METKA GROUP | ANNUAL REPORT 2014 - page 36-37

1. Mr Ioannis Mytilineos, father’s name George, mother’s name
Chairman and Managing Director – Executive Member;
2. Mr George Ikonomu, father’s name Alexandros, mother’s name
Vice President – Executive Member;
3. Mr Panagiotis Gardelinos, father’s name Antonios, mother’s name
Deputy Managing Director – Executive Member;
4. Mr Christos Pantzikas, father’s name Nikolaos, mother’s name
Executive Member;
5. Mrs Ekaterini Donta, father’s name Anastassios, mother’s name
Executive Member;
6. Mr Paul Smith, father’s name Michael, mother’s name Barbara,
Executive Member;
7. Mr Antonios Papantoniou, father’s name Nikolaos, mother’s name
Executive Member;
8. Mr George Pallas, father’s name Nikolaos, mother’s name
Non-Executive Member;
9. Mr Filippos Zotos, father’s name Evangelos, mother’s name
Non-Executive Member;
10. Mr Isosif Avagianos, father’s name Andreas, mother’s name
Independent Non-Executive Member;
11. Mr Nikolaos Bakirtzoglou, father’s name Charalambos, mother’s
name Georgia,
Independent Non-Executive Member.
According to article 3 par. 1 of law 3016/2002 relative to the corporate
governance, the General Assembly appointed Messrs. Avagianos and
Bakirtzoglou as independent members. The BoD’s mandate is four (4)
years and extended until the first General Assembly after its termina-
tion period without in any case surpassing five years. It also appointed
the members of the Audit Committee as follows:
Mr Filippos Zotos, father’s name Evangelos, mother’s name Kassiani
Mr Isosif Avagianos, father’s name Andreas, mother’s name Athina,
Mr Nikolaos Bakirtzoglou, father’s name Charalambos, mother’s name
C. Important events after 2014
In December 2014, METKA was announced as the bidder/temporary
contractor in the DEDDHE project, construction of distribution net-
works DD-206 in 4 areas with a total budget of
20.650.000. The con-
tract is expected to be signed within 2015.
Apart from the already mentioned there are no other important events
from the end of 2014 until the present.
D. Perspectives for 2015
The recovery trend that was observed in 2014 created prospects of
further acceleration during the present year, despite the fact that the
contribution of important factors, such as
investment and exports of goods is still
lower than desirable. Based on the overall
momentum created during the past year –
and depending on the degree to which it is
maintained – it is estimated that the Greek
economy could possibly achieve a growth
rate of more than 2% in 2015.
Two important external developments
could positively contribute to the country’s
recovery effort. The falling exchange rate
of the euro, as part of the ECB’s policies,
creates the ground for improved competi-
tiveness of and increased external demand
for Greek products and services. Falling
energy prices can contribute in the same
end, allowing reduced production costs.
However, the initial favorable outlook for
2015 can only be realized if certain condi-
tions are met. The risks and uncertainties
that have made their appearance since
the beginning of the year are weighing on
economic activity and are already stalling
A critical factor regarding the course of the
Greek economy in 2015 is the outcome of
the ongoing negotiations with the country’s
lenders. Until this process is completed,
a high level or reticence in the economy
will be maintained, impeding financial
decisions and creating new pressures on
The restoration of a stable economic cli-
mate directly depends on the achievement
and initiation of an agreement between
Greece and its partners, which will secure
the country’s place in the euro zone and
continue the provision of financial support,
until it can sustainably finance its borrowing
needs through the international markets.
The particular terms of the agreement will
be of significant importance, in the degree
to which they will allow its practical imple-
mentation and create improved conditions
for the consistent increase of investment
and growth.
The increase of domestic and foreign in-
vestment is a critical challenge, as its con-
tribution to the country’s GDP should al-
most double over the coming years, if Greece is to achieve the
desirable growth rates. Securing stability, continuity, transpar-
ency and clear rules in the domestic economic environment, is
a necessary prerequisite in order to drive investment which will
boost economic activity, create jobs and increase the national
income. To this end, it will be critical to pursue further reforms
in the country’s tax system, with an aim of making it simpler,
stable and more favorable for investment and extrovert business
Despite the continuing uncertainties in the domestic and inter-
national environment, METKA is expected to continue on a posi-
tive course in 2015. The company will maintain its focus on EPC
projects and on penetrating markets with strong energy needs.
At the same time, it will continue to pursue the enhancement of
its domestic projects’ portfolio, capitalizing on the competitive
advantages it has gained through the successful execution of
demanding international projects, even in areas with an unsta-
ble political and institutional environment.
METKA will keep being driven by the clear strategy of dynamic
and extrovert growth, which it has been successfully implement-
ing during the previous years, through the common efforts of its
Management and employees. Having as main advantages the
experience, the expertise and the international prestige that it
now enjoys, the company will continue to generate value for its
shareholders, its customers and the national economy.
Ε. Risks and Uncertainties
The activities of the Group are subject to various risks and un-
certainties, related mainly to the technical and timely completion
of the projects and their performance according to the guaran-
teed values.
The Group is active in the Greek territory as well as in Middle
East, Syria, North Africa, Turkey and countries of the European
Union. Therefore, it is subject to currency exchange risk which
may arise from the exchange rate of euros against other curren-
cies (mainly USD). This kind of risk may arise from transactions
in foreign currency or valuation of foreign currency reserves. In
order to manage this kind of risk, the Group’s Treasury takes
care to safeguard the Group’s reserves from changes in ex-
change rates. Concerning the company’s transactions with for-
eign institutions, these are mainly with European Group of Com-
panies transacting in euros, so there is no such risk.
Additionally, in order to control the currency risk in trade transac-
tions, the Group’s policy is to invoice in the same currency with
its clients/suppliers.
The Group is not subject to significant market risks (fluctuations
in the exchange rates, interest rates, market prices etc.), cred-
it risk, foreign currency risk and liquidity risk. This is achieved
through cooperation with reliable clients, recourse to short-term
bank borrowing only when funding is deemed necessary, and
invoicing mainly in the same currency with clients / suppliers.
According to Group’s risk management policy, an evaluation of
the risks related to its activities and operations, the planning of
methodology, the selection of the suitable financial products for
the reduction of risks and their implementation is performed in
accordance with the process approved by the Management.
It should be noted however that the sys-
tems and risk management policies by de-
fault offer potential but not absolute safety,
since although they are designed to limit
the possibility of the relevant risks and their
consequences, they cannot fully exclude
A potential major change in the global cir-
cumstances could create risks even with
trustworthy clients.
Subsequently, the factors of the basic risks
and uncertainties are analysed, as well as
the policies for their management and their
impact on the activities of the Group.
I. Credit Risk
The credit risk occurs when the inability of
the contracting parties to settle their obli-
gations could decrease the amount of the
future cash inflows from financial assets at
the date of the balance sheet. The Group
is regarded as not having any significant
concentrations of credit risk.
The Group implements procedures so as
to ensure that its receivables result from
customers with acceptable credibility
and reviews regularly the aging of its
The fact that the Company is not exposed
to significant credit risk from commercial
receivables is due to the nature of the ac-
tivities of the Group as well as its policy,
which is directed towards the collaboration
with big corporations of the Public Sector
and reliable foreign corporations with high
credit ratings.
The credit risk also exists in relation to the
cash and cash equivalents, the invest-
ments and financial derivatives. The risk
can result from weakness of the contract-
ing party to meet its obligations towards
the Group. The bank balances are retained
in bank institutions with high credit ratings
and the Company implements processes
which minimize its exposure to credit risk in
relation to each financial corporation.
II. Exchange Rate Risk
The exchange rate risk results from future
commercial transactions and recognized
assets and liabilities that are denominated
in currency which is not the functional cur-
rency of the Company.
Annual Report of the Board of Directors
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