and Lease Loans and Lease Total Total Borrowings Liabilities Borrowings Liabilities Balance as at 1 January 980,954 9,800 990,753 863,021 15,177 878,198 Proceeds from loans and borrowings 54,096 - 54,096 229,399 - 229,399 Repayment of Borrowings (194,190) - (194,190) (113,049) - (113,049) Payment of Lease liabilities - (5,968) (5,968) - (5,264) (5,264) Total changes from financing cash (140,094) (5,968) (146,062) 116,350 (5,264) 111,086 flows Other changes New leases - 7,485 7,485 - 3,018 3,018 Effects from Foreign Exchange - - - (31) - (31) Capitalised borrowings costs 1,781 - 1,781 256 - 256 Interest expense 44,798 402 45,200 28,781 578 29,359 Amortisation of loan fees 2,219 - 2,219 2,198 - 2,198 Interest paid (46,248) (338) (46,586) (26,440) (497) (26,937) Terminations - (92) (92) - (132) (132) Modifications - - - 138 138 Other changes 1 12 13 253 25 279 Division/ segment spin off - - - 4 - 4 Loss of Control/Disposal of subsidiary - (843) (843) (3,439) (3,243) (6,682) Total related to other changes 2,550 6,626 9,176 1,583 (113) 1,470 Balance as at 31 December 843,410 10,458 853,867 980,954 9,800 990,753
Annual Financial Report of 31st December 2023
137
COMPANY Amounts in EUR thousand 2023 2022 Loans and Lease Loans and Lease Total Total Borrowings Liabilities Borrowings Liabilities Balance as at 1 January 838,799 7,117 845,916 703,992 9,954 713,946 Proceeds from loans and 42,973 - 42,973 200,535 - 200,535 borrowings Repayment of Borrowings (161,816) - (161,816) (70,099) - (70,099) Payment of Lease liabilities - (4,675) (4,675) - (3,523) (3,523) Total changes from financing (118,843) (4,675) (123,518) 130,436 (3,523) 126,914 cash flows Other changes New leases - 3,299 3,299 - 645 645 Effects from Foreign Exchange (31) - (31) Capitalised borrowings costs 1,781 - 1,781 256 - 256 Interest expense 35,912 273 36,185 23,919 128 24,047 Amortisation of loan fees 2,219 - 2,219 2,198 - 2,198 Interest paid (37,625) (273) (37,897) (21,592) (128) (21,721) Terminations - (54) (54) - (21) (21) Modifications - 28 28 - 62 62 Other changes - - - (379) - (379) Total related to other changes 2,287 3,274 5,561 4,371 686 5,056 Balance as at 31 December 722,243 5,716 727,959 838,799 7,117 845,916
24. Liabilities for employee’s retirement benefits
The Group has fulfilled its obligations for pension plans set out by law. According to the Greek labour law, employees
are entitled to compensation in case of dismissal or retirement, the amount of which varies depending on salary,
years of service and the manner of termination (dismissal or retirement). Employees who resign are not entitled to
compensation. The compensation payable in case of retirement equals 40 % of the compensation, which would be
payable in case of unjustified dismissal. The Group believes this is a defined benefit, and it charges the accrued
benefits in each period with a corresponding increase in the pension liability. Any payments made to retirees each
year are charged against this liability. The displayed personal benefit obligation of the Company and the Group as at
31 December 2023 and 2022 is as follows:
Annual Financial Report of 31st December 2023
138
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 13,195 11,795 8,177 7,844 Net defined benefit liability Liability for social security contributions 5,306 6,327 3,362 4,004 Total employee benefit liabilities 18,500 18,121 11,539 11,847 Amounts in EUR thousand 2023 2022 2023 2022 Balance at 1 January 11,795 12,585 7,844 8,836 Included in profit or loss Current service cost 952 1,122 535 704 Past service cost 637 115 - - Settlement/curtailment/termination loss 1,382 1,027 1,182 761 Interest cost 338 26 223 15 Total P&L Charge 3,309 2,290 1,941 1,480 Amounts recognized in OCI Remeasurement loss/gain (-): -Actuarial loss/gain (-) arising from: - Demographic assumptions 42 217 41 - - Financial assumptions 83 (1,609) (12) (857) - Experience adjustments 665 (65) 537 (521) 791 (1,457) 567 (1,378) Other Loss of Control/Disposal of subsidiary - (175) - - Benefits paid (2,699) (1,448) (2,174) (1,095) Balance at 31 December 13,195 11,795 8,177 7,844
The assumptions on which the actuarial study was based for the calculation of provision are the following:
GROUP COMPANY Principal actuarial assumptions 2023 2022 2023 2022 Discount rate 3.11% 3.69% 3.10% 3.69% Inflation 2.01% 2.78% 2.00% 2.80% Future salary growth 2.68% 3.21% 2.41% 3.04% Plan duration 4.12 4.25 3.42 3.71
The aforementioned results depend on assumptions (financial and demographic) of the actuarial study. Therefore, if a
discount rate less by 50 basis points had been used then the liability would be higher by 1.57% for the Company and
1.91% for the Group approximately, although with a discount rate increased by 50 basis points, the liability would have
been dropped by 1,74% for the Company and by 2,10% for the Group. If an assumption of a future salary increases by
50 basis points annually had been used, then the liability would be higher by 1.54% for the Company and 1.93% for
Annual Financial Report of 31st December 2023
139
the Group, and if a future salary decreased by 50 basis points, then the liability would have been less by 1.50% for the
Company and by 1.85% for the Group.
25. Grants
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Balance at January 1 14,210 15,233 8,440 9,044 Collection of grants - 656 - 650 Transfer of grants to results - (5) - - Amortisation of grants (1,535) (1,673) (1,146) (1,254) Balance at December 31 12,674 14,210 7,293 8,440
Amortisation of grants corresponding to fixed assets depreciation is posted in the caption “Other income” of the
Income Statement. Grants have been granted for the purchase of tangible assets.
All conditions associated with the grants received by ELVALHALCOR have been fulfilled in 31.12.2023 and on
31.12.2022.
26. Provisions
No movement has occurred for the Provisions during the fiscal year. Amount of EUR 1.4 mil. For the Group and EUR
1.2 mil. For the Company related to provisions for tax unaudited fiscal years.
27. Trade and other payables
Trade payables and other liabilities balance according to their current or non-current classification is as follows:
-
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Suppliers 283,688 252,922 256,727 190,661 Notes payable 50,295 51,204 50,295 51,053 Social Security funds 5,306 6,327 3,362 4,004 Amounts due to related parties 18,291 27,151 26,808 34,642 Dividends payable 32 20 32 20 Sundry creditors 7,249 7,361 3,231 3,338 Accrued expenses 41,001 51,241 33,930 43,126 Other Taxes 2,105 2,343 - Total 407,967 398,568 374,385 326,845 Current balance of trade and other 395,327 384,495 363,020 312,772 payables Non-current balance of trade and other 12,640 14,073 11,365 14,073 payables Balance at 31 December 407,967 398,568 374,385 326,845
Annual Financial Report of 31st December 2023
140
28. Financial assets and risk management
The Board of Directors of the Group in conjunction with the parent Group has set rules and procedures for measuring
the following risks:
▪ Credit risk
▪ Liquidity risk
▪ Fluctuation risk in Prices of Metal Raw Materials (aluminum, copper, zinc, other metals) and gas
▪ Exchange rate risk
▪ Interest rate risk
Overseeing adherence to risk management policies and procedures is assigned to the Internal Audit department,
which performs recurring and non-recurring audits, the findings of which are communicated to the Board of
Directors.
Credit risk
The Group and the Company’s exposure to credit risk are primarily affected by the features of each customer. The
demographic data of the Group’s clientele, including payment default risk that determines the specific market and
the country in which customers are active, affect credit risk to a lesser extent since no geographical concentration
of credit risk is noticed. No client exceeds 10% of total sales (for the Group or Company), and, consequently, the
commercial risk is spread over a large number of clients. More specific, it should be noted that INTERNATIONAL
TRADE S.A trades products of the Group ELVALHALCOR to various foreign countries, with the delivery provided
directly from the production facilities of the Group to the end use customers, the majority of them does not exceed
the 10% of total sales. ELVALHALCOR’s transactions with NTERNATIONAL TRADE are approved by the Board of
Directors and are published to the Business Registry (GEMH)), pursuant to art. 99-101 of the Law L4548/2018.
The Board of Directors has adopted a credit policy, which assesses each new customer separately for
creditworthiness before normal payment terms are proposed. The creditworthiness control implied by the Group
and the Company includes the examination of bank sources. Credit limits are set for each customer, which are
reviewed in accordance with the current conditions and the terms of sales and collections are revised, if it is
required. In principle, the credit limits of customers are set on the basis of the insurance limits received for them
from insurance companies and, subsequently, receivables are insured according to such limits.
Taking into consideration the monitoring customers’ credit risk, customers are grouped according to their credit
characteristics, the maturity characteristics of their receivables and any past difficulties of collectability they have
shown. Trade and other receivables include mainly wholesale customers of the Group and the Company. Customers
that are characterized as being of “high risk” are included in a special list of customers for further monitoring and
future sales should be collected in advance. Depending on the background of the customer and his properties, the
Group and the Company demands collateral demand collateral securities or other security (e.g. letters of guarantee)
in order to secure its receivables, if possible.
Bearing in mind that there is no official definition of default, ElvalHalcor considers as default the occurrence of one
or both of the following events: i) The Company assumes that the counterparty is unlikely to fully recover its
obligation to the Company, unless the Company obtain measures, such as the liquidation of any collateral provided
in favour of the insurance company. ii) The counterparty is overdue for payment / recognized of its obligation to
the Company for a period of more than 30 days (provided that the terms of the credit have not been changed by
agreement of the Company). Any write-off is carried out following the completion of the legal actions.
The Group and the Company record impairment allowances that reflect its assessment of losses and expected credit
losses from customers, other receivables, and investments in securities. This allowance mainly consists of
impairment losses of specific receivables that are estimated based on given circumstances that they will be
materialized though they have not been finalized yet, as well as an allowance for expected credit losses according
to the Group’s analysis which was formulated for the implementation of IFRS 9.
Annual Financial Report of 31st December 2023
141
To avoid liquidity risks, the Group and the Company carry out a cash flow forecast for a period of one year when
drawing up the annual budget, and a monthly rolling forecast of three months to ensure the adequacy of the cash
reserves to cover the operational needs, including meeting their financial obligations. During this process, the
relative effect of extreme conditions that cannot be considered be foreseen.
Liquidity risk
Liquidity risk is the inability of the Group to discharge its financial obligations when they mature. The approach
adopted by the Group to manage liquidity is to ensure, by holding the necessary cash and having adequate credit
limits from cooperating banks, that it will always have adequate liquidity in order to cover its obligations when they
mature, under normal or more difficult conditions, without there being unacceptable losses or its reputation being
jeopardized. It is noted that the Group held cash and cash equivalents on 31 December 2023, which amounted to
Euro 40.5 million and the Company Euro 26.7 million as well as approved but not utilized lines of credit to cover
current and medium-term liabilities. As far as investments are concerned, the Group and the Company take new
loans according to their needs (see note 23). Moreover, the Group communicates with the banks to secure proper
refinancing of loans that expire.
In order to avoid liquidity risk, the Group and the Company examine a cash flow projection for one year while
preparing the annual budget as well as a monthly rolling projection for three months to ensure that it has adequate
cash to cover its operating needs, including the fulfilment of its financial obligations. This policy does not take into
account any impact of extreme conditions which cannot be foreseen.
Exchange rate risk
The Group is exposed to foreign exchange risk in relation to the sales and purchases carried out and the loans issued
in a currency other than the functional currency of Group companies, which is mainly the Euro. The currencies in
which these transactions are held are mainly the Euro, the USD, the GBP and other currencies of S/E Europe.
Over time, the Group and the Company hedge part of their estimated exposure to foreign currencies in relation to
the anticipated sales and purchases and the greatest part of receivables and liabilities in foreign currency. The
Group enters mainly into currency forward contracts with external counterparties so as to deal with the risk of the
exchange rates variation, which mainly expire within less than a year from the balance sheet date. When deemed
necessary, these contracts are renewed upon expiry. As the case may be, foreign exchange risk may be hedged by
taking out loans in the respective currencies.
Loan interest is denominated in the same currency with that of cash flows, which arises from the Group’s operating
activities and is mostly the Euro.
The investments of the Group in other subsidiaries are not hedged because these exchange positions are considered
to be long-term.
Interest rate risk
The Group finances its investments and its needs in working capital through bank and bond loans, thus interest
charges burden its results. Rising interest rates have a negative impact on results since borrowing costs for the
Group rise.
The Group and the Company may undertake loans issued at fixed rates for the reduction of the Interest rate risk
when it is deemed necessary.
Risk from the fluctuation of metal prices (aluminium, copper, zinc, other metals, gas)
The Group and the Company base both their purchases and sales on stock market prices/ indexes for the price of
copper and other metals used and incorporated in its products. In addition, the Company is exposed to risk from
the fluctuation of gas prices, as part of its production cost. The risk from metal prices and gas fluctuation is covered
Annual Financial Report of 31st December 2023
142
by hedging instruments futures on (London Metal Exchange-LME) and Commodity Forward Start Swaps (Title
Transfer Facility – TTF) respectively. The Group, however, does not hedge the entire working stock of its operation
and, as a result, any drop-in metal prices may have a negative effect on its results through the impairment of
inventories. Respectively, the Group does not hedge all of its future needs for gas, as a result any increase in gas
prices may adversely affect its costs.
Cash Flow Hedging
The Group and the Company base both their purchases and sales on metals exchange prices for the price of copper,
aluminium and other metals used and contained in their products and may invoice customers distinctly, but also to
proceed to purchases from suppliers, regarding the quantities of metal required for their operation. Consequently,
for each sale of a product or other inventory item that contains metal, at the point of time the LME price is agreed
with the customer, a long position is opened on the LME for the corresponding quantity contained using derivatives,
and for each order of raw materials from suppliers, at the point of time the LME price is agreed with the suppliers,
a short position whichs taken on the LME for the corresponding quantity using derivatives, where and if these daily
purchases and sales cannot be offset by each other (back-to-back). Thus, the Group and the Company cover
purchases and sales with cash-flow hedging operations, ensuring that the fluctuation of the price of metals in the
international markets will not affect the operating cash flows and consequently the regular, sustainable and optimal
operation of the Group and the Company.
More specific, for cash flows hedges related to natural gas, the Group and the Company conduct Commodity
Forward Start Swaps to hedge the risk of fluctuations in natural gas prices, that is embedded in future gas purchases.
Also, the Company, from its operations, is exposed to fluctuations in gas prices as a component of production costs.
The risk of natural gas price fluctuations is covered by cash flow hedging using Commodity Forward Start Swaps
derivative contracts traded on the Title Transfer Facility (TTF). In particular, the Company assumes a long position
for predetermined quantities of natural gas that will be consumed in its future production. Upon the
commencement of the hedging transaction, the Group and the Company shall document the hedging relationship
between the hedged item and the hedging instrument in relation to risk management and the strategy for future
gas transactions. The Group and the Company document the assessment of the effectiveness of the hedging
relationships in terms of offsetting changes in the fair value of cash flows of the hedged items, both at the inception
of the hedging relationship and on an ongoing basis.
Finally, the Group and the Company use derivative financial instruments in order to hedge their cash flows from
the risk of changes in reference interest rates, as part of the risk management strategy. More specifically, the Group
and the Company proceed with interest rate swaps floating to fixed rate, for a portion of their long-term
borrowings. Interest rate swaps designated as cash flow hedges involve receiving floating rate amounts from a
counterparty in exchange for the Company and the Group making fixed rate payments during the term of these
agreements without exchanging the underlying amount of their financial obligations. This results in any change in
the hedged item causing an equal but opposite change in the cash flows of the hedging instrument. The Group
documents the existence of an economic relationship between the hedged item and the hedging instrument based
on reference interest rates, time periods, maturity dates and nominal values.
Macro-economic environment
Despite the limitations in the global economy and logistics, the implementation of investment programs was
performed in accordance with the program, while the uninterrupted operation of the production continued for
another year, which was an advantage over many Europeans competitors. The availability and prices of the basic
raw materials follow and are determined by international market and are not affected by the domestic situation in
Annual Financial Report of 31st December 2023
143
any individual country. Elvalhalcor has multiple alternative sources of supply of raw materials and acts proactively
by increasing safety stocks in key materials, where and when this becomes necessary, thus dealing with any rhythm
disturbance in supply chains are observed.
Ιt is worth to mention that Elvalhalcor perform sales to companies with long-term partnerships and presence in
local markets and do not face particular risks related to macroeconomic environment. Despite all this, the
Management constantly evaluates the individual parameters and the possible negative effects, to ensure that all
necessary and possible measures are taken in a timely manner and actions to minimize any impact on the activities
of the Company and the Group.
The Group and the Company monitor closely and continuously the developments in the international and domestic
environment and adapt business strategy and risk management policies in a timely manner to minimize the impact
of macroeconomic conditions on operations.
Capital management
The Groups’ policy is to maintain a strong capital base to ensure investors’, creditors’ and market’s trust in the
Group and to allow Group activities to expand in the future. The Board of Directors monitors the return on capital
which is defined by the Group as net results divided by total equity save non-convertible preferential shares and
minority interests. The Board of Directors also monitors the level of dividends distributed to holders of common
shares.
The Board of Directors tries to maintain equilibrium between higher returns that would be feasible through higher
borrowing levels and the advantages and security offered by a strong and robust capital structure.
The Group does not have a specific plan for own shares purchase.
There were no changes in the approach adopted by the Group in how capital was managed during the financial
year.
a) Credit risk
The Financial assets subject to credit risk are as follows:
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Trade & Other receivables – Current 291,336 320,989 248,118 265,760 Trade & Other receivables – Non-current 34,320 15,203 33,750 42,487 Less: Other downpayments (2,910) (4,099) (339) (966) Tax assets (19,505) (36,983) (12,737) (27,230) Other receivables (13,721) (4,420) (11,597) (2,543) Subtotal 289,520 290,690 257,196 277,508
Annual Financial Report of 31st December 2023
144
The balances included in Receivables according to maturity can be classified as follows:
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Neither past due nor impaired 244,535 260,137 224,743 260,193 Overdue - Up to 6 months 39,210 29,414 31,510 16,791 - Over 6 months 5,775 1,139 943 523 Total 289,520 290,690 257,196 277,508
The movement in the caption of provision for impairment was as follows:
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Balance as at 1 January 7,990 8,731 11,657 6,386 Writte-offs (145) (92) (110) - Impairment loss recognized 256 2,051 256 5,402 Impairment loss reversed (123) (425) (610) (131) Mergers and absorptions - (2,275) - - Other reclasses (16) - (16) - Balance as at 31 December 7,963 7,990 11,178 11,657
The maximum exposure to credit risk for trade and other receivables by geographic region was as follows:
Amounts in EUR thousand 2023 2022 2023 2022 Greece 60,197 51,313 96,489 105,973 Other EU Member States 164,222 146,444 111,736 108,691 Other European countries 28,561 56,550 24,473 44,748 Asia 7,467 11,156 2,036 4,319 America (North & South) 16,648 21,340 12,606 12,253 Africa 12,042 3,586 9,715 1,333 Oceania 383 301 141 191 Total 289,520 290,690 257,196 277,508
The Group insures the greater part of its receivables in order to be secured in case of failure to collect.
b) Liquidity risk
GROUP 31/12/2023 Carrying Up to 1 1 to 2 2 to 5 Over 5 Amounts in EUR thousand Amount year years years years Total Bank loans 250,950 95,587 49,784 88,993 53,181 287,546 Lease liabilities 10,457 2,975 3,041 4,161 957 11,134 Bond issues 592,459 75,175 93,726 421,568 64,663 655,132 Derivatives 7,041 3,442 3,217 381 1,157 8,198 Contract Liabilities 10,923 10,894 39 - - 10,933 Trade and other payables 407,967 396,603 4,961 6,404 - 407,967 Total 1,279,798 584,677 154,768 521,507 119,958 1,380,910
Annual Financial Report of 31st December 2023
145
GROUP 31/12/2022 Carrying Up to 1 1 to 2 2 to 5 Over 5 Amounts in EUR thousand Amount year years years years Total Bank loans 283,493 121,659 46,075 96,976 46,697 311,408 Lease liabilities 9,800 4,341 2,597 1,991 972 9,902 Bond issues 697,460 106,629 115,457 221,999 336,641 780,726 Derivatives 7,898 6,650 4 1,245 - 7,898 Contract Liabilities 8,386 8,357 69 - - 8,427 Trade and other payables 398,568 384,664 4,136 9,768 - 398,568 Total 1,405,606 632,301 168,338 331,979 384,311 1,516,929
COMPANY 31/12/2023 Carrying Up to 1 1 to 2 2 to 5 Over 5 Amounts in EUR thousand Amount year years years years Total Bank loans 143,216 19,171 24,441 76,737 53,181 173,530 Lease liabilities 5,716 1,654 1,138 2,304 869 5,964 Bond issues 579,027 70,122 89,866 416,159 64,663 640,810 Derivatives 8,040 3,285 3,217 381 1,157 8,040 Contract Liabilities 5,620 5,620 - - - 5,620 Trade and other payables 374,385 363,020 4,961 6,404 - 374,385 Total 1,116,005 462,871 123,623 501,985 119,870 1,208,350
COMPANY 31/12/2022 Carrying Up to 1 1 to 2 2 to 5 Over 5 Amounts in EUR thousand Amount year years years years Total Bank loans 160,376 49,753 28,563 66,455 42,697 187,469 Lease liabilities 7,117 3,479 1,859 1,034 809 7,182 Bond issues 678,423 100,520 110,012 212,225 336,641 759,399 Derivatives 7,769 6,520 4 1,245 - 7,769 Contract Iiabilities 1,727 1,727 - - - 1,727 Trade and other payables 326,845 321,790 4,136 9,768 - 335,694 Total 1,182,256 483,789 144,575 290,726 380,147 1,299,238
Annual Financial Report of 31st December 2023
146
c) Exchange rate risk
31/12/2023 GROUP Amounts in EUR thousand EUR USD GBP BGN RON ΛΟΙΠΑ Trade and other 260,158 57,290 6,602 4,415 10 1 receivables Cash & cash equivalents 29,274 10,401 278 451 113 - Total Receivables 289,432 67,691 6,880 4,866 123 1 Loans and Borrowings 852,857 - - 1,010 - - Trade and other payables 362,452 36,152 659 8,663 - 42 Contract liabilities 8,198 2,530 - 195 - - Total Liabilities 1,223,507 38,682 659 9,868 - 42 Derivatives for risk hedging - 5,988 (4,837) - - - (Nominal Value) Total risk (934,075) 34,997 1,385 (5,002) 123 (42)
31/12/2022 GROUP Amounts in EUR thousand EUR USD GBP BGN RON ΛΟΙΠΑ Trade and other 289,863 31,407 7,837 7,024 16 9 receivables Cash & cash equivalents 22,474 10,872 688 995 167 - Total Receivables 312,338 42,278 8,524 8,019 182 9 Loans and Borrowings 990,169 - 584 - - - Trade and other payables 336,837 40,643 917 20,104 28 39 Contract liabilities 4,688 3,177 520 - - Total Liabilities 1,331,694 43,820 1,502 20,624 28 39 Derivatives for risk hedging 1,016 8,746 321 - - - (Nominal Value) Total risk (1,018,341) 7,204 7,344 (12,605) 155 (30)
Annual Financial Report of 31st December 2023
147
31/12/2023 COMPANY Amounts in EUR thousand EUR USD GBP RON ΛΟΙΠΑ Trade and other 239,569 46,527 1,903 - 1 receivables Cash & cash equivalents 19,437 7,041 146 - - Total Receivables 259,005 53,569 2,049 - 1 Loans and Borrowings 727,959 - - - - Trade and other payables 340,646 33,068 643 - 27 Contract liabilities 5,107 513 - - - Total Liabilities 1,073,712 33,582 643 - 27 Derivatives for risk - 6,863 (8) - - hedging (Nominal Value) Total risk (814,706) 26,850 1,397 - (27)
31/12/2022 COMPANY Amounts in EUR thousand EUR USD GBP RON ΛΟΙΠΑ Trade and other 288,149 15,555 4,535 - 9 receivables Cash & cash equivalents 10,148 6,982 546 - - Total Receivables 298,296 22,537 5,080 9 Loans and Borrowings 845,332 - 584 - - Trade and other payables 289,746 36,182 878 - 39 Contract liabilities 1,512 214 - - - Total Liabilities 1,136,590 36,397 1,462 39 Derivatives for risk 1,016 29,381 3,500 - - hedging (Nominal Value) Total risk (837,277) 15,521 7,118 - (30)
The FX rates that were used for the foreign exchange translation were:
Average Spot at the year end 2023 2022 2023 2022 USD 1.0813 1.0530 1.1050 1.0666 GBP 0.8698 0.8528 0.8691 0.8869 ROΝ 4.9467 4.9313 4.9756 4.9495 TRY 25.7597 17.4088 32.6531 19.9649
Annual Financial Report of 31st December 2023
148
BGN is pegged with the Euro which is the reporting and operating currency of the Group and the Company with rate
1.9558 and as a result there is no foreign exchange risk.
Sensitivity analysis
A change in the price of Euro against other currencies that the Group trades would have corresponding impact on the
income statement and in equity as follows:
GROUP Profit or loss Equity, net of tax EUR EUR EUR EUR Amounts in EUR thousand Strengthening Weakening Strengthening Weakening 2023 USD (10% movement in relation to EUR) (2,917) 2,387 2,879 (3,519) GBP (10% movement in relation to EUR) 651 (795) 145 (177) RON (10% movement in relation to EUR) 2 (3) 2 (3) 2022 USD (10% movement in relation to EUR) 161 (131) 614 (751) GBP (10% movement in relation to EUR) 720 (880) 753 (920) RON (10% movement in relation to EUR) 3 (3) 3 (3)
COMPANY Profit or loss Equity, net of tax EUR EUR EUR EUR Amounts in EUR thousand Strengthening Weakening Strengthening Weakening 2023 USD (10% movement in relation to EUR) 1,644 (2,010) 2,209 (2,700) GBP (10% movement in relation to EUR) 2,091 (2,555) 146 (179) RON (10% movement in relation to EUR) 365 (446) - - 2022 USD (10% movement in relation to EUR) (1,181) 1,444 1,323 (1,617) GBP (10% movement in relation to EUR) (1,421) 1,736 730 (892) RON (10% movement in relation to EUR) (255) 311 - -
Annual Financial Report of 31st December 2023
149
d) Interest rate risk
The following financial liabilities related to loans and borrowings and finance leases:
Amounts in EUR thousand 2023 2022 2023 2022 Fixed-rate instruments Financial assets - 4,500 3,000 7,500 Financial liabilities (328,582) (296,457) (325,026) (291,605) Variable-rate instruments Financial assets 4,500 4,500 7,500 7,500 Financial liabilities (525,285) (694,297) (402,933) (554,311) Interest rates swap 160,500 182,500 160,500 182,500
Sensitivity analysis
The effects of an increase in the interest rates by 25 basis points both in the Income statement and the Equity is being
depicted as follows:
GROUP COMPANY 0.25% 0.25% 0.25% 0.25% Amounts in EUR thousand increase decrease increase decrease 2023 Financial liabilities 912 (912) 912 (912) 2022 Financial liabilities (1,279) 1,279 (1,279) 1,279
e) Change of Metal prices
The production of aluminium, copper and alloys require significant quantities of raw materials, as a result, the
Group and the Company purchase raw materials of copper, aluminium and zinc for further fabrication. In order to
secure the unhindered operation of the Group and the Company, considering the usual production cycle as well as
the availability of raw materials from parameters that cannot be controlled either by the Group or the Company
(indicatively and not exhaustively, the global balance of supply and demand, implementation of new laws or
regulations related to the production and movement of raw materials etc.), the Group and the Company maintain
a safety stock, the amount of which is set by the Management considering the production process and the overall
market conditions, a practice which is followed by almost all the competitors and market participants and is
embedded in the core characteristics of the operation of the production facilities.
For the usual procurement of raw materials and sales the Group and the Company employ cash flow hedge
accounting to fortify their cash flows from the changes in the prices of metals. According to the set hedging policy,
the Group and the Company close positions in the LME (London Metal Exchange) for each purchase or sale of
physical inventory conducted with suppliers and customers respectively. At the closing of the market position the
result is charged to the statement of profit or loss as well as the completion of the sale or purchase of the physical
Annual Financial Report of 31st December 2023
150
inventories of the products or raw materials, while the open positions are being measured in the statement of other
comprehensive income as each reporting period.
In addition, it is noted that the Group and the Company determine the cost of inventory by applying the annual
average weighted cost method and measure the inventory at each reporting period at the lower between
acquisition cost or net realisable value, including the safety stock. The changes from the valuation of safety stock
cause fluctuations in the variable cost, which however are not source of cash flow risk, considering the steady
retention of the said stock. As a result of the above, a sensitivity analysis of the change of metal prices on the safety
stock is not presented.
29. Fair value of financial assets
The different levels have been defined as follows:
− Level 1: consists of exchange traded derivatives and shares which are based on market prices.
− Level 2: consists of OTC derivatives that are based on prices from brokers.
− Level 3: Includes unlisted shares. They come from estimates of the Company as there are no observable market data.
2023 GROUP Amounts in EUR thousand Level 1 Level 2 Level 3 Total Other investments 3 - 28,467 28,470 Derivatives Financial Assets 3,454 10,594 327 14,375 3,457 10,594 28,794 42,845 Derivatives Financial Liabilities (317) (6,723) - (7,041) 3,140 3,870 28,794 35,804 2022 GROUP Amounts in EUR thousand Level 1 Level 2 Level 3 Total Other investments 3 - 5,258 5,261 Derivatives Financial Assets 1,080 44,682 - 45,762 1,080 44,682 5,261 51,024 Derivatives Financial Liabilities (2,863) (5,036) - (7,898) (1,782) 39,646 5,261 43,126
2023 COMPANY Amounts in EUR thousand Level 1 Level 2 Level 3 Total Other investments 3 - 28,213 28,217 Derivatives Financial Assets 3,307 10,359 279 13,945 3,310 10,359 28,493 42,162 Derivatives Financial Liabilities (171) (6,712) (1,157) (8,040) 3,139 3,647 27,335 34,122
Annual Financial Report of 31st December 2023
151
2022 COMPANY Amounts in EUR thousand Level 1 Level 2 Level 3 Total Other investments 3 - 4,991 4,994 Derivatives Financial Assets 574 43,506 - 44,080 574 43,506 4,994 49,074 Derivatives Financial Liabilities (2,751) (5,017) - (7,769) (2,178) 38,489 4,994 41,305
The derivatives of level 1 comprise of futures traded in ‘London Metal Exchange – LME’ for which there is an observable market
price for all prompt dates on which the contract is settled. The mark-to-market valuations of the futures are based on evening
evaluations of LME, as well as the counterparties valuations in contracts, which are LME brokers. Other investments classified
as level 1 include listed equity securities. The derivatives classified as level 2 comprise of forward FX contracts and Commodity
Forward Start Swaps, the fair values of which based on broker/broker prices. Exchange contracts are also categorized as level
2 (IRS), the fair value of which is determined by discounting future cash flow using the interest rate curves at the reference
date and the credit risk that incorporated into the agreement. Level 3 financial instruments include equity securities and the
rights on participations subscribed to the minority which are not traded in active markets. Equity securities are valued using
the adjusted net asset method, whenever this is deemed necessary. The valuation of rights is based on a widely accepted
methodology valuation of options to buy and sell determining the prices it takes into account:
• the expected turnover and EBITDA margins of the business,
• risk free rate
• the duration until the rights expire
• the variability, which is defined as the range of values for all data used in valuation model.
For more details on the rights on participations you can see in note 14.
Equity securities are measured through the statement of Other Comprehensive Income. Exception is the participation in the
affiliated COSMOS ALUMINUM where the fair value measurement is done through the results due to the existence of options
attached to the participation.
Derivatives related to electricity purchase contracts are classified as "level 3" financial instruments as their valuation is based
on non observables (electricity curves).
The fair value of the following financial assets and financial liabilities measured at amortized cost approximate their book value:
• Commercial and other requests,
• Cash and cash equivalents,
• Commercial and other obligations
The fair value of long-term variable rate loans approximates their current value. For the rest of the loans at fixed interest rates,
their fair value on 31.12.2023 amounts to Euro 300 million (2022: Euro 260 million).
The movement of investments classified as Level 3 was as follows:
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Balance at 1 January 5,261 4,231 4,994 4,189 Additions 26,634 720 26,634 495 Fair value adjustment through profit and loss 216 310 216 310 Impairment (54) - (40) - Fair value adjustment through OCI (3,588) - (3,588) - Balance as at 31 December 28,470 5,261 28,217 4,994
Annual Financial Report of 31st December 2023
152
During the fiscal year, there were no reclassifications of financial assets among levels.
30. Commitments
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Tangible Assets 11,741 6,829 3,397 6,784
31. Contingent Liabilities
The tax liabilities of the Company and its subsidiaries for certain financial years have not been audited by taxation authorities
and thus are not finalized yet for such years.
The table below presents unaudited tax years of the companies consolidated by ELVALHALCOR SA by applying either full
consolidation or equity method.
Company Country Business Direct Indirect Consolidation method Unaudited tax year ELVALHALCOR S.A. - GREECE Industrial - - - 2018 – 2023 SOFIA MED S.A. (1) BULGARIA Industrial 89,56% 0,00% Consolidation in full 2016 - 2023 EPIRUS METALWORKS (1) GREECE Industrial 85,00% 0,00% Consolidation in full 2019 - 2023 TECHOR S.A. (1) GREECE Industrial 100,00% 0,00% Consolidation in full 2018 - 2023 GREECE Metallurgical ELKEME S.A. (2) 92,50% 0,00% Equity Method 2010-2023 research VIEXAL S.A. (2) GREECE Services 26,67% 0,00% Equity Method 2018 - 2023 VIENER S.A. (2) GREECE Energy 41,32% 0,00% Equity Method 2012-2023 ΙΝΤΕRΝΑΤΙΟΝΑL TRADE S.A. (2) BELGIUM Commercial 27,97% 0,00% Equity Method - TECHOR PIPE SYSTEMS (3) ROMANIA Industrial 0,00% 100,00% Consolidation in full - HC ISITMA A.S. - TURKEY Industrial 50,00% 0,00% Equity Method - STEELMET S.A. (2) GREECE Services 29,56% 0,00% Equity Method 2018 - 2023 SYMETAL S.A. (1) GREECE Industrial 100,00% 0,00% Consolidation in full 2018 - 2023 ELVAL COLOUR S.A. (1) GREECE Industrial 100,00% 0,00% Consolidation in full 2018 - 2023 VEPAL S.A. (1) GREECE Industrial 100,00% 0,00% Consolidation in full 2018 - 2023 ANOXAL S.A. (1) GREECE Industrial 100,00% 0,00% Consolidation in full 2018 - 2023 VIOMAL S.A (1) GREECE Industrial 75,00% 0,00% Consolidation in full 2018 - 2023 ROULOC S.A. (4) GREECE Industrial 0,00% 100,00% Consolidation in full 2018 - 2023 ELVAL COLOUR IBERICA S.A. (4) SPAIN Commercial 0,00% 100,00% Consolidation in full - UACJ ELVAL HEAT EXCHANGER - GERMANY Commercial 49,00% 0,00% Equity Method - MATERIALS GmbH NEDZINK B.V. NETHERLANDS Industrial 50,00% 0,00% Equity Method - CABLEL WIRES S.A (1) GREECE Industrial 100,00% 0,00% Consolidation in full 2019-2023 ELVIOK S.A (1) GREECE Services 100,00% 0,00% Consolidation in full 2019-2023 (1) Subsidiary of ELVALHALCOR
(2) Subsidiary of VIOHALCO
(3) Subsidiary of Techor S.A.
(4) Subsidiary of Elval Colour S.A.
32. Related parties
Affiliated parties shall mean all companies and natural persons with whom direct (subsidiaries, associated companies,
joint ventures, collaborating companies, shareholders or management with executive tasks) or indirect relation
(entities controlled by shareholders, employees performing administrative tasks or close relatives of the latter) is
established.
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Sales of Goods Subsidiaries - - 297,963 333,521 Equity-accounted investees 941,913 1,296,154 612,359 889,638 Joint ventures 70,703 6,337 70,703 6,337 Other related parties 52,361 138,768 106,531 199,651 1,064,977 1,441,260 1,087,557 1,429,147
Annual Financial Report of 31st December 2023
153
Rendering of services Subsidiaries - - 4,570 3,100 Equity-accounted investees 842 1,002 760 825 Joint ventures 1,717 312 1,717 224 Other related parties 3,663 2,627 2,277 2,845 Parent - - - - 9,325 6,222 3,941 6,993 Sales of property, plant & equipment Subsidiaries - - 37 30 Equity-accounted investees - - 26 81 Joint ventures - - - - Other related parties 61 16,454 14 15,668 61 16,454 77 15,779 Purchases of goods Subsidiaries - - 42,985 53,545 Equity-accounted investees 48 165 226 333 Joint ventures 19,200 -19,200- Other related parties 98,624 111,844 53,39457,954 117,872 112,008 115,805 111,833 Purchases of services Subsidiaries - - 52,112 59,196 Equity-accounted investees 45,556 65,834 25,102 26,769 Joint ventures 1,091 715 1,091 697 Other related parties 11,417 9,754 9,154 6,922 Parent 130 130 130 130 58,194 76,434 87,589 93,714 Purchase of PPE Subsidiaries - - - 250 Equity-accounted investees 2,095 3,061 1,743 2,367 Joint ventures 9,423 22,422 8,109 20,596 11,518 25,483 9,851 23,213
The services, sales and purchases of good from continuing activities with related parties are carried out with the
established price list as with third parties.
Annual Financial Report of 31st December 2023
154
End-of-year balances from sale / purchase of goods, services, fixed assets, as follows:
GROUP COMPANY Amounts in EUR thousand 31.12.2023 31.12.2022 31.12.2023 31.12.2022 Short term receivables from related parties Subsidiaries - - 59,597 86,639 Equity-accounted investees 70,907 71,078 35,116 36,888 Joint ventures 24,939 9,426 24,904 9,391 Other related parties 59,615 61,702 69,046 70,265 Parent -1- - 155,461 142,207 188,663 203,182 Short term liabilities to related parties Subsidiaries - - 17,857 14,940 Equity-accounted investees 7,704 10,282 2,259 4,760 Joint ventures 61 41 61 41 Other related parties 10,526 12,514 6,631 10,802 Parent -4,314-4,09918,291 27,151 26,808 34,642
Services towards and from affiliated parties, as well as sales and purchases of goods, are realized in accordance with
the fee schedules, which apply for non-affiliates. The Group and the Company have not recorded any impairment
loss in respect of intercompany balances as there are only minor delays in payment for which interest is invoiced.
The only exception is the impairment provision of 1.9 million euros, which concerns a long-term loan claim of
ELVALHALCOR from the affiliated NedZINk. More information in note 35. For 2023 the amount of interest invoiced
to related by parent ELVALHALCOR amounted to Euro 2.5 million compared to Euro 0.6 million in 2022, while at
Group level corresponding charges for 2023 amounted to Euro 2.2 million compared to Euro 0.2 million in 2022.
Concerning loan commitments to related parties, these are presented in specific line in Statement of Financial
Position (refer to note 35 for more information)
Sofia Med SA buys from ELVALHALCOR raw materials and semi-finished products of copper and copper alloys,
depending on its needs, as well as finished products which distributes to the Bulgarian market. In addition,
ELVALHALCOR provides technical, administrative, and commercial support services to Sofia Med. Respectively,
ELVALHALCOR buys from Sofia Med raw materials, semi-finished products according to its needs, as well as finished
products which distributes to the Greek market.
ELVALHALCOR purchases aluminium scrap from the production process of Symetal, which is re-used as raw material
(re-casting). ELVALHALCOR, occasionally, sells spare parts and other materials to Symetal and provides other
supportive services. Finally, ElvalHalcor sells final spare parts and other materials to SYMETAL and provide various
services.
Annual Financial Report of 31st December 2023
155
ELVALHALCOR S.A. sells final aluminium products to Viomal, which constitute raw material for the latter and Viomal
sells back to ELVALHALCOR the returns from its production process.
Elval Colour S.A. buys final products from ELVALHALCOR, which are used as raw material by the latter and
ELVALHALCOR processes Elval Colour’s materials.
Vepal S.A. processes ELVALHALCOR’s products and delivers semi-finished products. ELVALHALCOR sells raw
materials to Vepal and also provides supporting administrative services to the latter.
Anoxal S.A., also, processes ELVALHALCOR’s raw materials and ELVALHALCOR provides administrative support to
Anoxal. Furthermore, Anoxal purchases from ELVALHALCOR other materials (spare parts and other consumables)
for its production process.
Epirus Metalworks purchases raw materials from ELVALHALCOR, proceed with the process and then sales finished
products to ELVALHALCOR. ELVALHALCOR provides administrative services to Epirus Metalworks.
Cenergy Group purchases raw materials from ELVALHALCOR according to their needs. In its turn, it sells copper
scrap to ELVALHALCOR from the products returned during its production process.
Steelmet Group provides ELVALHALCOR with administration and organization services.
International Trade exports ELVALHALCOR’s Group products to various foreign countries with the delivery provided
directly from the production facilities of the Group to many customers, the majority of them does not represent
10% of total sales according to the credit policy of the Group. ElvalHalcor’s transactions with INTERNATIONAL
TRADE are approved by the Board of Directors and are published to G.E.MI. (ΓΕΜΗ), pursuant to art. 99-101 of the
Law L4548/2018.
Metal Agencies LTD acts as a merchant - central distributor of ELVALHALCOR Group in Great Britain.
TEPROMKC Gmbh trades ELVALHALCOR’s products in the German market.
Steelmet Romania trades ELVALHALCOR’s products in the Romanian market.
Teka Systems S.A. undertakes to carry out certain industrial constructions for ELVALHALCOR and provides
consulting services in IT issues and SAP support and upgrade.
Teka Engineering undertakes the processing of various industrial constructions on its behalf ELVALHALCOR.
Anamet S.A. provides ELVALHALCOR with considerable quantities of copper and brass scrap.
Viexal SA provides ELVALHALCOR with travelling services.
Viohalco S.A. rents buildings and industrial premises to ELVALHALCOR.
Tepro Metall AG trades (through its subsidiary MKC) ELVALHALCOR products and represents the latter in the
German market.
Genecos, as well as its subsidiary Reynolds Cuivre sell ELVALHALCOR’s products and represent ELVALHALCOR in the
French market.
ETEM Gestamp Aluminium Extrusions purchases from ELVALHALCOR aluminium billets and sells in its turn
aluminium scrap from its production process to ELVALHALCOR.
GESTAMP Etem Automotive Bulgaria sells aluminium scrap from its production process to ELVALHALCOR.
UACJ ELVAL HEAT EXCHANGER MATERIALS purchases from ELVALHALCOR finished aluminium products and
distributes them to international markets.
ETEM COMMERCIAL SA for the first trimester of 2023, rents industrial facilities from ELVALHALCOR, purchases
aluminium billets and sells in its turn aluminium scrap from its production process to ELVALHALCOR.
Annual Financial Report of 31st December 2023
156
GROUP COMPANY Amounts in EUR thousand 31.12.2023 31.12.2022 31.12.2023 31.12.2022 Compensation to BoD members and executives 16,710 12,580 6,653 4,694 16,710 12,580 6,653 4,694
33. Audit fees
The statutory auditors of the Company for the financial year 2023, “PriceWaterHouseCoopers Auditing Company
SA” (AM SOEL 113) (268 Kifisias Av. PC:15232, Chalandri, tel: 2106874400).
Regarding financial year 2023, the fees of the above auditors in respect of audit of the financial statements of the
Company amounted to 251.895 Euros plus VAT (2022: Euros 238.075), for tax audit to 49.700 Euros plus VAT (2022:
47.040 Euros) and fees for other services to 229.080 Euros plus VAT (2022: 71.280 Euros). At a Group level they
amounted to 385.070 Euros (2022: 377.050 Euros), for tax audit 75.850 Euros (2022: 71.715 Euros) and fees for
other services to 257.480 Euros (2022: 96.280 Euros).
34. Right of use of Assets
The movement in the right of use of assets for the fiscal year and the respective previous presented below:
GROUP Buildings / Transportation Land Machinery Total Amounts in EUR thousand Warehouses equipment Cost Balance as at 1 January 2022 Additions 274 5,383 17,470 8,281 31,408 Terminations 702 -2,3163,018 Modifications -(128)-(1,030)(1,159) Transfer to Held for Sale 32 27 - 77136 Balance as at 31 December 2022 -(4,449)-(778)(5,227) Accumulated depreciation Balance as at 1 January 2022 (51)(1,378)(4,030) (3,927) (9,386) Depreciation of the period (26)(728)(828)(1,743)(3,325) Terminations -118-9271,046 Transfer to Held for Sale -1,751-3652,116 Balance as at 31 December 2022 (77)(238)(4,858) (4,377) (9,550) Buildings / Transportation Land Machinery Total Amounts in EUR thousand Warehouses equipment Cost Balance as at 1 January 2023 307 1,535 17,470 8,865 28,176 Additions -2,872-4,6137,485 Terminations -(81)-(1,335)(1,416) Modifications (18)-- 30 12 Transfer to PPE --(17,470) -(17,470)Transfer to Held for Sale -(906)- - (906) Balance at 31 December 2023 288 3,420 -12,17315,881
Annual Financial Report of 31st December 2023
157
Accumulated depreciation Balance as at January 1 2023 (77)(238)(4,858) (4,377) (9,550) Depreciation of the period (26)(199)(414)(1,930)(2,568) Terminations -81-1,2361,317 Transfer to PPE --5,271 -5,271Transfer to Held for Sale -42- - 42 Balance as at 31 December 2023 (103)(314)-(5,071)(5,487) Carrying amounts At 1 January 2022 223 4,005 13,440 4,354 22,021 At 31 December 2022 230 1,297 12,612 4,488 18,627 At 31 December 2023 186 3,106 -7,10310,394
COMPANY
Buildings / Transportation Machinery Total Amounts in EUR thousand Warehouses equipment Cost Balance as at 1 January 2022 1,367 17,470 4,257 23,093 Additions - - 645 645 Terminations - - (479) (479) Modifications - - 32 32 Balance at 31 December 2022 1,367 17,470 4,455 23,291 Accumulated depreciation Balance at 1 January 2022 (94)(4,030)(1,981) (6,105) Depreciation (52)(828)(852)(1,732)Terminations --475 475Modifications -- - - Balance at 31 December 2022 (146)(4,858)(2,358) (7,361)
Buildings / Transportation Machinery Total Amounts in EUR thousand Warehouses equipment Balance as at 1 January 2023 1,367 17,470 4,455 23,291 Additions 176 -3,1233,299 Terminations - - (893)(893) Modifications - - 28 28 Other movements -(17,470)-(17,470)Balance at 31 December 2023 1,543 -6,7138,256
Annual Financial Report of 31st December 2023
158
Accumulated amortisation and impairment losses Balance as at January 1 2023 (146) (4,858) (2,358) (7,361) Depreciation (59) (414) (999) (1,471) Terminations - - 836 836 Other movements - 5,271 - 5,271 Balance as at 31 December 2023 (204) - (2,520) (2,724) Carrying amounts At 1 January 2022 1,273 13,440 2,276 16,989 At 31 December 2022 1,221 12,612 2,097 15,930 At 31 December 2023 1,339 - 4,193 5,531
Rental fees was recognized in the income statement for fiscal year and the respective prior year presented below:
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Variable rental fees 55 64 25 29 Low value rental fees 65 96 12 15 Short term rental fees 3,672 3,249 2,615 1,841 (Gain)/loss due to difference between 7 (19) 2 (18) asset/liability on early termination Other expenses related to leasing contracts 162 110 97 34 3,961 3,501 2,752 1,901
Interest expense related to financial leases amounted for the Group Euro 410,6 thousand (2022: Euro 577,2
thousand) and for the Company Euro 272,9 thousand (2022: Euro 402,8 thousand).
35. Long and short-term receivables from loans
On 15.03.2023, the Company after securing the necessary approvals based on articles 99-101 of Law 4548/2018 on
the fairness of the transaction, jointly with Koramic Holding N.V., with percentage corresponding to their
participation of 50% in the associated Nedzink B.V. nominal value loan of Euro 11.5 million.
Long and short-term receivables from loans includes loans at amortized cost that have been given to its affiliated
companies Group and have received all necessary legal approvals. During period the Company and the Group
considering the revised provisions for the associated company NedZink recorded a loss impairment amounting to
Euro 1.9 million, which has been included in the profit and loss account "Impairment of receivables".
GROUP COMPANY Amounts in EUR thousand 2023 2022 2023 2022 Balance as at 1 January 4,500 5,745 7,500 8,745 Impairment (1,900) - (1,900) - Converted to share capital - (1,250) - (1,250) Interest income 284 196 594 241 Interest income received (63) (191) (63) (236) Balance as at 31 January 2,820 4,500 6,131 7,500
Annual Financial Report of 31st December 2023
159
36. Contractual Liabilities
The following table provides information regarding contractual liabilities.
Amounts in EUR thousand GROUP COMPANY 2023 2022 2023 2022 Balance as at 1 January 8,386 9,267 1,727 4,562 Revenue recognised (6,472) (7,452) (1,494) (4,163) New contract liabilities outstanding at year end 9,009 7,268 5,388 1,328 Foreign exchange differences - 29 - - Other reclassifications - (727) - - Balance as at 10,923 8,386 5,620 1,727
37. EBITDA and a-EBITDA
EBITDA: It is the measure of profitability of the entity before taxes, financial, depreciation and amortisation. It is
calculated by adjusting the depreciation and amortisation to the operating profit as this is reported in the statement
of profit and loss.
Amounts in EUR thousand GROUP COMPANY 2023 2022 2023 2022 Operating profit / (loss) 103,090 256,250 25,926 174,607 Adjustments for: + Depreciation of tangible assets 70,461 66,348 48,693 43,257 + Depreciation of right of use assets 2,568 3,325 1,471 1,732 + Amortisation 1,068 1,371 593 685 + Depreciation of investment property 739 543 1,783 1,692 - Amortisation of Grants (1,535) (1,673) (1,146) (1,254) EBITDA 176,390 326,163 77,320 220,719
a – EBITDA: adjusted EBITDA is a measure of the profitability of the entity after adjustments for:
• Metal result
• Restructuring Costs
• Special Idle costs
• Impairment of fixed assets
• Impairment of Investments
• Profit / (Loss) of sales of fixed assets and investments if included in the operational results
• Other impairments
Annual Financial Report of 31st December 2023
160
Amounts in EUR GROUP COMPANY thousand 2023 2022 2023 2022 EBITDA 176,390 326,163 77,320 220,719 Adjustments for: + Loss / - Profit from Metal Lag47,403 (61,517) 39,041 (45,568) + Losses from Fixed assets write-1,610 8,674 1,296 6,813 offs or impairments- Profit / + Loss from sale of Assets(264)(2,104)(190)(1,930)+ Reversal of Impairment(176)-(176)-- Loss from valuation of financial3,588 -- -instruments + Loss from sale of investment2,589 -- -+ Other extraordinary losses8,191 -8,191-a - EBITDA 239,330 271,216 125,483 180,034
GROUP COMPANY 31.12.2023 31.12.2022 31.12.2023 31.12.2022 (Α) Value of Metal in Sales 2,344,543 2,734,956 1,551,671 1,782,857 (B) Value of Metal in Cost of Sales(2,394,067) (2,693,176) (1,590,246) (1,752,719) (C) Result of Hedging Instruments2,121 19,736 (466)15,430(A+B+C) Metal Result in Gross Profit (47,403) 61,517 (39,041) 45,568
The “other extraordinary losses” includes non-operational impairments and could be considered as extraordinary
out of which Euro 1,9 million related to allowances of loans receivable (note 35) and Euro 5,5 million related to
remeasurement of the receivable concerning the Strategic Shareholder Agreement (note 18).
For the current and the respective previous period, the figures per segment were as follows:
ALUMINIUM Amounts in EUR thousand 2023 2022 Operating profit / (loss) 45,886 199,667 Adjustments for: + Depreciation51,127 49,211 - Amortisation of Grants(1,211) (1,289) EBITDA 95,802 247,589 EBITDA 95,802 247,589 Adjustments for: + Loss / - Profit from Metal Lag36,014 (44,027) + Losses from Fixed assets write-offs or impairments57 3,467 - Profit / + Loss from sale of Assets(123)(2,075) - Loss from valuation of financial instruments3,588 - + Loss from sale of investment2,589 - + Other extraordinary losses5,591 -
a - EBITDA 143,516 204,954
Annual Financial Report of 31st December 2023
161
ALUMINIUM Amounts in EUR thousand 2023 2022 (Α) Value of Metal in Sales 896,415 1,141,230 (B) Value of Metal in Cost of Sales (929,394) (1,103,496) (C) Result of Hedging Instruments (3,035) 6,292 (A+B+C) Metal Result in Gross Profit (36,014) 44,027
COPPER Amounts in EUR thousand 2023 2022 Operating profit / (loss) 57,204 56,583 Adjustments for: + Depreciation 23,708 22,376 - Amortisation of Grants (325) (384) EBITDA 80,588 78,575 EBITDA 80,588 78,575 Adjustments for: + Loss / - Profit from Metal Lag 11,389 (17,490) + Losses from Fixed assets write-offs or impairments 1,554 5,207 - Profit / + Loss from sale of Assets (141) (29) + Reversal of Impairment (176) - + Other extraordinary losses 2,600 -
a - EBITDA 95,814 66,262
COPPER Amounts in EUR thousand 31.12.2023 31.12.2022 (Α) Value of Metal in Sales 1,448,128 1,593,726 (B) Value of Metal in Cost of Sales (1,464,673) (1,589,680) (C) Result of Hedging Instrunments 5,156 13,444 (A+B+C) Metal Result in Gross Profit (11,389) 17,490
Annual Financial Report of 31st December 2023
162
38. Assets held for sale
Amounts in EUR thousand 31.12.2023 Tangible assets 11 Other non-current assets 1,123 Trade and other receivables 114 Cash and cash equivalents 280 Assets held for sale 1,529 Long term loans and lease liabilities 785 Trade and other payables 320 Short term loans and lease liabilities 59 Liabilities related to assets held for sale 1,163
Amounts in EUR thousand 31.12.2022 Tangible assets 17,907 Intangible assets 9,321 Other non-current assets 7,300 Inventories 26,295 Trade and other receivables 13,609 Cash and cash equivalents 3,434 Assets held for sale 77,867 Long term liabilities 175 Long term loans and lease liabilities 2,405 Trade and other payables 14,256 Short term loans and lease liabilities 4,277 Liabilities related to assets held for sale 21,113
On 12.12.2023, an agreement was signed between subsidiary “ELVAL COLOUR SINGLE MEMBER S. A.”, associate
“COSMOS ALUMINUM S. A.” and “AVANTECH O.E.” for the participation of last two in the capital increase of 100%
subsidiary company of “ELVAL COLOUR SINGLE MEMBER S. A.”, “ROULOC S.A.” aiming to expand its commercial
network and of its product portfolio.
As a result of above Corporate Transformation a) “ROULOC S.A.” the renaming of the company to "f-nous SOCIETY
ANONYMOUS" b) ELVALHALCOR, through its participation in "ELVAL COLOR SA", at the time of the above increase
of the share capital of "f-nous SOCIETY ANONYMOUS ", will hold a 35% in the share capital of "f-nous SOCIETY
ANONYMOUS ", while the new shareholders "COSMOS ALUMINUM" and "AVANTECH O.E." will hold 35% and 30%
respectively in the share capital of " f-nous SOCIETY ANONYMOUS ". The completion of the process of the above
Annual Financial Report of 31st December 2023
163
transformation is subject to the receipt of required, according to the Law, approvals from the General Assemblies
of the shareholders and from the competent authorities. Additionally, the company is not a main business line for
the Group either separate business line. For this reason, the Group reclassified the assets and obligations of the
subsidiary "ELVAL COLOR S.A.", "ROULOC S.A" in the fund "Assets held for sale" and "Liabilities classified with assets
held for sale" respectively. In the year 2022, assets and liabilities were classified as held for sale of the subsidiary of
"ELVALHALCOR"," ETEM EMPORIKI S.A. " following the merger decision and the "Shareholder Agreement" signed
between the shareholders of COSMOS ALUMINIUM and ELVALHALCOR, which was completed within 2023 (note
14).
39. Subsequent events
With the approval of the General Assembly from 02.01.2024 of the sole shareholder of the company "ROULOC
CONSTRUCTION COMMERCIAL AND PARTICIPATION SINGLE MEMBER SOCIETE ANONYME " it was decided to
a) reduce the nominal value of each share of the Company from three euros (€3,00) to one euro (€1,00) with
a corresponding increase of the total number of shares of the Company from one hundred thousand (100.000) to
three hundred thousand (300.000)
b) reduced by the amount of eighty-two thousand one hundred and thirty-four euros (€82.134,00) to set off
losses of equal amounts from previous years, with a cancellation of eighty two thousand one hundred thirty-four
(82.134) shares with a nominal value of one euro (€1,00) each, and increased by the amount of seven hundred
eighty two thousand one hundred and thirty four euros (€782.134,00) by cash payment and the issuance of seven
hundred and eighty two thousand one hundred and thirty four (€782.134) new shares registered shares, with a
nominal value of one euro (€1,00) each and
c) the renaming of the company to "f-nous SOCIETY ANONYMOUS".
The above increases in the share capital were certified by the 05.02.2024 decision of the Board of Directors the
company's.
There are no subsequent events to December 31, 2023, that significantly affect these financial statements and
should either be disclosed or amend the figures of the financial statements at the year end.
Annual Financial Report of 31st December 2023
164
Available information
No
DESCRIPTION
WEBSITE ADDRESS
WEBSITE MAP
1.
Annual Financial Report 2023
http://www.elvalhalcor.com/el/investor-
relations/reports-presentations/financial-
statements/
Home Page > Investor relations > Reports and
Presentations > Financial Statements
2.
Interim Financial Statements H1 2023
http://www.elvalhalcor.com/el/investor-
relations/reports-presentations/financial-
statements/
Home Page > Investor relations > Reports and
Presentations > Financial Statements
3.
Press releases during 2023
http://www.elvalhalcor.com/el/investor-
relations/regulatory-news/
Home Page > Investor relations > Announcements –
Publications > Press releases
4.
Announcements to the Stock Exchange during
2023
http://www.elvalhalcor.com/el/investor-
relations/regulatory-news/
Home Page > Investor relations > Announcements –
Publications > Announcements
213800EYWS2GY56AWP422023-12-31213800EYWS2GY56AWP422022-12-31213800EYWS2GY56AWP422023-01-012023-12-31213800EYWS2GY56AWP422022-01-012022-12-31213800EYWS2GY56AWP422022-12-31ifrs-full:IssuedCapitalMember213800EYWS2GY56AWP422023-01-012023-12-31ifrs-full:IssuedCapitalMember213800EYWS2GY56AWP422023-12-31ifrs-full:IssuedCapitalMember213800EYWS2GY56AWP422022-12-31ifrs-full:SharePremiumMember213800EYWS2GY56AWP422023-01-012023-12-31ifrs-full:SharePremiumMember213800EYWS2GY56AWP422023-12-31ifrs-full:SharePremiumMember213800EYWS2GY56AWP422022-12-31ifrs-full:MergerReserveMember213800EYWS2GY56AWP422023-01-012023-12-31ifrs-full:MergerReserveMember213800EYWS2GY56AWP422023-12-31ifrs-full:MergerReserveMember213800EYWS2GY56AWP422022-12-31ifrs-full:MiscellaneousOtherReservesMember213800EYWS2GY56AWP422023-01-012023-12-31ifrs-full:MiscellaneousOtherReservesMember213800EYWS2GY56AWP422023-12-31ifrs-full:MiscellaneousOtherReservesMember213800EYWS2GY56AWP422022-12-31ifrs-full:RetainedEarningsMember213800EYWS2GY56AWP422023-01-012023-12-31ifrs-full:RetainedEarningsMember213800EYWS2GY56AWP422023-12-31ifrs-full:RetainedEarningsMember213800EYWS2GY56AWP422022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800EYWS2GY56AWP422023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800EYWS2GY56AWP422023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800EYWS2GY56AWP422022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800EYWS2GY56AWP422023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800EYWS2GY56AWP422023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800EYWS2GY56AWP422022-12-31ifrs-full:NoncontrollingInterestsMember213800EYWS2GY56AWP422023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember213800EYWS2GY56AWP422023-12-31ifrs-full:NoncontrollingInterestsMember213800EYWS2GY56AWP422021-12-31ifrs-full:IssuedCapitalMember213800EYWS2GY56AWP422022-01-012022-12-31ifrs-full:IssuedCapitalMember213800EYWS2GY56AWP422021-12-31ifrs-full:SharePremiumMember213800EYWS2GY56AWP422022-01-012022-12-31ifrs-full:SharePremiumMember213800EYWS2GY56AWP422021-12-31ifrs-full:MergerReserveMember213800EYWS2GY56AWP422022-01-012022-12-31ifrs-full:MergerReserveMember213800EYWS2GY56AWP422021-12-31ifrs-full:MiscellaneousOtherReservesMember213800EYWS2GY56AWP422022-01-012022-12-31ifrs-full:MiscellaneousOtherReservesMember213800EYWS2GY56AWP422021-12-31ifrs-full:RetainedEarningsMember213800EYWS2GY56AWP422022-01-012022-12-31ifrs-full:RetainedEarningsMember213800EYWS2GY56AWP422021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800EYWS2GY56AWP422022-01-012022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800EYWS2GY56AWP422021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800EYWS2GY56AWP422022-01-012022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember213800EYWS2GY56AWP422021-12-31ifrs-full:NoncontrollingInterestsMember213800EYWS2GY56AWP422022-01-012022-12-31ifrs-full:NoncontrollingInterestsMember213800EYWS2GY56AWP422021-12-31iso4217:EURiso4217:EURxbrli:shares