Hellas I.S.A. - Nexans IFRS Report 2015 EN.pdfNEXANS HELLAS I.S.A. S.A. Register No.:...
Transcript of Hellas I.S.A. - Nexans IFRS Report 2015 EN.pdfNEXANS HELLAS I.S.A. S.A. Register No.:...
ANNUAL FINANCIAL REPORT
OF THE PERIOD JANUARY 1st
UNTIL DECEMBER 31st
2015
(pursuant to the provisions of
Article 4 of Law 3556/2007)
Hellas I.S.A.
NEXANS HELLAS I.S.A.
S.A. Register No: 2176/06/Β/86/06
General Commercial Registration No. 000282101000
Registered offices:15, Messoghion Av.GR-11526 Athens
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
2
NEXANS HELLAS S.A.
STATEMENTS OF THE MEMBERS OF THE BOARD OF DIRECTORS
(pursuant to the Article 4 par. 2 of the Law 3556/2007)
The undersigned: Christof Josef Barklage - Chairman of the Board of Directors
Stephane Iliades - Member of the Board of Directors and General Manager
George Chryssomallis - Member of the Board of Directors
hereby declare by virtue of Article 4 par. 2 (c) of Law 3556/2007 that:
The attached annual Financial Statements that have been prepared in line with the
applicable International Accounting Standards give a fair view of assets and liabilities,
equity and operating results of the company for the period 01.01-31.12.2015.
The attached annual Report of the Board of Directors gives a fair view of the evolution,
performance and position of the company including a description of the principal risks and
uncertainties it faces.
Athens, 29th March 2016
Chairman of the Board of Directors: Christof Josef Barklage
Member of the Board of Directors and
General Manager:
Stephane Iliades
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
3
Member of the Board of Directors: George Chryssomallis
NEXANS HELLAS I.S.A.
(S.A. Register No. 2176/06/B/86/06, General Electronic Commercial Registry No.
000282101000)
ANNUAL REPORT OF THE BOARD OF DIRECTORS
(in accordance with the provisions of Codified Law 2190/1920, Article 4 of Law 3556/2007
and the relevant Decisions made by the BoD of the Capital Market Committee for the
period
1st
January 2015 until 31st
December 2015)
Ladies and Gentlemen shareholders,
We have the honour to present you the Annual Financial Report that concerns the 41st accounting period
from 01.01.2015 to 31.12.2015 and includes: the Financial Statements as at 31st December 2015,
namely the Balance Sheet, the Statement of Comprehensive Income, the Statement of Changes in
Equity, the Cash Flow Statement and the Notes to the Financial Statements together with this report and
the statements of the Board of Directors, and to ask for your approval.
This report includes summary information on NEXANS HELLAS S.A., financial information aiming to
provide general update about the financial position, results and changes during 2015, as well as
significant events during the same period which had en affect on the company's financial statements.
This report sets out the main risks and uncertainties facing the company in the fiscal year 2016 and all
the transactions between the company and its related parties.
A) Business activity and financial figures in 2015
Our company’s business activity during 2015 was slightly decreased compared to 2014, with a
considerable change recorded in the demand for aluminium cables rather than copper cables.
Despite the stagnation in domestic construction activity and the reduced demand for cables by foreign
markets, the company has managed to contain its losses considerably compared to 2014.
At current metal prices, sales amounted to EUR 72 million, thus being decreased by 4.3% compared to
last year. If we consider sales at standard metal prices, the decrease in sales volume was marginal by
0.7% compared to the previous year, reflecting the aforementioned increased demand for aluminium
cables. In order to present the actual development of sales in this report, especially during periods
marked by strong volatility in metal prices, the company neutralises the effect of fluctuations in the metal
purchase price on the level of sales by using a fixed price for basic metals, i.e. copper and aluminium.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
4
Dec-15 % of sales Dec-14 % of sales Change %Domestic 38,475 53.6% 41,027 54.7% 6.2%Foreign 33,293 46.4% 33,968 45.3% 2.0%Total 71,768 100.0% 74,995 100.0% 4.3%
Dec-15 % of sales Dec-14 % of sales Change %Domestic 26,992 52.3% 26,733 51.4% 1.0%Foreign 24,639 47.7% 25,249 48.6% 2.4%Total 51,631 100.0% 51,982 100.0% 0.7%
Turnover at current metal prices (amounts in thousand Euros)
Turnover at standard metal prices (amounts in thousand Euros)
During the year 2015, the company delivered a number of orders, the most important of which were the
following:
Domestic General Market – electric installation cables and optical fibre cables
To PPC (Public Power Corporation) – low and medium voltage power cables
To OTE (Greek Telecom) - copper and fibre-optic cables
Foreign markets: European Union, Middle East and Africa
Sales in the general domestic market, excluding sales to Public Utilities, were slightly diminished due to
the general prolonged recession in Greece and particularly the lack of investments in the private
construction sector.
Sales to HEDNO increased significantly over the previous year as the company was the lowest bidder in
several tenders, while sales to OTE were lower compared to 2014, mainly due to the slowdown of
investments in “New Generation Infrastructure Networks”.
Exports remained stable despite the prolonged political turmoil experienced by the company’s
traditional markets in Africa.
The prices of raw materials and mainly of basic metals – copper and aluminium – during the year
remained at relatively stable levels.
However, the approach taken by the company to cover the risks arising from the fluctuations in market
metal prices, i.e. copper and aluminium, by directly linking the purchase price of these metals with the
selling price to customers, ensured to a large extent both the smooth development of corporate sales
and the stabilisation of profit margins at the target level.
Given the situation as described above, the company managed to contain its losses to a minimum
compared to 2014, after taking specific actions resulting from its participation in the transformation
programme.
Specifically, in 2015, the Management of the company focused its strategic priorities on three pillars, i.e.
improving the competitiveness of its products by applying new methods and procedures to production and
overall operations, maintaining its share in the markets where it operates and the dynamic management
of its activities, by focusing on increasing exports in an effort to counterbalance the expected drop in the
domestic market.
During 2015, the facilities of our plant at Aghia Marina (Fthiotis) performed satisfactorily. The
company’s branches in Attica (Agios Ioannis Rentis) and Thessaloniki (Kalochori), as well as the
distribution centre in Crete (Iraklio) maintained their high level of customer service.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
5
OPERATIONS
The sales of the company in 2015 at current metal prices amounted to €72 million compared to €75
million in 2014.
Losses before taxes for the financial year 2015 amounted to €940,000 compared to losses of €2.5
million in 2014.
To be noted that Nexans Group uses the index of "operating margin" in order to evaluate the business
performance of each company, this index being equal to net profit before interest and taxes and
expressed as a percentage of sales at standard metal prices. The company’s operating margin
company for 2015 was positive and totalled €292,000, an amount equal to 0.6% of the turnover (at
standard metal prices) versus losses of €1.9 million for 2014.
As mentioned in detail in section "Price Fluctuation Risk", the company buys and sells forward hedging
contracts in the metal market in order to compensate the potential risks from the fluctuation in the prices
of raw materials (copper and aluminium). Based on the rules of the International Financial Reporting
Standards, the company is also obliged to carry out an accounting assessment of all open contracts
traded on the metal exchange.
FINANCIAL FIGURES Dec-15 Dec-14 Change %
Sales at current metal prices 71.768 74.995 4.3%
Sales at standard metal prices 51.631 51.982 0.7%
Net earnings before interest, taxes and depreciation 1,529 -603
Percentages of sales at standard metal prices 3.0% 1.2% 355.3%
Operating margin (net earnings before interest & taxes) 292 -1.914
Percentages of sales at standard metal prices 0.6% 3.7% 115.4%
Net earnings before taxes -940 -2.501
Percentages of sales at current metal prices 1.3% 3.3% 60.7%
Percentages of sales at standard metal prices 1.8% 4.8% 62.2%
FINANCIAL RATIOS
The company's current assets were significantly decreased by €4.2 million, mainly due to the reduction
in trade receivables.
As a result of the above, the company experienced a decrease of inventories and cash in 2015.
Given the increased production volumes at the end of the year, the Company focused its efforts on
coordinating efficiently all the units concerned, towards achieving the minimum time between the order
itself, the completion of the production process and delivery to the customer.
Total short-term liabilities were decreased by €2.9 million, due to the decrease in short-term borrowing.
The main ratios expressing the financial position of the company are as follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
6
RATIOS Dec-15 Dec-14
Liquidity
(Current assets/ Short-term liabilities)1.13 1.15
Capital Structure
(Debt/ Equity)1.55 1.63
Inventory turnover in days
(Inventory/ Sales) x 365 days54 44
Equity return
(Net profits/Equity) 3.5% 9.9%
Receivables turnover in days
(Receivables/ Sales) x 365 days108 96
SOCIAL RESPONSIBILITY – ENVIRONMENT – HEALTH & SAFETY
One of the main duties of all units of Nexans Group is to develop a high sense of responsibility to the
society of which they are part. Professional conduct, integrity and impartiality are those elements that
allow us to gain the trust of our customers, shareholders, employees, associates and society in general.
The Nexans Group has already joined and signed the United Nations Global Compact
(www.unglobalcompact.org), which is a set of rules that companies join voluntarily. It consists of four
sections (Human Rights, Labour Standards, Environment and Anti-corruption) and includes ten
Principles.
Since 2011 the Group has also signed an agreement for sponsoring the “Electricians Without Borders”,
a union which strives to improve living conditions of populations who live in conditions of poverty and
isolation or who are victims of natural disasters by providing them with access to electricity and potable
water. Under this agreement, the Group provides half of the union’s requirements in cables for three
years, representing a significant financial investment.
In many countries, Nexans units make donations of materials, provide training courses, placements in
working places, sponsorships and scholarships as part of their support to educational establishments.
Help is provided to young people in order to improve their education, pursue their goals, decide for
their future and enter the labour market.
In addition, the Group has issued and implements a Code of Ethics and Business Conduct which
imposes the business conduct adopting the highest standards of Corporate Social Responsibility. All
Group companies and, naturally, Nexans Hellas have adhered to the Code.
In 2015, the performance of Nexans Hellas with respect to the various sections of the Code was
satisfactory and was briefly as follows:
Human Rights: The company does not allow any type of discrimination with respect to nationality,
race, sex, religion, age, sexual orientation, marital status, disability, political or philosophical beliefs
and trade unionism.
Labour Standards: The first priority of Nexans Hellas is to ensure a working environment meeting the
highest specifications of Health and Safety. The plant employs a Safety Engineer and an Occupational
Physician, while the “Labour Health and Safety Committee” consisting of employee representatives
performs its duties regularly. The company made significant investments aimed at improving safety and
health in the work place, while all workers have participated in training programmes on health and
safety matters. The company is certified for health and safety management according to OHSAS 18001.
The company condemns all forms of forced or child labour and requires from its suppliers and
subcontractors to behave accordingly.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
7
The company organises ongoing training courses for its employees in the context of the Continuous
Improvement Programme, while employees are evaluated and promoted on the basis of their merits,
solely and exclusively according to their skills and performance.
The Management of the company strives to maintain good relations with the plant's trade union, to
which about half the company’s personnel is affiliated, and applies the collective agreements and
arbitration decisions, concerning the terms of compensation and employment of the personnel, in an
accurate way.
Environment: Several years ago, the company, being fully aware of its responsibility for
environmental protection and sustainable development, developed and applies consistently an
environmental management system that is monitored by the central services of Nexans Group in
cooperation with external specialised advisors, for which the company has been awarded the EHP
(Environment Highly Protected) label. In the context of this system, Nexans Hellas takes all necessary
measures and makes adequate investments to ensure the quality and safety of its manufactured
products and production processes applied, so as to eliminate any pollution risk against the
environment. The company takes all expedient steps to reduce the consumption of raw materials and
energy, while all material and packaging waste that arises from production processes is delivered to
specialised companies and is forwarded to recycling. For this purpose, the company has entered into an
agreement with the Hellenic Recovery Recycling Corporation (He.R.R.Co) and has also joined the
implementation of EU REACH Regulation which concerns protection from chemical toxic substances and
EU RoHS Directive which refers to the content of heavy metals in the company’s products. In addition,
the company is a founding member of the Board for Sustainable Development falling under the
Hellenic Federation of Enterprises (SEV) and has obtained an Environmental Management Certificate as
per ISO 14001.
Programme of Industrial Excellency: The company participates in the programme for the industrial
prize, Nexans Excellence Way (NEW), which is applied to other factories of the Group. The scope of this
programme is to improve industrial operations, so as to render the company more competitive, more
flexible and more responsive to the customers. The programme Nexans Excellence Way is based on
personnel guidance, enhancement of performance, improvement of production processes and the
introduction of the 5S methodology, so that the factories are cleaner, well settled and more secure, and
mainly to improve safety and productivity in the plant. In 2014, the plant in Lamia broke new ground
and participated in the Nexans Excellence Way II industrial excellence programme, which aims at
optimising further industrial processes on a daily basis in production and equipment maintenance
areas, and maintaining its outstanding performance thanks to which, in 2011, Lamia plant was
bestowed “The plant of the year 2010” award, among 120 plants of the Group. The implementation of
the programme continued smoothly in 2015 too.
On 15 December 2015, the company was awarded an Industrial Excellence award by the “Made in
Greece Awards 2015” organisation. The “Made in Greece” awards are organised by the Hellenic
Marketing Academy and aim to promote and reward entities and organisations which have their
production facilities in Greece and bring added value to the Greek economy through quality products,
innovation and excellence. The largest companies of all production sectors in Greece participate in this
competition and so the award bestowed to our company is a great achievement for us.
Other measures: Nexans Hellas adopts and is committed to rules of ethics and business conduct so
as to promote free competition and avoid any involvement in situations of unfair competition or abuse
of competition. The company takes all steps to avoid money laundering and takes active part in the
fight against corruption in all sectors of economic and social activity. Thus, employees are prohibited
from receiving and offering gifts, gratuities and any type of service related to the company’s financial
dealings.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
8
The company treats all parties with whom it transacts, such as customers, suppliers, agents and other
associates with respect, integrity, transparency and confidentiality. The company manages responsibly
all personal data entrusted to it, its employees and associates in compliance with applicable laws.
Finally, Nexans Hellas guarantees equal treatment for all its shareholders, as well as fairness and
accuracy of all published financial and business information, and explicitly prohibits the use of inside
information by any party.
RISK MANAGEMENT
The international financial environment and ongoing developments necessitate not only the monitoring
of ordinary business activities but also monitoring of the risks resulting from adverse developments.
Nexans Group applies procedures for identifying and managing such risks in order to minimise them.
Nexans Hellas follows faithfully the Group practice for risk management and continuously trains its
executives in this field. In specific terms:
The Board of Directors stresses that if any of the events or uncertainties described below arises, there
may be substantial adverse effects on the company, its financial position and operating results. In
addition, it is likely that the company may also face other risks and uncertainties than those described
below. Additional risks and uncertainties which for the time being are not known, may have an adverse
effect on the company’s business activities, financial situation, operating results and prospects. Finally,
the order in which risk factors are listed does not indicate any variation in terms of importance or the
likelihood of any of these risks.
Risks associated with macroeconomic conditions
Any adverse developments in the overall economic conditions in Greece and the uncertainty arising
from the Greek financial crisis and political instability have negatively affected the company and may
eventually continue to have an adverse impact on the company’s business activities, economic results
and outlook.
The development of business activity, the economic situation and prospects of Greece depends on the
macroeconomic and political conditions prevailing in Greece. Over the last seven years, the Greek State
faced major fiscal constraints and undertook to take substantial structural measures aimed at restoring
competitiveness and at promoting economic growth in Greece under the adjustment programmes which
were initially agreed with the International Monetary Fund ("IMF"), the European Commission (“EC”) and
the European Central Bank (“ECB”) (jointly referred to as “Institutions”) and, subsequently, in August
2015 with the Institutions and the European Stability Mechanism (“ESM”) (“Economic Adjustment
Programmes”).
The Economic Adjustment Programmes include fiscal adjustment policies and structural reforms aiming
to boost growth, including regulations in the labour market, in various product and services markets in
order to help the Greek economy open up to investments and competition, modernisation and
depoliticisation of the public sector.
The Economic Adjustment Programmes were initially due to expire at the end of 2014. However, due to
the prematurely proclaimed elections in Greece on 8 December 2014, for January 2015, the Council of
the Finance Ministers of the Eurozone (“Eurogroup”) initially agreed, at the request of the Greek
Government, on a two-month “technical extension” of the Economic Adjustment Programmes until the
end of February 2015. On 20 February 2015, the Eurogroup agreed to a further extension to enable
the successful completion of the last pending review, as a prerequisite of any further disbursement
under the Economic Adjustment Programmes, and also in order to provide ample time for the
negotiations and final agreement on a new bailout programme.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
9
However, the uncertainty as to the overall completion of the Economic Adjustment Programmes and
Greece’s prospects in the Eurozone as well as the prolonged negotiations between the Greek State and
the Institutions for a new financing programme in the first half of 2015 had a direct effect on the
liquidity of the financial system in Greece.
At the end of June 2015 and as a result of a further deterioration of the economic situation in Greece
and the lack of liquidity in the Greek banking system brought about by the expiry of the Economic
Adjustment Programmes and the default of the Greek State in relation to the IMF funding and the
failure to reach an agreement with the EU and the Institutions on a new bailout programme, a bank
holiday was announced in Greece for a period of three weeks and rigorous restrictions were imposed
on free capital flows.
Following further negotiations, on 8 July 2015, the Greek Government submitted to the ESM a 3-year
funding request under a new Economic Adjustment Programme. On 12 July 2015, the Euro Summit
issued a statement according to which the Greek Government should legislate a set of measures as a
prerequisite for the launch of negotiations in order to draft a new Economic Adjustment Programme
under the ESM.
On 15 and 23 July the Greek Parliament approved part of the prerequisites identified by the
aforementioned Summit and, on 14 August and after extensive negotiations, the Eurogroup announced
that the Greek Government had initially reached an agreement with the Institutions on a new Economic
Adjustment Programme of approximately €86 billion under the ESM.
According to the Eurogroup statement, under the ESM Economic Adjustment Programme, Greece
targets a medium-term primary surplus of 3.5% of GDP, namely it targets balances of -0.25% in 2015,
0.5% in 2016, 1.75% in 2017 and 3.5% in 2018 to be achieved notably through fiscal reforms
supported by measures to strengthen tax compliance and fight tax evasion. In addition, Greece is
required to implement a number of structural reforms in the area of social security, labour market and
various product and services markets in order to boost the competitiveness and modernisation of the
economy and to depoliticise the public sector.
As a result of the positive effects of the finalisation of the new ESM Economic Adjustment Programme on
the Greek economy, the capital controls that were initially imposed in June 2015 were relatively eased
in mid July and thereafter on many occasions, such as on 31 July 2015, 17 August and 25 September
2015. However, presently there is no specific expectation as to when such capital controls will be fully
lifted or eased.
Greece has faced and still faces major fiscal challenges and structural deficiencies in its economy which
caused concerns about an eventual Grexit. The likely extent and scope of the effects of Grexit is
uncertain but such an exit or the threat of exit could have a substantial adverse effect on the company's
activities and liquidity.
Moreover, risks arise from the economic environment established from the above facts, the most
important of which concern the liquidity of the financial system and business entities, the collectability of
their receivables, servicing of their existing loan liabilities and/or the fulfilment of terms and the
respective financial ratios, the recoverability of deferred tax assets, valuation of financial instruments,
adequacy of provisions and capability to ensure the smooth operation of business entities.
Any failure to implement the ESM Economic Adjustment Programme and/or overall failure of this
Programme to achieve a considerable improvement of the Greek economy or in case of another credit
event with respect to the Greek sovereign debt or its further restructuring or any Grexit, may have a
negative impact on the company's results and financial position in a manner which at the moment
cannot be accurately predicted.
The company’s sales, results and growth prospects depend to a large extent on the robustness of the
individual operating segments; as a result, if these specific segments show a downturn, the company’s
sales and results could be negatively affected.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
10
Many customers of the company use the cables produced as part of their products or in projects
undertaken for their customers. The company’s ability to sell its products depends on the overall
economic conditions, including the users’ final expenditure with respect to electricity transmission and
distribution infrastructures, industrial production assets, new constructions, the building sector,
information technology and the maintenance or overhaul of communication networks. During periods
of recession of the above segments, the company is likely to face a drop in its sales and results.
Price fluctuation risk
The volatility of the price of copper, aluminium and other raw materials as well as of fuels and energy
could have a negative impact on the company’s sales and results.
The cost of copper and aluminium, i.e. the most important raw materials used by the company to
manufacture its products, is subject to significant changes caused by the conditions of supply and
demand in metal exchanges, weather conditions, political and economic variables, as well as other
unknown and unforeseeable variables. Further, the fuels and energy required for the operation of the
company’s plant are also subject to significant volatility.
The core raw materials in the cables sector (copper and aluminium) concern products whose prices are
quoted on the London Metal Exchange. Therefore, purchases and sales are affected by international
price fluctuations. To hedge the risk from changes in metal prices, the Management of the Company
purchases the contained metal under the same terms applicable to sales to customers. Sales are divided
into 2 categories:
A) sales based on confirmed customer orders;
B) sales based on provisions for the domestic market amounting to 25% of total sales in 2015.
The risk arising from the volatility of the copper and aluminium price is generated only from those sales
based on forecasts for the domestic market since if the forecasts are not confirmed, the company’s open
position in metal stock can be significant and, if combined with an eventual significant change (drop) in
metal prices, it may result in significant losses.
To reduce the risk arising from the volatility of raw materials cost, the Management monitors constantly
its open position in metal stock and enters into futures and forward contracts (derivatives) whenever
necessary, to hedge this risk and limit the extent of its exposure to price fluctuations.
These contracts have different maturity dates, depending on the date of the expected purchase of such
metals. The valuation of the company’s open positions on 31 December 2015 and 31 December 2014
is as follows (amounts in thousand €):
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
11
31-Dec-15
Metal Buy/Sale Quantity (tons)
Forward buy/
(Forward sale)
price
Current
price
Valuation
profit/ (loss)
Copper Buy 225 970 973 3
970 973 3
Copper Sale 0 0 (11) (11)
Lead Sale (25) (36) (41) (5)
Aluminium Sale 0 0 (9) (9)
(36) (61) (25)
Total 934 912 (22)
31-Dec-14
Metal Buy/Sale Quantity (tons)
Forward buy/
(Forward sale)
price
Current
price
Valuation
profit/ (loss)
Copper Buy 450 2,325 2,335 11
2,325 2,335 11
Copper Buy 125 663 652 (11)
Aluminium Buy 275 539 421 (119)
1,203 1,073 (130)
Total 3,527 3,408 (119)
The above valuation profits/(losses) as well as the realised profits of contracts for the purchase and sale
of metals are posted to the cost of goods sold given that there is also included the purchase cost of raw
materials, in respect of which metal derivatives are concluded..
The volatility of the price of copper, aluminium and other raw materials, as well as of fuels and energy
could have a negative impact on the company’s sales and results. In addition, if the aforementioned
derivatives strategy implemented by the company to hedge the risk and contain its exposure to the
fluctuations of raw material prices proves to be ineffective, the impact on the company’s results could be
unfavourable.
The markets for the company’s products are quite competitive and if the company does not make
successful investments in the development of new products, the improvement of productivity, customer
service and support, the sales of its products could be negatively affected.
The copper, aluminium and fibre-optic cables market is extremely competitive and calls for major
investments in research and technology and some competitors may enjoy comparative advantages.
Many products of the company are manufactured according to common specifications and, therefore,
may be easily replaced by competitive products. Consequently, the company is subject to competition
on many markets based on the price, quality, range of product family, available stocks, timely delivery,
customer service, the environmental effects of the products, as well as the company's capacity to
respond promptly to its customers’ needs.
The company estimates that its competitors will keep on improving the design and performance of their
products and launch new products with competitive prices and features. Therefore, the company must
keep on investing in product development, productivity improvement, and customer service and support
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
12
to remain competitive. Moreover, a possible increase in competitive product imports could have a
negative impact on the company's sales in a market.
Due to its export orientation, the company is exposed to economic, political and other risks in third
countries.
In the year ended 31 December 2015, 46.4% of sales and 40.5% of receivables of the company were
channelled into exports. Certain countries, such as Egypt and Libya, run a greater risk in terms of
eventual social and political destabilisation, international conflicts, government interventions, changes in
regulatory requirements, unfavourable treatment of foreign companies, terrorist attacks, natural
disasters and eventual pandemics for which they lack the necessary resources to deal with emergencies.
The economic developments in the countries where the company exports products, including future
economic changes or crises (such as high inflation, considerable currency devaluation, voting of
exchange control measures or capital controls), could also have adverse effects on the company’s
financial position and results.
The company relies on independent distributors and retailers for the non-exclusive sale of its products,
who may, at their discretion, cease to buy the company’s products.
Distributors and retailers account for a considerable part of the company’s sales (2015: 24%). Such
distributors and retailers are under no contractual obligation to distribute the company’s products on an
exclusive basis or for a specific period of time. Therefore, said distributors and retailers may decide to
purchase competitive products or cease to promote the company's products at any time. Any
simultaneous loss of major distributors or retailers could have significant adverse effects on the
company’s ability to approach end users and may also impact negatively its business results. Moreover,
any eventual liquidity problems of one or more major distributors or retailers could have a negative
effect on the company’s sales and also generate significant credit risk.
The company relies on major customers who are able to amend the terms of
cooperation and/or discontinue the purchase of company products.
In 2015, there were customers of significant size who absorbed a considerable part of the company’s
turnover [companies of Public Power Corporation (PPC) Group: 18.6%, North Africa companies: 13.3%,
Nexans Logistics Ltd 15.1%, Hellenic Telecommunications Organisation (OTE): 3.8%). Any substantial
change in the terms and conditions of cooperation with the most important customers and/or any
discontinuation of collaboration may have an effect, at least on a short-term basis, on the development
of the company’s operations and results.
Any changes to tax and corporate law are likely to have a material adverse effect on the company's
business activity, financial position and results.
Greece has a complex tax system which has gone through radical changes over the last few years and,
consequently, the fact that the Greek State may decide to introduce regulations of a tax or corporate
nature in the future, in order to tackle any negative circumstances which are related to the Greek
sovereign debt crisis and could impact the company cannot be excluded. Such regulations may have a
substantial adverse effect on the company's business activity, financial position and results or its ability
to achieve its strategic goals.
Changes in industrial standards and regulatory requirements may have a
negative impact on the company's operation.
The cables sector worldwide complies with the requirements of international and national regulatory
authorities, as well as with principles of establishing industrial standards. Any changes in the standards
and requirements imposed by these authorities may adversely affect the company. In case the company
is not able to respond swiftly to these new or amended specifications, the effect on its sales may be
unfavourable.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
13
Moreover, changes in the legislative framework could affect the development and other parameters of
the key markets serviced by the company. The development of the cables industry has been
considerably affected by the laws on energy generation and marketing, including alternative and
renewable energy sources, by public utilities investments and public expenditure for infrastructure.
Although the legislative initiatives had overall a positive effect on the cables sector and the company’s
financial results, there can be no assurance that such positive effect will last. Moreover, the effect that
any new changes in the laws or standards for the sector could have on the company’s future financial
results, cash flows and financial position cannot be predicted.
The company’s majority shareholder exercises significant influence over the
company and the shareholder’s interests may vary from the interests of other
shareholders.
The company’s majority shareholder, Nexans Participations, owns 88.57% of the company’s share
capital and voting rights.
Consequently, the above shareholder has and may eventually continue to have the ability to influence to
a considerable extent the decisions of the company’s General Meeting including, among others, the
decisions on election of BoD members, dividend distribution, share capital increase, mergers,
acquisitions and other relevant corporate acts. While exercising its voting rights, the majority
shareholder may have interests other than those of the other shareholders.
The company has entered into the agreements of 01.01.2001 and 22.05.2015 with
Nexans France regarding the assignment of the use of intellectual property rights,
patents, software and access to research and technology, as well as for the provision of
administrative and commercial services. Any rescission or otherwise termination of these
agreements may have a substantial adverse effect on the company’s results.
The company is part of the companies group of Nexans., with whom it has entered into an agreement
as of 1 January 2001, which had an initial 10-year term and could be subsequently extended for two-
year periods. In the context of the agreement, in exchange for remuneration, Nexans S.A. entitles the
company to use intellectual property rights, patents and software, while also providing the company
with access to research and technology.
The effective term of this agreement has already been extended three times and shall expire on 31
December 2016 unless either contracting party (Nexans. or the company) declares by a written notice
that it does not wish to further extend this agreement. In addition, this agreement provides each
contracting party with rights of termination which, as the case may be, enable its termination either
subject to a deadline for remedy in case of substantial breach of terms by the counterparty or without
any deadline in case proceedings for collective satisfaction of creditors are brought against either
contracting party or, finally, automatically if the company ceases to be a subsidiary of Nexans
In addition, the services agreement dated 22.05.2015 concluded by the company with Nexans. and
Nexans France (further to the agreement dated 1 January 2001 concluded between the company and
Nexans France) provides for the provision of various administrative, commercial and consulting services
which pertain to the operation and activities of the company (including but not limited to the
achievement of optimum market conditions through the volumes of purchases and the global contracts
of Nexans France, services and consulting relating to the company’s industrial organisation, human
resources and other optimum management practices, strategic planning, advertising and generally
communication, financial analysis, preparation of financial statements and legal matters).
The said services agreement has an initial effective term of 4 years (with retroactive effect as of
01.01.2015) and may be further renewed for successive periods of 2 years. Such renewal shall be
automatically put into effect unless either contracting party states that it no longer wishes any further
extension of such term by a 6-month written notice prior to the expiry of the (initial or subsequent) term.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
14
The services agreement includes the same termination rights with the above agreement dated
01.01.2001.
Given the extremely competitive environment where the company operates, it must have access to
leading-edge technology and know-how to maintain its competitiveness. Therefore, the above
agreements are extremely important for the company’s operation.
Termination of the agreements in any manner as per the foregoing may have a material adverse effect
on the company’s business, operating results, financial situation and prospects.
In addition, the Management of the company estimates that despite the completion of the share capital
increase, any financing from Greek credit institutions in the future may be made available only if
Nexans Group provides banks with a (non-binding) letter of comfort to support the company.
Finally, an important percentage of the company’s sales (around 18% in 2014 and 24% in 2015) is
channelled outside Greece into companies of Nexans Group.
Therefore, if Nexans Group ceases its contribution to the company in any of the above sectors, this may
have substantial negative repercussions on the company’s results, financial situation and prospects.
Failure of the company to carry out properly orders for major customers and turn-
key projects may have an unfavourable effect on its capacity to be awarded similar
contracts in the future and under extreme circumstances the company may be forced to
pay significant indemnities and fines.
The last few years the company has assumed the implementation of major turn-key projects for specific
customers. These projects are very challenging and are associated with the implementation of major
long-term contracts which stipulate significant financial sanctions in case the company fails to comply
with them.
The company Management aims to seek actively to increase its market share by carrying out
successfully contracts for medium and high voltage cable projects, as well as for land and submarine
fibre-optic cables. In addition, the purchases of terrestrial and submarine power transmission cables
which are financed by the major investments in the interconnections of the power transmission network
as well as the market of renewable energy sources such as solar energy are an attractive long-term
opportunity for the company. The successful implementation of major turn-key projects is also crucial
for the company’s long-term success in this market.
Any eventual unexpected discontinuation of the provision of raw materials and
especially copper and aluminium from main suppliers may affect the results of the
company’s activities and financial performance.
Any eventual sudden discontinuation of provision of necessary raw materials on the part of main
suppliers, due for instance to deficiencies, financial distress, strikes, accidents, fires, typhoons,
earthquakes, floods or terrorist attacks could disrupt production or affect the company’s capacity to
increase or maintain both production and sales. Most suppliers of copper and aluminium rods
employed by the company are foreigners, with the company’s greatest supplier of copper rods being a
company of Nexans Group, i.e. Nexans France, which accounted for 90% (namely an amount over
€24.1 million) of the company’s total purchases of the said raw material during the period 01.01 -
31.12.2015. Further, during the same period 01.01-31.12.2015 the greatest supplier of aluminium
rods accounted for approximately 37% (namely an amount of around €3.9 million) of the company’s
total aluminium purchases.
Any unforeseen problems encountered with suppliers of copper or aluminium rods could entail
significant adverse effects on the company. In addition, the company’s policy consists in employing a
limited number of suppliers for the majority of the other raw materials. The company does not keep
long-term agreements of raw materials supply or any strategic agreements with most of its suppliers
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
15
and, thus, the company may have limited options for its alternative supply on a short-term basis, if such
suppliers fail to supply materials or accessories for any reason whatsoever. Furthermore, the search,
selection and access to alternative sources of supplies may increase their cost in a short-term horizon.
The premises, machinery of the plant and the stocks of the facilities are insured
with respect to their entire construction cost. Any total destruction or material damages to
them in excess of the insurance indemnity or the insurance coverage is likely to have a
negative effect on the company’s financial results and financial position.
The company’s properties may suffer material damage due to natural disasters (such as fires,
earthquakes and floods) and terrorist attacks and other forms of violence (such as arson) resulting in
damage (including the loss of profits) which may not be covered, in whole or in part, by the insurance
policies taken out by the company. In line with the standard market practice, the company’s properties
are insured for their entire construction cost rather than their book or commercial value. Any total
destruction or material damages to them, the amount of which exceeds the insurance indemnity or the
insurance coverage, is likely to have a negative effect on the company’s financial results and financial
position. In addition, no coverage or limited coverage is available on the insurance market as regards
certain types of risk (such as risk of war and earthquake during technical works). Moreover, the cost of
such insurance may be prohibitive in comparison with the particular risk. Further, the coverage of
certain risks against which the Company is insured, in whole or in part, may no longer be available in
the future. If any risk arises to a company property for which there is no insurance coverage or the loss
exceeds the insurance limit, the company may lose a part of the capital invested in the affected property
and the future benefits expected to obtain from the use of such particular property. Finally, the company
may be forced to restore damages arising from non-insured risks or to pay indemnity to third parties in
case of civil liability that is not covered by insurance policies.
The company cannot ensure that no substantial damages in excess of the insurance indemnity will arise
in the future.
Failure or shutdown of the IT systems could have a negative impact on the
company’s smooth operation.
The company relies on its information systems and on third-party systems to monitor and schedule the
production process, process customer orders, dispatch products, invoice customers, monitor inventories,
support accounting functions, compile the financial statements, pay salaries to its employees and,
generally, to run the company regularly and smoothly. Any disruption to key information systems from
hackers or other sources could have a significant negative effect on the company’s operation.
Also, its information systems may require upgrading on a periodic basis to provide additional
capabilities and features. The launch of new information systems and the upgrade of existing ones often
disrupt the company’s ongoing activities. By way of example, any disruption affecting the capacity of the
Financial Division to compile accurate reports on the company’s financial performance in due time
could have an adverse effect on the Management’s capacity to make sound business decisions. If the
company is not able to implement successfully any potential future improvements to the information
systems, its financial situation, results and cash flows could be negatively affected.
Any increased threats against the security of IT systems and more advanced means of cybercrime,
including advanced electronic viruses, are a potential risk against the security of the company’s IT
systems and networks, and also against data confidentiality, availability and integrity. If the IT systems,
electronic networks or service providers on which these are based fail to function properly or if the
company suffers loss or leakage of business or financial information for any reason whatsoever
including disasters, power failure and breach of security, and if any back-up business continuity systems
do not deal with the core causes in an effective and timely manner, the company Management may
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
16
face difficulties in managing its operating needs and business matters, which could have an
unfavourable effect on the company’s financial results and/or financial position.
Environmental obligations could eventually have adverse effects on the company’s
operation and results.
The company is subject to European and Greek laws and regulations on the protection of the
environment, which govern its operation and the use, handling, disposal and restoration of
environmental pollution. The environmental liability risk is linked with the company’s production
activities. Under certain conditions, in accordance with environmental laws, the company could be held
jointly and severally liable for the restoration of any pollution from toxic substances and heavy metals in
the company's facilities and in third-party sites with whom the company collaborates regarding waste
disposal. The company could be also held liable for any consequences arising from human exposure to
these substances or other environmental disasters.
The company makes adequate investments to minimise the environmental pollution risk arising from its
production process. The company has adopted the REACH regulation of the European Union with
respect to protection from chemical toxic substances, and the RoHS Directive of the European Union on
the content of heavy metals in its products.
Nevertheless, there can be no assurance that the cost of compliance with environmental laws, EU
regulations, laws and requirements on health and safety will not generate additional future expenses
which could have a substantial adverse effect on the company's financial results, cash flows and
financial position.
Dependence on management executives and specialised personnel
The company management and functions rely on a team of experienced executives and specialised
personnel. Any disruption of the relationship between the Company and its executives and specialised
personnel, which causes them to leave for any reason, or any loss of them, could have an unfavourable
effect on its smooth operation, at least on a short-term scale until the company replaces them.
The loss of any member of the management team or any specialised and experienced employee leads
to the loss of vital knowledge, experience and know-how, deterioration of customer service, thus leading
to increased recruitment and training cost since it renders the company’s successful operation and
implementation of business strategy more difficult.
The company may not be in a position to recruit instantly specialised workforce who will replace the
withdrawing persons and the integration of the eventual substitutes may disrupt the company’s smooth
operation. Moreover, the loss of key executives and employees thoroughly knowledgeable about the
production process could lead to increased competition in case the said employees are recruited by a
competitor and are able to recreate the company's production process.
Also, the company’s future success depends in part on its capacity to attract and retain highly skilled
personnel in great demand in the labour market.
As part of its compliance with borrowing terms, the company may be obliged in
the future to abide by specific financial ratios and other covenants which affect
considerably its operating activity.
In the future, the company may be obliged to observe specific financial ratios and other covenants with
respect to the maximum possible borrowing, and the capacity to distribute dividend and implement
investments. Once these covenants are stipulated, the company's ability to decide freely on its business
strategy and the implementation of initiatives/ transactions which the company would otherwise deem
advantageous may be restrained.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
17
In order to draw funds from credit institutions, the company may be forced to provide collateral on its
assets, thus increasing the number of company creditors having acquired collateralised receivables with
special and general privileges, and reducing the likelihood of distributing any amount to shareholders
in case of dissolution or collective satisfaction of creditors against the company.
In the near future the company may seek to obtain bank loans, for the purpose of which it could
provide collateral on its assets in favour of lending banks. The provision of collateral entails the creation
of a special privilege in favour of the banks to satisfy their claims in case of enforcement order or
collective satisfaction of creditors against the company (such as bankruptcy, special liquidation, etc).
Therefore, the bank loans provided to the company may increase the number of its creditors, whose
claims are secured by special or general privileges, thus reducing the likelihood of distributing any
amount to shareholders in case of dissolution or collective satisfaction of creditors against the company.
Eventual non-compliance of the company with covenants and other provisions laid
down in existing or future financing agreements could lead to the cross-default of certain
financing agreements, which could jeopardise the company's capacity to meet its
liabilities.
Various risks, uncertainties, or even events beyond the company's reasonable control could have an
impact on its capacity to comply with the covenants and financial ratios incorporated in the terms of
financing agreements. Moreover, certain financing agreements may include special terms of
prepayment or acceleration of loan repayment at the discretion of lenders when the company does not
abide by the covenants. Moreover, the loan agreements may provide for the prohibition or preliminary
approval regarding the change in the control over the company, or the right to terminate the loan when
major unfavourable changes have taken place.
Any non-compliance with any covenant included in existing or future financing agreements could lead
to default and suspension of financing from its lenders or even to termination of the company's loan
agreements, with lenders seeking prompt refund of all loans granted to the company by liquidating any
collateral provided by the company. The above may limit the company's capacity to meet its liabilities to
suppliers, finance investments and other payments, pay dividends, make freely payments to other
companies of Nexans Group and, naturally, may prohibit the company from financing acquisitions,
mergers and/or transferring or selling assets. Under these circumstances, the company may not have
adequate funds or other resources to meet all its liabilities to third parties at the same time, which could
have a substantial unfavourable effect on its financial position.
The company's capacity to pay dividends will depend on its capacity to generate
profits available for distribution.
All dividends and other distributions are paid by the company at the discretion of its shareholders
general meeting and depend on the availability of profits and reserves for distribution (once all relevant
terms of the Greek corporate law are met), and on the adequacy of cash. The generation of profits and
other reserves for distribution depends on a number of factors including the successful management of
the company's investments, the yield from its operations, the taxes and profits relating to its operations,
regulatory framework, macroeconomic conditions under which the company operates, liquidity needs
as well as tax and other legal factors.
Credit Risk: The company is exposed to the credit risk of customers and commercial partners
and to their financial capacity to pay timely their liabilities.
Trade receivables are broken down as follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
18
31/12/2015 31/12/2014
Domestic customers 12,413 12,090
Foreign customers 3,762 9,256
Receivables from affiliated parties 4,191 2,600
Cheques receivable (post-dated) 630 1,213
20,996 25,159
Less: provisions for doubtful debts (1,500) (2,078)
Total 19,496 23,081
On 31 December 2015, promptly paid commercial receivables amounted to €18,398 (€21,938 for
2014). As for the receivables remaining open beyond credit limits over 30 days, a statistic provision for
bad debts is set up depending on the age of the receivable. On 31 December 2015, the amount of the
said receivables comes to €2,611 (€3,221 for 2014) and the respective provision to €1,500 (€2,078 for
2014). The total amount of receivables also includes those that are due, but not all of them are
considered as bad. Nexans Hellas, strictly complying with the rules of IFRS, performs reliable provisions
for bad debts, considering the relevant estimations of associate lawyers for specific cases and raising
additional statistical provisions for the rest, depending on their age distribution.
These receivables are broken down per age as follows:
31/12/2015 31/12/2014
30-60 days 258 74
60-90 days 9 14
90 + days 2,190 2,769
Sub-total 2,457 2,857
Cheques in delay 154 364
Total 2,611 3,221
The provisions for doubtful debts for the period ended on 31 December 2015 are broken down as
follows:
1 January 2014 1,915
Additional Provision 163
31 December 2014 2,078
Deletons of period (1,112)
Additional Provisions of period 534
31 December 2015 1,500
The additional provision for the year is included in the Administrative and Sales expenses.
The credit rating of trade receivables which are not overdue or impaired is split into the following
categories:
Receivables without external credit rating:
2015 2014
Group 1 3,264 1,164
Group 2 12,969 16,212
Group 3 2,152 4,562
Total non-devaluated receivables 18,385 21,938
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
19
Group 1 - New customers/ affiliated parties (less than 6 months)
Group 2 - Existing customers/ affiliated parties without any delays in the past (more than 6
months)
Group 3 - Existing customers/ affiliated parties (more than 6 months) with some delays in the
past. All delays are expected to be recovered, save those for which we have set up provisions for
doubtful debts.
The company’s policy is to enter into contracts with counterparties meeting top credit rating criteria
while in the case of credit risk the company seeks more collateral. Moreover, in an attempt to restrain
losses from eventual default of its customers, the company collaborates with a credit insurance company
of Nexans Group through which it insures a part of its receivables from foreign and domestic
customers. The amount of insurance depends on the credit rating of each customer, as evaluated by the
insurance company.
Nevertheless, any negative financial results of customers and commercial partners or their negative
assessments about their future income may result in them not paying in good time, paying in part or not
paying at all their liabilities in order to seek a renegotiation of the contractual terms, or even withdraw
from the company’s commercial network, all of which could lead to an eventual drop in the company’s
income and impact adversely its financial results.
Interest rate fluctuation risk: The Company received almost exclusively for most of 2015,
short-term funding from the associated Company Nexans Services to meet the current needs of working
capital of the business.
Until mid June 2015, this short-term funding was provided by concluding loan contracts at regular
intervals, depending on the Company's working capital requirements. Such short-term loan contracts
determined every time i) the amount of the loan, ii) the interest rate, which was formed according to, at
the time of conclusion of each loan, prevailing macroeconomic conditions and the cost of raising funds
on the financial markets, and remained stable throughout the duration of each loan and iii) the
duration of the loan, which usually ranged from one week to three months.
Since mid-June 2015, this short-term financing from the related Company Nexans Services, was
provided under a Loan rate calculated as per a combination of indicators and factors, which include the
rate of Greek ten-year government bond and the Euribor index to adjust to the country risk context at
the time. Such Interest Rate is fixed for each withdrawn amount throughout the loan term (7-days)It is
also estimated that the share capital increase and, therefore, the repayment of the entire interest-
bearing loan will have a positive effect and will help minimise the risks arising from the fluctuation of
the above rates.
Foreign exchange risk: The vast majority of transactions, contracts and orders of the company
are executed in Euros. For the minor trade receivables and liabilities made in foreign exchange, the
Management constantly monitors the fluctuations in exchange rates and assesses whether the respective
positions must be adopted so as to hedge the resultant risks. In this context, the Management enters into
futures and forward contracts (derivatives) so as to limit the extent of its exposure to fluctuations of
exchange rates.
Liquidity Risk: Liquidity risk is dealt with by ensuring adequate cash and cash equivalents,
availability of sufficient financing and by the capacity to close open positions. Due to the dynamic nature
of the activities, the cash management department aims at flexible financing through authorised credit
lines. The contractual maturity dates of trade and other payables and loans refer to a period less than one
year. It is also estimated that the share capital increase will have a positive effect and will help minimise
the liquidity risk.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
20
Fair value: The amounts presented in the financial statements with respect to cash, trade
receivables, liabilities and loans approach their respective fair values due to their characteristics and their
short-term maturity.
Fair values of derivatives are based on market valuation.
Capital risk management: As regards capital management, the company aims to ensure
problem-free operation in the future so as to provide satisfactory yields to shareholders and benefits to
other contracting parties as well as to ensure the ideal capital allocation at the lowest capital cost. To this
effect, the company monitors consistently the working capital so as to keep external financing at the lowest
possible levels. It is noted that the share capital increase will have a positive effect on dealing with the
capital management risk.
Amounts in thousand Euros
31/12/2015 31/12/2014
Total loans 15,694 18,429
Less: Cash (3,971) (4,810)
Net debt 11,723 13,619
Total equity 20,416 21,258
Total capital 32,139 34,877
Leverage ratio 36% 39%
MACROECONOMIC ENVIRONMENT
The extremely adverse macroeconomic developments in 2015 which culminated in the imposition of
capital controls entailed the generation of extremely high risks concerning the liquidity of the financial
system and business entities, the collectability of their receivables, servicing of existing loan liabilities
and/or the fulfilment of terms and financial ratios, the recoverability of deferred tax assets, the valuation
of financial instruments, the adequacy of provisions and business continuity. In light of the above, the
company has not only managed to deal with the situation but has also achieved considerably improved
results in relation to the previous year.
STRATEGY - OUTLOOK
Given the prevailing economic conditions in Greece, it is estimated that in 2016 the environment in
Greece will remain unstable generating overall difficulties but also opportunities. It is estimated that an
eventual easing of capital controls is not expected to have a considerable effect on the company's results.
More specifically, it is estimated that the drop already registered by the domestic construction activity and
any eventual delay in the implementation of infrastructure projects by public utilities (PPC, HTO) will have
a negative effect on the company’s operations. Nevertheless, Nexans Hellas will make its best efforts to
take advantage of any opportunities that may emerge and to deal with current difficulties. In light of the
above, the Management of the company believes that the transformation programme will contribute to
the achievement of these goals. Specifically, in 2016, the Management of the company will focus its
strategic priorities on three pillars, i.e. improving the competitiveness of its products by applying new
methods and procedures to production and overall operations, maintaining its share in the markets
where it operates and the dynamic management of its activities, by focusing on increasing exports in an
effort to counterbalance the expected drop in the domestic market.
As regards international markets and especially those in Middle East and Africa, efforts are still made to
enter into new partnerships, the development of which will depend, among others, on the preservation of
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
21
political stability in these areas. As regards sales within Nexans Group, these will depend on the demand
and prices of the markets targeted by the Group units reselling products of Nexans Hellas. The new reality
of capital controls calls for actions that will increase the company’s exports so as to counterbalance the
recession that has already struck the domestic market. Note that the high copper prices maintained in
metal exchanges for a very long period of time has increased the demand for aluminium cables.
Notwithstanding the above adverse macroeconomic environment in Greece, the company has secured
important contracts from Greek public corporations and foreign customers for the current year, and is
expected to take part in more tenders launched by public utilities in 2016.
The modernised plant at Aghia Marina, the organised and functioning commercial, financial and
technical services and also the continuous renewal of its human resources, have constituted important
advantages for the company in order to achieve all the above. The company has utilised and absorbed
the ‘know-how’ provided by Nexans Group services which was already successfully applied in the plant of
Aghia Marina, Fthiotida. This know-how relates to introducing new more efficient production methods,
reducing disposable materials and energy consumption and introduction of organisational methods that
allow more efficient use of human resources. The promotion of new special types of cables such as cables
resistant to particular conditions (fire, high temperature) and also fibre-optic micro-cables is a significant
improvement of the services provided to our customers. Additionally, significant investments of advanced
technology are made to protect the environment and enhance safety and health conditions in the plant’s
workplace.
ORDERS
Orders backlog as at the end of 2015 amounted to €22 million, compared to the amount of €30.5
million in 2014. It is stressed that this backlog amount does not take into account the sales which are
made over the counter.
INVESTMENTS
The value of the company’s investments in fixed assets in 2015 amounted to €1,363 thousand compared
to €1,123 thousand in 2014. As a matter of comparison, in 2015 the depreciation amounted to €1,237
thousand.
Our investments are mainly directed to new products in order to satisfy market and customers
requirements, while some investments were intended for the upgrade and/or replacement of existing
production lines. A significant part of our investments concerns safety, environmental protection, material
recycling and reduction in energy consumption.
It is noted that the company adapting to the current unfavourable market conditions focused its options on
few high-efficiency investments and focuses on innovative products and services.
EXPENSES FOR RESEARCH, DEVELOPMENT, SALES PROMOTION AND OTHER SERVICES
Our company participates constantly in the Group’s Research & Development programmes. Research &
Development are related to the promotion of new products and to the improvement of existing products
in terms of both quality and technical capabilities. R&D concern also new techniques and production
methods to increase productivity and introduce the use of new environment-friendly materials.
In addition, the Group has elaborated major cutting-edge programmes that concern investments in
environmental protection and improvement of health and safety at plants. Nexans Hellas takes part in
these programmes and makes full use of the know-how provided.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
22
The contribution for the participation of Nexans Hellas in these global Research & Development
activities, the expenses for product promotion and the rendering of related services for the year 2015
amounted to €1,157 thousand.
There are 4 Nexans Research Centres entrusted with carrying out upstream research activities, in
conjunction with external partners such as universities and external research centres and organisations.
They work for all of Nexans' business units and are therefore fully financed by the Group. These Centers
are based in France (Lyon and Lens), in Nuremberg in Germany and in Jincheon County in South
Korea.
Furthermore, our above contribution to this international programme also covers the marketing and sales
network established in certain countries, which leads to a better co-ordination of Group companies in
these markets and will reinforce our sales.
PERSONNEL
The total workforce on 31 December 2015 was 212 compared to 211 employees at the end of 2014. As
a whole, there were 12 departures and 13 new employees were hired during the financial year.
Particularly note the positive balance in the employment of Nexans Hellas, at a time of sharp rise of
unemployment throughout Greece.
REAL ESTATE
The land and buildings belonging to the company remained unchanged during the year.
SIGNIFICANT EVENTS
Α. Share Capital Increase
At the Annual General Shareholders’ meeting, of May 29, 2015 which following adjournment
continued its proceedings on June 26, 2015, there was decided and approved the increase of the
Company’s share capital up to the amount of twenty-one million eighty thousand four hundred sixty-
eight Euros and seventy-five cents (€21,080,468.75) through the issuance of up to sixteen million eight
hundred sixty-four thousand three hundred seventy-five (16,864,375) new common registered shares
with voting rights of a nominal value of €1.25 each, through payment in cash and with a pre-emptive
right in favour of the existing shareholders in a proportion of eleven (11) new shares for every four (4)
old ones.
The Board of Directors was authorised to set the selling price of the new shares, in accordance with
article 13(6) of Codified Law 2190/1920. Indeed, the Board of Directors, at its meeting of 08/12/2015,
decided the determination of the price at € 1.25 per new share and set the exercise period of the
preemptive rights of the shareholders for the cover of the new shares.
Following the above share capital increase (hereinafter the "Increase"), and if this was covered in full,
the share capital would amount to EUR 28,746,093.75, divided into 22,996,875 common registered
voting shares with a nominal value of 1.25 euro each, while in this case the total proceeds would
amount to 21,080,468.75 euro. Furthermore, the General Shareholders’ meeting decided that if after
the expiry of the exercise period of the preemptive right there would still remain unsubscribed shares,
the Board of Directors would distribute them, in its sole discretion, as provided by law.
The Increase and the relevant amendment of article 5 of the Articles of Association were approved by
No 100109/01.10.2015 decision of the Ministry of Finance, Development and Tourism, registered in
the Commercial Registry on 01/10/2015 (SAA: ΒΖΞΜ465ΦΘΘ-43Ξ).
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
23
In particular, at the end of paragraph 1 of Article 5 the following text was inserted:
“By decision of the Annual General Meeting of the Shareholders, which following adjournment was
convened on June 26th 2015, the Company's share capital was increased by twenty one million, eighty
thousand, four hundred sixty eight euros and seventy five cents (€ 21,080,468.75) in cash, by issuance
of sixteen million, eight hundred, sixty-four thousand, three hundred seventy-five (16,864,375) new
common, registered, voting shares of nominal value € 1.25 each. Any difference between the nominal
value and the issue price of the new shares will be credited to the account "difference from the issuance
of premium shares".
02/02/2016 was set as the cut-off date of the Increase. Beneficiaries of the preemptive rights were the
Shareholders who were registered in the DSS on 03.02.2016 and those acquired any preemptive rights
during the trading period of such rights on the Athens Exchange Market. The period for exercising the
preemptive right was set from 05/02/2016 up to 19/02/2016.
After the expiry of that period, the Board of Directors with its decisions no. 887/22.02.22.2016 and
888/24.02.2016, after finding that two (2) shareholders namely Nexans Participations and HMG
Globetrotter had exercised their preemptive right, which covered the Increase up to the percentage of
77.06%, through the payment of a total amount of € 16,243,988.75, corresponding to 12,995,191
new common shares with a total nominal capital value of 16,243,988.75 €, decided the allocation of
the 3,869,184 rump shares, which corresponded to a nominal capital value of 4,836,480 €, to the
shareholder Nexans Participations, who had exercised its preemptive right and expressed its interest in
taking over additional shares in order to cover in full the Increase.
The Board of Directors. with its above decisions set for the shareholder Nexans Participations a deadline
for the payment of the above amount of € 4,836,480, until 29.02.2016. Indeed Nexans Participations
paid said amount within that period and namely on 24.02.2016.
Subsequently, with its decision no. 889/24.02.2016, the Board of Directors, in accordance with article
11 of C.L. 2190/1920, certified that the amount of the Increase, i.e. EUR twenty one million eighty
hundred thousand four hundred and sixty eight euro and seventy five cents (€ 21.080.468,75), was
paid in full, and that the Company's share capital was equally increased. Hence, the fully paid share
capital of the Company amounts to twenty eight million seven hundred forty six thousand ninety three
euro and seventy five cents (€ 28.746.093,75) divided into twenty two million nine hundred ninety six
thousand eight hundred and seventy five (22,996,875) common registered voting shares of nominal
value of € 1.25 each.
B. Capital controls
Since May 2010, the company has undertaken important structural reforms to restore the
competitiveness and promote its economic growth through a programme stipulated with the European
Union, the European Central Bank and the International Monetary Fund ("the Institutions"). This led to
primary fiscal surpluses in 2013 and 2014 and a marginal increase in GDP in 2014 and has also
managed to appease the social turmoil that had been created.
Following the parliamentary elections held on 25 January 2015, the new Greek government negotiated
a 4-month extension of the Master Financial Assistance Facility Agreement (MFFA), the purpose of which
was to review the previous (second) bailout agreement. This extension would be used as a bridging
mechanism for talks regarding an eventual agreement between the Institutions and Greece. On 30 June
2015, the extension expired without any agreement reached. In addition, the Greek State did not meet
its financial liabilities to the IMF and on 28 June 2015 capital controls were imposed. A factor that
played an important role in the above restrictions consisted in the outflows of deposits during the
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
24
previous 6 months and the decision of the ECB to not extend any longer the Emergency Liquidity
Assistance to Greek banks.
On 12 July 2015, the Euro Summit agreed to consider the request of Greece for financial aid from the
European Stability Mechanism (ESM) up to €86 billion provided that the Greek authorities would legislate
a first set of measures by the 22nd
of July (“prior actions”).
After the 23rd
of July 2015 the Greek Parliament approved the actions that had been agreed and
launched talks with the Institutions to agree upon and complete a third bailout programme.
Talks about the third bailout programme were completed during 2015 and led to the recapitalisation of
Greek banks in the context of the Bank Recovery and Resolution Directive (BRRD).
All the above factors have generated even more uncertain economic circumstances in Greece. The
instability of the Greek bank sector and the resultant imposition of capital controls implies the downturn
of Greece again and the anticipated further drop in the disposable income of consumers may affect the
company’s operations. Note also that the measures have gradually eased since the launch of capital
controls while enterprises have also adapted to the new economic and bank reality. Nevertheless,
malfunctions are also registered in the sectors below:
1. A considerable number of raw material suppliers and especially foreign suppliers still require
payments on extremely difficult terms (advance payment, minimum days of credit) since the credit
insurance companies do not provide enough credit coverage even for major solvent Greek entities.
2. Although the payment procedure involving foreign suppliers through collaborating banks has been
considerably improved, it is still a factor causing delays in cases of urgent payments since approvals
by the competent committees are required.
3. Bank account opening in case of collaboration with a new credit institution.
Notwithstanding the difficulties the company faced when capital controls were first imposed, it continues
to operate without any significant effect other than the above. The share capital increase will play an
important role since the company will no longer be dependent to a large extent on continuous high
interest-bearing borrowing.
Amid this uncertain economic environment, the Management assesses continuously the situation and
the eventual future effects in order to take all necessary steps and actions to minimise the impact on the
Group's operations.
SUBSEQUENT EVENTS
The share capital increase was completed and therefore interest-bearing loans were repaid in full. No
other important events took place after the 31st
of December 2015 which could substantially affect the
results of the company for the year ended on such date.
MARKET VALUE
Greek Market Value – Indicators concerning our company’s share on 31 December 2015:
Number of ordinary registered shares
On 31 December 2015 6,132,500
On 31 December 2014 6,132,500
Market value per share Euro
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
25
On 31 December 2015 0.80
On 31 December 2014 1.64
Capitalisation In million Euro
On 31 December 2015 4.91
On 31 December 2014 10.06
Note that Nexans Hellas does not make any portfolio investments and is not engaged in trading on the
stock market.
MAJOR TRANSACTIONS WITH AFFILIATED PARTIES
In addition to the subsidiaries and associated companies, Management members and executives are
considered to be related parties within the meaning of IAS 24. The transactions, income and expenses with
related parties for the period 01/01/2015 to 31/12/2015 as well as the balances of their receivables and
liabilities on 31/12/2015 are broken down in the table below.
Amounts in thousand Euro
Income (sales of goods) 01/01-31/12/2015
Other affiliated parties 17,766
Total 17,766
Income (Sales of services)
Other affiliated parties 157
Total 157
Expenses (purchases of goods)
Other affiliated parties 28,255
Total 28,255
Expenses (purchases of services)
Other affiliated parties 1,610
Total 1,610
Financial expenses
Other affiliated parties 1,101
Total 1,101
Benefits to the Management
Fees for BoD members 237
Σύνολο 237
Year-end balances arising from sales and purchases of goods, services and loans:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
26
Amounts in thousand Euro
Receivables from affiliated parties 31/12/2015
Other affiliated parties 4,617
Payables to affiliated parties
Other affiliated parties 18,773
INFORMATION UNDER ARTICLE 4 §7 OF LAW 3556/2007
Detailed information on the issues under Article 4(7) of Law 3556/2007 is given below and includes,
where necessary, the stipulated explanations to the Ordinary General Meeting of shareholders pursuant
to paragraph 8 of the above article.
I. Structure of the company’s share capital
Prior to the aforementioned increase, the share capital of the company amounted to seven million six
hundred sixty-five thousand six hundred twenty-five Euros (€7,665,625), was divided into six million one
hundred thirty-two thousand five hundred (6,132,500) ordinary registered shares with voting rights and
a nominal value of one Euro and twenty-five cents (€1.25) each.
Following the above share capital increase which was completed on 24.02.2016, the company’s share
capital amounts to twenty-eight million seven hundred forty-six thousand ninety-three Euros and
seventy-five cents (€ 28,746,093.75) divided into twenty-two million nine hundred ninety-six thousand
eight hundred seventy-five (22,996,875) ordinary registered shares with voting rights and a nominal
value of €1.25 each.
All the above company shares are listed for trading on the Main Market of the Athens Stock Exchange.
The rights and obligations of the company’s shareholders, as well as those of minority interest, are
those stipulated in the Law and the company's articles of association. The liability of the company’s
shareholders is limited to the nominal value of the shares they hold.
II. Restrictions on the transfer of company shares
The shares of the company are transferred as stipulated by Law on dematerialised shares listed on
Athens Stock Exchange while the Articles of Association do not lay down any restrictions or obligations
on their transfer.
III. Significant direct or indirect holdings within the meaning of Articles 9-11 of Law
3556/2007
Prior to the above increase, the shareholders (natural or legal persons) directly or indirectly holding
more than 5% of the total number of the company’s shares are set forth in the table below:
Shareholder Share
1. Nexans Participations (France) 71.75%
2. Joint Investment Account DRAKAKIS SPYROS – AKTYPI
ARGYRO – DRAKAKIS KONSTANTINOS – STEFANAKI
MARIA
7.16%
3. HMG Globetrotter (France) 5.31%
Following the above Increase, the shareholders (natural or legal persons) directly or indirectly holding
more than 5% of the total number of the company’s shares are set forth in the table below:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
27
Shareholder Share
1. Nexans Participations (France) 88.57
2. HMG Globetrotter (France) 5.31
IV. Shares providing special audit rights
There are no shares of the company providing their holders with special audit rights.
V. Restrictions on voting right
The company's Articles of Association do not lay down any restrictions on the voting rights of its
shareholders.
VI. Agreements of the company’s shareholders
The company has not been notified of any agreements between its shareholders that may entail
restrictions on the transfer of its shares or on the exercise of the voting rights arising from its shares.
VIII. Rules applying to the appointment and replacement of BoD members and
amendment of the Articles of Association
The rules stipulated by the company’s Articles of Association as regards the appointment and
replacement of members of the Board of Directors and the amendment thereof do not differ from the
stipulations of Codified Law 2190/1920, as in force.
VIII. Competence of the BoD to issue new shares or purchase treasury stock
i. The competence of the Board of Directors to issue new shares is stipulated in Article 5 of the
company’s Articles of Association and is identified with the stipulations of Article 13 of Codified Law
2190/1920, as in force. No relevant competence is stipulated for certain members of the BoD only.
ii. The competence of the Board of Directors or certain members to purchase treasury stock is not
provided for by the company's Articles of Association and therefore the relevant provisions of Article 16
et seq. of Codified Law 2190/1920, as in force, shall apply.
IX. Major agreement in case of change of the company's control following public offer
There is no important agreement that the company has concluded and may be put into effect, amended
or expiring in case the control of the company changes following public offer.
X. Agreements with members of the Board of Directors or personnel of the company
There are no agreements concluded between the company and members of its Board of Directors or its
personnel that stipulate the payment of indemnity especially in the case of resignation or dismissal
without any well-founded reasons or termination of their tenure or employment due to public offer.
DECLARATION OF CORPORATE GOVERNANCE
I. PRINCIPLES OF CORPORATE GOVERNANCE
With the present declaration, the company, in accordance with article 43a
§3 case d of Codified Law
2190/1920 announces that it complies with the Corporate Governance Code for the listed companies
of the Hellenic Federation of Enterprises (SEV) as available on SEV’s web page www.sev.org.gr.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
28
Practices of Corporate Governance which are stipulated in the Code of Corporate Governance of SEV,
on top of the provisions of the Law, as well as potential deviations from the same code, are described
here below and are accordingly explained.
II. MAIN CHARACTERISTICS OF INTERNAL CONTROL AND RISK MANAGEMENT
SYSTEMS
The company has established processes and policy, as described in the internal regulation of the
company uploaded on its website www.nexans.gr, which aim at the application of internal checks, in
order to ensure the correct presentation of financial position and performance via the annual report
and the interim financial reports, as regards:
Identification and evaluation of the existing risks relating to the reliability of the financial status.
Planning and follow-up of the financial values.
The prevention and the revelation of fraud.
Procedures of payments, collections, insurance of company’s assets etc.
Procedures of financial closing and compilation of financial statements.
Preservation of integrity and accuracy of the financial data supplied by the company’s
information systems.
Especially for the risk management, a detailed report is included in Section 5 (Risk Management) in this
report of the Board of Directors.
A system of double (joint) signature for the legal delegation of the company has been established by the
company in most cases, to secure the safety of the efficacious internal control and the prevention of
potential irregularity.
III. OPERATION AND BASIC POWERS OF THE GENERAL MEETING AND RELATIONS WITH
THE COMPANY’S SHAREHOLDERS
Operation and basic powers of the General Meeting
The operation of the shareholders’ General Meeting, its related powers, the shareholders rights and the
way they practice it, are described in detail in articles 21 to 31 (inclusive) of the company’s articles of
association, as shown on its web page www.nexans.gr.
B. Shareholders’ rights
The rights of the shareholders are also mentioned in article 9 of the above articles of association and
especially the minority shareholders rights are detailed in article 33 of the above articles of association.
ΙV. COMPOSITION AND OPERATION OF THE BOARD OF DIRECTORS AND OTHER
MANAGERIAL, ADMINISTRATIVE OR SUPERVISORY BODIES OR COMMITTEES
A. Composition and operation of the Board of Directors
The composition and the way of operation of the company’s Board of Directors are described in detail
in articles 10 to 20 of its Articles of Association as well as in the internal regulation of the company,
which are available on its web page www.nexans.gr.
During the Ordinary General Meeting of the company’s shareholders on 29 May 2015
which was adjourned and resumed its operations on 26 June 2015, a new six-member
Board of Directors was elected, consisting of the following members in the capacities below:
1) Christof Josef Barklage, non-independent member.
2) George Karakostas, non-independent member
3) Henrik Desfontaines, non-independent member of the BoD
4) George Chryssomallis, non-independent member of the BoD
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
29
5) Demetrios Politis, independent member of the BoD and
6) Patrick Noonan, non-independent member of the BoD.
By way of decision of the Board of Directors taken on the same day (26 June 2015), the Board of
Directors was officially established as follows:
1) Christof Josef Barklage, executive member, Chairman of the Board of Directors.
2) George Karakostas, executive member, Vice-Chairman of the BoD & Managing Director
3) Henrik Desfontaines, non-executive member of the BoD
4) George Chryssomallis, independent, non-executive member of the BoD
5) Demetrios Politis, independent, non-executive member of the BoD and
6) Patrick Noonan, non-executive member of the BoD.
Thereafter, the Extraordinary General Meeting of the company’s shareholders that took place on
06.10.2015 elected a new 6-member Board of Directors for a two-year term in office, namely until a
new Board of Directors is elected by the Ordinary General Meeting of the shareholders which will be
convened during the first half of 2017. This Board consists of the following members in the capacities
below:
1) Christof Josef Barklage, non-independent member
2) Stefanos Iliadis, non-independent member of the BoD
3) Henrik Desfontaines, non-independent member of the BoD
4) George Chryssomallis, independent member of the BoD
5) Demetrios Politis, independent member of the BoD and
6) Patrick Noonan, non-independent member of the BoD.
By a decision of the Board of Directors taken on the same day (06.10.2015), the Board of Directors was
officially established as follows:
1) Christof Josef Barklage, executive member, Chairman of the Board of Directors & Managing
Director
2) Stefanos Iliadis, executive member of the BoD
3) Henrik Desfontaines, non-executive member of the BoD & Vice-chairman of the BoD
4) George Chryssomallis, independent, non-executive member of the BoD
5) Demetrios Politis, independent, non-executive member of the BoD and
6) Patrick Noonan, non-executive member of the BoD
B. Independence of the members of the Board of Directors
The two independent members of the Board of Directors meet the all requirements of the Code relating
to independence. Both independent members have served the Board of Directors for more than 12
years, but given the integrity and the professionalism of these particular persons, the company considers
that there is not any type of dependence.
C. Meetings of the Board of Directors
During the period 01.01 – 31.12.2015, the Board of Directors convened in 46 meetings, in which all
the above members of the BoD participated, either in person or under legal representation.
D. Committees of the Board of Directors
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
30
During the Ordinary General Meeting of the company’s shareholders on 29 May 2015 which was
adjourned and resumed its operations on 26 June 2015, Messieurs Henrik Desfontaines, George
Chryssomallis and Demetrios Politis were elected as members of the Audit Committee following voting.
This line-up was also kept after the Extraordinary General Meeting that took place on 06.10.2015.
Throughout 2015, an Audit Committee operated within the company in accordance with the internal
regulation and consisted of the aforementioned members.
During the period 01.01 – 31.12.2015, the Audit Committee convened in ordinary meetings, in which
all the above members participated in person and worked on the following subjects: i) follow-up of the
processing of the financial information of the full year 2014 and of the 1st / 3rd quarter and 1st half of
2015; ii) follow-up of the smooth operation of the systems of internal audit and risk management
systems, as well as follow-up of the proper operation of company’s internal auditor, iii) follow-up of the
progress of mandatory control of the relevant financial statements by the Statutory Auditor Despina
Marinou (RN SOEL 17681); and iv) review and follow-up of items relevant to the existence and
retention of the objectivity and independence of the above Statutory Auditor and of the auditing firm
PRICEWATERHOUSECOOPERS SA, particularly in relation to other services provided by them to the
company.
In addition, the proposal of the company’s BoD to the General Meeting for the appointment of the
Auditors and the relevant Auditing Firm was made following a relevant proposal by the Audit
Committee.
E. Evaluation and fees of the members of the Board of Directors
During 2015, of the members of the Board of Directors the following received remuneration: the former
Managing Director and General Manager George Karakostas who received remuneration for his
services as General Manager up until 03.09.2015 when his employment with the company was
terminated, the non-executive member of the BoD Mr. George Chryssomallis who receives
remuneration for his services as a member of the BoD, and the member of the BoD and current
General Manager of the company Mr. Stefanos Iliadis who is remunerated for his services as General
Manager since 04.09.2015.
The evaluation of the members of the Board of Directors and the determination of the remuneration of
the Managing Director is effected by the relevant competent committees of Nexans Group.
Furthermore the nominations for the members of the Board of Directors are made to the Ordinary
General Meeting of the company’s shareholders by the corresponding committee of Nexans Group, in
the capacity of Nexans Participations SA as the company’s majority shareholder.
F. Behaviour of the members of the Management and of company executives
All the company’s management members and executives must strictly adhere to the Nexans Code of
Ethics and Business Conduct, as shown on its web page www.nexans.gr.
This Code provides to the company’s personnel the right procedure to express, with discretion, any
worries for eventual irregularities relating to financial information or other subjects relating to the
company’s operation.
The Company has deployed the 2015 Action Plan of the Compliance Program which included notably
the following actions:
all new hires until October 2015, that is 11 people, have received the Nexans Code of Ethics
and Business Conduct, have undertaken 1 hour training on it and have signed the compliance
certificate,
all employees with grade, that is 28 people, have signed the compliance certificate and in
addition a refresher training on Antitrust-Competition has been organized for those persons
who failed the test last year by the company’s Group Legal Department,
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
31
30 employees were registered and completed a training on Ethics at the end of April beginning
of May 2015,
17 employees were registered and completed the 2015 mandatory Equiz on competition
the new General Manager attended the relevant face-to-face training
RESULTS - CONCLUSIONS
Ladies and Gentlemen shareholders,
We present to you the Financial Statements of Nexans Hellas S.A. for the financial year 2015. These
Financial Statements have been drawn up in accordance with the International Financial Reporting
Standards, as adopted by the European Union, pursuant to Regulation (EC) 1606/2002 of the
European Parliament and the Council of the European Union as at 19 July 2002, which was published
in the Official Journal of the European Communities (L 243) and the Regulations issued by the
European Commission, as authorised by articles 3 and 6 of the said Regulation. In drawing up the
Financial Statements, all the accrued income and expenses related to the business year have been taken
into account.
The results of NEXANS HELLAS S.A. for the period ended on December 31, 2015 are as follows:
EUR Million
2015
* Sales 72
* Losses before taxes 0.94
* Net loss 0.72
Finally, we wish to express our thanks to all our personnel for their outstanding cooperation. We also
wish to thank our shareholders and our customers for their full and continued confidence in our
company during these highly uncertain times.
Athens, 29 March 2016
The Board of Directors”
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
32
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
33
NEXANS HELLAS I.S.A.
ANNUAL FINANCIAL STATEMENTS ACCORDING TO
INTERNATIONAL FINANCIAL REPORTING STANDARDS
AS AT DECEMBER, 31st 2015
(January 1st - December 31st 2015)
NEXANS HELLAS I.S.A.
S.A. Register No.: 2176/06/B/86/06
General Commercial Registration No. 000282101000
Registered offices: 15, Messoghion Av. – GR-11526,
Athens
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
34
CONTENTS OF ANNUAL FINANCIAL STATEMENTS
PAGES
- Annual Financial Statements 34-75
Income Statement 34
Balance Sheet 35
Statement of Changes in Equity 36
Cash Flow Statement 37
- Notes to the Annual Financial Statements 38-75
1. General Information 38
2. Summary of significant accounting policies 38
3. Main accounting principles 42
4. Payroll cost 50
5. Depreciation of fixed assets 51
6. Cost of goods sold 51
7. Administrative and selling expenses 51
8. Net financial income/(expenses) 52
9. Income taxes 52
10. Tangible assets 55
11. Intangible assets 56
12. Inventories 56
13. Trade receivables 57
14. Advance payments and other receivables 58
15. Disclosures of associated parties 58
16. Cash and cash equivalents 62
17. Share capital and premium on capital stock 62
18. Statutory, untaxed and special reserves 62
19. Dividends 63
20. Employee benefits 63
21. Financial derivatives 65
22. Provisions 67
23. Trade liabilities 68
24. Short-term loans 68
25. Accrued and other short-term liabilities 69
26. Management of financial risks 70
27. Contingent receivables 72
28. Contingent liabilities 72
29. Joint Ventures 73
30. Events after the balance sheet date 73
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
35
1/1-31/12 1/1-31/12
Notes 2015 2014
INCOME:
Net sales 71,768 74,995
Cost of goods sold 6 (66,341) (72,132)
Gross profit 5,427 2,863
Administrative and selling expenses 7 (5,131) (4,867)
Other income/ (expenses) (4) 90
Operating profit/(loss) 292 (1,914)
Financial income/(expenses) 8 (1,144) (436)
Net financial result (1,144) (436)
Net income/(loss) from FX differences (88) (151)
PROFITS/ (LOSS) BEFORE TAX (940) (2,501)
Income taxes 9 225 396
NET INCOME/ (LOSS) AFTER TAX (715) (2,105)
Attributable to:
Shareholders of the company (715) (2,105)
OTHER INCOME
Actuarial profit/(loss) after deferred taxes (127) (56)
TOTAL OTHER INCOME (127) (56)
TOTAL OTHER INCOME OF PERIOD (842) (2,161)
Attributable to:
Shareholders of the company (842) (2,161)
Earnings/(Losses) per share (in Euro)
Basically (0.1166) (0.3433)
Average weighted number of shares
Ordinary shares 6,132,500 6,132,500
NEXANS HELLAS S.A.
INCOME STATEMENT
FOR THE YEAR JANUARY 1st TO DECEMBER 31st 2015
The accompanying notes on pages 38-75 are an integral part of the Financial Statements.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
36
NEXANS HELLAS S.A.
BALANCE SHEET
31 December 31 December
Notes 2015 2014
ASSETS
Long-term assets
Tangible fixed assets 10 16.578 16.433
Intangible fixed assets 11 25 44
Other long-term receivables 164 74
Deferred tax income 9 1.035 715
Total long-term assets 17.802 17.266
Current assets:
Stocks 12 9.228 10.226
Trade receivables 13 19.496 23.081
Advance payments and other receivables 14 1.606 413
Derivatives 21 25 22
Cash 16 3.971 4.810
Total current assets 34.326 38.552
TOTAL ASSETS 52.128 55.818
EQUITY AND LIABILITIES
Equity
Share capital 17 7.666 7.666
Share Premium 17 3.658 3.658
Retained Earnings (3.724) (2.882)
Reserves 18 12.816 12.816
Total equity 20.416 21.258
Long-term liabilities:
Pensions reserve 20 1.246 1.174
Total long-term liabilities 1.246 1.174
Short-term liabilities:
Suppliers 23 10.009 10.494
Derivatives 21 26 155
Short-term loans 24 15.694 18.430
Accrued and other short-term liabilities 25 3.910 3.680
Provisions 22 827 627
Total short-term liabilities 30.466 33.386
TOTAL LIABILITIES AND EQUITY 52.128 55.818
31 DECEMBER 2015
The accompanying notes on pages 38-75 are an integral part of the Financial Statements.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
37
NEXANS HELLAS S.A.
STATEMENT OF CHANGES IN EQUITY
Share Share Reserves Retained Total
capital premium earnings Equity
Balance as at 1 January 2015 7,666 3,658 12,816 (2,882) 21,258
Profit/(loss) after taxes 0 0 0 (715) (715)
Other income 0 0 0 (127) (127)
Total Other Income of Period 0 0 0 (842) (842)
Balance as at 31 December 2015 7,666 3,658 12,816 (3,724) 20,416
STATEMENT OF CHANGES IN EQUITY
Share Share Reserves Retained Total
capital premium earnings Equity
Balance as at 1 January 2014 7,666 3,658 12,916 (821) 23,419
Profit/(loss) after taxes 0 0 0 (2,105) (2,105)
Other income 0 0 0 (56) (56)
Reserves from tax-exempt income 0 0 (100) 100 0
Total Other Income of Period 0 0 (100) (2,061) (2,161)
Balance as at 31 December 2014 7,666 3,658 12,816 (2,882) 21,258
31 DECEMBER 2015
31 DECEMBER 2014
The accompanying notes on pages 38-75 are an integral part of the Financial Statements.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
38
31 December 31 December
2015 2014
Notes
Cash flow from operating activities
Net Income before tax (940) (2,501)
Plus/ (Less) adjustments for:
Depreciation 5 1,237 1,311
Provisions 801 137
Foreign exchange differences customers/vendors (1) (18)
Interest charges and related expenses 8 1,144 436
(Profit)/ Loss from derivatives valuation (132) 219
Operating profit/ (Loss) before changes in working capital 2,109 (416)
Decrease/ (increase) in stocks 998 (2,939)
Decrease/ (increase) in receivables 1,897 (6,795)
(Decrease)/ increase in liabilities (excl. loans) (420) 3,715
Less:
Interest charges and related expenses paid (1,169) (446)
Indemnities paid 19 (218) (113)
Cash inflows from operating activities (a) 3,197 (6,994)
Cash flow from investing activities:
Purchase of intangible and tangible fixed assets 10, 11 (1,362) (1,123)
Cash outflows from investing activities (b) (1,362) (1,123)
Cash flow from financing activities
Proceeds from issued / undertaken loans 0 11,920
Loan repayment (2,710) 0
Dividends paid (3) (7)
Cash outflows from financing activities (c) (2,713) 11,913
Net increase/ (decrease) in cash and cash equivalents (a)+(b)+(c) (878) 3,796
FX differences on cash items 39 15
Cash at the beginning of the period 4810 999
Cash at the end of the period 16 3,971 4,810
FOR THE YEAR JANUARY 1st TO DECEMBER 31st 2015
NEXANS HELLAS S.A.
CASH FLOW STATEMENT
The accompanying notes on pages 38-75 are an integral part of the Financial Statements.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
39
NOTES ON THE ANNUAL FINANCIAL STATEMENTS
1. GENERAL INFORMATION:
The company was established in 1973 trading under the name “MANULI HELLAS CABLES SA"
through the import of funds pursuant to Legislative Decree 2687/1953. On 2.1.1991 there was a
change in the company’s name into ALCATEL CABLES HELLAS SA and on 14.11.2000 there was a
second change in its name into NEXANS HELLAS SA.
The company is involved in the production of all kinds of cables. More specifically, the company
produces energy cables of low, medium and high voltage, paper- or plastic-insulated
telecommunications cables as well as bare conduits made of copper, aluminium and aluminium
alloys. In addition, the company produces land and submarine optical fibre cables.
The registered offices of the company are located at 15, Messoghion St, 11526, Athens while its
principal establishment and production plant are situated in Aghia Marina, Fthiotis. According to
the company’s Articles of Association, its term is set at 67 years starting from its legal constitution
(20.4.1973) and expiring on 29.12.2039.
The shares of the company are registered and traded in the Athens Stock Exchange as of March
1990.
Nexans Hellas is part of the international Nexans Group having its registered offices in Paris,
France.
The French Nexans Participations SA is the majority shareholder owing 88.57% (following
completion of the share capital increase, as detailed in the Report of the Board members).
MACROECONOMIC ENVIRONMENT
Developments during 2015 at both national and international level regarding Greece’s financing
plan, make the macroeconomic and financial environment in the country volatile. Given the nature
of the activities and financial condition of the Company, the Management of the company will
make every effort to take the necessary and possible measures to reduce any impact on the
company's activities.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
2.1 Basis of preparation: These financial statements have been prepared pursuant to
International Financial Reporting Standards (hereinafter FIRS) and the Interpretations of the
International Financial Reporting Interpretations’ Committee (IFRIC), as adopted by the
European Union and the IFRS issued by the International Accounting Standards Board (IASB).
The accounting principles which were used in the preparation and presentation of the Annual
Financial Statements are in compliance with those used for the preparation of the Company’s
financial information as at December 31st
, 2014. The Financial Statements have been posted
on the company‘s website, www.nexans.gr.
The Financial Statements have been prepared under the historical cost convention, save land
and buildings which, on the date of transition to International Financial Reporting Standards
(1 January 2004), were measured at historical acquisition cost plus adjustments under Law
2065/92 by that date and this value was used as deemed cost on that date like measurement
at fair value of financial derivative instruments.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
40
In addition to the above, the company‘s financial statements have been prepared on the
basis of “principle of continuity of business activities” having considered all the
macroeconomic and microeconomic factors and their effect on the proper operation of the
company.
2.2 Comparative items and rounding up/ down: Certain comparative items were
reclassified so as to be comparable with those of the current year. Any differences in the
amounts of the financial statements and respective amounts in the notes resulted from
rounding up/down thereof.
2.3 Approval of the Financial Statements: On 29 March 2016, the Board of Directors of
Nexans Hellas S.A. approved the annual financial statements for the period ended on 31
December 2015, which are subject to approval by the General Shareholders Meeting of the
company that will take place on 10 June 2016.
2.4 New standards, amendments to standards and interpretations: Certain new
standards, amendments to standards and interpretations have been issued that are
mandatory for periods beginning during the current financial year and subsequent years.
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
IFRIC 21 “Levies”
This interpretation sets out the accounting for an obligation to pay a levy imposed by
government that is not income tax. The interpretation clarifies that the obligating event that
gives rise to a liability to pay a levy (one of the criteria for the recognition of a liability
according to IAS 37) is the activity described in the relevant legislation that triggers the
payment of the levy. The interpretation could result in recognition of a liability later than
today, particularly in connection with levies that are triggered by circumstances on a
specific date.
Annual improvements to IFRS 2013
The amendments set out below describe the key changes to three IFRSs following the
publication of the results of the IASB’s 2011-13 cycle of the annual improvements project.
IFRS 3 “Business combinations”
This amendment clarifies that IFRS 3 does not apply to the accounting for the formation of
any joint arrangement under IFRS 11 in the financial statements of the joint arrangement
itself.
IFRS 13 “Fair value measurement”
The amendment clarifies that the portfolio exception in IFRS 13 applies to all contracts
(including non-financial contracts) within the scope of IAS 39/IFRS 9.
IAS 40 “Investment property”
The standard is amended to clarify that IAS 40 and IFRS 3 are not mutually exclusive.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
41
Standards and Interpretations effective for subsequent periods
IFRS 9 “Financial Instruments” and subsequent amendments to IFRS 9 and
IFRS 7 (effective for annual periods beginning on or after 1 January 2018)
IFRS 9 replaces the guidance in IAS 39 which deals with the classification and measurement
of financial assets and financial liabilities and it also includes an expected credit losses
model that replaces the incurred loss impairment model used today. IFRS 9 establishes a
more principles-based approach to hedge accounting and addresses inconsistencies and
weaknesses in the current model in IAS 39. The Group is currently investigating the impact
of IFRS 9 on its financial statements. The Group cannot currently early adopt IFRS 9 as it
has not yet been endorsed by the EU.
IFRS 15 “Revenue from Contracts with Customers” (effective for annual periods
beginning on or after 1 January 2018)
IFRS 15 has been issued in May 2014. The objective of the standard is to provide a single,
comprehensive revenue recognition model for all contracts with customers to improve
comparability within industries, across industries, and across capital markets. It contains
principles that an entity will apply to determine the measurement of revenue and timing of
when it is recognised. The underlying principle is that an entity will recognise revenue to
depict the transfer of goods or services to customers at an amount that the entity expects to
be entitled to in exchange for those goods or services. The Group is currently investigating
the impact of IFRS 15 on its financial statements. The standard has not yet been endorsed
by the EU.
IFRS 16 “Leases” (effective for annual periods beginning on or after 1 January 2019)
IFRS 16 has been issued in January 2016 and supersedes IAS 17. The objective of the
standard is to ensure the lessees and lessors provide relevant information in a manner that
faithfully represents those transactions. IFRS 16 introduces a single lessee accounting model
and requires a lessee to recognise assets and liabilities for all leases with a term of more
than 12 months, unless the underlying asset is of low value. IFRS 16 substantially carries
forward the lessor accounting requirements in IAS 17. Accordingly, a lessor continues to
classify its leases as operating leases or finance leases, and to account for those two types
of leases differently. The Group is currently investigating the impact of IFRS 16 on its
financial statements. The standard has not yet been endorsed by the EU.
IAS 19R (Amendment) “Employee Benefits” (effective for annual periods beginning
on or after 1 February 2015)
These narrow scope amendments apply to contributions from employees or third parties to
defined benefit plans and simplify the accounting for contributions that are independent of
the number of years of employee service, for example, employee contributions that are
calculated according to a fixed percentage of salary.
IFRS 11 (Amendment) “Joint Arrangements” (effective for annual periods beginning
on or after 1 January 2016)
This amendment requires an investor to apply the principles of business combination
accounting when it acquires an interest in a joint operation that constitutes a ‘business’.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
42
IAS 16 and IAS 38 (Amendments) “Clarification of Acceptable Methods of
Depreciation and Amortisation (effective for annual periods beginning on or after 1
January 2016)
This amendment clarifies that the use of revenue-based methods to calculate the
depreciation of an asset is not appropriate and it also clarifies that revenue is generally
presumed to be an inappropriate basis for measuring the consumption of the economic
benefits embodied in an intangible asset.
IAS 1 (Amendments) “Disclosure initiative” (effective for annual periods beginning
on or after 1 January 2016)
These amendments clarify guidance in IAS 1 on materiality and aggregation, the
presentation of subtotals, the structure of financial statements and the disclosure of
accounting policies.
Annual Improvements to IFRSs 2012 (effective for annual periods beginning on or
after 1 February 2015)
The amendments set out below describe the key changes to certain IFRSs following the
publication of the results of the IASB’s 2010-12 cycle of the annual improvements project.
IFRS 2 “Share-based payment”
The amendment clarifies the definition of a ‘vesting condition’ and separately defines
‘performance condition’ and ‘service condition’.
IFRS 3 “Business combinations”
The amendment clarifies that an obligation to pay contingent consideration which meets
the definition of a financial instrument is classified as a financial liability or as equity, on the
basis of the definitions in IAS 32 “Financial instruments: Presentation”. It also clarifies that
all non-equity contingent consideration, both financial and non-financial, is measured at
fair value through profit or loss.
IFRS 8 “Operating segments”
The amendment requires disclosure of the judgements made by management in
aggregating operating segments.
IFRS 13 “Fair value measurement”
The amendment clarifies that the standard does not remove the ability to measure short-
term receivables and payables at invoice amounts in cases where the impact of not
discounting is immaterial.
IAS 16 “Property, plant and equipment” and IAS 38 “Intangible assets”
Both standards are amended to clarify how the gross carrying amount and the
accumulated depreciation are treated where an entity uses the revaluation model.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
43
IAS 24 “Related party disclosures”
The standard is amended to include, as a related party, an entity that provides key
management personnel services to the reporting entity or to the parent of the reporting
entity.
Annual Improvements to IFRSs 2014 (effective for annual periods beginning on or
after 1 January 2016)
The amendments set out below describe the key changes to four IFRSs.
IFRS 5 “Non-current assets held for sale and discontinued operations”
The amendment clarifies that, when an asset (or disposal group) is reclassified from ‘held
for sale’ to ‘held for distribution’, or vice versa, this does not constitute a change to a plan
of sale or distribution, and does not have to be accounted for as such.
IFRS 7 “Financial instruments: Disclosures”
The amendment adds specific guidance to help management determine whether the terms
of an arrangement to service a financial asset which has been transferred constitute
continuing involvement and clarifies that the additional disclosure required by the
amendments to IFRS 7, ‘Disclosure – Offsetting financial assets and financial liabilities’ is
not specifically required for all interim periods, unless required by IAS 34.
IAS 19 “Employee benefits”
The amendment clarifies that, when determining the discount rate for post-employment
benefit obligations, it is the currency that the liabilities are denominated in that is important,
and not the country where they arise.
IAS 34 “Interim financial reporting”
The amendment clarifies what is meant by the reference in the standard to ‘information
disclosed elsewhere in the interim financial report’.
3. MAIN ACCOUNTING PRINCIPLES:
The main accounting principles adopted in the preparation of the financial statements attached
hereto are the following. These policies have been consistently applied to all the financial years
presented:
3.1 Functional and presentation currency and conversion of foreign currencies: The
functional and presentation currency used by Nexans Hellas SA in its financial statements is
Euro. Transactions in other currencies are converted into Euro by using the exchange rates
being in force on the transaction date. On the date financial statements are prepared, the
monetary items of both assets and liabilities denominated in other currencies are adjusted
so as to reflect current exchange rates.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
44
The profits and losses arising from transactions in foreign currencies and from the year-end
valuation of monetary items in foreign currencies are posted to the income statements
attached hereto, save those transactions meeting the conditions of cash flow hedging, which
are presented in equity.
3.2 Intangible fixed assets: Intangible fixed assets consist mainly of software programs and
are measured at acquisition cost less any provisions for impairment thereof and are
depreciated pursuant to their estimated useful life, which has been set at three years,
pursuant to the straight-line method.
3.3 Tangible fixed assets: Tangible fixed assets are measured at acquisition cost less
accumulated depreciation and any provisions for impairment thereof, save fields and land
that are presented at acquisition cost less any impairment. Acquisition cost includes any
expenses directly related to the acquisition of tangible assets. Subsequent expenses are
posted as an increase in the book value of the tangible assets or as a separate fixed asset to
the extent it is probable that economic benefits will flow to the company and the respective
cost can be measured reliably. Repair and maintenance cost is recognised through profit or
loss when incurred.
Tangible assets are deleted at the time of sale or withdrawal or when no other economic
benefits are expected from their continued use. The profits or losses arising from such
deletion are included in the results of the year during which the said fixed asset is deleted.
Depreciation is calculated according to the straight-line method corresponding to the
respective useful life of the relevant fixed assets. The percentages used are the following:
Category Annual percentage
Buildings 2.5%-5%
Machinery and equipment 3%-10%
Means of transportation 20%
Furniture and other equipment 20%-33%
3.4 Impairment of non-financial assets: Save intangible assets with an indefinite useful
life which are tested for impairment at least on an annual basis, the book values of other
long-term assets are examined in terms of eventual impairment wherever certain events or
changes in circumstances indicate that their book value may not be recoverable. Wherever
the book value of an asset exceeds its recoverable amount, the respective loss arising from
its impairment is posted to the income statement. The recoverable amount of an asset is
the higher of its fair value less costs to sell and its value in use. Fair value less costs to sell is
the amount obtainable from the sale of an asset in an arm’s length transaction between
knowledgeable, willing parties, less any additional, direct costs of disposal. Value in use is
the present value of the future cash flows expected to be derived from an asset’s constant
use and from the proceeds on its disposal at the end of its estimated useful life. For the
purpose of impairment testing, items of assets are grouped at the lowest level for which
cash flows may be recognised separately.
3.5 Inventories: Inventories are measured at the lower of cost and net realisable value. The
cost of finished and semi-finished goods includes all expenses incurred in bringing the
inventories to their present location and condition and comprises raw materials, labour
cost, general industrial expenditure (based on proper operating capacity without including
any borrowing costs) and packaging. The cost of raw materials and finished goods is fixed
on the basis of weighted average cost formula. Net realisable value of finished goods is the
estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale. Net realisable value of raw
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
45
materials is equal to the estimated replacement cost in the ordinary course of business. A
provision for slow turnover rate or obsolete inventories is set up wherever deemed
necessary.
3.6 Trade and other receivables and Credit Policy: The short-term accounts receivable
are initially recognised at their fair value which is equal to the invoice value and are
subsequently measured at unamortised cost based on the effective interest rate method
following provisions for any non-receivable balances. The long-term accounts receivable
(balances beyond the regular credit lines) are measured at unamortised cost using the
effective interest rate method. The company has established criteria regarding the
provision of credit to customers, which are in general based on the size of each customer’s
activity while assessing the respective financial information. On each balance sheet date, all
overdue or doubtful debts are valuated so as to specify whether a provision for doubtful debts
must be set up or not. The balance of the specific provision for doubtful debts is adjusted
accordingly on each closing date of balance sheet so as to reflect the estimated relevant
risks. Each deletion of customers’ balances is charged to the existing provision for
doubtful debts. The company’s policy consists in not writing off any receivables until the
company has recourse to all possible legal proceedings for their collection.
3.7 Cash: The Company considers time deposits and other highly liquid investments that have
an initial maturity of three months or less to be equal to cash.
For cash flow statements’ preparation, cash consists of cash on hand, deposits with banks
and cash as defined above.
3.8 Bank loans: All loans are posted initially at cost, which reflects their fair value less the
expenses for loan acquisition. Following the initial posting, loans are assessed at the
unamortised cost by applying the effective interest rate method. Loans in foreign currency
are evaluated using the closing rate at each balance sheet date.
3.9 Borrowing costs: Borrowing costs are recognised as an expense when incurred
3.10 Income recognition: Income is recognised to the extent it is probable that economic
benefits will flow to the company and the respective amounts can be measured reliably.
Income is recognised as follows:
Sale of goods
The income from the sale of goods, following deduction of turnover discounts, sales
incentives and the proportionate VAT is recognised when the significant risks and the
benefits arising from the ownership of goods are passed on to the purchaser, the income
and sales-related expenses may be fairly measured, it is probable that the transaction-
related economic benefits will flow to the company, the company exercises no
management and does not exercise any significant influence over the goods sold.
Wherever the respective selling price is subject to adjustments linked with fluctuations in
the price of market metals, income is subject to contractual positive or negative
adjustments, which are posted to transit debit and credit balances respectively until their
final settlement. Any differences between the adjustments that have been posted to
accounting books and final settlement are posted to the results of the year during which
settlement takes place.
Interest
Interest income is recognised on accrual basis.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
46
3.11 State insurance plans: The staff of the company is mainly covered by the state
insurance body which concerns the private sector (Social Security Foundation) granting
retirement and medical benefits. All employees are obliged to contribute part of their
monthly salaries to the Fund while part of the total contribution is covered by the
company. At the time of retirement, the retirement fund is responsible to pay retirement
benefits to employees. Therefore, the company has no legal or constructive obligation to
pay future benefits on the basis of this scheme.
3.12 Provisions for employee benefits:
Defined benefit programs: Defined benefit programs determine the amount of
pension benefit that an employee will receive on retirement, usually dependent on one or
more factors such as age, years of service and compensation. The liability recognised in
the statement of financial position for defined benefit programs is the present value of the
defined benefit obligation at the reporting date less the fair value of programs assets. The
defined benefit obligation is calculated annually by an independent actuary using the
method of projected unit credit. The present value of the defined benefit obligation is
calculated by discounting the expected future cash outflows using the government bond
market rates. The current service cost of defined benefit plans is recognised in the income
statement. The current service cost reflects the increase of the defined benefit obligation
resulting from the employment of employees in the year as well as changes due to
curtailments or settlements.
Past service cost is posted immediately through profit or loss.
The net interest cost is calculated as the net amount between the liability for the defined
benefit program and the fair value of plan assets over the discount rate. This cost is
included in the income statement in employee benefits.
Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognised in other comprehensive income in the year they are incurred.
Employment termination Benefits: Employment termination benefits are payable
when the company terminates employment before the normal retirement date or
whenever an employee accepts voluntary redundancy in exchange for these benefits. The
company records a liability at the earliest of the following dates: a) if the company can no
longer withdraw the offer of those benefits and b) when the entity recognises costs of
restructuring that is within the scope of IAS 37 including payment of employment
termination benefits.
3.13 Income tax (current and deferred): The expenditure for income tax includes (a) the
current income tax payable in respect of the company’s taxable profits as reformed in its
tax returns, (b) provisions for additional taxes and surcharges for fiscal years that are not
audited in tax terms as well as (c) deferred income taxes according to established tax
rates.
Deferred income tax relates to all temporary differences between the carrying amount of
assets and liabilities in the balance sheet, and the tax base of assets and liabilities.
Deferred tax liabilities are recognised for all taxable temporary differences.
A deferred tax asset is recognised in respect of all deductible temporary differences and
deferred tax assets and tax liabilities only to the extent that it is probable that a tax benefit
will be realised in the future. In such a case, a deferred tax asset is recognised on the
deductible temporary differences, deferred unused tax credits and unused tax losses.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
47
Deferred tax assets are assessed on each balance sheet date and are reduced to the
extent it is estimated that there will not be enough taxable profits in respect of which part
or all deferred tax assets may be used.
Deferred tax assets and liabilities are measured at tax rates expected to apply when the
deferred tax asset (liability) is realised (settled). The tax rates used must be based on the
rates (and tax laws) that have been enacted or substantially enacted by the balance sheet
date.
Current and deferred taxes are recognised in equity, if the items to which they relate are
credited or charged directly to equity, and not in the income statement.
3.14 Operating leases: Operating leases are those in which the lessor maintains all the
risks and rewards incident to ownership of the fixed asset. Operating lease payments are
recognised in the income statement as an expense on a straight-line basis over the lease
term.
3.15 Provisions and contingent liabilities: A provision is recognised when the company
has a present obligation (legal or constructive) as a result of a past event; it is probable
that an outflow of economic benefits will be required to settle the obligation; and a
reliable estimate can be made of the amount of the obligation. Provisions are reviewed
on a monthly basis and adjusted so as to reflect the current value of the expenditure
required to settle the obligation. As regards the provisions that will be settled in the long
run when the effect of the time value of money is material, the respective amounts are
calculated by discounting the expected future cash flows using a pre-tax discount rate that
reflects the current market assessments of the time value of money and, if necessary, the
risks specific to the liability. A contingent liability is not recognised in financial
statements, but is disclosed unless the possibility of an outflow of resources comprising
economic benefits is remote. A contingent asset is not recognised in financial statements,
but is disclosed when an inflow of economic benefits is probable.
3.16 Joint Ventures: Controlled operations concern the joint production and sale of cables.
The joint ventures have no share capital. Each joint venturer has the necessary fixed
assets and inventories and undertakes the expenses required for meeting its obligations
based on the contracts. The income, expenses and other asset and liability items of the
joint ventures relating to the company’s operations are posted and presented in the
company’ financial statements as provided for by IAS 31. No contingent assets, liabilities
or commitments arise from the joint ventures.
3.17 Earnings per share: Basic earnings per share are calculated by dividing net profits by
the weighted average number of ordinary shares outstanding during the period.
3.18 Information per sector of activity: The Management of the company (CODM - Chief
Operating Decision Maker) regularly examines budget and final data so as to evaluate the
performance and risks and allocate the company’s resources to the various operating
segments. The company’s Management defines the segments of activity based on the
above reports and divides them into business and geographical segments. A business
segment shall mean a group of assets and operations providing products and services,
which are subject to different risks and rates of return than those of other business
segments. A geographical segment shall mean a geographical area in which products or
services and the company’s fixed assets are located and which is subject to different risks
and rates of return than other areas.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
48
a) Primary type of information – Business segmentation
The company is divided into two business segments:
(1) Segment of Energy Cables: It concerns the production and marketing of low,
medium and high voltage energy cables as well as bare conductors of copper,
aluminium and aluminium alloys.
(2) Segment of Telecom Cables: It concerns the production and marketing of telecom
cables, whether be paper or plastic, land and submarine fibre-optic cables.
Financial particulars per segment are as follows:
01/01/2015 - 31/12/2015
Energy
cables
Telecom
cables Total
Net sales 50,139 4,170 54,309
Intra-company sales 17,161 298 17,459
Total sales per sector 67,300 4,468 71,768
Operating result 253 39 292
Net financial income/ (expenses) (1,144)
Net profit (loss) on FX differences (88)
Pre-tax earnings (940)
Period taxes 225
Net profit / (loss) (715)
01/01/2014 - 31/12/2014
Energy
cables
Telecom
cables Total
Net sales 57,066 4,269 61,335
Intra-company sales 13,463 197 13,660
Total sales per sector 70,529 4,466 74,995
Operating result (1,711) (203) (1,914)
Net financial income/ (expenses) (436)
Net profit (loss) on FX differences (151)
Pre-tax earnings (2,501)
Period taxes 396
Net profit / (loss) (2,105)
The investment expense paid out is broken down as follows:
Energy
cables
Telecom
cables Total
Year 2015 1,363 0 1,363
Year 2014 1,123 0 1,123
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
49
31/12/2015
Energy
cables
Telecom
cables Total
Stocks 9,466 212 9,678
Provision for slow moving stocks (363) (87) (450)
Net Inventories 9,103 125 9,228
Receivables 18,687 2,309 20,996
Provision for doubtful debts (1,441) (59) (1,500)
Net receivables 17,246 2,250 19,496
31/12/2014
Energy
cables
Telecom
cables Total
Stocks 10,485 191 10,676
Provision for slow moving stocks (420) (30) (450)
Net Inventories 10,065 161 10,226
Receivables 22,200 2,959 25,159
Provision for doubtful debts (1,914) (164) (2,078)
Net receivables 20,286 2,795 23,081
Other assets and the liabilities of the company do not concern any specific sector and,
therefore, are not set forth in the above tables.
b) Secondary type of information – Geographical segmentation.
31.12.2015 31.12.2014
Domestic sales 38,475 41,027
International sales 33,293 33,968
Total sales 71,768 74,995
31.12.2015 31.12.2014
Domestic receivables 11,593 11,243
International receivables 7,903 11,838
Total receivables 19,496 23,081
Given that the production is carried out fully in Greece, the facilities are located in Greece and
marketing takes place from Greece. Save receivables, no allocation per geographical segment
is presented as regards fixed assets, other assets and liabilities.
3.19 Financial instruments: Financial assets and financial liabilities in the balance sheet
include cash on hand, receivables, short-term liabilities, long-term liabilities and financial
derivatives.
Financial instruments are classified as financial assets, financial liabilities and equity
instruments on the basis of the substance and content of the respective contracts from
which they arise.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
50
Interest, dividends, losses and gains relating to financial liabilities or financial assets are
recognised as income or expense through profit or loss.
Financial assets and financial liabilities are offset when and only when there is a legally
enforceable right to set off and the company intends to settle on a net basis or recover the
asset and, at the same time, settle the liability.
Company investments are classified in the following categories. The classification depends
on the aim for which the asset was acquired. The Management states the classification at
the initial recognition and re-examines it at every publication date.
Loans and receivables:
This category includes non-derivative financial assets with fixed or defined payments, which
are neither traded on active markets nor intended to be sold. These financial assets are
recorded in a current assets account, with the exception of those financial assets that have
a maturity greater than 12 months from the balance sheet date. The latter assets are
recorded in non-current assets. Company loans and receivables are included in “Trade
receivables”, “Advances and other receivables” and “Cash" (notes 13,14 and 16).
3.20 Financial derivatives: The Company uses financial derivatives and in particular foreign
exchange and metal futures so as to hedge the risks arising from fluctuations in exchange
rates and metal (copper, aluminium and lead) price.
Financial derivatives are recognised at fair value at the balance sheet date. The fair value of
futures contracts is calculated by reference to the current prices of contracts with the
corresponding maturity dates (first-level valuation under IFRS 7).
Any changes in the fair value of derivatives that can be used in hedge accounting and are
highly effective, are recognised and posted directly to equity in the case of cash flow
hedges. In the case of effective fair value hedges, they are recognised through profit or loss.
Wherever the forecast future transactions or liabilities being hedged lead to the recognition
of an asset or liability, the profits and losses that had been posted to equity (cash flow
hedges) are incorporated in the initial cost valuation of such assets or liabilities.
Otherwise, amounts shown in equity are transferred to the income statement and are
classified as income or expense during the period in which the forecast hedged transactions
affect the income statement.
While certain derivatives are classified as effective hedging instruments according to
corporate policies, they do not have the characteristics required for hedge accounting
pursuant to the provisions of IAS 39 and, therefore, the profits or losses arising from
changes in the fair value of such instruments are posted directly to the period's results.
This is the kind of derivatives the company had at 31 December 2015.
3.21 Determination of fair value: The Company must disclose the basis of determining the
fair value of financial instruments that are presented in the Balance Sheet. The only financial
instruments at fair value held by the Company are derivative financial instruments that are
detailed in note 21. These financial instruments are measured in "Level 1" of the hierarchy
of fair values as described in IFRS 7. The "Level 1" fair value hierarchy refers to fair values
based on data that are available in active markets.
3.21.1 Financial assets impairment: At each balance sheet date, the company assesses
whether there is objective evidence leading to the conclusion that financial assets have
been impaired. As for available-for-sale financial assets, such evidence lies in any
important or extended reduction in fair value in relation to acquisition cost. If
impairment is established, the loss accumulated to owner’s equity, which is the
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
51
difference between acquisition cost and fair value, is carried forward to results.
Impairment losses posted to results are not reversed through profit or loss. As for trade
receivables, impairment is examined as described in Note 3.4.
3.21.2 Important accounting estimates and judgments of the Management: For
financial statements to be prepared pursuant to IFRS, the Management should proceed
to estimates and assumptions affecting the amounts of assets and liabilities, the
disclosure of contingent assets and liabilities on the date of the financial statements as
well as the amounts of income and expenses during the year. The estimates and
assumptions are based on the best possible knowledge of the company’s Management
about the current circumstances and actions.
The estimates and judgments made by Management are reviewed continually and are
based on historic data and expectations of future events that are deemed reasonable
on the basis of existing circumstances. The company makes estimates and assumptions
about the outcome of future events. Estimates and assumptions that involve significant
risk to induce substantial adjustments to the book values of assets and liabilities in the
next 12 months are as follows:
a) Estimation is required by the company for the calculation of the provision for income
tax. There are many transactions and calculations for which the final forecasted amount
of income tax is uncertain. If the final tax differs from the initially recognised tax, the
difference will affect the income tax and the provision for deferred taxation of the
period.
b) The company recognises a provision for judicial cases based on information from the
company’s Legal Service. The final outcome of the cases is uncertain.
c) The company recognises provisions for contractual obligations to its clients, which are
estimated based on historical and statistical data that arose from the resolution of
corresponding past cases.
d) The obligation to provide retirement benefits to the personnel is defined according to a
study of independent actuaries. The final liability may differ from the liability of the actuarial
calculation due to different actual data related to the discount rate, inflation rate, salary
increases, demographics and other data.
3.22 Dividends: Dividend distribution to the company’s shareholders is imposed by law and is
recognised as liability in the financial statements of the year during which it is approved by the
General Shareholders Meeting.
Distribution is posted directly to equity, following approval.
3.23 Offsets: Financial items of Assets and Liabilities are offset and the net amount is shown in the
Balance Sheet when there is an applicable legal right to offset them and the intention to pay
them on an offsetting basis.
4. PAYROLL COST:
The payroll cost included in the financial statements attached hereto is as follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
52
31/12/2015 31/12/2014
Salaries and wages 5,535 5,763
Employer's contributions 1,403 1,557
Expenses for staff retirement compensation (Note 20) 108 93
Other staff expenses 211 212
Total payroll 7,257 7,625
Less: expenses incorporated in production cost (Note 6) (5,217) (5,452)
Payroll expenses (Note 7) 2,040 2,173
5. DEPRECIATION OF FIXED ASSETS:
The depreciation of fixed assets included in the financial statements attached hereto is as follows:
31/12/2015 31/12/2014
Tangible assets depreciation (Note 10) 1,218 1,289
Intangible assets depreciation (Note 11) 19 22
Total depreciation 1,237 1,311
Less: depreciation charged to production cost (Note 6) (1,204) (1,258)
Depreciation expenses (Note 7) 33 53
6. COST OF GOODS SOLD:
The cost of goods sold included in the financial statements attached hereto is as follows:
31/12/2015 31/12/2014
Change of stocks & Cost of material sold 55,729 61,456
Payroll expenses & Other staff expenses (Note 4) 5,217 5,452
Outside services 484 321
Energy 1,154 1,245
Rents (leasing and premises) 43 43
Insurance 146 164
Repairs - Maintenance 127 85
Transport/Sales' fares 1,189 1,206
Depreciation (Note 5) 1,204 1,258
Agents Commissions 585 489
Others 463 413
Total 66,341 72,132
7. ADMINISTRATIVE AND SELLING EXPENSES:
The administrative and selling expenses included in the financial statements attached hereto are
as follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
53
31/12/2015 31/12/2014
Payroll (Note 4) 2,040 2,173
Administrative expenses 1,157 990
Other professional fees 360 479
Depreciation (Note 5) 33 53
Rents 218 278
Repairs and maintenance 181 194
Outside services received 185 195
Taxes - duties 37 33
Advertising and promotion expenses 113 50
Consumables 13 16
Provisions for doubtful debts 534 163
Other Expenses 260 243
Total 5,131 4,867
Fees of Chartered Auditors-Accountants
The total fees charged by the legal audit firm during the financial year 2015 are analysed as follows:
Fees for the mandatory audit of the financial statements 65
Fees for other audit services 62
Fees for share capital increase 76
Fees for other non audit services 59
Total 262
8. NET FINANCIAL INCOME/(EXPENSES):
The net financial income/(expenses) shown in the financial statements attached hereto is as
follows:
31/12/2015 31/12/2014
Short-term loan interest (1,144) (436)
Total financial expenses (1,144) (436)
Total financial income 0 0
Net financial income/(expenses) (1,144) (436)
9. INCOME TAXES:
Pursuant to tax laws, the tax rate applicable to companies for the fiscal year 2015 was set at 29%
while a rate of 26% applied to 2014.
The provision for income taxes presented in the Statement of Comprehensive Income is as
follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
54
31/12/2015 31/12/2014
Current income taxes
-Defered income taxes 265 426
-Provision for tax income (40) (30)
Total provision for income taxes presented in
the income statement 225 396
The reconciliation of the provision for income taxes specified following application of the Greek
tax rate to revenues before tax is summarised as follows:
31/12/2015 31/12/2014
Net Income (Losses) before income taxes (940) (2,501)
Proportionate income taxes calculated using the
applicable tax rate (29% for 2015, 26% for 2014) 272 650
Effect on defered tax due to the change of tax rate
from 26% to 29% 110 0
Non deductable expenses (117) (224)
Provision for tax income (40) (30)
Income taxes presented in the income
statement 225 396
Greek tax laws and the relevant provisions are subject to interpretations by tax authorities.
Income tax returns are submitted annually but the profits or losses stated for taxation purposes
are of provisional nature until tax authorities examine the tax returns and books of the taxpayer
concerned, at which time the respective tax liabilities will be settled. Tax losses, to the extent they
are recognised by tax authorities, may be used to set off the profits of the five fiscal years
following the relevant year.
For the fiscal years 2011 until 2015, the Greek Sociétés Anonymes and Limited Liability
companies, the Annual Financial Statements of which are obligatorily audited by Statutory
Auditors registered in the public Register of Law 3693/2008, are obliged to receive the “Annual
Certificate”, as provided for in paragraph 5 of Article 82 of the Law 2238/1994. Said Certificate
is issued following a Tax Audit conducted by the same Statutory Auditor or Audit Firm that has
audited the Annual Financial Statements. After completion of the tax audit, the statutory auditor
or audit firm issued the “Report on Tax Compliance”, accompanied by the Appendix of Detailed
Information & Data. No later than 10 days from the closing date for approval of the Financial
Statements by the General Meeting of the Shareholders, the aforementioned Report and the
relevant Appendix are electronically submitted to the Ministry of Finance by the statutory auditor
or audit firm. The Ministry can later select a sample of at least 9% of the companies that will be
re-audited by the Ministry’s competent audit services.
The company has been audited by tax authorities up to the fiscal year ended on 31 December
2007. A provision equal to € 220 has been set up for open tax years 2008 up to 2010.
For the fiscal years 2011, 2012, 2013 and 2014, the tax audit was conducted by the audit firm
PricewaterhouseCoopers S.A. without any significant tax liabilities from the outcome of these
audits, save those already included and disclosed in the corresponding Financial Statements.
For the ending fiscal year 2015, the tax audit is being carried out by the auditing firm
PricewaterhouseCoopers SA in accordance with Article 65a of Law 4172/2013 (ITC). By conducting
this tax audit, the Company's management does not expect any significant tax liabilities other than
those recorded and reported in the financial statements.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
55
Tax losses 2011 (end 2016) 2,632
Tax losses 2013 (end 2018) 3,171
Tax losses 2014 (end 2019) 1,359
Tax losses 2015 (end 2020) 840
Total tax loss carried forward 2011-2015 8,002
Expected tax profits expected to be recovered in
accordance with the company's internal planning
for the years 2016-2018 8,002
Deferred tax (x29%) 2,321
Provision for non-recognition of deferred tax on tax
losses carried forward (1,035x29%) (300)
Total of deferred tax loss carried forward 2,021
Deferred income tax relates to all temporary differences between the carrying amount of assets and
liabilities in the balance sheet, and the tax base of assets and liabilities and is calculated according
to the applicable income tax rate.
Balance at beginning, 1 January 2014 269
Charge to operating results 426
Charge to other total income 20
Balance as at 31 December 2014 715
Charge to operating results 265
Charge to other total income 55
Balance as at 31 December 2015 1,035
Deferred tax assets and liabilities are shown in the Statement of Financial Position attached hereto
as follows:
31/12/2015 31/12/2014
Deferred tax liability
- Tangible assets (1,952) (1,821)
- Derivatives valuation (metals & currencies) 0 0
Gross deferred tax liability (1,952) (1,821)
Deferred tax asset
- Derivatives valuation (metals & currencies) 1 35
- Provisions-Accrued and other short-term liabiities 600 628
- Staff compensation due to retirement 361 305
- Tax losses carried forward 2,021 1,568
- Others 4 0
Gross deferred income tax asset 2,987 2,536
Net deferred income tax 1,035 715
The greatest portion of deferred taxes is recoverable over a period higher than 12 months from the
balance sheet date. Deferred tax assets arising from tax losses and expected to be fully recovered
before expiring are broken down in the table below based on the Company’s strategic plan for
the period 2016-2018:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
56
The provision for non-recognition of deferred tax in the tax losses carried forward has been raised
mainly for the year 2011 since they are close to maturity. The provision is adjusted on a monthly
basis and is calculated in accordance with the updated data of results in relation to the provisions
raised by the Company.
Following completion of the share capital increase in March 2016, the year results are expected to
benefit from the sharp decline of financial cost and, combined with the budget of 2016, we expect
that the greatest portion of 2011 tax losses, the 5-year maturity of which will expire at the end of
2016, will be offset.
10. TANGIBLE ASSETS:
31 December 2015 Land
Buildings
and
facilities
Machinery
and
equipment
Transportation
means
Furniture and
other
equipment
Fixed assets
under
construction
(FAUC) Total
COST
1st January 2015 2,555 6,784 33,874 486 1,760 1,248 46,707
Additions 0 0 300 0 11 1,052 1,363
Carried forward from FAUC 0 0 522 0 8 (530) 0
31 December 2015 2,555 6,784 34,696 486 1,779 1,770 48,070
DEPRECIATION
1st January 2015 0 (6,316) (21,748) (486) (1,724) 0 (30,274)
Period's depreciation 0 (40) (1,153) 0 (25) 0 (1,218)
31 December 2015 0 (6,356) (22,901) (486) (1,749) 0 (31,492)
UNAMORTISED VALUE
31 December 2015 2,555 428 11,795 0 30 1,770 16,578
31 December 2014 Land
Buildings
and
facilities
Machinery
and
equipment
Transportation
means
Furniture and
other
equipment
Fixed assets
under
construction
(FAUC) Total
COST
1 January 2014 2,555 6,744 33,332 486 1,751 730 45,598
Additions 0 0 96 0 0 1,013 1,109
Carried forward from FAUC 0 40 446 0 9 (495) 0
31 December 2014 2,555 6,784 33,874 486 1,760 1,248 46,707
DEPRECIATION
1 January 2014 0 (6,265) (20,558) (486) (1,676) 0 (28,985)
Period's depreciation 0 (51) (1,190) 0 (48) 0 (1,289)
31 December 2014 0 (6,316) (21,748) (486) (1,724) 0 (30,274)
UNAMORTISED VALUE
31 December 2014 2,555 468 12,126 0 36 1,248 16,433
The company has no applicable finance leases.
There are no restrictions on the ownership or transfer or other charges on the company’s real
estate. No other item of land, buildings and buildings has been designated as guarantee for
other liabilities.
On 31 December 2015, the contractual obligations of Nexans for the purchase of fixed assets
amounted to €293.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
57
11. INTANGIBLE ASSETS:
Transactions related to intangible assets are as follows:
31 December 2015
Software and
others
COST
1 January 2015 1,511
31 December 2015 1,511
1 January 2015 (1,467)
Period's depreciation (19)
31 December 2015 (1,486)
UNAMORTISED VALUE
31 December 2015 25
31 December 2014
Software and
others
COST
1 January 2014 1,497
Additions 14
31 December 2014 1,511
1 January 2014 (1,445)
Period's depreciation (22)
31 December 2014 (1,467)
UNAMORTISED VALUE
31 December 2014 44
DEPRECIATION
DEPRECIATION
12. INVENTORIES:
Inventories are as follows:
31/12/2015 31/12/2014
Finished and semi-finished goods 5,522 5,399
Raw materials and consumables 3,390 4,853
Merchandise 766 424
9,678 10,676
Less: provision for slow turnover rate and obsolete inventories (450) (450)
Total 9,228 10,226
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
58
13. TRADE RECEIVABLES:
Trade receivables are broken down as follows:
31/12/2015 31/12/2014
Domestic customers 12,413 12,090
Foreign customers 3,762 9,256
Receivables from affiliated parties 4,191 2,600
Cheques receivable (post-dated) 630 1,213
20,996 25,159
Less: provisions for doubtful debts (1,500) (2,078)
Total 19,496 23,081
On 31 December 2015, promptly serviced trade receivables amount to €18,398 (€21,938 for
2014).
As for the receivables remaining open beyond credit limits over 30 days, a statistic provision for
doubtful debts is set up depending on the age of the receivable. On 31 December 2015, the
amount of the said receivables comes to €2,611 (€3,221 for 2014) and the respective provision to
€1,500 (€2,078 for 2014). The total amount of receivables also includes receivables that are past
due, but not all of them are considered as doubtful. Nexans Hellas, faithfully applying the rules of
IFRS, performs reliable provisions for doubtful debts, taking into account the relevant estimations of
associate lawyers for specific cases and raising additional statistical provision for the rest,
depending on their age distribution.
These receivables are broken down per age as follows:
31/12/2015 31/12/2014
30-60 days 258 74
60-90 days 9 14
90 + days 2,190 2,769
Sub-total 2,457 2,857
Cheques in delay 154 364
Total 2,611 3,221
The provisions for doubtful debts for the period ended on 31 December 2015 are broken down as
follows:
1 January 2014 1,915
Additional Provision 163
31 December 2014 2,078
Deletons of period (1,112)
Additional Provisions of period 534
Reversal in the income statement
31 December 2015 1,500
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
59
The additional provision for the year is included in the Administrative and Sales expenses (Note
7).
The credit rating of trade receivables which are not overdue or devaluated is split into the
following categories:
Receivables without external credit rating:
2015 2014
Group 1 3,264 1,164
Group 2 12,969 16,212
Group 3 2,152 4,562
Total non-devaluated receivables 18,385 21,938
Group 1 - New customers/ affiliated parties (less than 6 months)
Group 2 - Existing customers/ affiliated parties without any delays in the past (more than 6
months).
Group 3 - Existing customers/ affiliated parties (more than 6 months) with some delays in the
past. All delays have been recovered, save the ones for which we have set up
provisions for doubtful debts.
14. ADVANCE PAYMENTS AND OTHER RECEIVABLES:
Down payments and other receivables are as follows:
31/12/2015 31/12/2014
Price positive adjustments 713 112
Prepayable and withholding taxes 20 20
Accrued income 8 48
Prepaid expenses 251 7
Down payments 339 130
Staff loans and down payments 10 8Deffered Share Capital Increase
expenses (Note 28) 166 0
Others 99 88
Total 1,606 413
15. DISCLOSURES OF ASSOCIATED PARTIES:
i) Transactions with related parties:
NEXANS Hellas is a subsidiary of Nexans Participations S.A., which holds 88.57% of its share
capital. The parent company of Nexans Group is Nexans France having its registered offices
in Paris, France. There are no other main shareholders holding a significant portion of the
share capital of Nexans Hellas SA.
The balances of accounts with associated companies of Nexans Group are as follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
60
31 Dec 2015 31 Dec 2014
Receivables from:
Nexans Logistics Ltd. 1,225 1,234
Nexans Italia SpA 185 43
Nexans France 413 636
Nexans (CHINA) Wires and Cables 10 10
Nexans Romania 0 6
Nexans Iberia SL 1,062 0
Nexans Polska Sp. 0 88
QICC 0 312
Nexans Trade 5 0
Nexans Turkey 1,291 271
4,191 2,600
31 Dec 2015 31 Dec 2014
Nexans Deutschland Industries GmbH 16 15
Nexans Romania 130 0
Nexans Iberia SL 0 108
146 123
Balance of customers' downpayments
31 Dec 2015 31 Dec 2014
Liabilities to:
Nexans France 2,395 1,299
Nexans Italia SpA 76 363
Nexans Deutschland Industries GmbH 637 65
Nexans Benelux 0 5
Nexans Turkey 34 47
Nexans Morocco 1,529 0
Nexans Iberia 0 14
Nexans Network Solutions 2 0
Nexans Services 1 0
4,674 1,793
31 Dec 2015 31 Dec 2014
Nexans Norway 0 10
0 10
Balance of suppliers' downpayments
Transactions with associated companies for the periods ended on 31 December 2015 and
2014 are as follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
61
Sales to associated companies
31 Dec 2015 31 Dec 2014
Stocks, raw materials and
consumables:
Nexans Logistics Ltd. 10,804 7,082
Nexans Italia SpA 142 239
Nexans France 2,433 2,468
Nexans Nederland 26 0
Nexans Deutschland Industries GmbH (1) (15)
Nexans Norway 0 127
Nexans Romania 142 6
Nexans IKO Sweden 23 0
Nexans Turkey 1,541 2,051
Opticable 9 0
Nexans Polska Sp. 327 88
Nexans Iberia SL 1,970 1,349
QICC 14 446
17,430 13,841
31 Dec 2015 31 Dec 2014
Commercial services:
Nexans France 86 176
Nexans Trade 5 0
Nexans Turkey 3 3
Nexans (CHINA) Wires and Cables 53 71
147 250
Sales to associated companies
31 Dec 2015 31 Dec 2014
Stocks, raw materials and
consumables:
Nexans France 24,423 31,141
Nexans Italia SpA 169 431
Nexans Deutshchland 1,420 146
Nexans Benelux 1 122
Nexans Norway 0 82
Nexans Turkey 240 275
Nexans Network Solutions 2 0
Opticable 1 41
Nexans Cabling Solutions NV 0 117
Nexans Power Accessories Germany GmbH 1 0
Nexans IKO Sweden 9 6
Nexans Morocco 1,989 0
Berk-Tek USA 0 165
28,255 32,526
Purchases from associated
companies
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
62
31 Dec 2015 31 Dec 2014
Commercial services:
Nexans France 1,451 1,359
Nexans Services 32 0
Nexans Deutshchland 98 12
Nexans Romania SRL 7 0
Nexans Morocco 1 0
Nexans Iberia 21 24
1,610 1,395
Purchases from associated
companies
31 Dec 2015 31 Dec 2014
Nexans Services (Note 24) 13,953 18,429
13,953 18,429
Paid until January 2016 February 2015
Average weighted interest 6.22% 2.62%
Guaranties None None
Loans from associated companies
31 Dec 2015 31 Dec 2014
Other Liabilities to:
Nexans Services 1,101 430
1,101 430
Expenses to associated companies
All loans from associated companies mature within the year 2016.
The transactions with the Joint Ventures in which Nexans Hellas S.A. participated (see note 29) in 2015
are as follows:
NEXANS – ATERMON JOINT VENTURE FOR HEDNO 2014
31.12.2015 31.12.2014
Transactions (excl. VAT): 346 0
Receivables: 426 0
Payables: 0 0
Sales and services to associated companies are carried out at standard market prices.
Outstanding balances at year end have no security thereupon and settlement takes place in
cash. Guarantees for the above receivables have not been provided or received. As for the
period ended on 31 December 2015, the company has not set up any provision for doubtful
debts referring to amounts due from associated companies.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
63
ii) Fees paid to Directors:
The fees paid to the company’s executives and Board of Directors for the periods ended on 31
December 2015 and 2014 are as follows:
31/12/2015 31/12/2014
Employee short-term benefits 216 282
Employer's contributions 21 23
Total fees paid to managers 237 305
16. CASH AND CASH EQUIVALENTS:
Cash and cash equivalents are as follows:
31/12/2015 31/12/2014
Sight deposits in Euro 3,751 4,720
Sight deposits in foreign currency 220 90
Total 3,971 4,810
Credit rating of cash:
Rating 31/12/2015 31/12/2014
AA- 503 2,159
A+ 1,643 0
Α 7 456
Β- 0 2,195
BBB+ 152 0
RD 1,666 0
Total 3,971 4,810
17. SHARE CAPITAL AND PREMIUM ON CAPITAL STOCK:
On 31 December 2015, the share capital of the company amounted to €7,666 and was divided
into 6,132,500 ordinary registered shares with a nominal value of €1.25 each. The premium on
capital stock equal to €3,658 resulted from the issue of share capital during past financial years at
a value higher than the nominal value of shares. The share capital of the company is fully paid up.
18. STATUTORY, UNTAXED AND SPECIAL RESERVES:
Statutory, untaxed and special reserves are as follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
64
31/12/2015 31/12/2014
Statutory reserve 2,177 2,177
Untaxed and specially taxed reserves 269 269
Special law untaxed reserves and other special reserves:
-Law 1892/1990 (Article 23b) 3,291 3,291
-Law 2601/1998 5,956 5,956
-Others 1,123 1,123
10,370 10,370
Total 12,816 12,816
Statutory reserve: Pursuant to Greek commercial laws, companies are obliged to set aside each
year an amount to form the statutory reserve equal to 5% of the paid-up share capital out of the
profits of the year until such reserve is equal to one third of the capital. Distribution of statutory
reserve while the company is active is prohibited.
Untaxed and specially taxed reserves: Reserves arising from untaxed revenues and specially
taxed reserves concern interest income and gains on sale of participating shares not listed on any
stock exchange, which are exempted from taxation or are taxed by withholding tax at source. In
addition to any taxes paid in advance, these reserves are subject to taxation in case they are
distributed. During this phase, the company does not intend to distribute the reserves in question
and therefore the respective deferred taxes were not recorded in accounting books.
Special law untaxed reserves and other special reserves: Special law untaxed reserves
concern undistributed profits which are exempted from taxation by virtue of special provisions of
development laws (provided that there are sufficient profits for their formation). These reserves
mainly concern investments and are not distributed. No deferred taxes have been recorded in the
accounting books.
19. DIVIDENDS:
Pursuant to the provisions of Greek commercial laws, companies are obliged to distribute each year
a first dividend corresponding at least to 35% of post-tax earnings and after the establishment of
the statutory reserve required by law. Greek commercial laws also allow the distribution of
dividends to shareholders provided that the equity of the company – as shown in the balance
sheet following such distribution – is not less than owner’s equity plus non-distributed reserves.
20. STAFF COMPENSATION DUE TO RETIREMENT:
a) State insurance plans: The contributions of the company to social security funds for the
period ended on 31 December 2015 were posted to expenses and amounted to €1,403
(€1,557 for the period ended on 31 December 2014).
b) Staff compensation due to retirement: Pursuant to the provisions of Greek Labour Law,
employees are entitled to compensation in case they are dismissed or retire, the level of which
varies depending on the salary, the years of service and the way the employee withdraws
(dismissal or retirement) from work. No employees resigning or dismissed on justified grounds
are entitled to compensation. The compensation payable in case of retirement is equal to 40%
of the compensation that would be payable in case of unjustified dismissal. Pursuant to the
practice applying in Greece, these plans are not financed and constitute defined benefit plans
pursuant to IAS 19. The company charges accrued benefits to the results during each period
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
65
by increasing accordingly the retirement liability. Benefit payments made to retirees each
period are charged to this liability.
The posting in the net liability in the balance sheets attached hereto is as follows:
31/12/2015 31/12/2014
Net liability at beginning of year 1,174 1,117
Actual benefits paid by the company (218) (113)
Expenses recognised in income statement (Note 4) 108 94
Recognition of actuarial loss/(gain) on total income 182 76
Net liability at year end 1,246 1,174
The liabilities of the company arising from its obligation to pay retirement compensation were
fixed through actuarial studies which are compiled at the end of each fiscal year by an
independent company of internationally acknowledged actuaries. The transactions involving the
relevant items as at 31 December 2015 and 31 December 2014 are as follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
66
Accountant notifications according to IAS 19
Period 31/12/2015 31/12/2014
Present value of obligations
Present value of non funded liabilities 1,246 1,174
Net liability in the balance sheet 1,246 1,174
Constituents of results
Cost of service 78 68
Financial cost 30 26
Standard charge to the results 108 94
Recognition of actuarial loss / (gain) on total income 182 76
Total charge to the total income 290 170
Net liabilities / (income) in the Balance Sheet
Net liability at beginning of period 1,174 1,117
Profits paid directly by the company (218) (113)
Total cost recognised 108 94
Net liability in the Balance Sheet before restatement 1,064 1,098
Recognition of actuarial loss / (gain) on other income 182 76
Net liability in balance sheet 1,246 1,174
Constituents of net retirement periodic cost
Net liability at beginning of period 1,174 1,117
Cost of service 78 68
Financial cost 30 26
Profits paid directly by the company (218) (113)
Actuarial loss / (profit) 182 76
Current value of liability at end of period 1,246 1,174
Main assumptions:
Discount rate 2.00% 2.60%
Percentage of fees increase 2.00% 2.00%
Average of future working life 12.6 11.1
The discount rate is in compliance with the respective evolution of the performance of treasury
bonds within the Eurozone. The payments made for the period ended on 31 December 2015
amounted to €218 (€113 for the year ended on 31 December 2014).
21. FINANCIAL DERIVATIVES:
Forward exchange contracts and currency futures contracts
The company enters into forward exchange contracts and foreign currency futures so as to hedge
the exchange risk arising from the collection of receivables and payment of suppliers in foreign
currencies. Such contracts have different maturity dates depending on the date of the expected
collection or payment. The valuation of the company’s open positions on 31 December 2015 and
31 December 2014 is as follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
67
31 December 2015
Currency Buy/Sale
Forward buy/
(Forward sale)
amount
Forward buy/
(Forward sale)
price
Current
price
Valuation
profit/ (loss)
USD Buy 19 17 18 1
PLN Sale (400) (93) (93) 0
ZAR Sale (6,138) (379) (358) 21
(455) (433) 22
ZAR Buy 1,915 114 113 (1)
114 113 (1)
Total (341) (320) 21
31 December 2014
Currency Buy/Sale
Forward buy/
(Forward sale)
amount
Forward buy/
(Forward sale)
price
Current
price
Valuation
profit/ (loss)
USD Buy 10 8 8 0
PLN Sale (4,791) (1,128) (1,117) 12
(1,120) (1,108) 12
USD Sale (550) (434) (453) (19)
ZAR Sale (5,930) (410) (417) (6)
(844) (870) (25)
Total (1,964) (1,978) (14)
Forward metal contracts and metal futures contracts The Company enters into metal
(copper and aluminium) contracts in order to hedge the foreign exchange risk arising from
fluctuations in the price of the above metals. These contracts have different maturity dates
depending on the date of the expected purchase of such metals. The valuation of the company’s
open positions on 31 December 2015 and 31 December 2014 is as follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
68
31 December 2015
Metal Buy/Sale Quantity (tons)
Forward buy/
(Forward sale)
price
Current
price
Valuation
profit/ (loss)
Copper Buy 225 970 973 3
970 973 3
Copper Sale 0 0 (11) (11)
Lead Sale (25) (36) (41) (5)
Aluminium Sale 0 0 (9) (9)
(36) (61) (25)
Total 934 912 (22)
31 December 2014
Metal Buy/Sale Quantity (tons)
Forward buy/
(Forward sale)
price
Current
price
Valuation
profit/ (loss)
Copper Buy 450 2,325 2,335 11
2,325 2,335 11
Copper Buy 125 663 652 (11)
Aluminium Buy 275 539 421 (119)
1,203 1,073 (130)
Total 3,527 3,408 (119)
The above valuation profits as well as the realised results of closing metal futures are posted to the
cost of goods sold given that the purchase cost of raw materials, in respect of which metal
derivatives are concluded, is also posted to the cost of goods sold.
Following the amendment of IFRS 7 for the year 2015, the company must disclose the basis for
determining the fair value of financial instruments that are presented in the Balance Sheet.
Derivative financial instruments are the only financial instruments at fair value held by the
company. These financial instruments are measured at "Level 1" of the fair value hierarchy as
described in IFRS 7. The "Level 1" fair value hierarchy refers to fair values based on data that are
available in active markets.
22. PROVISIONS:
The provisions for the 12-month period ended on 31 December 2015 and 31 December 2014 are
broken down as follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
69
31/12/2015 31/12/2014
Provisions for penalty clauses 187 99
Provisions for sales 280 294
Provisions for legal matters 125 54
Provisions for restructuring 15 0
Other provisions 220 180
Total 827 627
Balance
31/12/2014 Additions
Use of
provision Reversal
Balance
31/12/2015
Provisions for penalty clauses 99 116 (28) 0 187
Other provisions 528 466 (230) (124) 640
Total 627 582 (258) (124) 827
23. TRADE LIABILITIES:
Trade liabilities are as follows:
31/12/2015 31/12/2014
Domestic suppliers 3,111 4,657
International suppliers 2,224 4,044
Intercompany obligations 4,674 1,793
Total 10,009 10,494
Analysis of financial means:
Liabilities < 1 year > 1 year
Domestic suppliers 3,111 0
International suppliers 2,224 0
Intercompany obligations 4,674 0
Total 10,009 0
31/12/2015
24. SHORT-TERM LOANS:
i) Short-term financing by Nexans Services
The outstanding balance of short-term loans totals €13,953 on 31 December 2015,
compared to €18,429 on 31 December 2014. It concerns the short-term financing by
Nexans Services in Euro, which was payable in January 2016. The loan was renewed
pursuant to the Company's needs for working capital until the date the Annual Financial
Statements were approved. In the context of such financing and having regard to its needs
for working capital, the Company had entered into a credit facility agreement (referred to as
"Framework Loan Agreement") with Nexans Services. Such agreement specified: i) the
maximum amount of the credit facility; b) the interest rate which depends on the prevailing
macroeconomic conditions and the reference indexes of financial markets at the time of each
withdrawal; and c) the term of the credit facility agreement with the 29th of February 2016
being the last withdrawal date.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
70
The weighted average rate for the year 2015 comes to 6.22% (2.62% for 2014).
31 Dec 2015 31 Dec 2014
Nexans Services (Note 15) 13,953 18,429
13,953 18,429
Average weighted interest 6.22% 2.62%
Guaranties None None
All loans from associated companies mature within the year 2016.
ii) Other short-term loans
The company keeps credit limits with banks totalling €21,500 (same as on 31 December
2014). A part of these limits is used by the company during the fiscal year. Note that the total
credit limit of €21,500, which had been granted by Greek banks to the company, includes
only €5,000 to meet the needs of short-term loans. The remaining credit limit, i.e. the
amount of €16,500, has been granted for other transactions such as issue of letters of
guarantee, assignment of receivables, etc.
The remaining short-term bank loans on 31 December 2015 and 31 December 2014
amounted to €1,741 and €1 respectively.
The interest rate is adjusted on a daily basis. The weighted average interest rate of short-term
loans for the year 2015 was 6.10% (6.12% for 2014).
31 Dec 2015 31 Dec 2014
Open balance 1,741 1
Average weighted interest 6.10% 6.12%
Guaranties None None
The interest applicable to all short-term loans on 31 December 2015 totalled €1,144 (€436
on 31 December 2014) and is included in the interest charges in the income statement
attached hereto (note 8). The fair value of loans is approximately equal to their book value.
25. ACCRUED AND OTHER SHORT-TERM LIABILITIES:
The amount presented in the balance sheet attached hereto is broken down as follows:
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
71
31/12/2015 31/12/2014
Customer downpayments 230 283
Taxes payable save income tax 1,063 428
Social security contributions 328 354
Expenses accrued 198 679
Staff remuneration payable 247 270
Negative price adjustments 1,652 1,619
Dividends payable 2 6
Others 24 41
Accruals for Share Capital Increase (Note 28) 166 0
Total 3,910 3,680
26. MANAGEMENT OF FINANCIAL RISKS:
Due to its robust international activities, the company is exposed to financial risks such as market
risks (changes in exchange rates, interest rate, and metal buying prices), credit risk, cash flow risk
and fair value risk from changes in interest rates. The risk management program of the company
focuses on the incapacity to foresee accurately the financial markets and seeks to minimise any
eventual negative effect on its financial performance.
The company employs financial derivative instruments such as metal and exchange futures and
forward contracts in order to hedge its exposure to the specific risks. Risk management is carried
out by the liquid assets management department in co-operation with procurement department
which assesses and hedges the financial risks in cooperation with the Group services faced with
such risks. The Board of Directors provides instructions and guidance on the general management
of risks such as credit risk, fair value, interest rate and exchange risks.
II. Price fluctuation risk: The volatility of the price of copper, aluminium and other raw
materials, as well as of fuels and energy could have a negative impact on the company’s sales
and results.
The cost of copper and aluminium, i.e. the most important raw materials used by the company
to manufacture its products, is subject to significant changes caused by the conditions of supply
and demand in metal exchanges, weather conditions, political and economic variables, as well
as other unknown and unforeseeable variables. Further, the fuels and energy required for the
operation of the company’s plant are also subject to significant volatility.
The core raw materials in the cables sector (copper and aluminium) concern products whose
prices are quoted on the London Metal Exchange. Therefore, purchases and sales are affected
by international price fluctuations. To hedge the risk from changes in metal prices, the
Management of the Company purchases the contained metal under the same terms applicable
to sales to customers. Sales are divided in 2 categories:
A) sales based on confirmed customer orders;
B) sales based on provisions for the domestic market which amounted to 25% of total sales
in 2015.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
72
The risk arising from the volatility of the copper and aluminium price is generated only from
those sales based on forecasts for the domestic market since if the forecasts are not
confirmed, the company’s open position in metal stock can be considerable and, if
combined with an eventual significant change (drop) in metal prices, it may result in
significant losses.
To reduce the risk arising from the volatility of raw materials cost, the Company monitors
constantly its open position in metal stock and enters into raw materials futures and forward
contracts (derivatives) whenever necessary, to hedge this risk and limit the extent of its
exposure to price fluctuations.
II. Credit Risk: The company is exposed to the credit risk of customers and commercial
partners and to their financial capacity to pay timely their liabilities.The company’s policy is
to enter into contracts with counterparties meeting top credit rating criteria while in the case
of credit risk the company seeks more collateral. Moreover, in an attempt to restrain losses
from eventual default of its customers, the company collaborates with a credit insurance
company of Nexans Group through which it insures a part of its receivables from foreign and
domestic customers. The amount of insurance depends on the credit rating of each
customer, as evaluated by the insurance company.
III. Interest rate fluctuation risk: During the greatest part of 2015, the company received on
an almost exclusive basis short-term financing from the affiliated company Nexans Services,
in order to meet its current needs for working capital. Until mid June 2015, the Company
received the said short-term financing by entering into loan agreements at regular intervals,
in line with its needs for working capital. These short-term loan agreements specified each
time: i) the amount of the loan; ii) the interest rate which was established each time
according to the prevailing macroeconomic conditions and the cost of raising capital from
money markets, and remained fixed throughout the term of each loan; and iiii) the effective
term of the loan which usually ranged from 1 week to 3 months. Since mid June 2015, the
said short-term financing from the affiliated company Nexans Services was provided at a
borrowing rate established on the basis of a mix of ratios and factors including the interest
rate of the Greek 10-year Treasury Bond and Euribor rate so as to be adapted to the country
risk applying in different periods. Such interest rate was specified for each withdrawal
throughout this borrowing (7 days). It is also estimated that the share capital increase and,
therefore, the repayment of the entire interest-bearing loan will have a positive effect and will
help minimise the risks arising from the fluctuation of the above rates.
IV. Foreign exchange risk: The vast majority of transactions, contracts and orders of the
company are executed in Euros. For the minor trade receivables and liabilities made in foreign
exchange, the Management constantly monitors the fluctuations in exchange rates and interest
rates and assesses whether the respective positions must be adopted so as to hedge the
resultant risks. In this context, the Management enters into futures and forward contracts
(derivatives) so as to limit the extent of its exposure to fluctuations of exchange rates.
V. Liquidity Risk:Liquidity risk is dealt with by ensuring adequate cash and cash equivalents,
availability of sufficient financing and by the capacity to close open positions. Due to the
dynamic nature of the activities, the cash management department aims at flexible financing
through authorised credit lines. The contractual maturity dates of trade and other receivables
and loans refer to a period less than one year.It is also estimated that the share capital
increase will have a positive effect and will help minimise the liquidity risk.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
73
VI. Fair value:The amounts presented in the balance sheets attached hereto for cash, trade
receivables, liabilities and loans, approach their respective fair values due to their
characteristics and their short-term maturity.
Fair values of derivatives are based on market assessment.
VII. Capital risk management:As regards capital management, the company aims to ensure
problem-free operation in the future so as to provide satisfactory yields to shareholders and
benefits to other contracting parties as well as to ensure the ideal capital allocation at the
lowest capital cost. To this effect, the company monitors consistently the working capital so as
to keep external financing at the lowest possible levels.It is also estimated that the share capital
increase will have a positive effect and will help minimise this risk.
31/12/2015 31/12/2014
Total loans 15,694 18,430
Less: cash (3,971) (4,810)
Net debt 11,723 13,620
Total equity 20,416 21,258
Total capital 32,139 34,878
Leverage ratio 36% 39%
27. CONTINGENT RECEIVABLES:
On 31 December 2015, the company had no contingent receivables.
28. CONTINGENT LIABILITIES:
(a) Penalties and court cases:
On 31.12.2015, there were actions, out-of-court notices and in general future claims against
the Company in the ordinary course of its business which totalled €1,420. A provision
totalling €125 has been raised for such cases and is included in the item of long-term
liabilities “Provisions” (see note 22). The Management and the legal advisors of the company
estimate that the final settlement of these cases will not have any other major effect on the
company’s financial position than the provision already raised.
(b) Commitments:
(i) Guarantees:
On 31 December 2015, the company had the following contingent liabilities:
It had issued performance bonds amounting to €6,695.
It had issued advance payment letters of guarantee totalling €517.
It had provided guarantees for its participation in various tenders totalling €2,307.
(ii) Commitments from operating leases:
On 31 December 2015, the company had operating lease agreements related to the
leasing of transportation means and buildings, with different expiry dates until 2020.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
74
The minimum future operating lease payments on the basis of non-cancellable
operating lease contracts on 31 December 2015 are as follows:
31/12/2015 31/12/2014
Within one year 229 230
2-5 years 457 577
After 5 years 0 67
Total 686 874
(iii) Capital commitments:
On 31 December 2015, the company had no commitments regarding capital
expenditure.
29. JOINT VENTURES:
On 31 December 2015, the joint venture named “JOINT VENTURE NEXANS – ATERMON FOR
HEDNO 2014” was active. The purpose of the joint venture is to supply and install underground
cables in the context of tender notice no. ΔΔ-202. The total cost of the project is €8,890. The
execution of the project will take approximately 2.5 years. This joint venture concerns the joint
agreement about a specific activity as described above. The amount proportionate to Nexans
Hellas I.S.A. is equal to €5,130 (57.7%).
The transactions with the Joint Venture in which Nexans Hellas I.S.A. (see not 15) participated
during the year 2015 were as follows:
NEXANS – ATERMON JOINT VENTURE FOR HEDNO 2014
31.12.2015 31.12.2014
Transactions (excl. VAT): 346 0
Receivables: 426 0
Payables: 0 0
30. SUBSEQUENT EVENTS:
A. Share capital increase
The Ordinary General Meeting of the company’s shareholders held on 29 May 2015 which was
postponed and resumed its operations on 26 June 2015, decided on an increase of the
company’s share capital by twenty-one million eighty thousand four hundred sixty-eight Euros
and seventy-five cents (€21,080,468.75) through the issue of up to sixteen million eight hundred
sixty-four thousand three hundred seventy-five (16,864,375) new ordinary registered shares with
voting rights and a nominal value of €1.25 each through payment in cash and a pre-emption
right in favour of old shareholders at a ratio of eleven (11) new ordinary registered shares to four
(4) old ones. The Company’s Board of Directors was also authorised to set the selling price of the
new shares in accordance with the provisions of Article 13(6) of Codified Law 2190/1920.
Indeed, during its meeting on 08.12.2015 the company decided to set the selling price at €1.25
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
75
per new share and determined the launch of the period during which shareholders could exercise
their pre-emption rights to subscribe for the new shares.
Following the above increase (hereinafter the “Increase”) and in case it would be fully subscribed,
the company’s share capital would amount to €28,746,093.75 divided into 22,996,875
ordinary registered shares with voting rights and a nominal value of €1.25 each and in this case
the total income from the issue would amount to € 21,080,468.75. Further, the General Meeting
decided that if the pre-emption right exercise period lapsed and there were still non-distributed
shares, the company's Board of Directors would distribute them at its sole discretion, as
prescribed by the law.
The Increase and the relevant amendment to Article 5 of the Company’s Articles of Association
were approved by decision No. 100109/01.10.2015 of the Ministry of Economy, Development
and Tourism which was entered in the General Electronic Commercial Registry on 01.10.2015
(Internet uploading protocol number: 100109/01.10.2015).
Specifically, the following text was added at the end of article 5(1):
By way of decision of the Ordinary General Meeting of shareholders held on 26 June 2015
following adjournment, the share capital of the company was increased by twenty-one million
eighty thousand four hundred sixty-eight Euros and seventy-five cents (€ 21,080,468.75) through
payment in cash, through the issue of sixteen million eight hundred sixty-four thousand three
hundred seventy-five (16,864,375) new ordinary registered shares with voting rights and a
nominal value of €1.25 each. Any difference between the nominal value and the selling price of
the new shares will be placed in a share premium on capital stock reserve.
The 2nd
of February 2016 was specified as cut-off date of the pre-emption right in relation to the
increase through payment in cash. The shareholders registered in the files of the Dematerialised
Securities System on 03.02.2016 and those parties having acquired pre-emption rights during
the negotiation period of said rights on the ATHEX were beneficiaries of the pre-emption rights.
The period for exercise of the pre-emption right was set from 5/2/2016 to 19/2/2016 (inclusive).
Following expiry of the above deadline, by its decisions No. 887/22.2.2016 and
888/24.2.2016, the BoD established that two (2) shareholders, i.e. Nexans Participations and
HMG Globetrotter, exercised their pre-emption right and subscribed for 77.06% of the Increase
by paying the total amount of €16,243,988.75 which corresponds to 12,995,191 new ordinary
registered shares with a total nominal value of €16,243,988.75. Further, the BoD decided to
distribute the 3,869,184 shares which were not assumed following exercise of the pre-emption
right and corresponded to a share capital of €4,836,480 to the shareholder Nexans
Participations which had exercised its pre-emption right and had expressed its interest in
assuming more shares, and further enable the full subscription for the increase.
By the above decisions, the BoD set a deadline to the shareholder Nexans Participations to pay
the above amount of €4,836,480 by 29.2.2016. Nexans Participations paid such amount during
the said deadline and specifically on 24.2.2016.
Thereafter, by way of its decision No. 889/24.2.2016 and in accordance with Article 11 of
Codified Law 2190/1920, the company’s Board of Directors certified that the Increase totalling
twenty-one million eighty thousand four hundred sixty-eight Euros and seventy-five cents
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
76
(€21,080,468.75) was paid up in full, as such Increase had been decided by the General
Meeting held on 29 May 2015 which was adjourned and resumed its operations on 26 June
2015. The BoD also certified that the company’s capital was increased by an equal amount.
Thereafter, the fully paid-up share capital of the company amounts to twenty-eight million seven
hundred forty-six thousand ninety-three Euros and seventy-five cents (€28,746,093.75) divided
into twenty-two million nine hundred ninety-six thousand eight hundred seventy-five (22,996,875)
ordinary registered shares with voting rights and a nominal value of €1.25 each.
No significant events have occurred after the 31st
of December 2015 that could substantially affect
the financial standing or the results of the company for the year ended on that date or that should
be disclosed in the financial statements, save the above share capital Increase which was
completed on 24.02.2016.
The Chairman of the BoD & Chief Executive
Officer
CHRISTOF BARKLAGE
Passport No. C2184HWHZ/2009
GERMANY
The Chief Financial Officer
ATHANASIOS GAVRIIL
ID Card No. ΑK 488502/2012 LAMIA
POLICE PRECINCT
The General Manager and Member of the
BoD
STEPHANE ILIADES
ID Card No. Σ 135415/1999
VOULIAGMENI POLICE PRECINCT
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
77
Independent Auditor’s Report
To the Shareholders of “NEXANS HELLAS S.A.”
Report on the Financial Statements
We have audited the accompanying financial statements of “NEXANS HELLAS S.A.” which
comprise the statement of financial position as of 31 December 2015 and the statement of
comprehensive income, statement of changes in equity and cash flow statement for the year
then ended and a summary of significant accounting policies and other explanatory
information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with International Financial Reporting Standards, as adopted by the
European Union, and for such internal control as management determines is necessary to
enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity's internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial
position of the NEXANS HELLAS S.A. as at December 31, 2015, and its financial performance
and cash flows for the year then ended in accordance with International Financial Reporting
Standards, as adopted by the European Union.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
78
Report on Other Legal and Regulatory Requirements
a) Included in the Board of Directors’ Report is the corporate governance statement that
contains the information that is required by paragraph 3d of article 43a of Codified Law
2190/1920.
b) We verified the conformity and consistency of the information given in the Board of
Directors’ report with the accompanying financial statements in accordance with the
requirements of articles 43a (par.3a), and 37 of Codified Law 2190/1920.
Athens, 30 March 2016
PricewaterhouseCoopers SA
Certified Auditors - Accountants
268 Kifissias Avenue, 152 32 Halandri
SOEL Reg. No 113
Dimitris Sourbis
Reg. No. SOEL 16891
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
79
INFORMATION UNDER ARTICLE 10 OF LAW 3401/2005
The following Announcements / Disclosures have been sent to the Daily Stock Exchange List
and are uploaded on both the websites of Athens Stock Exchange and of our company
www.nexans.gr.
26/01/2015 Restructuring of Board of Directors
26/01/2015 Announcement of participation in a tender launched by IPTO S.A.
17/03/2015 Announcement of participation in a tender launched by HEDNO S.A.
27/03/2015 Announcement of Financial Calendar for 2015
27/03/2015 Announcement of other important events – Announcement of publication of
the Annual Financial Report 2014
28/03/2015 Annual Financial Report 2014
23/04/2015 Announcement for the number of shares as at 08.04.2015
29/04/2015 Unclaimed dividends for the year 2008
08/05/2015 Invitation of the Shareholders to the Ordinary General Meeting
08/05/2015 Draft decisions - Board of comments on the items of the agenda of the
Ordinary General Meeting of 29.05.15
08/05/2015 Report of Board of Directors
26/05/2015 Announcement of other important events – Announcement of publication of
financial statements of 1st quarter 2015
27/05/2015 Publication of particulars of financial statements of 1st quarter 2015
28/05/2015 Publication of a majority shareholder’s letter
29/05/2015 Publication of a majority shareholder’s letter translated in Greek
29/05/2015 Postponement of the Ordinary General Meeting
16/06/2015 Publication of a majority shareholder’s letter
26/06/2015 Decisions of Ordinary General Meeting
30/07/2015 Announcement of other important events - Publication of particulars of
financial statements of 1st six-month period 2015
31/07/2015 Particulars of financial statements of 1st six-month period 2015
03/09/2015 Announcement of change of a top executive
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
80
15/09/2015 Invitation to Extraordinary General Meeting
22/09/2015 Announcement for the number of shares as at 15.09.2015
22/09/2015 Draft decisions - Board of comments on the item of the agenda of the
Extraordinary General Meeting of 06.10.2015
22/09/2015 Revised invitation to Extraordinary General Meeting
22/09/2015 Publication of a shareholder’s letter
07/10/2015 Decisions of Extraordinary General Meeting as at 06.10.2015
07/10/2015 Announcement of constitution of the Board of Directors
29/10/2015 Announcement of other important events - Publication of particulars of
financial statements of Q1-Q3 2015
30/10/2015 Particulars of financial statements of Q1-Q3 2015
03/11/2015 Decisions of Extraordinary General Meeting as at 03.11.2015
08/12/2015 Announcement of share selling price
08/12/2015 Announcement of share selling price translated in English
The website of our company www.nexans.gr displays the annual financial statements, the
annual reports, the Social Responsibility and Sustainability reports, the intermediate concise
financial reports, the audit certificates of the chartered accountant-auditor and the reports of
the Board of Directors for the year 2007 and onwards.
NEXANS HELLAS I.S.A. S.A. Register No.: 2176/06/Β/86/06, General Commercial Registration No. 000282101000 15, Messoghion Av. – GR-115 26 Athens (All amounts are in thousand Euros, unless otherwise stated)
81
Website: www.nexans.gr
Competent Supervising Authority: Ministry of Development, Competitiveness, Infrastructure, Transport and Networks
George Chryssomalis, Demetrios Politis
31.12.2015 31.12.2014 1.1-31.12.15 1.1-31.12.14
ASSETS Operating activi ties
Self-used tangible assets 16,578 16,433 Pre-tax Profits / (Loss) (940) (2,501)
Intangible assets 25 44 Plus / Less adjustments for:
Other non-current assets 164 74 Depreciation 1,237 1,311
Deferred income taxes 1,035 715 Provisions 801 137
Stocks 9,228 10,226 Foreign exchange differences (1) (18)
Receivables from customers 19,496 23,081 Interest charges and related expenses 1,144 436
Other current assets 5,602 5,245 (Profit)/Loss from derivatives valuation (132) 219
TOTAL ASSETS 52,128 55,818
Reduction / (Increase) in stocks 998 (2,939)
LIABILITIES Reduction / (Increase) in receivables 1,897 (6,795)
Share Capital 7,666 7,666 (Reduction) / Increase in liabilities (save banks) (420) 3,715
Other equity items of Company´s shareholders 12,750 13,592 Less:
Net worth of Company´s shareholders (C) 20,416 21,258 Interest charges and paid-up related expenses (1,169) (446)
(218) (113)
Provisions/Other long-terms liabilities 1,246 1,174 Total inpu t/(ou tpu t) from operating activi ties (a) 3,197 (6,994)
Short-term liabilities 15,694 18,430
Other short-term liabilities 14,772 14,956 Investment activi ties
Total l iabil i ties (D) 31,712 34,560 Purchase of tangible and intangible fixed assets (1,362) (1,123)
Total inpu t/(ou tpu t) from investment activi ties (b) (1,362) (1,123)
TOTAL NET WORTH & LIABILITIES (C)+(D) 52,128 55,818
Financial activi ties
Proceeds from loans issued / taken 0 11,920
Repayment of loans (2,710) 0
1.1- 31.12.15 1.1- 31.12.14 1.10-31.12.15 1.10-31.12.14 Dividends paid (3) (7)
Total inpu t / (ou tpu t) from financial activi ties (c) (2,713) 11,913
Turnover 71,768 74,995 17,887 20,513
Gross Profit / (Loss) 5,427 2,863 994 707 (878) 3,796
Profi t / (Loss) before tax, financial and Cash foreign exchange differences 39 15
intvestment resu lts 292 (1,914) (433) (605) Cash on hand and cash equ ivalents at beginning of year 4,810 999
Pre-tax Profits / (Loss) (940) (2,501) (794) (772) Cash on hand and cash equ ivalents at expiry of year 3,971 4,810
Profit / (Loss) after taxes (A) (715) (2,105) (785) (456)
Other costs after taxes (B) (127) (56) 0 (364)
Total costs after taxes (A) + (B) (842) (2,161) (785) (820) Additional in formation:
Basic post-tax earnings per share (in €) (0.1166) (0.3433) (0.2450) 0.2580 1.
Profit / (Loss) before tax, financial, investment (703) 359 Company has raised a provision equal to years € 220 for open tax in order to meet any
results and depreciation eventual additional tax liabilities.
2. On 31/12/2015 the company's personnel numbered 212 persons (211 on 31/12/2014).
3.
31.12.2015 31.12.2014
Equity at the beginning of period i) Income: 17,923
(01.01.2015 and 01.01.2014 respectively) 21,258 23,419 ii) Expenses: 30,966
Profit / (Loss) of the period, after taxes (842) (2,161) iii) Receivables from associated companies: 4,617
Equity at the end of period iv) Liabilities to associated companies: 18,773
(31.12.2015 and 31.12.2014 respectively) 20,416 21,258 v) Fees paid to Managers as members of the BoD: 237
4. i)
ii) The provisions on 31/12/2015 are as follows: (Amounts in thousand €)
15
125
687
5.
A thens, 29 March 2016
CHAIRMAN OF THE BoD BoD MEMBER & GENERAL MANAGER CHIEF FINANCIAL OFFICER
CHRISTOF JOSEF BARKLAGE STEPHANE ILIADES ATHANASIOS GAVRIIL
Passport No. C2184HWHZ/09 GERMANY ID Card No S 135415/199 Vouliagmeni Police Precinct ID Card No ΑΚ 488502/12 Lamia Police Precinct
its transactions with affiliated parties as per IAS 24, are as follows: (Amounts in thousand €)
The Certified Auditor: Dimitriοs Sourbis, SOEL Reg. No 16891
- Restructuring expenses:
Approval date of the financial statements by the Board of Directors: 29/03/2016
INCOME STATEMENT
(The amounts below are expressed in thousand Euro)
The below mentioned data and information, arising from the financial statements, aim at an overall information regarding the financial statement and results of Nexans Hellas s.a. Therefore, the reader is advised, before making any
investment choice or other transaction with the Company, to refer to its website, where the financial statements are presented along with the independent auditor´s report.
S.A . Register No: 2176/06/Β/86/06, General Commercial Registration No. 000282101000
Registered offices: 15, Messoghion, 11526 A thens
DATA AND INFORMATION OF THE PERIOD from January 1st 2015 to December 31st 2015
(published pursuant to Article 135 of C.L.2190/1920 on enti ties preparing individual and consolidated annual financial statements as per IAS)
The Certified Auditor´s Firm: PricewaterhouseCoopers S.A.
CASH FLOW STATEMENT
Report of the Certified Auditors: Upon concurrent opinion
- Other provisions:
The Financial Statements of the Company are consolidated by applying the full consolidation method in
the consolidated Financial Statements of Nexans S.A. Group, which holds 71.7% of the Company's Share
Capital, via Nexans Participations SA. Nexans S.A. has its registered office in Paris, France.
- Contested disputes & disputes under arbitration:
Composition of the Board of Directors: Chairman: Christof Josef Barklage, Vice-Chairman: Henrik Desfontaines, Managing Director: Stephane Iliades and members: Patrick Noonan,
The Company is involved (in the capacity of both defendant and plaintiff) in various court cases and
arbitration proceedings in the course of its ordinary operation. The Management and the legal
advisors estimate that the contingent liabilities from pending cases will amount to € 125 for which the
relevant provision has been raised.
Plus/ less adjustments for changes in working capital accounts or accounts
relating to operating activities:
BALANCE SHEET
Indemnities paid
for period (a)+(b)+(c)
Net increase / (reduction) in cash on hand and cash equ ivalents
The Company has not been audited for the fiscal years 2008, 2009 and 2010 in tax terms. The
Cumulative income and expenses from beginning of the accounting period and balances of STATEMENT OF CHANGES IN EQUITY
1,529 (603)
receivables and payables of the Company at the end of the current period, which have arisen from
Hellas I.S.A.