Investor Presentation November 2013

Transcription

1 Investor Presentation November

2 Table of Contents 1. Introduction to Mytilineos 2. Areas of Activity Power & Gas Metallurgy & Mining (M&M) Engineering, Procurement & Construction (EPC) 3. Financial Overview 4. Summary 5. Appendix 2 2

3 Introduction to Mytilineos 3

4 Mytilineos group overview Mytilineos Holdings SA ( Mytilineos or the Group ), founded in 1908, is one of the leading industrial groups in South East Europe active in Power and Gas, Metallurgy and Mining and EPC sectors Mytilineos is listed on the Athens Stock Exchange (ASE) and is 32.0% owned by the Mytilineos family Businesses Power & Gas Leading independent power producer (IPP) in Greece, with a long term strategy of becoming an integrated energy player. Sole gas importer after the local incumbent DEPA. Total capacity of 1.2GW A top-10 EPC contractor for power projects worldwide Largest integrated bauxite, alumina and aluminium complex in Europe Metallurgy & Mining Leading producer of refined alumina and primary aluminium in South-East Europe Vertically integrated Fully owns bauxite mines, an alumina refinery and an aluminium smelter with annual production capacity of 810k MT and 175k MT respectively EPC (Metka) Leading EPC contractor in the EMEA region Currently c. 1.7bn backlog*, of which around 90% stems from projects outside Greece The 2nd largest natural gas supplier in Greece Largest independent power producer in Greece *Backlog does not include the recently signed project in Iraq to be executed in collaboration with the Chinese EPC company SEPCO III. 4 4

5 Key business segments LTM Sep-2013 Group Sales: 1.4bn (1) LTM Sep-2013 EBITDA: 234m (1) Group EBITDA margin: 17% Power & Gas Metallurgy & Mining EPC LTM Sep-13 Sales 418m LTM Sep-13 EBITDA 93m EBITDA margin: 22% LTM Sep-13 Sales 469m LTM Sep-13 EBITDA 63m EBITDA margin: 13% LTM Sep-13 Sales 528m LTM Sep-13 EBITDA 90m EBITDA margin: 17% Total 1.2GW capacity through 3 gasfired power plants more environmentally friendly than PPC s lignite plants H1 2013: 10% market share of domestic power production; 44% of domestic natural gas consumption (DEPA LNG) Portfolio of RES permits worth c. 70m Lowest cost Most efficient IPP in Greece Guaranteed revenue generated through capacity payment subsidy The extensive capex program on thermal plants was completed in April Total capex spent 748m Largest vertical integrated alumina & aluminium producer in SE Europe. Benefits from alumina and aluminium off-take agreements with key industrials such as: Glencore and S&B minerals Cost optimization program of c. 145m p.a. almost complete Current cost base below historical sales price over the past 5 years Positive free cash flows throughout all peak and trough years since 2004 The leading EPC contractor for specialised large-scale energy projects in South East Europe, Middle East and Africa Around 90% of METKA s current backlog relates to projects outside Greece, while 95% concerns energy projects. Low fixed costs with minimal capital investment required Key suppliers include GE, Siemens and Alstom, Ansaldo Key growth areas include jurisdictions with significant energy development prospects (e.g. Nigeria, Jordan, Algeria, Gulf region) KORINTHOS POWER S.A. MOVAL S.A. DELPHES DISTOMON S.A. (1) Group sales and EBITDA are consolidated and include inter-company expenses of 11m and sales of 4m. 5

6 Group structure Mkt Cap: 703m 44% free float 50% + 1 share 100% 100% 50% 50% MotorOil Mkt Cap: 633m 100% 100% 100% Ag. Nikolaos 100% Power Projects Argyritis Delphes-Distomon 65% 35% Motor Oil Korinthos Power Note: Market data as of 29 Nov

7 Group history: key milestones Company founded by Mytilineos family in Athens; originally engaging in metallurgy & metals trading business Acquisition of METKA: Transformed from a local engineering and metallurgical construction company to a well established EMEA EPC contractor METKA has become the partner of choice for companies such as Alstom, GE, Siemens and Ansaldo Acquisition of Alcan s stake in Aluminium (formerly AoG); integrated alumina and aluminium producers in Europe one of the largest, vertically Strategic JV with Endesa; Endesa (Hellas) is established a key player in the Greek energy market Mytilineos acquires full control of Endesa (Hellas) buying out ENEL s (Endesa s parent company) stake in the JV; Protergia is established to house Mytilineos investments in the power sector M&M Gas JV with Motor Oil Hellas Secures a fuel supply for the partners activities, becoming a leading supplier in the Greek market 2011 Ag. Nikolaos plant assumes commercial operation 2012 Korinthos Power plant assumes commercial operation signalling the successful completion of the major capex program on thermal assets that MYTILINEOS originated in

8 Regional champion and European leader in the making GROUP STRATEGY Extract operating synergies Pursue regional leadership position in all three main sectors Create value for stakeholders Power & Gas Increase market share and become the Largest IPP in Greece Enhance its portfolio of assets and become an integrated power producer / supplier Optimize Natural Gas sourcing and extract synergies Pursue strategic alliances Metallurgy & Mining Vertical integration Focus on exports Expansion through organic growth, with continued cost focus EPC Expand in regional growth markets with strong fundamentals Full EPC scope Focus on Combined Cycle Gas Turbines (CCGT s) 8

9 Well diversified and export oriented Non-Greek revenues and exports represent 55% of the consolidated turnover (1H2013) 86% of EPC Sales refer to projects abroad mainly in MENA & Turkey region 70% of the Metallurgy sales refer to exports mainly to EU countries Metallurgy & Mining EPC 9 9

10 Current developments Mytilineos power generation capacity payments Previously capacity payments were 45,000/MW + (variable cost + 10% scheme) Currently 79,000 /MW of capacity payments per annum The new framework is expected to lead to lower load factor without having any material impact on the profitability of the energy sector. Mytilineos arbitration result with PPC Ruling of Arbitration Court electricity price of 42.5/MWh agreed vs. 48/MWh which was agreed initially for the period July 2010-December 2013 Aluminium S.A. should pay PPC c. 42.5/MWh all-in electricity cost for the entire July 2010-December 2013 period (ie 40.7/MWh plus some auxiliary charges) for its entire annual electricity consumption (some 2.5TWh pa) This compares with an interim (set by the regulator so as to apply until the arbitration is concluded) all-in cost of 48/MWh and an even higher price charged before (some 56/MWh, i.e. 40.7/MWh for 55% of electricity needs and the remaining linked to the wholesale market price) One-off gain stands at 29m which is booked in It lowers Aluminium S.A. production cost by c. 100 $/tn and removes any uncertainty regarding potential liability to PPC. Positive cash flow impact of 44m to be realized in the next couple of months The arbitration decision sets a solid benchmark in view of the renegotiation with PPC regarding the period power supply tariff in 2014 and onwards Mytilineos completes bank debt refinancing The Group concluded c. 500m debt refinancing for MYTILINEOS parent company, Aluminium S.A. and Protergia S.A. A remaining 160m project financing under Korinthos Power is expected to be concluded within the next couple of months Fairfax Holdings becomes the 3rd largest shareholder in Mytilineos Group Fairfax owns 5.02% stake in Mytilineos Group Mytilineos Group names board member from Fairfax Holdings 10

11 Areas of Activity Power & Gas 11

12 Highest load factor among natural gas fired capacity Load Factor Ranking 2013 Installed Capacity MYTILINEOS Group power plants secure the highest load factor among natural gas fired capacity High efficiency flexibility over natural gas supply strong performance Highly cash generative business on stable income Load factor rankings refer to natural gas fired capacity (Hellenic Transmission System Operator Data). 12

13 Operating the newest and most efficient gas-fired plants Merit Order CCGT s (Ranking) Protergia MYTILINEOS Group operates the most efficient CCGT assets in the domestic market having also flexibility to select over alternative natural gas supply (LNG pipeline natural gas) sources Lowest cost independent power producer in Greece Stable revenue generated by the capacity certificate payments and enhanced by operating more than the other plants due to top position on merit order Well positioned to benefit the most from the full effective liberalization of the domestic energy market 13

14 Energy portfolio Portfolio - Thermal CCGT Viotia 100% stake Most efficient CCGT in the country Load factor: 65% Net efficiency rate 57.7% (LHV) Gross capacity: 444 MW Total capex: 242m Commissioning date: June 2011 Expected fuel mix evolution (MW) LIGNITE OIL N.G. HYDRO RES CCGT KORINTHOS 65% stake Load factor: 65% Net efficiency 56.9% (LHV) Gross capacity: 436 MW Total capex: 290m Commissioning date: April A 2020F Source: PPC, HTSO, Company Information. Portfolio Renewable Energy Sources (RES) CHP Viotia 100% stake, co-generation unit Load factor: 40% Net efficiency rate: 59% Gross capacity: 334 MW Total capex: 216m Commissioning date: Jan Serves Aluminium business (steam supply for the alumina refinery) Wind Operational: 36MW Total Pipeline: 1,417MW Solar Operational: 14MW Total Pipeline: 18MW Hydro Operational: 6MW Total Pipeline: 72MW 14

15 Largest natural gas consumer in Greece MG natural gas fired plants 1.2 GW + Aluminium S.A. Refinery + MOTOR OIL Refinery MYTILINEOS Group is active in the domestic gas market through the 50% - 50% JV with MOTOR OIL HELLAS, named M&M NATURAL GAS S.A. M&M helps the Group secure natural gas at competitive rates, becoming also the 2nd largest gas supplier in Greece Existing captive MYTILINEOS MOTOR OIL portfolio exceeds 1.6 bcm of annual consumption c.40% of the total domestic consumption 15 15

16 Areas of Activity Metallurgy & Mining 16

17 Largest vertically integrated alumina and aluminum producer in Europe Bauxite Mines Alumina Refinery Aluminium Smelter Pow. Plnt. (CHP Viotia) Port Facilities Key highlights Key highlights Key highlights Key highlights Key highlights Second largest bauxite producer in Amongst largest standalone refineries ~175ktpa of production capacity On-site power and steam production On-site port facilities for large tonnage Europe with ~800ktpa of production capacity Long life of mine underpinned by globally ~15% of the market output in Europe with ~810ktpa of production capacity Established customer base Long-term off-take agreements provide security of sales offering purchasing flexibility Secured Electricity Supply Internal steam production using ships 11mt of resources Long-term off-take agreement with S&B Sufficient capacity to cover internal needs and to export natural gas ~500ktpa Long-term off-take agreement with Glencore 17

18 Global aluminium demand growth accelerates in 2013 Global AL consumption trend LME vs Premium Prices ($/TN) Market sentiment towards aluminium has improved recently on the back of improving aluminium data out of Europe and the US (China s net import position to widen, significant portion of Chinese aluminum capacity remains cash negative) Global aluminium demand expected to gain momentum in 2014 Premiums remain firm despite the upcoming review of LME warehousing deals. A potential decrease of premiums is expected to be offset by higher LME prices With most of Middle East projects complete, new primary capacity is expected to come only out of Northwestern China and India Low LME Prices - Strong AL environment 18 Source: Bloomberg, Alcoa, Harbor Intelligence.

19 Prices remain below the average cost of production LME vs Cash Cost ($/TN) LME Prices Outlook ($/TN) Prices continue to trade around the multi year long support level of $1,800 remaining below global average cash cost of production Soft pricing environment continues to hurt the global aluminium industry. Taking into account recent production cuts, market is finally expected to turn in deficit this year, for the first time in seven years Analysts expect that aluminium prices are going to average higher next year Increased weighting of commodities in financial portfolios seems to be starting again 19 Source: Harbor Intelligence, Analysts Reports, Alcoa, Bloomberg.

20 MELLON: One of the world s most ambitious cost - cutting programs, on track to meet end 2013 target Achieving our Targets Competitive electricity tariff CHP commercial operation Labor cost productivity Logistics freight costs Raw materials Replacement of HFO with natural gas Numerous other actions MELLON: Continuous Cost Focus 90% Completed Sustainable cost reduction 2014 vs. 2011= $145m p.a. 20

21 Repositioning in the global cost curve Global Primary Aluminium Cost Production Curve (Electrolysis Cost $/MT) 1 st Quartile 2 nd Quartile 3 rd Quartile 4 th Quartile 2011 AoG Most competitive Smelters (Middle East, Canada) 2012 AoG End of 2013 AoG Target end of 2014 AoG High Cost Chinese Smelters Global Average Cost: 1,840 $/MT Source: Company Information, HARBOR Intelligence, CRU ANALYSIS, MBR

22 Areas of Activity EPC - METKA 22

23 METKA business overview Business overview A leading EPC contractor with an international profile Listed on the Athens Stock Exchange (ASE) since 1973, 50% + 1 share owned by Mytilineos Holdings, since November 21, 2013 Geographically Diverse with Strong Partners Strong history of replenishing backlog mil Algeria Romania Turkey Greece Syria Middle East Pakistan 0 Country Turkey Backlog New Orders Contract Partner Equipment Supplier Expected End Date Contract Value Current Backlog OMV GE 2nd Half m 6m RWE Siemens 2nd Half m 21m SPE GE 1st Half m 54m Algeria SPE GE 2nd Half m 92m SPE GE 2nd Half m 176m Jordan SEPCO Alstom 1st Half m 107m SEPCO Alstom 1st Half m 11m Current backlog*: 1.7bn Iraq Rep. of Iraq GE 1st Half m 216m PEEGT Ansaldo Delayed 650m 112m Syria PEEGT Ansaldo Delayed 678m 678m *Backlog also includes projects in Greece but does not include the recently signed project in Iraq to be executed in collaboration with the Chinese EPC company SEPCO III (Contract value: 777m). 23

24 EPC Industry & macro overview Greece Fundamentals Weak energy demand on the back of the particularly weak macro environment Fuel mix changing with new gas-fired CCGT projects coming on-line, and increasing penetration of RES Existing capacity remains old and inefficient (excluding IPPs & Res) Prospects PPC: replacement of highly inefficient lignite fired plants New gas fired projects may emerge, but at slower rate EPC opportunities for RES, e.g CSP (concentrated solar power) South-East Eur. Central Eur. Turkey EU membership and convergence impose obligations for plant upgrades and/or closures Years of under-investment and slow progress to upgrade capacity Government support and relatively high level of acceptance for nuclear SEE: gas fired projects: potential combined cycle and COGEN projects, e.g. district heating Turkey to be the fastest growing electricity market in Europe driven by GDP growth, population increase and urbanisation - potential CCGT projects Middle East Generally strong demand - emphasis on mega-projects Need to diversify fuel sources and increasing emphasis on fuel efficiency Re-emergence of Iraq as a significant market in the medium-long term Possibilities for conversion of open cycle plants to combined cycle across the Middle East Numerous large Integrated Water & Power Plant (IWPP) projects in the Gulf Africa Strong fundamental power demand growth, often constrained by supply limitations Widespread power shortages Massive need for energy infrastructure investments Typically smaller projects with fast-track profile 24

25 Financial Overview 25

26 Historical income statement consolidated group Summary Income Statement m LTM Sep-2013 Revenue ,001 1,571 1,454 1,470 EBITDA (1) % Margin 11.8% 18.0% 19.2% 13.3% 11.7% 16.6% EBIT Less: Interest Expense (28) (24) (19) (37) (45) (66) Less: Other Expenses (3) (10) (1) (14) (4) (14) EBT Less: Tax Expense (15) (17) (33) (25) (10) (10) Discontinued Operations 2 0 (7) Net Income Attributable to equity holders Attributable to non-controlling interest (1) Includes 29m of one-off gains booked in 2013 due to settlement of arbitration with PPC. 26

27 Revenue & EBITDA evolution by segment Power & Gas Metallurgy & Mining (1) EPC mil mil mil LTM Sep-13 Turnover EBITDA LTM Sep-13 Turnover EBITDA LTM Sep-13 Turnover EBITDA EBITDA Contribution Power & Gas 13% Metallurgy & Mining 14% 2011 LTM-Sep13 Metallurgy & Mining 26% EPC 37% EPC 73% Note: 2012 Revenue / EBITDA for Power & Gas only includes 9 months of Korinthos Power. (1) Includes 29m of one-off gains booked in 2013 due to settlement of arbitration with PPC. Power & Gas 38% 27

28 Historical cash flow statement consolidated group Summary Cash Flow Statement m M 2013 EBITDA (4) Less: Interest (25) (21) (16) (43) (50) (41) Less: Cash Taxes Paid (57) (10) (39) (39) (4) (4) Change in Net Working Capital 13 (1) (31) 31 (109) 28 Other (1) 26 (26) 22 (28) (4) 0 Cash Flow from Operations Less: Capex (2) (16) (59) (164) (117) (96) (26) Less: Acquisitions & Other (31) (43) (66) (32) (35) 0 Free Cash Flow 19 (41) (100) (19) (127) 141 Less: Dividends Distributed (69) (20) (6) (12) (17) (9) Other Financing Activities (3) (110) (87) Net Cash Flow (16) 6 (254) 45 Overdraft Draw & ST Facilities (252) Ending Cash Balance Net Debt Key Ratios LTM-Sep13 Net Debt / EBITDA 3.3x 3.6x 2.8x 2.8x 4.3x 2.4x Current EV / EBITDA (4) 5.4x (1) Includes cash flows from discontinued operations. (2) Includes tangible and intangible. (3) Includes debt and equity financing / repayment transactions and other cash flow items. (4) LTM Sep-13 EBITDA is 234m. EV includes Market capitalization of 696m as of 18 Nov 2013 at share price of 5.95 and net debt of 573m. Includes 29m of one-off gains booked in 2013 due to settlement of arbitration with PPC. 28

29 9M 2013 financial highlights Group m 9m 12 9m 13 FY 12 Sales 1,095 1,051 1,454 Growth % (4.0%) (7.5%) EBITDA Margin % 10.9% 17.5% 11.7% Net Debt Net Debt / EBITDA (1) 4.1x 2.4x 4.3x Cash Flow - Group m 9m 12 9m 13 FY 12 CF Operations (11) CF Investments (99) (16) (130) CF Financial (125) (106) (127) Net Cash Flow (235) 22 (254) Increased contribution from the Power & Gas segment Continuing solid performance of EPC segment Positive performance of the Metallurgy & Mining segment despite lower LME base prices (driven by strong premiums and cost saving initiatives) METKA m 9m 12 9m 13 FY 12 Sales Growth % (0.9%) (45.4%) EBITDA Margin % 17.0% 15.9% 16.9% Net Debt (38) (131) (49) Net Debt / EBITDA (1) (0.3x) (1.5x) (0.5x) Cash Flow - METKA m 9m 12 9m 13 FY 12 CF Operations (8) 85 (24) CF Investments (68) 12 (41) CF Financial (13) (32) (37) Net Cash Flow (89) 64 (102) Delays in the execution of the projects in Syria due to climaxing political turmoil Strong EBITDA margin maintained (15.9%) Net Cash Position as of 30-Sep-13: 131m Strong Backlog: Currently 1.7 bn (1) Net Debt / EBITDA calculated off LTM EBITDA as of the respective date. 29

30 2013 financial outlook Power & Gas assets to provide stable earnings, and increasing share of Group EBITDA Weak LME prices offset by strong premiums Continued optimization of cost base through Mellon implementation EPC backlog expected to grow with numerous potential projects being bid on Continuing to monitor the environment in Syria 2013 estimated capex of c. 30 million 15 million for Metallurgy & Mining 10 million for Power & Gas segment 5 million for EPC segment 2013 EBITDA to exceed previous record high performance of 2011 Year end 2013 leverage target of under 3.0x 30

31 Capital structure Group Metka Group ( m unless stated otherwise) Group Sep-13 xltm EBITDA ( m unless stated otherwise) Metka Sep-13 xltm EBITDA Cash and cash equivalents (1) (203) Cash and cash equivalents (164) Mytilineos Holdings (2) 198 Aluminium (3) 178 Kor Power (4) 163 Protergia Gr. (3) 129 MFP (2) 46 Metka Gr. 33 Ape Karystias 16 Moval 13 Stanmed 2 Total Debt x Net Debt x LTM Sep-2013 EBITDA 234 EBITDA 9m Sep EBITDA 9m Sep EBITDA - FY Metka Gr. 33 Total Debt x Net Debt (131) (1.5x) LTM Sep-2013 EBITDA 88 EBITDA 9m Sep EBITDA 9m Sep EBITDA FY Assets by Entity (Sep-2013) Entity ( m) Metallurgy 679 EPC 826 Power & Gas 1,120 Power & Gas 42% Others 2% Metallurgy & Mining 25% (1) Includes 164m of cash at Metka. (2) In August 2013 Mytilineos Holdings has concluded an agreement for the refinancing of 100% of the company s loans, in the amount of 243 million ( 198million + 46 million), with a tenor of 3 years with an optional extension for an additional 2 years. (3) In October 2013 Group has concluded an agreement for the refinancing of 145m and 104m respectively, with a tenor of 3 years with an optional extension for an additional 2 years. (4) Refinancing of 160m is anticipated to close by end of December 2013 which will have Project Financing related features. Others 50 Total 2,676 EPC 31% 31

32 Summary 32

33 Investment highlights 1 The Group is well placed to benefit from: The liberalization of the domestic energy market Establishment of the Group at the 2 nd largest player next to PPC The establishment of METKA as one of the most reliable EPC players in Europe and the Middle East The supercycle in commodities 2 Commercial operation of three power plants; 748M capex program completed in Strong EPC business which offers highly visible cash flows and is well positioned to benefit from the expansion in regional growth markets 4 Fully integrated model in Alumina Aluminium business 5 High quality assets 6 Extracting synergies across operating segments 7 Successful management track record of value creation through a series of value enhancing deals 33

34 Appendix 34

35 MYTIL recovering faster than the market Share Price Information Market Cap: 703mn Avg. Trading Value: 1.2 mn {12M} Total No of shares: 116,915,862 Free Float: 64.0% Listing FTSE LARGE CAP 25 Tickers: MYTIL.GA, MYTr.AT Shareholder structure Retail Mytilineos Family Foreign Institutional Investors Notes: Data as of 29 November Fairfax Financial Holdings Greek Institutional Investors 35 35

36 METKA consistently outperforming the market Share Price Information Market Cap: 633mn Avg. Trading Value: 0.8 mn {12M} Total No of shares: 51,950,600 Free Float: 50.0% Listing FTSE LARGE CAP 25 Tickers: METTK.GA, MTKr.AT Shareholder structure Distributed > 170m. in dividends over the last 6yrs Retail Foreign Institutional Investors Mytilineos Holdings Greek Institutional Investors Note: Data as of 29 Nov (1) Since November 21, Mytilineos Holdings owns 50% +1 share and Ioannis Mytilineos has 0.7% stake in Metka

37 Historical balance sheet consolidated group Summary Balance Sheet m Sep-2013 Tangible Assets ,084 1,061 1,031 Trade Receivables Current Assets ,102 1,059 1,059 1,047 Total Assets 1,770 1,989 2,619 2,684 2,688 2,676 Trade Payables Current Liabilities ,113 1,420 1,107 Total Liabilities 869 1,225 1,774 1,783 1,728 1,672 Book Value of Equity ,004 Net Debt Key Ratios Net Debt / EBITDA 3.3x 3.6x 2.8x 2.8x 4.3x 2.4x Current EV / EBITDA (1) 5.4x (1) EV includes Market capitalization of 696m as of 18 Nov 2013 at share price of 5.95 and net debt of 573m. 37

38 Greek electricity market structure PPC Supply (Lignite) DEPA (Natural Gas) REFINERIES (Liquid Fuels) Fuel Supply Liberalized activity PPC is the incumbent, providing c. 74% of power to the grid R E G U L A T O R Y A U T H O R I T Y Independent Power Producers PPC Supply (99% market share) PPC Generation (74% market share) Mandatory Pool (LAGIE) Independent Power Transmission Operator (ADMIE) PPC Distribution Imports RES Independent Suppliers Generation Market operator Transmission Distribution Electricity Supply Current remuneration mechanisms are: 1) Purchase electricity at cost. 2) ADMIE pays 79,000 / MW of available capacity per annum (capacity certificates) Mandatory pool Generators offer their electricity to the market and compete in the merit order Regulated activity 100% owned by PPC Liberalized activity for high voltage and medium voltage End Consumer 38

39 These preliminary materials and any accompanying oral presentation (together, the Materials ) have been prepared by Mytilineos Holdings SA (the Company ) and are intended solely for the information of the Recipient. The Materials are in draft form and the analyses and conclusions contained in the Materials are preliminary in nature and subject to further investigation and analysis. The Materials are not intended to provide any definitive advice or opinion of any kind and the Materials should not be relied on for any purpose. The Materials may not be reproduced, in whole or in part, nor summarised, excerpted from, quoted or otherwise publicly referred to, nor discussed with or disclosed to anyone else without the prior written consent of the Company. The Company has not verified any of the information provided to it for the purpose of preparing the Materials and no representation or warranty, express or implied, is made and no responsibility is or will be accepted by the Company as to or in relation to the accuracy, reliability or completeness of any such information. The conclusions contained in the Materials constitute the Company s preliminary views as of the date of the Materials and are based solely on the information received by it up to the date hereof. The information included in this document may be subject to change and the Company has no obligation to update any information given in this report. The Recipient will be solely responsible for conducting its own assessment of the information set out in the Materials and for the underlying business decision to effect any transaction recommended by, or arising out of, the Materials. The Company has not had made an independent evaluation or appraisal of the shares, assets or liabilities (contingent or otherwise) of the Company. All projections and forecasts in the Materials are preliminary illustrative exercises using the assumptions described herein, which assumptions may or may not prove to be correct. The actual outcome may be materially affected by changes in economic and other circumstances which cannot be foreseen. No representation or warranty is made that any estimate contained herein will be achieved. 39

40 Dimitris Katralis IR Officer Tel: Fax: Mytilineos Holdings S.A. 5-7 Patroklou Str Maroussi Athens Greece Tel: Fax: