Notes to the Consolidated Financial Statements
1.\tReporting entity
Viohalco S.A. (hereafter referred to as \u201cthe Company\u201d or \u201cViohalco S.A.\u201d) is a Belgian Limited Liability Company. The Company\u2019s corporate registration number is 0534.941.439 and its registered office is located at 30 Avenue Marnix, 1000 BrusselsBelgiumThe Company\u2019s Consolidated Financial Statements include those of the Company and its subsidiaries (together referred to as\u201cViohalco\u201d).
Viohalco S.A. is the holding company and holds participations in approximately 100 subsidiaries, three of which are listed. Cenergy Holdings SA is listed on Euronext Brussels and ElvalHalcor SA, Cenergy Holdings SA and Noval Property REIC are listed on Athens Exchange. With production facilities in Greece, Bulgaria, Romania, North Macedonia and the United Kingdom, Viohalco companies specialise in the manufacture of steel, copper and aluminium products. In addition, Viohalco owns substantial real estate properties in Greece. Its shares are traded on Euronext Brussels (trading ticker \u201cVIO\u201d) and has since February 2014 its secondary listing on the Athens Stock exchange (trading ticker \u201c\u0392\u0399\u039f\u201d).
The Company\u2019s electronic address is www.viohalco.com, where the Consolidated Financial Statements have been posted.
2.\tBasis of accounting
Statement of compliance
The Consolidated Financial Statements for the year ended 31 December 2024 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union and authorized by the Company\u2019s Board of Directors on 6th March 2025.
Details of the Viohalco\u2019s accounting policies are included in Note 5.
Basis of measurement
The Consolidated Financial Statements have been prepared in accordance with the historical cost principle, with the exception of the following assets and liabilities, which are measured on an alternative basis on each reporting date.
Derivative financial instruments (fair value);
Other Investments - Equity instruments (fair value);
Net defined benefit liability (present value of the obligation);
Provisions (present value of the expected future cash flows).
The Company has prepared the Consolidated Financial Statements on the basis that it will continue to operate as a going concern.
3.\tFunctional currency and presentation currency
The functional and presentation currency of the parent Company is Euro. All amounts in the Consolidated Financial Statements are rounded to the nearest thousand, unless otherwise indicated. As such, due to rounding, figures shown as totals in certain tables may not be arithmetic aggregations of the figures that precede them.
4.\tUse of estimates and judgements
Preparing Financial Statements in line with IFRS requires that Management makes judgements, estimates and assumptions that affect the application of Viohalco\u2019s accounting policies and the reported amounts of assets, liabilities, income and expenses. The actual results may differ from these estimates.
Management\u2019s estimates and judgements are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
Information about judgements, assumptions and estimation uncertainties that have significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next financial year is included in the following notes:
Note 7.D \u2013 Revenue recognition;
Note 11.C.a \u2013 Measurement of defined benefit obligations: key actuarial assumptions;
Note 13.C \u2013 Recognition of deferred tax assets: availability of future taxable profits against which carried forward tax losses can be used;
Note 15.B - Recoverability of overdue receivable from a former customer in the Middle-East ;
Note 17.E - Impairment loss on Property, plant and equipment;
Note 18.F \u2013 Impairment loss test: key assumptions underlying recoverable amounts;
Note 19.B \u2013 Measurement of fair value of Investment property;
Note 23 & 30.C.3.e \u2013 Classification and measurement of derivatives arising from the Power Purchase Agreement (PPA) and the Green certificates of Origin (GoOs) contracts;
Note 30.C.1 \u2013 Measurement of Expected Credit Losses allowance for trade receivables and contract assets: key assumptions in determining loss rates.
5.\tSignificant accounting policies
The accounting principles described below have been consistently applied to all periods presented in these Consolidated Financial Statements and have also been consistently applied by Viohalco and its companies (subsidiaries and equity accounted investees).
5.1. Basis of Consolidation
(a)\tBusiness combinations
Acquisition of subsidiaries is accounted for using the acquisition method on the acquisition date, i.e. the date on which control is transferred to Viohalco. To assess control, Viohalco takes into account substantive potential voting rights.
Viohalco and its companies measure goodwill on the acquisition date as follows:
the fair value of the consideration paid, plus
the value of any non-controlling interests in the acquired subsidiary, less
the fair value of identifiable assets and liabilities assumed.
Any goodwill that arises is tested annually for impairment loss. Any gain on a bargain purchase is immediately recognized in the Consolidated Statement of Profit or Loss. Any expenses directly linked with acquisition are directly posted in the Consolidated Statement of Profit or Loss. Any contingent consideration is recognized at its fair value on the acquisition date.
(b) Subsidiaries
Subsidiaries are entities controlled by Viohalco. Viohalco controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of the subsidiaries are included in the consolidated financial statements from the date on which control commences, until the date on which control ceases.
(c)\tNon-controlling interests
NCI are measured at fair value or at their proportionate share of the acquiree\u2019s identifiable net assets at the date of acquisition. This measurement is done on an acquisition by acquisition basis.
Changes in Viohalco\u2019s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
(d) Loss of control
When Viohalco and its companies lose control over a subsidiary, they derecognise the assets and liabilities of the subsidiary and any related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.
(e)\tInterests in equity-accounted investees
Associates are those entities in which Viohalco has significant influence, but not control or joint control, over the financial and operating policies. This is generally the case where Viohalco holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost.
Investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement.
Joint operations: Viohalco recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements under the appropriate headings.
Joint ventures: A joint venture is an arrangement in which Viohalco has joint control, whereby Viohalco has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Interests in joint ventures are accounted for using the equity method, after initially being recognised at cost in the consolidated balance sheet.
(f)\tEquity method
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise Viohalco\u2019s share of the post-acquisition profits or losses of the investee in profit or loss, and Viohalco\u2019s share of movements in other comprehensive income of the investee in other comprehensive income, until the date on which significant influence or joint control ceases.
Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.
When Viohalco\u2019s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, Viohalco does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.
(g)\tTransactions eliminated on consolidation
Intra group balances and transactions and any unrealised income and expenses arising from intra group transactions are eliminated. Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of Viohalco\u2019s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
5.2. Foreign currency
(a)\tForeign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Viohalco\u2019s companies at the exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Foreign currency gains and losses are recognized and classified in the consolidated statement of profit or loss based on the nature of the related item of the consolidated statement of financial position.
Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.
Foreign currency differences arising from the translation of the following items are recognised in OCI:
- qualifying cash flow hedges to the extent that the hedges are effective;
- an investment in equity securities designated as at FVOCI.
(b)\tForeign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into Euro at the exchange rates of the reporting date. The income and expenses of foreign operations are translated into Euro at the exchange rates at the date of the transactions. The average rate for the period is deemed to be an appropriate rate.
Foreign currency differences are recognised in OCI and accumulated in the translation reserve, except to the extent that the translation difference is allocated to NCI.
5.3. Revenue
Viohalco recognizes revenue from the following major sources:
- Sale of customized products and revenue from projects;
- Sale of standard products;
- Rendering of services.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. Viohalco recognizes revenue when it transfers control of a product or service to a customer.
Consideration can vary because of trade discounts, volume rebates, returns or other similar items. Depending on the type of variable consideration the most appropriate method for measuring this variable consideration is used.
Sales of customized products and revenue from projects
Regarding contracts for projects and for customized products produced for the exclusive use of certain customers and with no alternative use, there is an enforceable right to payment for performance completed to date if the contract is terminated by the customer or another party for reasons other than Viohalco\u2019s subsidiaries\u2019 failure to perform as promised. Hence, it is concluded that the client controls all of the work in progress, as the goods are being produced.
Therefore, for such contracts revenue is recognised progressively based on the most appropriate output or input method, to measure progress towards completion.
The most common methods used are the following:
-\tFor performance obligations related to production of customized products, depending on the type of contract concerned, the methods to measure progress is estimated based on:
i. Production time elapsed, i.e. the ratio between the actual time spent on the production and the total number of scheduled production time. This method is used for submarine cables produced in long continuous lengths, since the production of such products normally lasts for significant period of time and, as a result, the related performance obligations are satisfied as production time elapses.
ii. The quantity of manufactured and tested products compared with the total quantity to be produced according to the contract. This method is used for customized land cables, steel pipes and aluminium products, since the production is performed in batches and as a result the performance obligations related are satisfied as certain batches of agreed quantities have been produced.
- For installation phases of cables segment\u2019s turnkey projects, the method to measure progress is based on appraisal of results achieved or milestones reached, based to clearly defined technical milestones, such as transport or meters of cables installed. When milestones are being used as a method to measure progress, these milestones faithfully depict the performance.
Sales of standard products
For products which are not considered customized, customers do not take control of the product until production is completed, therefore revenue is recognised at a point of time, when the control of the goods sold has been transferred.
The timing of the transfer of control usually occurs when the goods have been shipped to the customers\u2019 location, unless otherwise specified in the terms of the contract. The terms defined on the contracts with customers are according to Incoterms.
Revenue recognised at a point in time is invoiced either simultaneously with its recognition, or within a short time period from its recognition. A receivable is recognised when the control is transferred to the customer, as this represents the point in time at which the right to consideration becomes unconditional.
Rendering of services
Revenue is recognised using the stage-of-completion method. The total consideration in the service contracts is allocated to all performance obligations in the contract based on their stand-alone selling prices. The stand-alone selling prices are determined based on the list prices at which Viohalco sells the services in separate transactions.
Contract assets and contract liabilities
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances (contract liabilities). These contract assets and contract liabilities are presented on the Consolidated Statement of Financial Position in the lines \u2018Contract assets\u2019 and \u2018Contract liabilities,\u2019 respectively. For products and services for which revenue is recognised over time, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either upon achievement of contractual milestones, or at the final delivery and acceptance of the manufactured items.
Generally, billing occurs subsequent to revenue recognition for customized products and services performed over time resulting in contract assets. However, when advances from customers are received before revenue is recognized, a contract liability is recognized.
Contract costs
Viohalco\u2019s subsidiaries recognize the incremental costs of obtaining contracts with customers and the costs incurred in fulfilling contracts with customers that are directly associated with the contract as an asset, if those costs are expected to be recoverable and record them in the line \u201cContract costs\u201d in the Consolidated Statements of Financial Position. Incremental costs of obtaining contracts are costs incurred to obtain a contract with a customer that would not have been incurred if the contract had not been obtained.
Fulfilment costs are only capitalized if they generate or enhance resources that will be used to satisfy performance obligations in the future.
Assets arising from contract costs are amortized using either the straight-line method over a period based on the estimated contract duration or based on the portion of revenue recognised during the execution of the related contract.
Incremental costs of obtaining contracts are recognised as an expense when incurred, if the amortisation period of the assets would be one year or less.
5.4. Employee benefits
(a)\tShort-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if Viohalco and its companies have a present legal or constructive obligation to pay this amount, as a result of past service provided by the employee and the obligation can be estimated reliably.
(b)\tDefined contribution plans
Defined-contribution plans are plans for the period after the employee has ceased to work during which Viohalco and its companies pay a defined amount to a third legal entity without any other obligation. The accrued cost of defined-contribution programs is recorded as an expense in the period that it concerns.
(c)\tDefined benefit plans
Viohalco and its companies\u2019 net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The discount rate is based on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method, while benefits are attributed over the last 16 years before retirement of each employee.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, are recognised immediately in OCI. Viohalco and its companies determine the net interest expense on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability, taking into account any changes in the net defined benefit liability during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. Viohalco and its companies recognise gains and losses on the settlement of a defined benefit plan when the settlement occurs.
(d) Termination benefits
Termination benefits are expensed at the earlier of when Viohalco and its companies can no longer withdraw the offer of those benefits and when they recognise costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the reporting date, then they are discounted.
5.5. Government Grants
Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and Viohalco\u2019s companies will comply with all attached conditions.
Government grants relating to costs are deferred and recognized in the statement of profit or loss over the period necessary to match them with the costs that they are intended to compensate.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred government grants and are credited to the statement of profit or loss (line \u201cother income\u201d) on a straight line basis over the expected useful lives of the related assets.
5.6. Finance income and finance cost
Viohalco and its companies finance income and finance costs mainly include:
interest income;
interest expense;
dividend income;
Foreign currency gains and losses from loans and deposits.
Interest income or expense is recognised using the effective interest method. The \u2018effective interest rate\u2019 is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
\u2022 the gross carrying amount of the financial asset; or
\u2022 the amortised cost of the financial liability.
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset or to the amortised cost of the financial liability.
Dividend income is recognised in profit or loss on the date on which Viohalco\u2019s right to receive payment is established.
5.7. Income tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or to items recognised directly in equity or in OCI.
A. Current tax
Current tax comprised the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends.
Current tax assets and liabilities are offset only if certain criteria are met.
B. Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;
Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that Viohalco and its companies are able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
Taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that is has become probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
The measurements of deferred tax reflect the tax consequences that would follow from the manner in which Viohalco and its companies expect, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority.
The assessment for the impact of the application of International Tax Reform \u2013 Pillar Two is included in Note 13 Income Tax.
5.8. Inventories
Inventories are stated at the lower of cost and net realisable value. The cost is determined by applying the method of weighted average cost and includes the production and conversion cost and all direct expenses required to bring inventories at their current condition. The net realisable value is estimated based on the inventory\u2019s current sales price, in the ordinary course of business activities, less any possible selling expenses, whenever such a case occurs.
The write-down of inventories to net realisable value and any reversals are recognized in \u2018cost of sales\u2019 in the period in which the write-downs occur.
5.9. Property, plant and equipment
A. Recognition and measurement
Property, plant and equipment are presented at their acquisition cost less accumulated depreciation and impairment.
The acquisition cost includes all expenses that are directly associated with the asset\u2019s acquisition or self-construction. The cost of self-constructed fixed assets includes the cost of direct labour, materials and any other cost that is required for the fixed asset to be ready for use as well as any borrowing costs.
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to Viohalco and its companies.
Repair and maintenance costs are recorded in the Consolidated Statement of Profit or Loss when these are incurred.
On the sale of property, plant and equipment, any difference that may arise between the price that is received and the carrying value thereof is recorded through profit or loss in the category \u2019Other operating income/expenses\u2019.
Borrowing costs related to the construction of qualifying assets are capitalised during the period required for the construction to be completed.
B. Depreciation
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives and is generally recognised in profit or loss. Land is not depreciated. The component approach is followed if the cost of an asset comprises different major components of that asset with different useful lives.
Administrative buildings | 20-50 years |
Plants | 33-50 years |
Heavy machinery | 12-40 years |
Light machinery | 8-18 years |
Furniture | 4-10 years |
Other equipment | 4-12 years |
Transport means | 4-10 years |
Computers are included in the category \u201cOther equipment\u201d.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
C. Reclassification to investment property
When the use of a property changes from owner-occupied to investment property, the property is reclassified to investment property.
The item is reclassified at its net book value at the date of reclassification which becomes its deemed cost for subsequent accounting purposes.
D. Reclassification to assets held for sale
Non-current assets and disposal groups are reclassified as held for sale when their carrying amount will be recovered principally through a sale transaction rather than continuing use.
5.10. Intangible assets and goodwill
A. Recognition and measurement
Goodwill:Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses.
Research and development: Expenditure on research activities is recognised in profit and loss as incurred. Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercial feasible, future economic benefits are probable and Viohalco\u2019s companies intend and have sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses.
Software programs: Software licenses are recorded at their acquisition cost less accumulated amortisation. These assets are amortised on the straight line method over their estimated useful lives, which ranges between 3 to 5 years. Expenses that are associated with the software\u2019s maintenance are recognised in profit or loss in the year in which they are incurred.
Other intangible assets: Other intangible assets, including customer relationships, patents and trademarks, that are acquired by Viohalco and its companies and have finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses. Other intangible assets having indefinite useful lives are measured at cost less accumulated impairment losses.
B. Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.
C. Amortisation and useful lives
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is recognised in profit or loss. Goodwill and other intangible assets with indefinite useful lives are not amortised.
The estimated useful lives for the current and comparative periods are as follows:
Trademarks and licenses\t10 \u2013 15 years
Software programs\t3 \u2013 5 years
Some intangible assets included in \u201cTrademarks and licences\u201d have indefinite useful lives and are therefore not amortised, but subject to an impairment testing. See Note 19 for detailed information.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
5.11. Investment property
Investment property, which includes land, buildings and right of use assets, is owned by Viohalco and its subsidiaries for the collection of rents and is not used for owner purposes. Investment property is presented at cost less depreciation. When the carrying amounts of investment property exceed their recoverable value, the difference (impairment loss) is directly recorded in profit and loss as an expense. The reversal of impairment losses is also recognised in profit and loss as income. Land is not depreciated. The buildings are depreciated by applying the straight-line method. The expected useful life of buildings is 18-33 years.
Management exercises judgement to determine whether a property qualifies as investment property or not. The criteria related to this judgement are as follows:
\u2022\tWhether a property generates cash flows derived from rentals and capital appreciation largely independently of the other assets held by Viohalco;
\u2022\tWhether a property does not generate cash flows from the production or supply of goods or services or the use of property for administrative purposes that are attributable not only to property, but also to other assets used in the production or supply process;
\u2022\tWhether a building that is vacant will be held to be leased out or for capital appreciation;
\u2022\tWhether a property that is being constructed or developed for future use as investment property;
\u2022\tWhether Viohalco holds land for a currently undetermined future use.
5.12. Assets held for sale
Non-current assets or disposal groups comprising assets and liabilities are classified as held-for-sale, if it is highly probable that they will be recovered primarily through sale rather than through continuing use.
Such assets or disposal groups are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets or employee benefits which continue to be measured in accordance Viohalco and its companies\u2019 other accounting policies. Impairment losses on initial classification as held-for-sale and subsequent gains and losses on remeasurement are recognised in profit or loss.
Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreciated and any equity-accounted investee is no longer equity accounted.
5.13. Impairment
A. Non-derivative financial assets
Financial instruments and contract assets
Viohalco recognises loss allowances for ECLs on:
financial assets measured at amortised cost;
contract assets;
lease receivables.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs, except for cash and cash equivalents (12-month expected credit loss).
Viohalco considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations in full, without recourse by Viohalco companies to actions such as realizing security (if any is held).
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which Viohalco companies are exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that Viohalco expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. Impairment losses related to trade and other receivables, including contract assets, are presented separately in the statement of profit or loss.
Write-off
The gross carrying amount of a financial asset is written off when Viohalco has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For all customers, Viohalco individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. Viohalco expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with Viohalco\u2019s procedures for recovery of amounts due.
B. Non-financial assets
At each reporting date, Viohalco and its companies review the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset\u2019s recoverable amount is estimated.
Goodwill and intangible assets with indefinite useful life is tested annually for impairment loss.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Viohalco companies, also, include in their review of the recoverable amounts assumptions related to the consequences of climate change.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss under \u2019Other expenses\u2018. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed.
For other assets, an impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
5.14. Leases
At inception of a contract, Viohalco assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Viohalco companies use the definition of a lease in IFRS 16.
Accounting for lease contracts as a lessee
Viohalco companies lease various offices, warehouses, machinery and cars. Rental contracts are usually made for fixed periods of 1 to 5 years, with some exceptions like lease of specialized machinery, ports, gas cylinders and land which are leased for longer periods.
Viohalco recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, comprising the following:
the amount of the initial measurement of lease liability;
any lease payments made at or before the commencement date less any lease incentives received;
any initial direct costs; and
restoration costs.
Subsequently, the right-of-use asset is measured at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the following lease payments:
fixed payments (including in-substance fixed payments), less any lease incentives receivable;
variable lease payment that are based on an index or a rate;
amounts expected to be payable by the lessee under residual value guarantees;
the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
Lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate of the component that entered into the lease agreement. Generally, Viohalco uses its incremental borrowing rate as the discount rate.
This is the rate that the lessee, i.e. each subsidiary of Viohalco, would have to pay on the commencement date of the lease for a loan of a similar term, and with similar security, to obtain an asset of similar value to the right-of-use asset in similar economic environment.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payment made. It is remeasured if there is a modification that is not accounted for as a separate lease; when there is a change in future lease payments arising from a change in an index or rate; a change in the estimate of the amount expected to be payable under a residual value guarantee; and changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.
Lease liabilities and right-of-use assets are presented separately in the statement of financial position. Right-of-use assets that meet the definition of investment property are presented within \u2018Investment property\u2019.
Viohalco has elected not to separate non-lease components from lease components.
Payments associated with leases of 12 months or less and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Low-value assets comprise IT-equipment and small items of office furniture.
Viohalco applies judgement to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessment of whether Viohalco is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognised.
Viohalco has elected to present interest paid related to lease liabilities in the Consolidated Statement of Cash Flows, within the line \u2019Interest charges & related expenses paid\u2018 in operating activities.
Accounting for lease contracts as a lessor
Leases in which Viohalco companies do not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income is recognised as revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognised as expense over the lease term on the same basis as lease income.
5.15. Financial instruments
(a) Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when Viohalco becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.
(b) Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI \u2013 debt investment; FVOCI \u2013 equity investment; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless Viohalco changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
-\tit is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
-\tits contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, Viohalco may irrevocably elect to present subsequent changes in the investment\u2019s fair value in OCI. This election is made on an investment-by-investment basis.
All financial assets (except derivatives to which cash flow hedging is applied) not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. On initial recognition, Viohalco may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL, if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Financial assets \u2013 Business model assessment:
Viohalco makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with Viohalco companies\u2019continuing recognition of the assets.
Financial assets \u2013 Assessment whether contractual cash flows are solely payments of principal and interest:
For the purposes of this assessment, \u2018principal\u2019 is defined as the fair value of the financial asset on initial recognition. \u2018Interest\u2019 is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin. In assessing whether the contractual cash flows are solely payments of principal and interest, Viohalco considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, Viohalco considers:
contingent events that would change the amount or timing of cash flows;
terms that may adjust the contractual coupon rate, including variable-rate features;
prepayment and extension features; and
terms that limit the claim to cash flows from specified assets (e.g. non-recourse features).
Financial assets \u2013 Subsequent measurement and gains and losses:
Financial assets at FVTPL | These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. |
Financial assets at amortised cost | These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. |
Debt investments at FVOCI | These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. |
Equity investments at FVOCI | These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. |
Financial liabilities \u2013 Classification, subsequent measurement and gains and losses:
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial
liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
(c) Derecognition
Financial assets
Viohalco derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which Viohalco neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
Viohalco enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised.
Financial liabilities
Viohalco derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. Viohalco also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
(d) Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, Viohalco currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
(e) Derivatives and hedge accounting
Viohalco\u2019s companies hold derivative financial instruments designated as fair value or cash flow hedges. Derivatives are used to cover risks arising from changes in prices of metals, fluctuations of foreign exchange rates, changes in interest rates on borrowings and changes in prices of energy.
Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are generally recognised in profit or loss, unless the instrument qualifies for cash flow hedge accounting. Gain or losses from derivatives are classified as operating or financing expense according to the classification of the hedged item.
Power Purchase Agreements (PPAs)
Viohalco first assesses Power Purchase Agreements (PPAs) and the related Green certificates of origin (GoOs) contracts, following the requirements of IFRS 10, IFRS 11 or IAS 28, to conclude whether there is a control, joint control or a significant influence over the underlying renewable facilities and if not, then the requirements of IFRS 16 for lease recognition are considered. When the outcome of the above assessment is that Viohalco companies neither control, joint control or exercise significant influence nor leases the underlying facilities, then such agreements are accounted for as derivative financial instruments to the extent that the criteria for exemption from IFRS 9 scope as own-use contracts are not met.
Accordingly, where the agreements to deliver non-financial items (e.g. electricity, GoOs) are in accordance with the expected purchase requirements of Viohalco, the own-use criterion of IFRS 9 is met and these are accounted for as executory contracts. Thereafter, the executory agreements are further assessed whether they contain embedded derivatives which meet IFRS 9 requirements to be accounted for separately from their host contract.
Fair value hedge
Derivatives are designated as fair value hedges when the exposure to changes in the fair value of a recognized financial asset or liability is hedged.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the Consolidated Statement of Profit or Loss, along with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Cash flow hedge
The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognised in the \u2019Hedging reserve\u2018. Any ineffective proportion is recognized immediately in profit or loss.
The amounts recorded in \u201cHedging Reserve\u201d are reclassified to the consolidated statement of profit or loss in the same period or periods during which the hedged forecast cash flows affect profit or loss or the hedged item affects profit or loss. When a hedge
item is sold or when the hedging proportion no longer meets the hedge accounting criteria, hedge accounting is discontinued prospectively, the amounts recorded in \u2018Hedging reserve\u2019 remain as a reserve and are reclassified to the consolidated statement of profit or loss when the hedged asset affects profits or losses.
In the case of a hedge on a forecast future transaction which is no longer expected to be realized, the amounts recorded in \u2018Hedging reserve\u2019 are reclassified to the consolidated statement of profit or loss.
Viohalco\u2019s companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively), the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined.
5.16. Cash & cash equivalents
Cash and cash equivalents comprise cash on hand and deposits held at call with financial institutions and highly liquid deposits that are readily convertible (even before agreed maturity date) to known amounts of cash and subject to an insignificant risk of change in value.
5.17. Share capital
Shareholder\u2019s equity is composed of ordinary shares.
Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity. Income tax relating to transaction costs of an equity transaction is accounted in equity (see note 5.7).
5.18. Provisions
Provisions are measured by discounting the expected future cash flows at a pre-tax rate. The discount rate used for the determination of present value reflects current market assessments of the time value of money and the risks specific to the obligation.
Provisions are recognised when:
(a)\tThere is a present legal or constructive obligation as a result of past events.
(b)\tPayment is probable to settle the obligation.
(c)\tThe amount of the payment in question can be reliably estimated.
More specifically:
Provisions for pending court rulings are recognised when it is more likely than not, that a present obligation from this litigation exists, and payment is probable.
Assurance warranty provisions are recognised when the product is sold and according to historical experience (probability that sold products will need to be replaced). The initial estimate of warranty-related costs is revised annually.
Restructuring provisions are recognised only when Viohalco has a constructive obligation, which is when a detailed formal plan identifies the business or part of the business concerned, the location and number of employees affected, a detailed estimate of the associated costs and an appropriate timeline, and the employees affected have been notified of the plan\u2019s main features or when the company has already started to implement the plan.
A provision for onerous contracts is measured at the present value of the lower of the expected cost of terminating a contract and the expected net cost of continuing with the contract. Before the provision is established, Viohalco recognises any impairment loss on the associated assets with the contract.
5.19. Earnings per Share
Viohalco presents basic and diluted earnings per share. Basic earnings per share are calculated by dividing the net profit/ loss attributable to holders of the Company\u2019s ordinary shares by the average weighted number of outstanding ordinary shares during each period.
Diluted earnings per share are determined by adjusting the profit or loss attributable to holders of ordinary shares and the average weighted number of outstanding ordinary shares by the effect of all diluted eventual ordinary shares consisting of convertible notes and shares with options granted to the staff.
5.20. Operating profit
Operating profit is the result generated from the continuing principal revenue-producing activities of Viohalco as well as other income and expenses related to operating activities. Operating profit excludes net finance costs, share of profit of equity-accounted investees and income taxes.
5.21. Fair value measurement
\u2018Fair value\u2019 is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which Viohalco has access at that date. The fair value of a liability reflects its non-performance risk.
A number of Viohalco\u2019s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.
When one is available, Viohalco measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as \u2018active\u2019 if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
If there is no quoted price in an active market, then Viohalco uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction.
If an asset or a liability measured at fair value has a bid price and an ask price, then Viohalco measures assets and long positions at a bid price and liabilities and short positions at an ask price.
The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price \u2013 i.e. the fair value of the consideration given or received. If Viohalco determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability, nor based on a valuation technique for which any unobservable inputs are judged to be insignificant in relation to the measurement, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out.
5.22. CO2Emission rights
Emission rights are accounted for under the net liability method, based on which Viohalco companies recognize a liability for emissions during the calendar year. Viohalco companies estimate the free allowances allocated and the emissions produced during the year. When emissions exceed free allowances, the companies recognize the future liability based on the net deficit and the budget estimate for the EUA price during the year. The projected deficit is covered at market prices by purchasing EUAs either on a forward or spot basis. The total cost of all forward and spot purchases represents the realized liability during the year.
5.23. New standards, amendment to standards and interpretations of IFRS\u2019s
A number of new or amended standards became applicable for the current financial year and subsequent years. Viohalco has applied all of the new standards, interpretations and amendments to existing standards that were mandatory for the first time in the fiscal year beginning 1 January 2024 and none of the new or amended standards and interpretations has had material impact on recognition and measurement in the Consolidated Financial Statements.
Standards and Interpretations effective for the current financial year
The following new standard and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2024 and have been endorsed by the European Union:
Amendments to IAS 1 \u2018Presentation of Financial Statements: Classification of Liabilities as current or non-current\u2019, affect only the presentation of liabilities in the statement of financial position \u2014 not the amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose about those items. They:
\u2022\tClarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the \u201cright\u201d to defer settlement by at least twelve months and make explicit that only rights in place \u201cat the end of the reporting period\u201d should affect the classification of a liability;
\u2022\tClarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.
\u2022\tClarify how conditions with which an entity must comply within 12 months after the reporting period, such as covenants, affect the corresponding liability\u2019s classification.
Amendments to IAS 7 \u2018Statement of Cash Flows\u2019 and IFRS 7 \u2018Financial Instruments: Disclosures\u2019: Supplier Finance Arrangements.
The amendment describes the characteristics for which reporters will have to provide additional disclosures regarding the impact of supplier finance arrangements on liabilities, cash flows and exposure to liquidity risk.
As a result of the adoption of the amendments to IAS 7 and IFRS 7, the Group provided new disclosures for liabilities under supplier finance arrangements in note 27.
Amendments to IFRS 16 \u2018Leases\u2019: Lease Liability in a Sale and Leaseback.The amendments explain how an entity accounts for a sale and leaseback after the date of the transaction, specifically where some or all the lease payments are variable lease payments that do not depend on an index or rate. They state that, in subsequently measuring the lease liability, the seller-lessee determines \u2018lease payments\u2019 and \u2018revised lease payments\u2019 in a way that does not result in the seller-lessee recognising any amount of the gain or loss that relates to the right of use it retains. Any gains and losses relating to the full or partial termination of a lease continue to be recognised when they occur as these relate to the right of use terminated and not the right of use retained.
Standards and Interpretations effective for subsequent periods
Certain new accounting standards and amendments to accounting standards have been published that are not mandatory for 31 December 2024 reporting periods and have not been early adopted by the Group. The effect of the following amendments is currently assessed by management and they are not expected to have a material impact on Viohalco Consolidated Financial Statements in the current or future reporting periods.
Amendments to IAS 21 \u2018The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability\u2019 (effective 1 January 2025). IAS 21 previously did not cover how to determine exchange rates in case there is long-term lack of exchangeability and the spot rate to be applied by the company is not observable. The narrow scope amendments add specific requirements on:
\u2022\tDetermining when a currency is exchangeable into another and when it is not;
\u2022\tDetermining the exchange rate to apply in case a currency is not exchangeable;
\u2022\tAdditional disclosures to provide when a currency is not exchangeable.
The amendments have been endorsed by the EU.
Amendments to IFRS 9 and to IFRS 7: the Classification and Measurement of Financial Instruments (effective on 1 January 2026).On 30 May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to:
\u2022\tClarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
\u2022\tClarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
\u2022\tAdd new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement environment, social and governance (ESG) targets); and
\u2022\tUpdate the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).
The amendments have not yet been endorsed by the EU.
Amendments to IFRS 9 and to IFRS 7: Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7 (effective on 1 January 2026).On 18 December 2024, the IASB issued amendments to IFRS 9 and IFRS 7:
\u2022\tclarify the application of the \u2018own-use\u2019 requirements;
\u2022\tpermit hedge accounting if these contracts are used as hedging instruments; and
\u2022\tnew disclosure requirements to enable investors to understand the effect of these contracts on a company\u2019s financial performance and cash flows.
The amendments have not yet been endorsed by the EU.
IFRS 18 Presentation and Disclosure in Financial Statements (effective on 1 January 2027).The IASB has issued IFRS 18, the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:
\u2022\tthe structure of the statement of profit or loss;
\u2022\trequired disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity\u2019s financial statements (that is, management-defined performance measures); and
\u2022\tenhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its \u2018operating profit or loss\u2019.
IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information. The changes in presentation and disclosure required by IFRS 18 might require system and process changes.
The new standard has not yet been endorsed by the EU.
IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective on 1 January 2027). The International Accounting Standard Board (IASB) has issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 \u2018Subsidiaries without Public Accountability: Disclosures\u2019 permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries\u2019 financial statements while maintaining the usefulness of the information for users of their financial statements.
The new standard has not yet been endorsed by the EU.
Annual improvements Volume 11 (effective 1 January 2026).
Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:
IFRS 1 First-time Adoption of International Financial Reporting Standards;
IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
IFRS 9 Financial Instruments;
IFRS 10 Consolidated Financial Statements; and
IAS 7 Statement of Cash Flows.
The amendments have not yet been endorsed by the EU.
6. Operating segments
A. Basis for the division into segments
For management purposes, Viohalco is split into seven major strategic reportable segments devided in two divisions, which operate in different industries:
Industrial Division
Aluminium segment;
Copper segment;
Cables segment;
Steel pipes segment;
Steel segment;
Other activities segment.
Real Estate Division
Real estate segment.
These segments offer different products and services, and are managed separately because they require different technology and marketing strategies.
Such structural organization is determined by the nature of risks and returns associated with each business segment. It is based on the management structure, as well as the internal reporting system. It represents the basis on which Viohalco reports its segmental information.
The segment analysis presented in these consolidated financial statements reflects operations analysed by the business. This is the way the chief operating decision maker of Viohalco regularly reviews its\u2019 operating results in order to allocate resources to segments and in assessing their performance.
For the purposes of segmental reporting, all Viohalco companies, except those operating as trading companies, have been assigned to a specific reportable segment.
Regarding the trading companies of Viohalco, their profit or loss and balance sheet figures have been allocated to the reportable segments, according to the nature of their transactions.
A brief description of the segments is as follows:
Aluminium:ElvalHalcor through its aluminium rolling division (Elval), its subsidiaries Symetal S.A., Elval Colour S.A. and Vepal S.A. along with Bridgnorth Aluminium and Etem Extrusions deliver a wide variety of products from aluminium coils and sheets for general applications and aluminium foil for household use, to special products, such as, rolled and extruded aluminium products for shipbuilding, automotive and construction industries, and lithographic coils.
Copper: ElvalHalcor through its copper tubes division (Halcor) and its subsidiary Sofia Med S.A. produce a wide range of copper and copper alloy products that span from copper and brass tubes, copper strips, sheets and plates, to copper bus bars and rods.
Cables:Hellenic Cables companies consist one of the largest cable producers in Europe, manufacturing power,
telecommunication and submarine cables, as well as enamelled wires and compounds.
Steel Pipes:Corinth Pipeworks engages in the production of steel pipes for the transportation of natural gas, oil and water networks, as well as steel hollow sections which are used in construction projects.
Steel: Sidenor Steel Industry, Stomana Industry and their subsidiaries manufacture long, flat and downstream steel products.
Real estate: Viohalco derives value from the real estate assets of its subsidiaries by developing and managing large-scale commercial and industrial properties.
Other:Other activities mainly encompass expenses incurred by the parent (holding) company, along with the results of companies which operate in the Technology, R&D and resource recovery segments. None of these activities met the quantitative thresholds for reportable segments in 2024 or 2023.
B. Information about reportable segments
The information disclosed in the tables below is derived directly from the internal financial reporting system used by the executive management (i.e.chief operating decision maker) to monitor and evaluate the performance of the operating segments separately.
The following tables illustrate the information about the reportable segments profit or loss, assets and liabilities as at 31 December 2024 and 2023.
Revenue and operating profit per segment for 2024 were as follows: | |||||||||
Industrial Division | |||||||||
Amounts in EUR thousands | Aluminium | Copper | Cables | Steel Pipes | Steel | Other activities | Total Industrial | Real Estate | Total Consolidated |
Total revenue per segment | 2,988,438 | 2,171,598 | 2,139,073 | 789,578 | 1,697,874 | 188,648 | 9,975,210 | 68,795 | 10,043,777 |
Inter-company revenue | -968,380 | -422,949 | -976,128 | -222,066 | -689,487 | -111,596 | -3,390,606 | -26,092 | -3,416,471 |
Revenue from external customers | 2,020,058 | 1,748,649 | 1,162,945 | 567,512 | 1,008,387 | 77,053 | 6,584,603 | 42,702 | 6,627,306 |
Gross profit | 178,646 | 156,870 | 198,150 | 100,614 | 54,092 | 18,341 | 706,713 | 25,432 | 732,145 |
Operating result (EBIT) | 102,248 | 94,406 | 165,171 | 81,234 | -8,271 | -5,595 | 429,193 | 16,645 | 445,839 |
Finance income | 2,735 | 1,586 | 807 | 434 | 2,233 | 4,348 | 12,143 | 5,914 | 18,057 |
Finance cost | -42,719 | -23,408 | -48,251 | -18,487 | -40,605 | -3,376 | -176,847 | -8,388 | -185,235 |
Share of profit/ loss (-) of equity-accounted investees, net of tax | 384 | -5,633 | - | 145 | 227 | - | -4,877 | -135 | -5,012 |
Profit/Loss (-) before income tax expense | 62,647 | 66,950 | 117,728 | 63,326 | -46,416 | -4,623 | 259,613 | 14,036 | 273,649 |
Income tax expense (-) | -8,828 | -7,844 | -24,997 | -15,116 | -883 | -1,489 | -59,156 | -3,675 | -62,832 |
Net Profit/Loss (-) | 53,820 | 59,107 | 92,730 | 48,210 | -47,299 | -6,112 | 200,456 | 10,361 | 210,817 |
Other information per segment for 2024 is as follows:\u00a0 | |||||||||
Industrial Division | |||||||||
Amounts in EUR thousand | Aluminium | Copper | Cables | Steel Pipes | Steel | Other activities | Total Industrial | Real Estate | Total Consolidated |
Equity accounted investees | 10,410 | 949 | - | 7,859 | 1,058 | 809 | 21,085 | 10,330 | 31,416 |
Other assets | 1,821,290 | 786,738 | 1,491,527 | 577,396 | 944,656 | 327,888 | 5,949,495 | 589,987 | 6,539,482 |
Segment assets | 1,831,700 | 787,687 | 1,491,527 | 585,255 | 945,714 | 328,697 | 5,970,580 | 600,317 | 6,570,897 |
Segment liabilities | 1,038,275 | 492,438 | 1,184,654 | 400,601 | 774,021 | 81,342 | 3,971,332 | 235,427 | 4,206,759 |
Capital expenditure* | 73,999 | 24,467 | 216,756 | 41,295 | 34,037 | 7,924 | 398,478 | 35,058 | 433,536 |
Depreciation and amortization | -59,279 | -17,355 | -24,733 | -10,434 | -26,930 | -4,621 | -143,352 | -6,622 | -149,973 |
Revenue and operating profit per segment for 2023 were as follows: | |||||||||
Industrial Division | |||||||||
Amounts in EUR thousands | Aluminium | Copper | Cables | Steel Pipes | Steel | Other activities | Total Industrial | Real Estate | Total Consolidated |
Total revenue per segment | 2,774,541 | 2,258,991 | 1,799,128 | 728,912 | 1,714,820 | 173,978 | 9,450,371 | 52,835 | 9,503,205 |
Inter-company revenue | -887,075 | -537,776 | -807,945 | -148,730 | -700,505 | -104,567 | -3,186,599 | -14,649 | -3,201,248 |
Revenue from external customers | 1,887,467 | 1,721,214 | 991,183 | 580,181 | 1,014,316 | 69,411 | 6,263,772 | 38,186 | 6,301,957 |
Gross profit | 124,747 | 128,841 | 159,034 | 72,762 | 56,601 | 17,514 | 559,499 | 19,368 | 578,867 |
Operating result (EBIT) | 35,358 | 71,947 | 120,062 | 53,781 | -4,797 | -4,224 | 272,127 | 18,277 | 290,404 |
Finance income | 2,107 | 1,909 | 663 | 336 | 436 | 1,600 | 7,050 | 2,048 | 9,098 |
Finance cost | -45,585 | -26,533 | -47,467 | -28,412 | -37,222 | -3,097 | -188,317 | -8,577 | -196,894 |
Share of profit/ loss (-) of equity-accounted investees, net of tax | 1,229 | -11,071 | - | -1,094 | 238 | - | -10,698 | -586 | -11,284 |
Profit/Loss (-) before income tax expense | -6,891 | 36,251 | 73,258 | 24,610 | -41,345 | -5,721 | 80,163 | 11,162 | 91,324 |
Income tax expense (-) | 3,133 | -3,005 | -16,934 | -5,932 | 2,375 | -1,385 | -21,748 | -3,061 | -24,809 |
Net Profit/Loss (-) | -3,758 | 33,246 | 56,324 | 18,679 | -38,969 | -7,106 | 58,415 | 8,101 | 66,516 |
Other information per segment for 2023 is as follows:\u00a0 | |||||||||
Industrial Division | |||||||||
Amounts in EUR thousands | Aluminium | Copper | Cables | Steel Pipes | Steel | Other activities | Total Industrial | Real Estate | Total Consolidated |
Equity accounted investees | 10,365 | 38 | - | 8,307 | 1,364 | 791 | 20,864 | 10,465 | 31,329 |
Other assets | 1,720,647 | 727,374 | 1,162,739 | 613,180 | 972,550 | 142,713 | 5,339,202 | 549,178 | 5,888,381 |
Segment assets | 1,731,011 | 727,412 | 1,162,739 | 621,486 | 973,914 | 143,504 | 5,360,067 | 559,643 | 5,919,710 |
Segment liabilities | 985,802 | 481,495 | 954,741 | 475,970 | 747,510 | 66,389 | 3,711,907 | 248,432 | 3,960,339 |
Capital expenditure* | 69,497 | 26,513 | 120,717 | 17,364 | 41,492 | 5,001 | 280,583 | 26,919 | 307,502 |
Depreciation and amortization | -60,691 | -19,623 | -20,493 | -9,835 | -27,339 | -3,873 | -141,852 | -6,375 | -148,227 |
C.\tGeographic information
Viohalco\u2019s segments are managed on a worldwide basis, but operate manufacturing facilities and sales offices are located primarily in Greece, Germany, United Kingdom, France, Bulgaria, Romania, Serbia, North Macedonia and U.S.A.
The geographic information below analyses the consolidated non-current assets by the Company\u2019s country of domicile and other countries. In presenting the geographic information, segment assets were based on the geographic location of the assets. In Europe, assets\u2019 information for Greece and Belgium is reported separately.
Property, plant and equipment | Balance at 31 December | |
Amounts in EUR thousands | 2024 | 2023 |
Belgium | 1,599 | 1,233 |
Greece | 2,090,876 | 1,862,677 |
Other | 564,080 | 512,087 |
Total | 2,656,555 | 2,375,998 |
\u00a0Intangible assets and goodwill | ||
Balance at 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 51,300 | 41,680 |
Other | 5,987 | 8,849 |
Total | 57,287 | 50,529 |
\u00a0Investment property | ||
Balance at 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 337,126 | 332,602 |
Other | 15,253 | 5,677 |
Total | 352,379 | 338,279 |
Right of use assets | ||
Balance at 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Belgium | 96 | 89 |
Greece | 35,825 | 31,353 |
Other | 7,981 | 9,180 |
Total | 43,901 | 40,623 |
7. Revenue
Revenue is derived from contracts with customers and investment property rental income.
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Rental income from investment property | 29,702 | 25,558 |
Revenue from contracts with customers | 6,597,603 | 6,276,399 |
Total | 6,627,306 | 6,301,957 |
A. Disaggregation of revenue from contracts with customers
In the following table, revenue from contracts with customers is disaggregated by primary geographical market and timing of revenue recognition. The table includes a reconciliation with the Viohalco\u2019s reportable segments (see Note 6).
for the year ended 31 December 2024 | |||||||||
Amounts in EUR thousand | Aluminium | Copper | Cables | Steel Pipes | Steel | Other Activities | Total Industrial | Real Estate | Total Consolidated |
Primary geographical markets\u00a0\u00a0 | |||||||||
Greece | 100,486 | 89,197 | 310,521 | 36,330 | 363,361 | 26,089 | 925,985 | 13,016 | 939,001 |
European Union | 1,261,048 | 1,203,553 | 581,092 | 118,936 | 484,915 | 23,335 | 3,672,879 | - | 3,672,879 |
Other European countries | 337,431 | 257,555 | 111,425 | 50,926 | 118,853 | 2,360 | 878,549 | - | 878,549 |
Asia | 49,686 | 39,570 | 116,464 | 272,810 | 41,258 | 23,974 | 543,761 | - | 543,761 |
America | 253,915 | 119,229 | 39,225 | 42,316 | - | 406 | 455,091 | - | 455,091 |
Africa | 16,890 | 35,080 | 4,218 | 13,747 | - | 125 | 70,059 | - | 70,059 |
Oceania | 586 | 4,465 | - | 32,447 | - | 764 | 38,263 | - | 38,263 |
Total | 2,020,042 | 1,748,649 | 1,162,945 | 567,512 | 1,008,387 | 77,053 | 6,584,587 | 13,016 | 6,597,603 |
Timing of revenue recognition | |||||||||
Revenue recognised at a point in time | 2,019,377 | 1,744,472 | 591,165 | 34,637 | 992,378 | 50,455 | 5,432,483 | 3,769 | 5,436,251 |
Products transferred over time | - | - | 571,767 | 532,867 | - | - | 1,104,635 | - | 1,104,635 |
Services transferred over time | 665 | 4,177 | 13 | 8 | 16,009 | 26,598 | 47,470 | 9,248 | 56,717 |
Total | 2,020,042 | 1,748,649 | 1,162,945 | 567,512 | 1,008,387 | 77,053 | 6,584,587 | 13,016 | 6,597,603 |
for the year ended 31 December 2023 | |||||||||
Amounts in EUR thousand | Aluminium | Copper | Cables | Steel Pipes | Steel | Other Activities | Total Industrial | Real Estate | Total Consolidated |
Primary geographical markets | |||||||||
Greece | 112,720 | 83,250 | 369,410 | 83,650 | 329,017 | 23,259 | 1,001,306 | 12,643 | 1,013,950 |
European Union | 1,180,680 | 1,194,730 | 333,193 | 129,153 | 541,269 | 17,098 | 3,396,123 | - | 3,396,123 |
Other European countries | 304,717 | 250,506 | 120,457 | 101,253 | 141,495 | 2,005 | 920,433 | - | 920,433 |
Asia | 54,511 | 76,383 | 117,054 | 33,151 | 500 | 26,974 | 308,571 | - | 308,571 |
America | 216,363 | 69,553 | 44,218 | 152,644 | 180 | 65 | 483,023 | - | 483,023 |
Africa | 17,727 | 41,968 | 6,852 | 1,656 | 1,856 | 9 | 70,068 | - | 70,068 |
Oceania | 732 | 4,826 | - | 78,675 | - | - | 84,233 | - | 84,233 |
Total | 1,887,450 | 1,721,214 | 991,183 | 580,181 | 1,014,316 | 69,411 | 6,263,755 | 12,643 | 6,276,399 |
Timing of revenue recognition | |||||||||
Revenue recognised at a point in time | 1,668,745 | 1,717,333 | 626,460 | 47,967 | 999,927 | 47,389 | 5,107,822 | 4,199 | 5,112,021 |
Products transferred over time | 217,298 | - | 364,673 | 532,214 | - | - | 1,114,185 | - | 1,114,185 |
Services transferred over time | 1,407 | 3,881 | 50 | - | 14,389 | 22,022 | 41,748 | 8,444 | 50,193 |
Total | 1,887,450 | 1,721,214 | 991,183 | 580,181 | 1,014,316 | 69,411 | 6,263,755 | 12,643 | 6,276,399 |
Viohalco\u2019s consolidated revenue for 2024 amounted to EUR 6,627 million, increased by 5% compared to previous year (2023: 6,302 million).
Revenue expected to be recognised in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the reporting date amounts to EUR 1,661 million. An amount of EUR 899 million is expected to be recognised during 2025, EUR 601 million is expected to be recognised during 2026 and the remaing EUR 161 million is expected to be recognised during the periods from 2027 and onwards based on the time schedules included in the open contracts on 31 December 2024, which have original expected durations of more than one year and revenue recognition started during 2024 or prior periods.
B. Contract balances
Contract assets primarily relate to the rights to consideration for work completed but not billed at the reporting date on customized products or energy projects. Contract assets are transferred to receivables when the rights become unconditional. This usually occurs when Viohalco companies issue an invoice to the customer (unless the invoice is issued in advance).
Contract liabilities primarily relate to the advance consideration received from customers for construction of customized products or energy projects for which revenue is recognized over time.
Contract assets mainly relate to cables and steel pipes segments, where amounts are billed as work progresses in accordance with agreed-upon contractual terms, either upon achievement of contractual milestones, or at the final delivery and acceptance of the products.
The following table provides information about contract assets and contract liabilities.
As at | ||
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Contract assets | 256,322 | 236,552 |
Contract liabilities | -226,488 | -281,387 |
Total | 29,834 | -44,835 |
The movement in the contract assets and the contract liabilities balances during the period is described in the following table:
Amounts in EUR thousands | Contract assets | Contract liabilities |
Balance at 1 January 2024 | 236,552 | 281,387 |
Increases as a result of changes in measure of progress | 241,950 | - |
Revenue recognised relating to downpayments and deferred income balances as at the beginning of the period | - | -249,948 |
Transfers from contract assets recognised at the beginning of the period to receivables | -219,239 | - |
New downpayments and deferred income outstanding at year end | - | 200,850 |
Reversal of impairment allowance | 38 | - |
Write-offs | -3,962 | - |
Reclassifications | - | 32 |
Other movements | - | -350 |
Cash returned to customer | - | -3,367 |
Amount recognized in Other income | - | -4,295 |
Foreign exchange differences | 983 | 2,180 |
Balance as at 31 December 2024 | 256,322 | 226,488 |
Amounts in EUR thousands | Contract assets | Contract liabilities |
Balance at 1 January 2023 | 199,839 | 133,837 |
Increases due to unbilled receivables and changes in measure of progress | 230,987 | - |
Revenue recognised relating to downpayments and deferred income balances as at the beginning of the period | - | -152,523 |
Transfers from contract assets recognised at the beginning of the period to receivables | -193,160 | - |
New downpayments and deferred income outstanding at year end | - | 302,364 |
Impairment allowance | -68 | - |
Reversal of impairment allowance | 23 | - |
Write-offs | -250 | - |
Reclassifications | 579 | - |
Foreign exchange differences | -1,398 | -2,290 |
Balance as at 31 December 2023 | 236,552 | 281,387 |
Contract assets increased by EUR 20 million compared previous year. Such increase is attributed mainly to cables segment (EUR 14.9 million increase) due to the growth in project-related activities and the timing of invoicing of specific ongoing projects.
Contract liabilities, primarily, relate to the advance consideration received from customers. Contract liabilities, which are expected to be settled within more than one year are classified as non-current liabilities (EUR 5 million as of 31 December 2024). Contract liabilities decreased by EUR 55 million compared to 31 December 2023, mainly due to the execution of certain projects in steel pipes segment for which downpayments were received by customers close to prior year\u2019s end (EUR 81.3 million
decrease). On the other hand, the increasing backlog of cables segment led to an increase in segment\u2019s contract liabilities by EUR 21.9 million.
C. Contract costs
Viohalco companies\u2019 recognized contracts costs, expect that fees, commissions and other costs associated with obtaining contracts for energy projects are recoverable.
Therefore, as at 31 December 2024, Viohalco has recorded as contract costs an amount of EUR 510 thousand, out of which an amount of EUR 222 thousand is classified as non-current assets. During the year, amortization of contract costs amounted EUR 157 thousand.
D. Significant judgements in revenue recognition
In recognizing revenue, Viohalco companies make judgements regarding the timing of satisfaction of performance obligations, the identification of distinct performance obligations, as well as the transaction price and the amounts allocated to performance obligations.
The most significant of these estimates are described below:
- Contracts including multiple performance obligations are mainly identified in cables segment for turnkey projects and for customized products in cables, steel pipes and aluminium segments, as described in Note 5.3. In such cases, the total transaction price is allocated to these performance obligations on the basis of the relative standalone selling prices of the promised goods and services. If these goods and services are not sold separately, a cost plus margin approach is used to estimate the standalone selling price.
- Some contracts with customers involve a variable transaction cost as they include a volume or trade discount based on the total sales to the customer within a time period. In such case revenue is recognized based on the anticipated sales to the customer throughout the year, as these sales are realized and new orders are received and up to an extent it is highly probable that a significant reversal of cumulative revenue recognized will not be needed.
- A significant portion of contracts with customers, include transportation service. Transportation is considered as a separate performance obligation, if the customer can benefit from the offered transportation service and the promise to transport the goods to the customer is separately identifiable from the production of these customized products. Revenue for orders of standardized products is recognized at a specific point in time and transportation is not considered a separate performance obligation.
8. Other income and expenses
A. Other Income | |||
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Government grants/subsidies | 2,661 | 2,632 | |
Amortization of grants received | 28 | 2,681 | 2,598 |
Rental income | 1,397 | 1,179 | |
Income from fees, commissions and costs recharged | 3,360 | 1,293 | |
Damage Compensation | 5,312 | 4,190 | |
Gain on sale of PP&E and intangible assets | 370 | 1,707 | |
Gain on sale of investment property | 27 | 624 | |
Gain from valuation of financial instruments | 7,462 | 322 | |
Reversal of provisions | - | 25 | |
Reversal of impairment loss of PP&E and investment property | 12,289 | 20,289 | |
Gain from disposal of subsidiaries | 230 | 4,490 | |
Gains from business combinations | 168 | - | |
Other | 6,730 | 3,800 | |
Total other income | 42,686 | 43,149 |
B. Other Expenses | |||
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Impairment loss of PP&E and investment property | 10,628 | 16,444 | |
Write-off of PP&E and intangible assets | 2,030 | 4,506 | |
Impairment loss of associates/ Joint Ventures | 3,144 | 2,820 | |
Loss on sale of PP&E | 2 | 321 | |
Loss on sale of investment property | - | 26 | |
Loss from valuation of financial instruments | - | 3,588 | |
Damages incurred | 4,232 | 3,012 | |
Employee benefits | 12 | - | 3 |
Penalties | 637 | 2,561 | |
Depreciation and amortisation | - | 2,104 | |
Other | 4,097 | 2,400 | |
Total other expense | 24,769 | 37,786 | |
Net other income/ expense (-) | 17,917 | 5,364 |
Net Other income/expenses for the year ended 31 December 2024 amounted to a gain of EUR 17.9 million compared to a gain of EUR 5.4 million during 2023, mainly due to the following factors:
-\tDuring 2024, the challenging global economic conditions, dampened demand for NedZink B.V.\u2019s products, resulting in a downturn in its 2024 financial performance. As a consequence, an impairment loss of EUR 3.1 million was recognised in the participation to the company (Note 20).
-\tPursuant to a contract entered with a customer, an advance payment of EUR 4,295 thousand was received during 2023 and 2024. Such contract was terminated due to project not being implemented and as per the relevant contract provisions Viohalco\u2019s subsidiary was entitled to retain the said advance payment. Therefore, the relevant amount was recorded in the Consolidated Statement of Profit or Loss as \u2018Other income\u2019.
-\tDuring 2024, a reversal of impairment loss of EUR 1.7 million was recognized (2023: impairment loss of EUR 3.8 million) - on net basis - for own used property and investment property , due to changes in the fair value of real estate portfolio. Impairment loss and reversal of impairment loss are described in notes 17 and 19.
-\tDuring first half of 2023, the merger by absorption of the subsidiary of ElvalHalcor, Etem Commercial, from the joint-stock company Cosmos Aluminium SA was completed. As a result of this transaction, Viohalco recorded a gain of EUR 4.5 million at consolidated level. Based on the purchase agreement, the shareholders of ElvalHalcor granted Cosmos Aluminium with a put option to purchase the remaining outstanding capital stock of Cosmos Aluminium. In addition, Cosmos Aluminium granted ElvalHalcor with a put option to sale the remaining outstanding capital stock of Cosmos Aluminium. The exercise period for both options commenced in 2028 and their term is for six months. Upon the exercise of the aforementioned options, the shareholders of Cosmos Aluminium will own 100% of outstanding capital stock of Cosmos Aluminium. These expire in case that the shareholders do not exercise them during the exercise period. These options are recognized in the consolidated statement of financial position in their fair value and were included in the carrying amount of the investment in Cosmos Aluminium. The recognized gain for 2024 from their measurement in the fair value, amounted EUR 7.5 million, recorded into \u201cOther income\u201d.
C. Expenses by nature
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Cost of inventories recognized as an expense | 4,547,842 | 4,428,065 | |
Employee benefits | 12 | 517,112 | 473,925 |
Energy | 207,033 | 253,248 | |
Depreciation and amortisation | 149,973 | 146,123 | |
Amortization of contract costs | 157 | 74 | |
Taxes and duties | 20,465 | 13,813 | |
Insurance expenses | 39,441 | 44,065 | |
Rental fees | 8,226 | 8,731 | |
Transportation costs (goods and materials) | 167,220 | 196,682 | |
Promotion and advertising | 8,031 | 8,038 | |
Third party fees and benefits | 382,309 | 312,190 | |
Other provisions | - | 125 | |
Gains (-)/losses from derivatives | -6,699 | 793 | |
Storage and packing | 12,985 | 15,601 | |
Commissions | 14,715 | 13,750 | |
Foreign exchange gains(-)/losses | 5,237 | -3,820 | |
Maintenance expenses | 69,284 | 55,860 | |
Royalties | 4,873 | 2,655 | |
Consumption of production tools | 27,842 | 21,010 | |
Other expenses | 15,684 | 16,991 | |
Total | 6,191,730 | 6,007,920 |
The key drivers of variation of operating expenses during 2024 are the following:
-\tThe increase in sales volumes, affected cost of sales and related operating expenses (Cost of inventories recognized as an expense and materials and maintenance expenses) which have increased as well.\u00a0
-\tThe increase in \u201c\u03a4hird party fees and benefits\u201d is attributed mainly to project-specific services from subcontractors, particularly in the cables segment. Cables segment experienced a rise in installation services related to turnkey contracts executed by subsidiaries, leading to higher costs compared to 2023.
The aggregate amount of research and development expenditure recognized as an expense during 2024 amounts to EUR 23.2 million (2023: EUR 18.2 million).
9. Net finance cost
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Income | ||
Interest income | 14,804 | 7,089 |
Foreign exchange gains | 2,710 | 1,449 |
Dividend income | 543 | 560 |
Finance income | 18,057 | 9,098 |
Expense | ||
Interest expense and related costs | 187,321 | 194,620 |
Gains(-)/Loss from derivatives | -5,559 | -1,516 |
Interest on leases | 2,449 | 2,095 |
Foreign exchange losses | 1,023 | 1,695 |
Finance cost | 185,235 | 196,894 |
Net finance income/cost (-) | -167,178 | -187,796 |
Interest expenses and related costs decreased by 4% compared to 2023 as as a consequence of the average debt reduction.
In order to be secured from interest rates volatility, Viohalco subsidiaries entered into interest rates swaps contracts to hedge part of their finance costs. The results and the valuation of these interest rate swaps are recorded within the \u2018Finance costs\u2019.
10. Earnings per share
Considering that there are neither share options, nor convertible bonds, basic and diluted earnings per share are identical and have been based on the following profit attributable to the ordinary shareholders and weighted-average numbers of ordinary shares outstanding.
A. Profit/loss (-) attributable to the owners of the company
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Profit/loss (-) attributable to the owners of the Company | 161,092 | 48,233 |
B. Weighted-average number of ordinary shares outstanding
In thousands of shares | 2024 | 2023 |
Issued ordinary shares at 1 January | 259,190 | 259,190 |
Effect of shares issued related to the mergers | - | - |
Weighted average number of ordinary shares at 31 December | 259,190 | 259,190 |
The number of equity shares in 2024 remains equal to 2023, as no shares were issued during the year.
C. Earnings per share
The basic and diluted earnings per share are as follows:
Earnings per share (in EUR per share) | 2024 | 2023 |
Basic and diluted | 0.622 | 0.186 |
11. Employee benefits
Amounts in EUR thousands | Note | 2024 | 2023 |
Net defined benefit liability | 30,040 | 27,754 | |
Liability for social security contributions | 27 | 16,243 | 15,774 |
Total employee benefit liabilities | 46,284 | 43,528 | |
Non-current | 30,040 | 27,754 | |
Current | 16,243 | 15,774 |
For details on the related employee benefit expenses, see Note 12.
A. Post-employment plans
The following post-employment plans exist:
Defined contribution plans
All employees of Viohalco companies are insured for their main pension by the respective social insurance organizations as required by the local legislation. Once the contributions have been paid, Viohalco companies have no further payment obligations. The regular contributions constitute net periodic costs for the year in which they are due, and as such are included in employee benefit expenses.
Defined benefit plans
The employees of Viohalco\u2019s companies in some countries, mainly in Greece and Bulgaria, are entitled to receive a lump sum when they retire. This lump sum is determined in accordance with the years of service and the salary at the retirement date. This obligation meets the definition of defined benefit plans and charges the accumulated benefits through profit or loss in each period with a corresponding increase of the retirement liability. Benefits paid to pensioners during each period are charged against this liability. Viohalco\u2019s companies\u2019 liability for personnel benefits as of 31 December 2024 and 2023 is EUR 30,040 thousand and EUR 27,754 thousand respectively. These plans are unfunded.
B. Movement in net defined benefit liability
The following table shows the reconciliation from the opening balance to the closing balances for net defined benefit liability and its components.
Amounts in EUR thousands | 2024 | 2023 |
Balance at 1 January | 27,754 | 24,357 |
Included in profit or loss | ||
Current service cost | 2,749 | 2,280 |
Past service cost | 85 | 624 |
Termination loss | 2,981 | 4,009 |
Interest cost / income (-) | 719 | 726 |
6,534 | 7,639 | |
Included in OCI | ||
Remeasurement loss / gain (-) | ||
Actuarial loss / gain (-) arising from: | ||
-Demographic assumptions | -17 | -54 |
-Financial assumptions | 749 | 563 |
-Experience adjustments | 653 | 1,535 |
1,385 | 2,044 | |
Other | ||
Benefits paid | -5,628 | -6,273 |
Foreign exchange differences | -4 | -13 |
-5,633 | -6,286 | |
Balance at 31 December | 30,040 | 27,754 |
During the financial year 2024, Viohalco and its companies paid EUR 5.6 million (2023: EUR 6.3 million) in benefits in respect of employees who left during the year. An additional cost that arose due to these payments was recognized (termination loss of EUR 3.0 million \u2013 2023: EUR 4.0 million). More specifically, in the cases of dismissal, voluntary withdrawals with benefit payment and retirement, the additional cost is the difference between the benefit paid and the amount recorded in the defined benefit liability for the respective employees.
C. Defined benefit obligation
(a) Actuarial assumptions
The following were the weighted average principal actuarial assumptions at the reporting date:
2024 | 2023 | |
Discount rate | 2.82% | 3.03% |
Price inflation | 1.96% | 1.96% |
Future salary growth | 3.29% | 2.94% |
Plan duration (in years) | 5 | 5 |
Assumptions regarding future mortality have been based on Swiss mortality table EVK2000.
(b) Sensitivity analysis
The sensitivity analysis for each significant actuarial assumption which was reasonably possible, at the end of the reporting period, shows how the defined benefit obligation (DBO) would have been affected by those changes as follows:
2024 | 2023 | |
Sensitivity 1(discount rate plus 0.5%) - % Difference in DBO | -2.46% | -2.12% |
Sensitivity 2(discount rate minus 0.5%) - % Difference in DBO | 2.56% | 2.50% |
Sensitivity 3 (salary growth rate plus 0.5%) - % Difference in DBO | 2.36% | 2.36% |
Sensitivity 4 (salary growth rate minus 0.5%) - % Difference in DBO | -2.32% | -2.25% |
The above sensitivity analysis is based on a change in one assumption while all other assumptions remain constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognized on the statement of financial position. The methods and the formula of the assumptions used for the defined analysis have not changed compared to the previous year.
The expected maturity analysis of undiscounted pension benefits is as follows:
Amounts in EUR thousands | 2024 | 2023 |
Less than a year | 7,752 | 7,138 |
Between 1 and 2 years | 2,416 | 2,332 |
Between 2 and 5 years | 6,394 | 7,651 |
Over 5 years | 18,349 | 18,251 |
Total | 34,912 | 35,371 |
12. Employee benefit expenses
Amounts in EUR thousands | Note | 2024 | 2023 |
Wages and salaries | 406,160 | 368,009 | |
Social security contributions | 74,343 | 67,416 | |
Defined contribution plans | 5,053 | 1,165 | |
Defined benefit plans | 11 | 6,534 | 7,639 |
Other employee benefits | 32,752 | 33,727 | |
Total | 524,842 | 477,956 |
Employee benefits have been allocated as follows: | |||
Cost of goods sold | 8 | 351,633 | 316,474 |
Selling and distribution expenses | 8 | 50,744 | 53,073 |
Administrative expenses | 8 | 114,735 | 104,378 |
Other expenses | 8 | - | 3 |
Capitalised employee benefits in projects under construction | 7,730 | 4,028 | |
Total | 524,842 | 477,956 |
The number of employees, as well as their profile and gender, employed by Viohalco companies is presented in the following tables:
2024 | ||||
\u00a0 | 18 - 30 | 30-50 | 51+ | Total |
Male | 1,076 | 5,369 | 3,119 | 9,564 |
Female | 274 | 1,118 | 498 | 1,890 |
Total | 1,350 | 6,487 | 3,617 | 11,454 |
Office employees & professionals | Workers | Management | Total | |
Number of Employees | 3,206 | 7,234 | 1,014 | 11,454 |
2023 | ||||
\u00a0 | 18 - 30 | 30-50 | 51+ | Total |
Male | 1,072 | 5,262 | 2,820 | 9,154 |
Female | 251 | 1,105 | 445 | 1,801 |
Total | 1,323 | 6,367 | 3,265 | 10,955 |
Office employees & professionals | Workers | Management | Total | |
Number of Employees | 2,902 | 7,045 | 1,008 | 10,955 |
13. Income tax expense
A. Amounts recognised in profit or loss
Amounts in EUR thousands | 2024 | 2023 |
Current tax | -50,672 | -36,213 |
Deferred tax | -12,160 | 11,404 |
Income tax expense (-) | -62,832 | -24,809 |
B. Amounts recognised in OCI
2024 | |||
Amounts in EUR thousands | Before tax | Related tax | Net of tax |
Amounts recognized in the OCI | |||
Remeasurements of defined benefit liability | -1,385 | 294 | -1,091 |
Remeasurement of redemption liability | -286 | - | -286 |
Equity investments in FVOCI - net change in fair value | -233 | - | -233 |
Foreign currency translation differences | 6,129 | - | 6,129 |
Gain / Loss (-) of changes in fair value of cash flow hedging - effective portion | 664 | -377 | 287 |
Gain / Loss (-) of changes in fair value of cash flow hedging - reclassified to profit or loss | -6,012 | 1,388 | -4,625 |
Total | -1,124 | 1,305 | 182 |
2023 | |||
Amounts in EUR thousands | Before tax | Related tax | Net of tax |
Amounts recognized in the OCI | |||
Remeasurements of defined benefit liability | -2,044 | 394 | -1,650 |
Equity investments in FVOCI - net change in fair value | -151 | - | -151 |
Foreign currency translation differences | -2,067 | - | -2,067 |
Gain / Loss (-) of changes in fair value of cash flow hedging - effective portion | -16,673 | 3,709 | -12,964 |
Gain / Loss (-) of changes in fair value of cash flow hedging - reclassified to profit or loss | -9,493 | 1,868 | -7,625 |
Total | -30,429 | 5,972 | -24,457 |
C. Reconciliation of effective tax rate
Amounts in EUR thousands | 2024 | 2023 | |
Profit/loss (-) before income tax expense | 273,649 | 91,324 | |
Tax calculated at parent company\u2019s statutory income tax rate (2024 & 2023: 25.0%) | -68,412 | -22,831 | |
Effect of different tax rates in jurisdictions that Viohalco companies operate | 13,076 | -147 | |
Tax calculated at weighted average income tax rate (2024: 20.2% & 2023: 25.2%) | -55,336 | -22,978 | |
Adjustments for: | |||
Non-deductible expenses for tax purposes | -11,506 | -4,989 | |
Tax-exempt income | 688 | 6,700 | |
Tax incentives | 7,643 | 1,472 | |
Recognition of previously unrecognised tax losses, thin capitalization allowance or temporary differences of a prior period | 887 | 1,315 | |
Current-year losses for which no deferred tax asset is recognised | -3,263 | -3,072 | |
Tax-exempt reserves recognition | 1,300 | - | |
Withholding tax on international dividends | -21 | -52 | |
Change in tax rate or composition of new tax | - | 478 | |
Pillar II Top-up tax | -183 | - | |
Derecognition of previously recognised deferred tax assets | -1,118 | -2,082 | |
Prior year income tax adjustments | -1,922 | -1,602 | |
Income tax expense reported in the statement of profit or loss (-) at the effective tax rate | 23% | -62,832 | -24,809 |
The corporate income tax rate in Belgium according to the applicable tax legislation is 25%. The profit is taxed at the applicable rate corresponding to the country in which each company is domiciled. According to the Greek law 4799/2021, enacted in May 2021, the corporate income tax rate for legal entities in Greece, where most of Viohalco subsidiaries are located, for the fiscal year 2021 and onwards is set at 22%.
International Tax Reform \u2013 Pillar Two
Viohalco is within the scope of the OECD Pillar Two model rules that has been enacted or substantively enacted in certain jurisdictions in which Viohalco companies have presence. Under Pillar Two legislation, a top-up tax may arise for any difference between their Global Anti-Base Erosion (\u201cGloBE\u201d) effective tax rate per jurisdiction and the 15% minimum rate. The legislation is effective for the financial year beginning 1 January 2024.
Viohalco applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
For the year ended as at 31 December 2024, Viohalco has performed an assessment for all countries in which it has presence of the potential tax expense arising from Pillar Two rules. This assessment has been based on the Constituent Entities\u2019 IFRS financial statements as at 31/12/2024 in order to validate conclusions on eligibility of Constituents Entities for the CBCR Safe Harbour transitional rules.
Based on this assessment, only profits reported in Bulgaria and USA were not eligible for the CBCR Safe Harbour transitional rules, and for such profits the respective Pillar II top up tax liability recognised in 2024, amounts to EUR 183 thousands for the jurisdiction of Bulgaria.
D. Movement in deferred tax balances
2024 | Net balance at 31 December | |||||||||
Amounts in EUR thousands | Net balance at 1 January | Recognised in profit or loss | Recognised in OCI | Foreign exchange differences | Change in tax rate recognised in profit or loss | Change in tax rate recognised in OCI | Other | Net | Deferred tax assets | Deferred tax liabilities |
Property, plant & equipment | -117,235 | -7,971 | - | -386 | - | - | - | -125,592 | 824 | -126,415 |
Right of use asset | -2,127 | -1,045 | - | - | - | - | - | -3,172 | 90 | -3,262 |
Intangible assets | -1,245 | -86 | - | - | - | - | - | -1,331 | 1,239 | -2,570 |
Investment property | -2,491 | - | - | - | - | - | - | -2,490 | 86 | -2,576 |
Other investments | 752 | -1,057 | - | - | - | - | - | -305 | 138 | -443 |
Derivatives | -4,398 | 1,214 | 1,011 | -5 | - | - | - | -2,177 | 789 | -2,966 |
Inventories | 1,198 | -517 | - | - | - | - | - | 681 | 1,836 | -1,155 |
Loans and borrowings | 1,989 | 2,385 | - | 53 | - | - | - | 4,427 | 4,709 | -283 |
Employee benefits | 5,002 | 268 | 294 | - | - | - | - | 5,563 | 5,691 | -128 |
Provisions / Accruals | 6,540 | 3,435 | - | 202 | - | - | - | 10,177 | 10,177 | - |
Contract with customers | -18,944 | 10,403 | - | - | - | - | - | -8,541 | 14,585 | -23,125 |
Contract liabilities | -9 | - | - | - | - | - | - | -9 | - | -9 |
Other items | 2,817 | 145 | - | - | - | - | - | 2,962 | 3,874 | -912 |
Thin capitalisation | 28,563 | -10,485 | - | - | - | - | - | 18,079 | 18,079 | - |
Tax losses carried forward | 22,828 | -8,849 | - | 419 | - | - | - | 14,397 | 14,400 | -2 |
Tax assets/liabilities (-) before set-off | -76,758 | -12,160 | 1,305 | 282 | - | - | - | -87,330 | 76,516 | -163,846 |
Set-off tax | -53,481 | 53,481 | ||||||||
Net tax assets/liabilities (-) | -87,330 | 23,034 | -110,365 | |||||||
2023 | ||||||||||
Net balance at 31 December | ||||||||||
Amounts in EUR thousands | Net balance at 1 January | Recognised in profit or loss | Recognised in OCI | Foreign exchange differences | Change in tax rate recognised in profit or loss | Change in tax rate recognised in OCI | Loss of Control/Disposal of subsidiary | Net | Deferred tax assets | Deferred tax liabilities |
Property, plant & equipment | -112,789 | -5,253 | - | -170 | 34 | - | 944 | -117,235 | 1,023 | -118,258 |
Right of use asset | -480 | 277 | - | - | - | - | -1,924 | -2,127 | 106 | -2,233 |
Intangible assets | -859 | -385 | - | - | - | - | -1 | -1,245 | 1,289 | -2,534 |
Investment property | -2,410 | -81 | - | - | - | - | - | -2,491 | 92 | -2,582 |
Other investments | -917 | 1,669 | - | - | - | - | - | 752 | 832 | -79 |
Derivatives | -10,115 | 139 | 5,584 | -4 | 5 | -6 | - | -4,398 | 160 | -4,558 |
Inventories | 2,419 | -1,222 | - | - | - | - | - | 1,198 | 1,198 | - |
Loans and borrowings | -342 | 1,306 | - | 1 | 44 | - | 980 | 1,989 | 2,607 | -618 |
Employee benefits | 4,267 | 343 | 394 | -2 | - | - | - | 5,002 | 5,135 | -133 |
Provisions / Accruals | 6,278 | 379 | - | -117 | - | - | - | 6,540 | 6,540 | - |
Contract with customers | -17,517 | -2,457 | - | - | - | - | 1,030 | -18,944 | 2,761 | -21,704 |
Contract liabilities | -9 | - | - | - | - | - | - | -9 | - | -9 |
Other items | 1,392 | 2,466 | - | -4 | - | - | -1,037 | 2,817 | 3,813 | -996 |
Thin capitalisation | 23,596 | 4,967 | - | - | - | - | - | 28,563 | 28,563 | - |
Tax losses carried forward | 13,625 | 8,778 | - | 30 | 396 | - | - | 22,828 | 22,830 | -2 |
Tax assets/liabilities (-) before set-off | -93,860 | 10,925 | 5,978 | -266 | 478 | -6 | -7 | -76,758 | 76,949 | -153,707 |
Set-off tax | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -63,670 | 63,670 |
Net tax assets/liabilities (-) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -76,758 | 13,279 | -90,037 |
Deferred tax assets relating to tax losses carried forward are recognised only if it is probable that they can be offset against future taxable profits. At each balance sheet date, Viohalco and its subsidiaries assess whether the realization of future tax benefits is sufficiently probable based on approved business plans. On 31 December 2024, the accumulated tax losses carried forward available for future use amounted to EUR 116.8 million (31 December 2023 EUR 137.1 million). Viohalco companies have recognised cumulatively a deferred tax asset of EUR 14.4 million (31 December 2023: EUR 22.8 million) on tax losses because management considered it probable that future taxable profits would be available against which such losses can be used. EUR 4.1 million relate to Viohalco subsidiaries located in Greece, EUR 10 million relate to Viohalco subsidiaries located in UK and the rest EUR 0.3 million to subsidiaries in other jurisdictions. This deferred tax asset corresponds to losses equal to EUR 57 million (31 December 2023: EUR 88.7 million).
Based on these estimates regarding future taxable profits, deferred tax assets have not been recognised in respect of tax losses carried forward for an amount of EUR 60 million (EUR 48 million in 2023). Out of these, tax losses equal to EUR 12.4 million expire in 2025 and 2026, while the rest expire between 2027 and 2029. According to the provisions of articles 49 and 72 of the Greek Law 4172/2013 concerning thin capitalization, net interest expense is deductible from current year\u2019s tax profits, if it is equal or less than 30% of EBITDA and any excess can be settled with future tax profits without time limitations. Based on the current approved business plans, the balance of the respective tax asset was equal to EUR 18.1 million, as at 31 December 2024 (31 December 2023: EUR 28.6 million).
14. Inventories
Amounts in EUR thousands | 2024 | 2023 |
Merchandise | 28,852 | 34,291 |
Finished goods | 448,711 | 437,892 |
Semi-finished goods | 411,848 | 341,294 |
By-products & scrap | 109,124 | 104,938 |
Work in progress | 16,566 | 14,008 |
Raw and auxiliary materials, consumables and packaging materials | 747,489 | 678,045 |
Total | 1,762,590 | 1,610,467 |
The amount of inventories recognised as expense during 2024 and included in \u2019Cost of sales\u2018 was EUR 4.5 billion (2023: EUR 4.4 billion).
Inventories with a carrying amount of EUR 238 million are pledged as security for borrowings received by Viohalco\u2019s companies (See Note 26). No significant inventory adjustments to NRV were performed during 2024.
15. Trade and other receivables
Amounts in EUR thousands | Note | 2024 | 2023 |
Current assets | \u00a0 | \u00a0 | |
Trade receivables | 397,405 | 487,434 | |
Less: Impairment losses | -60,521 | -57,246 | |
Net trade receivables | 336,884 | 430,188 | |
Advance payments | 10,964\u00a0 | 12,058 | |
Cheques and notes receivables & cheques overdue | 35,539 | 39,836 | |
Receivables from related parties | 37 | 49,746 | 61,149 |
VAT and other tax receivables | 62,951 | 45,947 | |
Receivables from dividends of equity-accounting investees and other investments | 37 | 543 | 300 |
Other debtors | 97,091 | 141,446 | |
Less: Impairment losses | -11,863 | -11,863 | |
Net other receivables | 244,970 | 288,872 | |
Total current assets | 581,854 | 719,061 | |
Non-current assets | |||
Non-current receivables from related parties | 37 | 14,086 | 4,500 |
Less: Impairment losses | 37 | -4,544 | -1,900 |
Other non-current receivables | 19,887 | 27,007 | |
Total non-current assets | 29,429 | 29,607 | |
Total receivables | 611,283 | 748,668 |
Viohalco and its companies have not concentrated their credit risk in relation to receivables from customers, since they have
a wide range number of customers.
A. Transfer of trade receivables
The carrying amount of receivables includes amounts that are subject to factoring arrangements. Viohalco and its subsidiaries, enter into factoring agreements (with recourse) to sell trade receivables for cash proceeds. These trade receivables are not being derecognised from the statement of financial position, because substantially all the risks and rewards are still retained by Viohalco - primarily credit risk. The amount received on transfer by the factor is recognised as a secured bank loan.
The following table presents the carrying amount of trade receivables at the year-end that have been transferred, but have not been derecognised and the associated liabilities.
Amounts in EUR thousands | 2024 | 2023 |
Carrying amount of trade receivables transferred to banks | 55,771 | 51,460 |
Carrying amount of associated liabilities | 47,093 | 35,100 |
The fair value of trade receivables transferred approximates their carrying amount.
As at 31 December 2024 and 2023, Viohalco companies had not used the total amount of credit line provided by the factoring companies.
Related loans are included in the line \u2019Secured bank loans\u2018 in Note 26 \u2019Loans and Borrowings\u2019.
B. Credit and market risks and impairment losses
During 2010, the subsidiary Corinth Pipeworks SA initiated in Greece and Dubai legal actions against a former customer in the Middle-East regarding the recovery of an overdue receivable of USD 24.8 million (EUR 23.3 million on 31 December 2024), plus legal interest.
Following a series of court proceedings, the Dubai Court of Cassation issued its final judgment, during 2017, and ruled to reject any counterclaim of the former customer and to confirm the amount due to Corinth Pipeworks.
In order to recover this long overdue balance, Corinth Pipeworks has initiated the enforcement procedures against the assets of the former customer that are located within any of the countries, where the Court of Cassation judgment issued against the former customer is enforceable (i.e. UAE and various other countries in the Middle East). There were no other substantial developments during 2024.
Corinth Pipeworks had recorded in the past an impairment loss for the whole outstanding amount, i.e. USD 24.8 million. However, the subsidiary will continue any and all actions required to collect the full amount of that receivable.
Information about Viohalco companies\u2019 exposure to credit and market risks, and impairment losses for trade and other receivables is included in Note 30.
16. Cash and cash equivalents
Amounts in EUR thousands | 2024 | 2023 |
Cash in hand and at banks | 285 | 307 |
Demand and short-term bank deposits | 696,434 | 394,708 |
Total | 696,720 | 395,015 |
The share capital increase of Viohalco subsidiary Cenergy Holdings in October 2024, resulted in an increased cash position as of 31 December 2024.
The majority of available funds as of 31 December 2024 are placed with short-term bank term deposits and are available for use. Demand and short-term deposits as of 31 December 2024 are held with financial institutions, are readily convertible (even before agreed maturity date) to known amounts of cash, and are subject to an insignificant risk of changes in value.
Viohalco and its subsidiaries have the right to proceed with early withdrawal of the time deposit prior to agreed maturity date. Any breakage cost related to early termination is linked only to the anticipated interest income that was about to be received and does not affect the time deposit principal amount.
17. Property, plant and equipment
A. Reconciliation of carrying amount
Amounts in EUR thousands | Land, plants & other buildings | Machinery & transportation equipment | Furniture & other equipment | PP&E under construction | Total |
Cost | |||||
Balance as at 1 January 2024 | 1,172,800 | 3,233,840 | 96,282 | 235,557 | 4,738,478 |
Effect of movement in exchange rates | 2,667 | 9,086 | 322 | 1,226 | 13,301 |
Additions | 30,213 | 31,707 | 5,917 | 342,740 | 410,577 |
Disposals | -38 | -4,035 | -173 | -28 | -4,274 |
Transfer to/from investment property | - | - | - | -9,708 | -9,708 |
Reclassifications | 46,185 | 70,830 | 3,329 | -123,340 | -2,995 |
Write offs | -252 | -6,820 | -241 | -504 | -7,817 |
Balance as at 31 December 2024 | 1,251,575 | 3,334,607 | 105,436 | 445,943 | 5,137,561 |
Accumulated depreciation & impairment losses | |||||
Balance as at 1 January 2024 | -416,096 | -1,867,199 | -74,202 | -4,983 | -2,362,480 |
Effect of movement in exchange rates | -804 | -6,618 | -294 | - | -7,716 |
Depreciation | -22,391 | -95,574 | -7,431 | - | -125,396 |
Disposals | 34 | 3,217 | 69 | - | 3,320 |
Write offs | 94 | 5,481 | 232 | - | 5,807 |
Reversal of previously recognized impairment loss | 9,202 | 263 | - | - | 9,464 |
Impairment loss | -101 | -846 | - | - | -947 |
Reclassifications | -2,399 | -586 | -75 | - | -3,059 |
Balance as at 31 December 2024 | -432,462 | -1,961,862 | -81,701 | -4,983 | -2,481,007 |
Carrying amount as at 31 December 2024 | 819,114 | 1,372,745 | 23,735 | 440,961 | 2,656,555 |
Amounts in EUR thousands | Land, plants & other buildings | Machinery & transportation equipment | Furniture & other equipment | PP&E under construction | Total |
Cost | |||||
Balance as at 1 January 2023 | 1,145,277 | 3,115,012 | 84,159 | 170,654 | 4,515,102 |
Effect of movement in exchange rates | 1,165 | 3,510 | 3 | -358 | 4,320 |
Additions | 18,971 | 24,175 | 8,282 | 233,147 | 284,574 |
Disposals | -92 | -3,978 | -286 | -791 | -5,148 |
Transfer to/from investment property | -20,573 | - | - | - | -20,573 |
Reclassifications | 31,232 | 131,363 | 9,701 | -163,564 | 8,733 |
Write offs | -3,090 | -36,243 | -5,424 | -3,530 | -48,287 |
Reclassification to assets held for sale | -89 | - | -153 | - | -242 |
Balance as at 31 December 2023 | 1,172,800 | 3,233,840 | 96,282 | 235,557 | 4,738,478 |
Accumulated depreciation & impairment losses | |||||
Balance as at 1 January 2023 | -406,935 | -1,803,569 | -68,580 | -4,983 | -2,284,066 |
Effect of movement in exchange rates | -573 | -2,487 | -14 | - | -3,074 |
Depreciation | -22,787 | -98,902 | -6,233 | - | -127,922 |
Disposals | 24 | 3,310 | 233 | - | 3,567 |
Write offs | 3,087 | 35,274 | 5,420 | - | 43,781 |
Reversal of previously recognized impairment loss | 10,634 | 278 | - | - | 10,912 |
Transfer to/from investment property | 2,876 | - | - | - | 2,876 |
Impairment loss | -2,765 | -1,180 | -4 | - | -3,949 |
Reclassifications | 342 | 77 | -5,029 | - | -4,610 |
Reclassification to assets held for sale | 1 | - | 4 | - | 4 |
Balance as at 31 December 2023 | -416,096 | -1,867,199 | -74,202 | -4,983 | -2,362,480 |
Carrying amount as at 31 December 2023 | 756,704 | 1,366,640 | 22,080 | 230,574 | 2,375,998 |
The net amount of EUR 6 million in \u2018Reclassifications\u2019 movement mainly concerns reclassifications between property, plant and equipment, intangibles and right of use assets.
B. Security
Property, plant & equipment with a carrying amount of EUR 1,386 million are mortgaged as security for borrowings received by Viohalco\u2019s companies (see Note 26).
C. Property, plant and equipment under construction
The most important additions in property, plant and equipment under construction as of 31 December 2024 concern the following:
Aluminium segmentinvestments mainly related to investments at the extrusions plant in Bulgaria for the manufacturing of automotive products and other operational improvements across the aluminium plants in Greece and the UK.
Copper segment investments mainly related to rolling mill production capacity increase and the product mix improvement, enabling the manufacturing of products of new widths and thicknesses.
Regarding the cables segment, ongoing investments in the cables plants in Corinth,Thiva and Eleonas Viotia, Greece and capital expenditure to support the construction of a land cables factory in the USA.
Steel segment investments mainly concerning operational improvements across steel plants, focusing on environmental compliance and resources usage efficiency.
Other segment investments are mainly related to the additions in Thisvi port in Greece by Viohalco subsidiary Diavipethiv and in other investments by the rest of the segments\u2019 subsidiares.
Capitalized borrowing costs related to property, plant and equipment under construction amount to EUR 6.0 million (2023: EUR 4.4 million), which have been calculated using an average capitalization rate of 5.7% (2023: 5.1%).
Additions in assets under construction also include capitalized employee benefits equal to EUR 7,730 thousand (2023: EUR 4,028 thousand).
D. Transfer to and from investment property
During 2024, Property plant and plant and equipment amounting of EUR 9.7 million were transferred to investment property.
E. Impairment loss of property, plant and equipment
On 31 December 2024, an impairment test was performed for each Cash Generating Unit (further CGU) for which indications of impairment loss existed as at 31 December 2024 concerning subsidiaries from steel segment. The identified indications of impairment concerned the losses incurred by certain CGUs over the last years. For the calculation of recoverable amount per CGU, cash flow projections based on a period of five years were used. The results of this test concluded that the property, plant and equipment used by these CGUs were not impaired at 31 December 2024, since the recoverable amount of each CGU exceeded the respective carrying amount.
In addition, impairment losses of EUR 0.9 million where recognised mainly in the aluminium (EUR 0.4 million) and cables segments (EUR 0.5 million) for specific fixed assets that indications of impairment were existed. The recoverable amount of related assets amounted EUR 1.3 million.
During 2024, assets with NBV equal to EUR 2.0 million (2023: EUR 4.5 million) were written off since they are no longer used by Viohalco companies and they are not expected to bring economic benefits in the future since they have became obsolete.
In addition, impairment tests were performed on real estate assets where indications of impairment exist, either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. Valuation techniques and the results relating to investment properties are outlined in note 19.
F. Reversal of impairment loss of property, plant and equipment
A test has also been performed for CGUs, for which indications for reversal of previously recorded impairment loss existed at 31 December 2024. These indications concerned the improvement of expected performance of certain CGUs over the following years. However, the result of the test was that no impairment loss should be reversed in 2024.
In addition, previously recognized impairment losses of EUR 9,5 million were reversed (recoverable amount EUR 38,1 million) and included in the line \u201cOther Income\u201d of the consolidated statement of profit or loss, related to Investment property that has been transferred to PP&E in the previous years. Valuation technique applied was \u201cIncome Approach\u201d. Valuation techniques and the results relating to investment properties are outlined in note 19.
For segmental classification purposes, reversal of impairment losses reported in real estate segment.
18. Goodwill and intangible assets
A. Reconciliation of carrying amount
Amounts in EUR thousands | Goodwill | Development costs | Trademarks and licenses | Software | Other | Total |
Cost | ||||||
Balance as at 1 January 2024 | 1,500 | 537 | 43,747 | 67,951 | 3,248 | 116,982 |
Effect of movement in exchange rates | - | - | - | 9 | -1 | 8 |
Additions | - | - | 2,422 | 4,031 | - | 6,454 |
Write-offs | - | - | - | -2 | - | -2 |
Reclassifications | - | - | 4,539 | 2,791 | 115 | 7,445 |
Balance as at 31 December 2024 | 1,500 | 537 | 50,707 | 74,781 | 3,362 | 130,887 |
Accumulated amortization and impairment loss | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
Balance as at 1 January 2024 | -1,500 | -512 | -16,467 | -46,790 | -1,184 | -66,453 |
Effect of movement in exchange rates | - | - | - | -5 | 1 | -5 |
Amortization | - | -8 | -3,184 | -3,761 | -190 | -7,143 |
Write-offs | - | - | - | 2 | - | 2 |
Balance as at 31 December 2024 | -1,500 | -520 | -19,652 | -50,555 | -1,373 | -73,600 |
Carrying amount as at 31 December 2024 | - | 17 | 31,056 | 24,225 | 1,989 | 57,287 |
Amounts in EUR thousands | Goodwill | Development costs | Trademarks and licenses | Software | Other | Total |
Cost | ||||||
Balance as at 1 January 2023 | 1,500 | 537 | 39,569 | 60,619 | 3,138 | 105,363 |
Effect of movement in exchange rates | - | - | - | -49 | -5 | -54 |
Additions | - | - | 1,940 | 5,023 | 112 | 7,075 |
Write-offs | - | - | - | -8 | - | -8 |
Loss of Control/Disposal of subsidiary | - | - | -5 | -6 | - | -11 |
Reclassifications | - | - | 2,243 | 2,373 | 3 | 4,619 |
Balance as at 31 December 2023 | 1,500 | 537 | 43,747 | 67,951 | 3,248 | 116,982 |
Accumulated amortization and impairment loss | ||||||
Balance as at 1 January 2023 | -1,500 | -505 | -14,004 | -44,956 | -1,022 | -61,986 |
Effect of movement in exchange rates | - | - | - | 37 | 2 | 40 |
Amortization | - | -8 | -2,427 | -1,917 | -164 | -4,515 |
Write-offs | - | - | - | 8 | - | 8 |
Reclassifications | - | - | -37 | 37 | - | - |
Balance as at 31 December 2023 | -1,500 | -512 | -16,467 | -46,790 | -1,184 | -66,453 |
Carrying amount as at 31 December 2023 | - | 25 | 27,279 | 21,161 | 2,065 | 50,529 |
B. Amortisation
The amortization of trademarks and licenses with finite useful lives, software programs and other intangible assets is allocated to the cost of inventory and is included in \u2019Cost of sales\u2018 when inventory is sold, as trademarks and licenses and software programs are mainly used directly for the production of products and they are considered as production overheads. The amortization of intangible assets not used for production is allocated to administrative expenses.
C. Reclassifications
Reclassifications mainly relate to intangible assets recorded initially in projects under construction (in property, plant and equipment) and upon the completion of the project, they are transferred to the column which describes their nature.
D. Goodwill
No additional Goodwill has been recognized during 2024.
E. Intangible assets with indefinite useful lives
All intangible assets have finite useful life (see Note 5.10), except for the following assets, included in trademarks and licenses category:
i. Intangible assets recognized for the CGU \u201cFulgor\u201d
a. Trade Name \u201cFulgor\u201d (carrying amount of EUR 1.4 million on 31 December 2024)
It relates to the sector of medium voltage submarine cables and underground high voltage cables that Fulgor was operating prior to its acquisition by Hellenic Cables in 2011 and which has revealed significant economic benefits. Based on the analysis of relevant factors (e.g., knowledge, no longstanding engagement with a wide range of clientele, future development of the sector), the useful life of the brand was considered indefinite.
b.\tLicense of Port use in Soussaki, Corinth (carrying amount of EUR 8.3 million as at 31 December 2024)
Fulgor holds a license for permanent and exclusive use of a port located in the premises of the factory in Soussaki, Corinth. The port is necessary for the production and transportation of submarine cables of medium and high voltage. Since the acquisition of the subsidiary, significant investments for the upgrade and expansion of production capacity of medium and high-voltage submarine cables took place. The useful life of the asset is considered indefinite since the right of use of these port facilities is for an indefinite period.
ii. Intangible assets recognized for the CGU \u201cReynolds\u201d (carrying amount of EUR 1.6 million as at 31 December 2024).
Upon the completion of the acquisition of Reynolds Cuivre by Genecos, an intangible asset related to the brand name \u201cReynolds\u201d was recognized, as significant economic benefits are expected from its use. Based on the analysis of relevant factors (e.g. knowledge of the relevant market, wide range of clientele, expected future developments), the useful life of the brand was considered indefinite.
F. Impairment testing
(a)\tIntangible assets recognized for the CGU \u201cFulgor\u201d
As these intangible assets do not generate independent cash inflows, it was considered appropriate to carry out the impairment test on the basis of the Cash Generating Unit (CGU) of Fulgor submarine cables production plant, which incorporates these assets. To evaluate the value in use, cash flow projections based on estimates by management covering a five-year period (2025 \u2013 2029) were used. These estimates take into consideration the contracts already signed, as well as contracts estimated to be awarded in Greece and abroad.
The submarine cables CGU operates as a project-based business. Therefore, assumptions related to revenue and profitability growth are based on the contracts already signed, as well as those estimated to be undertaken in the forthcoming period. The main assumptions regarding the operations of submarine cables CGU and the projects to be executed within the five-year period are:
High-capacity utilization of Corinth plant owned by Fulgor, as the one observed during the last 4 years, based on contracts already awarded and those expected given the tendering activity. Given the existing backlog and the growth of renewables business in Europe and interconnection projects around the world, which are the most significant drivers in the attractive outlook for the offshore power generation market, the continuously high level of activity is expected to be retained throughout the period 2025-2029.
Capital expenditure of approx. EUR 183 million in the following 5 years, to cover estimated production and capacity needs. Capital expenditure reflects investments for maintenance as well as organic growth. For the terminal period, investments are set equal to depreciation.
The compound annual growth rate of revenue from offshore business for the five-year period is set to ca. 19% attributable to the assignment of new projects mainly in Greece and North Europe.
The EBITDA margin per offshore project is assumed in the range of 15%-25% of revenue. Estimated profitability per project varies due to different types of cables required, technical specifications, geographic region and the project\u2019s timeframe.
The compound annual growth rate of fixed operating expenses is assumed equal to ca. 5.8% for the five-year period.
Cash flows after the first five years were calculated using an estimated long term growth rate of 1.31%, which mainly reflects management\u2019s estimates for the world economy as well as long-term growth prospects of the offshore cable sector. The pre-tax rate used to discount these cash flows was 10.33% (2023: 11.34%), based on the following assumptions:
The risk-free rate was based on AAA European bond yields.
The country risk calculations were based on the expected future sales mix and the fact that the business unit is based in Greece.
The market risk premium was assumed equal to 3.94% (2023: 4.84%).
Commodity prices for copper and aluminium are intrinsically part of the impairment test assumptions; the metal price hedging activities undertaken, though, and the customized nature of the products sold by Fulgor, suggest that the value of the business unit is not significantly affected by fluctuations in commodity prices. Hence, a neutral result from metal price fluctuations is assumed in the context of the impairment test.
The results of this test indicated that the recoverable amount on 31 December 2024 exceeds the carrying amount of the CGU (equal to EUR 498 million) by EUR 1,004 million.
A sensitivity analysis was carried out on the key assumptions of the model (discount rates and growth in perpetuity), to examine the adequacy of the above headroom. Sensitivity analysis results indicated that the recoverable amount is comfortably exceeds the carrying value of the CGU. Assumptions may change as follows so as the recoverable amount equals the carrying amount:
Assumptions used | Change in rates (percentage points change) required for the recoverable amount to equal the carrying amount | |
Discount rate | 10.33% | + 10.9 ppc |
Terminal growth | 1.31% | - 47.1 ppc |
(b) Intangible assets recognized for the CGU \u201cReynolds\u201d
The recoverable amount of the CGU that includes this intangible asset (Reynolds Cuivre S.A.) was estimated based on the present value of the future cash flows expected to be derived from the CGU (value in use).
Cash flows after the first five years were calculated using an estimated growth rate of 1%, which reflects management\u2019s estimates for the growth prospects for the market. The after-tax rate used to discount these cash flows is 7.9% for the five year period and for the terminal value and was based on the following:
Risk free rate at 2.49%.
The market risk premium (including the country risk for operating in France) was determined at 4.5%.
Additional hurdle rate of 1%.
Sales revenue is estimated to grow at a 3.9% cumulative annual growth rate for the first five years, while operating earnings grow at a 1.3% rate. Average annual capex for the same period equals to EUR 143 thousand.
The results of this test indicated that the recoverable amount as at 31 December 2024 exceeds the carrying value of the CGU amounting to EUR 9.8 million by EUR 11 million.
Sensitivity and scenario analysis was carried out on the assumptions of the DCF model (sales growth, profitability, working capital requirements, and discount rates), to examine the adequacy of the headroom. The headroom was deemed adequate even under extremely stressed scenarios. A combination of negative growth, depressed margins and high working capital requirements and discount rates would be required for headroom to turn negative. Such a scenario was deemed unrealistic.
19. Investment property
A. Reconciliation of carrying amount
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 338,279 | 316,024 |
Acquisitions | 16,505 | 15,853 |
Disposals | -53 | -527 |
Write offs | -19 | - |
(Impairment losses) / Reversal of impairment losses | -6,857 | -3,118 |
Modifications | 206 | 297 |
Transfers from property, plant and equipment | 9,708 | 17,697 |
Reclassifications | - | -2,451 |
Depreciation | -5,391 | -5,495 |
Balance as at 31 December | 352,379 | 338,279 |
Gross carrying amount | 437,349 | 411,082 |
Accumulated depreciation and impairment losses | -84,971 | -72,803 |
Net carrying amount as at 31 December | 352,379 | 338,279 |
Investment property comprises of a number of commercial and industrial properties that are either leased to third parties currently or will be in the foreseeable future. Each of these leases is indexed to consumer prices.
During 2024, Viohalco invested an amount of EUR 17 million (EUR 16 million in 2023) for the development and improvement of investment properties.
B. Measurement of fair value \u2013Impairment loss and subsequent reversal
On December 31st 2024, an impairment test was performed on all real estate assets (individual assets), either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. The results relating to owner occupied properties are outlined in note 17.
For investment property assets, an impairment loss of EUR 9.7 million was recorded and included in the line \u2019Other expense\u2018 of the consolidated statement of profit or loss. Impairment losses relate primarily to land and buildings, and the recoverable amount was based on its fair value less costs of disposal. The fair value of these properties was determined by external, independent property valuers, having appropriate recognized professional qualifications and recent experience in the location and category of the properties being valued. Valuation techniques are described in detail in the next paragraph. For segmental classification purposes, the impairment loss (recoverable amount EUR 38 million) was reported in real estate segment.
Asset valuations were also used to identify if previously recognized impairment losses could be reversed. As a result, EUR 2.8 million were reversed and included in the line \u2019Other Income\u2018 of the consolidated statement of profit or loss. The recoverable amount of these assets as at 31 December 2024 was EUR 88 million and they relate to the real estate segment.
The accumulated impairment losses carried forward as at 31 December 2024, amounts to EUR 50.3 million (31 December 2023: EUR 43.4 million).
The fair value of all properties reported in the line \u2019Investment property\u2018, as at 31 December 2024, is EUR 500 million (31 December 2023: EUR 484 million).
Valuation techniques and significant unobservable inputs (Level 2 & 3)
The fair value measurement for investment property has been categorized as a Level 2 & 3 regarding fair value hierarchy, based on the inputs to the valuation techniques used.
Valuations methods used to determine the fair value of these properties were reflecting the highest and best possible use.
-\tFor buildings currently rented or expected to be rented out in the foreseeable future, the income approach (either Discounted Cash Flow or Direct capitalization) method was used. DCF method considered the present value of net cash flows to be generated from each property, taking into account expected rental growth rate, void periods, occupancy rate, lease incentive costs such as rent-free periods and other relevant costs/fees obliged to be settled by the owning entity. The expected net cash flows are discounted using risk-adjusted discount rates that ranged between 7,46% - 12,50% and exit yields that ranged between 4,00-11,00%. Among other factors, the discount rate estimation considers the quality of each building, its location, tenant credit quality, lease terms and the expected market return. The estimated fair value would decrease if either the expected market rental growth was lower or the risk-adjusted discount rates were higher. Direct capitalization uses an All-Risk Yield in order for the current annual estimated rental value to be capitalized. ARY ranged between 4,00% - 12,00% and offers a holistic assessment of the property market\u2019s general condition.
-\tFor land plots and buildings, which were under construction and which are intended to be used as investment property in the future, the residual method was primarily used. The fair value determined by this method reflects the value of the property in its current condition.
-\tFor the utilitisation of a secondary valuation methodology, the comparative method (market approach) was appraised for the vast majority of the properties. According to this method the valuer estimates the market value of the subject asset by comparing the factors that mostly affect it. Such factors can be location, size, quality of construction etc. This method is based on estimation of the market price and what has been paid for similar properties under similar economic conditions. Each property is valued at a price at which similar ones in the area have recently sold with a subjective differential added (or subtracted) to adjust for the unique characteristics of the property that make it different from the benchmark properties, such as location, size, accessibility etc.
20. Equity-accounted investees
A. Reconciliation of carrying amount of associates and joint ventures
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 31,329 | 36,638 |
Share of profit / loss (-) net of tax | -5,012 | -11,284 |
OCI profit (loss) for the period | - | -2 |
Dividends received | -1,285 | -723 |
Effects on movement in exchange rates | -593 | -3,934 |
Share capital increase | 8,675 | 13,400 |
Additions | 1,445 | - |
Impairment | -3,144 | -2,766 |
Balance as at 31 December | 31,416 | 31,329 |
B. Financial information per associate and joint venture
The following tables present financial information per associate. The disclosed financial information reflects amounts in the financial statements of the relevant associates.
2024 | |||||||||||||
Company | Principal place of business | Segment | Associate/JV | Carrying Value | Current Assets | Non-Current Assets | Non-Current Liabilities | Current Liabilities | Revenue | Profit or loss from continuing operations | Total com-prehensive income | Direct Ownership interest | Ultimate ownership interest |
ETEM GESTAMP AUTOMOTIVE SA | Bulgaria | Aluminium | Joint Venture | 9,336 | 21,664 | 48,349 | 25,792 | 30,212 | 82,599 | 90 | 90 | 49.00% | 49.00% |
DOMOPLEX LTD | Cyprus | Steel | Associate | 1,058 | 3,115 | 1,819 | 562 | 2,289 | 5,304 | 232 | 232 | 45.00% | 45.00% |
AO TMK-CPW | Russia | Steel Pipes | Associate | 7,859 | 42,305 | 4,114 | 68 | 24,668 | 67,698 | 296 | 296 | 49.00% | 35.00% |
HC ISITMA \u0391.S. | Turkey | Copper | Joint Venture | -31 | 523 | 279 | 156 | 101 | 2,037 | -139 | 3 | 50.00% | 42.39% |
U.E.H.E.M GmbH | Germany | Aluminium | Associate | 820 | 14,158 | 53 | 52 | 12,158 | 66,443 | 1,035 | - | 49.00% | 41.54% |
NEDZINK B.V. | Netherlands | Copper | Joint Venture | - | 30,688 | 38,911 | 48,982 | 13,691 | 91,913 | -10,713 | - | 50.00% | 42.39% |
NEDZINK HOLDING B.V. | Netherlands | Copper | Joint Venture | 981 | 3,917 | 718 | - | 1,527 | 9,679 | -101 | - | 50.00% | 42.39% |
THE GRID SA | Greece | Real estate | Joint Venture | 10,330 | 16,414 | 67,584 | 56,549 | 6,857 | - | -532 | -532 | 50.00% | 34.39% |
Metallourgia Attikis | Greece | Other | Associate | 809 | 2,836 | 106 | 70 | 504 | 1,811 | 1,009 | 1,009 | 50.00% | 50.00% |
F-NOUS | Greece | Aluminium | Associate | 254 | 1,201 | 1,483 | 711 | 1,534 | 934 | -508 | -508 | 35.00% | 29.67% |
31,416 | |||||||||||||
2023 | |||||||||||||
Company | Principal place of business | Segment | Associate/JV | Carrying Value | Current Assets | Non-Current Assets | Non-Current Liabilities | Current Liabilities | Revenue | Profit or loss from continuing operations | Total com-prehensive income | Direct Ownership interest | Ultimate ownership interest |
ETEM GESTAMP AUTOMOTIVE SA | Bulgaria | Aluminium | Joint Venture | 9,282 | 16,796 | 42,479 | 15,162 | 30,196 | 61,357 | 853 | 853 | 49.00% | 49.00% |
DOMOPLEX LTD | Cyprus | Steel | Associate | 1,364 | 3,674 | 1,865 | 2,655 | 581 | 6,039 | 265 | 265 | 45.00% | 45.00% |
AO TMK-CPW | Russia | Steel Pipes | Associate | 8,307 | 28,337 | 4,248 | 104 | 9,883 | 66,636 | -2,232 | -2,232 | 49.00% | 39.09% |
HC ISITMA \u0391.S. | Turkey | Copper | Joint Venture | 38 | 508 | 132 | 29 | 66 | 2,051 | -48 | -4 | 50.00% | 42.39% |
U.E.H.E.M GmbH | Germany | Aluminium | Associate | 1,083 | 14,376 | 12 | - | 12,235 | 73,559 | 1,656 | 1,656 | 49.00% | 41.54% |
NEDZINK B.V. | Netherlands | Copper | Joint Venture | - | 30,165 | 40,240 | 32,030 | 52,377 | 79,614 | -22,277 | - | 50.00% | 42.39% |
THE GRID SA | Greece | Real estate | Joint Venture | 10,465 | 1,471 | 70,555 | 25,739 | 1,419 | - | 17,680 | 17,680 | 50.00% | 40.55% |
Metallourgia Attikis | Greece | Other | Associate | 791 | 1,612 | 257 | 68 | 231 | 1,897 | 237 | 237 | 50.00% | 50.00% |
31,329 |
-\tIn 2024, a capital increase was implemented in the associated company NedZink B.V., with ELVALHALCOR contributing EUR 8.5 million, maintaining its ownership at 50%. However, challenging global economic conditions, dampened demand for NedZink B.V.\u2019s products, resulting in a downturn in its 2024 financial performance. This resulted to an impairment loss of the investment, as a consequence of the impairment test assessment performed according to its business plan, which ELVALHALCOR incorporate the revised negative assessments for future results for NedZink B.V., following the conservatism principle. As a result, an impairment loss of EUR 3.1 million was recorded, due to the fact that the recoverable amount of the investment was lower than the carrying amount of the investment.
-\tIn 2024, a capital increase was implemented in newly acquired associated company NedZink Holding B.V., with ELVALHALCOR contributing EUR 1.2 million, acquiring a 50% ownership.
-\tSince AO TMK-CPW is based on Russia, there are restrictions on the ability of the associate to transfer funds to Viohalco and its subsidiaries in the form of cash dividends, due to the counter sanctions set by the Russian Federation. Humbel Ltd (the owner of 49% of the shares in the AO TMK-CPW) has asked AO TMK-CPW to postpone the payment of any dividends, until further notice. Therefore, during 2024, there were no transactions between AO TMK-CPW and Viohalco subsidiaries.
Aforementioned financial information is presented considering the following:
(a)\tThere are no other restrictions on the ability of joint ventures or associates to transfer funds to the entity in the form of cash dividends, or to repay loans or advances made by the entity.
(b)\tThe financial statements of joint ventures or associates are used in applying the equity method and as of the same date with that of Viohalco.
(c)\tThere are no unrecognized share of losses of a joint venture or associate, both for the reporting period and cumulatively.
C. Description of associates and joint ventures
UEHEM (UACJ ELVAL HEAT EXCHANGER MATERIALS GmbH) is a joint establishment between ElvalHalcor and UACJ Corp. It markets aluminium products to manufacturers of automotive heat exchangers in Europe.
HC ISITMA is a joint venture between ElvalHalcor and Cantas AS. It is active in the manufacture of pre-insulated copper tubes in Turkey.
AO TMK-CPW is a joint stock company between Corinth Pipeworks and AO TMK, the largest manufacturer of steel pipes in Russia and one of the top three globally. AO TMK-CPW has its production facilities in Polevskoy, Russia, where it manufactures pipes and hollow structural sections.
Domoplex is a Cyprus-based company active in the manufacturing and trading of welded wire mesh for the reinforcement of concrete.
NedZink B.V. and NedZink Holding B.V. are Netherlands based companiesfocusing on high quality zinc applications.
Gestamp Etem Automotive Bulgaria S.A. is a joint venture between Gestamp and Etem Bulgaria S.A. that focus on the commercialisation and processing of aluminium extruded profiles for the automotive industry.
THE GRID S.A.is a joint venture between Noval Property REIC and Brook Lane Capital that operates in Real Estate development sector.
Metallourgia Attikis SAis a Greek based company focusing on the production and trading of pipes, sanitary ware, faucets and heating radiators.
F-NOUS is a Greek based facade construction and engineering company, specializing in large scale facade construction and engineering, crafting customized facade solutions both for commercial and residential buildings.
21. Other investments
Viohalco designates the investments shown below as equity securities at FVOCI, as they represent investments that Viohalco intends to hold for the long term strategic purposes.
The movement of equity securities, as well as their analysis, is presented below:
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 33,686 | 8,405 |
Additions | 277 | 28,904 |
Disposals | -2,226 | -134 |
Impairment loss | - | -54 |
Impairment loss reversal | - | 2 |
Change in fair value through profit or loss | 7,462 | -3,266 |
Change in fair value through OCI | -233 | -151 |
Other changes | - | -20 |
Balance as at 31 December | 38,966 | 33,686 |
Amounts in EUR thousands | 2024 | 2023 |
Listed securities | ||
-Greek equity instruments | 283 | 2,414 |
-International equity instruments | 2,972 | 3,205 |
Unlisted securities | ||
-Greek equity instruments | 34,082 | 26,660 |
-International equity instruments | 849 | 849 |
-Mutual funds | 780 | 557 |
\u00a0Total | 38,966 | 33,686 |
The investments for which the fair value cannot be estimated were valued at cost. For the calculation of the fair value please see note 30 Financial assets and risk management. The fair value is being recorded through OCI statement (FVTOCI).
On April, 7th,2023, the merger by absorption of Etem Commercial SA, subsidiary of ElvalHalcor, by the company Cosmos Aluminium SA has been approved. As a result of the completion of the transaction, ElvalHalcor holds a minority stake of 15% in the share capital of Cosmos Aluminium SA and classified this investment to \u201cOther investments\u201d.
The investment in Cosmos Aluminium SA amounted EUR 30.5 million at year end, as it has been revalued by EUR 7.5 million, and the respective revaluation net gain has been included in the consolidated statement of profit and loss and measured in the fair value through profit and loss.
Additionally, based on the purchase agreement, the shareholders of ElvalHalcor granted Cosmos Aluminium SA with a put option to purchase the remaining outstanding capital stock of Cosmos Aluminium SA. In addition, Cosmos Aluminium SA granted ELVALHALCOR with a put option to sale the remaining outstanding capital stock of Cosmos Aluminium SA. The calculation of the purchase price prescribed in the call and put option is based on a predetermined formula based on the EBITDA of Cosmos Aluminium SA on the strike date. The exercise period for both options commenced in 2028 and their term is for six months. Upon the exercise of the aforementioned options, the shareholders of Cosmos Aluminium SA will own 100% of outstanding capital stock of Cosmos Aluminium SA. These expire in case that the shareholders do not exercise them during the exercise period. These options are recognized in the consolidated and separate statement of financial position in their fair value and were included in the carrying amount of the investment in Cosmos Aluminium SA. The recognized loss arises from their measurement in the fair value recorded in the consolidated statement of profit and loss into \u201cOther expense\u201d.
The fair value of the put and call options was based on a widely acceptable valuation model methodology considering the below:
\u2022 expected turnover & EBITDA margins of Cosmos Aluminium SA;
\u2022 risk free rate;
\u2022 duration period;
\u2022 volatility, defined as the range of values for all inputs used in the valuation model.
22. Assets held for sale
The following assets and liabilities were reclassified at their fair value as held for sale as at 31 December 2024:
Amounts in EUR thousands | 2024 | 2023 |
Property Plant & Equipment | 301 | 1,422 |
Intangible assets | - | 11 |
Other non current assets | - | 21 |
Trade and other receivables | - | 114 |
Cash & Cash equivalents | - | 280 |
Total Assets Held for Sale | 301 | 1,849 |
Non current Loans & borrowings | - | 785 |
Trade and other payables | - | 320 |
Current Loans & borrowings | - | 59 |
Total Liabilities directly associated with Assets Held for Sale | - | 1,163 |
On 12.12.2023, an agreement was signed between subsidiary \u201cELVAL COLOUR SINGLE MEMBER S. A.\u201d, associate \u201cCOSMOS ALUMINUM S. A.\u201d and \u201cAVANTECH O.E.\u201d for the participation of last two in the capital increase of 100% subsidiary company of \u201cELVAL COLOUR SINGLE MEMBER S. A.\u201d, \u201cROULOC S.A.\u201d aiming to expand its commercial network and of its product portfolio.
As a result of above Corporate Transformation:
- ROULOC S.A. was renamed to \u201cf-nous SOCIETY ANONYMOUS\u201d;
- Elvalhalcor, through its participation in ELVAL COLOR SA, will hold a 35% in the share capital of \u201cf-nous SOCIETY ANONYMOUS \u201c, while the new shareholders \u201cCOSMOS ALUMINUM\u201d and \u201cAVANTECH O.E.\u201d will hold 35% and 30% respectively .
23. Derivatives
The following table sets out the carrying amount of derivatives:
Amounts in EUR thousands | 2024 | 2023 |
Non-current assets | \u00a0 | \u00a0 |
Interest rate swap contracts | 4,543 | 6,578 |
Forwards | - | 11 |
Electricity Swaps | - | 1,115 |
Commodity Swaps | 499 | - |
Future contracts | - | 122 |
Options | - | 730 |
Total | 5,042 | 8,557 |
Current assets | ||
Interest rate swap contracts | 3,060 | 6,029 |
Forwards | 1,552 | 8,013 |
Future contracts | 4,429 | 4,963 |
Commodity Swaps | 2,307 | 1,347 |
Total | 11,348 | 20,352 |
Non-current liabilities | ||
Interest rate swap contracts | 450 | 1,425 |
Future contracts | - | 1 |
Commodity Swaps | - | 3,598 |
Total | 450 | 5,023 |
Current liabilities | ||
Forwards | 6,212 | 794 |
Future contracts | 2,258 | 316 |
Commodity Swaps | - | 2,996 |
Total | 8,469 | 4,107 |
Variable rate loans and borrowings expose Viohalco companies to a rate volatility risk (cash flow risk). Viohalco subsidiaries entered into interest rates swaps contracts in order to be hedged by interest rate fluctuations, by transforming the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Hedge accounting
Viohalco\u2019s companies hold derivative financial instruments for cash flow and fair value hedges.
The abovementioned derivative financial instruments cover risks from:
Changes in the prices of metals;
Fluctuations of foreign exchange rates;
Changes in loan interest rates;
Fluctuations of energy.
The maturity and the nominal value of derivatives held by Viohalco\u2019s companies match the maturity and nominal value of the underlying assets / liabilities (hedged items).
Derivatives held by Viohalco\u2019s companies concern mainly:
Future contracts to hedge the risk from the change of the price of metals listed in LME (London Metal Exchange) and used in production of Viohalco\u2019s companies (i.e. mainly copper, aluminium and zinc). Such hedges are designated as cash flow hedges.
FX Forward and FX swaps to hedge the risk from the change in exchange rate of US Dollar and British Pound (i.e. currencies to which Viohalco\u2019s companies are mainly exposed). Such hedges are either designated as fair value or cash flow hedges depending on the item hedged. FX Forwards and FX swaps when used for hedging FX risk on outstanding receivables and suppliers denominated in foreign currency these instruments are designated under fair value hedging. FX forwards when used for hedging FX risk on the forecasted sales of goods or purchase of materials executed in foreign currency FX forward is hedging instruments designated under the cash flow method.
Variable rate loans and borrowings expose Viohalco companies to an interest rate volatility risk (cash flow risk). In order to hedge it, interest rate swaps are used to effectively transform the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Derivatives are recognised when Viohalco\u2019s companies enter into the transaction in order either to hedge the fair value of receivables, liabilities or commitments (fair value hedges) or highly probable transactions (cash flow hedges).
The change in fair value recognized in equity under cash flow hedging as at 31 December 2024 will be recycled to the consolidated statement of profit or loss during the next years, as some of the hedged events are expected to occur (the forecasted transactions will take place or the hedged items will affect profit or loss statement) within 2025 and some others at a later stage.
Viohalco companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively) the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined. The table below provides the results of the effectiveness test:
On 31 December 2024 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -468 | - | - |
Foreign exchange forwards | -6,454 | -2,733 | - |
Future contracts | 2,914 | -844 | -5 |
Electricity swaps | -1,115 | - | - |
Commodity swaps | 5,787 | -50 | - |
Total | 664 | -3,627 | -5 |
On 31 December 2023 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -5,754 | -\u00a0 | -\u00a0 |
Foreign exchange forwards | 7 | -\u00a0 | -\u00a0 |
Forward foreign exchange contracts | 4,997 | 806 | -\u00a0 |
Future contracts | 4,341 | 214 | 337 |
Electricity swaps | 1,115 | -\u00a0 | -\u00a0 |
Commodity swaps | -21,379 | \u00a0- | -\u00a0 |
Total | -16,673 | 1,020 | 337 |
Viohalco companies\u2019 results from the hedging activities recorded in the statement of profit or loss are presented for metal future contracts,foreign exchange contracts and the energy contracts in the \u2019Revenue\u2018 and the \u2019Cost of sales\u2018 while for interest rate swaps in the \u2019Finance income/ expenses\u2019. The amounts recognized in the consolidated statement of profit or loss are the following:
Amounts in EUR thousands | 2024 | 2023 |
Gain / loss (-) on future contracts | 16,978 | -733 |
Gain / loss (-) on FX forward contracts | -12,607 | 277 |
Gain / loss (-) on interest rate swap contracts | 2,756 | 3,170 |
Gain / loss (-) on commodity swap contracts | -1,104 | -8,561 |
\u00a0 | 6,023 | -5,848 |
Profit or loss related to derivatives used for cash flow hedging were recognized in other comprehensive income (Hedging reserve) as at 31 December 2024 and it will be recycled to profit or loss during the next financial years.
24. Capital and reserves
A. Share capital and share premium
The share capital of the Company amounts to EUR 141,894 thousand divided into 259,189,761 shares without nominal value. Holders of shares are entitled to one vote per share at the general meetings of the Company.
Share premium of the Company amounts to EUR 457,571 thousand.
B. Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.
C. Nature and purpose of other reserves
(a)\tStatutory reserve
Pursuant to the Belgian tax legislation, the companies are obliged, from their fiscal year profits, to form 5% as a legal reserve until it reaches 10% of their paid share capital. The distribution of the legal reserve is prohibited.
Pursuant to Greek company law, the companies are obliged to allocate each year at least 5% of its annual net profits to its statutory reserve, until this reserve equals at least 1/3 of the company\u2019s share capital. The distribution of the statutory reserve is prohibited but it can be used to offset losses.
(b) Hedging reserve
The effective portion of the cumulative net change in the fair value of hedging instruments used in cash flow hedges pending subsequent recognition in profit or loss as the hedged cash flows affect profit or loss.
(c)\tOther fair value reserve
The cumulative net change in the fair value of the equity securities until the assets are derecognized (and therefore transferred to retained earnings).
(d)\tTax exempt reserves
This category relates to reserves formed by the application of the provisions of certain tax laws and are exempt from income tax, provided that they are not distributed to the shareholders. In case these reserves are distributed, they will be taxed using the tax rate applying at such time.
(e)\tOther reserves
This category relates to reserves formed by the application of the provisions of certain developmental laws which were granting tax benefits to companies that invested their retained earnings rather than distribute them to the shareholders. More specifically, the aforementioned reserves include profits that have already been taxed or have been permanently exempted from income tax, after the lapse of a specified period beginning from the completion of the investments they concern.
D. Reconciliation of other reserves
Amounts in EUR thousands | Statutory reserves | Hedging reserves | Other Fair Value reserve | Tax exempt reserves | Other reserves | Total |
Balance as at 1 January 2024 | 60,924 | 9,243 | 846 | 283,593 | 89,129 | 443,735 |
Other comprehensive income | - | -2,941 | -233 | - | - | -3,174 |
Capitalization of reserves | 63 | - | - | - | - | 63 |
Reclassification | -1 | - | - | 2,785 | -2,784 | - |
Transfer of reserves and other movements | 8,166 | - | - | -4,722 | 2,753 | 6,197 |
Acquisition of NCI | 32 | -1 | - | 285 | 1 | 317 |
Change in ownership interests | -1,627 | -665 | - | -2,581 | -918 | -5,790 |
Balance as at 31 December 2024 | 67,557 | 5,635 | 613 | 279,360 | 88,183 | 441,349 |
Amounts in EUR thousands | Statutory reserves | Hedging reserves | Other Fair Value reserve | Tax exempt reserves | Other reserves | Total |
Balance as at 1 January 2023 | 50,671 | 26,853 | 997 | 282,235 | 87,542 | 448,298 |
Other comprehensive income | - | -17,610 | -151 | - | - | -17,761 |
Capitalization of reserves | 222 | - | - | - | - | 222 |
Transfer of reserves and other movements | 10,042 | - | - | 1,357 | 1,588 | 12,987 |
Loss of Control/Disposal of subsidiary | -12 | - | - | - | - | -12 |
Change in ownership interests | 1 | - | - | - | - | 1 |
Balance as at 31 December 2023 | 60,924 | 9,243 | 846 | 283,593 | 89,129 | 443,735 |
25. Capital management
Viohalco and its companies\u2019 policy consists in maintaining a strong capital structure, so as to keep the confidence of investors, creditors and the market and enable the future development of their activities. The Board of Directors monitors the return on capital which is defined as net results divided by total equity less non-controlling interests. The Board of Directors also monitors the level of dividends distributed to holders of ordinary shares.
The Board of Directors tries to maintain an equilibrium between higher returns that would be feasible through higher borrowing levels and the advantages and security offered by a strong and robust capital structure. In this context, the Board of Directors monitors, the Return on Capital Employed (ROCE) index, otherwise the Return on Invested Capital (ROIC) index, which is defined as adjusted Earnings before Interest and Tax (a-EBIT) divided by total adjusted Capital Employed, (i.e. equity and net debt). The Board of Directors seeks opportunities and examines feasibility to leverage Viohalco\u2019s companies with relatively high ROCE (in every case higher than the cost of debt) and deleverage companies that go through a relatively low ROCE performance period.
The dividend related to 2023 was paid in 2024, in accordance with the decision taken at the Ordinary General Meeting of Shareholders of May 28, 2024. The shareholders approved a gross dividend of EUR 0.12 per share, resulting in a total dividend of EUR 31,103 thousand.
26. Loans and borrowings
A. Overview
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Non-current liabilities | ||
Secured bank loans | 121,156 | 153,749 |
Unsecured bank loans | 113,576 | 138,706 |
Secured bond issues | 499,259 | 561,646 |
Unsecured bond issues | 580,682 | 588,037 |
Loans and borrowings \u2013 Long term | 1,314,673 | 1,442,138 |
Lease Liabilities \u2013 Long term | 40,358 | 35,382 |
Total Long-term debt | 1,355,031 | 1,477,520 |
Current liabilities | ||
Secured bank loans | 135,346 | 145,032 |
Unsecured bank loans | 488,917 | 403,126 |
Current portion of secured bank loans | 49,454 | 36,981 |
Current portion of unsecured bank loans | 26,084 | 20,098 |
Current portion of secured bond issues | 62,115 | 54,903 |
Current portion of unsecured bond issues | 81,545 | 119,157 |
Loans and borrowings \u2013 Short term | 843,462 | 779,297 |
Lease Liabilities \u2013 Short term | 11,086 | 11,237 |
Total Short term debt | 854,547 | 790,534 |
Total loans and borrowings | 2,209,578 | 2,268,054 |
Information about the Viohalco companies\u2019 exposure to interest rate, foreign currency and liquidity risk is included in Note 30.
The maturities of non-current loans are as follows:
Amounts in EUR thousands | 2024 | 2023 |
Between 1 and 2 years | 219,675 | 218,530 |
Between 2 and 5 years | 835,939 | 840,227 |
Over 5 years | 299,418 | 418,763 |
Total | 1,355,031 | 1,477,520 |
The effective weighted average interest rates of the main categories of loans and borrowings at the reporting date are as follows:
2024 | Carrying amount | Interest rate |
Bank loans (non-current)-EUR | 309,360 | 4.25% |
Bank loans (current)-EUR | 582,077 | 5.31% |
Bank loans (current)-USD | 4,816 | 8.13% |
Bank loans (current)-GBP | 31,018 | 8.42% |
Bond issues-EUR | 1,223,601 | 3.82% |
2023 | Carrying amount | Interest rate |
Bank loans (non-current)-EUR | 347,005 | 4.84% |
Bank loans (current)-EUR | 506,610 | 6.05% |
Bank loans (current)-USD | 11,224 | 7.54% |
Bank loans (current)-GBP | 24,353 | 8.11% |
Bond issues-EUR | 1,323,743 | 5.07% |
The majority of Viohalco companies\u2019 loans are Euro denominated.
During 2024, Viohalco subsidiaries obtained new bank loans amounting to EUR 356 million and repaid bank loans of EUR 417 million maturing within the year. The new loans were mainly bond loans and drawdowns from existing revolving credit facilities for project financing, or new loans with similar terms and conditions.
More specifically, during 2024 the main events relating to Viohalco companies\u2019 financing are the following:
Cables segment
Refinancing of two \u2018green\u2019 bond loans of total amount EUR 40 million received by Hellenic Cables & Fulgor in 2021 in compliance with ESG financial principles with an initial 2-year term, which were extended in December 2023. The new financing agreement concerns the same amount, i.e. EUR 40 million and provides for a 2-year term started during the first half of 2024. This financing agreement support working capital needs for the design, production, installation and operation of submarine and land cable systems in projects related to energy transmission from renewable energy sources and the electrical interconnection of islands;
A 5-year loan facility received by Hellenic Cables from a major Greek bank of EUR 70.6 million, out of which an amount of EUR 42.4 million was drawn during H1 2024. This loan facility finances the investment program of Hellenic Cables including new production lines and new equipment in Thiva plant and investments in the Eleonas plant;
A 3-year bond loan of EUR 20.2 million from a major Greek bank, which was drawn in full in September 2024 by Fulgor. The main purpose of this bond loan was to finance the acquisition of machinery, mainly for new products development
Steel Pipes segment
A 5-year bond loan of EUR 15.0 million from a major Greek bank, which was drawn in full in September 2024 by Corinth Pipeworks. The main purpose of this bond loan was to refinance three bond loans of EUR 12.3 million in aggregate, as well as for general business needs.
No other significant events, related with the financing of subsidiaries occurred during the period.
Short term facilities are predominately revolving credit facilities and factoring with recourse for funding working capital needs and project financing facilities for specific ongoing projects. Viohalco subsidiaries have never in the past experienced any issues in financing their activities, renewing their working capital lines or refinancing long-term loans. Management expects that any mandatory repayments of banking loans will be made from operating cash flows or from other unutilized committed credit facilities.
Under the terms of the loan agreements, certain Viohalco subsidiaries must comply with conditions (including financial covenants) and such compliance is tested on an annual basis for the majority of the loans. Management has considered the measures that need to be taken to mitigate the risk relating to potential breaches and expects that in the event that these covenants are breached, waivers will be granted, which have been provided in the past when requested.
The average interest rate of the outstanding bank loans as at 31 December 2024 was 4.4% (5.3% as at 31 December 2023).
Property, plant and equipment and inventories of some subsidiaries carry mortgages and liens for a total amount of EUR 1.624 million, as collaterals for long term loans and syndicated loans. In addition, for certain Viohalco companies\u2019 loans, there are change of control clauses that provide lenders early redemption rights. The majority of Viohalco companies\u2019 loans are Euro denominated.
B. Reconciliation of movements of liabilities to cash flows from financing activities
Amounts in EUR thousands | Loans and Borrowings | Leases | Total |
Balance at 1 January 2024 | 2,221,434 | 46,620 | 2,268,054 |
Changes from financing cash flows | |||
Proceeds from loans and borrowings | 355,776 | - | 355,776 |
Repayment of borrowings & lease liabilities | -416,996 | -12,439 | -429,434 |
Total changes from financing cash flows | -61,220 | -12,439 | -73,659 |
Other changes | |||
New leases | - | 18,397 | 18,397 |
Interest expense | 122,136 | 2,449 | 124,586 |
Interest paid* | -124,905 | -2,449 | -127,353 |
Capitalised borrowing costs | 6,014 | - | 6,014 |
Terminations/Modifications | -7,482 | -1,153 | -8,635 |
Effect of changes in foreign exchange rate | 2,156 | 18 | 2,175 |
Total other changes | -2,080 | 17,262 | 15,183 |
Balance at 31 December 2024 | 2,158,135 | 51,444 | 2,209,579 |
Amounts in EUR thousands | Loans and Borrowings | Leases | Total |
Balance at 1 January 2023 | 2,429,465 | 40,380 | 2,469,845 |
Changes from financing cash flows | |||
Proceeds from loans and borrowings | 288,764 | - | 288,764 |
Repayment of borrowings & lease liabilities | -507,858 | -14,441 | -522,300 |
Total changes from financing cash flows | -219,095 | -14,441 | -233,536 |
Other changes | |||
New leases | - | 22,687 | 22,687 |
Interest expense | 137,498 | 2,095 | 139,593 |
Interest paid* | -132,223 | -2,030 | -134,253 |
Capitalised borrowing costs | 4,440 | - | 4,440 |
Terminations/Modifications | 1 | -1,228 | -1,227 |
Loss of Control/Disposal of subsidiary | - | -843 | -843 |
Effect of changes in foreign exchange rate | 1,348 | 2 | 1,350 |
Total other changes | 11,064 | 20,681 | 31,745 |
Balance at 31 December 2023 | 2,221,434 | 46,620 | 2,268,054 |
*Interest paid reported in Cash Flow Statement, includes bank charges and other finance costs.
27. Trade and other payables
Amounts in EUR thousands | Note | 2024 | 2023 |
Suppliers | 872,329 | 745,347 | |
Notes payable | 422,443 | 272,883 | |
Social security funds | 11 | 16,243 | 15,774 |
Amounts due to related parties | 37 | 4,289 | 4,592 |
Sundry creditors | 25,351 | 19,248 | |
Accrued expenses | 161,245 | 110,481 | |
Taxes-duties | 34,543 | 42,263 | |
Total | 1,536,443 | 1,210,588 | |
Non-current balance of trade and other payables | 26,712 | 15,896 | |
Current balance of trade and other payables | 1,509,732 | 1,194,692 | |
Balance as at 31 December | 1,536,443 | 1,210,588 |
\u2018Notes payables\u2019 in the table above concerns structured payable arrangements related to purchases of primary raw materials, such as copper, steel etc. Supplier finance arrangements are characterised by one or more finance providers offering to pay amounts that an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, when suppliers are paid. These arrangements provide the entity with extended payment terms, or the entity\u2019s suppliers with early payment terms, compared to the related invoice payment due date. Viohalco companies have entered into supplier finance arrangements with finance providers; under such arrangements, the finance providers acquire the rights to selected trade receivables from the suppliers, while the terms and conditions of the arrangement are unchanged from the trade payables from this supplier, other than the due date has been extended and the acquired payables are no longer able to be offset against credit notes received from the suppliers.
Range of payment due dates | 2024 |
Liabilities under supplier finance arrangement | 90-270 days |
Comparable trade payables that are not part of the supplier finance arrangement (same line of business) | 0-120 days |
Amounts in EUR thousand | |
Carrying amount of liabilities under supplier finance arrangement | |
Liabilities under supplier finance arrangement | 422,069 |
of which the supplier has received payment from the finance provider | 421,064 |
28. Grants
\u00a0 | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Balance as at 1 January | 28,884 | 32,454 | |
New grants received during the year | 450 | 55 | |
Transfer of grants to results | -12 | - | |
Amortisation of grants | 8 | -2,681 | -2,598 |
Other movements | -40 | -1,027 | |
Balance as at 31 December | \u00a0 | 26,600 | 28,884 |
Government grants have been received for investments in property, plant and equipment.
All conditions attached to the grants received by Viohalco\u2019s companies were met as at 31 December 2024.
29. Provisions
Non-current | |||
Amounts in EUR thousands | Pending court rulings | Other provisions | Total |
Balance as at 1 January 2024 | 92 | 1,630 | 1,722 |
Additional provisions of the fiscal year | 8 | - | 8 |
Provisions reversed | -92 | -54 | -146 |
Provisions used | - | -150 | -150 |
Balance as at 31 December 2024 | 8 | 1,426 | 1,434 |
Amounts in EUR thousands | Pending court rulings | Other provisions | Total |
Balance as at 1 January 2023 | 69 | 1,658 | 1,727 |
Additional provisions of the fiscal year | 23 | - | 23 |
Provisions reversed | - | -29 | -29 |
Balance as at 31 December 2023 | 92 | 1,630 | 1,722 |
Current | |||
Amounts in EUR thousands | Pending court rulings | Other provisions | Total |
Balance as at 1 January 2024 | 18,111 | 182 | 18,293 |
Foreign exchange differences | 1,163 | - | 1,163 |
Additional provisions of the fiscal year | 1,458 | 36 | 1,493 |
Provisions reversed | - | -20 | -20 |
Provisions used | -114 | - | -114 |
Balance as at 31 December 2024 | 20,617 | 198 | 20,815 |
Amounts in EUR thousands | Pending court rulings | Other provisions | Total |
Balance as at 1 January 2023 | 15,243 | 162 | 15,405 |
Foreign exchange differences | -518 | - | -518 |
Additional provisions of the fiscal year | 3,481 | - | 3,481 |
Provisions reversed | - | -36 | -36 |
Provisions used | -94 | 56 | -39 |
Balance as at 31 December 2023 | 18,111 | 182 | 18,293 |
During 2022, the US Department of Commerce (DoC) published its final results in the administrative proceedings conducted by the DoC for the period from 19 April 2019 through 30 April 2020 (\u201cPOR\u201d) in connection with an antidumping (\u201cAD\u201d) order on large diameter welded pipe (LDWP) from Greece. As a result, the DoC determined for the POR an antidumping duty rate of 41.04% based on total adverse facts available (AFA) for mandatory respondent Corinth Pipeworks S.A., Cenergy Holdings\u2019 steel pipes segment. Corinth Pipeworks filed an appeal before the U.S. Court of International Trade against the decision of the DoC while continuing to actively work with the DoC in order to reverse the final determination. The one-off charge related to the above-mentioned case amounted to EUR 12.8 million (USD 14 million plus interest) for the year 2021. \u03a4he charges for 2023 and 2024 relate to interest charged on the outstanding amount for the year and is included in the line \u2018Finance costs\u2019.
30. Financial instruments
A. Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including the levels in the fair value hierarchy.
31 December 2024 | |||||
Amounts in EUR thousands | Carrying amount | First Level | Second Level | Third Level | Total |
Other investments | 38,966 | 3,214 | 2 | 35,751 | 38,966 |
Derivative financial assets | 16,390 | 4,429 | 11,961 | - | 16,390 |
\u00a0 | 55,356 | 7,642 | 11,963 | 35,751 | 55,356 |
Derivative financial liabilities | -8,919 | -2,258 | -6,662 | - | -8,919 |
\u00a0 | 46,437 | 5,385 | 5,302 | 35,751 | 46,437 |
31 December 2023 | |||||
Amounts in EUR thousands | Carrying amount | First Level | Second Level | Third Level | Total |
Other investments | 33,686 | 5,617 | 2 | 28,067 | 33,686 |
Derivative financial assets | 28,909 | 5,086 | 22,709 | 1,115 | 28,909 |
\u00a0 | 62,595 | 10,703 | 22,711 | 29,181 | 62,595 |
Derivative financial liabilities | -9,130 | -317 | -8,813 | - | -9,130 |
\u00a0 | 53,465 | 10,386 | 13,898 | 29,181 | 53,465 |
The various levels are as follows:
Level 1: Quoted prices (unadjusted) in an active market for identical assets and liabilities;
Level 2: Inputs that are observable either directly or indirectly;
Level 3: Unobservable inputs for assets and liabilities.
The fair value of the following financial assets and liabilities measured at amortised cost approximate their carrying amount:
Trade and other receivables;
Cash and cash equivalents;
Trade and other payables;
Loans and borrowings;
Lease liabilities.
Specifically, the carrying amount of loans and borrowings is considered as a good approximation of their fair value as 75% of consolidated Loans and borrowings concern floating-rate debt, which are a very good approximation of current market rates.
The following table shows reconciliation between opening and closing balances for Level 3 financial assets:
Amounts in EUR thousands | |
Balance as at 1 January 2024 | 28,067 |
Additions | 277 |
Disposals | -55 |
Fair value through PnL | 7,462 |
Balance as at 31 December 2024 | 35,751 |
Balance as at 1 January 2023 | 4,806 |
Additions | 26,922 |
Fair value through PnL | -3,642 |
Impairment loss (-)/ Reversal of impairment loss | -20 |
Balance as at 31 December 2023 | 28,067 |
\u0392. Measurement of fair values
(a) Valuation techniques and significant unobservable inputs
The fair values of financial assets that are traded in active markets (stock markets e.g. derivatives, shares, bonds, mutual funds) are set according to the published prices that are valid on the reporting date.
The fair values of financial assets that are not traded in active markets are set through the use of valuation techniques and standards that are based on market data on the reporting date.
The fair values of financial liabilities, for the purpose of being recorded in financial statements, are estimated based on the present value of the future cash flows that arise from specific contracts using the current interest rate that is available for Viohalco and its companies for the use of similar financial-credit means.
Inputs that do not meet the respective criteria and cannot be classified in Level 1 but are observable, either directly or indirectly, fall under Level 2. Over-the-counter derivative financial instruments based on prices obtained from brokers are classified in this level.
The financial assets, such as unlisted shares that are not traded in an active market whose measurement is based on the Viohalco\u2019s companies\u2019 forecasts for the issuer\u2019s future profitability are classified under Level 3.
The following table shows the valuation techniques used in measuring fair values, as well as the significant unobservable inputs used:
Type | Valuation technique | Significant unobservable inputs | Inter-relationship between key unobservable inputs and fair value measurement |
Derivatives | Market value: Price as traded in active market Market comparison technique: The fair values are based on broker quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions in similar instruments | Not applicable Broker quotes | Not applicable Not applicable |
Equity securities traded in active markets | Market value: Price as traded in active market | Not applicable | Not applicable |
Equity securities not traded in active markets | Discounted cash flows: The fair value of shares not traded in active markets is derived based on the estimates of Viohalco and its subsidiaries for the future profitability of the issuer, taking into account the expected growth rate of operations and estimated discount rates. | -\u00a0\u00a0 Risk-free rate: 2.49% (EUR), 4.57% (GBP)- Equity risk premium: 3.94% -\u00a0 Expected tax expense rate: Depending on the country of incorporation of the investee. - WACC for the most significant investment: 7-10% | The estimated fair value would increase (decrease) if: \u2022 the estimated risk-free rate, market risk premium and WACC were lower (higher) \u2022 the estimated cash flows were higher (lower) \u2022 the expected income tax rate was lower (higher) |
(b) Transfers between Levels 1 and 2
There were no transfers from Level 2 to Level 1 or from Level 1 to Level 2 in 2024 or in 2023.
C. Financial risk management
Viohalco and its companies are exposed to credit, liquidity and market risk due to the use of financial instruments. This Note sets forth information on their exposure to each one of the above risks, the policies and procedures applied to risk measurement. More quantitative particulars on these disclosures are included throughout of the Consolidated Financial Statements.
The risk management policies are applied to identify and analyze the risks facing Viohalco and its companies, set risk-taking limits and apply relevant control systems.Risk management procedures are reviewed regularly and changes are implemented if the need arise.
The implementation of risk management policies and procedures is monitored by the Internal Audit function, which performs ordinary and extraordinary audits relating to the implementation of procedures, whereas the results of such audits are notified to the Board of Directors.
C.1. Credit risk
Credit risk is the risk of the financial loss to Viohalco and its companies, if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the companies\u2019 receivables from customers, contract assets and bank deposits.
The carrying amount of financial assets represents the maximum credit exposure.
Amounts in EUR thousands | Note | 2024 | 2023 |
Trade & other receivables | 15 | 611,283 | 748,668 |
Contract assets | 7 | 256,322 | 236,552 |
Less: | |||
Other down payments | 15 | -10,964 | -12,058 |
Tax assets | 15 | -62,951 | -45,947 |
Other non-financial assets | -50,072 | -101,442 | |
743,619 | 825,773 | ||
Other investments | 21 | 38,966 | 33,686 |
Cash and cash equivalents | 16 | 696,720 | 395,015 |
Derivatives | 23 | 16,390 | 28,909 |
752,076 | 457,610 | ||
Total | 1,495,695 | 1,283,383 |
(a)\tTrade and other receivables
Viohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured.
When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.
Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables.
At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:
\u00a0 | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 294,046 | 301,265 |
Other EU member states | 254,604 | 255,645 |
Other European countries | 73,071 | 68,131 |
Asia | 37,798 | 42,842 |
America | 63,648 | 142,651 |
Africa | 19,897 | 14,290 |
Oceania | 554 | 949 |
Total | 743,619 | 825,773 |
The ageing of trade and other receivables and contract assets that were not impaired was as follows:
Amounts in EUR thousands | 2024 | 2023 |
Neither past due nor impaired | 630,207 | 706,092 |
Overdue | \u00a0 | |
- Up to 6 months | 94,339 | 100,175 |
- Over 6 months | 19,073 | 19,506 |
Total | 743,619 | 825,773 |
Based on management assessment,the amounts that are past due up to 6 months and over 6 months are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.
Viohalco companies insure a significant portion of their receivables and at 31 December 2024, 71% of the receivables balances were credit insured.
The movement in impairment of trade and other receivables and contract assets is as follows:
Amounts in EUR thousands | 2024 | 2023 | ||||
Trade & other receivables | Contract assets | Total | Trade & other receivables | Contract assets | Total | |
Balance as at 1 January | 71,009 | 248 | 71,256 | 69,212 | 203 | 69,414 |
Impairment loss recognized | 8,982 | - | 8,982 | 8,954 | 68 | 9,022 |
Amounts written off | -3,137 | - | -3,137 | -6,164 | - | -6,164 |
Impairment loss reversed | -1,290 | -38 | -1,327 | -214 | -23 | -237 |
Foreign exchange differences | 1,391 | - | 1,391 | -764 | -\u00a0 | -764 |
Reclassification | -28 | - | -28 | -16 | \u00a0- | -16 |
Balance as at 31 December | 76,928 | 210 | 77,137 | 71,009 | 248 | 71,256 |
The allowance for expected credit losses for trade receivables and contract assets are calculated at individual level when there is an indication of impairment. For receivables and contract assets without any indication of impairment the expected credit losses are based on the historical data combined with forward-looking macroeconomic factors affecting credit risk, such as country risk and industry related risks. Expected loss rates are updated at every reporting date. The rising inflation and interest rates were also taken into consideration when calculating expected credit losses for the current year, without any significant impact on the impairment loss recognized.
In 2024, the impairment loss recognized concerned mainly copper segment while amounts that have been impaired mainly in other segment were written off. On the contrary, a reversal of impairment loss was recorded, as a result of the improvement of the expected loss rates of major clients in the aluminium and cables segments.
The following collateral exists for securing non-insured receivables from customers and contract assets:
\u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amounts in EUR thousands | \u00a0 | 2024 | 2023 |
Cash collateral | 181 | 530 | |
Letter of credit | 17,179 | 18,302 | |
Collateral on property | 1,850 | 1,850 | |
Payables which can be offset by receivables | 6,292 | 5,832 | |
Other | 2,262 | 2,987 | |
Total | \u00a0 | 27,763 | 29,501 |
(b)\tCash and cash equivalents
Viohalco and its subsidiaries held cash and cash equivalents of EUR 697 million at 31 December 2024 (2023: EUR 395 million). The cash and cash equivalents are held with banks and financial institutions, which are rated from A3 to Ba3 based on Moody\u2019s scale.
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. Viohalco considers that its cash and cash equivalents have low credit risk based on the credit assessment performed.
C.2. Liquidity risk
Liquidity risk is the risk that Viohalco companies will encounter difficulties in meeting their fianancial obligations in a timely manner. To manage liquidity risk they ensure, that sufficient liquidity is available, to meet their liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to their reputation.
Viohalco companies maintain sufficient undrawn credit limits to meet all their scheduled financial obligations as well as most unexpected ones.
Exposure to liquidity risk
Financial liabilities and derivatives based on contractual maturity are broken down as follows:
2024 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 934,534 | 721,491 | 52,896 | 147,134 | 57,918 | 979,440 |
Bond issues | 1,223,601 | 190,655 | 207,540 | 763,607 | 240,061 | 1,401,863 |
Lease liabilities | 51,444 | 12,707 | 10,513 | 16,699 | 16,615 | 56,534 |
Derivatives | 8,919 | 8,469 | 450 | - | - | 8,919 |
Contract liabilities | 226,488 | 227,970 | 25 | 42 | - | 228,036 |
Trade and other payables | 1,536,443 | 1,527,239 | 15,660 | 7,404 | 1,133 | 1,551,437 |
\u00a0 | 3,981,430 | 2,688,532 | 287,085 | 934,886 | 315,727 | 4,226,229 |
2023 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 897,692 | 628,960 | 87,334 | 165,785 | 90,609 | 972,687 |
Bond issues | 1,323,743 | 218,947 | 210,014 | 770,075 | 355,183 | 1,554,219 |
Lease liabilities | 46,620 | 13,065 | 10,125 | 15,386 | 21,923 | 60,498 |
Derivatives | 9,130 | 4,107 | 4,642 | 381 | - | 9,130 |
Contract liabilities | 281,387 | 282,022 | 39 | - | - | 282,060 |
Trade and other payables | 1,152,551 | 1,160,562 | 4,961 | 6,404 | 1,133 | 1,173,060 |
\u00a0 | 3,711,123 | 2,307,663 | 317,114 | 958,031 | 468,847 | 4,051,655 |
Viohalco companies\u2019 loans are subject to termination clauses based on financial ratios, such as \u2019Total liabilities / Total equity\u2018, \u2019Net debt / Total sales\u2018 and \u2019Current assets / Current liabilities\u2018, that need to be maintained above or below certain predetermined levels. These ratios are monitored regularly in order to avoid breaches that may lead to loans becoming due before contractual maturity, causing liquidity pressures.
C.3. Market risk
Market risk is the risk that changes in market prices \u2013 such as commodity prices, foreign exchange rates and interest rates - will affect Viohalco and its companies income or the value of their financial instruments. Viohalco\u2019s companies use derivatives to manage market risk.
Generally, Viohalco companies apply hedge accounting to manage volatility in their returns (P&L) .
(a) Currency risk:
Viohalco and its companies are exposed to currency risk in relation to the sales and purchases carried out and the loans issued in a currency other than the functional currency of Viohalco and its companies, which is mainly EUR. The most important currencies in which these transactions are held are EUR, USD and GBP.
Over time, Viohalco\u2019s companies hedge the greatest part of their exposure to foreign currencies. Viohalco\u2019s companies enter mainly into forward contracts with external counterparties so as to deal with currency risk. These contracts mainly expire within the next 12 months from the reporting date. If necessary, such contracts are renewed upon expiry.
FX risk may also be covered \u201cnaturally\u201d by taking out loans in the respective currencies if loan interest is denominated in the same currency as that of cash flows coming from operating activities.
The capital investments of Viohalco companies are not hedgedas they have been made mainly in Euro.
The summary quantitative data about Viohalco and its companies\u2019 exposure to currency risk as reported is as follows.
2024 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 100,710 | 23,957 | 20,156 | 2,766 | 20,491 | 1,565 | 169,644 | 441,639 | 611,283 |
Contract assets | 5,755 | - | - | - | - | - | 5,755 | 250,567 | 256,322 |
Loans and borrowings | -6,856 | -32,334 | -4,025 | -1,019 | -4,034 | -1,019 | -49,287 | -2,160,291 | -2,209,578 |
Trade and other payables | -121,630 | -17,209 | -63,231 | -610 | -25,382 | -2,262 | -230,324 | -1,306,120 | -1,536,443 |
Contract Iiabilities | -27,780 | -1,439 | -686 | - | -55 | - | -29,960 | -196,528 | -226,488 |
Cash & cash equivalents | 100,074 | 8,170 | 7,194 | 302 | 4,828 | 1,262 | 121,829 | 574,891 | 696,720 |
\u00a0 | 50,273 | -18,856 | -40,593 | 1,439 | -4,152 | -454 | -12,343 | -2,395,843 | -2,408,185 |
Derivatives for risk hedging (Nominal Value) | -31,384 | -28,066 | - | - | - | - | -59,450 | 20,650 | -38,800 |
Exposure | 18,890 | -46,922 | -40,593 | 1,439 | -4,152 | -454 | -71,793 | -2,375,193 | -2,446,985 |
2023 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 175,686 | 15,369 | 18,888 | 1,534 | 27,363 | 6,609 | 245,448 | 503,220 | 748,668 |
Contract assets | 42,159 | - | 4 | - | - | - | 42,163 | 194,389 | 236,552 |
Loans and borrowings | -14,032 | -26,976 | -4,527 | -31 | -4,909 | -233 | -50,707 | -2,217,346 | -2,268,054 |
Trade and other payables | -129,008 | -13,631 | -47,226 | -507 | -25,364 | -3,174 | -218,910 | -991,679 | -1,210,588 |
Contract Iiabilities | -135,607 | - | -1,168 | - | -77 | - | -136,852 | -144,535 | -281,387 |
Cash & cash equivalents | 42,519 | 2,346 | 5,397 | 151 | 2,523 | 1,673 | 54,609 | 340,406 | 395,015 |
\u00a0 | -18,282 | -22,891 | -28,632 | 1,146 | -463 | 4,874 | -64,249 | -2,315,546 | -2,379,795 |
Derivatives for risk hedging (Nominal Value) | 214,110 | 1,036 | -\u00a0 | -\u00a0 | -\u00a0 | -\u00a0 | 215,146 | - | 215,146 |
Exposure | 195,828 | -21,855 | -28,632 | 1,146 | -463 | 4,874 | 150,898 | -2,315,546 | -2,164,648 |
\u201cDerivatives for risk hedging\u201d includes also derivatives that relate to highly probable transactions, which have not been yet recognized as assets or liabilities in the consolidated statement of financial position. Euro denominated amounts are included for totals\u2019 reconciliation purposes.
The following exchange rates have been applied during the year.
Average exchange rate | Year end spot rate | |||
2024 | 2023 | 2024 | 2023 | |
USD | 1.08 | 1.08 | 1.04 | 1.11 |
GBP | 0.85 | 0.87 | 0.83 | 0.87 |
BGN | 1.96 | 1.96 | 1.96 | 1.96 |
RSD | 117.09 | 117.25 | 117.01 | 117.17 |
RO\u039d | 4.97 | 4.95 | 4.97 | 4.97 |
Viohalco is primarily exposed to changes of Euro against US dollar, pound sterling, Serbian Dinar and RON. A reasonably possible strengthening (weakening) of Euro against these currencies as at 31 December would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The Bulgarian currency LEV is not analysed below due to its fixed currency rate at 1.96 BGN/EUR.
Profit or loss | Equity, net of tax | |||
Amounts in EUR thousands | EUR Strengthening | EUR Weakening | EUR Strengthening | EUR Weakening |
2024 | ||||
USD (10% movement) | 4,006 | -4,006 | 6,454 | -6,454 |
GBP (10% movement) | 5,844 | -5,844 | 8,033 | -8,033 |
RSD (10% movement) | -112 | 112 | -112 | 112 |
RON (10% movement) | 324 | -324 | 324 | -324 |
2023 | ||||
USD (10% movement) | -14,404 | 14,404 | -31,105 | 31,105 |
GBP (10% movement) | 2,227 | -2,227 | 2,147 | -2,147 |
RSD (10% movement) | -89 | 89 | -89 | 89 |
RON (10% movement) | 36 | -36 | 36 | -36 |
(b) Interest rate risk:
Viohalco Subsidiaries have adopted a flexible policy of ensuring that a portion of their Medium and LT debt obligations are on a fixed rate basis. This is achieved through a combination of issuing medium term, fixed rate bond loans and using interest rate swaps to hedge a portion of their floating rate medium and LT loans. The interest rate profile of Viohalco companies\u2019 interest-bearing financial instruments, as reported is as follows.
Nominal amount | ||
Amounts in EUR thousands | 2024 | 2023 |
Fixed-rate instruments | ||
Financial liabilities | 552,874 | 548,973 |
Variable-rate instruments | ||
Financial liabilities | 1,656,704 | 1,719,081 |
Interest rate swaps (nominal value) | -215,293 | -249,721 |
1,441,411 | 1,469,360 |
Fixed-rate instruments
Viohalco does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Viohalco currently uses derivatives (interest rate swaps) as hedging instruments under a cash flow hedge accounting model.
Sensitivity analysis for variable-rate instruments
A reasonably possible change of 0.25% in interest rates of variable-rate instruments at the reporting date would have increased/ decreased (-) profit or loss by the amount shown below. This analysis assumes that all other variables, in particular foreign currency exchange rate, remain constant.
Variable rate | Profit or loss | |
Amounts in EUR thousands | 0.25% increase | 0.25% decrease |
2024 | ||
Financial liabilities | 8,086 | -8,086 |
Cash flow sensitivity (net) | 8,086 | -8,086 |
2023 | ||
Financial liabilities | 3,700 | -3,700 |
Cash flow sensitivity (net) | 3,700 | -3,700 |
(c) Cash flow hedges
The following table indicates the periods in which the cash flows associated with cash flow hedges are expected to occur:
Amounts in EUR thousands | Carrying amount at 31 December 2024 | 1-6 months | 6-12 months | More than 1 year | 31 December 2024 |
2024 | |||||
Interest rate Swaps | |||||
Assets | 6,209 | 1,330 | 831 | 4,048 | 6,209 |
Liabilities | 450 | - | - | 450 | 450 |
Forwards | |||||
Assets | 1,118 | 1,118 | - | - | 1,118 |
Liabilities | 4,156 | 3,047 | 1,109 | - | 4,156 |
Future contracts | |||||
Assets | 4,177 | 3,542 | 635 | - | 4,177 |
Liabilities | 2,001 | 1,840 | 161 | - | 2,001 |
Commodity Swaps | |||||
Assets | 2,757 | 1,884 | 374 | 499 | 2,757 |
Liabilities | - | - | - | - | - |
\u00a0 | 20,868 | 12,760 | 3,110 | 4,997 | 20,868 |
Amounts in EUR thousands | Carrying amount at 31 December 2023 | 1-6 months | 6-12 months | More than 1 year | 31 December 2023 |
2023 | |||||
Interest rate Swaps | |||||
Assets | 10,032 | 2,730 | 1,680 | 5,622 | 10,032 |
Liabilities | 1,425 | - | - | 1,425 | 1,425 |
Forwards | |||||
Assets | 7,793 | 6,307 | 1,475 | 11 | 7,793 |
Liabilities | 740 | 713 | 27 | - | 740 |
Electricity Swaps | |||||
Assets | 1,115 | - | - | 1,115 | 1,115 |
Liabilities | - | - | - | - | - |
Future contracts | |||||
Assets | 4,749 | 3,943 | 680 | 125 | 4,749 |
Liabilities | 317 | 316 | - | 1 | 317 |
Commodity Swaps | |||||
Assets | 2,027 | 205 | 1,092 | 730 | 2,027 |
Liabilities | 6,594 | 1,564 | 1,490 | 3,540 | 6,594 |
\u00a0 | 34,792 | 15,779 | 6,444 | 12,570 | 34,792 |
The table below provides information about the items designated as cash flow hedging instruments during the year and also as at 31 December 2024 and the reconciliation of hedging reserve. Based on their nature, hedging instruments are included in Derivatives assets and Derivatives liabilities in consolidated statement of financial position.
2024 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2024 | Changes in the value of the hedging instrument recognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rates | Other move-ments | Balance 31 December 2024 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 83,558 | 1,118 | -4,156 | 7,053 | -6,454 | -903 | -2,733 | - | - | -3,038 |
Future contracts | 191,191 | 4,177 | -2,001 | 4,432 | 2,914 | -4,316 | -844 | -9 | - | 2,176 |
Interest rate swap contracts | 348,670 | 6,209 | -450 | 8,607 | -468 | -2,380 | - | - | - | 5,759 |
Electricity swap | - | - | - | 1,115 | -1,115 | - | - | - | - | - |
Commodity swap contracts | 28,302 | 2,757 | - | -4,568 | 5,787 | 1,587 | -50 | - | - | 2,757 |
651,720 | 14,261 | -6,607 | 16,640 | 664 | -6,012 | -3,627 | -9 | - | 7,654 | |
2023 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2023 | Changes in the value of the hedging instrument rec-ognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rate | Other move-ments | Balance 31 December 2023 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 272,105 | 7,793 | -740 | 3,161 | 5,006 | -1,437 | 806 | -2 | -481 | 7,053 |
Future contracts | 170,102 | 4,749 | -317 | -5,706 | 4,339 | 2,126 | 214 | 1 | 3,458 | 4,432 |
Interest rate swap contracts | 178,700 | 10,032 | -1,425 | 17,524 | -5,754 | -3,162 | - | - | - | 8,607 |
Electricity swap | - | 1,115 | - | - | 1,115 | - | - | - | - | 1,115 |
Commodity swap contracts | 26,905 | 2,026 | -6,594 | 27,289 | -21,379 | -7,020 | - | - | -3,458 | -4,568 |
647,812 | 25,716 | -9,076 | 42,268 | -16,673 | -9,493 | 1,020 | -1 | -481 | 16,640 |
(d) Commodity price risk
The commodity markets experience continuous price fluctuations. Viohalco companies minimize their exposure to commodity price volatility by using hedging instruments, when possible.
Viohalco companies are exposed to the fluctuation of aluminium, copper, zinc, lead and nickel. In order to minimize the effect of the metal price fluctuations on their results, companies use back to back matching of purchases and sales or derivative instruments (future contracts).
As at 31 December 2024, the derivative net balance of future contracts per commodity as reported in the statement of financial position is:
Amounts in EUR thousands | 2024 | 2023 |
Aluminium | 2,016 | 3,496 |
Copper | 630 | 1,305 |
Lead | -470 | -366 |
Total | 2,176 | 4,435 |
In addition, Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions. As at 31 December 2024, the derivative net liability these contracts as reported in the statement of financial position is EUR 2.8 million.
(e) Energy price risk
Viohalco is exposed to risks arising from fluctuating energy prices. Within 2023, Viohalco companies signed a long-term Power Purchase Agreement (PPA), backed by various assets from Renewable Energy Sources (\u201cRES assets\u201d), in order to reduce its exposure to volatility in the energy prices.
Based on the initial agreement, the PPA provided for two distinct arrangements, comprising a physical delivery of electricity during the first two years (Period A), with a financial settlement of the difference between the fixed agreement price and the market electricity price, and for a virtual delivery of renewable electricity subsequently and to the end of the agreement (Period B), as produced by specified RES assets (i.e. photovoltaic facilities) yet to be constructed, with a financial settlement of the difference between the fixed agreement price for this subsequent period and the market electricity price. Period A of the PPA was assessed in accordance with IFRS 9 as an own-use agreement and was accounted for as an executory contract, while Period B of the initial PPA was assessed as comprising a derivative financial instrument, which was accounted for at fair value through profit or loss other comprehensive income.
In August 2024, an addendum to the initial contract was signed, altering effective from 15.03.2024, altering mainly the nature of the contract for Period B as well as the duration and the pricing for both period A and B. More Specifically, the delivery method in period B has been changed from virtual to physical delivery via injection and absorption declarations in the Day-Ahead Market, through an intermediary supplier, resulting in a physical delivery contract performed on similar terms as the existing one in period A.
C.4 Risks Related to Climate change
Viohalco companies recognize the importance of transparency regarding climate-related risks and opportunities to maintain trust of stakeholders and allow investors to better understand the potential impact transition and physical risks and opportunities emanating from climate change. To that end, Viohalco has pledged to assess the potential severity of the risks and the possible benefits of the opportunities with the aim to take all necessary measures to mitigate negative impacts and maximize the positive ones, and to adopt the Task Force on Climate-related Financial Disclosures (TCFD) framework to transparently communicate all climate-related risks and opportunities. For this purpose, Viohalco subsidiaries performed an assessment of climate-related risks and opportunities that covered all industrial and real estate assets. The detailed results of this assessment are reported at segmental level in the Non-Financial Disclosure, accompanying the Annual Report.
Moving to a low-carbon economy requires certain measures to be considered and implemented. Through the analysis, for each business segment, the most material climate related transition and physical risks and opportunities over the short, medium and long-term, have been identified. The transition risks assessed relate to policy, legal, technology and market changes to address climate change mitigation and adaptation. Policy actions around climate change continue to evolve, technological improvements or innovations that support the transition to a lower-carbon and energy efficient economic system can have a significant impact on organizations, while significant changes in market such as decrease in demand for specific goods or services or decreased revenues related to changes in customer behavior are some examples of the implications that can impact the operating model and the financial planning of Viohalco subsidiaries. On the other hand, extreme weather events and longer-term shifts in climate patterns such as limited water availability and extreme heat or sea level rise may have multiple impacts and possible financial implications for Viohalco companies.
The abovementioned risks and opportunities have been identified and classified on a scale of low, medium, and high, based on the actual and potential impacts on the Viohalco companies\u2019 business model, assets and operations, as well as financial impacts on the business performance. The financial impacts have being considered to the accounting estimates to the extent that they can be currently evaluated. Moreover, challenges associated with climate related commitments have been considered, and Viohalco companies have not identified any additional issues that may have a material effect on their financial statements.
C.5. Business and Operational Risk Management
Viohalco subsidiaries follow closely and on a continuous basis the developments in the international and domestic environment and timely adapt their business strategy and risk management policies to minimize the impact of the macroeconomic conditions on their operations.
31. Subsidiaries
Viohalco\u2019s subsidiaries and the percentages of financial interest held by the parent company at the end of the reporting period are as follows:
Subsidiary companies | Country | Financial interest 2024 | Financial interest 2023 |
AEIFOROS S.A. | GREECE | 98.11% | 98.11% |
AEIFOROS BULGARIA S.A. | BULGARIA | 98.11% | 98.11% |
ALURAME SPA | ITALY | 89.88% | 91.59% |
ANOXAL S.A. | GREECE | 84.78% | 84.78% |
A\u039d\u0391\u039c\u0395\u03a4 DOO | SERBIA | 97.54% | 97.54% |
A\u039d\u0391\u039c\u0395\u03a4 S.A. | GREECE | 97.54% | 97.54% |
A\u039d\u03a4\u0399\u039c\u0395\u03a4 S.A. | GREECE | 100.00% | 100.00% |
A\u03a4\u03a4\u0399\u039aI S.A. | GREECE | 75.00% | 75.00% |
BASE METALS S.A. | TURKEY | 67.86% | 69.15% |
BRIDGNORTH LTD | U.K | 100.00% | 100.00% |
CABLEL WIRES S.A. | GREECE | 84.78% | 84.78% |
CENERGY HOLDINGS S.A. | BELGIUM | 71.43% | 79.78% |
HELLENIC CABLES AMERICA CO. | USA | 71.43% | 79.78% |
CORINTH PIPEWORKS S.A. | GREECE | 71.43% | 79.78% |
CPW AMERICA Co | USA | 71.43% | 79.78% |
CPW SOLAR S.A. | GREECE | 71.43% | 79.78% |
CPW WIND S.A. | GREECE | 71.43% | 79.78% |
DE LAIRE LTD | CYPRUS | - | 79.78% |
DIA.VI.PE.THI.V S.A. | GREECE | 89.35% | 91.54% |
DOJRAN STEEL LLCOP | NORTH MACEDONIA | 93.31% | 92.56% |
EANEP ALMYROU SA | GREECE | 93.31% | 92.56% |
ELVAL COLOUR S.A. | GREECE | 84.78% | 84.78% |
ELVAL COLOUR IBERICA S.A. | SPAIN | 84.78% | 84.78% |
ELVALHALCOR S.A. | GREECE | 84.78% | 84.78% |
ELVIOK S.A. | GREECE | 84.78% | 84.78% |
EL\u039a\u0395\u039c\u0395 S.A. | GREECE | 83.78% | 84.40% |
EPIRUS METALWORKS S.A. | GREECE | 77.01% | 84.78% |
ERGOSTEEL S.A. | GREECE | 86.68% | 89.12% |
ERLIKON S.A. | GREECE | 100.00% | 100.00% |
ETEM BULGARIA S.A. | BULGARIA | 100.00% | 100.00% |
ETEM GESTAMP EXTRUSIONS S.A. | BULGARIA | 51.00% | 51.00% |
E\u03a4IL S.A. | GREECE | 100.00% | 100.00% |
FLOCOS S.A. | GREECE | 100.00% | 100.00% |
FULGOR S.A. | GREECE | 71.43% | 79.78% |
Subsidiary companies | Country | Financial interest 2024 | Financial interest 2023 |
GENECOS S.A. | FRANCE | 89.88% | 91.59% |
HELLENIC CABLES S.A. | GREECE | 71.43% | 79.78% |
HELLENIC CABLES TRADING CO. | USA | 71.43% | 79.78% |
HUMBEL LTD | CYPRUS | 71.43% | 79.78% |
ICME ECAB S.A. | ROMANIA | 71.42% | 79.76% |
INOS BALCAN DOO | SERBIA | 97.54% | 97.54% |
INTERNATIONAL TRADE S.A. | BELGIUM | 89.88% | 91.59% |
JOSTDEX LIMITED | CYPRUS | 100.00% | 100.00% |
LESCO ROMANIA S.A. | ROMANIA | 46.43% | 51.86% |
LESCO EOOD | BULGARIA | 71.43% | 79.78% |
METAL AGENCIES LTD | U.K | 89.88% | 91.59% |
METALCO S.A. | BULGARIA | 100.00% | 100.00% |
METALIGN S.A. | BULGARIA | 100.00% | 100.00% |
NOVAL PROPERTY REIC | GREECE | 68.77% | 81.09% |
NOVOMETAL DOO | NORTH MACEDONIA | 97.54% | 97.54% |
PORT SVISHTOV WEST S.A. | BULGARIA | 73.09% | 73.09% |
PRAKSIS S.A. | GREECE | 61.00% | 61.00% |
PRAKSIS BG S.A. | BULGARIA | 61.00% | 61.00% |
REYNOLDS CUIVRE S.A. | FRANCE | 89.88% | 91.59% |
SIDEBALK STEEL DOO | SERBIA | 100.00% | 100.00% |
SIDENOR INDUSTRIAL S.A. | GREECE | 100.00% | 100.00% |
SIDERAL SHRK | ALBANIA | 99.92% | 99.92% |
SIDEROM STEEL SRL | ROMANIA | 100.00% | 100.00% |
SOFIA MED AD | BULGARIA | 86.37% | 86.37% |
SOVEL S.A. | GREECE | 93.31% | 92.56% |
STEELMET CYPRUS LTD | CYPRUS | 86.68% | 89.12% |
STEELMET PROPERTIES S.A. | GREECE | 86.68% | 89.12% |
STEELMET ROMANIA S.A. | ROMANIA | 89.88% | 91.59% |
STEELMET S.A. | GREECE | 86.68% | 89.12% |
STEELMET FINANCIAL SERVICES S.A. | GREECE | 100.00% | 100.00% |
STOMANA INDUSTRY S.A. | BULGARIA | 100.00% | 100.00% |
STOMANA ENGINEERING S.A. | BULGARIA | 100.00% | 100.00% |
SYMETAL S.A. | GREECE | 84.78% | 84.78% |
TECHOR S.A. | GREECE | 84.78% | 84.78% |
TECHOR ROMANIA S.A. | ROMANIA | 84.78% | 84.78% |
TEPROMKC AG | GERMANY | 89.88% | 91.59% |
TERRA MIDDLE EAST AG | GERMANY | 89.88% | 91.59% |
T\u0395\u039a\u0391 SYSTEMS S.A. | GREECE | 100.00% | 100.00% |
VEPAL S.A. | GREECE | 84.78% | 84.78% |
VIENER S.A. | GREECE | 93.70% | 93.70% |
VIEXAL S.A. | GREECE | 95.94% | 95.94% |
VIOHALCO ENGINEERING S.A. (renamed from TEKA ENGINEERING S.A.) | GREECE | 100.00% | 100.00% |
VIOMAL S.A. | GREECE | 63.58% | 63.58% |
VITRUVIT S.A. | GREECE | 99.75% | 99.75% |
WAGNER POINT PROPERTIES LLC (renamed from Sparrows Point Properties LLC) | USA | 71.43% | 79.78% |
WARSAW TUBULARS TRADING SP.ZO | POLAND | 71.43% | 79.78% |
The ultimate controlling entity is Viohalco S.A. for all the above entities. Viohalco does exercise control, by holding the majority of the voting rights, directly and/or indirectly and these entities are reported as subsidiary companies.
The percentages reported on the above table represent the financial interest held directly and indirectly by Viohalco. For example, if Viohalco holds 70% of company A and company A holds 70% of company B, then in the table above it will be presented that Viohalco holds 49% of financial interest in company B.
Transactions that took place in 2024
During 2024, the subsidiary Sparrows Point Properties Holdings LLC was merged with Hellenic Cables Americas CO.
De Laire LTD was liquidated during 2024 and the dissolution of the company is expected within 2025.
Hellenic Cables Trading CO is currently under voluntary liquidation.
In November 2024, the subsidiary TEKA ENGINEERING S.A. was renamed to VIOHALCO ENGINEERING S.A.
32. Joint operations
During 2024, the following joint operations were formed:
Hellenic Cables has a 68.80% interest in a joint arrangement called Jan De Nul Luxembourg SA \u2013 Hellenic Cables SA Consortium Baltyk 2 sp\u00f3\u0142ka jawna, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, transport and install export cables for the Polish offshore wind farms Baltyk II. The principal place of business of the joint operation is in Poland.
Hellenic Cables has a 70.10% interest in a joint arrangement called Jan De Nul Luxembourg SA \u2013 Hellenic Cables SA Consortium Baltyk 3 sp\u00f3\u0142ka jawna, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, transport and install export cables for the Polish offshore wind farms Baltyk III. The principal place of business of the joint operation is in Poland.
Hellenic Cables has a 54.69% interest in a joint arrangement called Jan De Nul Luxembourg SA \u2013 Hellenic Cables SA Consortium Dolwin Kappa, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is the turnkey delivery of three HVAC offshore grid connection cables for the offshore wind farms to be developed in zones N-3.7 & N-3.8 in Germany. These cables will connect the wind farms to the DolWin Kappa convertor station, from where HVDC cables transfer the produced energy to shore. The principal place of business of the joint operation is in Germany.
The joint operations described below were formed during prior years:
Hellenic Cables has a 58.37% interest in a joint arrangement called Jan De Nul Luxembourg - Hellenic Cables Consortium \u2013 Thor Export Cables I/S, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, supply, transport, install and test the 275kV HVAC export cable system for the Thor Offshore Wind Farm. The principal place of business of the joint operation is in Denmark.
Hellenic Cables has a 38.24% interest in a joint arrangement called Jan De Nul Luxembourg - Hellenic Cables Consortium \u2013 Thor Array Cables I/S, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, supply, transport, install and test the 66kV inter-array cable system for the Thor Offshore Wind Farm. The principal place of business of the joint operation is in Denmark.
Hellenic Cables has a 62.48% interest in a joint arrangement called VO Cablel VOF, which was set up as a partnership together with Van Oord. The scope of this joint operation scheme is to supply and install sea and land cables for the Hollandse Kust (South) Alpha project and Hollandse Kust (South) Beta project. The principal place of business of the joint operation is in the Netherlands.
Hellenic Cables has a 50.77% interest in a joint arrangement called DEME Offshore NL - Hellenic Cables V.O.F., which was set up as a partnership together with Tideway. The scope of this joint operation scheme is to execute a turnkey contract for the supply and installation of submarine cables for the connection of the Seamade offshore wind project to the Belgian grid. The principal place of business of the joint operation is in Belgium.
Fulgor has a 10.00% interest in a joint arrangement called Fulgor \u2013 JDN Consortium, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to execute a turnkey contract for the installation of submarine cables for the interconnection Crete-Peloponnese in Greece. The principal place of business of this joint operation is in Greece.
Fulgor has a 70.27% interest in a joint arrangement called Fulgor \u2013 Asso.subsea Ltd Consortium, which was set up as a partnership together with Asso.subsea Ltd. The scope of this joint operation scheme is to execute a turnkey contract for the design, manufacturing, supply and installation of the 150 kV submarine cable system connecting the under construction 330 MW Kafireas II Wind Farm to Greece\u2019s mainland grid. The principal place of business of this joint operation is in Greece.
All the agreements stated above require unanimous consent from all parties for all relevant activities. The two partners have direct rights to the assets of the partnership and are jointly and severally liable for the liabilities incurred by the partnership. These entities are therefore classified as joint operations and the Group recognises its direct right to the jointly held assets, liabilities, revenues an expenses as described in note 5.1(g).
33. Non-controlling interests
The following table summarises the information relating to each of the subsidiaries that have material NCI (at sub-group level in the cases of Cenergy, ElvalHalcor, Sidenor) before any intra-group elimination.
2024 | ||||||
Amounts in EUR thousands | Cenergy | ElvalHalcor | Sidenor | Other | Intragroup eliminations | Total |
NCI percentage | 28.57% | 15.22% | 0.00% | |||
Non-current assets | 937,562 | 1,117,725 | 321,989 | |||
Current assets | 1,353,747 | 1,189,470 | 396,017 | |||
Non-current liabilities | 333,281 | 6,664,297 | 303,220 | |||
Current liabilities | 1,258,209 | 708,917 | 365,060 | |||
Net Assets | 699,819 | 933,981 | 49,726 | |||
Attributable to NCI by the companies | 45 | 23,728 | 36,219 | 849 | ||
Net attributable to the equity holders & NCI of Viohalco | 699,774 | 910,254 | 13,507 | |||
Attributable to NCI by parent Company | 199,926 | 138,541 | - | 117,941 | ||
Carrying amount of NCI | 199,971 | 162,268 | 36,219 | 118,790 | -50,928 | 466,319 |
Revenue | 1,796,448 | 3,438,452 | 711,159 | |||
Profit / Loss (-) | 140,616 | 114,701 | -16,729 | |||
Other comprehensive income | -2,186 | -829 | 310 | |||
Total comprehensive income | 138,430 | 113,872 | -16,418 | 32,933 | ||
Attributable to NCI by the companies | 4 | 6,194 | -1,566 | -4 | ||
Net attributable to the equity holders & NCI of Viohalco | 138,426 | 107,677 | -14,853 | 32,938 | ||
Attributable to NCI by Viohalco | 31,238 | 16,388 | - | 2,980 | ||
Total OCI of NCI | 31,242 | 22,583 | -1,566 | 2,976 | -6,444 | 48,791 |
Cash flows from operating activities | 301,543 | 262,823 | -18,105 | |||
Cash flows from investing activities | -247,147 | -67,793 | -24,112 | |||
Cash flows from financing activities | 203,314 | -155,861 | 42,438 | |||
Net increase/ decrease (-) in cash and cash equivalents | 257,710 | 39,169 | 222 | |||
2023 | ||||||
Amounts in EUR thousands | Cenergy | ElvalHalcor | Sidenor | Other | Intragroup eliminations | Total |
NCI percentage | 20.22% | 15.22% | 0.00% | |||
Non-current assets | 706,611 | 1,111,140 | 316,675 | |||
Current assets | 1,117,962 | 1,076,881 | 387,851 | |||
Non-current liabilities | 288,273 | 781,430 | 317,799 | |||
Current liabilities | 1,145,807 | 568,055 | 319,448 | |||
Net Assets | 390,494 | 838,535 | 67,279 | |||
Attributable to NCI by the companies | 41 | 19,542 | 38,735 | |||
Net attributable to the equity holders & NCI of Viohalco | 390,452 | 818,993 | 28,545 | |||
Attributable to NCI by parent Company | 78,949 | 124,651 | - | |||
Carrying amount of NCI | 78,991 | 144,193 | 38,735 | 65,464 | -44,804 | 282,578 |
Revenue | 1,627,724 | 3,292,681 | 641,538 | |||
Profit / Loss (-) | 71,274 | 35,477 | -29,233 | |||
Other comprehensive income | -552 | -24,387 | -455 | |||
Total comprehensive income | 70,723 | 11,090 | -29,688 | |||
Attributable to NCI by the companies | 3 | 4,516 | -9,368 | |||
Net attributable to the equity holders & NCI of Viohalco | 70,719 | 6,574 | -20,320 | |||
Attributable to NCI by Viohalco | 14,299 | 1,001 | - | |||
Total OCI of NCI | 14,303 | 5,517 | -9,368 | 895 | 2,849 | 14,195 |
Cash flows from operating activities | 208,607 | 268,643 | 16,695 | |||
Cash flows from investing activities | -130,497 | -93,432 | -26,940 | |||
Cash flows from financing activities | -61,091 | -170,120 | -8,989 | |||
Net increase/ decrease (-) in cash and cash equivalents | 17,019 | 5,092 | -19,234 |
Share capital increase of Cenergy Holdings
On October 11, 2024, 22,222,222 new ordinary shares of no nominal value of Viohalco subsidiary, Cenergy Holdings, were issued at a price per new share of EUR 9.00. The new shares were offered in parallel through a public offer in Belgium and Greece and private placements to certain institutional investors in various jurisdictions. The total gross proceeds raised by Cenergy Holdings from the said offer, before deducting expenses, amounted to EUR 199,999,998.00 (22,222,222 new shares multiplied by the offer price of EUR 9.00). Out of this amount, EUR 13,776,762.15 was recorded as increase in the share capital of Cenergy Holdings based on the fractional value per share as per the company\u2019s\u2019 accounting records. The remaining amount of EUR 186,223,235.85 was recorded as increase in the share premium and the transaction costs for the share capital increase amounted to EUR 12,764,068.73 were recorded as a deduction in the share premium of Cenergy Holdings.
The share capital increase that recognized in Cenergy Holdings financial statements is described as follows:
Amounts in EUR thousands | Share Capital | Share Premium | Total |
Share capital increase | 13,777 | 186,223 | 200,000 |
Capitalized IPO costs | - | -12,764 | -12,764 |
Total | 13,777 | 173,459 | 187,236 |
Initial public offering of Noval Property REIC new shares
On June 5th, 2024, in the context of share capital increase and listing of Noval Property REIC, Viohalco subsidiary in Real Estate segment, commenced the trading of 126,431,958 ordinary, registered, dematerialized, voting shares, on the regulated market of Athens Exchange (i.e., the 107,467,164 existing ordinary, registered, dematerialized, voting shares, the 17,388,025 new ordinary, registered, dematerialized, voting shares from the Increase and the 1,576,769 ordinary, registered, dematerialized, voting shares resulting from the conversion of bonds of the common and under conditions mandatorily convertible into Company shares bond loan issued by the Company on 05.10.2023 and which are subscribed in their entirety by the EBRD).
The share capital increase from the initial public offering that recognized in Noval Property financial statements is described as follows:
Amounts in EUR thousands | Share Capital | Share Premium | Total |
Share capital increase | 43,470 | 4,869 | 48,339 |
Capitalized IPO costs | - | -4,544 | -4,544 |
Bond loan conversion | 3,942 | 441 | 4,383 |
Total | 47,412 | 766 | 48,178 |
34. Leases
\u0391. Leases as lessee
(a) Amounts recognised in the Statement of Financial Position
The Consolidated Statement of Financial Position shows the following amounts relating to leases:
Right of Use Assets
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Land | 1,118 | 1,205 |
Buildings | 9,886 | 10,908 |
Machinery | 5,782 | 5,488 |
Transportation equipment | 26,956 | 22,864 |
Other equipment | 159 | 159 |
Total Right-of-use assets | 43,901 | 40,623 |
Lease liabilities
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Current lease liabilities | 11,086 | 11,237 |
Non-current lease liabilities | 40,358 | 35,382 |
Total lease liabilities | 51,444 | 46,620 |
Additions to the right-of-use assets during 2024 were EUR 17,786 thousands (2023: EUR 22,687 thousands).
(b)Amounts recognised in the Statement of profit or loss
The statement of profit or loss includes the following amounts relating to leases:
Amounts in EUR thousands | 2024 | 2023 |
Depreciation charge of right-of-use assets | ||
Plots | 189 | 184 |
Buildings | 1,978 | 1,741 |
Machinery | 1,529 | 2,110 |
Transportation means | 8,277 | 6,140 |
Other equipment | 69 | 121 |
Total | 12,043 | 10,295 |
Interest expense (included in finance cost) | 2,449 | 2,095 |
Variable rental fees | 1,301 | 1,056 |
Low value rental fees | 513 | 564 |
Short term rental fees | 6,413 | 7,110 |
Total | 10,676 | 10,826 |
B. Leases as lessor
Viohalco and its companies in the real estate development sector lease out their investment properties (See note 19).
a) Future minimum lease collections
At 31 December, the future minimum lease payments under non-cancellable leases were as follows.
Amounts in EUR thousands | 2024 | 2023 |
Less than one year | 26,658 | 24,203 |
Between one and two years | 26,445 | 23,379 |
Between two and three years | 25,256 | 22,819 |
Between three and four years | 22,891 | 21,390 |
Between four and five years | 22,446 | 19,196 |
More than five years | 215,093 | 84,581 |
Total | 338,789 | 195,569 |
(b) Amounts recognized in profit or loss
The figures below are related to investment property that has been recognised in the statement of profit or loss. Operating expenses relate mainly to maintenance cost.
Amounts in EUR thousands | 2024 | 2023 |
Rental income from investment property | 29,702 | 25,558 |
Direct operating expenses that do not generate rental income | - | -65 |
35. Commitments
A. Purchase commitments
The below mentioned commitments relate to contracts that Viohalco\u2019s subsidiaries have entered into, according to their investment plans and are expected to be concluded during the next 3 years.
Amounts in EUR thousands | 2024 | 2023 |
Property, plant and equipment | 122,806 | 106,720 |
Investment property | 16,062 | 25,913 |
Intangible Assets | 65 | 53 |
B. Guarantees
Amounts in EUR thousands | 2024 | 2023 |
Liabilities | ||
Guarantees to secure liabilities to suppliers | 82,669 | 43,730 |
Guarantees for securing the good performance of contracts with customers | 801,899 | 610,065 |
Guarantees for securing the good performance of contracts with suppliers | 4,005 | 2,239 |
36. Contingent liabilities
A. Litigations & administrative reviews
Regarding Corinth Pipeworks\u2019 exports of large diameter welded pipe (LDWP) to the US for the periods May 1, 2021 - April 30, 2022, May 1, 2022 - April 30, 2023 and May 1, 2023 - April 30, 2024, no provision has been recorded in respect to antidumping duties due to the following facts:
For the period May 1, 2021 - April 30, 2022, the results of the administrative review published in Federal Register on December 22, 2023, imposed 0% dumping margin.
For the period May 1, 2022 - April 30, 2023, there were no sales to the US subject to antidumping duties; thus, no additional charge\u00a0is expected for that period.
For the period May 1, 2023 - April 30, 2024, there were no sales to the US subject to antidumping duties; thus, no additional charge\u00a0is expected for that period.
\u0392. Contigent tax liabilities
The tax filings of the subsidiaries are routinely subjected to audit by tax authorities in most of the jurisdictions in which Viohalco and its companies conduct business. These audits may result in assessments of additional taxes. Viohalco and its subsidiaries provide for additional tax in relation to the outcome of such tax assessments, to the extent that a liability is probable and estimable.
Viohalco companies believe that their accruals for tax liabilities are adequate for all open tax years based on their assessment of underlying factors, including interpretations of tax law and prior experience.
37. Related parties
\u0391. Equity-accounted investees and other related parties
The following transactions have been made with equity-accounted investees and other related parties.
Amounts in EUR thousands | 2024 | 2023 |
Sale of goods/ services | ||
Associates | 166,234 | 115,850 |
Joint ventures | 187,688 | 121,074 |
\u00a0 | 353,922 | 236,924 |
Purchases of goods / services | ||
Associates | 12,549 | 9,639 |
Joint ventures | 3,944 | 22,414 |
\u00a0 | 16,493 | 32,052 |
Closing balances that arise from sales/purchases of goods, services, fixed assets, etc.:
Amounts in EUR thousands | 2024 | 2023 |
Receivables from related parties | ||
Associates | 31,180 | 33,280 |
Joint ventures | 28,650 | 32,369 |
\u00a0 | 59,830 | 65,649 |
Contract assets to related parties | ||
Associates | 55 | 49 |
Joint ventures | 14 | 59 |
\u00a0 | 69 | 108 |
Liabilities to related parties | ||
Associates | 4,194 | 4,324 |
Joint ventures | 95 | 268 |
\u00a0 | 4,289 | 4,592 |
Contract liabilities to related parties | ||
Associates | 44 | 35 |
Joint ventures | 8 | 48 |
\u00a0 | 52 | 83 |
The outstanding balances from related parties are secured and the settlement of those balances is expected to be performed in cash during the following year, since the balances concern only short-term receivables and payables.
Receivables from joint ventures include EUR 4.5 million (2023: EUR 4.5 million) as long term loan to Nedzink B.V.
Services to and from related parties as well as sales and purchases of goods are carried out in accordance with the price lists applying to non-related parties. During 2024, services of EUR 443 thousands (2023: EUR 249 thousands) acquired from entities that are controlled by members of the key management personnel and products of EUR 153 thousands sold to them.
\u0392. Key management personnel compensation
The table below provides an overview of the transactions with Board members and executive management:
Amounts in EUR thousands | 2024 | 2023 |
Compensation to BoD members and executives | 6,188 | 5,802 |
The compensation to directors and executive management in the table above are fixed compensation. No variable compensation, post-employment benefits or share based benefits were paid in 2024 and in 2023.
38. Auditor\u2019s fees
The Company\u2019s statutory auditor (PwC Reviseurs d\u2019Entreprises SRL/ Bedrijfsrevisoren BV) and a number of other member firms of the auditor\u2019s network, received fees for the following services:
\u00a0 | \u00a0 | \u00a0 | For year ended 31 December |
Amounts in EUR thousands | 2024 | 2023 | |
Statutory Auditor | |||
Audit | 369 | 358 | |
Other related services | 764 | 35 | |
\u00a0 | 1,133 | 393 | |
Statutory Auditor Network | |||
Audit | 1,002 | 1,159 | |
Tax related services | 383 | 213 | |
Other services | 201 | 269 | |
\u00a0 | 1,586 | 1,641 | |
Total | 2,719 | 2,034 |
39. Subsequent events
On March 6th, 2025, Viohalco\u2019s Board of Directors decided to propose to the Ordinary General Shareholders\u2019 meeting to be held on May 27th, 2025, the approval of a gross dividend of EUR 0.16 per share.
No other subsequent events for which disclosure is required in the Consolidated Financial Statements have occurred since 31 December 2024.
3.\tFunctional currency and presentation currency
The functional and presentation currency of the parent Company is Euro. All amounts in the Consolidated Financial Statements are rounded to the nearest thousand, unless otherwise indicated. As such, due to rounding, figures shown as totals in certain tables may not be arithmetic aggregations of the figures that precede them.
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Viohalco\u2019s subsidiaries and the percentages of financial interest held by the parent company at the end of the reporting period are as follows:
Subsidiary companies | Country | Financial interest 2024 | Financial interest 2023 |
AEIFOROS S.A. | GREECE | 98.11% | 98.11% |
AEIFOROS BULGARIA S.A. | BULGARIA | 98.11% | 98.11% |
ALURAME SPA | ITALY | 89.88% | 91.59% |
ANOXAL S.A. | GREECE | 84.78% | 84.78% |
A\u039d\u0391\u039c\u0395\u03a4 DOO | SERBIA | 97.54% | 97.54% |
A\u039d\u0391\u039c\u0395\u03a4 S.A. | GREECE | 97.54% | 97.54% |
A\u039d\u03a4\u0399\u039c\u0395\u03a4 S.A. | GREECE | 100.00% | 100.00% |
A\u03a4\u03a4\u0399\u039aI S.A. | GREECE | 75.00% | 75.00% |
BASE METALS S.A. | TURKEY | 67.86% | 69.15% |
BRIDGNORTH LTD | U.K | 100.00% | 100.00% |
CABLEL WIRES S.A. | GREECE | 84.78% | 84.78% |
CENERGY HOLDINGS S.A. | BELGIUM | 71.43% | 79.78% |
HELLENIC CABLES AMERICA CO. | USA | 71.43% | 79.78% |
CORINTH PIPEWORKS S.A. | GREECE | 71.43% | 79.78% |
CPW AMERICA Co | USA | 71.43% | 79.78% |
CPW SOLAR S.A. | GREECE | 71.43% | 79.78% |
CPW WIND S.A. | GREECE | 71.43% | 79.78% |
DE LAIRE LTD | CYPRUS | - | 79.78% |
DIA.VI.PE.THI.V S.A. | GREECE | 89.35% | 91.54% |
DOJRAN STEEL LLCOP | NORTH MACEDONIA | 93.31% | 92.56% |
EANEP ALMYROU SA | GREECE | 93.31% | 92.56% |
ELVAL COLOUR S.A. | GREECE | 84.78% | 84.78% |
ELVAL COLOUR IBERICA S.A. | SPAIN | 84.78% | 84.78% |
ELVALHALCOR S.A. | GREECE | 84.78% | 84.78% |
ELVIOK S.A. | GREECE | 84.78% | 84.78% |
EL\u039a\u0395\u039c\u0395 S.A. | GREECE | 83.78% | 84.40% |
EPIRUS METALWORKS S.A. | GREECE | 77.01% | 84.78% |
ERGOSTEEL S.A. | GREECE | 86.68% | 89.12% |
ERLIKON S.A. | GREECE | 100.00% | 100.00% |
ETEM BULGARIA S.A. | BULGARIA | 100.00% | 100.00% |
ETEM GESTAMP EXTRUSIONS S.A. | BULGARIA | 51.00% | 51.00% |
E\u03a4IL S.A. | GREECE | 100.00% | 100.00% |
FLOCOS S.A. | GREECE | 100.00% | 100.00% |
FULGOR S.A. | GREECE | 71.43% | 79.78% |
Subsidiary companies | Country | Financial interest 2024 | Financial interest 2023 |
GENECOS S.A. | FRANCE | 89.88% | 91.59% |
HELLENIC CABLES S.A. | GREECE | 71.43% | 79.78% |
HELLENIC CABLES TRADING CO. | USA | 71.43% | 79.78% |
HUMBEL LTD | CYPRUS | 71.43% | 79.78% |
ICME ECAB S.A. | ROMANIA | 71.42% | 79.76% |
INOS BALCAN DOO | SERBIA | 97.54% | 97.54% |
INTERNATIONAL TRADE S.A. | BELGIUM | 89.88% | 91.59% |
JOSTDEX LIMITED | CYPRUS | 100.00% | 100.00% |
LESCO ROMANIA S.A. | ROMANIA | 46.43% | 51.86% |
LESCO EOOD | BULGARIA | 71.43% | 79.78% |
METAL AGENCIES LTD | U.K | 89.88% | 91.59% |
METALCO S.A. | BULGARIA | 100.00% | 100.00% |
METALIGN S.A. | BULGARIA | 100.00% | 100.00% |
NOVAL PROPERTY REIC | GREECE | 68.77% | 81.09% |
NOVOMETAL DOO | NORTH MACEDONIA | 97.54% | 97.54% |
PORT SVISHTOV WEST S.A. | BULGARIA | 73.09% | 73.09% |
PRAKSIS S.A. | GREECE | 61.00% | 61.00% |
PRAKSIS BG S.A. | BULGARIA | 61.00% | 61.00% |
REYNOLDS CUIVRE S.A. | FRANCE | 89.88% | 91.59% |
SIDEBALK STEEL DOO | SERBIA | 100.00% | 100.00% |
SIDENOR INDUSTRIAL S.A. | GREECE | 100.00% | 100.00% |
SIDERAL SHRK | ALBANIA | 99.92% | 99.92% |
SIDEROM STEEL SRL | ROMANIA | 100.00% | 100.00% |
SOFIA MED AD | BULGARIA | 86.37% | 86.37% |
SOVEL S.A. | GREECE | 93.31% | 92.56% |
STEELMET CYPRUS LTD | CYPRUS | 86.68% | 89.12% |
STEELMET PROPERTIES S.A. | GREECE | 86.68% | 89.12% |
STEELMET ROMANIA S.A. | ROMANIA | 89.88% | 91.59% |
STEELMET S.A. | GREECE | 86.68% | 89.12% |
STEELMET FINANCIAL SERVICES S.A. | GREECE | 100.00% | 100.00% |
STOMANA INDUSTRY S.A. | BULGARIA | 100.00% | 100.00% |
STOMANA ENGINEERING S.A. | BULGARIA | 100.00% | 100.00% |
SYMETAL S.A. | GREECE | 84.78% | 84.78% |
TECHOR S.A. | GREECE | 84.78% | 84.78% |
TECHOR ROMANIA S.A. | ROMANIA | 84.78% | 84.78% |
TEPROMKC AG | GERMANY | 89.88% | 91.59% |
TERRA MIDDLE EAST AG | GERMANY | 89.88% | 91.59% |
T\u0395\u039a\u0391 SYSTEMS S.A. | GREECE | 100.00% | 100.00% |
VEPAL S.A. | GREECE | 84.78% | 84.78% |
VIENER S.A. | GREECE | 93.70% | 93.70% |
VIEXAL S.A. | GREECE | 95.94% | 95.94% |
VIOHALCO ENGINEERING S.A. (renamed from TEKA ENGINEERING S.A.) | GREECE | 100.00% | 100.00% |
VIOMAL S.A. | GREECE | 63.58% | 63.58% |
VITRUVIT S.A. | GREECE | 99.75% | 99.75% |
WAGNER POINT PROPERTIES LLC (renamed from Sparrows Point Properties LLC) | USA | 71.43% | 79.78% |
WARSAW TUBULARS TRADING SP.ZO | POLAND | 71.43% | 79.78% |
The ultimate controlling entity is Viohalco S.A. for all the above entities. Viohalco does exercise control, by holding the majority of the voting rights, directly and/or indirectly and these entities are reported as subsidiary companies.
The percentages reported on the above table represent the financial interest held directly and indirectly by Viohalco. For example, if Viohalco holds 70% of company A and company A holds 70% of company B, then in the table above it will be presented that Viohalco holds 49% of financial interest in company B.
Transactions that took place in 2024
During 2024, the subsidiary Sparrows Point Properties Holdings LLC was merged with Hellenic Cables Americas CO.
De Laire LTD was liquidated during 2024 and the dissolution of the company is expected within 2025.
Hellenic Cables Trading CO is currently under voluntary liquidation.
In November 2024, the subsidiary TEKA ENGINEERING S.A. was renamed to VIOHALCO ENGINEERING S.A.
37. Related parties
\u0391. Equity-accounted investees and other related parties
The following transactions have been made with equity-accounted investees and other related parties.
Amounts in EUR thousands | 2024 | 2023 |
Sale of goods/ services | ||
Associates | 166,234 | 115,850 |
Joint ventures | 187,688 | 121,074 |
\u00a0 | 353,922 | 236,924 |
Purchases of goods / services | ||
Associates | 12,549 | 9,639 |
Joint ventures | 3,944 | 22,414 |
\u00a0 | 16,493 | 32,052 |
Closing balances that arise from sales/purchases of goods, services, fixed assets, etc.:
Amounts in EUR thousands | 2024 | 2023 |
Receivables from related parties | ||
Associates | 31,180 | 33,280 |
Joint ventures | 28,650 | 32,369 |
\u00a0 | 59,830 | 65,649 |
Contract assets to related parties | ||
Associates | 55 | 49 |
Joint ventures | 14 | 59 |
\u00a0 | 69 | 108 |
Liabilities to related parties | ||
Associates | 4,194 | 4,324 |
Joint ventures | 95 | 268 |
\u00a0 | 4,289 | 4,592 |
Contract liabilities to related parties | ||
Associates | 44 | 35 |
Joint ventures | 8 | 48 |
\u00a0 | 52 | 83 |
The outstanding balances from related parties are secured and the settlement of those balances is expected to be performed in cash during the following year, since the balances concern only short-term receivables and payables.
Receivables from joint ventures include EUR 4.5 million (2023: EUR 4.5 million) as long term loan to Nedzink B.V.
Services to and from related parties as well as sales and purchases of goods are carried out in accordance with the price lists applying to non-related parties. During 2024, services of EUR 443 thousands (2023: EUR 249 thousands) acquired from entities that are controlled by members of the key management personnel and products of EUR 153 thousands sold to them.
\u0392. Key management personnel compensation
The table below provides an overview of the transactions with Board members and executive management:
Amounts in EUR thousands | 2024 | 2023 |
Compensation to BoD members and executives | 6,188 | 5,802 |
The compensation to directors and executive management in the table above are fixed compensation. No variable compensation, post-employment benefits or share based benefits were paid in 2024 and in 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__17-1": { "value": "2.\tBasis of accounting
Statement of compliance
The Consolidated Financial Statements for the year ended 31 December 2024 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union and authorized by the Company\u2019s Board of Directors on 6th March 2025.
Details of the Viohalco\u2019s accounting policies are included in Note 5.Basis of measurement
The Consolidated Financial Statements have been prepared in accordance with the historical cost principle, with the exception of the following assets and liabilities, which are measured on an alternative basis on each reporting date.
Derivative financial instruments (fair value);
Other Investments - Equity instruments (fair value);
Net defined benefit liability (present value of the obligation);
Provisions (present value of the expected future cash flows).
The Company has prepared the Consolidated Financial Statements on the basis that it will continue to operate as a going concern.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__18": { "value": "The Consolidated Financial Statements for the year ended 31 December 2024 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union and authorized by the Company\u2019s Board of Directors on 6th March 2025.", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__19": { "value": "The Consolidated Financial Statements for the year ended 31 December 2024 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union and authorized by the Company\u2019s Board of Directors on 6th March 2025.", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__22-1": { "value": "Details of the Viohalco\u2019s accounting policies are included in Note 5.5.\tSignificant accounting policies
The accounting principles described below have been consistently applied to all periods presented in these Consolidated Financial Statements and have also been consistently applied by Viohalco and its companies (subsidiaries and equity accounted investees).
5.1. Basis of Consolidation
(a)\tBusiness combinations
Acquisition of subsidiaries is accounted for using the acquisition method on the acquisition date, i.e. the date on which control is transferred to Viohalco. To assess control, Viohalco takes into account substantive potential voting rights.
Viohalco and its companies measure goodwill on the acquisition date as follows:
the fair value of the consideration paid, plus
the value of any non-controlling interests in the acquired subsidiary, less
the fair value of identifiable assets and liabilities assumed.
Any goodwill that arises is tested annually for impairment loss. Any gain on a bargain purchase is immediately recognized in the Consolidated Statement of Profit or Loss. Any expenses directly linked with acquisition are directly posted in the Consolidated Statement of Profit or Loss. Any contingent consideration is recognized at its fair value on the acquisition date.
(b) Subsidiaries
Subsidiaries are entities controlled by Viohalco. Viohalco controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of the subsidiaries are included in the consolidated financial statements from the date on which control commences, until the date on which control ceases.
(c)\tNon-controlling interests
NCI are measured at fair value or at their proportionate share of the acquiree\u2019s identifiable net assets at the date of acquisition. This measurement is done on an acquisition by acquisition basis.
Changes in Viohalco\u2019s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
(d) Loss of control
When Viohalco and its companies lose control over a subsidiary, they derecognise the assets and liabilities of the subsidiary and any related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.
(e)\tInterests in equity-accounted investees
Associates are those entities in which Viohalco has significant influence, but not control or joint control, over the financial and operating policies. This is generally the case where Viohalco holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost.
Investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement.
Joint operations: Viohalco recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements under the appropriate headings.
Joint ventures: A joint venture is an arrangement in which Viohalco has joint control, whereby Viohalco has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Interests in joint ventures are accounted for using the equity method, after initially being recognised at cost in the consolidated balance sheet.
(f)\tEquity method
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise Viohalco\u2019s share of the post-acquisition profits or losses of the investee in profit or loss, and Viohalco\u2019s share of movements in other comprehensive income of the investee in other comprehensive income, until the date on which significant influence or joint control ceases.
Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.
When Viohalco\u2019s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, Viohalco does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.
(g)\tTransactions eliminated on consolidation
Intra group balances and transactions and any unrealised income and expenses arising from intra group transactions are eliminated. Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of Viohalco\u2019s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
5.2. Foreign currency
(a)\tForeign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Viohalco\u2019s companies at the exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Foreign currency gains and losses are recognized and classified in the consolidated statement of profit or loss based on the nature of the related item of the consolidated statement of financial position.
Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.
Foreign currency differences arising from the translation of the following items are recognised in OCI:
- qualifying cash flow hedges to the extent that the hedges are effective;
- an investment in equity securities designated as at FVOCI.
(b)\tForeign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into Euro at the exchange rates of the reporting date. The income and expenses of foreign operations are translated into Euro at the exchange rates at the date of the transactions. The average rate for the period is deemed to be an appropriate rate.
Foreign currency differences are recognised in OCI and accumulated in the translation reserve, except to the extent that the translation difference is allocated to NCI.
5.3. Revenue
Viohalco recognizes revenue from the following major sources:
- Sale of customized products and revenue from projects;
- Sale of standard products;
- Rendering of services.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. Viohalco recognizes revenue when it transfers control of a product or service to a customer.
Consideration can vary because of trade discounts, volume rebates, returns or other similar items. Depending on the type of variable consideration the most appropriate method for measuring this variable consideration is used.
Sales of customized products and revenue from projects
Regarding contracts for projects and for customized products produced for the exclusive use of certain customers and with no alternative use, there is an enforceable right to payment for performance completed to date if the contract is terminated by the customer or another party for reasons other than Viohalco\u2019s subsidiaries\u2019 failure to perform as promised. Hence, it is concluded that the client controls all of the work in progress, as the goods are being produced.
Therefore, for such contracts revenue is recognised progressively based on the most appropriate output or input method, to measure progress towards completion.
The most common methods used are the following:
-\tFor performance obligations related to production of customized products, depending on the type of contract concerned, the methods to measure progress is estimated based on:
i. Production time elapsed, i.e. the ratio between the actual time spent on the production and the total number of scheduled production time. This method is used for submarine cables produced in long continuous lengths, since the production of such products normally lasts for significant period of time and, as a result, the related performance obligations are satisfied as production time elapses.
ii. The quantity of manufactured and tested products compared with the total quantity to be produced according to the contract. This method is used for customized land cables, steel pipes and aluminium products, since the production is performed in batches and as a result the performance obligations related are satisfied as certain batches of agreed quantities have been produced.
- For installation phases of cables segment\u2019s turnkey projects, the method to measure progress is based on appraisal of results achieved or milestones reached, based to clearly defined technical milestones, such as transport or meters of cables installed. When milestones are being used as a method to measure progress, these milestones faithfully depict the performance.
Sales of standard products
For products which are not considered customized, customers do not take control of the product until production is completed, therefore revenue is recognised at a point of time, when the control of the goods sold has been transferred.
The timing of the transfer of control usually occurs when the goods have been shipped to the customers\u2019 location, unless otherwise specified in the terms of the contract. The terms defined on the contracts with customers are according to Incoterms.
Revenue recognised at a point in time is invoiced either simultaneously with its recognition, or within a short time period from its recognition. A receivable is recognised when the control is transferred to the customer, as this represents the point in time at which the right to consideration becomes unconditional.
Rendering of services
Revenue is recognised using the stage-of-completion method. The total consideration in the service contracts is allocated to all performance obligations in the contract based on their stand-alone selling prices. The stand-alone selling prices are determined based on the list prices at which Viohalco sells the services in separate transactions.
Contract assets and contract liabilities
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances (contract liabilities). These contract assets and contract liabilities are presented on the Consolidated Statement of Financial Position in the lines \u2018Contract assets\u2019 and \u2018Contract liabilities,\u2019 respectively. For products and services for which revenue is recognised over time, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either upon achievement of contractual milestones, or at the final delivery and acceptance of the manufactured items.
Generally, billing occurs subsequent to revenue recognition for customized products and services performed over time resulting in contract assets. However, when advances from customers are received before revenue is recognized, a contract liability is recognized.
Contract costs
Viohalco\u2019s subsidiaries recognize the incremental costs of obtaining contracts with customers and the costs incurred in fulfilling contracts with customers that are directly associated with the contract as an asset, if those costs are expected to be recoverable and record them in the line \u201cContract costs\u201d in the Consolidated Statements of Financial Position. Incremental costs of obtaining contracts are costs incurred to obtain a contract with a customer that would not have been incurred if the contract had not been obtained.
Fulfilment costs are only capitalized if they generate or enhance resources that will be used to satisfy performance obligations in the future.
Assets arising from contract costs are amortized using either the straight-line method over a period based on the estimated contract duration or based on the portion of revenue recognised during the execution of the related contract.
Incremental costs of obtaining contracts are recognised as an expense when incurred, if the amortisation period of the assets would be one year or less.
5.4. Employee benefits
(a)\tShort-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if Viohalco and its companies have a present legal or constructive obligation to pay this amount, as a result of past service provided by the employee and the obligation can be estimated reliably.
(b)\tDefined contribution plans
Defined-contribution plans are plans for the period after the employee has ceased to work during which Viohalco and its companies pay a defined amount to a third legal entity without any other obligation. The accrued cost of defined-contribution programs is recorded as an expense in the period that it concerns.
(c)\tDefined benefit plans
Viohalco and its companies\u2019 net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The discount rate is based on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method, while benefits are attributed over the last 16 years before retirement of each employee.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, are recognised immediately in OCI. Viohalco and its companies determine the net interest expense on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability, taking into account any changes in the net defined benefit liability during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. Viohalco and its companies recognise gains and losses on the settlement of a defined benefit plan when the settlement occurs.
(d) Termination benefits
Termination benefits are expensed at the earlier of when Viohalco and its companies can no longer withdraw the offer of those benefits and when they recognise costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the reporting date, then they are discounted.
5.5. Government Grants
Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and Viohalco\u2019s companies will comply with all attached conditions.
Government grants relating to costs are deferred and recognized in the statement of profit or loss over the period necessary to match them with the costs that they are intended to compensate.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred government grants and are credited to the statement of profit or loss (line \u201cother income\u201d) on a straight line basis over the expected useful lives of the related assets.
5.6. Finance income and finance cost
Viohalco and its companies finance income and finance costs mainly include:
interest income;
interest expense;
dividend income;
Foreign currency gains and losses from loans and deposits.
Interest income or expense is recognised using the effective interest method. The \u2018effective interest rate\u2019 is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
\u2022 the gross carrying amount of the financial asset; or
\u2022 the amortised cost of the financial liability.
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset or to the amortised cost of the financial liability.
Dividend income is recognised in profit or loss on the date on which Viohalco\u2019s right to receive payment is established.
5.7. Income tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or to items recognised directly in equity or in OCI.
A. Current tax
Current tax comprised the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends.
Current tax assets and liabilities are offset only if certain criteria are met.
B. Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;
Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that Viohalco and its companies are able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
Taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that is has become probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
The measurements of deferred tax reflect the tax consequences that would follow from the manner in which Viohalco and its companies expect, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority.
The assessment for the impact of the application of International Tax Reform \u2013 Pillar Two is included in Note 13 Income Tax.
5.8. Inventories
Inventories are stated at the lower of cost and net realisable value. The cost is determined by applying the method of weighted average cost and includes the production and conversion cost and all direct expenses required to bring inventories at their current condition. The net realisable value is estimated based on the inventory\u2019s current sales price, in the ordinary course of business activities, less any possible selling expenses, whenever such a case occurs.
The write-down of inventories to net realisable value and any reversals are recognized in \u2018cost of sales\u2019 in the period in which the write-downs occur.
5.9. Property, plant and equipment
A. Recognition and measurement
Property, plant and equipment are presented at their acquisition cost less accumulated depreciation and impairment.
The acquisition cost includes all expenses that are directly associated with the asset\u2019s acquisition or self-construction. The cost of self-constructed fixed assets includes the cost of direct labour, materials and any other cost that is required for the fixed asset to be ready for use as well as any borrowing costs.
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to Viohalco and its companies.
Repair and maintenance costs are recorded in the Consolidated Statement of Profit or Loss when these are incurred.
On the sale of property, plant and equipment, any difference that may arise between the price that is received and the carrying value thereof is recorded through profit or loss in the category \u2019Other operating income/expenses\u2019.
Borrowing costs related to the construction of qualifying assets are capitalised during the period required for the construction to be completed.
B. Depreciation
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives and is generally recognised in profit or loss. Land is not depreciated. The component approach is followed if the cost of an asset comprises different major components of that asset with different useful lives.
Administrative buildings | 20-50 years |
Plants | 33-50 years |
Heavy machinery | 12-40 years |
Light machinery | 8-18 years |
Furniture | 4-10 years |
Other equipment | 4-12 years |
Transport means | 4-10 years |
Computers are included in the category \u201cOther equipment\u201d.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
C. Reclassification to investment property
When the use of a property changes from owner-occupied to investment property, the property is reclassified to investment property.
The item is reclassified at its net book value at the date of reclassification which becomes its deemed cost for subsequent accounting purposes.
D. Reclassification to assets held for sale
Non-current assets and disposal groups are reclassified as held for sale when their carrying amount will be recovered principally through a sale transaction rather than continuing use.
5.10. Intangible assets and goodwill
A. Recognition and measurement
Goodwill:Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses.
Research and development: Expenditure on research activities is recognised in profit and loss as incurred. Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercial feasible, future economic benefits are probable and Viohalco\u2019s companies intend and have sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses.
Software programs: Software licenses are recorded at their acquisition cost less accumulated amortisation. These assets are amortised on the straight line method over their estimated useful lives, which ranges between 3 to 5 years. Expenses that are associated with the software\u2019s maintenance are recognised in profit or loss in the year in which they are incurred.
Other intangible assets: Other intangible assets, including customer relationships, patents and trademarks, that are acquired by Viohalco and its companies and have finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses. Other intangible assets having indefinite useful lives are measured at cost less accumulated impairment losses.
B. Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.
C. Amortisation and useful lives
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is recognised in profit or loss. Goodwill and other intangible assets with indefinite useful lives are not amortised.
The estimated useful lives for the current and comparative periods are as follows:
Trademarks and licenses\t10 \u2013 15 years
Software programs\t3 \u2013 5 years
Some intangible assets included in \u201cTrademarks and licences\u201d have indefinite useful lives and are therefore not amortised, but subject to an impairment testing. See Note 19 for detailed information.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
5.11. Investment property
Investment property, which includes land, buildings and right of use assets, is owned by Viohalco and its subsidiaries for the collection of rents and is not used for owner purposes. Investment property is presented at cost less depreciation. When the carrying amounts of investment property exceed their recoverable value, the difference (impairment loss) is directly recorded in profit and loss as an expense. The reversal of impairment losses is also recognised in profit and loss as income. Land is not depreciated. The buildings are depreciated by applying the straight-line method. The expected useful life of buildings is 18-33 years.
Management exercises judgement to determine whether a property qualifies as investment property or not. The criteria related to this judgement are as follows:
\u2022\tWhether a property generates cash flows derived from rentals and capital appreciation largely independently of the other assets held by Viohalco;
\u2022\tWhether a property does not generate cash flows from the production or supply of goods or services or the use of property for administrative purposes that are attributable not only to property, but also to other assets used in the production or supply process;
\u2022\tWhether a building that is vacant will be held to be leased out or for capital appreciation;
\u2022\tWhether a property that is being constructed or developed for future use as investment property;
\u2022\tWhether Viohalco holds land for a currently undetermined future use.
5.12. Assets held for sale
Non-current assets or disposal groups comprising assets and liabilities are classified as held-for-sale, if it is highly probable that they will be recovered primarily through sale rather than through continuing use.
Such assets or disposal groups are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets or employee benefits which continue to be measured in accordance Viohalco and its companies\u2019 other accounting policies. Impairment losses on initial classification as held-for-sale and subsequent gains and losses on remeasurement are recognised in profit or loss.
Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreciated and any equity-accounted investee is no longer equity accounted.
5.13. Impairment
A. Non-derivative financial assets
Financial instruments and contract assets
Viohalco recognises loss allowances for ECLs on:
financial assets measured at amortised cost;
contract assets;
lease receivables.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs, except for cash and cash equivalents (12-month expected credit loss).
Viohalco considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations in full, without recourse by Viohalco companies to actions such as realizing security (if any is held).
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which Viohalco companies are exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that Viohalco expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. Impairment losses related to trade and other receivables, including contract assets, are presented separately in the statement of profit or loss.
Write-off
The gross carrying amount of a financial asset is written off when Viohalco has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For all customers, Viohalco individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. Viohalco expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with Viohalco\u2019s procedures for recovery of amounts due.
B. Non-financial assets
At each reporting date, Viohalco and its companies review the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset\u2019s recoverable amount is estimated.
Goodwill and intangible assets with indefinite useful life is tested annually for impairment loss.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Viohalco companies, also, include in their review of the recoverable amounts assumptions related to the consequences of climate change.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss under \u2019Other expenses\u2018. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed.
For other assets, an impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
5.14. Leases
At inception of a contract, Viohalco assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Viohalco companies use the definition of a lease in IFRS 16.
Accounting for lease contracts as a lessee
Viohalco companies lease various offices, warehouses, machinery and cars. Rental contracts are usually made for fixed periods of 1 to 5 years, with some exceptions like lease of specialized machinery, ports, gas cylinders and land which are leased for longer periods.
Viohalco recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, comprising the following:
the amount of the initial measurement of lease liability;
any lease payments made at or before the commencement date less any lease incentives received;
any initial direct costs; and
restoration costs.
Subsequently, the right-of-use asset is measured at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the following lease payments:
fixed payments (including in-substance fixed payments), less any lease incentives receivable;
variable lease payment that are based on an index or a rate;
amounts expected to be payable by the lessee under residual value guarantees;
the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
Lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate of the component that entered into the lease agreement. Generally, Viohalco uses its incremental borrowing rate as the discount rate.
This is the rate that the lessee, i.e. each subsidiary of Viohalco, would have to pay on the commencement date of the lease for a loan of a similar term, and with similar security, to obtain an asset of similar value to the right-of-use asset in similar economic environment.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payment made. It is remeasured if there is a modification that is not accounted for as a separate lease; when there is a change in future lease payments arising from a change in an index or rate; a change in the estimate of the amount expected to be payable under a residual value guarantee; and changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.
Lease liabilities and right-of-use assets are presented separately in the statement of financial position. Right-of-use assets that meet the definition of investment property are presented within \u2018Investment property\u2019.
Viohalco has elected not to separate non-lease components from lease components.
Payments associated with leases of 12 months or less and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Low-value assets comprise IT-equipment and small items of office furniture.
Viohalco applies judgement to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessment of whether Viohalco is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognised.
Viohalco has elected to present interest paid related to lease liabilities in the Consolidated Statement of Cash Flows, within the line \u2019Interest charges & related expenses paid\u2018 in operating activities.
Accounting for lease contracts as a lessor
Leases in which Viohalco companies do not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income is recognised as revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognised as expense over the lease term on the same basis as lease income.
5.15. Financial instruments
(a) Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when Viohalco becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.
(b) Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI \u2013 debt investment; FVOCI \u2013 equity investment; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless Viohalco changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
-\tit is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
-\tits contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, Viohalco may irrevocably elect to present subsequent changes in the investment\u2019s fair value in OCI. This election is made on an investment-by-investment basis.
All financial assets (except derivatives to which cash flow hedging is applied) not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. On initial recognition, Viohalco may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL, if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Financial assets \u2013 Business model assessment:
Viohalco makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with Viohalco companies\u2019continuing recognition of the assets.
Financial assets \u2013 Assessment whether contractual cash flows are solely payments of principal and interest:
For the purposes of this assessment, \u2018principal\u2019 is defined as the fair value of the financial asset on initial recognition. \u2018Interest\u2019 is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin. In assessing whether the contractual cash flows are solely payments of principal and interest, Viohalco considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, Viohalco considers:
contingent events that would change the amount or timing of cash flows;
terms that may adjust the contractual coupon rate, including variable-rate features;
prepayment and extension features; and
terms that limit the claim to cash flows from specified assets (e.g. non-recourse features).
Financial assets \u2013 Subsequent measurement and gains and losses:
Financial assets at FVTPL | These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. |
Financial assets at amortised cost | These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. |
Debt investments at FVOCI | These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. |
Equity investments at FVOCI | These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. |
Financial liabilities \u2013 Classification, subsequent measurement and gains and losses:
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial
liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
(c) Derecognition
Financial assets
Viohalco derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which Viohalco neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
Viohalco enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised.
Financial liabilities
Viohalco derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. Viohalco also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
(d) Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, Viohalco currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
(e) Derivatives and hedge accounting
Viohalco\u2019s companies hold derivative financial instruments designated as fair value or cash flow hedges. Derivatives are used to cover risks arising from changes in prices of metals, fluctuations of foreign exchange rates, changes in interest rates on borrowings and changes in prices of energy.
Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are generally recognised in profit or loss, unless the instrument qualifies for cash flow hedge accounting. Gain or losses from derivatives are classified as operating or financing expense according to the classification of the hedged item.
Power Purchase Agreements (PPAs)
Viohalco first assesses Power Purchase Agreements (PPAs) and the related Green certificates of origin (GoOs) contracts, following the requirements of IFRS 10, IFRS 11 or IAS 28, to conclude whether there is a control, joint control or a significant influence over the underlying renewable facilities and if not, then the requirements of IFRS 16 for lease recognition are considered. When the outcome of the above assessment is that Viohalco companies neither control, joint control or exercise significant influence nor leases the underlying facilities, then such agreements are accounted for as derivative financial instruments to the extent that the criteria for exemption from IFRS 9 scope as own-use contracts are not met.
Accordingly, where the agreements to deliver non-financial items (e.g. electricity, GoOs) are in accordance with the expected purchase requirements of Viohalco, the own-use criterion of IFRS 9 is met and these are accounted for as executory contracts. Thereafter, the executory agreements are further assessed whether they contain embedded derivatives which meet IFRS 9 requirements to be accounted for separately from their host contract.
Fair value hedge
Derivatives are designated as fair value hedges when the exposure to changes in the fair value of a recognized financial asset or liability is hedged.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the Consolidated Statement of Profit or Loss, along with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Cash flow hedge
The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognised in the \u2019Hedging reserve\u2018. Any ineffective proportion is recognized immediately in profit or loss.
The amounts recorded in \u201cHedging Reserve\u201d are reclassified to the consolidated statement of profit or loss in the same period or periods during which the hedged forecast cash flows affect profit or loss or the hedged item affects profit or loss. When a hedge
item is sold or when the hedging proportion no longer meets the hedge accounting criteria, hedge accounting is discontinued prospectively, the amounts recorded in \u2018Hedging reserve\u2019 remain as a reserve and are reclassified to the consolidated statement of profit or loss when the hedged asset affects profits or losses.
In the case of a hedge on a forecast future transaction which is no longer expected to be realized, the amounts recorded in \u2018Hedging reserve\u2019 are reclassified to the consolidated statement of profit or loss.
Viohalco\u2019s companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively), the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined.
5.16. Cash & cash equivalents
Cash and cash equivalents comprise cash on hand and deposits held at call with financial institutions and highly liquid deposits that are readily convertible (even before agreed maturity date) to known amounts of cash and subject to an insignificant risk of change in value.
5.17. Share capital
Shareholder\u2019s equity is composed of ordinary shares.
Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity. Income tax relating to transaction costs of an equity transaction is accounted in equity (see note 5.7).
5.18. Provisions
Provisions are measured by discounting the expected future cash flows at a pre-tax rate. The discount rate used for the determination of present value reflects current market assessments of the time value of money and the risks specific to the obligation.
Provisions are recognised when:
(a)\tThere is a present legal or constructive obligation as a result of past events.
(b)\tPayment is probable to settle the obligation.
(c)\tThe amount of the payment in question can be reliably estimated.
More specifically:
Provisions for pending court rulings are recognised when it is more likely than not, that a present obligation from this litigation exists, and payment is probable.
Assurance warranty provisions are recognised when the product is sold and according to historical experience (probability that sold products will need to be replaced). The initial estimate of warranty-related costs is revised annually.
Restructuring provisions are recognised only when Viohalco has a constructive obligation, which is when a detailed formal plan identifies the business or part of the business concerned, the location and number of employees affected, a detailed estimate of the associated costs and an appropriate timeline, and the employees affected have been notified of the plan\u2019s main features or when the company has already started to implement the plan.
A provision for onerous contracts is measured at the present value of the lower of the expected cost of terminating a contract and the expected net cost of continuing with the contract. Before the provision is established, Viohalco recognises any impairment loss on the associated assets with the contract.
5.19. Earnings per Share
Viohalco presents basic and diluted earnings per share. Basic earnings per share are calculated by dividing the net profit/ loss attributable to holders of the Company\u2019s ordinary shares by the average weighted number of outstanding ordinary shares during each period.
Diluted earnings per share are determined by adjusting the profit or loss attributable to holders of ordinary shares and the average weighted number of outstanding ordinary shares by the effect of all diluted eventual ordinary shares consisting of convertible notes and shares with options granted to the staff.
5.20. Operating profit
Operating profit is the result generated from the continuing principal revenue-producing activities of Viohalco as well as other income and expenses related to operating activities. Operating profit excludes net finance costs, share of profit of equity-accounted investees and income taxes.
5.21. Fair value measurement
\u2018Fair value\u2019 is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which Viohalco has access at that date. The fair value of a liability reflects its non-performance risk.
A number of Viohalco\u2019s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.
When one is available, Viohalco measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as \u2018active\u2019 if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
If there is no quoted price in an active market, then Viohalco uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction.
If an asset or a liability measured at fair value has a bid price and an ask price, then Viohalco measures assets and long positions at a bid price and liabilities and short positions at an ask price.
The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price \u2013 i.e. the fair value of the consideration given or received. If Viohalco determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability, nor based on a valuation technique for which any unobservable inputs are judged to be insignificant in relation to the measurement, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out.
5.22. CO2Emission rights
Emission rights are accounted for under the net liability method, based on which Viohalco companies recognize a liability for emissions during the calendar year. Viohalco companies estimate the free allowances allocated and the emissions produced during the year. When emissions exceed free allowances, the companies recognize the future liability based on the net deficit and the budget estimate for the EUA price during the year. The projected deficit is covered at market prices by purchasing EUAs either on a forward or spot basis. The total cost of all forward and spot purchases represents the realized liability during the year.
5.23. New standards, amendment to standards and interpretations of IFRS\u2019s
A number of new or amended standards became applicable for the current financial year and subsequent years. Viohalco has applied all of the new standards, interpretations and amendments to existing standards that were mandatory for the first time in the fiscal year beginning 1 January 2024 and none of the new or amended standards and interpretations has had material impact on recognition and measurement in the Consolidated Financial Statements.
Standards and Interpretations effective for the current financial year
The following new standard and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2024 and have been endorsed by the European Union:
Amendments to IAS 1 \u2018Presentation of Financial Statements: Classification of Liabilities as current or non-current\u2019, affect only the presentation of liabilities in the statement of financial position \u2014 not the amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose about those items. They:
\u2022\tClarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the \u201cright\u201d to defer settlement by at least twelve months and make explicit that only rights in place \u201cat the end of the reporting period\u201d should affect the classification of a liability;
\u2022\tClarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.
\u2022\tClarify how conditions with which an entity must comply within 12 months after the reporting period, such as covenants, affect the corresponding liability\u2019s classification.
Amendments to IAS 7 \u2018Statement of Cash Flows\u2019 and IFRS 7 \u2018Financial Instruments: Disclosures\u2019: Supplier Finance Arrangements.
The amendment describes the characteristics for which reporters will have to provide additional disclosures regarding the impact of supplier finance arrangements on liabilities, cash flows and exposure to liquidity risk.
As a result of the adoption of the amendments to IAS 7 and IFRS 7, the Group provided new disclosures for liabilities under supplier finance arrangements in note 27.
Amendments to IFRS 16 \u2018Leases\u2019: Lease Liability in a Sale and Leaseback.The amendments explain how an entity accounts for a sale and leaseback after the date of the transaction, specifically where some or all the lease payments are variable lease payments that do not depend on an index or rate. They state that, in subsequently measuring the lease liability, the seller-lessee determines \u2018lease payments\u2019 and \u2018revised lease payments\u2019 in a way that does not result in the seller-lessee recognising any amount of the gain or loss that relates to the right of use it retains. Any gains and losses relating to the full or partial termination of a lease continue to be recognised when they occur as these relate to the right of use terminated and not the right of use retained.
Standards and Interpretations effective for subsequent periods
Certain new accounting standards and amendments to accounting standards have been published that are not mandatory for 31 December 2024 reporting periods and have not been early adopted by the Group. The effect of the following amendments is currently assessed by management and they are not expected to have a material impact on Viohalco Consolidated Financial Statements in the current or future reporting periods.
Amendments to IAS 21 \u2018The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability\u2019 (effective 1 January 2025). IAS 21 previously did not cover how to determine exchange rates in case there is long-term lack of exchangeability and the spot rate to be applied by the company is not observable. The narrow scope amendments add specific requirements on:
\u2022\tDetermining when a currency is exchangeable into another and when it is not;
\u2022\tDetermining the exchange rate to apply in case a currency is not exchangeable;
\u2022\tAdditional disclosures to provide when a currency is not exchangeable.
The amendments have been endorsed by the EU.
Amendments to IFRS 9 and to IFRS 7: the Classification and Measurement of Financial Instruments (effective on 1 January 2026).On 30 May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to:
\u2022\tClarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
\u2022\tClarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
\u2022\tAdd new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement environment, social and governance (ESG) targets); and
\u2022\tUpdate the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).
The amendments have not yet been endorsed by the EU.
Amendments to IFRS 9 and to IFRS 7: Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7 (effective on 1 January 2026).On 18 December 2024, the IASB issued amendments to IFRS 9 and IFRS 7:
\u2022\tclarify the application of the \u2018own-use\u2019 requirements;
\u2022\tpermit hedge accounting if these contracts are used as hedging instruments; and
\u2022\tnew disclosure requirements to enable investors to understand the effect of these contracts on a company\u2019s financial performance and cash flows.
The amendments have not yet been endorsed by the EU.
IFRS 18 Presentation and Disclosure in Financial Statements (effective on 1 January 2027).The IASB has issued IFRS 18, the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:
\u2022\tthe structure of the statement of profit or loss;
\u2022\trequired disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity\u2019s financial statements (that is, management-defined performance measures); and
\u2022\tenhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its \u2018operating profit or loss\u2019.
IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information. The changes in presentation and disclosure required by IFRS 18 might require system and process changes.
The new standard has not yet been endorsed by the EU.
IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective on 1 January 2027). The International Accounting Standard Board (IASB) has issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 \u2018Subsidiaries without Public Accountability: Disclosures\u2019 permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries\u2019 financial statements while maintaining the usefulness of the information for users of their financial statements.
The new standard has not yet been endorsed by the EU.
Annual improvements Volume 11 (effective 1 January 2026).
Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:
IFRS 1 First-time Adoption of International Financial Reporting Standards;
IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
IFRS 9 Financial Instruments;
IFRS 10 Consolidated Financial Statements; and
IAS 7 Statement of Cash Flows.
The amendments have not yet been endorsed by the EU.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__24": { "value": "The Company has prepared the Consolidated Financial Statements on the basis that it will continue to operate as a going concern.", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__25": { "value": "3.\tFunctional currency and presentation currency
The functional and presentation currency of the parent Company is Euro. All amounts in the Consolidated Financial Statements are rounded to the nearest thousand, unless otherwise indicated. As such, due to rounding, figures shown as totals in certain tables may not be arithmetic aggregations of the figures that precede them.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__27-1": { "value": "4.\tUse of estimates and judgements
Preparing Financial Statements in line with IFRS requires that Management makes judgements, estimates and assumptions that affect the application of Viohalco\u2019s accounting policies and the reported amounts of assets, liabilities, income and expenses. The actual results may differ from these estimates.
Management\u2019s estimates and judgements are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
Information about judgements, assumptions and estimation uncertainties that have significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next financial year is included in the following notes:
Note 7.D \u2013 Revenue recognition;
Note 11.C.a \u2013 Measurement of defined benefit obligations: key actuarial assumptions;
Note 13.C \u2013 Recognition of deferred tax assets: availability of future taxable profits against which carried forward tax losses can be used;
Note 15.B - Recoverability of overdue receivable from a former customer in the Middle-East ;
Note 17.E - Impairment loss on Property, plant and equipment;
Note 18.F \u2013 Impairment loss test: key assumptions underlying recoverable amounts;
Note 19.B \u2013 Measurement of fair value of Investment property;
Note 23 & 30.C.3.e \u2013 Classification and measurement of derivatives arising from the Power Purchase Agreement (PPA) and the Green certificates of Origin (GoOs) contracts;
Note 30.C.1 \u2013 Measurement of Expected Credit Losses allowance for trade receivables and contract assets: key assumptions in determining loss rates.
B. Depreciation
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives and is generally recognised in profit or loss. Land is not depreciated. The component approach is followed if the cost of an asset comprises different major components of that asset with different useful lives.
Administrative buildings | 20-50 years |
Plants | 33-50 years |
Heavy machinery | 12-40 years |
Light machinery | 8-18 years |
Furniture | 4-10 years |
Other equipment | 4-12 years |
Transport means | 4-10 years |
Computers are included in the category \u201cOther equipment\u201d.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
C. Amortisation and useful lives
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is recognised in profit or loss. Goodwill and other intangible assets with indefinite useful lives are not amortised.
The estimated useful lives for the current and comparative periods are as follows:
Trademarks and licenses\t10 \u2013 15 years
Software programs\t3 \u2013 5 years
Some intangible assets included in \u201cTrademarks and licences\u201d have indefinite useful lives and are therefore not amortised, but subject to an impairment testing. See Note 19 for detailed information.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
D. Significant judgements in revenue recognition
In recognizing revenue, Viohalco companies make judgements regarding the timing of satisfaction of performance obligations, the identification of distinct performance obligations, as well as the transaction price and the amounts allocated to performance obligations.
The most significant of these estimates are described below:
- Contracts including multiple performance obligations are mainly identified in cables segment for turnkey projects and for customized products in cables, steel pipes and aluminium segments, as described in Note 5.3. In such cases, the total transaction price is allocated to these performance obligations on the basis of the relative standalone selling prices of the promised goods and services. If these goods and services are not sold separately, a cost plus margin approach is used to estimate the standalone selling price.
- Some contracts with customers involve a variable transaction cost as they include a volume or trade discount based on the total sales to the customer within a time period. In such case revenue is recognized based on the anticipated sales to the customer throughout the year, as these sales are realized and new orders are received and up to an extent it is highly probable that a significant reversal of cumulative revenue recognized will not be needed.
- A significant portion of contracts with customers, include transportation service. Transportation is considered as a separate performance obligation, if the customer can benefit from the offered transportation service and the promise to transport the goods to the customer is separately identifiable from the production of these customized products. Revenue for orders of standardized products is recognized at a specific point in time and transportation is not considered a separate performance obligation.
A. Post-employment plans
The following post-employment plans exist:
Defined contribution plans
All employees of Viohalco companies are insured for their main pension by the respective social insurance organizations as required by the local legislation. Once the contributions have been paid, Viohalco companies have no further payment obligations. The regular contributions constitute net periodic costs for the year in which they are due, and as such are included in employee benefit expenses.
Defined benefit plans
The employees of Viohalco\u2019s companies in some countries, mainly in Greece and Bulgaria, are entitled to receive a lump sum when they retire. This lump sum is determined in accordance with the years of service and the salary at the retirement date. This obligation meets the definition of defined benefit plans and charges the accumulated benefits through profit or loss in each period with a corresponding increase of the retirement liability. Benefits paid to pensioners during each period are charged against this liability. Viohalco\u2019s companies\u2019 liability for personnel benefits as of 31 December 2024 and 2023 is EUR 30,040 thousand and EUR 27,754 thousand respectively. These plans are unfunded.
Deferred tax assets relating to tax losses carried forward are recognised only if it is probable that they can be offset against future taxable profits. At each balance sheet date, Viohalco and its subsidiaries assess whether the realization of future tax benefits is sufficiently probable based on approved business plans. On 31 December 2024, the accumulated tax losses carried forward available for future use amounted to EUR 116.8 million (31 December 2023 EUR 137.1 million). Viohalco companies have recognised cumulatively a deferred tax asset of EUR 14.4 million (31 December 2023: EUR 22.8 million) on tax losses because management considered it probable that future taxable profits would be available against which such losses can be used. EUR 4.1 million relate to Viohalco subsidiaries located in Greece, EUR 10 million relate to Viohalco subsidiaries located in UK and the rest EUR 0.3 million to subsidiaries in other jurisdictions. This deferred tax asset corresponds to losses equal to EUR 57 million (31 December 2023: EUR 88.7 million).
Based on these estimates regarding future taxable profits, deferred tax assets have not been recognised in respect of tax losses carried forward for an amount of EUR 60 million (EUR 48 million in 2023). Out of these, tax losses equal to EUR 12.4 million expire in 2025 and 2026, while the rest expire between 2027 and 2029. According to the provisions of articles 49 and 72 of the Greek Law 4172/2013 concerning thin capitalization, net interest expense is deductible from current year\u2019s tax profits, if it is equal or less than 30% of EBITDA and any excess can be settled with future tax profits without time limitations. Based on the current approved business plans, the balance of the respective tax asset was equal to EUR 18.1 million, as at 31 December 2024 (31 December 2023: EUR 28.6 million).
B. Credit and market risks and impairment losses
During 2010, the subsidiary Corinth Pipeworks SA initiated in Greece and Dubai legal actions against a former customer in the Middle-East regarding the recovery of an overdue receivable of USD 24.8 million (EUR 23.3 million on 31 December 2024), plus legal interest.
Following a series of court proceedings, the Dubai Court of Cassation issued its final judgment, during 2017, and ruled to reject any counterclaim of the former customer and to confirm the amount due to Corinth Pipeworks.
In order to recover this long overdue balance, Corinth Pipeworks has initiated the enforcement procedures against the assets of the former customer that are located within any of the countries, where the Court of Cassation judgment issued against the former customer is enforceable (i.e. UAE and various other countries in the Middle East). There were no other substantial developments during 2024.
Corinth Pipeworks had recorded in the past an impairment loss for the whole outstanding amount, i.e. USD 24.8 million. However, the subsidiary will continue any and all actions required to collect the full amount of that receivable.
Information about Viohalco companies\u2019 exposure to credit and market risks, and impairment losses for trade and other receivables is included in Note 30.
E. Impairment loss of property, plant and equipment
On 31 December 2024, an impairment test was performed for each Cash Generating Unit (further CGU) for which indications of impairment loss existed as at 31 December 2024 concerning subsidiaries from steel segment. The identified indications of impairment concerned the losses incurred by certain CGUs over the last years. For the calculation of recoverable amount per CGU, cash flow projections based on a period of five years were used. The results of this test concluded that the property, plant and equipment used by these CGUs were not impaired at 31 December 2024, since the recoverable amount of each CGU exceeded the respective carrying amount.
In addition, impairment losses of EUR 0.9 million where recognised mainly in the aluminium (EUR 0.4 million) and cables segments (EUR 0.5 million) for specific fixed assets that indications of impairment were existed. The recoverable amount of related assets amounted EUR 1.3 million.
During 2024, assets with NBV equal to EUR 2.0 million (2023: EUR 4.5 million) were written off since they are no longer used by Viohalco companies and they are not expected to bring economic benefits in the future since they have became obsolete.
In addition, impairment tests were performed on real estate assets where indications of impairment exist, either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. Valuation techniques and the results relating to investment properties are outlined in note 19.
F. Impairment testing
(a)\tIntangible assets recognized for the CGU \u201cFulgor\u201d
As these intangible assets do not generate independent cash inflows, it was considered appropriate to carry out the impairment test on the basis of the Cash Generating Unit (CGU) of Fulgor submarine cables production plant, which incorporates these assets. To evaluate the value in use, cash flow projections based on estimates by management covering a five-year period (2025 \u2013 2029) were used. These estimates take into consideration the contracts already signed, as well as contracts estimated to be awarded in Greece and abroad.
The submarine cables CGU operates as a project-based business. Therefore, assumptions related to revenue and profitability growth are based on the contracts already signed, as well as those estimated to be undertaken in the forthcoming period. The main assumptions regarding the operations of submarine cables CGU and the projects to be executed within the five-year period are:
High-capacity utilization of Corinth plant owned by Fulgor, as the one observed during the last 4 years, based on contracts already awarded and those expected given the tendering activity. Given the existing backlog and the growth of renewables business in Europe and interconnection projects around the world, which are the most significant drivers in the attractive outlook for the offshore power generation market, the continuously high level of activity is expected to be retained throughout the period 2025-2029.
Capital expenditure of approx. EUR 183 million in the following 5 years, to cover estimated production and capacity needs. Capital expenditure reflects investments for maintenance as well as organic growth. For the terminal period, investments are set equal to depreciation.
The compound annual growth rate of revenue from offshore business for the five-year period is set to ca. 19% attributable to the assignment of new projects mainly in Greece and North Europe.
The EBITDA margin per offshore project is assumed in the range of 15%-25% of revenue. Estimated profitability per project varies due to different types of cables required, technical specifications, geographic region and the project\u2019s timeframe.
The compound annual growth rate of fixed operating expenses is assumed equal to ca. 5.8% for the five-year period.
Cash flows after the first five years were calculated using an estimated long term growth rate of 1.31%, which mainly reflects management\u2019s estimates for the world economy as well as long-term growth prospects of the offshore cable sector. The pre-tax rate used to discount these cash flows was 10.33% (2023: 11.34%), based on the following assumptions:
The risk-free rate was based on AAA European bond yields.
The country risk calculations were based on the expected future sales mix and the fact that the business unit is based in Greece.
The market risk premium was assumed equal to 3.94% (2023: 4.84%).
Commodity prices for copper and aluminium are intrinsically part of the impairment test assumptions; the metal price hedging activities undertaken, though, and the customized nature of the products sold by Fulgor, suggest that the value of the business unit is not significantly affected by fluctuations in commodity prices. Hence, a neutral result from metal price fluctuations is assumed in the context of the impairment test.
The results of this test indicated that the recoverable amount on 31 December 2024 exceeds the carrying amount of the CGU (equal to EUR 498 million) by EUR 1,004 million.
A sensitivity analysis was carried out on the key assumptions of the model (discount rates and growth in perpetuity), to examine the adequacy of the above headroom. Sensitivity analysis results indicated that the recoverable amount is comfortably exceeds the carrying value of the CGU. Assumptions may change as follows so as the recoverable amount equals the carrying amount:
Assumptions used | Change in rates (percentage points change) required for the recoverable amount to equal the carrying amount | |
Discount rate | 10.33% | + 10.9 ppc |
Terminal growth | 1.31% | - 47.1 ppc |
(b) Intangible assets recognized for the CGU \u201cReynolds\u201d
The recoverable amount of the CGU that includes this intangible asset (Reynolds Cuivre S.A.) was estimated based on the present value of the future cash flows expected to be derived from the CGU (value in use).
Cash flows after the first five years were calculated using an estimated growth rate of 1%, which reflects management\u2019s estimates for the growth prospects for the market. The after-tax rate used to discount these cash flows is 7.9% for the five year period and for the terminal value and was based on the following:
Risk free rate at 2.49%.
The market risk premium (including the country risk for operating in France) was determined at 4.5%.
Additional hurdle rate of 1%.
Sales revenue is estimated to grow at a 3.9% cumulative annual growth rate for the first five years, while operating earnings grow at a 1.3% rate. Average annual capex for the same period equals to EUR 143 thousand.
The results of this test indicated that the recoverable amount as at 31 December 2024 exceeds the carrying value of the CGU amounting to EUR 9.8 million by EUR 11 million.
Sensitivity and scenario analysis was carried out on the assumptions of the DCF model (sales growth, profitability, working capital requirements, and discount rates), to examine the adequacy of the headroom. The headroom was deemed adequate even under extremely stressed scenarios. A combination of negative growth, depressed margins and high working capital requirements and discount rates would be required for headroom to turn negative. Such a scenario was deemed unrealistic.
B. Measurement of fair value \u2013Impairment loss and subsequent reversal
On December 31st 2024, an impairment test was performed on all real estate assets (individual assets), either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. The results relating to owner occupied properties are outlined in note 17.
For investment property assets, an impairment loss of EUR 9.7 million was recorded and included in the line \u2019Other expense\u2018 of the consolidated statement of profit or loss. Impairment losses relate primarily to land and buildings, and the recoverable amount was based on its fair value less costs of disposal. The fair value of these properties was determined by external, independent property valuers, having appropriate recognized professional qualifications and recent experience in the location and category of the properties being valued. Valuation techniques are described in detail in the next paragraph. For segmental classification purposes, the impairment loss (recoverable amount EUR 38 million) was reported in real estate segment.
Asset valuations were also used to identify if previously recognized impairment losses could be reversed. As a result, EUR 2.8 million were reversed and included in the line \u2019Other Income\u2018 of the consolidated statement of profit or loss. The recoverable amount of these assets as at 31 December 2024 was EUR 88 million and they relate to the real estate segment.
The accumulated impairment losses carried forward as at 31 December 2024, amounts to EUR 50.3 million (31 December 2023: EUR 43.4 million).
The fair value of all properties reported in the line \u2019Investment property\u2018, as at 31 December 2024, is EUR 500 million (31 December 2023: EUR 484 million).
Valuation techniques and significant unobservable inputs (Level 2 & 3)
The fair value measurement for investment property has been categorized as a Level 2 & 3 regarding fair value hierarchy, based on the inputs to the valuation techniques used.
Valuations methods used to determine the fair value of these properties were reflecting the highest and best possible use.
-\tFor buildings currently rented or expected to be rented out in the foreseeable future, the income approach (either Discounted Cash Flow or Direct capitalization) method was used. DCF method considered the present value of net cash flows to be generated from each property, taking into account expected rental growth rate, void periods, occupancy rate, lease incentive costs such as rent-free periods and other relevant costs/fees obliged to be settled by the owning entity. The expected net cash flows are discounted using risk-adjusted discount rates that ranged between 7,46% - 12,50% and exit yields that ranged between 4,00-11,00%. Among other factors, the discount rate estimation considers the quality of each building, its location, tenant credit quality, lease terms and the expected market return. The estimated fair value would decrease if either the expected market rental growth was lower or the risk-adjusted discount rates were higher. Direct capitalization uses an All-Risk Yield in order for the current annual estimated rental value to be capitalized. ARY ranged between 4,00% - 12,00% and offers a holistic assessment of the property market\u2019s general condition.
-\tFor land plots and buildings, which were under construction and which are intended to be used as investment property in the future, the residual method was primarily used. The fair value determined by this method reflects the value of the property in its current condition.
-\tFor the utilitisation of a secondary valuation methodology, the comparative method (market approach) was appraised for the vast majority of the properties. According to this method the valuer estimates the market value of the subject asset by comparing the factors that mostly affect it. Such factors can be location, size, quality of construction etc. This method is based on estimation of the market price and what has been paid for similar properties under similar economic conditions. Each property is valued at a price at which similar ones in the area have recently sold with a subjective differential added (or subtracted) to adjust for the unique characteristics of the property that make it different from the benchmark properties, such as location, size, accessibility etc.
23. Derivatives
The following table sets out the carrying amount of derivatives:
Amounts in EUR thousands | 2024 | 2023 |
Non-current assets | \u00a0 | \u00a0 |
Interest rate swap contracts | 4,543 | 6,578 |
Forwards | - | 11 |
Electricity Swaps | - | 1,115 |
Commodity Swaps | 499 | - |
Future contracts | - | 122 |
Options | - | 730 |
Total | 5,042 | 8,557 |
Current assets | ||
Interest rate swap contracts | 3,060 | 6,029 |
Forwards | 1,552 | 8,013 |
Future contracts | 4,429 | 4,963 |
Commodity Swaps | 2,307 | 1,347 |
Total | 11,348 | 20,352 |
Non-current liabilities | ||
Interest rate swap contracts | 450 | 1,425 |
Future contracts | - | 1 |
Commodity Swaps | - | 3,598 |
Total | 450 | 5,023 |
Current liabilities | ||
Forwards | 6,212 | 794 |
Future contracts | 2,258 | 316 |
Commodity Swaps | - | 2,996 |
Total | 8,469 | 4,107 |
Variable rate loans and borrowings expose Viohalco companies to a rate volatility risk (cash flow risk). Viohalco subsidiaries entered into interest rates swaps contracts in order to be hedged by interest rate fluctuations, by transforming the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Hedge accounting
Viohalco\u2019s companies hold derivative financial instruments for cash flow and fair value hedges.
The abovementioned derivative financial instruments cover risks from:
Changes in the prices of metals;
Fluctuations of foreign exchange rates;
Changes in loan interest rates;
Fluctuations of energy.
The maturity and the nominal value of derivatives held by Viohalco\u2019s companies match the maturity and nominal value of the underlying assets / liabilities (hedged items).
Derivatives held by Viohalco\u2019s companies concern mainly:
Future contracts to hedge the risk from the change of the price of metals listed in LME (London Metal Exchange) and used in production of Viohalco\u2019s companies (i.e. mainly copper, aluminium and zinc). Such hedges are designated as cash flow hedges.
FX Forward and FX swaps to hedge the risk from the change in exchange rate of US Dollar and British Pound (i.e. currencies to which Viohalco\u2019s companies are mainly exposed). Such hedges are either designated as fair value or cash flow hedges depending on the item hedged. FX Forwards and FX swaps when used for hedging FX risk on outstanding receivables and suppliers denominated in foreign currency these instruments are designated under fair value hedging. FX forwards when used for hedging FX risk on the forecasted sales of goods or purchase of materials executed in foreign currency FX forward is hedging instruments designated under the cash flow method.
Variable rate loans and borrowings expose Viohalco companies to an interest rate volatility risk (cash flow risk). In order to hedge it, interest rate swaps are used to effectively transform the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Derivatives are recognised when Viohalco\u2019s companies enter into the transaction in order either to hedge the fair value of receivables, liabilities or commitments (fair value hedges) or highly probable transactions (cash flow hedges).
The change in fair value recognized in equity under cash flow hedging as at 31 December 2024 will be recycled to the consolidated statement of profit or loss during the next years, as some of the hedged events are expected to occur (the forecasted transactions will take place or the hedged items will affect profit or loss statement) within 2025 and some others at a later stage.
Viohalco companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively) the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined. The table below provides the results of the effectiveness test:
On 31 December 2024 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -468 | - | - |
Foreign exchange forwards | -6,454 | -2,733 | - |
Future contracts | 2,914 | -844 | -5 |
Electricity swaps | -1,115 | - | - |
Commodity swaps | 5,787 | -50 | - |
Total | 664 | -3,627 | -5 |
On 31 December 2023 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -5,754 | -\u00a0 | -\u00a0 |
Foreign exchange forwards | 7 | -\u00a0 | -\u00a0 |
Forward foreign exchange contracts | 4,997 | 806 | -\u00a0 |
Future contracts | 4,341 | 214 | 337 |
Electricity swaps | 1,115 | -\u00a0 | -\u00a0 |
Commodity swaps | -21,379 | \u00a0- | -\u00a0 |
Total | -16,673 | 1,020 | 337 |
Viohalco companies\u2019 results from the hedging activities recorded in the statement of profit or loss are presented for metal future contracts,foreign exchange contracts and the energy contracts in the \u2019Revenue\u2018 and the \u2019Cost of sales\u2018 while for interest rate swaps in the \u2019Finance income/ expenses\u2019. The amounts recognized in the consolidated statement of profit or loss are the following:
Amounts in EUR thousands | 2024 | 2023 |
Gain / loss (-) on future contracts | 16,978 | -733 |
Gain / loss (-) on FX forward contracts | -12,607 | 277 |
Gain / loss (-) on interest rate swap contracts | 2,756 | 3,170 |
Gain / loss (-) on commodity swap contracts | -1,104 | -8,561 |
\u00a0 | 6,023 | -5,848 |
Profit or loss related to derivatives used for cash flow hedging were recognized in other comprehensive income (Hedging reserve) as at 31 December 2024 and it will be recycled to profit or loss during the next financial years.
(a)\tTrade and other receivables
Viohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured.
When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.
Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables.
At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:
\u00a0 | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 294,046 | 301,265 |
Other EU member states | 254,604 | 255,645 |
Other European countries | 73,071 | 68,131 |
Asia | 37,798 | 42,842 |
America | 63,648 | 142,651 |
Africa | 19,897 | 14,290 |
Oceania | 554 | 949 |
Total | 743,619 | 825,773 |
(e) Energy price risk
Viohalco is exposed to risks arising from fluctuating energy prices. Within 2023, Viohalco companies signed a long-term Power Purchase Agreement (PPA), backed by various assets from Renewable Energy Sources (\u201cRES assets\u201d), in order to reduce its exposure to volatility in the energy prices.
Based on the initial agreement, the PPA provided for two distinct arrangements, comprising a physical delivery of electricity during the first two years (Period A), with a financial settlement of the difference between the fixed agreement price and the market electricity price, and for a virtual delivery of renewable electricity subsequently and to the end of the agreement (Period B), as produced by specified RES assets (i.e. photovoltaic facilities) yet to be constructed, with a financial settlement of the difference between the fixed agreement price for this subsequent period and the market electricity price. Period A of the PPA was assessed in accordance with IFRS 9 as an own-use agreement and was accounted for as an executory contract, while Period B of the initial PPA was assessed as comprising a derivative financial instrument, which was accounted for at fair value through profit or loss other comprehensive income.
In August 2024, an addendum to the initial contract was signed, altering effective from 15.03.2024, altering mainly the nature of the contract for Period B as well as the duration and the pricing for both period A and B. More Specifically, the delivery method in period B has been changed from virtual to physical delivery via injection and absorption declarations in the Day-Ahead Market, through an intermediary supplier, resulting in a physical delivery contract performed on similar terms as the existing one in period A.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAccountingJudgementsAndEstimatesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__28-1": { "value": "4.\tUse of estimates and judgementsPreparing Financial Statements in line with IFRS requires that Management makes judgements, estimates and assumptions that affect the application of Viohalco\u2019s accounting policies and the reported amounts of assets, liabilities, income and expenses. The actual results may differ from these estimates. Management\u2019s estimates and judgements are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.Information about judgements, assumptions and estimation uncertainties that have significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next financial year is included in the following notes:Note 7.D \u2013 Revenue recognition;Note 11.C.a \u2013 Measurement of defined benefit obligations: key actuarial assumptions;Note 13.C \u2013 Recognition of deferred tax assets: availability of future taxable profits against which carried forward tax losses can be used;Note 15.B - Recoverability of overdue receivable from a former customer in the Middle-East ;Note 17.E - Impairment loss on Property, plant and equipment;Note 18.F \u2013 Impairment loss test: key assumptions underlying recoverable amounts; Note 19.B \u2013 Measurement of fair value of Investment property;Note 23 & 30.C.3.e \u2013 Classification and measurement of derivatives arising from the Power Purchase Agreement (PPA) and the Green certificates of Origin (GoOs) contracts;Note 30.C.1 \u2013 Measurement of Expected Credit Losses allowance for trade receivables and contract assets: key assumptions in determining loss rates.B. Depreciation Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives and is generally recognised in profit or loss. Land is not depreciated. The component approach is followed if the cost of an asset comprises different major components of that asset with different useful lives.Administrative buildings20-50 yearsPlants33-50 yearsHeavy machinery12-40 yearsLight machinery8-18 yearsFurniture4-10 yearsOther equipment4-12 yearsTransport means4-10 yearsComputers are included in the category \u201cOther equipment\u201d.Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.C. Amortisation and useful livesAmortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is recognised in profit or loss. Goodwill and other intangible assets with indefinite useful lives are not amortised.The estimated useful lives for the current and comparative periods are as follows:Trademarks and licenses\t10 \u2013 15 yearsSoftware programs\t3 \u2013 5 yearsSome intangible assets included in \u201cTrademarks and licences\u201d have indefinite useful lives and are therefore not amortised, but subject to an impairment testing. See Note 19 for detailed information.Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.D. Significant judgements in revenue recognitionIn recognizing revenue, Viohalco companies make judgements regarding the timing of satisfaction of performance obligations, the identification of distinct performance obligations, as well as the transaction price and the amounts allocated to performance obligations. The most significant of these estimates are described below: - Contracts including multiple performance obligations are mainly identified in cables segment for turnkey projects and for customized products in cables, steel pipes and aluminium segments, as described in Note 5.3. In such cases, the total transaction price is allocated to these performance obligations on the basis of the relative standalone selling prices of the promised goods and services. If these goods and services are not sold separately, a cost plus margin approach is used to estimate the standalone selling price.- Some contracts with customers involve a variable transaction cost as they include a volume or trade discount based on the total sales to the customer within a time period. In such case revenue is recognized based on the anticipated sales to the customer throughout the year, as these sales are realized and new orders are received and up to an extent it is highly probable that a significant reversal of cumulative revenue recognized will not be needed. - A significant portion of contracts with customers, include transportation service. Transportation is considered as a separate performance obligation, if the customer can benefit from the offered transportation service and the promise to transport the goods to the customer is separately identifiable from the production of these customized products. Revenue for orders of standardized products is recognized at a specific point in time and transportation is not considered a separate performance obligation.A. Post-employment plansThe following post-employment plans exist:Defined contribution plansAll employees of Viohalco companies are insured for their main pension by the respective social insurance organizations as required by the local legislation. Once the contributions have been paid, Viohalco companies have no further payment obligations. The regular contributions constitute net periodic costs for the year in which they are due, and as such are included in employee benefit expenses.Defined benefit plansThe employees of Viohalco\u2019s companies in some countries, mainly in Greece and Bulgaria, are entitled to receive a lump sum when they retire. This lump sum is determined in accordance with the years of service and the salary at the retirement date. This obligation meets the definition of defined benefit plans and charges the accumulated benefits through profit or loss in each period with a corresponding increase of the retirement liability. Benefits paid to pensioners during each period are charged against this liability. Viohalco\u2019s companies\u2019 liability for personnel benefits as of 31 December 2024 and 2023 is EUR 30,040 thousand and EUR 27,754 thousand respectively. These plans are unfunded. Deferred tax assets relating to tax losses carried forward are recognised only if it is probable that they can be offset against future taxable profits. At each balance sheet date, Viohalco and its subsidiaries assess whether the realization of future tax benefits is sufficiently probable based on approved business plans. On 31 December 2024, the accumulated tax losses carried forward available for future use amounted to EUR 116.8 million (31 December 2023 EUR 137.1 million). Viohalco companies have recognised cumulatively a deferred tax asset of EUR 14.4 million (31 December 2023: EUR 22.8 million) on tax losses because management considered it probable that future taxable profits would be available against which such losses can be used. EUR 4.1 million relate to Viohalco subsidiaries located in Greece, EUR 10 million relate to Viohalco subsidiaries located in UK and the rest EUR 0.3 million to subsidiaries in other jurisdictions. This deferred tax asset corresponds to losses equal to EUR 57 million (31 December 2023: EUR 88.7 million).Based on these estimates regarding future taxable profits, deferred tax assets have not been recognised in respect of tax losses carried forward for an amount of EUR 60 million (EUR 48 million in 2023). Out of these, tax losses equal to EUR 12.4 million expire in 2025 and 2026, while the rest expire between 2027 and 2029. According to the provisions of articles 49 and 72 of the Greek Law 4172/2013 concerning thin capitalization, net interest expense is deductible from current year\u2019s tax profits, if it is equal or less than 30% of EBITDA and any excess can be settled with future tax profits without time limitations. Based on the current approved business plans, the balance of the respective tax asset was equal to EUR 18.1 million, as at 31 December 2024 (31 December 2023: EUR 28.6 million). B. Credit and market risks and impairment lossesDuring 2010, the subsidiary Corinth Pipeworks SA initiated in Greece and Dubai legal actions against a former customer in the Middle-East regarding the recovery of an overdue receivable of USD 24.8 million (EUR 23.3 million on 31 December 2024), plus legal interest.Following a series of court proceedings, the Dubai Court of Cassation issued its final judgment, during 2017, and ruled to reject any counterclaim of the former customer and to confirm the amount due to Corinth Pipeworks.In order to recover this long overdue balance, Corinth Pipeworks has initiated the enforcement procedures against the assets of the former customer that are located within any of the countries, where the Court of Cassation judgment issued against the former customer is enforceable (i.e. UAE and various other countries in the Middle East). There were no other substantial developments during 2024. Corinth Pipeworks had recorded in the past an impairment loss for the whole outstanding amount, i.e. USD 24.8 million. However, the subsidiary will continue any and all actions required to collect the full amount of that receivable.Information about Viohalco companies\u2019 exposure to credit and market risks, and impairment losses for trade and other receivables is included in Note 30.E. Impairment loss of property, plant and equipmentOn 31 December 2024, an impairment test was performed for each Cash Generating Unit (further CGU) for which indications of impairment loss existed as at 31 December 2024 concerning subsidiaries from steel segment. The identified indications of impairment concerned the losses incurred by certain CGUs over the last years. For the calculation of recoverable amount per CGU, cash flow projections based on a period of five years were used. The results of this test concluded that the property, plant and equipment used by these CGUs were not impaired at 31 December 2024, since the recoverable amount of each CGU exceeded the respective carrying amount. In addition, impairment losses of EUR 0.9 million where recognised mainly in the aluminium (EUR 0.4 million) and cables segments (EUR 0.5 million) for specific fixed assets that indications of impairment were existed. The recoverable amount of related assets amounted EUR 1.3 million.During 2024, assets with NBV equal to EUR 2.0 million (2023: EUR 4.5 million) were written off since they are no longer used by Viohalco companies and they are not expected to bring economic benefits in the future since they have became obsolete.In addition, impairment tests were performed on real estate assets where indications of impairment exist, either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. Valuation techniques and the results relating to investment properties are outlined in note 19.F. Impairment testing(a)\tIntangible assets recognized for the CGU \u201cFulgor\u201dAs these intangible assets do not generate independent cash inflows, it was considered appropriate to carry out the impairment test on the basis of the Cash Generating Unit (CGU) of Fulgor submarine cables production plant, which incorporates these assets. To evaluate the value in use, cash flow projections based on estimates by management covering a five-year period (2025 \u2013 2029) were used. These estimates take into consideration the contracts already signed, as well as contracts estimated to be awarded in Greece and abroad.The submarine cables CGU operates as a project-based business. Therefore, assumptions related to revenue and profitability growth are based on the contracts already signed, as well as those estimated to be undertaken in the forthcoming period. The main assumptions regarding the operations of submarine cables CGU and the projects to be executed within the five-year period are:High-capacity utilization of Corinth plant owned by Fulgor, as the one observed during the last 4 years, based on contracts already awarded and those expected given the tendering activity. Given the existing backlog and the growth of renewables business in Europe and interconnection projects around the world, which are the most significant drivers in the attractive outlook for the offshore power generation market, the continuously high level of activity is expected to be retained throughout the period 2025-2029.Capital expenditure of approx. EUR 183 million in the following 5 years, to cover estimated production and capacity needs. Capital expenditure reflects investments for maintenance as well as organic growth. For the terminal period, investments are set equal to depreciation.The compound annual growth rate of revenue from offshore business for the five-year period is set to ca. 19% attributable to the assignment of new projects mainly in Greece and North Europe.The EBITDA margin per offshore project is assumed in the range of 15%-25% of revenue. Estimated profitability per project varies due to different types of cables required, technical specifications, geographic region and the project\u2019s timeframe.The compound annual growth rate of fixed operating expenses is assumed equal to ca. 5.8% for the five-year period.Cash flows after the first five years were calculated using an estimated long term growth rate of 1.31%, which mainly reflects management\u2019s estimates for the world economy as well as long-term growth prospects of the offshore cable sector. The pre-tax rate used to discount these cash flows was 10.33% (2023: 11.34%), based on the following assumptions:The risk-free rate was based on AAA European bond yields.The country risk calculations were based on the expected future sales mix and the fact that the business unit is based in Greece.The market risk premium was assumed equal to 3.94% (2023: 4.84%).Commodity prices for copper and aluminium are intrinsically part of the impairment test assumptions; the metal price hedging activities undertaken, though, and the customized nature of the products sold by Fulgor, suggest that the value of the business unit is not significantly affected by fluctuations in commodity prices. Hence, a neutral result from metal price fluctuations is assumed in the context of the impairment test.The results of this test indicated that the recoverable amount on 31 December 2024 exceeds the carrying amount of the CGU (equal to EUR 498 million) by EUR 1,004 million.A sensitivity analysis was carried out on the key assumptions of the model (discount rates and growth in perpetuity), to examine the adequacy of the above headroom. Sensitivity analysis results indicated that the recoverable amount is comfortably exceeds the carrying value of the CGU. Assumptions may change as follows so as the recoverable amount equals the carrying amount:Assumptions usedChange in rates (percentage points change) required for the recoverable amount to equal the carrying amountDiscount rate10.33%+ 10.9 ppcTerminal growth1.31%- 47.1 ppc(b) Intangible assets recognized for the CGU \u201cReynolds\u201dThe recoverable amount of the CGU that includes this intangible asset (Reynolds Cuivre S.A.) was estimated based on the present value of the future cash flows expected to be derived from the CGU (value in use).Cash flows after the first five years were calculated using an estimated growth rate of 1%, which reflects management\u2019s estimates for the growth prospects for the market. The after-tax rate used to discount these cash flows is 7.9% for the five year period and for the terminal value and was based on the following:Risk free rate at 2.49%.The market risk premium (including the country risk for operating in France) was determined at 4.5%.Additional hurdle rate of 1%.Sales revenue is estimated to grow at a 3.9% cumulative annual growth rate for the first five years, while operating earnings grow at a 1.3% rate. Average annual capex for the same period equals to EUR 143 thousand.The results of this test indicated that the recoverable amount as at 31 December 2024 exceeds the carrying value of the CGU amounting to EUR 9.8 million by EUR 11 million.Sensitivity and scenario analysis was carried out on the assumptions of the DCF model (sales growth, profitability, working capital requirements, and discount rates), to examine the adequacy of the headroom. The headroom was deemed adequate even under extremely stressed scenarios. A combination of negative growth, depressed margins and high working capital requirements and discount rates would be required for headroom to turn negative. Such a scenario was deemed unrealistic.B. Measurement of fair value \u2013Impairment loss and subsequent reversalOn December 31st 2024, an impairment test was performed on all real estate assets (individual assets), either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. The results relating to owner occupied properties are outlined in note 17.For investment property assets, an impairment loss of EUR 9.7 million was recorded and included in the line \u2019Other expense\u2018 of the consolidated statement of profit or loss. Impairment losses relate primarily to land and buildings, and the recoverable amount was based on its fair value less costs of disposal. The fair value of these properties was determined by external, independent property valuers, having appropriate recognized professional qualifications and recent experience in the location and category of the properties being valued. Valuation techniques are described in detail in the next paragraph. For segmental classification purposes, the impairment loss (recoverable amount EUR 38 million) was reported in real estate segment.Asset valuations were also used to identify if previously recognized impairment losses could be reversed. As a result, EUR 2.8 million were reversed and included in the line \u2019Other Income\u2018 of the consolidated statement of profit or loss. The recoverable amount of these assets as at 31 December 2024 was EUR 88 million and they relate to the real estate segment.The accumulated impairment losses carried forward as at 31 December 2024, amounts to EUR 50.3 million (31 December 2023: EUR 43.4 million).The fair value of all properties reported in the line \u2019Investment property\u2018, as at 31 December 2024, is EUR 500 million (31 December 2023: EUR 484 million).Valuation techniques and significant unobservable inputs (Level 2 & 3)The fair value measurement for investment property has been categorized as a Level 2 & 3 regarding fair value hierarchy, based on the inputs to the valuation techniques used. Valuations methods used to determine the fair value of these properties were reflecting the highest and best possible use.-\tFor buildings currently rented or expected to be rented out in the foreseeable future, the income approach (either Discounted Cash Flow or Direct capitalization) method was used. DCF method considered the present value of net cash flows to be generated from each property, taking into account expected rental growth rate, void periods, occupancy rate, lease incentive costs such as rent-free periods and other relevant costs/fees obliged to be settled by the owning entity. The expected net cash flows are discounted using risk-adjusted discount rates that ranged between 7,46% - 12,50% and exit yields that ranged between 4,00-11,00%. Among other factors, the discount rate estimation considers the quality of each building, its location, tenant credit quality, lease terms and the expected market return. The estimated fair value would decrease if either the expected market rental growth was lower or the risk-adjusted discount rates were higher. Direct capitalization uses an All-Risk Yield in order for the current annual estimated rental value to be capitalized. ARY ranged between 4,00% - 12,00% and offers a holistic assessment of the property market\u2019s general condition.-\tFor land plots and buildings, which were under construction and which are intended to be used as investment property in the future, the residual method was primarily used. The fair value determined by this method reflects the value of the property in its current condition. -\tFor the utilitisation of a secondary valuation methodology, the comparative method (market approach) was appraised for the vast majority of the properties. According to this method the valuer estimates the market value of the subject asset by comparing the factors that mostly affect it. Such factors can be location, size, quality of construction etc. This method is based on estimation of the market price and what has been paid for similar properties under similar economic conditions. Each property is valued at a price at which similar ones in the area have recently sold with a subjective differential added (or subtracted) to adjust for the unique characteristics of the property that make it different from the benchmark properties, such as location, size, accessibility etc.23. DerivativesThe following table sets out the carrying amount of derivatives:Amounts in EUR thousands 20242023Non-current assets\u00a0\u00a0Interest rate swap contracts4,5436,578Forwards-11Electricity Swaps-1,115Commodity Swaps499-Future contracts-122Options-730Total5,0428,557Current assetsInterest rate swap contracts3,0606,029Forwards1,5528,013Future contracts4,4294,963Commodity Swaps2,3071,347Total11,34820,352Non-current liabilitiesInterest rate swap contracts4501,425Future contracts-1Commodity Swaps-3,598Total4505,023Current liabilitiesForwards6,212794Future contracts2,258316Commodity Swaps-2,996Total8,4694,107Variable rate loans and borrowings expose Viohalco companies to a rate volatility risk (cash flow risk). Viohalco subsidiaries entered into interest rates swaps contracts in order to be hedged by interest rate fluctuations, by transforming the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.Hedge accountingViohalco\u2019s companies hold derivative financial instruments for cash flow and fair value hedges. The abovementioned derivative financial instruments cover risks from: Changes in the prices of metals; Fluctuations of foreign exchange rates; Changes in loan interest rates;Fluctuations of energy. The maturity and the nominal value of derivatives held by Viohalco\u2019s companies match the maturity and nominal value of the underlying assets / liabilities (hedged items).Derivatives held by Viohalco\u2019s companies concern mainly: Future contracts to hedge the risk from the change of the price of metals listed in LME (London Metal Exchange) and used in production of Viohalco\u2019s companies (i.e. mainly copper, aluminium and zinc). Such hedges are designated as cash flow hedges. FX Forward and FX swaps to hedge the risk from the change in exchange rate of US Dollar and British Pound (i.e. currencies to which Viohalco\u2019s companies are mainly exposed). Such hedges are either designated as fair value or cash flow hedges depending on the item hedged. FX Forwards and FX swaps when used for hedging FX risk on outstanding receivables and suppliers denominated in foreign currency these instruments are designated under fair value hedging. FX forwards when used for hedging FX risk on the forecasted sales of goods or purchase of materials executed in foreign currency FX forward is hedging instruments designated under the cash flow method.Variable rate loans and borrowings expose Viohalco companies to an interest rate volatility risk (cash flow risk). In order to hedge it, interest rate swaps are used to effectively transform the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.Derivatives are recognised when Viohalco\u2019s companies enter into the transaction in order either to hedge the fair value of receivables, liabilities or commitments (fair value hedges) or highly probable transactions (cash flow hedges).The change in fair value recognized in equity under cash flow hedging as at 31 December 2024 will be recycled to the consolidated statement of profit or loss during the next years, as some of the hedged events are expected to occur (the forecasted transactions will take place or the hedged items will affect profit or loss statement) within 2025 and some others at a later stage.Viohalco companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively) the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined. The table below provides the results of the effectiveness test:On 31 December 2024Effective portion of derivativesIneffective portion of derivativesDerivatives not qualifying for hedge accountingInterest rate swap contracts-468--Foreign exchange forwards-6,454-2,733-Future contracts2,914 -844 -5Electricity swaps -1,115--Commodity swaps5,787 -50-Total664 -3,627 -5On 31 December 2023Effective portion of derivativesIneffective portion of derivativesDerivatives not qualifying for hedge accountingInterest rate swap contracts-5,754-\u00a0-\u00a0Foreign exchange forwards7-\u00a0-\u00a0Forward foreign exchange contracts4,997806-\u00a0Future contracts4,341214337Electricity swaps1,115-\u00a0-\u00a0Commodity swaps-21,379\u00a0--\u00a0Total-16,6731,020337Viohalco companies\u2019 results from the hedging activities recorded in the statement of profit or loss are presented for metal future contracts,foreign exchange contracts and the energy contracts in the \u2019Revenue\u2018 and the \u2019Cost of sales\u2018 while for interest rate swaps in the \u2019Finance income/ expenses\u2019. The amounts recognized in the consolidated statement of profit or loss are the following:Amounts in EUR thousands 20242023Gain / loss (-) on future contracts16,978-733Gain / loss (-) on FX forward contracts-12,607277Gain / loss (-) on interest rate swap contracts2,7563,170Gain / loss (-) on commodity swap contracts-1,104-8,561\u00a06,023-5,848Profit or loss related to derivatives used for cash flow hedging were recognized in other comprehensive income (Hedging reserve) as at 31 December 2024 and it will be recycled to profit or loss during the next financial years. (a)\tTrade and other receivablesViohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured. When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables. At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:\u00a0Amounts in EUR thousands 20242023Greece294,046301,265Other EU member states254,604255,645Other European countries73,07168,131Asia37,79842,842America63,648142,651Africa19,89714,290Oceania554949Total743,619825,773(e) Energy price riskViohalco is exposed to risks arising from fluctuating energy prices. Within 2023, Viohalco companies signed a long-term Power Purchase Agreement (PPA), backed by various assets from Renewable Energy Sources (\u201cRES assets\u201d), in order to reduce its exposure to volatility in the energy prices.Based on the initial agreement, the PPA provided for two distinct arrangements, comprising a physical delivery of electricity during the first two years (Period A), with a financial settlement of the difference between the fixed agreement price and the market electricity price, and for a virtual delivery of renewable electricity subsequently and to the end of the agreement (Period B), as produced by specified RES assets (i.e. photovoltaic facilities) yet to be constructed, with a financial settlement of the difference between the fixed agreement price for this subsequent period and the market electricity price. Period A of the PPA was assessed in accordance with IFRS 9 as an own-use agreement and was accounted for as an executory contract, while Period B of the initial PPA was assessed as comprising a derivative financial instrument, which was accounted for at fair value through profit or loss other comprehensive income.In August 2024, an addendum to the initial contract was signed, altering effective from 15.03.2024, altering mainly the nature of the contract for Period B as well as the duration and the pricing for both period A and B. More Specifically, the delivery method in period B has been changed from virtual to physical delivery via injection and absorption declarations in the Day-Ahead Market, through an intermediary supplier, resulting in a physical delivery contract performed on similar terms as the existing one in period A. ", "dimensions": { "concept": "ifrs-full:ExplanationOfAssumptionAboutFutureWithSignificantRiskOfResultingInMaterialAdjustments", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__29-1": { "value": "4.\tUse of estimates and judgements
Preparing Financial Statements in line with IFRS requires that Management makes judgements, estimates and assumptions that affect the application of Viohalco\u2019s accounting policies and the reported amounts of assets, liabilities, income and expenses. The actual results may differ from these estimates.
Management\u2019s estimates and judgements are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
Information about judgements, assumptions and estimation uncertainties that have significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next financial year is included in the following notes:
Note 7.D \u2013 Revenue recognition;
Note 11.C.a \u2013 Measurement of defined benefit obligations: key actuarial assumptions;
Note 13.C \u2013 Recognition of deferred tax assets: availability of future taxable profits against which carried forward tax losses can be used;
Note 15.B - Recoverability of overdue receivable from a former customer in the Middle-East ;
Note 17.E - Impairment loss on Property, plant and equipment;
Note 18.F \u2013 Impairment loss test: key assumptions underlying recoverable amounts;
Note 19.B \u2013 Measurement of fair value of Investment property;
Note 23 & 30.C.3.e \u2013 Classification and measurement of derivatives arising from the Power Purchase Agreement (PPA) and the Green certificates of Origin (GoOs) contracts;
Note 30.C.1 \u2013 Measurement of Expected Credit Losses allowance for trade receivables and contract assets: key assumptions in determining loss rates.
B. Depreciation
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives and is generally recognised in profit or loss. Land is not depreciated. The component approach is followed if the cost of an asset comprises different major components of that asset with different useful lives.
Administrative buildings | 20-50 years |
Plants | 33-50 years |
Heavy machinery | 12-40 years |
Light machinery | 8-18 years |
Furniture | 4-10 years |
Other equipment | 4-12 years |
Transport means | 4-10 years |
Computers are included in the category \u201cOther equipment\u201d.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
C. Amortisation and useful lives
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is recognised in profit or loss. Goodwill and other intangible assets with indefinite useful lives are not amortised.
The estimated useful lives for the current and comparative periods are as follows:
Trademarks and licenses\t10 \u2013 15 years
Software programs\t3 \u2013 5 years
Some intangible assets included in \u201cTrademarks and licences\u201d have indefinite useful lives and are therefore not amortised, but subject to an impairment testing. See Note 19 for detailed information.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
D. Significant judgements in revenue recognition
In recognizing revenue, Viohalco companies make judgements regarding the timing of satisfaction of performance obligations, the identification of distinct performance obligations, as well as the transaction price and the amounts allocated to performance obligations.
The most significant of these estimates are described below:
- Contracts including multiple performance obligations are mainly identified in cables segment for turnkey projects and for customized products in cables, steel pipes and aluminium segments, as described in Note 5.3. In such cases, the total transaction price is allocated to these performance obligations on the basis of the relative standalone selling prices of the promised goods and services. If these goods and services are not sold separately, a cost plus margin approach is used to estimate the standalone selling price.
- Some contracts with customers involve a variable transaction cost as they include a volume or trade discount based on the total sales to the customer within a time period. In such case revenue is recognized based on the anticipated sales to the customer throughout the year, as these sales are realized and new orders are received and up to an extent it is highly probable that a significant reversal of cumulative revenue recognized will not be needed.
- A significant portion of contracts with customers, include transportation service. Transportation is considered as a separate performance obligation, if the customer can benefit from the offered transportation service and the promise to transport the goods to the customer is separately identifiable from the production of these customized products. Revenue for orders of standardized products is recognized at a specific point in time and transportation is not considered a separate performance obligation.
A. Post-employment plans
The following post-employment plans exist:
Defined contribution plans
All employees of Viohalco companies are insured for their main pension by the respective social insurance organizations as required by the local legislation. Once the contributions have been paid, Viohalco companies have no further payment obligations. The regular contributions constitute net periodic costs for the year in which they are due, and as such are included in employee benefit expenses.
Defined benefit plans
The employees of Viohalco\u2019s companies in some countries, mainly in Greece and Bulgaria, are entitled to receive a lump sum when they retire. This lump sum is determined in accordance with the years of service and the salary at the retirement date. This obligation meets the definition of defined benefit plans and charges the accumulated benefits through profit or loss in each period with a corresponding increase of the retirement liability. Benefits paid to pensioners during each period are charged against this liability. Viohalco\u2019s companies\u2019 liability for personnel benefits as of 31 December 2024 and 2023 is EUR 30,040 thousand and EUR 27,754 thousand respectively. These plans are unfunded.
Deferred tax assets relating to tax losses carried forward are recognised only if it is probable that they can be offset against future taxable profits. At each balance sheet date, Viohalco and its subsidiaries assess whether the realization of future tax benefits is sufficiently probable based on approved business plans. On 31 December 2024, the accumulated tax losses carried forward available for future use amounted to EUR 116.8 million (31 December 2023 EUR 137.1 million). Viohalco companies have recognised cumulatively a deferred tax asset of EUR 14.4 million (31 December 2023: EUR 22.8 million) on tax losses because management considered it probable that future taxable profits would be available against which such losses can be used. EUR 4.1 million relate to Viohalco subsidiaries located in Greece, EUR 10 million relate to Viohalco subsidiaries located in UK and the rest EUR 0.3 million to subsidiaries in other jurisdictions. This deferred tax asset corresponds to losses equal to EUR 57 million (31 December 2023: EUR 88.7 million).
Based on these estimates regarding future taxable profits, deferred tax assets have not been recognised in respect of tax losses carried forward for an amount of EUR 60 million (EUR 48 million in 2023). Out of these, tax losses equal to EUR 12.4 million expire in 2025 and 2026, while the rest expire between 2027 and 2029. According to the provisions of articles 49 and 72 of the Greek Law 4172/2013 concerning thin capitalization, net interest expense is deductible from current year\u2019s tax profits, if it is equal or less than 30% of EBITDA and any excess can be settled with future tax profits without time limitations. Based on the current approved business plans, the balance of the respective tax asset was equal to EUR 18.1 million, as at 31 December 2024 (31 December 2023: EUR 28.6 million).
B. Credit and market risks and impairment losses
During 2010, the subsidiary Corinth Pipeworks SA initiated in Greece and Dubai legal actions against a former customer in the Middle-East regarding the recovery of an overdue receivable of USD 24.8 million (EUR 23.3 million on 31 December 2024), plus legal interest.
Following a series of court proceedings, the Dubai Court of Cassation issued its final judgment, during 2017, and ruled to reject any counterclaim of the former customer and to confirm the amount due to Corinth Pipeworks.
In order to recover this long overdue balance, Corinth Pipeworks has initiated the enforcement procedures against the assets of the former customer that are located within any of the countries, where the Court of Cassation judgment issued against the former customer is enforceable (i.e. UAE and various other countries in the Middle East). There were no other substantial developments during 2024.
Corinth Pipeworks had recorded in the past an impairment loss for the whole outstanding amount, i.e. USD 24.8 million. However, the subsidiary will continue any and all actions required to collect the full amount of that receivable.
Information about Viohalco companies\u2019 exposure to credit and market risks, and impairment losses for trade and other receivables is included in Note 30.
E. Impairment loss of property, plant and equipment
On 31 December 2024, an impairment test was performed for each Cash Generating Unit (further CGU) for which indications of impairment loss existed as at 31 December 2024 concerning subsidiaries from steel segment. The identified indications of impairment concerned the losses incurred by certain CGUs over the last years. For the calculation of recoverable amount per CGU, cash flow projections based on a period of five years were used. The results of this test concluded that the property, plant and equipment used by these CGUs were not impaired at 31 December 2024, since the recoverable amount of each CGU exceeded the respective carrying amount.
In addition, impairment losses of EUR 0.9 million where recognised mainly in the aluminium (EUR 0.4 million) and cables segments (EUR 0.5 million) for specific fixed assets that indications of impairment were existed. The recoverable amount of related assets amounted EUR 1.3 million.
During 2024, assets with NBV equal to EUR 2.0 million (2023: EUR 4.5 million) were written off since they are no longer used by Viohalco companies and they are not expected to bring economic benefits in the future since they have became obsolete.
In addition, impairment tests were performed on real estate assets where indications of impairment exist, either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. Valuation techniques and the results relating to investment properties are outlined in note 19.
F. Impairment testing
(a)\tIntangible assets recognized for the CGU \u201cFulgor\u201d
As these intangible assets do not generate independent cash inflows, it was considered appropriate to carry out the impairment test on the basis of the Cash Generating Unit (CGU) of Fulgor submarine cables production plant, which incorporates these assets. To evaluate the value in use, cash flow projections based on estimates by management covering a five-year period (2025 \u2013 2029) were used. These estimates take into consideration the contracts already signed, as well as contracts estimated to be awarded in Greece and abroad.
The submarine cables CGU operates as a project-based business. Therefore, assumptions related to revenue and profitability growth are based on the contracts already signed, as well as those estimated to be undertaken in the forthcoming period. The main assumptions regarding the operations of submarine cables CGU and the projects to be executed within the five-year period are:
High-capacity utilization of Corinth plant owned by Fulgor, as the one observed during the last 4 years, based on contracts already awarded and those expected given the tendering activity. Given the existing backlog and the growth of renewables business in Europe and interconnection projects around the world, which are the most significant drivers in the attractive outlook for the offshore power generation market, the continuously high level of activity is expected to be retained throughout the period 2025-2029.
Capital expenditure of approx. EUR 183 million in the following 5 years, to cover estimated production and capacity needs. Capital expenditure reflects investments for maintenance as well as organic growth. For the terminal period, investments are set equal to depreciation.
The compound annual growth rate of revenue from offshore business for the five-year period is set to ca. 19% attributable to the assignment of new projects mainly in Greece and North Europe.
The EBITDA margin per offshore project is assumed in the range of 15%-25% of revenue. Estimated profitability per project varies due to different types of cables required, technical specifications, geographic region and the project\u2019s timeframe.
The compound annual growth rate of fixed operating expenses is assumed equal to ca. 5.8% for the five-year period.
Cash flows after the first five years were calculated using an estimated long term growth rate of 1.31%, which mainly reflects management\u2019s estimates for the world economy as well as long-term growth prospects of the offshore cable sector. The pre-tax rate used to discount these cash flows was 10.33% (2023: 11.34%), based on the following assumptions:
The risk-free rate was based on AAA European bond yields.
The country risk calculations were based on the expected future sales mix and the fact that the business unit is based in Greece.
The market risk premium was assumed equal to 3.94% (2023: 4.84%).
Commodity prices for copper and aluminium are intrinsically part of the impairment test assumptions; the metal price hedging activities undertaken, though, and the customized nature of the products sold by Fulgor, suggest that the value of the business unit is not significantly affected by fluctuations in commodity prices. Hence, a neutral result from metal price fluctuations is assumed in the context of the impairment test.
The results of this test indicated that the recoverable amount on 31 December 2024 exceeds the carrying amount of the CGU (equal to EUR 498 million) by EUR 1,004 million.
A sensitivity analysis was carried out on the key assumptions of the model (discount rates and growth in perpetuity), to examine the adequacy of the above headroom. Sensitivity analysis results indicated that the recoverable amount is comfortably exceeds the carrying value of the CGU. Assumptions may change as follows so as the recoverable amount equals the carrying amount:
Assumptions used | Change in rates (percentage points change) required for the recoverable amount to equal the carrying amount | |
Discount rate | 10.33% | + 10.9 ppc |
Terminal growth | 1.31% | - 47.1 ppc |
(b) Intangible assets recognized for the CGU \u201cReynolds\u201d
The recoverable amount of the CGU that includes this intangible asset (Reynolds Cuivre S.A.) was estimated based on the present value of the future cash flows expected to be derived from the CGU (value in use).
Cash flows after the first five years were calculated using an estimated growth rate of 1%, which reflects management\u2019s estimates for the growth prospects for the market. The after-tax rate used to discount these cash flows is 7.9% for the five year period and for the terminal value and was based on the following:
Risk free rate at 2.49%.
The market risk premium (including the country risk for operating in France) was determined at 4.5%.
Additional hurdle rate of 1%.
Sales revenue is estimated to grow at a 3.9% cumulative annual growth rate for the first five years, while operating earnings grow at a 1.3% rate. Average annual capex for the same period equals to EUR 143 thousand.
The results of this test indicated that the recoverable amount as at 31 December 2024 exceeds the carrying value of the CGU amounting to EUR 9.8 million by EUR 11 million.
Sensitivity and scenario analysis was carried out on the assumptions of the DCF model (sales growth, profitability, working capital requirements, and discount rates), to examine the adequacy of the headroom. The headroom was deemed adequate even under extremely stressed scenarios. A combination of negative growth, depressed margins and high working capital requirements and discount rates would be required for headroom to turn negative. Such a scenario was deemed unrealistic.
B. Measurement of fair value \u2013Impairment loss and subsequent reversal
On December 31st 2024, an impairment test was performed on all real estate assets (individual assets), either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. The results relating to owner occupied properties are outlined in note 17.
For investment property assets, an impairment loss of EUR 9.7 million was recorded and included in the line \u2019Other expense\u2018 of the consolidated statement of profit or loss. Impairment losses relate primarily to land and buildings, and the recoverable amount was based on its fair value less costs of disposal. The fair value of these properties was determined by external, independent property valuers, having appropriate recognized professional qualifications and recent experience in the location and category of the properties being valued. Valuation techniques are described in detail in the next paragraph. For segmental classification purposes, the impairment loss (recoverable amount EUR 38 million) was reported in real estate segment.
Asset valuations were also used to identify if previously recognized impairment losses could be reversed. As a result, EUR 2.8 million were reversed and included in the line \u2019Other Income\u2018 of the consolidated statement of profit or loss. The recoverable amount of these assets as at 31 December 2024 was EUR 88 million and they relate to the real estate segment.
The accumulated impairment losses carried forward as at 31 December 2024, amounts to EUR 50.3 million (31 December 2023: EUR 43.4 million).
The fair value of all properties reported in the line \u2019Investment property\u2018, as at 31 December 2024, is EUR 500 million (31 December 2023: EUR 484 million).
Valuation techniques and significant unobservable inputs (Level 2 & 3)
The fair value measurement for investment property has been categorized as a Level 2 & 3 regarding fair value hierarchy, based on the inputs to the valuation techniques used.
Valuations methods used to determine the fair value of these properties were reflecting the highest and best possible use.
-\tFor buildings currently rented or expected to be rented out in the foreseeable future, the income approach (either Discounted Cash Flow or Direct capitalization) method was used. DCF method considered the present value of net cash flows to be generated from each property, taking into account expected rental growth rate, void periods, occupancy rate, lease incentive costs such as rent-free periods and other relevant costs/fees obliged to be settled by the owning entity. The expected net cash flows are discounted using risk-adjusted discount rates that ranged between 7,46% - 12,50% and exit yields that ranged between 4,00-11,00%. Among other factors, the discount rate estimation considers the quality of each building, its location, tenant credit quality, lease terms and the expected market return. The estimated fair value would decrease if either the expected market rental growth was lower or the risk-adjusted discount rates were higher. Direct capitalization uses an All-Risk Yield in order for the current annual estimated rental value to be capitalized. ARY ranged between 4,00% - 12,00% and offers a holistic assessment of the property market\u2019s general condition.
-\tFor land plots and buildings, which were under construction and which are intended to be used as investment property in the future, the residual method was primarily used. The fair value determined by this method reflects the value of the property in its current condition.
-\tFor the utilitisation of a secondary valuation methodology, the comparative method (market approach) was appraised for the vast majority of the properties. According to this method the valuer estimates the market value of the subject asset by comparing the factors that mostly affect it. Such factors can be location, size, quality of construction etc. This method is based on estimation of the market price and what has been paid for similar properties under similar economic conditions. Each property is valued at a price at which similar ones in the area have recently sold with a subjective differential added (or subtracted) to adjust for the unique characteristics of the property that make it different from the benchmark properties, such as location, size, accessibility etc.
23. Derivatives
The following table sets out the carrying amount of derivatives:
Amounts in EUR thousands | 2024 | 2023 |
Non-current assets | \u00a0 | \u00a0 |
Interest rate swap contracts | 4,543 | 6,578 |
Forwards | - | 11 |
Electricity Swaps | - | 1,115 |
Commodity Swaps | 499 | - |
Future contracts | - | 122 |
Options | - | 730 |
Total | 5,042 | 8,557 |
Current assets | ||
Interest rate swap contracts | 3,060 | 6,029 |
Forwards | 1,552 | 8,013 |
Future contracts | 4,429 | 4,963 |
Commodity Swaps | 2,307 | 1,347 |
Total | 11,348 | 20,352 |
Non-current liabilities | ||
Interest rate swap contracts | 450 | 1,425 |
Future contracts | - | 1 |
Commodity Swaps | - | 3,598 |
Total | 450 | 5,023 |
Current liabilities | ||
Forwards | 6,212 | 794 |
Future contracts | 2,258 | 316 |
Commodity Swaps | - | 2,996 |
Total | 8,469 | 4,107 |
Variable rate loans and borrowings expose Viohalco companies to a rate volatility risk (cash flow risk). Viohalco subsidiaries entered into interest rates swaps contracts in order to be hedged by interest rate fluctuations, by transforming the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Hedge accounting
Viohalco\u2019s companies hold derivative financial instruments for cash flow and fair value hedges.
The abovementioned derivative financial instruments cover risks from:
Changes in the prices of metals;
Fluctuations of foreign exchange rates;
Changes in loan interest rates;
Fluctuations of energy.
The maturity and the nominal value of derivatives held by Viohalco\u2019s companies match the maturity and nominal value of the underlying assets / liabilities (hedged items).
Derivatives held by Viohalco\u2019s companies concern mainly:
Future contracts to hedge the risk from the change of the price of metals listed in LME (London Metal Exchange) and used in production of Viohalco\u2019s companies (i.e. mainly copper, aluminium and zinc). Such hedges are designated as cash flow hedges.
FX Forward and FX swaps to hedge the risk from the change in exchange rate of US Dollar and British Pound (i.e. currencies to which Viohalco\u2019s companies are mainly exposed). Such hedges are either designated as fair value or cash flow hedges depending on the item hedged. FX Forwards and FX swaps when used for hedging FX risk on outstanding receivables and suppliers denominated in foreign currency these instruments are designated under fair value hedging. FX forwards when used for hedging FX risk on the forecasted sales of goods or purchase of materials executed in foreign currency FX forward is hedging instruments designated under the cash flow method.
Variable rate loans and borrowings expose Viohalco companies to an interest rate volatility risk (cash flow risk). In order to hedge it, interest rate swaps are used to effectively transform the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Derivatives are recognised when Viohalco\u2019s companies enter into the transaction in order either to hedge the fair value of receivables, liabilities or commitments (fair value hedges) or highly probable transactions (cash flow hedges).
The change in fair value recognized in equity under cash flow hedging as at 31 December 2024 will be recycled to the consolidated statement of profit or loss during the next years, as some of the hedged events are expected to occur (the forecasted transactions will take place or the hedged items will affect profit or loss statement) within 2025 and some others at a later stage.
Viohalco companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively) the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined. The table below provides the results of the effectiveness test:
On 31 December 2024 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -468 | - | - |
Foreign exchange forwards | -6,454 | -2,733 | - |
Future contracts | 2,914 | -844 | -5 |
Electricity swaps | -1,115 | - | - |
Commodity swaps | 5,787 | -50 | - |
Total | 664 | -3,627 | -5 |
On 31 December 2023 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -5,754 | -\u00a0 | -\u00a0 |
Foreign exchange forwards | 7 | -\u00a0 | -\u00a0 |
Forward foreign exchange contracts | 4,997 | 806 | -\u00a0 |
Future contracts | 4,341 | 214 | 337 |
Electricity swaps | 1,115 | -\u00a0 | -\u00a0 |
Commodity swaps | -21,379 | \u00a0- | -\u00a0 |
Total | -16,673 | 1,020 | 337 |
Viohalco companies\u2019 results from the hedging activities recorded in the statement of profit or loss are presented for metal future contracts,foreign exchange contracts and the energy contracts in the \u2019Revenue\u2018 and the \u2019Cost of sales\u2018 while for interest rate swaps in the \u2019Finance income/ expenses\u2019. The amounts recognized in the consolidated statement of profit or loss are the following:
Amounts in EUR thousands | 2024 | 2023 |
Gain / loss (-) on future contracts | 16,978 | -733 |
Gain / loss (-) on FX forward contracts | -12,607 | 277 |
Gain / loss (-) on interest rate swap contracts | 2,756 | 3,170 |
Gain / loss (-) on commodity swap contracts | -1,104 | -8,561 |
\u00a0 | 6,023 | -5,848 |
Profit or loss related to derivatives used for cash flow hedging were recognized in other comprehensive income (Hedging reserve) as at 31 December 2024 and it will be recycled to profit or loss during the next financial years.
(a)\tTrade and other receivables
Viohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured.
When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.
Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables.
At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:
\u00a0 | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 294,046 | 301,265 |
Other EU member states | 254,604 | 255,645 |
Other European countries | 73,071 | 68,131 |
Asia | 37,798 | 42,842 |
America | 63,648 | 142,651 |
Africa | 19,897 | 14,290 |
Oceania | 554 | 949 |
Total | 743,619 | 825,773 |
(e) Energy price risk
Viohalco is exposed to risks arising from fluctuating energy prices. Within 2023, Viohalco companies signed a long-term Power Purchase Agreement (PPA), backed by various assets from Renewable Energy Sources (\u201cRES assets\u201d), in order to reduce its exposure to volatility in the energy prices.
Based on the initial agreement, the PPA provided for two distinct arrangements, comprising a physical delivery of electricity during the first two years (Period A), with a financial settlement of the difference between the fixed agreement price and the market electricity price, and for a virtual delivery of renewable electricity subsequently and to the end of the agreement (Period B), as produced by specified RES assets (i.e. photovoltaic facilities) yet to be constructed, with a financial settlement of the difference between the fixed agreement price for this subsequent period and the market electricity price. Period A of the PPA was assessed in accordance with IFRS 9 as an own-use agreement and was accounted for as an executory contract, while Period B of the initial PPA was assessed as comprising a derivative financial instrument, which was accounted for at fair value through profit or loss other comprehensive income.
In August 2024, an addendum to the initial contract was signed, altering effective from 15.03.2024, altering mainly the nature of the contract for Period B as well as the duration and the pricing for both period A and B. More Specifically, the delivery method in period B has been changed from virtual to physical delivery via injection and absorption declarations in the Day-Ahead Market, through an intermediary supplier, resulting in a physical delivery contract performed on similar terms as the existing one in period A.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAssetsAndLiabilitiesWithSignificantRiskOfMaterialAdjustmentExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__31": { "value": "5.1. Basis of Consolidation
(a)\tBusiness combinations
Acquisition of subsidiaries is accounted for using the acquisition method on the acquisition date, i.e. the date on which control is transferred to Viohalco. To assess control, Viohalco takes into account substantive potential voting rights.
Viohalco and its companies measure goodwill on the acquisition date as follows:
the fair value of the consideration paid, plus
the value of any non-controlling interests in the acquired subsidiary, less
the fair value of identifiable assets and liabilities assumed.
Any goodwill that arises is tested annually for impairment loss. Any gain on a bargain purchase is immediately recognized in the Consolidated Statement of Profit or Loss. Any expenses directly linked with acquisition are directly posted in the Consolidated Statement of Profit or Loss. Any contingent consideration is recognized at its fair value on the acquisition date.
(b) Subsidiaries
Subsidiaries are entities controlled by Viohalco. Viohalco controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of the subsidiaries are included in the consolidated financial statements from the date on which control commences, until the date on which control ceases.
(c)\tNon-controlling interests
NCI are measured at fair value or at their proportionate share of the acquiree\u2019s identifiable net assets at the date of acquisition. This measurement is done on an acquisition by acquisition basis.
Changes in Viohalco\u2019s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
(d) Loss of control
When Viohalco and its companies lose control over a subsidiary, they derecognise the assets and liabilities of the subsidiary and any related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.
(e)\tInterests in equity-accounted investees
Associates are those entities in which Viohalco has significant influence, but not control or joint control, over the financial and operating policies. This is generally the case where Viohalco holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost.
Investments in joint arrangements are classified as either joint operations or joint ventures. The classification depends on the contractual rights and obligations of each investor, rather than the legal structure of the joint arrangement.
Joint operations: Viohalco recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements under the appropriate headings.
Joint ventures: A joint venture is an arrangement in which Viohalco has joint control, whereby Viohalco has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Interests in joint ventures are accounted for using the equity method, after initially being recognised at cost in the consolidated balance sheet.
(f)\tEquity method
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise Viohalco\u2019s share of the post-acquisition profits or losses of the investee in profit or loss, and Viohalco\u2019s share of movements in other comprehensive income of the investee in other comprehensive income, until the date on which significant influence or joint control ceases.
Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.
When Viohalco\u2019s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, Viohalco does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.
(g)\tTransactions eliminated on consolidation
Intra group balances and transactions and any unrealised income and expenses arising from intra group transactions are eliminated. Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of Viohalco\u2019s interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__32": { "value": "(a)\tBusiness combinations
Acquisition of subsidiaries is accounted for using the acquisition method on the acquisition date, i.e. the date on which control is transferred to Viohalco. To assess control, Viohalco takes into account substantive potential voting rights.
Viohalco and its companies measure goodwill on the acquisition date as follows:
the fair value of the consideration paid, plus
the value of any non-controlling interests in the acquired subsidiary, less
the fair value of identifiable assets and liabilities assumed.
Any goodwill that arises is tested annually for impairment loss. Any gain on a bargain purchase is immediately recognized in the Consolidated Statement of Profit or Loss. Any expenses directly linked with acquisition are directly posted in the Consolidated Statement of Profit or Loss. Any contingent consideration is recognized at its fair value on the acquisition date.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__33-1": { "value": "(a)\tBusiness combinations
Acquisition of subsidiaries is accounted for using the acquisition method on the acquisition date, i.e. the date on which control is transferred to Viohalco. To assess control, Viohalco takes into account substantive potential voting rights.
Viohalco and its companies measure goodwill on the acquisition date as follows:
the fair value of the consideration paid, plus
the value of any non-controlling interests in the acquired subsidiary, less
the fair value of identifiable assets and liabilities assumed.
Any goodwill that arises is tested annually for impairment loss. Any gain on a bargain purchase is immediately recognized in the Consolidated Statement of Profit or Loss. Any expenses directly linked with acquisition are directly posted in the Consolidated Statement of Profit or Loss. Any contingent consideration is recognized at its fair value on the acquisition date.
Goodwill:Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses.Goodwill and intangible assets with indefinite useful life is tested annually for impairment loss.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Viohalco companies, also, include in their review of the recoverable amounts assumptions related to the consequences of climate change.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss under \u2019Other expenses\u2018. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBusinessCombinationsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__34-1": { "value": "(a)\tBusiness combinations
Acquisition of subsidiaries is accounted for using the acquisition method on the acquisition date, i.e. the date on which control is transferred to Viohalco. To assess control, Viohalco takes into account substantive potential voting rights.
Viohalco and its companies measure goodwill on the acquisition date as follows:
the fair value of the consideration paid, plus
the value of any non-controlling interests in the acquired subsidiary, less
the fair value of identifiable assets and liabilities assumed.
Any goodwill that arises is tested annually for impairment loss. Any gain on a bargain purchase is immediately recognized in the Consolidated Statement of Profit or Loss. Any expenses directly linked with acquisition are directly posted in the Consolidated Statement of Profit or Loss. Any contingent consideration is recognized at its fair value on the acquisition date.
Goodwill:Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses.Goodwill and intangible assets with indefinite useful life is tested annually for impairment loss.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Viohalco companies, also, include in their review of the recoverable amounts assumptions related to the consequences of climate change.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss under \u2019Other expenses\u2018. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__35-1": { "value": "(a)\tBusiness combinations
Acquisition of subsidiaries is accounted for using the acquisition method on the acquisition date, i.e. the date on which control is transferred to Viohalco. To assess control, Viohalco takes into account substantive potential voting rights.
Viohalco and its companies measure goodwill on the acquisition date as follows:
the fair value of the consideration paid, plus
the value of any non-controlling interests in the acquired subsidiary, less
the fair value of identifiable assets and liabilities assumed.
Any goodwill that arises is tested annually for impairment loss. Any gain on a bargain purchase is immediately recognized in the Consolidated Statement of Profit or Loss. Any expenses directly linked with acquisition are directly posted in the Consolidated Statement of Profit or Loss. Any contingent consideration is recognized at its fair value on the acquisition date.
Research and development: Expenditure on research activities is recognised in profit and loss as incurred. Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercial feasible, future economic benefits are probable and Viohalco\u2019s companies intend and have sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses.
Software programs: Software licenses are recorded at their acquisition cost less accumulated amortisation. These assets are amortised on the straight line method over their estimated useful lives, which ranges between 3 to 5 years. Expenses that are associated with the software\u2019s maintenance are recognised in profit or loss in the year in which they are incurred.
Other intangible assets: Other intangible assets, including customer relationships, patents and trademarks, that are acquired by Viohalco and its companies and have finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses. Other intangible assets having indefinite useful lives are measured at cost less accumulated impairment losses.
B. Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.
C. Amortisation and useful lives
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is recognised in profit or loss. Goodwill and other intangible assets with indefinite useful lives are not amortised.
The estimated useful lives for the current and comparative periods are as follows:
Trademarks and licenses\t10 \u2013 15 years
Software programs\t3 \u2013 5 years
Some intangible assets included in \u201cTrademarks and licences\u201d have indefinite useful lives and are therefore not amortised, but subject to an impairment testing. See Note 19 for detailed information.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
Goodwill and intangible assets with indefinite useful life is tested annually for impairment loss.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Viohalco companies, also, include in their review of the recoverable amounts assumptions related to the consequences of climate change.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss under \u2019Other expenses\u2018. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__36-1": { "value": "(b) Subsidiaries
Subsidiaries are entities controlled by Viohalco. Viohalco controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of the subsidiaries are included in the consolidated financial statements from the date on which control commences, until the date on which control ceases.
Changes in Viohalco\u2019s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.(d) Loss of control
When Viohalco and its companies lose control over a subsidiary, they derecognise the assets and liabilities of the subsidiary and any related NCI and other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value when control is lost.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSubsidiariesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__37": { "value": "(c)\tNon-controlling interests
NCI are measured at fair value or at their proportionate share of the acquiree\u2019s identifiable net assets at the date of acquisition. This measurement is done on an acquisition by acquisition basis.
Changes in Viohalco\u2019s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTransactionsWithNoncontrollingInterestsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__40": { "value": "(e)\tInterests in equity-accounted investees
Associates are those entities in which Viohalco has significant influence, but not control or joint control, over the financial and operating policies. This is generally the case where Viohalco holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociates", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__41-1": { "value": "(e)\tInterests in equity-accounted investees
Associates are those entities in which Viohalco has significant influence, but not control or joint control, over the financial and operating policies. This is generally the case where Viohalco holds between 20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting, after initially being recognised at cost.
Joint ventures: A joint venture is an arrangement in which Viohalco has joint control, whereby Viohalco has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Interests in joint ventures are accounted for using the equity method, after initially being recognised at cost in the consolidated balance sheet.
(f)\tEquity method
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise Viohalco\u2019s share of the post-acquisition profits or losses of the investee in profit or loss, and Viohalco\u2019s share of movements in other comprehensive income of the investee in other comprehensive income, until the date on which significant influence or joint control ceases.
Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.
When Viohalco\u2019s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, Viohalco does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentInAssociatesAndJointVenturesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__42": { "value": "Joint operations: Viohalco recognises its direct right to the assets, liabilities, revenues and expenses of joint operations and its share of any jointly held or incurred assets, liabilities, revenues and expenses. These have been incorporated in the financial statements under the appropriate headings. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__44-1": { "value": "Joint ventures: A joint venture is an arrangement in which Viohalco has joint control, whereby Viohalco has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities.
Interests in joint ventures are accounted for using the equity method, after initially being recognised at cost in the consolidated balance sheet.
(f)\tEquity method
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to recognise Viohalco\u2019s share of the post-acquisition profits or losses of the investee in profit or loss, and Viohalco\u2019s share of movements in other comprehensive income of the investee in other comprehensive income, until the date on which significant influence or joint control ceases.
Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.
When Viohalco\u2019s share of losses in an equity-accounted investment equals or exceeds its interest in the entity, Viohalco does not recognise further losses, unless it has incurred obligations or made payments on behalf of the other entity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__47-1": { "value": "Dividends received or receivable from associates and joint ventures are recognised as a reduction in the carrying amount of the investment.Dividend income is recognised in profit or loss on the date on which Viohalco\u2019s right to receive payment is established.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__48": { "value": "5.2. Foreign currency
(a)\tForeign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Viohalco\u2019s companies at the exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Foreign currency gains and losses are recognized and classified in the consolidated statement of profit or loss based on the nature of the related item of the consolidated statement of financial position.
Non-monetary items that are measured based on historical cost in a foreign currency are translated at the exchange rate at the date of the transaction.
Foreign currency differences arising from the translation of the following items are recognised in OCI:
- qualifying cash flow hedges to the extent that the hedges are effective;
- an investment in equity securities designated as at FVOCI.
(b)\tForeign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into Euro at the exchange rates of the reporting date. The income and expenses of foreign operations are translated into Euro at the exchange rates at the date of the transactions. The average rate for the period is deemed to be an appropriate rate.
Foreign currency differences are recognised in OCI and accumulated in the translation reserve, except to the extent that the translation difference is allocated to NCI.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__49": { "value": "5.3. Revenue
Viohalco recognizes revenue from the following major sources:
- Sale of customized products and revenue from projects;
- Sale of standard products;
- Rendering of services.
Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. Viohalco recognizes revenue when it transfers control of a product or service to a customer.
Consideration can vary because of trade discounts, volume rebates, returns or other similar items. Depending on the type of variable consideration the most appropriate method for measuring this variable consideration is used.
Sales of customized products and revenue from projects
Regarding contracts for projects and for customized products produced for the exclusive use of certain customers and with no alternative use, there is an enforceable right to payment for performance completed to date if the contract is terminated by the customer or another party for reasons other than Viohalco\u2019s subsidiaries\u2019 failure to perform as promised. Hence, it is concluded that the client controls all of the work in progress, as the goods are being produced.
Therefore, for such contracts revenue is recognised progressively based on the most appropriate output or input method, to measure progress towards completion.
The most common methods used are the following:
-\tFor performance obligations related to production of customized products, depending on the type of contract concerned, the methods to measure progress is estimated based on:
i. Production time elapsed, i.e. the ratio between the actual time spent on the production and the total number of scheduled production time. This method is used for submarine cables produced in long continuous lengths, since the production of such products normally lasts for significant period of time and, as a result, the related performance obligations are satisfied as production time elapses.
ii. The quantity of manufactured and tested products compared with the total quantity to be produced according to the contract. This method is used for customized land cables, steel pipes and aluminium products, since the production is performed in batches and as a result the performance obligations related are satisfied as certain batches of agreed quantities have been produced.
- For installation phases of cables segment\u2019s turnkey projects, the method to measure progress is based on appraisal of results achieved or milestones reached, based to clearly defined technical milestones, such as transport or meters of cables installed. When milestones are being used as a method to measure progress, these milestones faithfully depict the performance.
Sales of standard products
For products which are not considered customized, customers do not take control of the product until production is completed, therefore revenue is recognised at a point of time, when the control of the goods sold has been transferred.
The timing of the transfer of control usually occurs when the goods have been shipped to the customers\u2019 location, unless otherwise specified in the terms of the contract. The terms defined on the contracts with customers are according to Incoterms.
Revenue recognised at a point in time is invoiced either simultaneously with its recognition, or within a short time period from its recognition. A receivable is recognised when the control is transferred to the customer, as this represents the point in time at which the right to consideration becomes unconditional.
Rendering of services
Revenue is recognised using the stage-of-completion method. The total consideration in the service contracts is allocated to all performance obligations in the contract based on their stand-alone selling prices. The stand-alone selling prices are determined based on the list prices at which Viohalco sells the services in separate transactions.
Contract assets and contract liabilities
The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances (contract liabilities). These contract assets and contract liabilities are presented on the Consolidated Statement of Financial Position in the lines \u2018Contract assets\u2019 and \u2018Contract liabilities,\u2019 respectively. For products and services for which revenue is recognised over time, amounts are billed as work progresses in accordance with agreed-upon contractual terms, either upon achievement of contractual milestones, or at the final delivery and acceptance of the manufactured items.
Generally, billing occurs subsequent to revenue recognition for customized products and services performed over time resulting in contract assets. However, when advances from customers are received before revenue is recognized, a contract liability is recognized.
Contract costs
Viohalco\u2019s subsidiaries recognize the incremental costs of obtaining contracts with customers and the costs incurred in fulfilling contracts with customers that are directly associated with the contract as an asset, if those costs are expected to be recoverable and record them in the line \u201cContract costs\u201d in the Consolidated Statements of Financial Position. Incremental costs of obtaining contracts are costs incurred to obtain a contract with a customer that would not have been incurred if the contract had not been obtained.
Fulfilment costs are only capitalized if they generate or enhance resources that will be used to satisfy performance obligations in the future.
Assets arising from contract costs are amortized using either the straight-line method over a period based on the estimated contract duration or based on the portion of revenue recognised during the execution of the related contract.
Incremental costs of obtaining contracts are recognised as an expense when incurred, if the amortisation period of the assets would be one year or less.
Contract costs
Viohalco\u2019s subsidiaries recognize the incremental costs of obtaining contracts with customers and the costs incurred in fulfilling contracts with customers that are directly associated with the contract as an asset, if those costs are expected to be recoverable and record them in the line \u201cContract costs\u201d in the Consolidated Statements of Financial Position. Incremental costs of obtaining contracts are costs incurred to obtain a contract with a customer that would not have been incurred if the contract had not been obtained.
Fulfilment costs are only capitalized if they generate or enhance resources that will be used to satisfy performance obligations in the future.
Assets arising from contract costs are amortized using either the straight-line method over a period based on the estimated contract duration or based on the portion of revenue recognised during the execution of the related contract.
Incremental costs of obtaining contracts are recognised as an expense when incurred, if the amortisation period of the assets would be one year or less.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCustomerAcquisitionCostsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__52": { "value": "5.4. Employee benefits
(a)\tShort-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if Viohalco and its companies have a present legal or constructive obligation to pay this amount, as a result of past service provided by the employee and the obligation can be estimated reliably.
(b)\tDefined contribution plans
Defined-contribution plans are plans for the period after the employee has ceased to work during which Viohalco and its companies pay a defined amount to a third legal entity without any other obligation. The accrued cost of defined-contribution programs is recorded as an expense in the period that it concerns.
(c)\tDefined benefit plans
Viohalco and its companies\u2019 net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The discount rate is based on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method, while benefits are attributed over the last 16 years before retirement of each employee.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, are recognised immediately in OCI. Viohalco and its companies determine the net interest expense on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability, taking into account any changes in the net defined benefit liability during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. Viohalco and its companies recognise gains and losses on the settlement of a defined benefit plan when the settlement occurs.
(d) Termination benefits
Termination benefits are expensed at the earlier of when Viohalco and its companies can no longer withdraw the offer of those benefits and when they recognise costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the reporting date, then they are discounted.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__53-1": { "value": "5.4. Employee benefits
(a)\tShort-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if Viohalco and its companies have a present legal or constructive obligation to pay this amount, as a result of past service provided by the employee and the obligation can be estimated reliably.
(b)\tDefined contribution plans
Defined-contribution plans are plans for the period after the employee has ceased to work during which Viohalco and its companies pay a defined amount to a third legal entity without any other obligation. The accrued cost of defined-contribution programs is recorded as an expense in the period that it concerns.
(c)\tDefined benefit plans
Viohalco and its companies\u2019 net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The discount rate is based on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method, while benefits are attributed over the last 16 years before retirement of each employee.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, are recognised immediately in OCI. Viohalco and its companies determine the net interest expense on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability, taking into account any changes in the net defined benefit liability during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. Viohalco and its companies recognise gains and losses on the settlement of a defined benefit plan when the settlement occurs.
(d) Termination benefits
Termination benefits are expensed at the earlier of when Viohalco and its companies can no longer withdraw the offer of those benefits and when they recognise costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the reporting date, then they are discounted.
5.18. Provisions
Provisions are measured by discounting the expected future cash flows at a pre-tax rate. The discount rate used for the determination of present value reflects current market assessments of the time value of money and the risks specific to the obligation.
Provisions are recognised when:
(a)\tThere is a present legal or constructive obligation as a result of past events.
(b)\tPayment is probable to settle the obligation.
(c)\tThe amount of the payment in question can be reliably estimated.
More specifically:
Provisions for pending court rulings are recognised when it is more likely than not, that a present obligation from this litigation exists, and payment is probable.
Assurance warranty provisions are recognised when the product is sold and according to historical experience (probability that sold products will need to be replaced). The initial estimate of warranty-related costs is revised annually.
Restructuring provisions are recognised only when Viohalco has a constructive obligation, which is when a detailed formal plan identifies the business or part of the business concerned, the location and number of employees affected, a detailed estimate of the associated costs and an appropriate timeline, and the employees affected have been notified of the plan\u2019s main features or when the company has already started to implement the plan.
A provision for onerous contracts is measured at the present value of the lower of the expected cost of terminating a contract and the expected net cost of continuing with the contract. Before the provision is established, Viohalco recognises any impairment loss on the associated assets with the contract.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForProvisionsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__54-1": { "value": "5.4. Employee benefits
(a)\tShort-term employee benefits
Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if Viohalco and its companies have a present legal or constructive obligation to pay this amount, as a result of past service provided by the employee and the obligation can be estimated reliably.
(b)\tDefined contribution plans
Defined-contribution plans are plans for the period after the employee has ceased to work during which Viohalco and its companies pay a defined amount to a third legal entity without any other obligation. The accrued cost of defined-contribution programs is recorded as an expense in the period that it concerns.
(c)\tDefined benefit plans
Viohalco and its companies\u2019 net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The discount rate is based on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method, while benefits are attributed over the last 16 years before retirement of each employee.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, are recognised immediately in OCI. Viohalco and its companies determine the net interest expense on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability, taking into account any changes in the net defined benefit liability during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. Viohalco and its companies recognise gains and losses on the settlement of a defined benefit plan when the settlement occurs.
(d) Termination benefits
Termination benefits are expensed at the earlier of when Viohalco and its companies can no longer withdraw the offer of those benefits and when they recognise costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the reporting date, then they are discounted.
5.6. Finance income and finance cost
Viohalco and its companies finance income and finance costs mainly include:
interest income;
interest expense;
dividend income;
Foreign currency gains and losses from loans and deposits.
Interest income or expense is recognised using the effective interest method. The \u2018effective interest rate\u2019 is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
\u2022 the gross carrying amount of the financial asset; or
\u2022 the amortised cost of the financial liability.
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset or to the amortised cost of the financial liability.
Dividend income is recognised in profit or loss on the date on which Viohalco\u2019s right to receive payment is established.
5.7. Income tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or to items recognised directly in equity or in OCI.
A. Current tax
Current tax comprised the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends.
Current tax assets and liabilities are offset only if certain criteria are met.
B. Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;
Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that Viohalco and its companies are able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
Taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that is has become probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
The measurements of deferred tax reflect the tax consequences that would follow from the manner in which Viohalco and its companies expect, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority.
The assessment for the impact of the application of International Tax Reform \u2013 Pillar Two is included in Note 13 Income Tax.
5.8. Inventories
Inventories are stated at the lower of cost and net realisable value. The cost is determined by applying the method of weighted average cost and includes the production and conversion cost and all direct expenses required to bring inventories at their current condition. The net realisable value is estimated based on the inventory\u2019s current sales price, in the ordinary course of business activities, less any possible selling expenses, whenever such a case occurs.
The write-down of inventories to net realisable value and any reversals are recognized in \u2018cost of sales\u2019 in the period in which the write-downs occur.
B. Depreciation
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives and is generally recognised in profit or loss. Land is not depreciated. The component approach is followed if the cost of an asset comprises different major components of that asset with different useful lives.
Administrative buildings | 20-50 years |
Plants | 33-50 years |
Heavy machinery | 12-40 years |
Light machinery | 8-18 years |
Furniture | 4-10 years |
Other equipment | 4-12 years |
Transport means | 4-10 years |
Computers are included in the category \u201cOther equipment\u201d.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
C. Amortisation and useful lives
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is recognised in profit or loss. Goodwill and other intangible assets with indefinite useful lives are not amortised.
The estimated useful lives for the current and comparative periods are as follows:
Trademarks and licenses\t10 \u2013 15 years
Software programs\t3 \u2013 5 years
Some intangible assets included in \u201cTrademarks and licences\u201d have indefinite useful lives and are therefore not amortised, but subject to an impairment testing. See Note 19 for detailed information.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
5.11. Investment property
Investment property, which includes land, buildings and right of use assets, is owned by Viohalco and its subsidiaries for the collection of rents and is not used for owner purposes. Investment property is presented at cost less depreciation. When the carrying amounts of investment property exceed their recoverable value, the difference (impairment loss) is directly recorded in profit and loss as an expense. The reversal of impairment losses is also recognised in profit and loss as income. Land is not depreciated. The buildings are depreciated by applying the straight-line method. The expected useful life of buildings is 18-33 years.
Management exercises judgement to determine whether a property qualifies as investment property or not. The criteria related to this judgement are as follows:
\u2022\tWhether a property generates cash flows derived from rentals and capital appreciation largely independently of the other assets held by Viohalco;
\u2022\tWhether a property does not generate cash flows from the production or supply of goods or services or the use of property for administrative purposes that are attributable not only to property, but also to other assets used in the production or supply process;
\u2022\tWhether a building that is vacant will be held to be leased out or for capital appreciation;
\u2022\tWhether a property that is being constructed or developed for future use as investment property;
\u2022\tWhether Viohalco holds land for a currently undetermined future use.
5.13. Impairment
A. Non-derivative financial assets
Financial instruments and contract assets
Viohalco recognises loss allowances for ECLs on:
financial assets measured at amortised cost;
contract assets;
lease receivables.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs, except for cash and cash equivalents (12-month expected credit loss).
Viohalco considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations in full, without recourse by Viohalco companies to actions such as realizing security (if any is held).
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which Viohalco companies are exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that Viohalco expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. Impairment losses related to trade and other receivables, including contract assets, are presented separately in the statement of profit or loss.
Write-off
The gross carrying amount of a financial asset is written off when Viohalco has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For all customers, Viohalco individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. Viohalco expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with Viohalco\u2019s procedures for recovery of amounts due.
B. Non-financial assets
At each reporting date, Viohalco and its companies review the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset\u2019s recoverable amount is estimated.
Goodwill and intangible assets with indefinite useful life is tested annually for impairment loss.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Viohalco companies, also, include in their review of the recoverable amounts assumptions related to the consequences of climate change.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss under \u2019Other expenses\u2018. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed.
For other assets, an impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
5.14. Leases
At inception of a contract, Viohalco assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Viohalco companies use the definition of a lease in IFRS 16.
Accounting for lease contracts as a lessee
Viohalco companies lease various offices, warehouses, machinery and cars. Rental contracts are usually made for fixed periods of 1 to 5 years, with some exceptions like lease of specialized machinery, ports, gas cylinders and land which are leased for longer periods.
Viohalco recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, comprising the following:
the amount of the initial measurement of lease liability;
any lease payments made at or before the commencement date less any lease incentives received;
any initial direct costs; and
restoration costs.
Subsequently, the right-of-use asset is measured at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the following lease payments:
fixed payments (including in-substance fixed payments), less any lease incentives receivable;
variable lease payment that are based on an index or a rate;
amounts expected to be payable by the lessee under residual value guarantees;
the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
Lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate of the component that entered into the lease agreement. Generally, Viohalco uses its incremental borrowing rate as the discount rate.
This is the rate that the lessee, i.e. each subsidiary of Viohalco, would have to pay on the commencement date of the lease for a loan of a similar term, and with similar security, to obtain an asset of similar value to the right-of-use asset in similar economic environment.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payment made. It is remeasured if there is a modification that is not accounted for as a separate lease; when there is a change in future lease payments arising from a change in an index or rate; a change in the estimate of the amount expected to be payable under a residual value guarantee; and changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.
Lease liabilities and right-of-use assets are presented separately in the statement of financial position. Right-of-use assets that meet the definition of investment property are presented within \u2018Investment property\u2019.
Viohalco has elected not to separate non-lease components from lease components.
Payments associated with leases of 12 months or less and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Low-value assets comprise IT-equipment and small items of office furniture.
Viohalco applies judgement to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessment of whether Viohalco is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognised.
Viohalco has elected to present interest paid related to lease liabilities in the Consolidated Statement of Cash Flows, within the line \u2019Interest charges & related expenses paid\u2018 in operating activities.
Accounting for lease contracts as a lessor
Leases in which Viohalco companies do not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income is recognised as revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognised as expense over the lease term on the same basis as lease income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__55-1": { "value": "(c)\tDefined benefit plansViohalco and its companies\u2019 net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets. The discount rate is based on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid.
The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method, while benefits are attributed over the last 16 years before retirement of each employee.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, are recognised immediately in OCI. Viohalco and its companies determine the net interest expense on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability, taking into account any changes in the net defined benefit liability during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. Viohalco and its companies recognise gains and losses on the settlement of a defined benefit plan when the settlement occurs.
5.15. Financial instruments
(a) Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when Viohalco becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.
(b) Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI \u2013 debt investment; FVOCI \u2013 equity investment; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless Viohalco changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
-\tit is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
-\tits contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, Viohalco may irrevocably elect to present subsequent changes in the investment\u2019s fair value in OCI. This election is made on an investment-by-investment basis.
All financial assets (except derivatives to which cash flow hedging is applied) not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. On initial recognition, Viohalco may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL, if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Financial assets \u2013 Business model assessment:
Viohalco makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with Viohalco companies\u2019continuing recognition of the assets.
Financial assets \u2013 Assessment whether contractual cash flows are solely payments of principal and interest:
For the purposes of this assessment, \u2018principal\u2019 is defined as the fair value of the financial asset on initial recognition. \u2018Interest\u2019 is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin. In assessing whether the contractual cash flows are solely payments of principal and interest, Viohalco considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, Viohalco considers:
contingent events that would change the amount or timing of cash flows;
terms that may adjust the contractual coupon rate, including variable-rate features;
prepayment and extension features; and
terms that limit the claim to cash flows from specified assets (e.g. non-recourse features).
Financial assets \u2013 Subsequent measurement and gains and losses:
Financial assets at FVTPL | These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. |
Financial assets at amortised cost | These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. |
Debt investments at FVOCI | These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. |
Equity investments at FVOCI | These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. |
Financial liabilities \u2013 Classification, subsequent measurement and gains and losses:
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial
liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
(c) Derecognition
Financial assets
Viohalco derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which Viohalco neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
Viohalco enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised.
Financial liabilities
Viohalco derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. Viohalco also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
(d) Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, Viohalco currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
(e) Derivatives and hedge accounting
Viohalco\u2019s companies hold derivative financial instruments designated as fair value or cash flow hedges. Derivatives are used to cover risks arising from changes in prices of metals, fluctuations of foreign exchange rates, changes in interest rates on borrowings and changes in prices of energy.
Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are generally recognised in profit or loss, unless the instrument qualifies for cash flow hedge accounting. Gain or losses from derivatives are classified as operating or financing expense according to the classification of the hedged item.
Power Purchase Agreements (PPAs)
Viohalco first assesses Power Purchase Agreements (PPAs) and the related Green certificates of origin (GoOs) contracts, following the requirements of IFRS 10, IFRS 11 or IAS 28, to conclude whether there is a control, joint control or a significant influence over the underlying renewable facilities and if not, then the requirements of IFRS 16 for lease recognition are considered. When the outcome of the above assessment is that Viohalco companies neither control, joint control or exercise significant influence nor leases the underlying facilities, then such agreements are accounted for as derivative financial instruments to the extent that the criteria for exemption from IFRS 9 scope as own-use contracts are not met.
Accordingly, where the agreements to deliver non-financial items (e.g. electricity, GoOs) are in accordance with the expected purchase requirements of Viohalco, the own-use criterion of IFRS 9 is met and these are accounted for as executory contracts. Thereafter, the executory agreements are further assessed whether they contain embedded derivatives which meet IFRS 9 requirements to be accounted for separately from their host contract.
Fair value hedge
Derivatives are designated as fair value hedges when the exposure to changes in the fair value of a recognized financial asset or liability is hedged.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the Consolidated Statement of Profit or Loss, along with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Cash flow hedge
The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognised in the \u2019Hedging reserve\u2018. Any ineffective proportion is recognized immediately in profit or loss.
The amounts recorded in \u201cHedging Reserve\u201d are reclassified to the consolidated statement of profit or loss in the same period or periods during which the hedged forecast cash flows affect profit or loss or the hedged item affects profit or loss. When a hedge
item is sold or when the hedging proportion no longer meets the hedge accounting criteria, hedge accounting is discontinued prospectively, the amounts recorded in \u2018Hedging reserve\u2019 remain as a reserve and are reclassified to the consolidated statement of profit or loss when the hedged asset affects profits or losses.
In the case of a hedge on a forecast future transaction which is no longer expected to be realized, the amounts recorded in \u2018Hedging reserve\u2019 are reclassified to the consolidated statement of profit or loss.
Viohalco\u2019s companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively), the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined.
5.21. Fair value measurement
\u2018Fair value\u2019 is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which Viohalco has access at that date. The fair value of a liability reflects its non-performance risk.
A number of Viohalco\u2019s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.
When one is available, Viohalco measures the fair value of an instrument using the quoted price in an active market for that instrument. A market is regarded as \u2018active\u2019 if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
If there is no quoted price in an active market, then Viohalco uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction.
If an asset or a liability measured at fair value has a bid price and an ask price, then Viohalco measures assets and long positions at a bid price and liabilities and short positions at an ask price.
The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price \u2013 i.e. the fair value of the consideration given or received. If Viohalco determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability, nor based on a valuation technique for which any unobservable inputs are judged to be insignificant in relation to the measurement, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out.
5.22. CO2Emission rights
Emission rights are accounted for under the net liability method, based on which Viohalco companies recognize a liability for emissions during the calendar year. Viohalco companies estimate the free allowances allocated and the emissions produced during the year. When emissions exceed free allowances, the companies recognize the future liability based on the net deficit and the budget estimate for the EUA price during the year. The projected deficit is covered at market prices by purchasing EUAs either on a forward or spot basis. The total cost of all forward and spot purchases represents the realized liability during the year.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__56": { "value": "(d) Termination benefits
Termination benefits are expensed at the earlier of when Viohalco and its companies can no longer withdraw the offer of those benefits and when they recognise costs for a restructuring. If benefits are not expected to be settled wholly within 12 months of the reporting date, then they are discounted.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTerminationBenefits", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__57": { "value": "5.5. Government Grants
Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and Viohalco\u2019s companies will comply with all attached conditions.
Government grants relating to costs are deferred and recognized in the statement of profit or loss over the period necessary to match them with the costs that they are intended to compensate.
Government grants relating to the purchase of property, plant and equipment are included in non-current liabilities as deferred government grants and are credited to the statement of profit or loss (line \u201cother income\u201d) on a straight line basis over the expected useful lives of the related assets.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGovernmentGrants", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__58": { "value": "5.6. Finance income and finance cost
Viohalco and its companies finance income and finance costs mainly include:
interest income;
interest expense;
dividend income;
Foreign currency gains and losses from loans and deposits.
Interest income or expense is recognised using the effective interest method. The \u2018effective interest rate\u2019 is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
\u2022 the gross carrying amount of the financial asset; or
\u2022 the amortised cost of the financial liability.
In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset or to the amortised cost of the financial liability.
Dividend income is recognised in profit or loss on the date on which Viohalco\u2019s right to receive payment is established.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceIncomeAndCostsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__59": { "value": "5.6. Finance income and finance cost
Viohalco and its companies finance income and finance costs mainly include:
interest income;
interest expense;
dividend income;
Foreign currency gains and losses from loans and deposits.
Interest income or expense is recognised using the effective interest method. The \u2018effective interest rate\u2019 is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
\u2022 the gross carrying amount of the financial asset; or
\u2022 the amortised cost of the financial liability.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__61": { "value": "5.6. Finance income and finance cost
Viohalco and its companies finance income and finance costs mainly include:
interest income;
interest expense;
dividend income;
Foreign currency gains and losses from loans and deposits.
Interest income or expense is recognised using the effective interest method. The \u2018effective interest rate\u2019 is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
\u2022 the gross carrying amount of the financial asset; or
\u2022 the amortised cost of the financial liability.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinanceCostsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__62-1": { "value": "Interest income or expense is recognised using the effective interest method. The \u2018effective interest rate\u2019 is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to:
\u2022 the gross carrying amount of the financial asset; or
\u2022 the amortised cost of the financial liability.
Borrowing costs related to the construction of qualifying assets are capitalised during the period required for the construction to be completed.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingCostsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__64": { "value": "5.7. Income tax
Income tax expense comprises current and deferred tax. It is recognised in profit or loss except to the extent that it relates to a business combination, or to items recognised directly in equity or in OCI.
A. Current tax
Current tax comprised the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. It is measured using tax rates enacted or substantively enacted at the reporting date. Current tax also includes any tax arising from dividends.
Current tax assets and liabilities are offset only if certain criteria are met.
B. Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;
Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that Viohalco and its companies are able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
Taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that is has become probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
The measurements of deferred tax reflect the tax consequences that would follow from the manner in which Viohalco and its companies expect, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority.
The assessment for the impact of the application of International Tax Reform \u2013 Pillar Two is included in Note 13 Income Tax.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__66": { "value": "B. Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;
Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that Viohalco and its companies are able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and
Taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary differences to the extent that is probable that future taxable profits will be available against which they can be used. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised; such reductions are reversed when the probability of future taxable profits improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that is has become probable that future taxable profits will be available against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date.
The measurements of deferred tax reflect the tax consequences that would follow from the manner in which Viohalco and its companies expect, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority.
The assessment for the impact of the application of International Tax Reform \u2013 Pillar Two is included in Note 13 Income Tax.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__67": { "value": "5.8. Inventories
Inventories are stated at the lower of cost and net realisable value. The cost is determined by applying the method of weighted average cost and includes the production and conversion cost and all direct expenses required to bring inventories at their current condition. The net realisable value is estimated based on the inventory\u2019s current sales price, in the ordinary course of business activities, less any possible selling expenses, whenever such a case occurs.
The write-down of inventories to net realisable value and any reversals are recognized in \u2018cost of sales\u2019 in the period in which the write-downs occur.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__69": { "value": "5.9. Property, plant and equipment
A. Recognition and measurement
Property, plant and equipment are presented at their acquisition cost less accumulated depreciation and impairment.
The acquisition cost includes all expenses that are directly associated with the asset\u2019s acquisition or self-construction. The cost of self-constructed fixed assets includes the cost of direct labour, materials and any other cost that is required for the fixed asset to be ready for use as well as any borrowing costs.
Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to Viohalco and its companies.
Repair and maintenance costs are recorded in the Consolidated Statement of Profit or Loss when these are incurred.
On the sale of property, plant and equipment, any difference that may arise between the price that is received and the carrying value thereof is recorded through profit or loss in the category \u2019Other operating income/expenses\u2019.
Borrowing costs related to the construction of qualifying assets are capitalised during the period required for the construction to be completed.
B. Depreciation
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives and is generally recognised in profit or loss. Land is not depreciated. The component approach is followed if the cost of an asset comprises different major components of that asset with different useful lives.
Administrative buildings | 20-50 years |
Plants | 33-50 years |
Heavy machinery | 12-40 years |
Light machinery | 8-18 years |
Furniture | 4-10 years |
Other equipment | 4-12 years |
Transport means | 4-10 years |
Computers are included in the category \u201cOther equipment\u201d.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
C. Reclassification to investment property
When the use of a property changes from owner-occupied to investment property, the property is reclassified to investment property.
The item is reclassified at its net book value at the date of reclassification which becomes its deemed cost for subsequent accounting purposes.
D. Reclassification to assets held for sale
Non-current assets and disposal groups are reclassified as held for sale when their carrying amount will be recovered principally through a sale transaction rather than continuing use.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__70": { "value": "The acquisition cost includes all expenses that are directly associated with the asset\u2019s acquisition or self-construction. The cost of self-constructed fixed assets includes the cost of direct labour, materials and any other cost that is required for the fixed asset to be ready for use as well as any borrowing costs. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForConstructionInProgressExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__71": { "value": "Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to Viohalco and its companies.
Repair and maintenance costs are recorded in the Consolidated Statement of Profit or Loss when these are incurred.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepairsAndMaintenanceExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__73-1": { "value": "B. Depreciation
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the straight-line method over their estimated useful lives and is generally recognised in profit or loss. Land is not depreciated. The component approach is followed if the cost of an asset comprises different major components of that asset with different useful lives.
Administrative buildings | 20-50 years |
Plants | 33-50 years |
Heavy machinery | 12-40 years |
Light machinery | 8-18 years |
Furniture | 4-10 years |
Other equipment | 4-12 years |
Transport means | 4-10 years |
Computers are included in the category \u201cOther equipment\u201d.
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
C. Amortisation and useful lives
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is recognised in profit or loss. Goodwill and other intangible assets with indefinite useful lives are not amortised.
The estimated useful lives for the current and comparative periods are as follows:
Trademarks and licenses\t10 \u2013 15 years
Software programs\t3 \u2013 5 years
Some intangible assets included in \u201cTrademarks and licences\u201d have indefinite useful lives and are therefore not amortised, but subject to an impairment testing. See Note 19 for detailed information.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
Subsequently, the right-of-use asset is measured at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability. ", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__78-1": { "value": "D. Reclassification to assets held for sale
Non-current assets and disposal groups are reclassified as held for sale when their carrying amount will be recovered principally through a sale transaction rather than continuing use.
5.12. Assets held for sale
Non-current assets or disposal groups comprising assets and liabilities are classified as held-for-sale, if it is highly probable that they will be recovered primarily through sale rather than through continuing use.
Such assets or disposal groups are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets or employee benefits which continue to be measured in accordance Viohalco and its companies\u2019 other accounting policies. Impairment losses on initial classification as held-for-sale and subsequent gains and losses on remeasurement are recognised in profit or loss.
Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreciated and any equity-accounted investee is no longer equity accounted.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__79-1": { "value": "D. Reclassification to assets held for sale
Non-current assets and disposal groups are reclassified as held for sale when their carrying amount will be recovered principally through a sale transaction rather than continuing use.
5.12. Assets held for sale
Non-current assets or disposal groups comprising assets and liabilities are classified as held-for-sale, if it is highly probable that they will be recovered primarily through sale rather than through continuing use.
Such assets or disposal groups are generally measured at the lower of their carrying amount and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories, financial assets or employee benefits which continue to be measured in accordance Viohalco and its companies\u2019 other accounting policies. Impairment losses on initial classification as held-for-sale and subsequent gains and losses on remeasurement are recognised in profit or loss.
Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised or depreciated and any equity-accounted investee is no longer equity accounted.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForNoncurrentAssetsOrDisposalGroupsClassifiedAsHeldForSaleExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__80-1": { "value": "5.10. Intangible assets and goodwill
A. Recognition and measurement
Research and development: Expenditure on research activities is recognised in profit and loss as incurred. Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercial feasible, future economic benefits are probable and Viohalco\u2019s companies intend and have sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses.
Software programs: Software licenses are recorded at their acquisition cost less accumulated amortisation. These assets are amortised on the straight line method over their estimated useful lives, which ranges between 3 to 5 years. Expenses that are associated with the software\u2019s maintenance are recognised in profit or loss in the year in which they are incurred.
Other intangible assets: Other intangible assets, including customer relationships, patents and trademarks, that are acquired by Viohalco and its companies and have finite useful lives are measured at cost less accumulated amortisation and any accumulated impairment losses. Other intangible assets having indefinite useful lives are measured at cost less accumulated impairment losses.
B. Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.
C. Amortisation and useful lives
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values using the straight-line method over their estimated useful lives and is recognised in profit or loss.The estimated useful lives for the current and comparative periods are as follows:
Trademarks and licenses\t10 \u2013 15 years
Software programs\t3 \u2013 5 years
Some intangible assets included in \u201cTrademarks and licences\u201d have indefinite useful lives and are therefore not amortised, but subject to an impairment testing. See Note 19 for detailed information.
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIntangibleAssetsOtherThanGoodwillExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__88": { "value": "Research and development: Expenditure on research activities is recognised in profit and loss as incurred. Development expenditure is capitalised only if the expenditure can be measured reliably, the product or process is technically and commercial feasible, future economic benefits are probable and Viohalco\u2019s companies intend and have sufficient resources to complete development and to use or sell the asset. Otherwise, it is recognised in profit or loss as incurred. Subsequent to initial recognition, development expenditure is measured at cost less accumulated amortisation and any accumulated impairment losses.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__94": { "value": "5.11. Investment property
Investment property, which includes land, buildings and right of use assets, is owned by Viohalco and its subsidiaries for the collection of rents and is not used for owner purposes. Investment property is presented at cost less depreciation. When the carrying amounts of investment property exceed their recoverable value, the difference (impairment loss) is directly recorded in profit and loss as an expense. The reversal of impairment losses is also recognised in profit and loss as income. Land is not depreciated. The buildings are depreciated by applying the straight-line method. The expected useful life of buildings is 18-33 years.
Management exercises judgement to determine whether a property qualifies as investment property or not. The criteria related to this judgement are as follows:
\u2022\tWhether a property generates cash flows derived from rentals and capital appreciation largely independently of the other assets held by Viohalco;
\u2022\tWhether a property does not generate cash flows from the production or supply of goods or services or the use of property for administrative purposes that are attributable not only to property, but also to other assets used in the production or supply process;
\u2022\tWhether a building that is vacant will be held to be leased out or for capital appreciation;
\u2022\tWhether a property that is being constructed or developed for future use as investment property;
\u2022\tWhether Viohalco holds land for a currently undetermined future use.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__98-1": { "value": "5.13. Impairment
A. Non-derivative financial assets
Financial instruments and contract assets
Viohalco recognises loss allowances for ECLs on:
financial assets measured at amortised cost;
contract assets;
lease receivables.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs, except for cash and cash equivalents (12-month expected credit loss).
Viohalco considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations in full, without recourse by Viohalco companies to actions such as realizing security (if any is held).
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which Viohalco companies are exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that Viohalco expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. Impairment losses related to trade and other receivables, including contract assets, are presented separately in the statement of profit or loss.
Write-off
The gross carrying amount of a financial asset is written off when Viohalco has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For all customers, Viohalco individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. Viohalco expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with Viohalco\u2019s procedures for recovery of amounts due.
B. Non-financial assets
At each reporting date, Viohalco and its companies review the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset\u2019s recoverable amount is estimated.
Goodwill and intangible assets with indefinite useful life is tested annually for impairment loss.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Viohalco companies, also, include in their review of the recoverable amounts assumptions related to the consequences of climate change.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss under \u2019Other expenses\u2018. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed.
For other assets, an impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
(b) Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI \u2013 debt investment; FVOCI \u2013 equity investment; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless Viohalco changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
-\tit is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
-\tits contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, Viohalco may irrevocably elect to present subsequent changes in the investment\u2019s fair value in OCI. This election is made on an investment-by-investment basis.
All financial assets (except derivatives to which cash flow hedging is applied) not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. On initial recognition, Viohalco may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL, if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Financial assets \u2013 Business model assessment:
Viohalco makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with Viohalco companies\u2019continuing recognition of the assets.
Financial assets \u2013 Assessment whether contractual cash flows are solely payments of principal and interest:
For the purposes of this assessment, \u2018principal\u2019 is defined as the fair value of the financial asset on initial recognition. \u2018Interest\u2019 is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin. In assessing whether the contractual cash flows are solely payments of principal and interest, Viohalco considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, Viohalco considers:
contingent events that would change the amount or timing of cash flows;
terms that may adjust the contractual coupon rate, including variable-rate features;
prepayment and extension features; and
terms that limit the claim to cash flows from specified assets (e.g. non-recourse features).
Financial assets \u2013 Subsequent measurement and gains and losses:
Financial assets at FVTPL | These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. |
Financial assets at amortised cost | These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. |
Debt investments at FVOCI | These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. |
Equity investments at FVOCI | These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. |
A. Non-derivative financial assets
Financial instruments and contract assets
Viohalco recognises loss allowances for ECLs on:
financial assets measured at amortised cost;
contract assets;
lease receivables.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs, except for cash and cash equivalents (12-month expected credit loss).
Viohalco considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations in full, without recourse by Viohalco companies to actions such as realizing security (if any is held).
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which Viohalco companies are exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that Viohalco expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. Impairment losses related to trade and other receivables, including contract assets, are presented separately in the statement of profit or loss.
Write-off
The gross carrying amount of a financial asset is written off when Viohalco has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For all customers, Viohalco individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. Viohalco expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with Viohalco\u2019s procedures for recovery of amounts due.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__101-1": { "value": "A. Non-derivative financial assets
Financial instruments and contract assets
Viohalco recognises loss allowances for ECLs on:
financial assets measured at amortised cost;
contract assets;
lease receivables.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs, except for cash and cash equivalents (12-month expected credit loss).
Viohalco considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations in full, without recourse by Viohalco companies to actions such as realizing security (if any is held).
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which Viohalco companies are exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that Viohalco expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. Impairment losses related to trade and other receivables, including contract assets, are presented separately in the statement of profit or loss.
Write-off
The gross carrying amount of a financial asset is written off when Viohalco has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For all customers, Viohalco individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. Viohalco expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with Viohalco\u2019s procedures for recovery of amounts due.
(a) Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when Viohalco becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__102-1": { "value": "A. Non-derivative financial assets
Financial instruments and contract assets
Viohalco recognises loss allowances for ECLs on:
financial assets measured at amortised cost;
contract assets;
lease receivables.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs, except for cash and cash equivalents (12-month expected credit loss).
Viohalco considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations in full, without recourse by Viohalco companies to actions such as realizing security (if any is held).
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which Viohalco companies are exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that Viohalco expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. Impairment losses related to trade and other receivables, including contract assets, are presented separately in the statement of profit or loss.
Write-off
The gross carrying amount of a financial asset is written off when Viohalco has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For all customers, Viohalco individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. Viohalco expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with Viohalco\u2019s procedures for recovery of amounts due.
5.15. Financial instruments
(a) Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when Viohalco becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.
(b) Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI \u2013 debt investment; FVOCI \u2013 equity investment; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless Viohalco changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
-\tit is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
-\tits contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, Viohalco may irrevocably elect to present subsequent changes in the investment\u2019s fair value in OCI. This election is made on an investment-by-investment basis.
All financial assets (except derivatives to which cash flow hedging is applied) not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. On initial recognition, Viohalco may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL, if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Financial assets \u2013 Business model assessment:
Viohalco makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with Viohalco companies\u2019continuing recognition of the assets.
Financial assets \u2013 Assessment whether contractual cash flows are solely payments of principal and interest:
For the purposes of this assessment, \u2018principal\u2019 is defined as the fair value of the financial asset on initial recognition. \u2018Interest\u2019 is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin. In assessing whether the contractual cash flows are solely payments of principal and interest, Viohalco considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, Viohalco considers:
contingent events that would change the amount or timing of cash flows;
terms that may adjust the contractual coupon rate, including variable-rate features;
prepayment and extension features; and
terms that limit the claim to cash flows from specified assets (e.g. non-recourse features).
Financial assets \u2013 Subsequent measurement and gains and losses:
Financial assets at FVTPL | These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. |
Financial assets at amortised cost | These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. |
Debt investments at FVOCI | These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. |
Equity investments at FVOCI | These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. |
Financial liabilities \u2013 Classification, subsequent measurement and gains and losses:
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial
liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
(c) Derecognition
Financial assets
Viohalco derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which Viohalco neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
Viohalco enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised.
Financial liabilities
Viohalco derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. Viohalco also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
(d) Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, Viohalco currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
(e) Derivatives and hedge accounting
Viohalco\u2019s companies hold derivative financial instruments designated as fair value or cash flow hedges. Derivatives are used to cover risks arising from changes in prices of metals, fluctuations of foreign exchange rates, changes in interest rates on borrowings and changes in prices of energy.
Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are generally recognised in profit or loss, unless the instrument qualifies for cash flow hedge accounting. Gain or losses from derivatives are classified as operating or financing expense according to the classification of the hedged item.
Power Purchase Agreements (PPAs)
Viohalco first assesses Power Purchase Agreements (PPAs) and the related Green certificates of origin (GoOs) contracts, following the requirements of IFRS 10, IFRS 11 or IAS 28, to conclude whether there is a control, joint control or a significant influence over the underlying renewable facilities and if not, then the requirements of IFRS 16 for lease recognition are considered. When the outcome of the above assessment is that Viohalco companies neither control, joint control or exercise significant influence nor leases the underlying facilities, then such agreements are accounted for as derivative financial instruments to the extent that the criteria for exemption from IFRS 9 scope as own-use contracts are not met.
Accordingly, where the agreements to deliver non-financial items (e.g. electricity, GoOs) are in accordance with the expected purchase requirements of Viohalco, the own-use criterion of IFRS 9 is met and these are accounted for as executory contracts. Thereafter, the executory agreements are further assessed whether they contain embedded derivatives which meet IFRS 9 requirements to be accounted for separately from their host contract.
Fair value hedge
Derivatives are designated as fair value hedges when the exposure to changes in the fair value of a recognized financial asset or liability is hedged.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the Consolidated Statement of Profit or Loss, along with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Cash flow hedge
The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognised in the \u2019Hedging reserve\u2018. Any ineffective proportion is recognized immediately in profit or loss.
The amounts recorded in \u201cHedging Reserve\u201d are reclassified to the consolidated statement of profit or loss in the same period or periods during which the hedged forecast cash flows affect profit or loss or the hedged item affects profit or loss. When a hedge
item is sold or when the hedging proportion no longer meets the hedge accounting criteria, hedge accounting is discontinued prospectively, the amounts recorded in \u2018Hedging reserve\u2019 remain as a reserve and are reclassified to the consolidated statement of profit or loss when the hedged asset affects profits or losses.
In the case of a hedge on a forecast future transaction which is no longer expected to be realized, the amounts recorded in \u2018Hedging reserve\u2019 are reclassified to the consolidated statement of profit or loss.
Viohalco\u2019s companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively), the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__103-1": { "value": "A. Non-derivative financial assets
Financial instruments and contract assets
Viohalco recognises loss allowances for ECLs on:
financial assets measured at amortised cost;
contract assets;
lease receivables.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs, except for cash and cash equivalents (12-month expected credit loss).
Viohalco considers a financial asset to be in default when the borrower is unlikely to pay its credit obligations in full, without recourse by Viohalco companies to actions such as realizing security (if any is held).
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).
The maximum period considered when estimating ECLs is the maximum contractual period over which Viohalco companies are exposed to credit risk.
Measurement of ECLs
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the contract and the cash flows that Viohalco expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets. Impairment losses related to trade and other receivables, including contract assets, are presented separately in the statement of profit or loss.
Write-off
The gross carrying amount of a financial asset is written off when Viohalco has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For all customers, Viohalco individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. Viohalco expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with Viohalco\u2019s procedures for recovery of amounts due.
(a) Recognition and initial measurement
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when Viohalco becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.
(b) Classification and subsequent measurement
Financial assets
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI \u2013 debt investment; FVOCI \u2013 equity investment; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless Viohalco changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
-\tit is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
-\tits contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, Viohalco may irrevocably elect to present subsequent changes in the investment\u2019s fair value in OCI. This election is made on an investment-by-investment basis.
All financial assets (except derivatives to which cash flow hedging is applied) not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. On initial recognition, Viohalco may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL, if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
Financial assets \u2013 Business model assessment:
Viohalco makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with Viohalco companies\u2019continuing recognition of the assets.
Financial assets \u2013 Assessment whether contractual cash flows are solely payments of principal and interest:
For the purposes of this assessment, \u2018principal\u2019 is defined as the fair value of the financial asset on initial recognition. \u2018Interest\u2019 is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin. In assessing whether the contractual cash flows are solely payments of principal and interest, Viohalco considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, Viohalco considers:
contingent events that would change the amount or timing of cash flows;
terms that may adjust the contractual coupon rate, including variable-rate features;
prepayment and extension features; and
terms that limit the claim to cash flows from specified assets (e.g. non-recourse features).
Financial assets \u2013 Subsequent measurement and gains and losses:
Financial assets at FVTPL | These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. |
Financial assets at amortised cost | These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. |
Debt investments at FVOCI | These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. |
Equity investments at FVOCI | These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. |
(c) Derecognition
Financial assets
Viohalco derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which Viohalco neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
Viohalco enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised.
(d) Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, Viohalco currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
(e) Derivatives and hedge accounting
Viohalco\u2019s companies hold derivative financial instruments designated as fair value or cash flow hedges. Derivatives are used to cover risks arising from changes in prices of metals, fluctuations of foreign exchange rates, changes in interest rates on borrowings and changes in prices of energy.
Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are generally recognised in profit or loss, unless the instrument qualifies for cash flow hedge accounting. Gain or losses from derivatives are classified as operating or financing expense according to the classification of the hedged item.
Power Purchase Agreements (PPAs)
Viohalco first assesses Power Purchase Agreements (PPAs) and the related Green certificates of origin (GoOs) contracts, following the requirements of IFRS 10, IFRS 11 or IAS 28, to conclude whether there is a control, joint control or a significant influence over the underlying renewable facilities and if not, then the requirements of IFRS 16 for lease recognition are considered. When the outcome of the above assessment is that Viohalco companies neither control, joint control or exercise significant influence nor leases the underlying facilities, then such agreements are accounted for as derivative financial instruments to the extent that the criteria for exemption from IFRS 9 scope as own-use contracts are not met.
Accordingly, where the agreements to deliver non-financial items (e.g. electricity, GoOs) are in accordance with the expected purchase requirements of Viohalco, the own-use criterion of IFRS 9 is met and these are accounted for as executory contracts. Thereafter, the executory agreements are further assessed whether they contain embedded derivatives which meet IFRS 9 requirements to be accounted for separately from their host contract.
Fair value hedge
Derivatives are designated as fair value hedges when the exposure to changes in the fair value of a recognized financial asset or liability is hedged.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the Consolidated Statement of Profit or Loss, along with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Cash flow hedge
The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognised in the \u2019Hedging reserve\u2018. Any ineffective proportion is recognized immediately in profit or loss.
The amounts recorded in \u201cHedging Reserve\u201d are reclassified to the consolidated statement of profit or loss in the same period or periods during which the hedged forecast cash flows affect profit or loss or the hedged item affects profit or loss. When a hedge
item is sold or when the hedging proportion no longer meets the hedge accounting criteria, hedge accounting is discontinued prospectively, the amounts recorded in \u2018Hedging reserve\u2019 remain as a reserve and are reclassified to the consolidated statement of profit or loss when the hedged asset affects profits or losses.
In the case of a hedge on a forecast future transaction which is no longer expected to be realized, the amounts recorded in \u2018Hedging reserve\u2019 are reclassified to the consolidated statement of profit or loss.
Viohalco\u2019s companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively), the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__104": { "value": "B. Non-financial assets
At each reporting date, Viohalco and its companies review the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset\u2019s recoverable amount is estimated.
Goodwill and intangible assets with indefinite useful life is tested annually for impairment loss.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Viohalco companies, also, include in their review of the recoverable amounts assumptions related to the consequences of climate change.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. Impairment losses are recognised in profit or loss under \u2019Other expenses\u2018. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis. An impairment loss in respect of goodwill is not reversed.
For other assets, an impairment loss is reversed only to the extent that the asset\u2019s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__108": { "value": "5.14. Leases
At inception of a contract, Viohalco assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Viohalco companies use the definition of a lease in IFRS 16.
Accounting for lease contracts as a lessee
Viohalco companies lease various offices, warehouses, machinery and cars. Rental contracts are usually made for fixed periods of 1 to 5 years, with some exceptions like lease of specialized machinery, ports, gas cylinders and land which are leased for longer periods.
Viohalco recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, comprising the following:
the amount of the initial measurement of lease liability;
any lease payments made at or before the commencement date less any lease incentives received;
any initial direct costs; and
restoration costs.
Subsequently, the right-of-use asset is measured at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the following lease payments:
fixed payments (including in-substance fixed payments), less any lease incentives receivable;
variable lease payment that are based on an index or a rate;
amounts expected to be payable by the lessee under residual value guarantees;
the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
Lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate of the component that entered into the lease agreement. Generally, Viohalco uses its incremental borrowing rate as the discount rate.
This is the rate that the lessee, i.e. each subsidiary of Viohalco, would have to pay on the commencement date of the lease for a loan of a similar term, and with similar security, to obtain an asset of similar value to the right-of-use asset in similar economic environment.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payment made. It is remeasured if there is a modification that is not accounted for as a separate lease; when there is a change in future lease payments arising from a change in an index or rate; a change in the estimate of the amount expected to be payable under a residual value guarantee; and changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.
Lease liabilities and right-of-use assets are presented separately in the statement of financial position. Right-of-use assets that meet the definition of investment property are presented within \u2018Investment property\u2019.
Viohalco has elected not to separate non-lease components from lease components.
Payments associated with leases of 12 months or less and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Low-value assets comprise IT-equipment and small items of office furniture.
Viohalco applies judgement to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessment of whether Viohalco is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognised.
Viohalco has elected to present interest paid related to lease liabilities in the Consolidated Statement of Cash Flows, within the line \u2019Interest charges & related expenses paid\u2018 in operating activities.
Accounting for lease contracts as a lessor
Leases in which Viohalco companies do not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income is recognised as revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognised as expense over the lease term on the same basis as lease income.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__110-1": { "value": "5.14. Leases
At inception of a contract, Viohalco assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Viohalco companies use the definition of a lease in IFRS 16.
Accounting for lease contracts as a lessee
Viohalco companies lease various offices, warehouses, machinery and cars. Rental contracts are usually made for fixed periods of 1 to 5 years, with some exceptions like lease of specialized machinery, ports, gas cylinders and land which are leased for longer periods.
Viohalco recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, comprising the following:
the amount of the initial measurement of lease liability;
any lease payments made at or before the commencement date less any lease incentives received;
any initial direct costs; and
restoration costs.
Subsequently, the right-of-use asset is measured at cost less any accumulated depreciation and impairment losses and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the following lease payments:
fixed payments (including in-substance fixed payments), less any lease incentives receivable;
variable lease payment that are based on an index or a rate;
amounts expected to be payable by the lessee under residual value guarantees;
the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
Lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate of the component that entered into the lease agreement. Generally, Viohalco uses its incremental borrowing rate as the discount rate.
This is the rate that the lessee, i.e. each subsidiary of Viohalco, would have to pay on the commencement date of the lease for a loan of a similar term, and with similar security, to obtain an asset of similar value to the right-of-use asset in similar economic environment.
The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payment made. It is remeasured if there is a modification that is not accounted for as a separate lease; when there is a change in future lease payments arising from a change in an index or rate; a change in the estimate of the amount expected to be payable under a residual value guarantee; and changes in the assessment of whether a purchase or extension option is reasonably certain to be exercised or a termination option is reasonably certain not to be exercised.
Lease liabilities and right-of-use assets are presented separately in the statement of financial position. Right-of-use assets that meet the definition of investment property are presented within \u2018Investment property\u2019.
Viohalco has elected not to separate non-lease components from lease components.
Payments associated with leases of 12 months or less and leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Low-value assets comprise IT-equipment and small items of office furniture.
Viohalco applies judgement to determine the lease term for some lease contracts in which it is a lessee that include renewal options. The assessment of whether Viohalco is reasonably certain to exercise such options impacts the lease term, which significantly affects the amount of lease liabilities and right-of-use assets recognised.
Viohalco has elected to present interest paid related to lease liabilities in the Consolidated Statement of Cash Flows, within the line \u2019Interest charges & related expenses paid\u2018 in operating activities.
Accounting for lease contracts as a lessor
Leases in which Viohalco companies do not transfer substantially all the risks and rewards incidental to ownership of an asset are classified as operating leases. Rental income is recognised as revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognised as expense over the lease term on the same basis as lease income.
Financial liabilities \u2013 Classification, subsequent measurement and gains and losses:
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial
liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
Financial liabilities
Viohalco derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. Viohalco also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
(d) Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, Viohalco currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
(e) Derivatives and hedge accounting
Viohalco\u2019s companies hold derivative financial instruments designated as fair value or cash flow hedges. Derivatives are used to cover risks arising from changes in prices of metals, fluctuations of foreign exchange rates, changes in interest rates on borrowings and changes in prices of energy.
Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are generally recognised in profit or loss, unless the instrument qualifies for cash flow hedge accounting. Gain or losses from derivatives are classified as operating or financing expense according to the classification of the hedged item.
Power Purchase Agreements (PPAs)
Viohalco first assesses Power Purchase Agreements (PPAs) and the related Green certificates of origin (GoOs) contracts, following the requirements of IFRS 10, IFRS 11 or IAS 28, to conclude whether there is a control, joint control or a significant influence over the underlying renewable facilities and if not, then the requirements of IFRS 16 for lease recognition are considered. When the outcome of the above assessment is that Viohalco companies neither control, joint control or exercise significant influence nor leases the underlying facilities, then such agreements are accounted for as derivative financial instruments to the extent that the criteria for exemption from IFRS 9 scope as own-use contracts are not met.
Accordingly, where the agreements to deliver non-financial items (e.g. electricity, GoOs) are in accordance with the expected purchase requirements of Viohalco, the own-use criterion of IFRS 9 is met and these are accounted for as executory contracts. Thereafter, the executory agreements are further assessed whether they contain embedded derivatives which meet IFRS 9 requirements to be accounted for separately from their host contract.
Fair value hedge
Derivatives are designated as fair value hedges when the exposure to changes in the fair value of a recognized financial asset or liability is hedged.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the Consolidated Statement of Profit or Loss, along with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__112": { "value": "Viohalco has elected to present interest paid related to lease liabilities in the Consolidated Statement of Cash Flows, within the line \u2019Interest charges & related expenses paid\u2018 in operating activities.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__119-1": { "value": "On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI \u2013 debt investment; FVOCI \u2013 equity investment; or FVTPL.All financial assets (except derivatives to which cash flow hedging is applied) not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. On initial recognition, Viohalco may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL, if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.Financial assets \u2013 Subsequent measurement and gains and losses:
Financial assets at FVTPL | These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. |
Financial assets at amortised cost | These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss. |
Debt investments at FVOCI | These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss. Other net gains and losses are recognised in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss. |
Equity investments at FVOCI | These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss. |
(e) Derivatives and hedge accounting
Viohalco\u2019s companies hold derivative financial instruments designated as fair value or cash flow hedges. Derivatives are used to cover risks arising from changes in prices of metals, fluctuations of foreign exchange rates, changes in interest rates on borrowings and changes in prices of energy.
Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are generally recognised in profit or loss, unless the instrument qualifies for cash flow hedge accounting. Gain or losses from derivatives are classified as operating or financing expense according to the classification of the hedged item.
Power Purchase Agreements (PPAs)
Viohalco first assesses Power Purchase Agreements (PPAs) and the related Green certificates of origin (GoOs) contracts, following the requirements of IFRS 10, IFRS 11 or IAS 28, to conclude whether there is a control, joint control or a significant influence over the underlying renewable facilities and if not, then the requirements of IFRS 16 for lease recognition are considered. When the outcome of the above assessment is that Viohalco companies neither control, joint control or exercise significant influence nor leases the underlying facilities, then such agreements are accounted for as derivative financial instruments to the extent that the criteria for exemption from IFRS 9 scope as own-use contracts are not met.
Accordingly, where the agreements to deliver non-financial items (e.g. electricity, GoOs) are in accordance with the expected purchase requirements of Viohalco, the own-use criterion of IFRS 9 is met and these are accounted for as executory contracts. Thereafter, the executory agreements are further assessed whether they contain embedded derivatives which meet IFRS 9 requirements to be accounted for separately from their host contract.
Fair value hedge
Derivatives are designated as fair value hedges when the exposure to changes in the fair value of a recognized financial asset or liability is hedged.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the Consolidated Statement of Profit or Loss, along with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__123-1": { "value": "Financial liabilities \u2013 Classification, subsequent measurement and gains and losses:
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial
liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
Financial liabilities
Viohalco derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. Viohalco also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherPayablesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__124-1": { "value": "Financial liabilities \u2013 Classification, subsequent measurement and gains and losses:
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial
liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
Financial liabilities
Viohalco derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. Viohalco also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__125-1": { "value": "(c) Derecognition
Financial assets
Viohalco derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which Viohalco neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
Viohalco enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised.
Financial liabilities
Viohalco derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. Viohalco also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__131": { "value": "(d) Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, Viohalco currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__134": { "value": "(e) Derivatives and hedge accounting
Viohalco\u2019s companies hold derivative financial instruments designated as fair value or cash flow hedges. Derivatives are used to cover risks arising from changes in prices of metals, fluctuations of foreign exchange rates, changes in interest rates on borrowings and changes in prices of energy.
Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are generally recognised in profit or loss, unless the instrument qualifies for cash flow hedge accounting. Gain or losses from derivatives are classified as operating or financing expense according to the classification of the hedged item.
Power Purchase Agreements (PPAs)
Viohalco first assesses Power Purchase Agreements (PPAs) and the related Green certificates of origin (GoOs) contracts, following the requirements of IFRS 10, IFRS 11 or IAS 28, to conclude whether there is a control, joint control or a significant influence over the underlying renewable facilities and if not, then the requirements of IFRS 16 for lease recognition are considered. When the outcome of the above assessment is that Viohalco companies neither control, joint control or exercise significant influence nor leases the underlying facilities, then such agreements are accounted for as derivative financial instruments to the extent that the criteria for exemption from IFRS 9 scope as own-use contracts are not met.
Accordingly, where the agreements to deliver non-financial items (e.g. electricity, GoOs) are in accordance with the expected purchase requirements of Viohalco, the own-use criterion of IFRS 9 is met and these are accounted for as executory contracts. Thereafter, the executory agreements are further assessed whether they contain embedded derivatives which meet IFRS 9 requirements to be accounted for separately from their host contract.
Fair value hedge
Derivatives are designated as fair value hedges when the exposure to changes in the fair value of a recognized financial asset or liability is hedged.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the Consolidated Statement of Profit or Loss, along with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Cash flow hedge
The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognised in the \u2019Hedging reserve\u2018. Any ineffective proportion is recognized immediately in profit or loss.
The amounts recorded in \u201cHedging Reserve\u201d are reclassified to the consolidated statement of profit or loss in the same period or periods during which the hedged forecast cash flows affect profit or loss or the hedged item affects profit or loss. When a hedge
item is sold or when the hedging proportion no longer meets the hedge accounting criteria, hedge accounting is discontinued prospectively, the amounts recorded in \u2018Hedging reserve\u2019 remain as a reserve and are reclassified to the consolidated statement of profit or loss when the hedged asset affects profits or losses.
In the case of a hedge on a forecast future transaction which is no longer expected to be realized, the amounts recorded in \u2018Hedging reserve\u2019 are reclassified to the consolidated statement of profit or loss.
Viohalco\u2019s companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively), the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__135": { "value": "(e) Derivatives and hedge accounting
Viohalco\u2019s companies hold derivative financial instruments designated as fair value or cash flow hedges. Derivatives are used to cover risks arising from changes in prices of metals, fluctuations of foreign exchange rates, changes in interest rates on borrowings and changes in prices of energy.
Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are generally recognised in profit or loss, unless the instrument qualifies for cash flow hedge accounting. Gain or losses from derivatives are classified as operating or financing expense according to the classification of the hedged item.
Power Purchase Agreements (PPAs)
Viohalco first assesses Power Purchase Agreements (PPAs) and the related Green certificates of origin (GoOs) contracts, following the requirements of IFRS 10, IFRS 11 or IAS 28, to conclude whether there is a control, joint control or a significant influence over the underlying renewable facilities and if not, then the requirements of IFRS 16 for lease recognition are considered. When the outcome of the above assessment is that Viohalco companies neither control, joint control or exercise significant influence nor leases the underlying facilities, then such agreements are accounted for as derivative financial instruments to the extent that the criteria for exemption from IFRS 9 scope as own-use contracts are not met.
Accordingly, where the agreements to deliver non-financial items (e.g. electricity, GoOs) are in accordance with the expected purchase requirements of Viohalco, the own-use criterion of IFRS 9 is met and these are accounted for as executory contracts. Thereafter, the executory agreements are further assessed whether they contain embedded derivatives which meet IFRS 9 requirements to be accounted for separately from their host contract.
Fair value hedge
Derivatives are designated as fair value hedges when the exposure to changes in the fair value of a recognized financial asset or liability is hedged.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the Consolidated Statement of Profit or Loss, along with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Cash flow hedge
The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognised in the \u2019Hedging reserve\u2018. Any ineffective proportion is recognized immediately in profit or loss.
The amounts recorded in \u201cHedging Reserve\u201d are reclassified to the consolidated statement of profit or loss in the same period or periods during which the hedged forecast cash flows affect profit or loss or the hedged item affects profit or loss. When a hedge
item is sold or when the hedging proportion no longer meets the hedge accounting criteria, hedge accounting is discontinued prospectively, the amounts recorded in \u2018Hedging reserve\u2019 remain as a reserve and are reclassified to the consolidated statement of profit or loss when the hedged asset affects profits or losses.
In the case of a hedge on a forecast future transaction which is no longer expected to be realized, the amounts recorded in \u2018Hedging reserve\u2019 are reclassified to the consolidated statement of profit or loss.
Viohalco\u2019s companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively), the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__136": { "value": "(e) Derivatives and hedge accounting
Viohalco\u2019s companies hold derivative financial instruments designated as fair value or cash flow hedges. Derivatives are used to cover risks arising from changes in prices of metals, fluctuations of foreign exchange rates, changes in interest rates on borrowings and changes in prices of energy.
Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in profit or loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value and changes therein are generally recognised in profit or loss, unless the instrument qualifies for cash flow hedge accounting. Gain or losses from derivatives are classified as operating or financing expense according to the classification of the hedged item.
Power Purchase Agreements (PPAs)
Viohalco first assesses Power Purchase Agreements (PPAs) and the related Green certificates of origin (GoOs) contracts, following the requirements of IFRS 10, IFRS 11 or IAS 28, to conclude whether there is a control, joint control or a significant influence over the underlying renewable facilities and if not, then the requirements of IFRS 16 for lease recognition are considered. When the outcome of the above assessment is that Viohalco companies neither control, joint control or exercise significant influence nor leases the underlying facilities, then such agreements are accounted for as derivative financial instruments to the extent that the criteria for exemption from IFRS 9 scope as own-use contracts are not met.
Accordingly, where the agreements to deliver non-financial items (e.g. electricity, GoOs) are in accordance with the expected purchase requirements of Viohalco, the own-use criterion of IFRS 9 is met and these are accounted for as executory contracts. Thereafter, the executory agreements are further assessed whether they contain embedded derivatives which meet IFRS 9 requirements to be accounted for separately from their host contract.
Fair value hedge
Derivatives are designated as fair value hedges when the exposure to changes in the fair value of a recognized financial asset or liability is hedged.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in the Consolidated Statement of Profit or Loss, along with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
Cash flow hedge
The effective portion of changes in the fair value of derivatives designated as cash flow hedges is recognised in the \u2019Hedging reserve\u2018. Any ineffective proportion is recognized immediately in profit or loss.
The amounts recorded in \u201cHedging Reserve\u201d are reclassified to the consolidated statement of profit or loss in the same period or periods during which the hedged forecast cash flows affect profit or loss or the hedged item affects profit or loss. When a hedge
item is sold or when the hedging proportion no longer meets the hedge accounting criteria, hedge accounting is discontinued prospectively, the amounts recorded in \u2018Hedging reserve\u2019 remain as a reserve and are reclassified to the consolidated statement of profit or loss when the hedged asset affects profits or losses.
In the case of a hedge on a forecast future transaction which is no longer expected to be realized, the amounts recorded in \u2018Hedging reserve\u2019 are reclassified to the consolidated statement of profit or loss.
Viohalco\u2019s companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively), the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__140": { "value": "5.16. Cash & cash equivalents
Cash and cash equivalents comprise cash on hand and deposits held at call with financial institutions and highly liquid deposits that are readily convertible (even before agreed maturity date) to known amounts of cash and subject to an insignificant risk of change in value.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__141": { "value": "5.17. Share capital
Shareholder\u2019s equity is composed of ordinary shares.
Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity. Income tax relating to transaction costs of an equity transaction is accounted in equity (see note 5.7).
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__143": { "value": "5.19. Earnings per Share
Viohalco presents basic and diluted earnings per share. Basic earnings per share are calculated by dividing the net profit/ loss attributable to holders of the Company\u2019s ordinary shares by the average weighted number of outstanding ordinary shares during each period.
Diluted earnings per share are determined by adjusting the profit or loss attributable to holders of ordinary shares and the average weighted number of outstanding ordinary shares by the effect of all diluted eventual ordinary shares consisting of convertible notes and shares with options granted to the staff.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEarningsPerShareExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__144": { "value": "5.20. Operating profit
Operating profit is the result generated from the continuing principal revenue-producing activities of Viohalco as well as other income and expenses related to operating activities. Operating profit excludes net finance costs, share of profit of equity-accounted investees and income taxes.
", "dimensions": { "concept": "ifrs-full:DescriptionOfOtherAccountingPoliciesRelevantToUnderstandingOfFinancialStatements", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__146": { "value": "The best evidence of the fair value of a financial instrument on initial recognition is normally the transaction price \u2013 i.e. the fair value of the consideration given or received. If Viohalco determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability, nor based on a valuation technique for which any unobservable inputs are judged to be insignificant in relation to the measurement, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out.", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognisingDifferenceBetweenFairValueAtInitialRecognitionAndAmountDeterminedUsingValuationTechniqueExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__148": { "value": "5.22. CO2Emission rights
Emission rights are accounted for under the net liability method, based on which Viohalco companies recognize a liability for emissions during the calendar year. Viohalco companies estimate the free allowances allocated and the emissions produced during the year. When emissions exceed free allowances, the companies recognize the future liability based on the net deficit and the budget estimate for the EUA price during the year. The projected deficit is covered at market prices by purchasing EUAs either on a forward or spot basis. The total cost of all forward and spot purchases represents the realized liability during the year.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmissionRightsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__149": { "value": "5.23. New standards, amendment to standards and interpretations of IFRS\u2019s
A number of new or amended standards became applicable for the current financial year and subsequent years. Viohalco has applied all of the new standards, interpretations and amendments to existing standards that were mandatory for the first time in the fiscal year beginning 1 January 2024 and none of the new or amended standards and interpretations has had material impact on recognition and measurement in the Consolidated Financial Statements.
Standards and Interpretations effective for the current financial year
The following new standard and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2024 and have been endorsed by the European Union:
Amendments to IAS 1 \u2018Presentation of Financial Statements: Classification of Liabilities as current or non-current\u2019, affect only the presentation of liabilities in the statement of financial position \u2014 not the amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose about those items. They:
\u2022\tClarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the \u201cright\u201d to defer settlement by at least twelve months and make explicit that only rights in place \u201cat the end of the reporting period\u201d should affect the classification of a liability;
\u2022\tClarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.
\u2022\tClarify how conditions with which an entity must comply within 12 months after the reporting period, such as covenants, affect the corresponding liability\u2019s classification.
Amendments to IAS 7 \u2018Statement of Cash Flows\u2019 and IFRS 7 \u2018Financial Instruments: Disclosures\u2019: Supplier Finance Arrangements.
The amendment describes the characteristics for which reporters will have to provide additional disclosures regarding the impact of supplier finance arrangements on liabilities, cash flows and exposure to liquidity risk.
As a result of the adoption of the amendments to IAS 7 and IFRS 7, the Group provided new disclosures for liabilities under supplier finance arrangements in note 27.
Amendments to IFRS 16 \u2018Leases\u2019: Lease Liability in a Sale and Leaseback.The amendments explain how an entity accounts for a sale and leaseback after the date of the transaction, specifically where some or all the lease payments are variable lease payments that do not depend on an index or rate. They state that, in subsequently measuring the lease liability, the seller-lessee determines \u2018lease payments\u2019 and \u2018revised lease payments\u2019 in a way that does not result in the seller-lessee recognising any amount of the gain or loss that relates to the right of use it retains. Any gains and losses relating to the full or partial termination of a lease continue to be recognised when they occur as these relate to the right of use terminated and not the right of use retained.
Standards and Interpretations effective for subsequent periods
Certain new accounting standards and amendments to accounting standards have been published that are not mandatory for 31 December 2024 reporting periods and have not been early adopted by the Group. The effect of the following amendments is currently assessed by management and they are not expected to have a material impact on Viohalco Consolidated Financial Statements in the current or future reporting periods.
Amendments to IAS 21 \u2018The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability\u2019 (effective 1 January 2025). IAS 21 previously did not cover how to determine exchange rates in case there is long-term lack of exchangeability and the spot rate to be applied by the company is not observable. The narrow scope amendments add specific requirements on:
\u2022\tDetermining when a currency is exchangeable into another and when it is not;
\u2022\tDetermining the exchange rate to apply in case a currency is not exchangeable;
\u2022\tAdditional disclosures to provide when a currency is not exchangeable.
The amendments have been endorsed by the EU.
Amendments to IFRS 9 and to IFRS 7: the Classification and Measurement of Financial Instruments (effective on 1 January 2026).On 30 May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to:
\u2022\tClarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
\u2022\tClarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
\u2022\tAdd new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement environment, social and governance (ESG) targets); and
\u2022\tUpdate the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).
The amendments have not yet been endorsed by the EU.
Amendments to IFRS 9 and to IFRS 7: Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7 (effective on 1 January 2026).On 18 December 2024, the IASB issued amendments to IFRS 9 and IFRS 7:
\u2022\tclarify the application of the \u2018own-use\u2019 requirements;
\u2022\tpermit hedge accounting if these contracts are used as hedging instruments; and
\u2022\tnew disclosure requirements to enable investors to understand the effect of these contracts on a company\u2019s financial performance and cash flows.
The amendments have not yet been endorsed by the EU.
IFRS 18 Presentation and Disclosure in Financial Statements (effective on 1 January 2027).The IASB has issued IFRS 18, the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:
\u2022\tthe structure of the statement of profit or loss;
\u2022\trequired disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity\u2019s financial statements (that is, management-defined performance measures); and
\u2022\tenhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its \u2018operating profit or loss\u2019.
IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information. The changes in presentation and disclosure required by IFRS 18 might require system and process changes.
The new standard has not yet been endorsed by the EU.
IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective on 1 January 2027). The International Accounting Standard Board (IASB) has issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 \u2018Subsidiaries without Public Accountability: Disclosures\u2019 permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries\u2019 financial statements while maintaining the usefulness of the information for users of their financial statements.
The new standard has not yet been endorsed by the EU.
Annual improvements Volume 11 (effective 1 January 2026).
Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:
IFRS 1 First-time Adoption of International Financial Reporting Standards;
IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
IFRS 9 Financial Instruments;
IFRS 10 Consolidated Financial Statements; and
IAS 7 Statement of Cash Flows.
The amendments have not yet been endorsed by the EU.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__150": { "value": "5.23. New standards, amendment to standards and interpretations of IFRS\u2019s
A number of new or amended standards became applicable for the current financial year and subsequent years. Viohalco has applied all of the new standards, interpretations and amendments to existing standards that were mandatory for the first time in the fiscal year beginning 1 January 2024 and none of the new or amended standards and interpretations has had material impact on recognition and measurement in the Consolidated Financial Statements.
Standards and Interpretations effective for the current financial year
The following new standard and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2024 and have been endorsed by the European Union:
Amendments to IAS 1 \u2018Presentation of Financial Statements: Classification of Liabilities as current or non-current\u2019, affect only the presentation of liabilities in the statement of financial position \u2014 not the amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose about those items. They:
\u2022\tClarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the \u201cright\u201d to defer settlement by at least twelve months and make explicit that only rights in place \u201cat the end of the reporting period\u201d should affect the classification of a liability;
\u2022\tClarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.
\u2022\tClarify how conditions with which an entity must comply within 12 months after the reporting period, such as covenants, affect the corresponding liability\u2019s classification.
Amendments to IAS 7 \u2018Statement of Cash Flows\u2019 and IFRS 7 \u2018Financial Instruments: Disclosures\u2019: Supplier Finance Arrangements.
The amendment describes the characteristics for which reporters will have to provide additional disclosures regarding the impact of supplier finance arrangements on liabilities, cash flows and exposure to liquidity risk.
As a result of the adoption of the amendments to IAS 7 and IFRS 7, the Group provided new disclosures for liabilities under supplier finance arrangements in note 27.
Amendments to IFRS 16 \u2018Leases\u2019: Lease Liability in a Sale and Leaseback.The amendments explain how an entity accounts for a sale and leaseback after the date of the transaction, specifically where some or all the lease payments are variable lease payments that do not depend on an index or rate. They state that, in subsequently measuring the lease liability, the seller-lessee determines \u2018lease payments\u2019 and \u2018revised lease payments\u2019 in a way that does not result in the seller-lessee recognising any amount of the gain or loss that relates to the right of use it retains. Any gains and losses relating to the full or partial termination of a lease continue to be recognised when they occur as these relate to the right of use terminated and not the right of use retained.
Standards and Interpretations effective for subsequent periods
Certain new accounting standards and amendments to accounting standards have been published that are not mandatory for 31 December 2024 reporting periods and have not been early adopted by the Group. The effect of the following amendments is currently assessed by management and they are not expected to have a material impact on Viohalco Consolidated Financial Statements in the current or future reporting periods.
Amendments to IAS 21 \u2018The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability\u2019 (effective 1 January 2025). IAS 21 previously did not cover how to determine exchange rates in case there is long-term lack of exchangeability and the spot rate to be applied by the company is not observable. The narrow scope amendments add specific requirements on:
\u2022\tDetermining when a currency is exchangeable into another and when it is not;
\u2022\tDetermining the exchange rate to apply in case a currency is not exchangeable;
\u2022\tAdditional disclosures to provide when a currency is not exchangeable.
The amendments have been endorsed by the EU.
Amendments to IFRS 9 and to IFRS 7: the Classification and Measurement of Financial Instruments (effective on 1 January 2026).On 30 May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to:
\u2022\tClarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
\u2022\tClarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
\u2022\tAdd new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement environment, social and governance (ESG) targets); and
\u2022\tUpdate the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).
The amendments have not yet been endorsed by the EU.
Amendments to IFRS 9 and to IFRS 7: Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7 (effective on 1 January 2026).On 18 December 2024, the IASB issued amendments to IFRS 9 and IFRS 7:
\u2022\tclarify the application of the \u2018own-use\u2019 requirements;
\u2022\tpermit hedge accounting if these contracts are used as hedging instruments; and
\u2022\tnew disclosure requirements to enable investors to understand the effect of these contracts on a company\u2019s financial performance and cash flows.
The amendments have not yet been endorsed by the EU.
IFRS 18 Presentation and Disclosure in Financial Statements (effective on 1 January 2027).The IASB has issued IFRS 18, the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:
\u2022\tthe structure of the statement of profit or loss;
\u2022\trequired disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity\u2019s financial statements (that is, management-defined performance measures); and
\u2022\tenhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its \u2018operating profit or loss\u2019.
IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information. The changes in presentation and disclosure required by IFRS 18 might require system and process changes.
The new standard has not yet been endorsed by the EU.
IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective on 1 January 2027). The International Accounting Standard Board (IASB) has issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 \u2018Subsidiaries without Public Accountability: Disclosures\u2019 permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries\u2019 financial statements while maintaining the usefulness of the information for users of their financial statements.
The new standard has not yet been endorsed by the EU.
Annual improvements Volume 11 (effective 1 January 2026).
Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:
IFRS 1 First-time Adoption of International Financial Reporting Standards;
IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
IFRS 9 Financial Instruments;
IFRS 10 Consolidated Financial Statements; and
IAS 7 Statement of Cash Flows.
The amendments have not yet been endorsed by the EU.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__151": { "value": "5.23. New standards, amendment to standards and interpretations of IFRS\u2019s
A number of new or amended standards became applicable for the current financial year and subsequent years. Viohalco has applied all of the new standards, interpretations and amendments to existing standards that were mandatory for the first time in the fiscal year beginning 1 January 2024 and none of the new or amended standards and interpretations has had material impact on recognition and measurement in the Consolidated Financial Statements.
", "dimensions": { "concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__152": { "value": "Standards and Interpretations effective for the current financial year
The following new standard and amendments to standards are mandatory for the first time for the financial year beginning 1 January 2024 and have been endorsed by the European Union:
Amendments to IAS 1 \u2018Presentation of Financial Statements: Classification of Liabilities as current or non-current\u2019, affect only the presentation of liabilities in the statement of financial position \u2014 not the amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose about those items. They:
\u2022\tClarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period and align the wording in all affected paragraphs to refer to the \u201cright\u201d to defer settlement by at least twelve months and make explicit that only rights in place \u201cat the end of the reporting period\u201d should affect the classification of a liability;
\u2022\tClarify that classification is unaffected by expectations about whether an entity will exercise its right to defer settlement of a liability; and make clear that settlement refers to the transfer to the counterparty of cash, equity instruments, other assets or services.
\u2022\tClarify how conditions with which an entity must comply within 12 months after the reporting period, such as covenants, affect the corresponding liability\u2019s classification.
Amendments to IAS 7 \u2018Statement of Cash Flows\u2019 and IFRS 7 \u2018Financial Instruments: Disclosures\u2019: Supplier Finance Arrangements.
The amendment describes the characteristics for which reporters will have to provide additional disclosures regarding the impact of supplier finance arrangements on liabilities, cash flows and exposure to liquidity risk.
As a result of the adoption of the amendments to IAS 7 and IFRS 7, the Group provided new disclosures for liabilities under supplier finance arrangements in note 27.
Amendments to IFRS 16 \u2018Leases\u2019: Lease Liability in a Sale and Leaseback.The amendments explain how an entity accounts for a sale and leaseback after the date of the transaction, specifically where some or all the lease payments are variable lease payments that do not depend on an index or rate. They state that, in subsequently measuring the lease liability, the seller-lessee determines \u2018lease payments\u2019 and \u2018revised lease payments\u2019 in a way that does not result in the seller-lessee recognising any amount of the gain or loss that relates to the right of use it retains. Any gains and losses relating to the full or partial termination of a lease continue to be recognised when they occur as these relate to the right of use terminated and not the right of use retained.
", "dimensions": { "concept": "ifrs-full:DescriptionOfInitialApplicationOfStandardsOrInterpretations", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__153": { "value": "Standards and Interpretations effective for subsequent periodsCertain new accounting standards and amendments to accounting standards have been published that are not mandatory for 31 December 2024 reporting periods and have not been early adopted by the Group. The effect of the following amendments is currently assessed by management and they are not expected to have a material impact on Viohalco Consolidated Financial Statements in the current or future reporting periods.Amendments to IAS 21 \u2018The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability\u2019 (effective 1 January 2025). IAS 21 previously did not cover how to determine exchange rates in case there is long-term lack of exchangeability and the spot rate to be applied by the company is not observable. The narrow scope amendments add specific requirements on:\u2022\tDetermining when a currency is exchangeable into another and when it is not;\u2022\tDetermining the exchange rate to apply in case a currency is not exchangeable;\u2022\tAdditional disclosures to provide when a currency is not exchangeable.The amendments have been endorsed by the EU.Amendments to IFRS 9 and to IFRS 7: the Classification and Measurement of Financial Instruments (effective on 1 January 2026).On 30 May 2024, the IASB issued amendments to IFRS 9 and IFRS 7 to:\u2022\tClarify the date of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;\u2022\tClarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;\u2022\tAdd new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement environment, social and governance (ESG) targets); and\u2022\tUpdate the disclosures for equity instruments designated at fair value through other comprehensive income (FVOCI).The amendments have not yet been endorsed by the EU.Amendments to IFRS 9 and to IFRS 7: Contracts Referencing Nature-dependent Electricity Amendments to IFRS 9 and IFRS 7 (effective on 1 January 2026).On 18 December 2024, the IASB issued amendments to IFRS 9 and IFRS 7:\u2022\tclarify the application of the \u2018own-use\u2019 requirements;\u2022\tpermit hedge accounting if these contracts are used as hedging instruments; and\u2022\tnew disclosure requirements to enable investors to understand the effect of these contracts on a company\u2019s financial performance and cash flows.The amendments have not yet been endorsed by the EU.IFRS 18 Presentation and Disclosure in Financial Statements (effective on 1 January 2027).The IASB has issued IFRS 18, the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:\u2022\tthe structure of the statement of profit or loss;\u2022\trequired disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity\u2019s financial statements (that is, management-defined performance measures); and\u2022\tenhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.IFRS 18 will replace IAS 1; many of the other existing principles in IAS 1 are retained, with limited changes. IFRS 18 will not impact the recognition or measurement of items in the financial statements, but it might change what an entity reports as its \u2018operating profit or loss\u2019.IFRS 18 will apply for reporting periods beginning on or after 1 January 2027 and also applies to comparative information. The changes in presentation and disclosure required by IFRS 18 might require system and process changes.The new standard has not yet been endorsed by the EU.IFRS 19 Subsidiaries without Public Accountability: Disclosures (effective on 1 January 2027). The International Accounting Standard Board (IASB) has issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 \u2018Subsidiaries without Public Accountability: Disclosures\u2019 permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries\u2019 financial statements while maintaining the usefulness of the information for users of their financial statements.The new standard has not yet been endorsed by the EU.Annual improvements Volume 11 (effective 1 January 2026). Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:IFRS 1 First-time Adoption of International Financial Reporting Standards;IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;IFRS 9 Financial Instruments;IFRS 10 Consolidated Financial Statements; andIAS 7 Statement of Cash Flows.The amendments have not yet been endorsed by the EU.", "dimensions": { "concept": "ifrs-full:ExplanationOfNotAppliedNewStandardsOrInterpretations", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__154": { "value": "Operating segmentsA. Basis for the division into segments
For management purposes, Viohalco is split into seven major strategic reportable segments devided in two divisions, which operate in different industries:
Industrial Division
Aluminium segment;
Copper segment;
Cables segment;
Steel pipes segment;
Steel segment;
Other activities segment.
Real Estate Division
Real estate segment.
These segments offer different products and services, and are managed separately because they require different technology and marketing strategies.
Such structural organization is determined by the nature of risks and returns associated with each business segment. It is based on the management structure, as well as the internal reporting system. It represents the basis on which Viohalco reports its segmental information.
The segment analysis presented in these consolidated financial statements reflects operations analysed by the business. This is the way the chief operating decision maker of Viohalco regularly reviews its\u2019 operating results in order to allocate resources to segments and in assessing their performance.
For the purposes of segmental reporting, all Viohalco companies, except those operating as trading companies, have been assigned to a specific reportable segment.
Regarding the trading companies of Viohalco, their profit or loss and balance sheet figures have been allocated to the reportable segments, according to the nature of their transactions.
A brief description of the segments is as follows:
Aluminium:ElvalHalcor through its aluminium rolling division (Elval), its subsidiaries Symetal S.A., Elval Colour S.A. and Vepal S.A. along with Bridgnorth Aluminium and Etem Extrusions deliver a wide variety of products from aluminium coils and sheets for general applications and aluminium foil for household use, to special products, such as, rolled and extruded aluminium products for shipbuilding, automotive and construction industries, and lithographic coils.
Copper: ElvalHalcor through its copper tubes division (Halcor) and its subsidiary Sofia Med S.A. produce a wide range of copper and copper alloy products that span from copper and brass tubes, copper strips, sheets and plates, to copper bus bars and rods.
Cables:Hellenic Cables companies consist one of the largest cable producers in Europe, manufacturing power,
telecommunication and submarine cables, as well as enamelled wires and compounds.
Steel Pipes:Corinth Pipeworks engages in the production of steel pipes for the transportation of natural gas, oil and water networks, as well as steel hollow sections which are used in construction projects.
Steel: Sidenor Steel Industry, Stomana Industry and their subsidiaries manufacture long, flat and downstream steel products.
Real estate: Viohalco derives value from the real estate assets of its subsidiaries by developing and managing large-scale commercial and industrial properties.
Other:Other activities mainly encompass expenses incurred by the parent (holding) company, along with the results of companies which operate in the Technology, R&D and resource recovery segments. None of these activities met the quantitative thresholds for reportable segments in 2024 or 2023.
B. Information about reportable segments
The information disclosed in the tables below is derived directly from the internal financial reporting system used by the executive management (i.e.chief operating decision maker) to monitor and evaluate the performance of the operating segments separately.
The following tables illustrate the information about the reportable segments profit or loss, assets and liabilities as at 31 December 2024 and 2023.
Revenue and operating profit per segment for 2024 were as follows: | |||||||||
Industrial Division | |||||||||
Amounts in EUR thousands | Aluminium | Copper | Cables | Steel Pipes | Steel | Other activities | Total Industrial | Real Estate | Total Consolidated |
Total revenue per segment | 2,988,438 | 2,171,598 | 2,139,073 | 789,578 | 1,697,874 | 188,648 | 9,975,210 | 68,795 | 10,043,777 |
Inter-company revenue | -968,380 | -422,949 | -976,128 | -222,066 | -689,487 | -111,596 | -3,390,606 | -26,092 | -3,416,471 |
Revenue from external customers | 2,020,058 | 1,748,649 | 1,162,945 | 567,512 | 1,008,387 | 77,053 | 6,584,603 | 42,702 | 6,627,306 |
Gross profit | 178,646 | 156,870 | 198,150 | 100,614 | 54,092 | 18,341 | 706,713 | 25,432 | 732,145 |
Operating result (EBIT) | 102,248 | 94,406 | 165,171 | 81,234 | -8,271 | -5,595 | 429,193 | 16,645 | 445,839 |
Finance income | 2,735 | 1,586 | 807 | 434 | 2,233 | 4,348 | 12,143 | 5,914 | 18,057 |
Finance cost | -42,719 | -23,408 | -48,251 | -18,487 | -40,605 | -3,376 | -176,847 | -8,388 | -185,235 |
Share of profit/ loss (-) of equity-accounted investees, net of tax | 384 | -5,633 | - | 145 | 227 | - | -4,877 | -135 | -5,012 |
Profit/Loss (-) before income tax expense | 62,647 | 66,950 | 117,728 | 63,326 | -46,416 | -4,623 | 259,613 | 14,036 | 273,649 |
Income tax expense (-) | -8,828 | -7,844 | -24,997 | -15,116 | -883 | -1,489 | -59,156 | -3,675 | -62,832 |
Net Profit/Loss (-) | 53,820 | 59,107 | 92,730 | 48,210 | -47,299 | -6,112 | 200,456 | 10,361 | 210,817 |
Other information per segment for 2024 is as follows:\u00a0 | |||||||||
Industrial Division | |||||||||
Amounts in EUR thousand | Aluminium | Copper | Cables | Steel Pipes | Steel | Other activities | Total Industrial | Real Estate | Total Consolidated |
Equity accounted investees | 10,410 | 949 | - | 7,859 | 1,058 | 809 | 21,085 | 10,330 | 31,416 |
Other assets | 1,821,290 | 786,738 | 1,491,527 | 577,396 | 944,656 | 327,888 | 5,949,495 | 589,987 | 6,539,482 |
Segment assets | 1,831,700 | 787,687 | 1,491,527 | 585,255 | 945,714 | 328,697 | 5,970,580 | 600,317 | 6,570,897 |
Segment liabilities | 1,038,275 | 492,438 | 1,184,654 | 400,601 | 774,021 | 81,342 | 3,971,332 | 235,427 | 4,206,759 |
Capital expenditure* | 73,999 | 24,467 | 216,756 | 41,295 | 34,037 | 7,924 | 398,478 | 35,058 | 433,536 |
Depreciation and amortization | -59,279 | -17,355 | -24,733 | -10,434 | -26,930 | -4,621 | -143,352 | -6,622 | -149,973 |
Revenue and operating profit per segment for 2023 were as follows: | |||||||||
Industrial Division | |||||||||
Amounts in EUR thousands | Aluminium | Copper | Cables | Steel Pipes | Steel | Other activities | Total Industrial | Real Estate | Total Consolidated |
Total revenue per segment | 2,774,541 | 2,258,991 | 1,799,128 | 728,912 | 1,714,820 | 173,978 | 9,450,371 | 52,835 | 9,503,205 |
Inter-company revenue | -887,075 | -537,776 | -807,945 | -148,730 | -700,505 | -104,567 | -3,186,599 | -14,649 | -3,201,248 |
Revenue from external customers | 1,887,467 | 1,721,214 | 991,183 | 580,181 | 1,014,316 | 69,411 | 6,263,772 | 38,186 | 6,301,957 |
Gross profit | 124,747 | 128,841 | 159,034 | 72,762 | 56,601 | 17,514 | 559,499 | 19,368 | 578,867 |
Operating result (EBIT) | 35,358 | 71,947 | 120,062 | 53,781 | -4,797 | -4,224 | 272,127 | 18,277 | 290,404 |
Finance income | 2,107 | 1,909 | 663 | 336 | 436 | 1,600 | 7,050 | 2,048 | 9,098 |
Finance cost | -45,585 | -26,533 | -47,467 | -28,412 | -37,222 | -3,097 | -188,317 | -8,577 | -196,894 |
Share of profit/ loss (-) of equity-accounted investees, net of tax | 1,229 | -11,071 | - | -1,094 | 238 | - | -10,698 | -586 | -11,284 |
Profit/Loss (-) before income tax expense | -6,891 | 36,251 | 73,258 | 24,610 | -41,345 | -5,721 | 80,163 | 11,162 | 91,324 |
Income tax expense (-) | 3,133 | -3,005 | -16,934 | -5,932 | 2,375 | -1,385 | -21,748 | -3,061 | -24,809 |
Net Profit/Loss (-) | -3,758 | 33,246 | 56,324 | 18,679 | -38,969 | -7,106 | 58,415 | 8,101 | 66,516 |
Other information per segment for 2023 is as follows:\u00a0 | |||||||||
Industrial Division | |||||||||
Amounts in EUR thousands | Aluminium | Copper | Cables | Steel Pipes | Steel | Other activities | Total Industrial | Real Estate | Total Consolidated |
Equity accounted investees | 10,365 | 38 | - | 8,307 | 1,364 | 791 | 20,864 | 10,465 | 31,329 |
Other assets | 1,720,647 | 727,374 | 1,162,739 | 613,180 | 972,550 | 142,713 | 5,339,202 | 549,178 | 5,888,381 |
Segment assets | 1,731,011 | 727,412 | 1,162,739 | 621,486 | 973,914 | 143,504 | 5,360,067 | 559,643 | 5,919,710 |
Segment liabilities | 985,802 | 481,495 | 954,741 | 475,970 | 747,510 | 66,389 | 3,711,907 | 248,432 | 3,960,339 |
Capital expenditure* | 69,497 | 26,513 | 120,717 | 17,364 | 41,492 | 5,001 | 280,583 | 26,919 | 307,502 |
Depreciation and amortization | -60,691 | -19,623 | -20,493 | -9,835 | -27,339 | -3,873 | -141,852 | -6,375 | -148,227 |
C.\tGeographic information
Viohalco\u2019s segments are managed on a worldwide basis, but operate manufacturing facilities and sales offices are located primarily in Greece, Germany, United Kingdom, France, Bulgaria, Romania, Serbia, North Macedonia and U.S.A.
The geographic information below analyses the consolidated non-current assets by the Company\u2019s country of domicile and other countries. In presenting the geographic information, segment assets were based on the geographic location of the assets. In Europe, assets\u2019 information for Greece and Belgium is reported separately.
Property, plant and equipment | Balance at 31 December | |
Amounts in EUR thousands | 2024 | 2023 |
Belgium | 1,599 | 1,233 |
Greece | 2,090,876 | 1,862,677 |
Other | 564,080 | 512,087 |
Total | 2,656,555 | 2,375,998 |
\u00a0Intangible assets and goodwill | ||
Balance at 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 51,300 | 41,680 |
Other | 5,987 | 8,849 |
Total | 57,287 | 50,529 |
\u00a0Investment property | ||
Balance at 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 337,126 | 332,602 |
Other | 15,253 | 5,677 |
Total | 352,379 | 338,279 |
Right of use assets | ||
Balance at 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Belgium | 96 | 89 |
Greece | 35,825 | 31,353 |
Other | 7,981 | 9,180 |
Total | 43,901 | 40,623 |
A. Basis for the division into segments
For management purposes, Viohalco is split into seven major strategic reportable segments devided in two divisions, which operate in different industries:
Industrial Division
Aluminium segment;
Copper segment;
Cables segment;
Steel pipes segment;
Steel segment;
Other activities segment.
Real Estate Division
Real estate segment.
These segments offer different products and services, and are managed separately because they require different technology and marketing strategies.
Such structural organization is determined by the nature of risks and returns associated with each business segment. It is based on the management structure, as well as the internal reporting system. It represents the basis on which Viohalco reports its segmental information.
The segment analysis presented in these consolidated financial statements reflects operations analysed by the business. This is the way the chief operating decision maker of Viohalco regularly reviews its\u2019 operating results in order to allocate resources to segments and in assessing their performance.
For the purposes of segmental reporting, all Viohalco companies, except those operating as trading companies, have been assigned to a specific reportable segment.
Regarding the trading companies of Viohalco, their profit or loss and balance sheet figures have been allocated to the reportable segments, according to the nature of their transactions.
A brief description of the segments is as follows:
Aluminium:ElvalHalcor through its aluminium rolling division (Elval), its subsidiaries Symetal S.A., Elval Colour S.A. and Vepal S.A. along with Bridgnorth Aluminium and Etem Extrusions deliver a wide variety of products from aluminium coils and sheets for general applications and aluminium foil for household use, to special products, such as, rolled and extruded aluminium products for shipbuilding, automotive and construction industries, and lithographic coils.
Copper: ElvalHalcor through its copper tubes division (Halcor) and its subsidiary Sofia Med S.A. produce a wide range of copper and copper alloy products that span from copper and brass tubes, copper strips, sheets and plates, to copper bus bars and rods.
Cables:Hellenic Cables companies consist one of the largest cable producers in Europe, manufacturing power,
telecommunication and submarine cables, as well as enamelled wires and compounds.
Steel Pipes:Corinth Pipeworks engages in the production of steel pipes for the transportation of natural gas, oil and water networks, as well as steel hollow sections which are used in construction projects.
Steel: Sidenor Steel Industry, Stomana Industry and their subsidiaries manufacture long, flat and downstream steel products.
Real estate: Viohalco derives value from the real estate assets of its subsidiaries by developing and managing large-scale commercial and industrial properties.
Other:Other activities mainly encompass expenses incurred by the parent (holding) company, along with the results of companies which operate in the Technology, R&D and resource recovery segments. None of these activities met the quantitative thresholds for reportable segments in 2024 or 2023.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__156": { "value": "7. Revenue
Revenue is derived from contracts with customers and investment property rental income.
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Rental income from investment property | 29,702 | 25,558 |
Revenue from contracts with customers | 6,597,603 | 6,276,399 |
Total | 6,627,306 | 6,301,957 |
A. Disaggregation of revenue from contracts with customers
In the following table, revenue from contracts with customers is disaggregated by primary geographical market and timing of revenue recognition. The table includes a reconciliation with the Viohalco\u2019s reportable segments (see Note 6).
for the year ended 31 December 2024 | |||||||||
Amounts in EUR thousand | Aluminium | Copper | Cables | Steel Pipes | Steel | Other Activities | Total Industrial | Real Estate | Total Consolidated |
Primary geographical markets\u00a0\u00a0 | |||||||||
Greece | 100,486 | 89,197 | 310,521 | 36,330 | 363,361 | 26,089 | 925,985 | 13,016 | 939,001 |
European Union | 1,261,048 | 1,203,553 | 581,092 | 118,936 | 484,915 | 23,335 | 3,672,879 | - | 3,672,879 |
Other European countries | 337,431 | 257,555 | 111,425 | 50,926 | 118,853 | 2,360 | 878,549 | - | 878,549 |
Asia | 49,686 | 39,570 | 116,464 | 272,810 | 41,258 | 23,974 | 543,761 | - | 543,761 |
America | 253,915 | 119,229 | 39,225 | 42,316 | - | 406 | 455,091 | - | 455,091 |
Africa | 16,890 | 35,080 | 4,218 | 13,747 | - | 125 | 70,059 | - | 70,059 |
Oceania | 586 | 4,465 | - | 32,447 | - | 764 | 38,263 | - | 38,263 |
Total | 2,020,042 | 1,748,649 | 1,162,945 | 567,512 | 1,008,387 | 77,053 | 6,584,587 | 13,016 | 6,597,603 |
Timing of revenue recognition | |||||||||
Revenue recognised at a point in time | 2,019,377 | 1,744,472 | 591,165 | 34,637 | 992,378 | 50,455 | 5,432,483 | 3,769 | 5,436,251 |
Products transferred over time | - | - | 571,767 | 532,867 | - | - | 1,104,635 | - | 1,104,635 |
Services transferred over time | 665 | 4,177 | 13 | 8 | 16,009 | 26,598 | 47,470 | 9,248 | 56,717 |
Total | 2,020,042 | 1,748,649 | 1,162,945 | 567,512 | 1,008,387 | 77,053 | 6,584,587 | 13,016 | 6,597,603 |
for the year ended 31 December 2023 | |||||||||
Amounts in EUR thousand | Aluminium | Copper | Cables | Steel Pipes | Steel | Other Activities | Total Industrial | Real Estate | Total Consolidated |
Primary geographical markets | |||||||||
Greece | 112,720 | 83,250 | 369,410 | 83,650 | 329,017 | 23,259 | 1,001,306 | 12,643 | 1,013,950 |
European Union | 1,180,680 | 1,194,730 | 333,193 | 129,153 | 541,269 | 17,098 | 3,396,123 | - | 3,396,123 |
Other European countries | 304,717 | 250,506 | 120,457 | 101,253 | 141,495 | 2,005 | 920,433 | - | 920,433 |
Asia | 54,511 | 76,383 | 117,054 | 33,151 | 500 | 26,974 | 308,571 | - | 308,571 |
America | 216,363 | 69,553 | 44,218 | 152,644 | 180 | 65 | 483,023 | - | 483,023 |
Africa | 17,727 | 41,968 | 6,852 | 1,656 | 1,856 | 9 | 70,068 | - | 70,068 |
Oceania | 732 | 4,826 | - | 78,675 | - | - | 84,233 | - | 84,233 |
Total | 1,887,450 | 1,721,214 | 991,183 | 580,181 | 1,014,316 | 69,411 | 6,263,755 | 12,643 | 6,276,399 |
Timing of revenue recognition | |||||||||
Revenue recognised at a point in time | 1,668,745 | 1,717,333 | 626,460 | 47,967 | 999,927 | 47,389 | 5,107,822 | 4,199 | 5,112,021 |
Products transferred over time | 217,298 | - | 364,673 | 532,214 | - | - | 1,114,185 | - | 1,114,185 |
Services transferred over time | 1,407 | 3,881 | 50 | - | 14,389 | 22,022 | 41,748 | 8,444 | 50,193 |
Total | 1,887,450 | 1,721,214 | 991,183 | 580,181 | 1,014,316 | 69,411 | 6,263,755 | 12,643 | 6,276,399 |
Viohalco\u2019s consolidated revenue for 2024 amounted to EUR 6,627 million, increased by 5% compared to previous year (2023: 6,302 million).
Revenue expected to be recognised in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the reporting date amounts to EUR 1,661 million. An amount of EUR 899 million is expected to be recognised during 2025, EUR 601 million is expected to be recognised during 2026 and the remaing EUR 161 million is expected to be recognised during the periods from 2027 and onwards based on the time schedules included in the open contracts on 31 December 2024, which have original expected durations of more than one year and revenue recognition started during 2024 or prior periods.
B. Contract balances
Contract assets primarily relate to the rights to consideration for work completed but not billed at the reporting date on customized products or energy projects. Contract assets are transferred to receivables when the rights become unconditional. This usually occurs when Viohalco companies issue an invoice to the customer (unless the invoice is issued in advance).
Contract liabilities primarily relate to the advance consideration received from customers for construction of customized products or energy projects for which revenue is recognized over time.
Contract assets mainly relate to cables and steel pipes segments, where amounts are billed as work progresses in accordance with agreed-upon contractual terms, either upon achievement of contractual milestones, or at the final delivery and acceptance of the products.
The following table provides information about contract assets and contract liabilities.
As at | ||
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Contract assets | 256,322 | 236,552 |
Contract liabilities | -226,488 | -281,387 |
Total | 29,834 | -44,835 |
The movement in the contract assets and the contract liabilities balances during the period is described in the following table:
Amounts in EUR thousands | Contract assets | Contract liabilities |
Balance at 1 January 2024 | 236,552 | 281,387 |
Increases as a result of changes in measure of progress | 241,950 | - |
Revenue recognised relating to downpayments and deferred income balances as at the beginning of the period | - | -249,948 |
Transfers from contract assets recognised at the beginning of the period to receivables | -219,239 | - |
New downpayments and deferred income outstanding at year end | - | 200,850 |
Reversal of impairment allowance | 38 | - |
Write-offs | -3,962 | - |
Reclassifications | - | 32 |
Other movements | - | -350 |
Cash returned to customer | - | -3,367 |
Amount recognized in Other income | - | -4,295 |
Foreign exchange differences | 983 | 2,180 |
Balance as at 31 December 2024 | 256,322 | 226,488 |
Amounts in EUR thousands | Contract assets | Contract liabilities |
Balance at 1 January 2023 | 199,839 | 133,837 |
Increases due to unbilled receivables and changes in measure of progress | 230,987 | - |
Revenue recognised relating to downpayments and deferred income balances as at the beginning of the period | - | -152,523 |
Transfers from contract assets recognised at the beginning of the period to receivables | -193,160 | - |
New downpayments and deferred income outstanding at year end | - | 302,364 |
Impairment allowance | -68 | - |
Reversal of impairment allowance | 23 | - |
Write-offs | -250 | - |
Reclassifications | 579 | - |
Foreign exchange differences | -1,398 | -2,290 |
Balance as at 31 December 2023 | 236,552 | 281,387 |
Contract assets increased by EUR 20 million compared previous year. Such increase is attributed mainly to cables segment (EUR 14.9 million increase) due to the growth in project-related activities and the timing of invoicing of specific ongoing projects.
Contract liabilities, primarily, relate to the advance consideration received from customers. Contract liabilities, which are expected to be settled within more than one year are classified as non-current liabilities (EUR 5 million as of 31 December 2024). Contract liabilities decreased by EUR 55 million compared to 31 December 2023, mainly due to the execution of certain projects in steel pipes segment for which downpayments were received by customers close to prior year\u2019s end (EUR 81.3 million
decrease). On the other hand, the increasing backlog of cables segment led to an increase in segment\u2019s contract liabilities by EUR 21.9 million.
C. Contract costs
Viohalco companies\u2019 recognized contracts costs, expect that fees, commissions and other costs associated with obtaining contracts for energy projects are recoverable.
Therefore, as at 31 December 2024, Viohalco has recorded as contract costs an amount of EUR 510 thousand, out of which an amount of EUR 222 thousand is classified as non-current assets. During the year, amortization of contract costs amounted EUR 157 thousand.
D. Significant judgements in revenue recognition
In recognizing revenue, Viohalco companies make judgements regarding the timing of satisfaction of performance obligations, the identification of distinct performance obligations, as well as the transaction price and the amounts allocated to performance obligations.
The most significant of these estimates are described below:
- Contracts including multiple performance obligations are mainly identified in cables segment for turnkey projects and for customized products in cables, steel pipes and aluminium segments, as described in Note 5.3. In such cases, the total transaction price is allocated to these performance obligations on the basis of the relative standalone selling prices of the promised goods and services. If these goods and services are not sold separately, a cost plus margin approach is used to estimate the standalone selling price.
- Some contracts with customers involve a variable transaction cost as they include a volume or trade discount based on the total sales to the customer within a time period. In such case revenue is recognized based on the anticipated sales to the customer throughout the year, as these sales are realized and new orders are received and up to an extent it is highly probable that a significant reversal of cumulative revenue recognized will not be needed.
- A significant portion of contracts with customers, include transportation service. Transportation is considered as a separate performance obligation, if the customer can benefit from the offered transportation service and the promise to transport the goods to the customer is separately identifiable from the production of these customized products. Revenue for orders of standardized products is recognized at a specific point in time and transportation is not considered a separate performance obligation.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__157": { "value": "7. Revenue
Revenue is derived from contracts with customers and investment property rental income.
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Rental income from investment property | 29,702 | 25,558 |
Revenue from contracts with customers | 6,597,603 | 6,276,399 |
Total | 6,627,306 | 6,301,957 |
A. Disaggregation of revenue from contracts with customers
In the following table, revenue from contracts with customers is disaggregated by primary geographical market and timing of revenue recognition. The table includes a reconciliation with the Viohalco\u2019s reportable segments (see Note 6).
for the year ended 31 December 2024 | |||||||||
Amounts in EUR thousand | Aluminium | Copper | Cables | Steel Pipes | Steel | Other Activities | Total Industrial | Real Estate | Total Consolidated |
Primary geographical markets\u00a0\u00a0 | |||||||||
Greece | 100,486 | 89,197 | 310,521 | 36,330 | 363,361 | 26,089 | 925,985 | 13,016 | 939,001 |
European Union | 1,261,048 | 1,203,553 | 581,092 | 118,936 | 484,915 | 23,335 | 3,672,879 | - | 3,672,879 |
Other European countries | 337,431 | 257,555 | 111,425 | 50,926 | 118,853 | 2,360 | 878,549 | - | 878,549 |
Asia | 49,686 | 39,570 | 116,464 | 272,810 | 41,258 | 23,974 | 543,761 | - | 543,761 |
America | 253,915 | 119,229 | 39,225 | 42,316 | - | 406 | 455,091 | - | 455,091 |
Africa | 16,890 | 35,080 | 4,218 | 13,747 | - | 125 | 70,059 | - | 70,059 |
Oceania | 586 | 4,465 | - | 32,447 | - | 764 | 38,263 | - | 38,263 |
Total | 2,020,042 | 1,748,649 | 1,162,945 | 567,512 | 1,008,387 | 77,053 | 6,584,587 | 13,016 | 6,597,603 |
Timing of revenue recognition | |||||||||
Revenue recognised at a point in time | 2,019,377 | 1,744,472 | 591,165 | 34,637 | 992,378 | 50,455 | 5,432,483 | 3,769 | 5,436,251 |
Products transferred over time | - | - | 571,767 | 532,867 | - | - | 1,104,635 | - | 1,104,635 |
Services transferred over time | 665 | 4,177 | 13 | 8 | 16,009 | 26,598 | 47,470 | 9,248 | 56,717 |
Total | 2,020,042 | 1,748,649 | 1,162,945 | 567,512 | 1,008,387 | 77,053 | 6,584,587 | 13,016 | 6,597,603 |
for the year ended 31 December 2023 | |||||||||
Amounts in EUR thousand | Aluminium | Copper | Cables | Steel Pipes | Steel | Other Activities | Total Industrial | Real Estate | Total Consolidated |
Primary geographical markets | |||||||||
Greece | 112,720 | 83,250 | 369,410 | 83,650 | 329,017 | 23,259 | 1,001,306 | 12,643 | 1,013,950 |
European Union | 1,180,680 | 1,194,730 | 333,193 | 129,153 | 541,269 | 17,098 | 3,396,123 | - | 3,396,123 |
Other European countries | 304,717 | 250,506 | 120,457 | 101,253 | 141,495 | 2,005 | 920,433 | - | 920,433 |
Asia | 54,511 | 76,383 | 117,054 | 33,151 | 500 | 26,974 | 308,571 | - | 308,571 |
America | 216,363 | 69,553 | 44,218 | 152,644 | 180 | 65 | 483,023 | - | 483,023 |
Africa | 17,727 | 41,968 | 6,852 | 1,656 | 1,856 | 9 | 70,068 | - | 70,068 |
Oceania | 732 | 4,826 | - | 78,675 | - | - | 84,233 | - | 84,233 |
Total | 1,887,450 | 1,721,214 | 991,183 | 580,181 | 1,014,316 | 69,411 | 6,263,755 | 12,643 | 6,276,399 |
Timing of revenue recognition | |||||||||
Revenue recognised at a point in time | 1,668,745 | 1,717,333 | 626,460 | 47,967 | 999,927 | 47,389 | 5,107,822 | 4,199 | 5,112,021 |
Products transferred over time | 217,298 | - | 364,673 | 532,214 | - | - | 1,114,185 | - | 1,114,185 |
Services transferred over time | 1,407 | 3,881 | 50 | - | 14,389 | 22,022 | 41,748 | 8,444 | 50,193 |
Total | 1,887,450 | 1,721,214 | 991,183 | 580,181 | 1,014,316 | 69,411 | 6,263,755 | 12,643 | 6,276,399 |
Viohalco\u2019s consolidated revenue for 2024 amounted to EUR 6,627 million, increased by 5% compared to previous year (2023: 6,302 million).
Revenue expected to be recognised in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the reporting date amounts to EUR 1,661 million. An amount of EUR 899 million is expected to be recognised during 2025, EUR 601 million is expected to be recognised during 2026 and the remaing EUR 161 million is expected to be recognised during the periods from 2027 and onwards based on the time schedules included in the open contracts on 31 December 2024, which have original expected durations of more than one year and revenue recognition started during 2024 or prior periods.
B. Contract balances
Contract assets primarily relate to the rights to consideration for work completed but not billed at the reporting date on customized products or energy projects. Contract assets are transferred to receivables when the rights become unconditional. This usually occurs when Viohalco companies issue an invoice to the customer (unless the invoice is issued in advance).
Contract liabilities primarily relate to the advance consideration received from customers for construction of customized products or energy projects for which revenue is recognized over time.
Contract assets mainly relate to cables and steel pipes segments, where amounts are billed as work progresses in accordance with agreed-upon contractual terms, either upon achievement of contractual milestones, or at the final delivery and acceptance of the products.
The following table provides information about contract assets and contract liabilities.
As at | ||
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Contract assets | 256,322 | 236,552 |
Contract liabilities | -226,488 | -281,387 |
Total | 29,834 | -44,835 |
The movement in the contract assets and the contract liabilities balances during the period is described in the following table:
Amounts in EUR thousands | Contract assets | Contract liabilities |
Balance at 1 January 2024 | 236,552 | 281,387 |
Increases as a result of changes in measure of progress | 241,950 | - |
Revenue recognised relating to downpayments and deferred income balances as at the beginning of the period | - | -249,948 |
Transfers from contract assets recognised at the beginning of the period to receivables | -219,239 | - |
New downpayments and deferred income outstanding at year end | - | 200,850 |
Reversal of impairment allowance | 38 | - |
Write-offs | -3,962 | - |
Reclassifications | - | 32 |
Other movements | - | -350 |
Cash returned to customer | - | -3,367 |
Amount recognized in Other income | - | -4,295 |
Foreign exchange differences | 983 | 2,180 |
Balance as at 31 December 2024 | 256,322 | 226,488 |
Amounts in EUR thousands | Contract assets | Contract liabilities |
Balance at 1 January 2023 | 199,839 | 133,837 |
Increases due to unbilled receivables and changes in measure of progress | 230,987 | - |
Revenue recognised relating to downpayments and deferred income balances as at the beginning of the period | - | -152,523 |
Transfers from contract assets recognised at the beginning of the period to receivables | -193,160 | - |
New downpayments and deferred income outstanding at year end | - | 302,364 |
Impairment allowance | -68 | - |
Reversal of impairment allowance | 23 | - |
Write-offs | -250 | - |
Reclassifications | 579 | - |
Foreign exchange differences | -1,398 | -2,290 |
Balance as at 31 December 2023 | 236,552 | 281,387 |
Contract assets increased by EUR 20 million compared previous year. Such increase is attributed mainly to cables segment (EUR 14.9 million increase) due to the growth in project-related activities and the timing of invoicing of specific ongoing projects.
Contract liabilities, primarily, relate to the advance consideration received from customers. Contract liabilities, which are expected to be settled within more than one year are classified as non-current liabilities (EUR 5 million as of 31 December 2024). Contract liabilities decreased by EUR 55 million compared to 31 December 2023, mainly due to the execution of certain projects in steel pipes segment for which downpayments were received by customers close to prior year\u2019s end (EUR 81.3 million
decrease). On the other hand, the increasing backlog of cables segment led to an increase in segment\u2019s contract liabilities by EUR 21.9 million.
C. Contract costs
Viohalco companies\u2019 recognized contracts costs, expect that fees, commissions and other costs associated with obtaining contracts for energy projects are recoverable.
Therefore, as at 31 December 2024, Viohalco has recorded as contract costs an amount of EUR 510 thousand, out of which an amount of EUR 222 thousand is classified as non-current assets. During the year, amortization of contract costs amounted EUR 157 thousand.
D. Significant judgements in revenue recognition
In recognizing revenue, Viohalco companies make judgements regarding the timing of satisfaction of performance obligations, the identification of distinct performance obligations, as well as the transaction price and the amounts allocated to performance obligations.
The most significant of these estimates are described below:
- Contracts including multiple performance obligations are mainly identified in cables segment for turnkey projects and for customized products in cables, steel pipes and aluminium segments, as described in Note 5.3. In such cases, the total transaction price is allocated to these performance obligations on the basis of the relative standalone selling prices of the promised goods and services. If these goods and services are not sold separately, a cost plus margin approach is used to estimate the standalone selling price.
- Some contracts with customers involve a variable transaction cost as they include a volume or trade discount based on the total sales to the customer within a time period. In such case revenue is recognized based on the anticipated sales to the customer throughout the year, as these sales are realized and new orders are received and up to an extent it is highly probable that a significant reversal of cumulative revenue recognized will not be needed.
- A significant portion of contracts with customers, include transportation service. Transportation is considered as a separate performance obligation, if the customer can benefit from the offered transportation service and the promise to transport the goods to the customer is separately identifiable from the production of these customized products. Revenue for orders of standardized products is recognized at a specific point in time and transportation is not considered a separate performance obligation.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRevenueFromContractsWithCustomersExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__158-1": { "value": "7. Revenue
Revenue is derived from contracts with customers and investment property rental income.
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Rental income from investment property | 29,702 | 25,558 |
Revenue from contracts with customers | 6,597,603 | 6,276,399 |
Total | 6,627,306 | 6,301,957 |
A. Disaggregation of revenue from contracts with customers
In the following table, revenue from contracts with customers is disaggregated by primary geographical market and timing of revenue recognition. The table includes a reconciliation with the Viohalco\u2019s reportable segments (see Note 6).
for the year ended 31 December 2024 | |||||||||
Amounts in EUR thousand | Aluminium | Copper | Cables | Steel Pipes | Steel | Other Activities | Total Industrial | Real Estate | Total Consolidated |
Primary geographical markets\u00a0\u00a0 | |||||||||
Greece | 100,486 | 89,197 | 310,521 | 36,330 | 363,361 | 26,089 | 925,985 | 13,016 | 939,001 |
European Union | 1,261,048 | 1,203,553 | 581,092 | 118,936 | 484,915 | 23,335 | 3,672,879 | - | 3,672,879 |
Other European countries | 337,431 | 257,555 | 111,425 | 50,926 | 118,853 | 2,360 | 878,549 | - | 878,549 |
Asia | 49,686 | 39,570 | 116,464 | 272,810 | 41,258 | 23,974 | 543,761 | - | 543,761 |
America | 253,915 | 119,229 | 39,225 | 42,316 | - | 406 | 455,091 | - | 455,091 |
Africa | 16,890 | 35,080 | 4,218 | 13,747 | - | 125 | 70,059 | - | 70,059 |
Oceania | 586 | 4,465 | - | 32,447 | - | 764 | 38,263 | - | 38,263 |
Total | 2,020,042 | 1,748,649 | 1,162,945 | 567,512 | 1,008,387 | 77,053 | 6,584,587 | 13,016 | 6,597,603 |
Timing of revenue recognition | |||||||||
Revenue recognised at a point in time | 2,019,377 | 1,744,472 | 591,165 | 34,637 | 992,378 | 50,455 | 5,432,483 | 3,769 | 5,436,251 |
Products transferred over time | - | - | 571,767 | 532,867 | - | - | 1,104,635 | - | 1,104,635 |
Services transferred over time | 665 | 4,177 | 13 | 8 | 16,009 | 26,598 | 47,470 | 9,248 | 56,717 |
Total | 2,020,042 | 1,748,649 | 1,162,945 | 567,512 | 1,008,387 | 77,053 | 6,584,587 | 13,016 | 6,597,603 |
for the year ended 31 December 2023 | |||||||||
Amounts in EUR thousand | Aluminium | Copper | Cables | Steel Pipes | Steel | Other Activities | Total Industrial | Real Estate | Total Consolidated |
Primary geographical markets | |||||||||
Greece | 112,720 | 83,250 | 369,410 | 83,650 | 329,017 | 23,259 | 1,001,306 | 12,643 | 1,013,950 |
European Union | 1,180,680 | 1,194,730 | 333,193 | 129,153 | 541,269 | 17,098 | 3,396,123 | - | 3,396,123 |
Other European countries | 304,717 | 250,506 | 120,457 | 101,253 | 141,495 | 2,005 | 920,433 | - | 920,433 |
Asia | 54,511 | 76,383 | 117,054 | 33,151 | 500 | 26,974 | 308,571 | - | 308,571 |
America | 216,363 | 69,553 | 44,218 | 152,644 | 180 | 65 | 483,023 | - | 483,023 |
Africa | 17,727 | 41,968 | 6,852 | 1,656 | 1,856 | 9 | 70,068 | - | 70,068 |
Oceania | 732 | 4,826 | - | 78,675 | - | - | 84,233 | - | 84,233 |
Total | 1,887,450 | 1,721,214 | 991,183 | 580,181 | 1,014,316 | 69,411 | 6,263,755 | 12,643 | 6,276,399 |
Timing of revenue recognition | |||||||||
Revenue recognised at a point in time | 1,668,745 | 1,717,333 | 626,460 | 47,967 | 999,927 | 47,389 | 5,107,822 | 4,199 | 5,112,021 |
Products transferred over time | 217,298 | - | 364,673 | 532,214 | - | - | 1,114,185 | - | 1,114,185 |
Services transferred over time | 1,407 | 3,881 | 50 | - | 14,389 | 22,022 | 41,748 | 8,444 | 50,193 |
Total | 1,887,450 | 1,721,214 | 991,183 | 580,181 | 1,014,316 | 69,411 | 6,263,755 | 12,643 | 6,276,399 |
Viohalco\u2019s consolidated revenue for 2024 amounted to EUR 6,627 million, increased by 5% compared to previous year (2023: 6,302 million).
Revenue expected to be recognised in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the reporting date amounts to EUR 1,661 million. An amount of EUR 899 million is expected to be recognised during 2025, EUR 601 million is expected to be recognised during 2026 and the remaing EUR 161 million is expected to be recognised during the periods from 2027 and onwards based on the time schedules included in the open contracts on 31 December 2024, which have original expected durations of more than one year and revenue recognition started during 2024 or prior periods.
B. Contract balances
Contract assets primarily relate to the rights to consideration for work completed but not billed at the reporting date on customized products or energy projects. Contract assets are transferred to receivables when the rights become unconditional. This usually occurs when Viohalco companies issue an invoice to the customer (unless the invoice is issued in advance).
Contract liabilities primarily relate to the advance consideration received from customers for construction of customized products or energy projects for which revenue is recognized over time.
Contract assets mainly relate to cables and steel pipes segments, where amounts are billed as work progresses in accordance with agreed-upon contractual terms, either upon achievement of contractual milestones, or at the final delivery and acceptance of the products.
The following table provides information about contract assets and contract liabilities.
As at | ||
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Contract assets | 256,322 | 236,552 |
Contract liabilities | -226,488 | -281,387 |
Total | 29,834 | -44,835 |
The movement in the contract assets and the contract liabilities balances during the period is described in the following table:
Amounts in EUR thousands | Contract assets | Contract liabilities |
Balance at 1 January 2024 | 236,552 | 281,387 |
Increases as a result of changes in measure of progress | 241,950 | - |
Revenue recognised relating to downpayments and deferred income balances as at the beginning of the period | - | -249,948 |
Transfers from contract assets recognised at the beginning of the period to receivables | -219,239 | - |
New downpayments and deferred income outstanding at year end | - | 200,850 |
Reversal of impairment allowance | 38 | - |
Write-offs | -3,962 | - |
Reclassifications | - | 32 |
Other movements | - | -350 |
Cash returned to customer | - | -3,367 |
Amount recognized in Other income | - | -4,295 |
Foreign exchange differences | 983 | 2,180 |
Balance as at 31 December 2024 | 256,322 | 226,488 |
Amounts in EUR thousands | Contract assets | Contract liabilities |
Balance at 1 January 2023 | 199,839 | 133,837 |
Increases due to unbilled receivables and changes in measure of progress | 230,987 | - |
Revenue recognised relating to downpayments and deferred income balances as at the beginning of the period | - | -152,523 |
Transfers from contract assets recognised at the beginning of the period to receivables | -193,160 | - |
New downpayments and deferred income outstanding at year end | - | 302,364 |
Impairment allowance | -68 | - |
Reversal of impairment allowance | 23 | - |
Write-offs | -250 | - |
Reclassifications | 579 | - |
Foreign exchange differences | -1,398 | -2,290 |
Balance as at 31 December 2023 | 236,552 | 281,387 |
Contract assets increased by EUR 20 million compared previous year. Such increase is attributed mainly to cables segment (EUR 14.9 million increase) due to the growth in project-related activities and the timing of invoicing of specific ongoing projects.
Contract liabilities, primarily, relate to the advance consideration received from customers. Contract liabilities, which are expected to be settled within more than one year are classified as non-current liabilities (EUR 5 million as of 31 December 2024). Contract liabilities decreased by EUR 55 million compared to 31 December 2023, mainly due to the execution of certain projects in steel pipes segment for which downpayments were received by customers close to prior year\u2019s end (EUR 81.3 million
decrease). On the other hand, the increasing backlog of cables segment led to an increase in segment\u2019s contract liabilities by EUR 21.9 million.
C. Contract costs
Viohalco companies\u2019 recognized contracts costs, expect that fees, commissions and other costs associated with obtaining contracts for energy projects are recoverable.
Therefore, as at 31 December 2024, Viohalco has recorded as contract costs an amount of EUR 510 thousand, out of which an amount of EUR 222 thousand is classified as non-current assets. During the year, amortization of contract costs amounted EUR 157 thousand.
D. Significant judgements in revenue recognition
In recognizing revenue, Viohalco companies make judgements regarding the timing of satisfaction of performance obligations, the identification of distinct performance obligations, as well as the transaction price and the amounts allocated to performance obligations.
The most significant of these estimates are described below:
- Contracts including multiple performance obligations are mainly identified in cables segment for turnkey projects and for customized products in cables, steel pipes and aluminium segments, as described in Note 5.3. In such cases, the total transaction price is allocated to these performance obligations on the basis of the relative standalone selling prices of the promised goods and services. If these goods and services are not sold separately, a cost plus margin approach is used to estimate the standalone selling price.
- Some contracts with customers involve a variable transaction cost as they include a volume or trade discount based on the total sales to the customer within a time period. In such case revenue is recognized based on the anticipated sales to the customer throughout the year, as these sales are realized and new orders are received and up to an extent it is highly probable that a significant reversal of cumulative revenue recognized will not be needed.
- A significant portion of contracts with customers, include transportation service. Transportation is considered as a separate performance obligation, if the customer can benefit from the offered transportation service and the promise to transport the goods to the customer is separately identifiable from the production of these customized products. Revenue for orders of standardized products is recognized at a specific point in time and transportation is not considered a separate performance obligation.
8. Other income and expenses
A. Other Income | |||
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Government grants/subsidies | 2,661 | 2,632 | |
Amortization of grants received | 28 | 2,681 | 2,598 |
Rental income | 1,397 | 1,179 | |
Income from fees, commissions and costs recharged | 3,360 | 1,293 | |
Damage Compensation | 5,312 | 4,190 | |
Gain on sale of PP&E and intangible assets | 370 | 1,707 | |
Gain on sale of investment property | 27 | 624 | |
Gain from valuation of financial instruments | 7,462 | 322 | |
Reversal of provisions | - | 25 | |
Reversal of impairment loss of PP&E and investment property | 12,289 | 20,289 | |
Gain from disposal of subsidiaries | 230 | 4,490 | |
Gains from business combinations | 168 | - | |
Other | 6,730 | 3,800 | |
Total other income | 42,686 | 43,149 |
B. Other Expenses | |||
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Impairment loss of PP&E and investment property | 10,628 | 16,444 | |
Write-off of PP&E and intangible assets | 2,030 | 4,506 | |
Impairment loss of associates/ Joint Ventures | 3,144 | 2,820 | |
Loss on sale of PP&E | 2 | 321 | |
Loss on sale of investment property | - | 26 | |
Loss from valuation of financial instruments | - | 3,588 | |
Damages incurred | 4,232 | 3,012 | |
Employee benefits | 12 | - | 3 |
Penalties | 637 | 2,561 | |
Depreciation and amortisation | - | 2,104 | |
Other | 4,097 | 2,400 | |
Total other expense | 24,769 | 37,786 | |
Net other income/ expense (-) | 17,917 | 5,364 |
Net Other income/expenses for the year ended 31 December 2024 amounted to a gain of EUR 17.9 million compared to a gain of EUR 5.4 million during 2023, mainly due to the following factors:
-\tDuring 2024, the challenging global economic conditions, dampened demand for NedZink B.V.\u2019s products, resulting in a downturn in its 2024 financial performance. As a consequence, an impairment loss of EUR 3.1 million was recognised in the participation to the company (Note 20).
-\tPursuant to a contract entered with a customer, an advance payment of EUR 4,295 thousand was received during 2023 and 2024. Such contract was terminated due to project not being implemented and as per the relevant contract provisions Viohalco\u2019s subsidiary was entitled to retain the said advance payment. Therefore, the relevant amount was recorded in the Consolidated Statement of Profit or Loss as \u2018Other income\u2019.
-\tDuring 2024, a reversal of impairment loss of EUR 1.7 million was recognized (2023: impairment loss of EUR 3.8 million) - on net basis - for own used property and investment property , due to changes in the fair value of real estate portfolio. Impairment loss and reversal of impairment loss are described in notes 17 and 19.
-\tDuring first half of 2023, the merger by absorption of the subsidiary of ElvalHalcor, Etem Commercial, from the joint-stock company Cosmos Aluminium SA was completed. As a result of this transaction, Viohalco recorded a gain of EUR 4.5 million at consolidated level. Based on the purchase agreement, the shareholders of ElvalHalcor granted Cosmos Aluminium with a put option to purchase the remaining outstanding capital stock of Cosmos Aluminium. In addition, Cosmos Aluminium granted ElvalHalcor with a put option to sale the remaining outstanding capital stock of Cosmos Aluminium. The exercise period for both options commenced in 2028 and their term is for six months. Upon the exercise of the aforementioned options, the shareholders of Cosmos Aluminium will own 100% of outstanding capital stock of Cosmos Aluminium. These expire in case that the shareholders do not exercise them during the exercise period. These options are recognized in the consolidated statement of financial position in their fair value and were included in the carrying amount of the investment in Cosmos Aluminium. The recognized gain for 2024 from their measurement in the fair value, amounted EUR 7.5 million, recorded into \u201cOther income\u201d.
C. Expenses by nature
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Cost of inventories recognized as an expense | 4,547,842 | 4,428,065 | |
Employee benefits | 12 | 517,112 | 473,925 |
Energy | 207,033 | 253,248 | |
Depreciation and amortisation | 149,973 | 146,123 | |
Amortization of contract costs | 157 | 74 | |
Taxes and duties | 20,465 | 13,813 | |
Insurance expenses | 39,441 | 44,065 | |
Rental fees | 8,226 | 8,731 | |
Transportation costs (goods and materials) | 167,220 | 196,682 | |
Promotion and advertising | 8,031 | 8,038 | |
Third party fees and benefits | 382,309 | 312,190 | |
Other provisions | - | 125 | |
Gains (-)/losses from derivatives | -6,699 | 793 | |
Storage and packing | 12,985 | 15,601 | |
Commissions | 14,715 | 13,750 | |
Foreign exchange gains(-)/losses | 5,237 | -3,820 | |
Maintenance expenses | 69,284 | 55,860 | |
Royalties | 4,873 | 2,655 | |
Consumption of production tools | 27,842 | 21,010 | |
Other expenses | 15,684 | 16,991 | |
Total | 6,191,730 | 6,007,920 |
The key drivers of variation of operating expenses during 2024 are the following:
-\tThe increase in sales volumes, affected cost of sales and related operating expenses (Cost of inventories recognized as an expense and materials and maintenance expenses) which have increased as well.\u00a0
-\tThe increase in \u201c\u03a4hird party fees and benefits\u201d is attributed mainly to project-specific services from subcontractors, particularly in the cables segment. Cables segment experienced a rise in installation services related to turnkey contracts executed by subsidiaries, leading to higher costs compared to 2023.
The aggregate amount of research and development expenditure recognized as an expense during 2024 amounts to EUR 23.2 million (2023: EUR 18.2 million).
12. Employee benefit expenses
Amounts in EUR thousands | Note | 2024 | 2023 |
Wages and salaries | 406,160 | 368,009 | |
Social security contributions | 74,343 | 67,416 | |
Defined contribution plans | 5,053 | 1,165 | |
Defined benefit plans | 11 | 6,534 | 7,639 |
Other employee benefits | 32,752 | 33,727 | |
Total | 524,842 | 477,956 |
Employee benefits have been allocated as follows: | |||
Cost of goods sold | 8 | 351,633 | 316,474 |
Selling and distribution expenses | 8 | 50,744 | 53,073 |
Administrative expenses | 8 | 114,735 | 104,378 |
Other expenses | 8 | - | 3 |
Capitalised employee benefits in projects under construction | 7,730 | 4,028 | |
Total | 524,842 | 477,956 |
The number of employees, as well as their profile and gender, employed by Viohalco companies is presented in the following tables:
2024 | ||||
\u00a0 | 18 - 30 | 30-50 | 51+ | Total |
Male | 1,076 | 5,369 | 3,119 | 9,564 |
Female | 274 | 1,118 | 498 | 1,890 |
Total | 1,350 | 6,487 | 3,617 | 11,454 |
Office employees & professionals | Workers | Management | Total | |
Number of Employees | 3,206 | 7,234 | 1,014 | 11,454 |
2023 | ||||
\u00a0 | 18 - 30 | 30-50 | 51+ | Total |
Male | 1,072 | 5,262 | 2,820 | 9,154 |
Female | 251 | 1,105 | 445 | 1,801 |
Total | 1,323 | 6,367 | 3,265 | 10,955 |
Office employees & professionals | Workers | Management | Total | |
Number of Employees | 2,902 | 7,045 | 1,008 | 10,955 |
C.1. Credit risk
Credit risk is the risk of the financial loss to Viohalco and its companies, if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the companies\u2019 receivables from customers, contract assets and bank deposits.
The carrying amount of financial assets represents the maximum credit exposure.
Amounts in EUR thousands | Note | 2024 | 2023 |
Trade & other receivables | 15 | 611,283 | 748,668 |
Contract assets | 7 | 256,322 | 236,552 |
Less: | |||
Other down payments | 15 | -10,964 | -12,058 |
Tax assets | 15 | -62,951 | -45,947 |
Other non-financial assets | -50,072 | -101,442 | |
743,619 | 825,773 | ||
Other investments | 21 | 38,966 | 33,686 |
Cash and cash equivalents | 16 | 696,720 | 395,015 |
Derivatives | 23 | 16,390 | 28,909 |
752,076 | 457,610 | ||
Total | 1,495,695 | 1,283,383 |
(a)\tTrade and other receivables
Viohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured.
When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.
Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables.
At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:
\u00a0 | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 294,046 | 301,265 |
Other EU member states | 254,604 | 255,645 |
Other European countries | 73,071 | 68,131 |
Asia | 37,798 | 42,842 |
America | 63,648 | 142,651 |
Africa | 19,897 | 14,290 |
Oceania | 554 | 949 |
Total | 743,619 | 825,773 |
The ageing of trade and other receivables and contract assets that were not impaired was as follows:
Amounts in EUR thousands | 2024 | 2023 |
Neither past due nor impaired | 630,207 | 706,092 |
Overdue | \u00a0 | |
- Up to 6 months | 94,339 | 100,175 |
- Over 6 months | 19,073 | 19,506 |
Total | 743,619 | 825,773 |
Based on management assessment,the amounts that are past due up to 6 months and over 6 months are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.
Viohalco companies insure a significant portion of their receivables and at 31 December 2024, 71% of the receivables balances were credit insured.
The movement in impairment of trade and other receivables and contract assets is as follows:
Amounts in EUR thousands | 2024 | 2023 | ||||
Trade & other receivables | Contract assets | Total | Trade & other receivables | Contract assets | Total | |
Balance as at 1 January | 71,009 | 248 | 71,256 | 69,212 | 203 | 69,414 |
Impairment loss recognized | 8,982 | - | 8,982 | 8,954 | 68 | 9,022 |
Amounts written off | -3,137 | - | -3,137 | -6,164 | - | -6,164 |
Impairment loss reversed | -1,290 | -38 | -1,327 | -214 | -23 | -237 |
Foreign exchange differences | 1,391 | - | 1,391 | -764 | -\u00a0 | -764 |
Reclassification | -28 | - | -28 | -16 | \u00a0- | -16 |
Balance as at 31 December | 76,928 | 210 | 77,137 | 71,009 | 248 | 71,256 |
The allowance for expected credit losses for trade receivables and contract assets are calculated at individual level when there is an indication of impairment. For receivables and contract assets without any indication of impairment the expected credit losses are based on the historical data combined with forward-looking macroeconomic factors affecting credit risk, such as country risk and industry related risks. Expected loss rates are updated at every reporting date. The rising inflation and interest rates were also taken into consideration when calculating expected credit losses for the current year, without any significant impact on the impairment loss recognized.
In 2024, the impairment loss recognized concerned mainly copper segment while amounts that have been impaired mainly in other segment were written off. On the contrary, a reversal of impairment loss was recorded, as a result of the improvement of the expected loss rates of major clients in the aluminium and cables segments.
The following collateral exists for securing non-insured receivables from customers and contract assets:
\u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amounts in EUR thousands | \u00a0 | 2024 | 2023 |
Cash collateral | 181 | 530 | |
Letter of credit | 17,179 | 18,302 | |
Collateral on property | 1,850 | 1,850 | |
Payables which can be offset by receivables | 6,292 | 5,832 | |
Other | 2,262 | 2,987 | |
Total | \u00a0 | 27,763 | 29,501 |
(b)\tCash and cash equivalents
Viohalco and its subsidiaries held cash and cash equivalents of EUR 697 million at 31 December 2024 (2023: EUR 395 million). The cash and cash equivalents are held with banks and financial institutions, which are rated from A3 to Ba3 based on Moody\u2019s scale.
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. Viohalco considers that its cash and cash equivalents have low credit risk based on the credit assessment performed.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__159": { "value": "B. Contract balances
Contract assets primarily relate to the rights to consideration for work completed but not billed at the reporting date on customized products or energy projects. Contract assets are transferred to receivables when the rights become unconditional. This usually occurs when Viohalco companies issue an invoice to the customer (unless the invoice is issued in advance).
Contract liabilities primarily relate to the advance consideration received from customers for construction of customized products or energy projects for which revenue is recognized over time.
Contract assets mainly relate to cables and steel pipes segments, where amounts are billed as work progresses in accordance with agreed-upon contractual terms, either upon achievement of contractual milestones, or at the final delivery and acceptance of the products.
The following table provides information about contract assets and contract liabilities.
As at | ||
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Contract assets | 256,322 | 236,552 |
Contract liabilities | -226,488 | -281,387 |
Total | 29,834 | -44,835 |
The movement in the contract assets and the contract liabilities balances during the period is described in the following table:
Amounts in EUR thousands | Contract assets | Contract liabilities |
Balance at 1 January 2024 | 236,552 | 281,387 |
Increases as a result of changes in measure of progress | 241,950 | - |
Revenue recognised relating to downpayments and deferred income balances as at the beginning of the period | - | -249,948 |
Transfers from contract assets recognised at the beginning of the period to receivables | -219,239 | - |
New downpayments and deferred income outstanding at year end | - | 200,850 |
Reversal of impairment allowance | 38 | - |
Write-offs | -3,962 | - |
Reclassifications | - | 32 |
Other movements | - | -350 |
Cash returned to customer | - | -3,367 |
Amount recognized in Other income | - | -4,295 |
Foreign exchange differences | 983 | 2,180 |
Balance as at 31 December 2024 | 256,322 | 226,488 |
Amounts in EUR thousands | Contract assets | Contract liabilities |
Balance at 1 January 2023 | 199,839 | 133,837 |
Increases due to unbilled receivables and changes in measure of progress | 230,987 | - |
Revenue recognised relating to downpayments and deferred income balances as at the beginning of the period | - | -152,523 |
Transfers from contract assets recognised at the beginning of the period to receivables | -193,160 | - |
New downpayments and deferred income outstanding at year end | - | 302,364 |
Impairment allowance | -68 | - |
Reversal of impairment allowance | 23 | - |
Write-offs | -250 | - |
Reclassifications | 579 | - |
Foreign exchange differences | -1,398 | -2,290 |
Balance as at 31 December 2023 | 236,552 | 281,387 |
Contract assets increased by EUR 20 million compared previous year. Such increase is attributed mainly to cables segment (EUR 14.9 million increase) due to the growth in project-related activities and the timing of invoicing of specific ongoing projects.
Contract liabilities, primarily, relate to the advance consideration received from customers. Contract liabilities, which are expected to be settled within more than one year are classified as non-current liabilities (EUR 5 million as of 31 December 2024). Contract liabilities decreased by EUR 55 million compared to 31 December 2023, mainly due to the execution of certain projects in steel pipes segment for which downpayments were received by customers close to prior year\u2019s end (EUR 81.3 million
decrease). On the other hand, the increasing backlog of cables segment led to an increase in segment\u2019s contract liabilities by EUR 21.9 million.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentContractsLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__163": { "value": "8. Other income and expenses
A. Other Income | |||
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Government grants/subsidies | 2,661 | 2,632 | |
Amortization of grants received | 28 | 2,681 | 2,598 |
Rental income | 1,397 | 1,179 | |
Income from fees, commissions and costs recharged | 3,360 | 1,293 | |
Damage Compensation | 5,312 | 4,190 | |
Gain on sale of PP&E and intangible assets | 370 | 1,707 | |
Gain on sale of investment property | 27 | 624 | |
Gain from valuation of financial instruments | 7,462 | 322 | |
Reversal of provisions | - | 25 | |
Reversal of impairment loss of PP&E and investment property | 12,289 | 20,289 | |
Gain from disposal of subsidiaries | 230 | 4,490 | |
Gains from business combinations | 168 | - | |
Other | 6,730 | 3,800 | |
Total other income | 42,686 | 43,149 |
B. Other Expenses | |||
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Impairment loss of PP&E and investment property | 10,628 | 16,444 | |
Write-off of PP&E and intangible assets | 2,030 | 4,506 | |
Impairment loss of associates/ Joint Ventures | 3,144 | 2,820 | |
Loss on sale of PP&E | 2 | 321 | |
Loss on sale of investment property | - | 26 | |
Loss from valuation of financial instruments | - | 3,588 | |
Damages incurred | 4,232 | 3,012 | |
Employee benefits | 12 | - | 3 |
Penalties | 637 | 2,561 | |
Depreciation and amortisation | - | 2,104 | |
Other | 4,097 | 2,400 | |
Total other expense | 24,769 | 37,786 | |
Net other income/ expense (-) | 17,917 | 5,364 |
Net Other income/expenses for the year ended 31 December 2024 amounted to a gain of EUR 17.9 million compared to a gain of EUR 5.4 million during 2023, mainly due to the following factors:
-\tDuring 2024, the challenging global economic conditions, dampened demand for NedZink B.V.\u2019s products, resulting in a downturn in its 2024 financial performance. As a consequence, an impairment loss of EUR 3.1 million was recognised in the participation to the company (Note 20).
-\tPursuant to a contract entered with a customer, an advance payment of EUR 4,295 thousand was received during 2023 and 2024. Such contract was terminated due to project not being implemented and as per the relevant contract provisions Viohalco\u2019s subsidiary was entitled to retain the said advance payment. Therefore, the relevant amount was recorded in the Consolidated Statement of Profit or Loss as \u2018Other income\u2019.
-\tDuring 2024, a reversal of impairment loss of EUR 1.7 million was recognized (2023: impairment loss of EUR 3.8 million) - on net basis - for own used property and investment property , due to changes in the fair value of real estate portfolio. Impairment loss and reversal of impairment loss are described in notes 17 and 19.
-\tDuring first half of 2023, the merger by absorption of the subsidiary of ElvalHalcor, Etem Commercial, from the joint-stock company Cosmos Aluminium SA was completed. As a result of this transaction, Viohalco recorded a gain of EUR 4.5 million at consolidated level. Based on the purchase agreement, the shareholders of ElvalHalcor granted Cosmos Aluminium with a put option to purchase the remaining outstanding capital stock of Cosmos Aluminium. In addition, Cosmos Aluminium granted ElvalHalcor with a put option to sale the remaining outstanding capital stock of Cosmos Aluminium. The exercise period for both options commenced in 2028 and their term is for six months. Upon the exercise of the aforementioned options, the shareholders of Cosmos Aluminium will own 100% of outstanding capital stock of Cosmos Aluminium. These expire in case that the shareholders do not exercise them during the exercise period. These options are recognized in the consolidated statement of financial position in their fair value and were included in the carrying amount of the investment in Cosmos Aluminium. The recognized gain for 2024 from their measurement in the fair value, amounted EUR 7.5 million, recorded into \u201cOther income\u201d.
A. Other Income | |||
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Government grants/subsidies | 2,661 | 2,632 | |
Amortization of grants received | 28 | 2,681 | 2,598 |
Rental income | 1,397 | 1,179 | |
Income from fees, commissions and costs recharged | 3,360 | 1,293 | |
Damage Compensation | 5,312 | 4,190 | |
Gain on sale of PP&E and intangible assets | 370 | 1,707 | |
Gain on sale of investment property | 27 | 624 | |
Gain from valuation of financial instruments | 7,462 | 322 | |
Reversal of provisions | - | 25 | |
Reversal of impairment loss of PP&E and investment property | 12,289 | 20,289 | |
Gain from disposal of subsidiaries | 230 | 4,490 | |
Gains from business combinations | 168 | - | |
Other | 6,730 | 3,800 | |
Total other income | 42,686 | 43,149 |
A. Other Income | |||
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Government grants/subsidies | 2,661 | 2,632 | |
Amortization of grants received | 28 | 2,681 | 2,598 |
Rental income | 1,397 | 1,179 | |
Income from fees, commissions and costs recharged | 3,360 | 1,293 | |
Damage Compensation | 5,312 | 4,190 | |
Gain on sale of PP&E and intangible assets | 370 | 1,707 | |
Gain on sale of investment property | 27 | 624 | |
Gain from valuation of financial instruments | 7,462 | 322 | |
Reversal of provisions | - | 25 | |
Reversal of impairment loss of PP&E and investment property | 12,289 | 20,289 | |
Gain from disposal of subsidiaries | 230 | 4,490 | |
Gains from business combinations | 168 | - | |
Other | 6,730 | 3,800 | |
Total other income | 42,686 | 43,149 |
C. Expenses by nature
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Cost of inventories recognized as an expense | 4,547,842 | 4,428,065 | |
Employee benefits | 12 | 517,112 | 473,925 |
Energy | 207,033 | 253,248 | |
Depreciation and amortisation | 149,973 | 146,123 | |
Amortization of contract costs | 157 | 74 | |
Taxes and duties | 20,465 | 13,813 | |
Insurance expenses | 39,441 | 44,065 | |
Rental fees | 8,226 | 8,731 | |
Transportation costs (goods and materials) | 167,220 | 196,682 | |
Promotion and advertising | 8,031 | 8,038 | |
Third party fees and benefits | 382,309 | 312,190 | |
Other provisions | - | 125 | |
Gains (-)/losses from derivatives | -6,699 | 793 | |
Storage and packing | 12,985 | 15,601 | |
Commissions | 14,715 | 13,750 | |
Foreign exchange gains(-)/losses | 5,237 | -3,820 | |
Maintenance expenses | 69,284 | 55,860 | |
Royalties | 4,873 | 2,655 | |
Consumption of production tools | 27,842 | 21,010 | |
Other expenses | 15,684 | 16,991 | |
Total | 6,191,730 | 6,007,920 |
B. Other Expenses | |||
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Impairment loss of PP&E and investment property | 10,628 | 16,444 | |
Write-off of PP&E and intangible assets | 2,030 | 4,506 | |
Impairment loss of associates/ Joint Ventures | 3,144 | 2,820 | |
Loss on sale of PP&E | 2 | 321 | |
Loss on sale of investment property | - | 26 | |
Loss from valuation of financial instruments | - | 3,588 | |
Damages incurred | 4,232 | 3,012 | |
Employee benefits | 12 | - | 3 |
Penalties | 637 | 2,561 | |
Depreciation and amortisation | - | 2,104 | |
Other | 4,097 | 2,400 | |
Total other expense | 24,769 | 37,786 | |
Net other income/ expense (-) | 17,917 | 5,364 |
Net Other income/expenses for the year ended 31 December 2024 amounted to a gain of EUR 17.9 million compared to a gain of EUR 5.4 million during 2023, mainly due to the following factors:
-\tDuring 2024, the challenging global economic conditions, dampened demand for NedZink B.V.\u2019s products, resulting in a downturn in its 2024 financial performance. As a consequence, an impairment loss of EUR 3.1 million was recognised in the participation to the company (Note 20).
-\tPursuant to a contract entered with a customer, an advance payment of EUR 4,295 thousand was received during 2023 and 2024. Such contract was terminated due to project not being implemented and as per the relevant contract provisions Viohalco\u2019s subsidiary was entitled to retain the said advance payment. Therefore, the relevant amount was recorded in the Consolidated Statement of Profit or Loss as \u2018Other income\u2019.
-\tDuring 2024, a reversal of impairment loss of EUR 1.7 million was recognized (2023: impairment loss of EUR 3.8 million) - on net basis - for own used property and investment property , due to changes in the fair value of real estate portfolio. Impairment loss and reversal of impairment loss are described in notes 17 and 19.
-\tDuring first half of 2023, the merger by absorption of the subsidiary of ElvalHalcor, Etem Commercial, from the joint-stock company Cosmos Aluminium SA was completed. As a result of this transaction, Viohalco recorded a gain of EUR 4.5 million at consolidated level. Based on the purchase agreement, the shareholders of ElvalHalcor granted Cosmos Aluminium with a put option to purchase the remaining outstanding capital stock of Cosmos Aluminium. In addition, Cosmos Aluminium granted ElvalHalcor with a put option to sale the remaining outstanding capital stock of Cosmos Aluminium. The exercise period for both options commenced in 2028 and their term is for six months. Upon the exercise of the aforementioned options, the shareholders of Cosmos Aluminium will own 100% of outstanding capital stock of Cosmos Aluminium. These expire in case that the shareholders do not exercise them during the exercise period. These options are recognized in the consolidated statement of financial position in their fair value and were included in the carrying amount of the investment in Cosmos Aluminium. The recognized gain for 2024 from their measurement in the fair value, amounted EUR 7.5 million, recorded into \u201cOther income\u201d.
B. Other Expenses | |||
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Impairment loss of PP&E and investment property | 10,628 | 16,444 | |
Write-off of PP&E and intangible assets | 2,030 | 4,506 | |
Impairment loss of associates/ Joint Ventures | 3,144 | 2,820 | |
Loss on sale of PP&E | 2 | 321 | |
Loss on sale of investment property | - | 26 | |
Loss from valuation of financial instruments | - | 3,588 | |
Damages incurred | 4,232 | 3,012 | |
Employee benefits | 12 | - | 3 |
Penalties | 637 | 2,561 | |
Depreciation and amortisation | - | 2,104 | |
Other | 4,097 | 2,400 | |
Total other expense | 24,769 | 37,786 | |
Net other income/ expense (-) | 17,917 | 5,364 |
Net Other income/expenses for the year ended 31 December 2024 amounted to a gain of EUR 17.9 million compared to a gain of EUR 5.4 million during 2023, mainly due to the following factors:
-\tDuring 2024, the challenging global economic conditions, dampened demand for NedZink B.V.\u2019s products, resulting in a downturn in its 2024 financial performance. As a consequence, an impairment loss of EUR 3.1 million was recognised in the participation to the company (Note 20).
-\tPursuant to a contract entered with a customer, an advance payment of EUR 4,295 thousand was received during 2023 and 2024. Such contract was terminated due to project not being implemented and as per the relevant contract provisions Viohalco\u2019s subsidiary was entitled to retain the said advance payment. Therefore, the relevant amount was recorded in the Consolidated Statement of Profit or Loss as \u2018Other income\u2019.
-\tDuring 2024, a reversal of impairment loss of EUR 1.7 million was recognized (2023: impairment loss of EUR 3.8 million) - on net basis - for own used property and investment property , due to changes in the fair value of real estate portfolio. Impairment loss and reversal of impairment loss are described in notes 17 and 19.
-\tDuring first half of 2023, the merger by absorption of the subsidiary of ElvalHalcor, Etem Commercial, from the joint-stock company Cosmos Aluminium SA was completed. As a result of this transaction, Viohalco recorded a gain of EUR 4.5 million at consolidated level. Based on the purchase agreement, the shareholders of ElvalHalcor granted Cosmos Aluminium with a put option to purchase the remaining outstanding capital stock of Cosmos Aluminium. In addition, Cosmos Aluminium granted ElvalHalcor with a put option to sale the remaining outstanding capital stock of Cosmos Aluminium. The exercise period for both options commenced in 2028 and their term is for six months. Upon the exercise of the aforementioned options, the shareholders of Cosmos Aluminium will own 100% of outstanding capital stock of Cosmos Aluminium. These expire in case that the shareholders do not exercise them during the exercise period. These options are recognized in the consolidated statement of financial position in their fair value and were included in the carrying amount of the investment in Cosmos Aluminium. The recognized gain for 2024 from their measurement in the fair value, amounted EUR 7.5 million, recorded into \u201cOther income\u201d.
C. Expenses by nature
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Cost of inventories recognized as an expense | 4,547,842 | 4,428,065 | |
Employee benefits | 12 | 517,112 | 473,925 |
Energy | 207,033 | 253,248 | |
Depreciation and amortisation | 149,973 | 146,123 | |
Amortization of contract costs | 157 | 74 | |
Taxes and duties | 20,465 | 13,813 | |
Insurance expenses | 39,441 | 44,065 | |
Rental fees | 8,226 | 8,731 | |
Transportation costs (goods and materials) | 167,220 | 196,682 | |
Promotion and advertising | 8,031 | 8,038 | |
Third party fees and benefits | 382,309 | 312,190 | |
Other provisions | - | 125 | |
Gains (-)/losses from derivatives | -6,699 | 793 | |
Storage and packing | 12,985 | 15,601 | |
Commissions | 14,715 | 13,750 | |
Foreign exchange gains(-)/losses | 5,237 | -3,820 | |
Maintenance expenses | 69,284 | 55,860 | |
Royalties | 4,873 | 2,655 | |
Consumption of production tools | 27,842 | 21,010 | |
Other expenses | 15,684 | 16,991 | |
Total | 6,191,730 | 6,007,920 |
The key drivers of variation of operating expenses during 2024 are the following:
-\tThe increase in sales volumes, affected cost of sales and related operating expenses (Cost of inventories recognized as an expense and materials and maintenance expenses) which have increased as well.\u00a0
-\tThe increase in \u201c\u03a4hird party fees and benefits\u201d is attributed mainly to project-specific services from subcontractors, particularly in the cables segment. Cables segment experienced a rise in installation services related to turnkey contracts executed by subsidiaries, leading to higher costs compared to 2023.
The aggregate amount of research and development expenditure recognized as an expense during 2024 amounts to EUR 23.2 million (2023: EUR 18.2 million).
9. Net finance cost
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Income | ||
Interest income | 14,804 | 7,089 |
Foreign exchange gains | 2,710 | 1,449 |
Dividend income | 543 | 560 |
Finance income | 18,057 | 9,098 |
Expense | ||
Interest expense and related costs | 187,321 | 194,620 |
Gains(-)/Loss from derivatives | -5,559 | -1,516 |
Interest on leases | 2,449 | 2,095 |
Foreign exchange losses | 1,023 | 1,695 |
Finance cost | 185,235 | 196,894 |
Net finance income/cost (-) | -167,178 | -187,796 |
Interest expenses and related costs decreased by 4% compared to 2023 as as a consequence of the average debt reduction.
In order to be secured from interest rates volatility, Viohalco subsidiaries entered into interest rates swaps contracts to hedge part of their finance costs. The results and the valuation of these interest rate swaps are recorded within the \u2018Finance costs\u2019.
12. Employee benefit expenses
Amounts in EUR thousands | Note | 2024 | 2023 |
Wages and salaries | 406,160 | 368,009 | |
Social security contributions | 74,343 | 67,416 | |
Defined contribution plans | 5,053 | 1,165 | |
Defined benefit plans | 11 | 6,534 | 7,639 |
Other employee benefits | 32,752 | 33,727 | |
Total | 524,842 | 477,956 |
Employee benefits have been allocated as follows: | |||
Cost of goods sold | 8 | 351,633 | 316,474 |
Selling and distribution expenses | 8 | 50,744 | 53,073 |
Administrative expenses | 8 | 114,735 | 104,378 |
Other expenses | 8 | - | 3 |
Capitalised employee benefits in projects under construction | 7,730 | 4,028 | |
Total | 524,842 | 477,956 |
The number of employees, as well as their profile and gender, employed by Viohalco companies is presented in the following tables:
2024 | ||||
\u00a0 | 18 - 30 | 30-50 | 51+ | Total |
Male | 1,076 | 5,369 | 3,119 | 9,564 |
Female | 274 | 1,118 | 498 | 1,890 |
Total | 1,350 | 6,487 | 3,617 | 11,454 |
Office employees & professionals | Workers | Management | Total | |
Number of Employees | 3,206 | 7,234 | 1,014 | 11,454 |
2023 | ||||
\u00a0 | 18 - 30 | 30-50 | 51+ | Total |
Male | 1,072 | 5,262 | 2,820 | 9,154 |
Female | 251 | 1,105 | 445 | 1,801 |
Total | 1,323 | 6,367 | 3,265 | 10,955 |
Office employees & professionals | Workers | Management | Total | |
Number of Employees | 2,902 | 7,045 | 1,008 | 10,955 |
13. Income tax expense
A. Amounts recognised in profit or loss
Amounts in EUR thousands | 2024 | 2023 |
Current tax | -50,672 | -36,213 |
Deferred tax | -12,160 | 11,404 |
Income tax expense (-) | -62,832 | -24,809 |
B. Amounts recognised in OCI
2024 | |||
Amounts in EUR thousands | Before tax | Related tax | Net of tax |
Amounts recognized in the OCI | |||
Remeasurements of defined benefit liability | -1,385 | 294 | -1,091 |
Remeasurement of redemption liability | -286 | - | -286 |
Equity investments in FVOCI - net change in fair value | -233 | - | -233 |
Foreign currency translation differences | 6,129 | - | 6,129 |
Gain / Loss (-) of changes in fair value of cash flow hedging - effective portion | 664 | -377 | 287 |
Gain / Loss (-) of changes in fair value of cash flow hedging - reclassified to profit or loss | -6,012 | 1,388 | -4,625 |
Total | -1,124 | 1,305 | 182 |
2023 | |||
Amounts in EUR thousands | Before tax | Related tax | Net of tax |
Amounts recognized in the OCI | |||
Remeasurements of defined benefit liability | -2,044 | 394 | -1,650 |
Equity investments in FVOCI - net change in fair value | -151 | - | -151 |
Foreign currency translation differences | -2,067 | - | -2,067 |
Gain / Loss (-) of changes in fair value of cash flow hedging - effective portion | -16,673 | 3,709 | -12,964 |
Gain / Loss (-) of changes in fair value of cash flow hedging - reclassified to profit or loss | -9,493 | 1,868 | -7,625 |
Total | -30,429 | 5,972 | -24,457 |
C. Reconciliation of effective tax rate
Amounts in EUR thousands | 2024 | 2023 | |
Profit/loss (-) before income tax expense | 273,649 | 91,324 | |
Tax calculated at parent company\u2019s statutory income tax rate (2024 & 2023: 25.0%) | -68,412 | -22,831 | |
Effect of different tax rates in jurisdictions that Viohalco companies operate | 13,076 | -147 | |
Tax calculated at weighted average income tax rate (2024: 20.2% & 2023: 25.2%) | -55,336 | -22,978 | |
Adjustments for: | |||
Non-deductible expenses for tax purposes | -11,506 | -4,989 | |
Tax-exempt income | 688 | 6,700 | |
Tax incentives | 7,643 | 1,472 | |
Recognition of previously unrecognised tax losses, thin capitalization allowance or temporary differences of a prior period | 887 | 1,315 | |
Current-year losses for which no deferred tax asset is recognised | -3,263 | -3,072 | |
Tax-exempt reserves recognition | 1,300 | - | |
Withholding tax on international dividends | -21 | -52 | |
Change in tax rate or composition of new tax | - | 478 | |
Pillar II Top-up tax | -183 | - | |
Derecognition of previously recognised deferred tax assets | -1,118 | -2,082 | |
Prior year income tax adjustments | -1,922 | -1,602 | |
Income tax expense reported in the statement of profit or loss (-) at the effective tax rate | 23% | -62,832 | -24,809 |
The corporate income tax rate in Belgium according to the applicable tax legislation is 25%. The profit is taxed at the applicable rate corresponding to the country in which each company is domiciled. According to the Greek law 4799/2021, enacted in May 2021, the corporate income tax rate for legal entities in Greece, where most of Viohalco subsidiaries are located, for the fiscal year 2021 and onwards is set at 22%.
International Tax Reform \u2013 Pillar Two
Viohalco is within the scope of the OECD Pillar Two model rules that has been enacted or substantively enacted in certain jurisdictions in which Viohalco companies have presence. Under Pillar Two legislation, a top-up tax may arise for any difference between their Global Anti-Base Erosion (\u201cGloBE\u201d) effective tax rate per jurisdiction and the 15% minimum rate. The legislation is effective for the financial year beginning 1 January 2024.
Viohalco applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
For the year ended as at 31 December 2024, Viohalco has performed an assessment for all countries in which it has presence of the potential tax expense arising from Pillar Two rules. This assessment has been based on the Constituent Entities\u2019 IFRS financial statements as at 31/12/2024 in order to validate conclusions on eligibility of Constituents Entities for the CBCR Safe Harbour transitional rules.
Based on this assessment, only profits reported in Bulgaria and USA were not eligible for the CBCR Safe Harbour transitional rules, and for such profits the respective Pillar II top up tax liability recognised in 2024, amounts to EUR 183 thousands for the jurisdiction of Bulgaria.
D. Movement in deferred tax balances
2024 | Net balance at 31 December | |||||||||
Amounts in EUR thousands | Net balance at 1 January | Recognised in profit or loss | Recognised in OCI | Foreign exchange differences | Change in tax rate recognised in profit or loss | Change in tax rate recognised in OCI | Other | Net | Deferred tax assets | Deferred tax liabilities |
Property, plant & equipment | -117,235 | -7,971 | - | -386 | - | - | - | -125,592 | 824 | -126,415 |
Right of use asset | -2,127 | -1,045 | - | - | - | - | - | -3,172 | 90 | -3,262 |
Intangible assets | -1,245 | -86 | - | - | - | - | - | -1,331 | 1,239 | -2,570 |
Investment property | -2,491 | - | - | - | - | - | - | -2,490 | 86 | -2,576 |
Other investments | 752 | -1,057 | - | - | - | - | - | -305 | 138 | -443 |
Derivatives | -4,398 | 1,214 | 1,011 | -5 | - | - | - | -2,177 | 789 | -2,966 |
Inventories | 1,198 | -517 | - | - | - | - | - | 681 | 1,836 | -1,155 |
Loans and borrowings | 1,989 | 2,385 | - | 53 | - | - | - | 4,427 | 4,709 | -283 |
Employee benefits | 5,002 | 268 | 294 | - | - | - | - | 5,563 | 5,691 | -128 |
Provisions / Accruals | 6,540 | 3,435 | - | 202 | - | - | - | 10,177 | 10,177 | - |
Contract with customers | -18,944 | 10,403 | - | - | - | - | - | -8,541 | 14,585 | -23,125 |
Contract liabilities | -9 | - | - | - | - | - | - | -9 | - | -9 |
Other items | 2,817 | 145 | - | - | - | - | - | 2,962 | 3,874 | -912 |
Thin capitalisation | 28,563 | -10,485 | - | - | - | - | - | 18,079 | 18,079 | - |
Tax losses carried forward | 22,828 | -8,849 | - | 419 | - | - | - | 14,397 | 14,400 | -2 |
Tax assets/liabilities (-) before set-off | -76,758 | -12,160 | 1,305 | 282 | - | - | - | -87,330 | 76,516 | -163,846 |
Set-off tax | -53,481 | 53,481 | ||||||||
Net tax assets/liabilities (-) | -87,330 | 23,034 | -110,365 | |||||||
2023 | ||||||||||
Net balance at 31 December | ||||||||||
Amounts in EUR thousands | Net balance at 1 January | Recognised in profit or loss | Recognised in OCI | Foreign exchange differences | Change in tax rate recognised in profit or loss | Change in tax rate recognised in OCI | Loss of Control/Disposal of subsidiary | Net | Deferred tax assets | Deferred tax liabilities |
Property, plant & equipment | -112,789 | -5,253 | - | -170 | 34 | - | 944 | -117,235 | 1,023 | -118,258 |
Right of use asset | -480 | 277 | - | - | - | - | -1,924 | -2,127 | 106 | -2,233 |
Intangible assets | -859 | -385 | - | - | - | - | -1 | -1,245 | 1,289 | -2,534 |
Investment property | -2,410 | -81 | - | - | - | - | - | -2,491 | 92 | -2,582 |
Other investments | -917 | 1,669 | - | - | - | - | - | 752 | 832 | -79 |
Derivatives | -10,115 | 139 | 5,584 | -4 | 5 | -6 | - | -4,398 | 160 | -4,558 |
Inventories | 2,419 | -1,222 | - | - | - | - | - | 1,198 | 1,198 | - |
Loans and borrowings | -342 | 1,306 | - | 1 | 44 | - | 980 | 1,989 | 2,607 | -618 |
Employee benefits | 4,267 | 343 | 394 | -2 | - | - | - | 5,002 | 5,135 | -133 |
Provisions / Accruals | 6,278 | 379 | - | -117 | - | - | - | 6,540 | 6,540 | - |
Contract with customers | -17,517 | -2,457 | - | - | - | - | 1,030 | -18,944 | 2,761 | -21,704 |
Contract liabilities | -9 | - | - | - | - | - | - | -9 | - | -9 |
Other items | 1,392 | 2,466 | - | -4 | - | - | -1,037 | 2,817 | 3,813 | -996 |
Thin capitalisation | 23,596 | 4,967 | - | - | - | - | - | 28,563 | 28,563 | - |
Tax losses carried forward | 13,625 | 8,778 | - | 30 | 396 | - | - | 22,828 | 22,830 | -2 |
Tax assets/liabilities (-) before set-off | -93,860 | 10,925 | 5,978 | -266 | 478 | -6 | -7 | -76,758 | 76,949 | -153,707 |
Set-off tax | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -63,670 | 63,670 |
Net tax assets/liabilities (-) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -76,758 | 13,279 | -90,037 |
Deferred tax assets relating to tax losses carried forward are recognised only if it is probable that they can be offset against future taxable profits. At each balance sheet date, Viohalco and its subsidiaries assess whether the realization of future tax benefits is sufficiently probable based on approved business plans. On 31 December 2024, the accumulated tax losses carried forward available for future use amounted to EUR 116.8 million (31 December 2023 EUR 137.1 million). Viohalco companies have recognised cumulatively a deferred tax asset of EUR 14.4 million (31 December 2023: EUR 22.8 million) on tax losses because management considered it probable that future taxable profits would be available against which such losses can be used. EUR 4.1 million relate to Viohalco subsidiaries located in Greece, EUR 10 million relate to Viohalco subsidiaries located in UK and the rest EUR 0.3 million to subsidiaries in other jurisdictions. This deferred tax asset corresponds to losses equal to EUR 57 million (31 December 2023: EUR 88.7 million).
Based on these estimates regarding future taxable profits, deferred tax assets have not been recognised in respect of tax losses carried forward for an amount of EUR 60 million (EUR 48 million in 2023). Out of these, tax losses equal to EUR 12.4 million expire in 2025 and 2026, while the rest expire between 2027 and 2029. According to the provisions of articles 49 and 72 of the Greek Law 4172/2013 concerning thin capitalization, net interest expense is deductible from current year\u2019s tax profits, if it is equal or less than 30% of EBITDA and any excess can be settled with future tax profits without time limitations. Based on the current approved business plans, the balance of the respective tax asset was equal to EUR 18.1 million, as at 31 December 2024 (31 December 2023: EUR 28.6 million).
(b)Amounts recognised in the Statement of profit or loss
The statement of profit or loss includes the following amounts relating to leases:
Amounts in EUR thousands | 2024 | 2023 |
Depreciation charge of right-of-use assets | ||
Plots | 189 | 184 |
Buildings | 1,978 | 1,741 |
Machinery | 1,529 | 2,110 |
Transportation means | 8,277 | 6,140 |
Other equipment | 69 | 121 |
Total | 12,043 | 10,295 |
Interest expense (included in finance cost) | 2,449 | 2,095 |
Variable rental fees | 1,301 | 1,056 |
Low value rental fees | 513 | 564 |
Short term rental fees | 6,413 | 7,110 |
Total | 10,676 | 10,826 |
B. Leases as lessor
Viohalco and its companies in the real estate development sector lease out their investment properties (See note 19).
a) Future minimum lease collections
At 31 December, the future minimum lease payments under non-cancellable leases were as follows.
Amounts in EUR thousands | 2024 | 2023 |
Less than one year | 26,658 | 24,203 |
Between one and two years | 26,445 | 23,379 |
Between two and three years | 25,256 | 22,819 |
Between three and four years | 22,891 | 21,390 |
Between four and five years | 22,446 | 19,196 |
More than five years | 215,093 | 84,581 |
Total | 338,789 | 195,569 |
(b) Amounts recognized in profit or loss
The figures below are related to investment property that has been recognised in the statement of profit or loss. Operating expenses relate mainly to maintenance cost.
Amounts in EUR thousands | 2024 | 2023 |
Rental income from investment property | 29,702 | 25,558 |
Direct operating expenses that do not generate rental income | - | -65 |
C. Expenses by nature
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Cost of inventories recognized as an expense | 4,547,842 | 4,428,065 | |
Employee benefits | 12 | 517,112 | 473,925 |
Energy | 207,033 | 253,248 | |
Depreciation and amortisation | 149,973 | 146,123 | |
Amortization of contract costs | 157 | 74 | |
Taxes and duties | 20,465 | 13,813 | |
Insurance expenses | 39,441 | 44,065 | |
Rental fees | 8,226 | 8,731 | |
Transportation costs (goods and materials) | 167,220 | 196,682 | |
Promotion and advertising | 8,031 | 8,038 | |
Third party fees and benefits | 382,309 | 312,190 | |
Other provisions | - | 125 | |
Gains (-)/losses from derivatives | -6,699 | 793 | |
Storage and packing | 12,985 | 15,601 | |
Commissions | 14,715 | 13,750 | |
Foreign exchange gains(-)/losses | 5,237 | -3,820 | |
Maintenance expenses | 69,284 | 55,860 | |
Royalties | 4,873 | 2,655 | |
Consumption of production tools | 27,842 | 21,010 | |
Other expenses | 15,684 | 16,991 | |
Total | 6,191,730 | 6,007,920 |
The key drivers of variation of operating expenses during 2024 are the following:
-\tThe increase in sales volumes, affected cost of sales and related operating expenses (Cost of inventories recognized as an expense and materials and maintenance expenses) which have increased as well.\u00a0
-\tThe increase in \u201c\u03a4hird party fees and benefits\u201d is attributed mainly to project-specific services from subcontractors, particularly in the cables segment. Cables segment experienced a rise in installation services related to turnkey contracts executed by subsidiaries, leading to higher costs compared to 2023.
The aggregate amount of research and development expenditure recognized as an expense during 2024 amounts to EUR 23.2 million (2023: EUR 18.2 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfExpensesByNatureExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__170": { "value": "C. Expenses by nature
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Cost of inventories recognized as an expense | 4,547,842 | 4,428,065 | |
Employee benefits | 12 | 517,112 | 473,925 |
Energy | 207,033 | 253,248 | |
Depreciation and amortisation | 149,973 | 146,123 | |
Amortization of contract costs | 157 | 74 | |
Taxes and duties | 20,465 | 13,813 | |
Insurance expenses | 39,441 | 44,065 | |
Rental fees | 8,226 | 8,731 | |
Transportation costs (goods and materials) | 167,220 | 196,682 | |
Promotion and advertising | 8,031 | 8,038 | |
Third party fees and benefits | 382,309 | 312,190 | |
Other provisions | - | 125 | |
Gains (-)/losses from derivatives | -6,699 | 793 | |
Storage and packing | 12,985 | 15,601 | |
Commissions | 14,715 | 13,750 | |
Foreign exchange gains(-)/losses | 5,237 | -3,820 | |
Maintenance expenses | 69,284 | 55,860 | |
Royalties | 4,873 | 2,655 | |
Consumption of production tools | 27,842 | 21,010 | |
Other expenses | 15,684 | 16,991 | |
Total | 6,191,730 | 6,007,920 |
The key drivers of variation of operating expenses during 2024 are the following:
-\tThe increase in sales volumes, affected cost of sales and related operating expenses (Cost of inventories recognized as an expense and materials and maintenance expenses) which have increased as well.\u00a0
-\tThe increase in \u201c\u03a4hird party fees and benefits\u201d is attributed mainly to project-specific services from subcontractors, particularly in the cables segment. Cables segment experienced a rise in installation services related to turnkey contracts executed by subsidiaries, leading to higher costs compared to 2023.
The aggregate amount of research and development expenditure recognized as an expense during 2024 amounts to EUR 23.2 million (2023: EUR 18.2 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCostOfSalesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__173": { "value": "C. Expenses by nature
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Cost of inventories recognized as an expense | 4,547,842 | 4,428,065 | |
Employee benefits | 12 | 517,112 | 473,925 |
Energy | 207,033 | 253,248 | |
Depreciation and amortisation | 149,973 | 146,123 | |
Amortization of contract costs | 157 | 74 | |
Taxes and duties | 20,465 | 13,813 | |
Insurance expenses | 39,441 | 44,065 | |
Rental fees | 8,226 | 8,731 | |
Transportation costs (goods and materials) | 167,220 | 196,682 | |
Promotion and advertising | 8,031 | 8,038 | |
Third party fees and benefits | 382,309 | 312,190 | |
Other provisions | - | 125 | |
Gains (-)/losses from derivatives | -6,699 | 793 | |
Storage and packing | 12,985 | 15,601 | |
Commissions | 14,715 | 13,750 | |
Foreign exchange gains(-)/losses | 5,237 | -3,820 | |
Maintenance expenses | 69,284 | 55,860 | |
Royalties | 4,873 | 2,655 | |
Consumption of production tools | 27,842 | 21,010 | |
Other expenses | 15,684 | 16,991 | |
Total | 6,191,730 | 6,007,920 |
The key drivers of variation of operating expenses during 2024 are the following:
-\tThe increase in sales volumes, affected cost of sales and related operating expenses (Cost of inventories recognized as an expense and materials and maintenance expenses) which have increased as well.\u00a0
-\tThe increase in \u201c\u03a4hird party fees and benefits\u201d is attributed mainly to project-specific services from subcontractors, particularly in the cables segment. Cables segment experienced a rise in installation services related to turnkey contracts executed by subsidiaries, leading to higher costs compared to 2023.
The aggregate amount of research and development expenditure recognized as an expense during 2024 amounts to EUR 23.2 million (2023: EUR 18.2 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__174-1": { "value": "C. Expenses by nature
For the year ended 31 December | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Cost of inventories recognized as an expense | 4,547,842 | 4,428,065 | |
Employee benefits | 12 | 517,112 | 473,925 |
Energy | 207,033 | 253,248 | |
Depreciation and amortisation | 149,973 | 146,123 | |
Amortization of contract costs | 157 | 74 | |
Taxes and duties | 20,465 | 13,813 | |
Insurance expenses | 39,441 | 44,065 | |
Rental fees | 8,226 | 8,731 | |
Transportation costs (goods and materials) | 167,220 | 196,682 | |
Promotion and advertising | 8,031 | 8,038 | |
Third party fees and benefits | 382,309 | 312,190 | |
Other provisions | - | 125 | |
Gains (-)/losses from derivatives | -6,699 | 793 | |
Storage and packing | 12,985 | 15,601 | |
Commissions | 14,715 | 13,750 | |
Foreign exchange gains(-)/losses | 5,237 | -3,820 | |
Maintenance expenses | 69,284 | 55,860 | |
Royalties | 4,873 | 2,655 | |
Consumption of production tools | 27,842 | 21,010 | |
Other expenses | 15,684 | 16,991 | |
Total | 6,191,730 | 6,007,920 |
Amounts in EUR thousands | Land, plants & other buildings | Machinery & transportation equipment | Furniture & other equipment | PP&E under construction | Total |
Cost | |||||
Balance as at 1 January 2024 | 1,172,800 | 3,233,840 | 96,282 | 235,557 | 4,738,478 |
Effect of movement in exchange rates | 2,667 | 9,086 | 322 | 1,226 | 13,301 |
Additions | 30,213 | 31,707 | 5,917 | 342,740 | 410,577 |
Disposals | -38 | -4,035 | -173 | -28 | -4,274 |
Transfer to/from investment property | - | - | - | -9,708 | -9,708 |
Reclassifications | 46,185 | 70,830 | 3,329 | -123,340 | -2,995 |
Write offs | -252 | -6,820 | -241 | -504 | -7,817 |
Balance as at 31 December 2024 | 1,251,575 | 3,334,607 | 105,436 | 445,943 | 5,137,561 |
Accumulated depreciation & impairment losses | |||||
Balance as at 1 January 2024 | -416,096 | -1,867,199 | -74,202 | -4,983 | -2,362,480 |
Effect of movement in exchange rates | -804 | -6,618 | -294 | - | -7,716 |
Depreciation | -22,391 | -95,574 | -7,431 | - | -125,396 |
Disposals | 34 | 3,217 | 69 | - | 3,320 |
Write offs | 94 | 5,481 | 232 | - | 5,807 |
Reversal of previously recognized impairment loss | 9,202 | 263 | - | - | 9,464 |
Impairment loss | -101 | -846 | - | - | -947 |
Reclassifications | -2,399 | -586 | -75 | - | -3,059 |
Balance as at 31 December 2024 | -432,462 | -1,961,862 | -81,701 | -4,983 | -2,481,007 |
Carrying amount as at 31 December 2024 | 819,114 | 1,372,745 | 23,735 | 440,961 | 2,656,555 |
Amounts in EUR thousands | Land, plants & other buildings | Machinery & transportation equipment | Furniture & other equipment | PP&E under construction | Total |
Cost | |||||
Balance as at 1 January 2023 | 1,145,277 | 3,115,012 | 84,159 | 170,654 | 4,515,102 |
Effect of movement in exchange rates | 1,165 | 3,510 | 3 | -358 | 4,320 |
Additions | 18,971 | 24,175 | 8,282 | 233,147 | 284,574 |
Disposals | -92 | -3,978 | -286 | -791 | -5,148 |
Transfer to/from investment property | -20,573 | - | - | - | -20,573 |
Reclassifications | 31,232 | 131,363 | 9,701 | -163,564 | 8,733 |
Write offs | -3,090 | -36,243 | -5,424 | -3,530 | -48,287 |
Reclassification to assets held for sale | -89 | - | -153 | - | -242 |
Balance as at 31 December 2023 | 1,172,800 | 3,233,840 | 96,282 | 235,557 | 4,738,478 |
Accumulated depreciation & impairment losses | |||||
Balance as at 1 January 2023 | -406,935 | -1,803,569 | -68,580 | -4,983 | -2,284,066 |
Effect of movement in exchange rates | -573 | -2,487 | -14 | - | -3,074 |
Depreciation | -22,787 | -98,902 | -6,233 | - | -127,922 |
Disposals | 24 | 3,310 | 233 | - | 3,567 |
Write offs | 3,087 | 35,274 | 5,420 | - | 43,781 |
Reversal of previously recognized impairment loss | 10,634 | 278 | - | - | 10,912 |
Transfer to/from investment property | 2,876 | - | - | - | 2,876 |
Impairment loss | -2,765 | -1,180 | -4 | - | -3,949 |
Reclassifications | 342 | 77 | -5,029 | - | -4,610 |
Reclassification to assets held for sale | 1 | - | 4 | - | 4 |
Balance as at 31 December 2023 | -416,096 | -1,867,199 | -74,202 | -4,983 | -2,362,480 |
Carrying amount as at 31 December 2023 | 756,704 | 1,366,640 | 22,080 | 230,574 | 2,375,998 |
The net amount of EUR 6 million in \u2018Reclassifications\u2019 movement mainly concerns reclassifications between property, plant and equipment, intangibles and right of use assets.
Reconciliation of carrying amountAmounts in EUR thousands | Goodwill | Development costs | Trademarks and licenses | Software | Other | Total |
Cost | ||||||
Balance as at 1 January 2024 | 1,500 | 537 | 43,747 | 67,951 | 3,248 | 116,982 |
Effect of movement in exchange rates | - | - | - | 9 | -1 | 8 |
Additions | - | - | 2,422 | 4,031 | - | 6,454 |
Write-offs | - | - | - | -2 | - | -2 |
Reclassifications | - | - | 4,539 | 2,791 | 115 | 7,445 |
Balance as at 31 December 2024 | 1,500 | 537 | 50,707 | 74,781 | 3,362 | 130,887 |
Accumulated amortization and impairment loss | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
Balance as at 1 January 2024 | -1,500 | -512 | -16,467 | -46,790 | -1,184 | -66,453 |
Effect of movement in exchange rates | - | - | - | -5 | 1 | -5 |
Amortization | - | -8 | -3,184 | -3,761 | -190 | -7,143 |
Write-offs | - | - | - | 2 | - | 2 |
Balance as at 31 December 2024 | -1,500 | -520 | -19,652 | -50,555 | -1,373 | -73,600 |
Carrying amount as at 31 December 2024 | - | 17 | 31,056 | 24,225 | 1,989 | 57,287 |
Amounts in EUR thousands | Goodwill | Development costs | Trademarks and licenses | Software | Other | Total |
Cost | ||||||
Balance as at 1 January 2023 | 1,500 | 537 | 39,569 | 60,619 | 3,138 | 105,363 |
Effect of movement in exchange rates | - | - | - | -49 | -5 | -54 |
Additions | - | - | 1,940 | 5,023 | 112 | 7,075 |
Write-offs | - | - | - | -8 | - | -8 |
Loss of Control/Disposal of subsidiary | - | - | -5 | -6 | - | -11 |
Reclassifications | - | - | 2,243 | 2,373 | 3 | 4,619 |
Balance as at 31 December 2023 | 1,500 | 537 | 43,747 | 67,951 | 3,248 | 116,982 |
Accumulated amortization and impairment loss | ||||||
Balance as at 1 January 2023 | -1,500 | -505 | -14,004 | -44,956 | -1,022 | -61,986 |
Effect of movement in exchange rates | - | - | - | 37 | 2 | 40 |
Amortization | - | -8 | -2,427 | -1,917 | -164 | -4,515 |
Write-offs | - | - | - | 8 | - | 8 |
Reclassifications | - | - | -37 | 37 | - | - |
Balance as at 31 December 2023 | -1,500 | -512 | -16,467 | -46,790 | -1,184 | -66,453 |
Carrying amount as at 31 December 2023 | - | 25 | 27,279 | 21,161 | 2,065 | 50,529 |
B. Amortisation
The amortization of trademarks and licenses with finite useful lives, software programs and other intangible assets is allocated to the cost of inventory and is included in \u2019Cost of sales\u2018 when inventory is sold, as trademarks and licenses and software programs are mainly used directly for the production of products and they are considered as production overheads. The amortization of intangible assets not used for production is allocated to administrative expenses.
(b)Amounts recognised in the Statement of profit or loss
The statement of profit or loss includes the following amounts relating to leases:
Amounts in EUR thousands | 2024 | 2023 |
Depreciation charge of right-of-use assets | ||
Plots | 189 | 184 |
Buildings | 1,978 | 1,741 |
Machinery | 1,529 | 2,110 |
Transportation means | 8,277 | 6,140 |
Other equipment | 69 | 121 |
Total | 12,043 | 10,295 |
Interest expense (included in finance cost) | 2,449 | 2,095 |
Variable rental fees | 1,301 | 1,056 |
Low value rental fees | 513 | 564 |
Short term rental fees | 6,413 | 7,110 |
Total | 10,676 | 10,826 |
B. Leases as lessor
Viohalco and its companies in the real estate development sector lease out their investment properties (See note 19).
a) Future minimum lease collections
At 31 December, the future minimum lease payments under non-cancellable leases were as follows.
Amounts in EUR thousands | 2024 | 2023 |
Less than one year | 26,658 | 24,203 |
Between one and two years | 26,445 | 23,379 |
Between two and three years | 25,256 | 22,819 |
Between three and four years | 22,891 | 21,390 |
Between four and five years | 22,446 | 19,196 |
More than five years | 215,093 | 84,581 |
Total | 338,789 | 195,569 |
(b) Amounts recognized in profit or loss
The figures below are related to investment property that has been recognised in the statement of profit or loss. Operating expenses relate mainly to maintenance cost.
Amounts in EUR thousands | 2024 | 2023 |
Rental income from investment property | 29,702 | 25,558 |
Direct operating expenses that do not generate rental income | - | -65 |
9. Net finance cost
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Income | ||
Interest income | 14,804 | 7,089 |
Foreign exchange gains | 2,710 | 1,449 |
Dividend income | 543 | 560 |
Finance income | 18,057 | 9,098 |
Expense | ||
Interest expense and related costs | 187,321 | 194,620 |
Gains(-)/Loss from derivatives | -5,559 | -1,516 |
Interest on leases | 2,449 | 2,095 |
Foreign exchange losses | 1,023 | 1,695 |
Finance cost | 185,235 | 196,894 |
Net finance income/cost (-) | -167,178 | -187,796 |
Interest expenses and related costs decreased by 4% compared to 2023 as as a consequence of the average debt reduction.
In order to be secured from interest rates volatility, Viohalco subsidiaries entered into interest rates swaps contracts to hedge part of their finance costs. The results and the valuation of these interest rate swaps are recorded within the \u2018Finance costs\u2019.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__178": { "value": "9. Net finance cost
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Income | ||
Interest income | 14,804 | 7,089 |
Foreign exchange gains | 2,710 | 1,449 |
Dividend income | 543 | 560 |
Finance income | 18,057 | 9,098 |
Expense | ||
Interest expense and related costs | 187,321 | 194,620 |
Gains(-)/Loss from derivatives | -5,559 | -1,516 |
Interest on leases | 2,449 | 2,095 |
Foreign exchange losses | 1,023 | 1,695 |
Finance cost | 185,235 | 196,894 |
Net finance income/cost (-) | -167,178 | -187,796 |
Interest expenses and related costs decreased by 4% compared to 2023 as as a consequence of the average debt reduction.
In order to be secured from interest rates volatility, Viohalco subsidiaries entered into interest rates swaps contracts to hedge part of their finance costs. The results and the valuation of these interest rate swaps are recorded within the \u2018Finance costs\u2019.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceIncomeExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__179": { "value": "9. Net finance cost
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Income | ||
Interest income | 14,804 | 7,089 |
Foreign exchange gains | 2,710 | 1,449 |
Dividend income | 543 | 560 |
Finance income | 18,057 | 9,098 |
Expense | ||
Interest expense and related costs | 187,321 | 194,620 |
Gains(-)/Loss from derivatives | -5,559 | -1,516 |
Interest on leases | 2,449 | 2,095 |
Foreign exchange losses | 1,023 | 1,695 |
Finance cost | 185,235 | 196,894 |
Net finance income/cost (-) | -167,178 | -187,796 |
Interest expenses and related costs decreased by 4% compared to 2023 as as a consequence of the average debt reduction.
In order to be secured from interest rates volatility, Viohalco subsidiaries entered into interest rates swaps contracts to hedge part of their finance costs. The results and the valuation of these interest rate swaps are recorded within the \u2018Finance costs\u2019.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__180": { "value": "9. Net finance cost
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Income | ||
Interest income | 14,804 | 7,089 |
Foreign exchange gains | 2,710 | 1,449 |
Dividend income | 543 | 560 |
Finance income | 18,057 | 9,098 |
Expense | ||
Interest expense and related costs | 187,321 | 194,620 |
Gains(-)/Loss from derivatives | -5,559 | -1,516 |
Interest on leases | 2,449 | 2,095 |
Foreign exchange losses | 1,023 | 1,695 |
Finance cost | 185,235 | 196,894 |
Net finance income/cost (-) | -167,178 | -187,796 |
Interest expenses and related costs decreased by 4% compared to 2023 as as a consequence of the average debt reduction.
In order to be secured from interest rates volatility, Viohalco subsidiaries entered into interest rates swaps contracts to hedge part of their finance costs. The results and the valuation of these interest rate swaps are recorded within the \u2018Finance costs\u2019.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExpenseExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__181": { "value": "9. Net finance cost
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Income | ||
Interest income | 14,804 | 7,089 |
Foreign exchange gains | 2,710 | 1,449 |
Dividend income | 543 | 560 |
Finance income | 18,057 | 9,098 |
Expense | ||
Interest expense and related costs | 187,321 | 194,620 |
Gains(-)/Loss from derivatives | -5,559 | -1,516 |
Interest on leases | 2,449 | 2,095 |
Foreign exchange losses | 1,023 | 1,695 |
Finance cost | 185,235 | 196,894 |
Net finance income/cost (-) | -167,178 | -187,796 |
Interest expenses and related costs decreased by 4% compared to 2023 as as a consequence of the average debt reduction.
In order to be secured from interest rates volatility, Viohalco subsidiaries entered into interest rates swaps contracts to hedge part of their finance costs. The results and the valuation of these interest rate swaps are recorded within the \u2018Finance costs\u2019.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestExpenseExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__182": { "value": "9. Net finance cost
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Income | ||
Interest income | 14,804 | 7,089 |
Foreign exchange gains | 2,710 | 1,449 |
Dividend income | 543 | 560 |
Finance income | 18,057 | 9,098 |
Expense | ||
Interest expense and related costs | 187,321 | 194,620 |
Gains(-)/Loss from derivatives | -5,559 | -1,516 |
Interest on leases | 2,449 | 2,095 |
Foreign exchange losses | 1,023 | 1,695 |
Finance cost | 185,235 | 196,894 |
Net finance income/cost (-) | -167,178 | -187,796 |
Interest expenses and related costs decreased by 4% compared to 2023 as as a consequence of the average debt reduction.
In order to be secured from interest rates volatility, Viohalco subsidiaries entered into interest rates swaps contracts to hedge part of their finance costs. The results and the valuation of these interest rate swaps are recorded within the \u2018Finance costs\u2019.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInterestIncomeExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__184": { "value": "9. Net finance cost
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Income | ||
Interest income | 14,804 | 7,089 |
Foreign exchange gains | 2,710 | 1,449 |
Dividend income | 543 | 560 |
Finance income | 18,057 | 9,098 |
Expense | ||
Interest expense and related costs | 187,321 | 194,620 |
Gains(-)/Loss from derivatives | -5,559 | -1,516 |
Interest on leases | 2,449 | 2,095 |
Foreign exchange losses | 1,023 | 1,695 |
Finance cost | 185,235 | 196,894 |
Net finance income/cost (-) | -167,178 | -187,796 |
9. Net finance cost
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Income | ||
Interest income | 14,804 | 7,089 |
Foreign exchange gains | 2,710 | 1,449 |
Dividend income | 543 | 560 |
Finance income | 18,057 | 9,098 |
Expense | ||
Interest expense and related costs | 187,321 | 194,620 |
Gains(-)/Loss from derivatives | -5,559 | -1,516 |
Interest on leases | 2,449 | 2,095 |
Foreign exchange losses | 1,023 | 1,695 |
Finance cost | 185,235 | 196,894 |
Net finance income/cost (-) | -167,178 | -187,796 |
A. Reconciliation of carrying amount of associates and joint ventures
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 31,329 | 36,638 |
Share of profit / loss (-) net of tax | -5,012 | -11,284 |
OCI profit (loss) for the period | - | -2 |
Dividends received | -1,285 | -723 |
Effects on movement in exchange rates | -593 | -3,934 |
Share capital increase | 8,675 | 13,400 |
Additions | 1,445 | - |
Impairment | -3,144 | -2,766 |
Balance as at 31 December | 31,416 | 31,329 |
10. Earnings per share
Considering that there are neither share options, nor convertible bonds, basic and diluted earnings per share are identical and have been based on the following profit attributable to the ordinary shareholders and weighted-average numbers of ordinary shares outstanding.
A. Profit/loss (-) attributable to the owners of the company
For the year ended 31 December | ||
Amounts in EUR thousands | 2024 | 2023 |
Profit/loss (-) attributable to the owners of the Company | 161,092 | 48,233 |
B. Weighted-average number of ordinary shares outstanding
In thousands of shares | 2024 | 2023 |
Issued ordinary shares at 1 January | 259,190 | 259,190 |
Effect of shares issued related to the mergers | - | - |
Weighted average number of ordinary shares at 31 December | 259,190 | 259,190 |
The number of equity shares in 2024 remains equal to 2023, as no shares were issued during the year.
C. Earnings per share
The basic and diluted earnings per share are as follows:
Earnings per share (in EUR per share) | 2024 | 2023 |
Basic and diluted | 0.622 | 0.186 |
11. Employee benefits
Amounts in EUR thousands | Note | 2024 | 2023 |
Net defined benefit liability | 30,040 | 27,754 | |
Liability for social security contributions | 27 | 16,243 | 15,774 |
Total employee benefit liabilities | 46,284 | 43,528 | |
Non-current | 30,040 | 27,754 | |
Current | 16,243 | 15,774 |
For details on the related employee benefit expenses, see Note 12.
A. Post-employment plans
The following post-employment plans exist:
Defined contribution plans
All employees of Viohalco companies are insured for their main pension by the respective social insurance organizations as required by the local legislation. Once the contributions have been paid, Viohalco companies have no further payment obligations. The regular contributions constitute net periodic costs for the year in which they are due, and as such are included in employee benefit expenses.
Defined benefit plans
The employees of Viohalco\u2019s companies in some countries, mainly in Greece and Bulgaria, are entitled to receive a lump sum when they retire. This lump sum is determined in accordance with the years of service and the salary at the retirement date. This obligation meets the definition of defined benefit plans and charges the accumulated benefits through profit or loss in each period with a corresponding increase of the retirement liability. Benefits paid to pensioners during each period are charged against this liability. Viohalco\u2019s companies\u2019 liability for personnel benefits as of 31 December 2024 and 2023 is EUR 30,040 thousand and EUR 27,754 thousand respectively. These plans are unfunded.
B. Movement in net defined benefit liability
The following table shows the reconciliation from the opening balance to the closing balances for net defined benefit liability and its components.
Amounts in EUR thousands | 2024 | 2023 |
Balance at 1 January | 27,754 | 24,357 |
Included in profit or loss | ||
Current service cost | 2,749 | 2,280 |
Past service cost | 85 | 624 |
Termination loss | 2,981 | 4,009 |
Interest cost / income (-) | 719 | 726 |
6,534 | 7,639 | |
Included in OCI | ||
Remeasurement loss / gain (-) | ||
Actuarial loss / gain (-) arising from: | ||
-Demographic assumptions | -17 | -54 |
-Financial assumptions | 749 | 563 |
-Experience adjustments | 653 | 1,535 |
1,385 | 2,044 | |
Other | ||
Benefits paid | -5,628 | -6,273 |
Foreign exchange differences | -4 | -13 |
-5,633 | -6,286 | |
Balance at 31 December | 30,040 | 27,754 |
During the financial year 2024, Viohalco and its companies paid EUR 5.6 million (2023: EUR 6.3 million) in benefits in respect of employees who left during the year. An additional cost that arose due to these payments was recognized (termination loss of EUR 3.0 million \u2013 2023: EUR 4.0 million). More specifically, in the cases of dismissal, voluntary withdrawals with benefit payment and retirement, the additional cost is the difference between the benefit paid and the amount recorded in the defined benefit liability for the respective employees.
C. Defined benefit obligation
(a) Actuarial assumptions
The following were the weighted average principal actuarial assumptions at the reporting date:
2024 | 2023 | |
Discount rate | 2.82% | 3.03% |
Price inflation | 1.96% | 1.96% |
Future salary growth | 3.29% | 2.94% |
Plan duration (in years) | 5 | 5 |
Assumptions regarding future mortality have been based on Swiss mortality table EVK2000.
(b) Sensitivity analysis
The sensitivity analysis for each significant actuarial assumption which was reasonably possible, at the end of the reporting period, shows how the defined benefit obligation (DBO) would have been affected by those changes as follows:
2024 | 2023 | |
Sensitivity 1(discount rate plus 0.5%) - % Difference in DBO | -2.46% | -2.12% |
Sensitivity 2(discount rate minus 0.5%) - % Difference in DBO | 2.56% | 2.50% |
Sensitivity 3 (salary growth rate plus 0.5%) - % Difference in DBO | 2.36% | 2.36% |
Sensitivity 4 (salary growth rate minus 0.5%) - % Difference in DBO | -2.32% | -2.25% |
The above sensitivity analysis is based on a change in one assumption while all other assumptions remain constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognized on the statement of financial position. The methods and the formula of the assumptions used for the defined analysis have not changed compared to the previous year.
The expected maturity analysis of undiscounted pension benefits is as follows:
Amounts in EUR thousands | 2024 | 2023 |
Less than a year | 7,752 | 7,138 |
Between 1 and 2 years | 2,416 | 2,332 |
Between 2 and 5 years | 6,394 | 7,651 |
Over 5 years | 18,349 | 18,251 |
Total | 34,912 | 35,371 |
12. Employee benefit expenses
Amounts in EUR thousands | Note | 2024 | 2023 |
Wages and salaries | 406,160 | 368,009 | |
Social security contributions | 74,343 | 67,416 | |
Defined contribution plans | 5,053 | 1,165 | |
Defined benefit plans | 11 | 6,534 | 7,639 |
Other employee benefits | 32,752 | 33,727 | |
Total | 524,842 | 477,956 |
Employee benefits have been allocated as follows: | |||
Cost of goods sold | 8 | 351,633 | 316,474 |
Selling and distribution expenses | 8 | 50,744 | 53,073 |
Administrative expenses | 8 | 114,735 | 104,378 |
Other expenses | 8 | - | 3 |
Capitalised employee benefits in projects under construction | 7,730 | 4,028 | |
Total | 524,842 | 477,956 |
The number of employees, as well as their profile and gender, employed by Viohalco companies is presented in the following tables:
2024 | ||||
\u00a0 | 18 - 30 | 30-50 | 51+ | Total |
Male | 1,076 | 5,369 | 3,119 | 9,564 |
Female | 274 | 1,118 | 498 | 1,890 |
Total | 1,350 | 6,487 | 3,617 | 11,454 |
Office employees & professionals | Workers | Management | Total | |
Number of Employees | 3,206 | 7,234 | 1,014 | 11,454 |
2023 | ||||
\u00a0 | 18 - 30 | 30-50 | 51+ | Total |
Male | 1,072 | 5,262 | 2,820 | 9,154 |
Female | 251 | 1,105 | 445 | 1,801 |
Total | 1,323 | 6,367 | 3,265 | 10,955 |
Office employees & professionals | Workers | Management | Total | |
Number of Employees | 2,902 | 7,045 | 1,008 | 10,955 |
11. Employee benefits
Amounts in EUR thousands | Note | 2024 | 2023 |
Net defined benefit liability | 30,040 | 27,754 | |
Liability for social security contributions | 27 | 16,243 | 15,774 |
Total employee benefit liabilities | 46,284 | 43,528 | |
Non-current | 30,040 | 27,754 | |
Current | 16,243 | 15,774 |
For details on the related employee benefit expenses, see Note 12.
A. Post-employment plans
The following post-employment plans exist:
Defined contribution plans
All employees of Viohalco companies are insured for their main pension by the respective social insurance organizations as required by the local legislation. Once the contributions have been paid, Viohalco companies have no further payment obligations. The regular contributions constitute net periodic costs for the year in which they are due, and as such are included in employee benefit expenses.
Defined benefit plans
The employees of Viohalco\u2019s companies in some countries, mainly in Greece and Bulgaria, are entitled to receive a lump sum when they retire. This lump sum is determined in accordance with the years of service and the salary at the retirement date. This obligation meets the definition of defined benefit plans and charges the accumulated benefits through profit or loss in each period with a corresponding increase of the retirement liability. Benefits paid to pensioners during each period are charged against this liability. Viohalco\u2019s companies\u2019 liability for personnel benefits as of 31 December 2024 and 2023 is EUR 30,040 thousand and EUR 27,754 thousand respectively. These plans are unfunded.
B. Movement in net defined benefit liability
The following table shows the reconciliation from the opening balance to the closing balances for net defined benefit liability and its components.
Amounts in EUR thousands | 2024 | 2023 |
Balance at 1 January | 27,754 | 24,357 |
Included in profit or loss | ||
Current service cost | 2,749 | 2,280 |
Past service cost | 85 | 624 |
Termination loss | 2,981 | 4,009 |
Interest cost / income (-) | 719 | 726 |
6,534 | 7,639 | |
Included in OCI | ||
Remeasurement loss / gain (-) | ||
Actuarial loss / gain (-) arising from: | ||
-Demographic assumptions | -17 | -54 |
-Financial assumptions | 749 | 563 |
-Experience adjustments | 653 | 1,535 |
1,385 | 2,044 | |
Other | ||
Benefits paid | -5,628 | -6,273 |
Foreign exchange differences | -4 | -13 |
-5,633 | -6,286 | |
Balance at 31 December | 30,040 | 27,754 |
During the financial year 2024, Viohalco and its companies paid EUR 5.6 million (2023: EUR 6.3 million) in benefits in respect of employees who left during the year. An additional cost that arose due to these payments was recognized (termination loss of EUR 3.0 million \u2013 2023: EUR 4.0 million). More specifically, in the cases of dismissal, voluntary withdrawals with benefit payment and retirement, the additional cost is the difference between the benefit paid and the amount recorded in the defined benefit liability for the respective employees.
C. Defined benefit obligation
(a) Actuarial assumptions
The following were the weighted average principal actuarial assumptions at the reporting date:
2024 | 2023 | |
Discount rate | 2.82% | 3.03% |
Price inflation | 1.96% | 1.96% |
Future salary growth | 3.29% | 2.94% |
Plan duration (in years) | 5 | 5 |
Assumptions regarding future mortality have been based on Swiss mortality table EVK2000.
(b) Sensitivity analysis
The sensitivity analysis for each significant actuarial assumption which was reasonably possible, at the end of the reporting period, shows how the defined benefit obligation (DBO) would have been affected by those changes as follows:
2024 | 2023 | |
Sensitivity 1(discount rate plus 0.5%) - % Difference in DBO | -2.46% | -2.12% |
Sensitivity 2(discount rate minus 0.5%) - % Difference in DBO | 2.56% | 2.50% |
Sensitivity 3 (salary growth rate plus 0.5%) - % Difference in DBO | 2.36% | 2.36% |
Sensitivity 4 (salary growth rate minus 0.5%) - % Difference in DBO | -2.32% | -2.25% |
The above sensitivity analysis is based on a change in one assumption while all other assumptions remain constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated.
When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the pension liability recognized on the statement of financial position. The methods and the formula of the assumptions used for the defined analysis have not changed compared to the previous year.
The expected maturity analysis of undiscounted pension benefits is as follows:
Amounts in EUR thousands | 2024 | 2023 |
Less than a year | 7,752 | 7,138 |
Between 1 and 2 years | 2,416 | 2,332 |
Between 2 and 5 years | 6,394 | 7,651 |
Over 5 years | 18,349 | 18,251 |
Total | 34,912 | 35,371 |
29. Provisions
Non-current | |||
Amounts in EUR thousands | Pending court rulings | Other provisions | Total |
Balance as at 1 January 2024 | 92 | 1,630 | 1,722 |
Additional provisions of the fiscal year | 8 | - | 8 |
Provisions reversed | -92 | -54 | -146 |
Provisions used | - | -150 | -150 |
Balance as at 31 December 2024 | 8 | 1,426 | 1,434 |
Amounts in EUR thousands | Pending court rulings | Other provisions | Total |
Balance as at 1 January 2023 | 69 | 1,658 | 1,727 |
Additional provisions of the fiscal year | 23 | - | 23 |
Provisions reversed | - | -29 | -29 |
Balance as at 31 December 2023 | 92 | 1,630 | 1,722 |
Current | |||
Amounts in EUR thousands | Pending court rulings | Other provisions | Total |
Balance as at 1 January 2024 | 18,111 | 182 | 18,293 |
Foreign exchange differences | 1,163 | - | 1,163 |
Additional provisions of the fiscal year | 1,458 | 36 | 1,493 |
Provisions reversed | - | -20 | -20 |
Provisions used | -114 | - | -114 |
Balance as at 31 December 2024 | 20,617 | 198 | 20,815 |
Amounts in EUR thousands | Pending court rulings | Other provisions | Total |
Balance as at 1 January 2023 | 15,243 | 162 | 15,405 |
Foreign exchange differences | -518 | - | -518 |
Additional provisions of the fiscal year | 3,481 | - | 3,481 |
Provisions reversed | - | -36 | -36 |
Provisions used | -94 | 56 | -39 |
Balance as at 31 December 2023 | 18,111 | 182 | 18,293 |
During 2022, the US Department of Commerce (DoC) published its final results in the administrative proceedings conducted by the DoC for the period from 19 April 2019 through 30 April 2020 (\u201cPOR\u201d) in connection with an antidumping (\u201cAD\u201d) order on large diameter welded pipe (LDWP) from Greece. As a result, the DoC determined for the POR an antidumping duty rate of 41.04% based on total adverse facts available (AFA) for mandatory respondent Corinth Pipeworks S.A., Cenergy Holdings\u2019 steel pipes segment. Corinth Pipeworks filed an appeal before the U.S. Court of International Trade against the decision of the DoC while continuing to actively work with the DoC in order to reverse the final determination. The one-off charge related to the above-mentioned case amounted to EUR 12.8 million (USD 14 million plus interest) for the year 2021. \u03a4he charges for 2023 and 2024 relate to interest charged on the outstanding amount for the year and is included in the line \u2018Finance costs\u2019.
The number of employees, as well as their profile and gender, employed by Viohalco companies is presented in the following tables:
2024 | ||||
\u00a0 | 18 - 30 | 30-50 | 51+ | Total |
Male | 1,076 | 5,369 | 3,119 | 9,564 |
Female | 274 | 1,118 | 498 | 1,890 |
Total | 1,350 | 6,487 | 3,617 | 11,454 |
Office employees & professionals | Workers | Management | Total | |
Number of Employees | 3,206 | 7,234 | 1,014 | 11,454 |
2023 | ||||
\u00a0 | 18 - 30 | 30-50 | 51+ | Total |
Male | 1,072 | 5,262 | 2,820 | 9,154 |
Female | 251 | 1,105 | 445 | 1,801 |
Total | 1,323 | 6,367 | 3,265 | 10,955 |
Office employees & professionals | Workers | Management | Total | |
Number of Employees | 2,902 | 7,045 | 1,008 | 10,955 |
13. Income tax expense
A. Amounts recognised in profit or loss
Amounts in EUR thousands | 2024 | 2023 |
Current tax | -50,672 | -36,213 |
Deferred tax | -12,160 | 11,404 |
Income tax expense (-) | -62,832 | -24,809 |
B. Amounts recognised in OCI
2024 | |||
Amounts in EUR thousands | Before tax | Related tax | Net of tax |
Amounts recognized in the OCI | |||
Remeasurements of defined benefit liability | -1,385 | 294 | -1,091 |
Remeasurement of redemption liability | -286 | - | -286 |
Equity investments in FVOCI - net change in fair value | -233 | - | -233 |
Foreign currency translation differences | 6,129 | - | 6,129 |
Gain / Loss (-) of changes in fair value of cash flow hedging - effective portion | 664 | -377 | 287 |
Gain / Loss (-) of changes in fair value of cash flow hedging - reclassified to profit or loss | -6,012 | 1,388 | -4,625 |
Total | -1,124 | 1,305 | 182 |
2023 | |||
Amounts in EUR thousands | Before tax | Related tax | Net of tax |
Amounts recognized in the OCI | |||
Remeasurements of defined benefit liability | -2,044 | 394 | -1,650 |
Equity investments in FVOCI - net change in fair value | -151 | - | -151 |
Foreign currency translation differences | -2,067 | - | -2,067 |
Gain / Loss (-) of changes in fair value of cash flow hedging - effective portion | -16,673 | 3,709 | -12,964 |
Gain / Loss (-) of changes in fair value of cash flow hedging - reclassified to profit or loss | -9,493 | 1,868 | -7,625 |
Total | -30,429 | 5,972 | -24,457 |
C. Reconciliation of effective tax rate
Amounts in EUR thousands | 2024 | 2023 | |
Profit/loss (-) before income tax expense | 273,649 | 91,324 | |
Tax calculated at parent company\u2019s statutory income tax rate (2024 & 2023: 25.0%) | -68,412 | -22,831 | |
Effect of different tax rates in jurisdictions that Viohalco companies operate | 13,076 | -147 | |
Tax calculated at weighted average income tax rate (2024: 20.2% & 2023: 25.2%) | -55,336 | -22,978 | |
Adjustments for: | |||
Non-deductible expenses for tax purposes | -11,506 | -4,989 | |
Tax-exempt income | 688 | 6,700 | |
Tax incentives | 7,643 | 1,472 | |
Recognition of previously unrecognised tax losses, thin capitalization allowance or temporary differences of a prior period | 887 | 1,315 | |
Current-year losses for which no deferred tax asset is recognised | -3,263 | -3,072 | |
Tax-exempt reserves recognition | 1,300 | - | |
Withholding tax on international dividends | -21 | -52 | |
Change in tax rate or composition of new tax | - | 478 | |
Pillar II Top-up tax | -183 | - | |
Derecognition of previously recognised deferred tax assets | -1,118 | -2,082 | |
Prior year income tax adjustments | -1,922 | -1,602 | |
Income tax expense reported in the statement of profit or loss (-) at the effective tax rate | 23% | -62,832 | -24,809 |
The corporate income tax rate in Belgium according to the applicable tax legislation is 25%. The profit is taxed at the applicable rate corresponding to the country in which each company is domiciled. According to the Greek law 4799/2021, enacted in May 2021, the corporate income tax rate for legal entities in Greece, where most of Viohalco subsidiaries are located, for the fiscal year 2021 and onwards is set at 22%.
International Tax Reform \u2013 Pillar Two
Viohalco is within the scope of the OECD Pillar Two model rules that has been enacted or substantively enacted in certain jurisdictions in which Viohalco companies have presence. Under Pillar Two legislation, a top-up tax may arise for any difference between their Global Anti-Base Erosion (\u201cGloBE\u201d) effective tax rate per jurisdiction and the 15% minimum rate. The legislation is effective for the financial year beginning 1 January 2024.
Viohalco applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
For the year ended as at 31 December 2024, Viohalco has performed an assessment for all countries in which it has presence of the potential tax expense arising from Pillar Two rules. This assessment has been based on the Constituent Entities\u2019 IFRS financial statements as at 31/12/2024 in order to validate conclusions on eligibility of Constituents Entities for the CBCR Safe Harbour transitional rules.
Based on this assessment, only profits reported in Bulgaria and USA were not eligible for the CBCR Safe Harbour transitional rules, and for such profits the respective Pillar II top up tax liability recognised in 2024, amounts to EUR 183 thousands for the jurisdiction of Bulgaria.
D. Movement in deferred tax balances
2024 | Net balance at 31 December | |||||||||
Amounts in EUR thousands | Net balance at 1 January | Recognised in profit or loss | Recognised in OCI | Foreign exchange differences | Change in tax rate recognised in profit or loss | Change in tax rate recognised in OCI | Other | Net | Deferred tax assets | Deferred tax liabilities |
Property, plant & equipment | -117,235 | -7,971 | - | -386 | - | - | - | -125,592 | 824 | -126,415 |
Right of use asset | -2,127 | -1,045 | - | - | - | - | - | -3,172 | 90 | -3,262 |
Intangible assets | -1,245 | -86 | - | - | - | - | - | -1,331 | 1,239 | -2,570 |
Investment property | -2,491 | - | - | - | - | - | - | -2,490 | 86 | -2,576 |
Other investments | 752 | -1,057 | - | - | - | - | - | -305 | 138 | -443 |
Derivatives | -4,398 | 1,214 | 1,011 | -5 | - | - | - | -2,177 | 789 | -2,966 |
Inventories | 1,198 | -517 | - | - | - | - | - | 681 | 1,836 | -1,155 |
Loans and borrowings | 1,989 | 2,385 | - | 53 | - | - | - | 4,427 | 4,709 | -283 |
Employee benefits | 5,002 | 268 | 294 | - | - | - | - | 5,563 | 5,691 | -128 |
Provisions / Accruals | 6,540 | 3,435 | - | 202 | - | - | - | 10,177 | 10,177 | - |
Contract with customers | -18,944 | 10,403 | - | - | - | - | - | -8,541 | 14,585 | -23,125 |
Contract liabilities | -9 | - | - | - | - | - | - | -9 | - | -9 |
Other items | 2,817 | 145 | - | - | - | - | - | 2,962 | 3,874 | -912 |
Thin capitalisation | 28,563 | -10,485 | - | - | - | - | - | 18,079 | 18,079 | - |
Tax losses carried forward | 22,828 | -8,849 | - | 419 | - | - | - | 14,397 | 14,400 | -2 |
Tax assets/liabilities (-) before set-off | -76,758 | -12,160 | 1,305 | 282 | - | - | - | -87,330 | 76,516 | -163,846 |
Set-off tax | -53,481 | 53,481 | ||||||||
Net tax assets/liabilities (-) | -87,330 | 23,034 | -110,365 | |||||||
2023 | ||||||||||
Net balance at 31 December | ||||||||||
Amounts in EUR thousands | Net balance at 1 January | Recognised in profit or loss | Recognised in OCI | Foreign exchange differences | Change in tax rate recognised in profit or loss | Change in tax rate recognised in OCI | Loss of Control/Disposal of subsidiary | Net | Deferred tax assets | Deferred tax liabilities |
Property, plant & equipment | -112,789 | -5,253 | - | -170 | 34 | - | 944 | -117,235 | 1,023 | -118,258 |
Right of use asset | -480 | 277 | - | - | - | - | -1,924 | -2,127 | 106 | -2,233 |
Intangible assets | -859 | -385 | - | - | - | - | -1 | -1,245 | 1,289 | -2,534 |
Investment property | -2,410 | -81 | - | - | - | - | - | -2,491 | 92 | -2,582 |
Other investments | -917 | 1,669 | - | - | - | - | - | 752 | 832 | -79 |
Derivatives | -10,115 | 139 | 5,584 | -4 | 5 | -6 | - | -4,398 | 160 | -4,558 |
Inventories | 2,419 | -1,222 | - | - | - | - | - | 1,198 | 1,198 | - |
Loans and borrowings | -342 | 1,306 | - | 1 | 44 | - | 980 | 1,989 | 2,607 | -618 |
Employee benefits | 4,267 | 343 | 394 | -2 | - | - | - | 5,002 | 5,135 | -133 |
Provisions / Accruals | 6,278 | 379 | - | -117 | - | - | - | 6,540 | 6,540 | - |
Contract with customers | -17,517 | -2,457 | - | - | - | - | 1,030 | -18,944 | 2,761 | -21,704 |
Contract liabilities | -9 | - | - | - | - | - | - | -9 | - | -9 |
Other items | 1,392 | 2,466 | - | -4 | - | - | -1,037 | 2,817 | 3,813 | -996 |
Thin capitalisation | 23,596 | 4,967 | - | - | - | - | - | 28,563 | 28,563 | - |
Tax losses carried forward | 13,625 | 8,778 | - | 30 | 396 | - | - | 22,828 | 22,830 | -2 |
Tax assets/liabilities (-) before set-off | -93,860 | 10,925 | 5,978 | -266 | 478 | -6 | -7 | -76,758 | 76,949 | -153,707 |
Set-off tax | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -63,670 | 63,670 |
Net tax assets/liabilities (-) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -76,758 | 13,279 | -90,037 |
Deferred tax assets relating to tax losses carried forward are recognised only if it is probable that they can be offset against future taxable profits. At each balance sheet date, Viohalco and its subsidiaries assess whether the realization of future tax benefits is sufficiently probable based on approved business plans. On 31 December 2024, the accumulated tax losses carried forward available for future use amounted to EUR 116.8 million (31 December 2023 EUR 137.1 million). Viohalco companies have recognised cumulatively a deferred tax asset of EUR 14.4 million (31 December 2023: EUR 22.8 million) on tax losses because management considered it probable that future taxable profits would be available against which such losses can be used. EUR 4.1 million relate to Viohalco subsidiaries located in Greece, EUR 10 million relate to Viohalco subsidiaries located in UK and the rest EUR 0.3 million to subsidiaries in other jurisdictions. This deferred tax asset corresponds to losses equal to EUR 57 million (31 December 2023: EUR 88.7 million).
Based on these estimates regarding future taxable profits, deferred tax assets have not been recognised in respect of tax losses carried forward for an amount of EUR 60 million (EUR 48 million in 2023). Out of these, tax losses equal to EUR 12.4 million expire in 2025 and 2026, while the rest expire between 2027 and 2029. According to the provisions of articles 49 and 72 of the Greek Law 4172/2013 concerning thin capitalization, net interest expense is deductible from current year\u2019s tax profits, if it is equal or less than 30% of EBITDA and any excess can be settled with future tax profits without time limitations. Based on the current approved business plans, the balance of the respective tax asset was equal to EUR 18.1 million, as at 31 December 2024 (31 December 2023: EUR 28.6 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__197": { "value": "13. Income tax expense
A. Amounts recognised in profit or loss
Amounts in EUR thousands | 2024 | 2023 |
Current tax | -50,672 | -36,213 |
Deferred tax | -12,160 | 11,404 |
Income tax expense (-) | -62,832 | -24,809 |
B. Amounts recognised in OCI
2024 | |||
Amounts in EUR thousands | Before tax | Related tax | Net of tax |
Amounts recognized in the OCI | |||
Remeasurements of defined benefit liability | -1,385 | 294 | -1,091 |
Remeasurement of redemption liability | -286 | - | -286 |
Equity investments in FVOCI - net change in fair value | -233 | - | -233 |
Foreign currency translation differences | 6,129 | - | 6,129 |
Gain / Loss (-) of changes in fair value of cash flow hedging - effective portion | 664 | -377 | 287 |
Gain / Loss (-) of changes in fair value of cash flow hedging - reclassified to profit or loss | -6,012 | 1,388 | -4,625 |
Total | -1,124 | 1,305 | 182 |
2023 | |||
Amounts in EUR thousands | Before tax | Related tax | Net of tax |
Amounts recognized in the OCI | |||
Remeasurements of defined benefit liability | -2,044 | 394 | -1,650 |
Equity investments in FVOCI - net change in fair value | -151 | - | -151 |
Foreign currency translation differences | -2,067 | - | -2,067 |
Gain / Loss (-) of changes in fair value of cash flow hedging - effective portion | -16,673 | 3,709 | -12,964 |
Gain / Loss (-) of changes in fair value of cash flow hedging - reclassified to profit or loss | -9,493 | 1,868 | -7,625 |
Total | -30,429 | 5,972 | -24,457 |
C. Reconciliation of effective tax rate
Amounts in EUR thousands | 2024 | 2023 | |
Profit/loss (-) before income tax expense | 273,649 | 91,324 | |
Tax calculated at parent company\u2019s statutory income tax rate (2024 & 2023: 25.0%) | -68,412 | -22,831 | |
Effect of different tax rates in jurisdictions that Viohalco companies operate | 13,076 | -147 | |
Tax calculated at weighted average income tax rate (2024: 20.2% & 2023: 25.2%) | -55,336 | -22,978 | |
Adjustments for: | |||
Non-deductible expenses for tax purposes | -11,506 | -4,989 | |
Tax-exempt income | 688 | 6,700 | |
Tax incentives | 7,643 | 1,472 | |
Recognition of previously unrecognised tax losses, thin capitalization allowance or temporary differences of a prior period | 887 | 1,315 | |
Current-year losses for which no deferred tax asset is recognised | -3,263 | -3,072 | |
Tax-exempt reserves recognition | 1,300 | - | |
Withholding tax on international dividends | -21 | -52 | |
Change in tax rate or composition of new tax | - | 478 | |
Pillar II Top-up tax | -183 | - | |
Derecognition of previously recognised deferred tax assets | -1,118 | -2,082 | |
Prior year income tax adjustments | -1,922 | -1,602 | |
Income tax expense reported in the statement of profit or loss (-) at the effective tax rate | 23% | -62,832 | -24,809 |
The corporate income tax rate in Belgium according to the applicable tax legislation is 25%. The profit is taxed at the applicable rate corresponding to the country in which each company is domiciled. According to the Greek law 4799/2021, enacted in May 2021, the corporate income tax rate for legal entities in Greece, where most of Viohalco subsidiaries are located, for the fiscal year 2021 and onwards is set at 22%.
International Tax Reform \u2013 Pillar Two
Viohalco is within the scope of the OECD Pillar Two model rules that has been enacted or substantively enacted in certain jurisdictions in which Viohalco companies have presence. Under Pillar Two legislation, a top-up tax may arise for any difference between their Global Anti-Base Erosion (\u201cGloBE\u201d) effective tax rate per jurisdiction and the 15% minimum rate. The legislation is effective for the financial year beginning 1 January 2024.
Viohalco applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 issued in May 2023.
For the year ended as at 31 December 2024, Viohalco has performed an assessment for all countries in which it has presence of the potential tax expense arising from Pillar Two rules. This assessment has been based on the Constituent Entities\u2019 IFRS financial statements as at 31/12/2024 in order to validate conclusions on eligibility of Constituents Entities for the CBCR Safe Harbour transitional rules.
Based on this assessment, only profits reported in Bulgaria and USA were not eligible for the CBCR Safe Harbour transitional rules, and for such profits the respective Pillar II top up tax liability recognised in 2024, amounts to EUR 183 thousands for the jurisdiction of Bulgaria.
D. Movement in deferred tax balances
2024 | Net balance at 31 December | |||||||||
Amounts in EUR thousands | Net balance at 1 January | Recognised in profit or loss | Recognised in OCI | Foreign exchange differences | Change in tax rate recognised in profit or loss | Change in tax rate recognised in OCI | Other | Net | Deferred tax assets | Deferred tax liabilities |
Property, plant & equipment | -117,235 | -7,971 | - | -386 | - | - | - | -125,592 | 824 | -126,415 |
Right of use asset | -2,127 | -1,045 | - | - | - | - | - | -3,172 | 90 | -3,262 |
Intangible assets | -1,245 | -86 | - | - | - | - | - | -1,331 | 1,239 | -2,570 |
Investment property | -2,491 | - | - | - | - | - | - | -2,490 | 86 | -2,576 |
Other investments | 752 | -1,057 | - | - | - | - | - | -305 | 138 | -443 |
Derivatives | -4,398 | 1,214 | 1,011 | -5 | - | - | - | -2,177 | 789 | -2,966 |
Inventories | 1,198 | -517 | - | - | - | - | - | 681 | 1,836 | -1,155 |
Loans and borrowings | 1,989 | 2,385 | - | 53 | - | - | - | 4,427 | 4,709 | -283 |
Employee benefits | 5,002 | 268 | 294 | - | - | - | - | 5,563 | 5,691 | -128 |
Provisions / Accruals | 6,540 | 3,435 | - | 202 | - | - | - | 10,177 | 10,177 | - |
Contract with customers | -18,944 | 10,403 | - | - | - | - | - | -8,541 | 14,585 | -23,125 |
Contract liabilities | -9 | - | - | - | - | - | - | -9 | - | -9 |
Other items | 2,817 | 145 | - | - | - | - | - | 2,962 | 3,874 | -912 |
Thin capitalisation | 28,563 | -10,485 | - | - | - | - | - | 18,079 | 18,079 | - |
Tax losses carried forward | 22,828 | -8,849 | - | 419 | - | - | - | 14,397 | 14,400 | -2 |
Tax assets/liabilities (-) before set-off | -76,758 | -12,160 | 1,305 | 282 | - | - | - | -87,330 | 76,516 | -163,846 |
Set-off tax | -53,481 | 53,481 | ||||||||
Net tax assets/liabilities (-) | -87,330 | 23,034 | -110,365 | |||||||
2023 | ||||||||||
Net balance at 31 December | ||||||||||
Amounts in EUR thousands | Net balance at 1 January | Recognised in profit or loss | Recognised in OCI | Foreign exchange differences | Change in tax rate recognised in profit or loss | Change in tax rate recognised in OCI | Loss of Control/Disposal of subsidiary | Net | Deferred tax assets | Deferred tax liabilities |
Property, plant & equipment | -112,789 | -5,253 | - | -170 | 34 | - | 944 | -117,235 | 1,023 | -118,258 |
Right of use asset | -480 | 277 | - | - | - | - | -1,924 | -2,127 | 106 | -2,233 |
Intangible assets | -859 | -385 | - | - | - | - | -1 | -1,245 | 1,289 | -2,534 |
Investment property | -2,410 | -81 | - | - | - | - | - | -2,491 | 92 | -2,582 |
Other investments | -917 | 1,669 | - | - | - | - | - | 752 | 832 | -79 |
Derivatives | -10,115 | 139 | 5,584 | -4 | 5 | -6 | - | -4,398 | 160 | -4,558 |
Inventories | 2,419 | -1,222 | - | - | - | - | - | 1,198 | 1,198 | - |
Loans and borrowings | -342 | 1,306 | - | 1 | 44 | - | 980 | 1,989 | 2,607 | -618 |
Employee benefits | 4,267 | 343 | 394 | -2 | - | - | - | 5,002 | 5,135 | -133 |
Provisions / Accruals | 6,278 | 379 | - | -117 | - | - | - | 6,540 | 6,540 | - |
Contract with customers | -17,517 | -2,457 | - | - | - | - | 1,030 | -18,944 | 2,761 | -21,704 |
Contract liabilities | -9 | - | - | - | - | - | - | -9 | - | -9 |
Other items | 1,392 | 2,466 | - | -4 | - | - | -1,037 | 2,817 | 3,813 | -996 |
Thin capitalisation | 23,596 | 4,967 | - | - | - | - | - | 28,563 | 28,563 | - |
Tax losses carried forward | 13,625 | 8,778 | - | 30 | 396 | - | - | 22,828 | 22,830 | -2 |
Tax assets/liabilities (-) before set-off | -93,860 | 10,925 | 5,978 | -266 | 478 | -6 | -7 | -76,758 | 76,949 | -153,707 |
Set-off tax | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -63,670 | 63,670 |
Net tax assets/liabilities (-) | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | -76,758 | 13,279 | -90,037 |
Deferred tax assets relating to tax losses carried forward are recognised only if it is probable that they can be offset against future taxable profits. At each balance sheet date, Viohalco and its subsidiaries assess whether the realization of future tax benefits is sufficiently probable based on approved business plans. On 31 December 2024, the accumulated tax losses carried forward available for future use amounted to EUR 116.8 million (31 December 2023 EUR 137.1 million). Viohalco companies have recognised cumulatively a deferred tax asset of EUR 14.4 million (31 December 2023: EUR 22.8 million) on tax losses because management considered it probable that future taxable profits would be available against which such losses can be used. EUR 4.1 million relate to Viohalco subsidiaries located in Greece, EUR 10 million relate to Viohalco subsidiaries located in UK and the rest EUR 0.3 million to subsidiaries in other jurisdictions. This deferred tax asset corresponds to losses equal to EUR 57 million (31 December 2023: EUR 88.7 million).
Based on these estimates regarding future taxable profits, deferred tax assets have not been recognised in respect of tax losses carried forward for an amount of EUR 60 million (EUR 48 million in 2023). Out of these, tax losses equal to EUR 12.4 million expire in 2025 and 2026, while the rest expire between 2027 and 2029. According to the provisions of articles 49 and 72 of the Greek Law 4172/2013 concerning thin capitalization, net interest expense is deductible from current year\u2019s tax profits, if it is equal or less than 30% of EBITDA and any excess can be settled with future tax profits without time limitations. Based on the current approved business plans, the balance of the respective tax asset was equal to EUR 18.1 million, as at 31 December 2024 (31 December 2023: EUR 28.6 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__202": { "value": "14. Inventories
Amounts in EUR thousands | 2024 | 2023 |
Merchandise | 28,852 | 34,291 |
Finished goods | 448,711 | 437,892 |
Semi-finished goods | 411,848 | 341,294 |
By-products & scrap | 109,124 | 104,938 |
Work in progress | 16,566 | 14,008 |
Raw and auxiliary materials, consumables and packaging materials | 747,489 | 678,045 |
Total | 1,762,590 | 1,610,467 |
The amount of inventories recognised as expense during 2024 and included in \u2019Cost of sales\u2018 was EUR 4.5 billion (2023: EUR 4.4 billion).
Inventories with a carrying amount of EUR 238 million are pledged as security for borrowings received by Viohalco\u2019s companies (See Note 26). No significant inventory adjustments to NRV were performed during 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInventoriesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__203-1": { "value": "Inventories with a carrying amount of EUR 238 million are pledged as security for borrowings received by Viohalco\u2019s companies (See Note 26). No significant inventory adjustments to NRV were performed during 2024.B. Security
Property, plant & equipment with a carrying amount of EUR 1,386 million are mortgaged as security for borrowings received by Viohalco\u2019s companies (see Note 26).
Property, plant and equipment and inventories of some subsidiaries carry mortgages and liens for a total amount of EUR 1.624 million, as collaterals for long term loans and syndicated loans.In 2024, the impairment loss recognized concerned mainly copper segment while amounts that have been impaired mainly in other segment were written off. On the contrary, a reversal of impairment loss was recorded, as a result of the improvement of the expected loss rates of major clients in the aluminium and cables segments.
The following collateral exists for securing non-insured receivables from customers and contract assets:
\u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amounts in EUR thousands | \u00a0 | 2024 | 2023 |
Cash collateral | 181 | 530 | |
Letter of credit | 17,179 | 18,302 | |
Collateral on property | 1,850 | 1,850 | |
Payables which can be offset by receivables | 6,292 | 5,832 | |
Other | 2,262 | 2,987 | |
Total | \u00a0 | 27,763 | 29,501 |
15. Trade and other receivables
Amounts in EUR thousands | Note | 2024 | 2023 |
Current assets | \u00a0 | \u00a0 | |
Trade receivables | 397,405 | 487,434 | |
Less: Impairment losses | -60,521 | -57,246 | |
Net trade receivables | 336,884 | 430,188 | |
Advance payments | 10,964\u00a0 | 12,058 | |
Cheques and notes receivables & cheques overdue | 35,539 | 39,836 | |
Receivables from related parties | 37 | 49,746 | 61,149 |
VAT and other tax receivables | 62,951 | 45,947 | |
Receivables from dividends of equity-accounting investees and other investments | 37 | 543 | 300 |
Other debtors | 97,091 | 141,446 | |
Less: Impairment losses | -11,863 | -11,863 | |
Net other receivables | 244,970 | 288,872 | |
Total current assets | 581,854 | 719,061 | |
Non-current assets | |||
Non-current receivables from related parties | 37 | 14,086 | 4,500 |
Less: Impairment losses | 37 | -4,544 | -1,900 |
Other non-current receivables | 19,887 | 27,007 | |
Total non-current assets | 29,429 | 29,607 | |
Total receivables | 611,283 | 748,668 |
Viohalco and its companies have not concentrated their credit risk in relation to receivables from customers, since they have
a wide range number of customers.
A. Transfer of trade receivables
The carrying amount of receivables includes amounts that are subject to factoring arrangements. Viohalco and its subsidiaries, enter into factoring agreements (with recourse) to sell trade receivables for cash proceeds. These trade receivables are not being derecognised from the statement of financial position, because substantially all the risks and rewards are still retained by Viohalco - primarily credit risk. The amount received on transfer by the factor is recognised as a secured bank loan.
The following table presents the carrying amount of trade receivables at the year-end that have been transferred, but have not been derecognised and the associated liabilities.
Amounts in EUR thousands | 2024 | 2023 |
Carrying amount of trade receivables transferred to banks | 55,771 | 51,460 |
Carrying amount of associated liabilities | 47,093 | 35,100 |
The fair value of trade receivables transferred approximates their carrying amount.
As at 31 December 2024 and 2023, Viohalco companies had not used the total amount of credit line provided by the factoring companies.
Related loans are included in the line \u2019Secured bank loans\u2018 in Note 26 \u2019Loans and Borrowings\u2019.
B. Credit and market risks and impairment losses
During 2010, the subsidiary Corinth Pipeworks SA initiated in Greece and Dubai legal actions against a former customer in the Middle-East regarding the recovery of an overdue receivable of USD 24.8 million (EUR 23.3 million on 31 December 2024), plus legal interest.
Following a series of court proceedings, the Dubai Court of Cassation issued its final judgment, during 2017, and ruled to reject any counterclaim of the former customer and to confirm the amount due to Corinth Pipeworks.
In order to recover this long overdue balance, Corinth Pipeworks has initiated the enforcement procedures against the assets of the former customer that are located within any of the countries, where the Court of Cassation judgment issued against the former customer is enforceable (i.e. UAE and various other countries in the Middle East). There were no other substantial developments during 2024.
Corinth Pipeworks had recorded in the past an impairment loss for the whole outstanding amount, i.e. USD 24.8 million. However, the subsidiary will continue any and all actions required to collect the full amount of that receivable.
Information about Viohalco companies\u2019 exposure to credit and market risks, and impairment losses for trade and other receivables is included in Note 30.
", "dimensions": { "concept": "ifrs-full:DisclosureOfTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__205-1": { "value": "15. Trade and other receivables
Amounts in EUR thousands | Note | 2024 | 2023 |
Current assets | \u00a0 | \u00a0 | |
Trade receivables | 397,405 | 487,434 | |
Less: Impairment losses | -60,521 | -57,246 | |
Net trade receivables | 336,884 | 430,188 | |
Advance payments | 10,964\u00a0 | 12,058 | |
Cheques and notes receivables & cheques overdue | 35,539 | 39,836 | |
Receivables from related parties | 37 | 49,746 | 61,149 |
VAT and other tax receivables | 62,951 | 45,947 | |
Receivables from dividends of equity-accounting investees and other investments | 37 | 543 | 300 |
Other debtors | 97,091 | 141,446 | |
Less: Impairment losses | -11,863 | -11,863 | |
Net other receivables | 244,970 | 288,872 | |
Total current assets | 581,854 | 719,061 | |
Non-current assets | |||
Non-current receivables from related parties | 37 | 14,086 | 4,500 |
Less: Impairment losses | 37 | -4,544 | -1,900 |
Other non-current receivables | 19,887 | 27,007 | |
Total non-current assets | 29,429 | 29,607 | |
Total receivables | 611,283 | 748,668 |
Viohalco and its companies have not concentrated their credit risk in relation to receivables from customers, since they have
a wide range number of customers.
A. Transfer of trade receivables
The carrying amount of receivables includes amounts that are subject to factoring arrangements. Viohalco and its subsidiaries, enter into factoring agreements (with recourse) to sell trade receivables for cash proceeds. These trade receivables are not being derecognised from the statement of financial position, because substantially all the risks and rewards are still retained by Viohalco - primarily credit risk. The amount received on transfer by the factor is recognised as a secured bank loan.
The following table presents the carrying amount of trade receivables at the year-end that have been transferred, but have not been derecognised and the associated liabilities.
Amounts in EUR thousands | 2024 | 2023 |
Carrying amount of trade receivables transferred to banks | 55,771 | 51,460 |
Carrying amount of associated liabilities | 47,093 | 35,100 |
The fair value of trade receivables transferred approximates their carrying amount.
As at 31 December 2024 and 2023, Viohalco companies had not used the total amount of credit line provided by the factoring companies.
Related loans are included in the line \u2019Secured bank loans\u2018 in Note 26 \u2019Loans and Borrowings\u2019.
B. Credit and market risks and impairment losses
During 2010, the subsidiary Corinth Pipeworks SA initiated in Greece and Dubai legal actions against a former customer in the Middle-East regarding the recovery of an overdue receivable of USD 24.8 million (EUR 23.3 million on 31 December 2024), plus legal interest.
Following a series of court proceedings, the Dubai Court of Cassation issued its final judgment, during 2017, and ruled to reject any counterclaim of the former customer and to confirm the amount due to Corinth Pipeworks.
In order to recover this long overdue balance, Corinth Pipeworks has initiated the enforcement procedures against the assets of the former customer that are located within any of the countries, where the Court of Cassation judgment issued against the former customer is enforceable (i.e. UAE and various other countries in the Middle East). There were no other substantial developments during 2024.
Corinth Pipeworks had recorded in the past an impairment loss for the whole outstanding amount, i.e. USD 24.8 million. However, the subsidiary will continue any and all actions required to collect the full amount of that receivable.
Information about Viohalco companies\u2019 exposure to credit and market risks, and impairment losses for trade and other receivables is included in Note 30.
16. Cash and cash equivalents
Amounts in EUR thousands | 2024 | 2023 |
Cash in hand and at banks | 285 | 307 |
Demand and short-term bank deposits | 696,434 | 394,708 |
Total | 696,720 | 395,015 |
The share capital increase of Viohalco subsidiary Cenergy Holdings in October 2024, resulted in an increased cash position as of 31 December 2024.
The majority of available funds as of 31 December 2024 are placed with short-term bank term deposits and are available for use. Demand and short-term deposits as of 31 December 2024 are held with financial institutions, are readily convertible (even before agreed maturity date) to known amounts of cash, and are subject to an insignificant risk of changes in value.
Viohalco and its subsidiaries have the right to proceed with early withdrawal of the time deposit prior to agreed maturity date. Any breakage cost related to early termination is linked only to the anticipated interest income that was about to be received and does not affect the time deposit principal amount.
21. Other investments
Viohalco designates the investments shown below as equity securities at FVOCI, as they represent investments that Viohalco intends to hold for the long term strategic purposes.
The movement of equity securities, as well as their analysis, is presented below:
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 33,686 | 8,405 |
Additions | 277 | 28,904 |
Disposals | -2,226 | -134 |
Impairment loss | - | -54 |
Impairment loss reversal | - | 2 |
Change in fair value through profit or loss | 7,462 | -3,266 |
Change in fair value through OCI | -233 | -151 |
Other changes | - | -20 |
Balance as at 31 December | 38,966 | 33,686 |
Amounts in EUR thousands | 2024 | 2023 |
Listed securities | ||
-Greek equity instruments | 283 | 2,414 |
-International equity instruments | 2,972 | 3,205 |
Unlisted securities | ||
-Greek equity instruments | 34,082 | 26,660 |
-International equity instruments | 849 | 849 |
-Mutual funds | 780 | 557 |
\u00a0Total | 38,966 | 33,686 |
The investments for which the fair value cannot be estimated were valued at cost. For the calculation of the fair value please see note 30 Financial assets and risk management. The fair value is being recorded through OCI statement (FVTOCI).
On April, 7th,2023, the merger by absorption of Etem Commercial SA, subsidiary of ElvalHalcor, by the company Cosmos Aluminium SA has been approved. As a result of the completion of the transaction, ElvalHalcor holds a minority stake of 15% in the share capital of Cosmos Aluminium SA and classified this investment to \u201cOther investments\u201d.
The investment in Cosmos Aluminium SA amounted EUR 30.5 million at year end, as it has been revalued by EUR 7.5 million, and the respective revaluation net gain has been included in the consolidated statement of profit and loss and measured in the fair value through profit and loss.
Additionally, based on the purchase agreement, the shareholders of ElvalHalcor granted Cosmos Aluminium SA with a put option to purchase the remaining outstanding capital stock of Cosmos Aluminium SA. In addition, Cosmos Aluminium SA granted ELVALHALCOR with a put option to sale the remaining outstanding capital stock of Cosmos Aluminium SA. The calculation of the purchase price prescribed in the call and put option is based on a predetermined formula based on the EBITDA of Cosmos Aluminium SA on the strike date. The exercise period for both options commenced in 2028 and their term is for six months. Upon the exercise of the aforementioned options, the shareholders of Cosmos Aluminium SA will own 100% of outstanding capital stock of Cosmos Aluminium SA. These expire in case that the shareholders do not exercise them during the exercise period. These options are recognized in the consolidated and separate statement of financial position in their fair value and were included in the carrying amount of the investment in Cosmos Aluminium SA. The recognized loss arises from their measurement in the fair value recorded in the consolidated statement of profit and loss into \u201cOther expense\u201d.
The fair value of the put and call options was based on a widely acceptable valuation model methodology considering the below:
\u2022 expected turnover & EBITDA margins of Cosmos Aluminium SA;
\u2022 risk free rate;
\u2022 duration period;
\u2022 volatility, defined as the range of values for all inputs used in the valuation model.
23. Derivatives
The following table sets out the carrying amount of derivatives:
Amounts in EUR thousands | 2024 | 2023 |
Non-current assets | \u00a0 | \u00a0 |
Interest rate swap contracts | 4,543 | 6,578 |
Forwards | - | 11 |
Electricity Swaps | - | 1,115 |
Commodity Swaps | 499 | - |
Future contracts | - | 122 |
Options | - | 730 |
Total | 5,042 | 8,557 |
Current assets | ||
Interest rate swap contracts | 3,060 | 6,029 |
Forwards | 1,552 | 8,013 |
Future contracts | 4,429 | 4,963 |
Commodity Swaps | 2,307 | 1,347 |
Total | 11,348 | 20,352 |
Non-current liabilities | ||
Interest rate swap contracts | 450 | 1,425 |
Future contracts | - | 1 |
Commodity Swaps | - | 3,598 |
Total | 450 | 5,023 |
Current liabilities | ||
Forwards | 6,212 | 794 |
Future contracts | 2,258 | 316 |
Commodity Swaps | - | 2,996 |
Total | 8,469 | 4,107 |
Variable rate loans and borrowings expose Viohalco companies to a rate volatility risk (cash flow risk). Viohalco subsidiaries entered into interest rates swaps contracts in order to be hedged by interest rate fluctuations, by transforming the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Hedge accounting
Viohalco\u2019s companies hold derivative financial instruments for cash flow and fair value hedges.
The abovementioned derivative financial instruments cover risks from:
Changes in the prices of metals;
Fluctuations of foreign exchange rates;
Changes in loan interest rates;
Fluctuations of energy.
The maturity and the nominal value of derivatives held by Viohalco\u2019s companies match the maturity and nominal value of the underlying assets / liabilities (hedged items).
Derivatives held by Viohalco\u2019s companies concern mainly:
Future contracts to hedge the risk from the change of the price of metals listed in LME (London Metal Exchange) and used in production of Viohalco\u2019s companies (i.e. mainly copper, aluminium and zinc). Such hedges are designated as cash flow hedges.
FX Forward and FX swaps to hedge the risk from the change in exchange rate of US Dollar and British Pound (i.e. currencies to which Viohalco\u2019s companies are mainly exposed). Such hedges are either designated as fair value or cash flow hedges depending on the item hedged. FX Forwards and FX swaps when used for hedging FX risk on outstanding receivables and suppliers denominated in foreign currency these instruments are designated under fair value hedging. FX forwards when used for hedging FX risk on the forecasted sales of goods or purchase of materials executed in foreign currency FX forward is hedging instruments designated under the cash flow method.
Variable rate loans and borrowings expose Viohalco companies to an interest rate volatility risk (cash flow risk). In order to hedge it, interest rate swaps are used to effectively transform the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Derivatives are recognised when Viohalco\u2019s companies enter into the transaction in order either to hedge the fair value of receivables, liabilities or commitments (fair value hedges) or highly probable transactions (cash flow hedges).
The change in fair value recognized in equity under cash flow hedging as at 31 December 2024 will be recycled to the consolidated statement of profit or loss during the next years, as some of the hedged events are expected to occur (the forecasted transactions will take place or the hedged items will affect profit or loss statement) within 2025 and some others at a later stage.
Viohalco companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively) the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined. The table below provides the results of the effectiveness test:
On 31 December 2024 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -468 | - | - |
Foreign exchange forwards | -6,454 | -2,733 | - |
Future contracts | 2,914 | -844 | -5 |
Electricity swaps | -1,115 | - | - |
Commodity swaps | 5,787 | -50 | - |
Total | 664 | -3,627 | -5 |
On 31 December 2023 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -5,754 | -\u00a0 | -\u00a0 |
Foreign exchange forwards | 7 | -\u00a0 | -\u00a0 |
Forward foreign exchange contracts | 4,997 | 806 | -\u00a0 |
Future contracts | 4,341 | 214 | 337 |
Electricity swaps | 1,115 | -\u00a0 | -\u00a0 |
Commodity swaps | -21,379 | \u00a0- | -\u00a0 |
Total | -16,673 | 1,020 | 337 |
Viohalco companies\u2019 results from the hedging activities recorded in the statement of profit or loss are presented for metal future contracts,foreign exchange contracts and the energy contracts in the \u2019Revenue\u2018 and the \u2019Cost of sales\u2018 while for interest rate swaps in the \u2019Finance income/ expenses\u2019. The amounts recognized in the consolidated statement of profit or loss are the following:
Amounts in EUR thousands | 2024 | 2023 |
Gain / loss (-) on future contracts | 16,978 | -733 |
Gain / loss (-) on FX forward contracts | -12,607 | 277 |
Gain / loss (-) on interest rate swap contracts | 2,756 | 3,170 |
Gain / loss (-) on commodity swap contracts | -1,104 | -8,561 |
\u00a0 | 6,023 | -5,848 |
Profit or loss related to derivatives used for cash flow hedging were recognized in other comprehensive income (Hedging reserve) as at 31 December 2024 and it will be recycled to profit or loss during the next financial years.
26. Loans and borrowings
A. Overview
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Non-current liabilities | ||
Secured bank loans | 121,156 | 153,749 |
Unsecured bank loans | 113,576 | 138,706 |
Secured bond issues | 499,259 | 561,646 |
Unsecured bond issues | 580,682 | 588,037 |
Loans and borrowings \u2013 Long term | 1,314,673 | 1,442,138 |
Lease Liabilities \u2013 Long term | 40,358 | 35,382 |
Total Long-term debt | 1,355,031 | 1,477,520 |
Current liabilities | ||
Secured bank loans | 135,346 | 145,032 |
Unsecured bank loans | 488,917 | 403,126 |
Current portion of secured bank loans | 49,454 | 36,981 |
Current portion of unsecured bank loans | 26,084 | 20,098 |
Current portion of secured bond issues | 62,115 | 54,903 |
Current portion of unsecured bond issues | 81,545 | 119,157 |
Loans and borrowings \u2013 Short term | 843,462 | 779,297 |
Lease Liabilities \u2013 Short term | 11,086 | 11,237 |
Total Short term debt | 854,547 | 790,534 |
Total loans and borrowings | 2,209,578 | 2,268,054 |
Information about the Viohalco companies\u2019 exposure to interest rate, foreign currency and liquidity risk is included in Note 30.
The maturities of non-current loans are as follows:
Amounts in EUR thousands | 2024 | 2023 |
Between 1 and 2 years | 219,675 | 218,530 |
Between 2 and 5 years | 835,939 | 840,227 |
Over 5 years | 299,418 | 418,763 |
Total | 1,355,031 | 1,477,520 |
The effective weighted average interest rates of the main categories of loans and borrowings at the reporting date are as follows:
2024 | Carrying amount | Interest rate |
Bank loans (non-current)-EUR | 309,360 | 4.25% |
Bank loans (current)-EUR | 582,077 | 5.31% |
Bank loans (current)-USD | 4,816 | 8.13% |
Bank loans (current)-GBP | 31,018 | 8.42% |
Bond issues-EUR | 1,223,601 | 3.82% |
2023 | Carrying amount | Interest rate |
Bank loans (non-current)-EUR | 347,005 | 4.84% |
Bank loans (current)-EUR | 506,610 | 6.05% |
Bank loans (current)-USD | 11,224 | 7.54% |
Bank loans (current)-GBP | 24,353 | 8.11% |
Bond issues-EUR | 1,323,743 | 5.07% |
The majority of Viohalco companies\u2019 loans are Euro denominated.
During 2024, Viohalco subsidiaries obtained new bank loans amounting to EUR 356 million and repaid bank loans of EUR 417 million maturing within the year. The new loans were mainly bond loans and drawdowns from existing revolving credit facilities for project financing, or new loans with similar terms and conditions.
More specifically, during 2024 the main events relating to Viohalco companies\u2019 financing are the following:
Cables segment
Refinancing of two \u2018green\u2019 bond loans of total amount EUR 40 million received by Hellenic Cables & Fulgor in 2021 in compliance with ESG financial principles with an initial 2-year term, which were extended in December 2023. The new financing agreement concerns the same amount, i.e. EUR 40 million and provides for a 2-year term started during the first half of 2024. This financing agreement support working capital needs for the design, production, installation and operation of submarine and land cable systems in projects related to energy transmission from renewable energy sources and the electrical interconnection of islands;
A 5-year loan facility received by Hellenic Cables from a major Greek bank of EUR 70.6 million, out of which an amount of EUR 42.4 million was drawn during H1 2024. This loan facility finances the investment program of Hellenic Cables including new production lines and new equipment in Thiva plant and investments in the Eleonas plant;
A 3-year bond loan of EUR 20.2 million from a major Greek bank, which was drawn in full in September 2024 by Fulgor. The main purpose of this bond loan was to finance the acquisition of machinery, mainly for new products development
Steel Pipes segment
A 5-year bond loan of EUR 15.0 million from a major Greek bank, which was drawn in full in September 2024 by Corinth Pipeworks. The main purpose of this bond loan was to refinance three bond loans of EUR 12.3 million in aggregate, as well as for general business needs.
No other significant events, related with the financing of subsidiaries occurred during the period.
Short term facilities are predominately revolving credit facilities and factoring with recourse for funding working capital needs and project financing facilities for specific ongoing projects. Viohalco subsidiaries have never in the past experienced any issues in financing their activities, renewing their working capital lines or refinancing long-term loans. Management expects that any mandatory repayments of banking loans will be made from operating cash flows or from other unutilized committed credit facilities.
Under the terms of the loan agreements, certain Viohalco subsidiaries must comply with conditions (including financial covenants) and such compliance is tested on an annual basis for the majority of the loans. Management has considered the measures that need to be taken to mitigate the risk relating to potential breaches and expects that in the event that these covenants are breached, waivers will be granted, which have been provided in the past when requested.
The average interest rate of the outstanding bank loans as at 31 December 2024 was 4.4% (5.3% as at 31 December 2023).
Property, plant and equipment and inventories of some subsidiaries carry mortgages and liens for a total amount of EUR 1.624 million, as collaterals for long term loans and syndicated loans. In addition, for certain Viohalco companies\u2019 loans, there are change of control clauses that provide lenders early redemption rights. The majority of Viohalco companies\u2019 loans are Euro denominated.
B. Reconciliation of movements of liabilities to cash flows from financing activities
Amounts in EUR thousands | Loans and Borrowings | Leases | Total |
Balance at 1 January 2024 | 2,221,434 | 46,620 | 2,268,054 |
Changes from financing cash flows | |||
Proceeds from loans and borrowings | 355,776 | - | 355,776 |
Repayment of borrowings & lease liabilities | -416,996 | -12,439 | -429,434 |
Total changes from financing cash flows | -61,220 | -12,439 | -73,659 |
Other changes | |||
New leases | - | 18,397 | 18,397 |
Interest expense | 122,136 | 2,449 | 124,586 |
Interest paid* | -124,905 | -2,449 | -127,353 |
Capitalised borrowing costs | 6,014 | - | 6,014 |
Terminations/Modifications | -7,482 | -1,153 | -8,635 |
Effect of changes in foreign exchange rate | 2,156 | 18 | 2,175 |
Total other changes | -2,080 | 17,262 | 15,183 |
Balance at 31 December 2024 | 2,158,135 | 51,444 | 2,209,579 |
Amounts in EUR thousands | Loans and Borrowings | Leases | Total |
Balance at 1 January 2023 | 2,429,465 | 40,380 | 2,469,845 |
Changes from financing cash flows | |||
Proceeds from loans and borrowings | 288,764 | - | 288,764 |
Repayment of borrowings & lease liabilities | -507,858 | -14,441 | -522,300 |
Total changes from financing cash flows | -219,095 | -14,441 | -233,536 |
Other changes | |||
New leases | - | 22,687 | 22,687 |
Interest expense | 137,498 | 2,095 | 139,593 |
Interest paid* | -132,223 | -2,030 | -134,253 |
Capitalised borrowing costs | 4,440 | - | 4,440 |
Terminations/Modifications | 1 | -1,228 | -1,227 |
Loss of Control/Disposal of subsidiary | - | -843 | -843 |
Effect of changes in foreign exchange rate | 1,348 | 2 | 1,350 |
Total other changes | 11,064 | 20,681 | 31,745 |
Balance at 31 December 2023 | 2,221,434 | 46,620 | 2,268,054 |
*Interest paid reported in Cash Flow Statement, includes bank charges and other finance costs.
27. Trade and other payables
Amounts in EUR thousands | Note | 2024 | 2023 |
Suppliers | 872,329 | 745,347 | |
Notes payable | 422,443 | 272,883 | |
Social security funds | 11 | 16,243 | 15,774 |
Amounts due to related parties | 37 | 4,289 | 4,592 |
Sundry creditors | 25,351 | 19,248 | |
Accrued expenses | 161,245 | 110,481 | |
Taxes-duties | 34,543 | 42,263 | |
Total | 1,536,443 | 1,210,588 | |
Non-current balance of trade and other payables | 26,712 | 15,896 | |
Current balance of trade and other payables | 1,509,732 | 1,194,692 | |
Balance as at 31 December | 1,536,443 | 1,210,588 |
\u2018Notes payables\u2019 in the table above concerns structured payable arrangements related to purchases of primary raw materials, such as copper, steel etc. Supplier finance arrangements are characterised by one or more finance providers offering to pay amounts that an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, when suppliers are paid. These arrangements provide the entity with extended payment terms, or the entity\u2019s suppliers with early payment terms, compared to the related invoice payment due date. Viohalco companies have entered into supplier finance arrangements with finance providers; under such arrangements, the finance providers acquire the rights to selected trade receivables from the suppliers, while the terms and conditions of the arrangement are unchanged from the trade payables from this supplier, other than the due date has been extended and the acquired payables are no longer able to be offset against credit notes received from the suppliers.
Range of payment due dates | 2024 |
Liabilities under supplier finance arrangement | 90-270 days |
Comparable trade payables that are not part of the supplier finance arrangement (same line of business) | 0-120 days |
Amounts in EUR thousand | |
Carrying amount of liabilities under supplier finance arrangement | |
Liabilities under supplier finance arrangement | 422,069 |
of which the supplier has received payment from the finance provider | 421,064 |
30. Financial instruments
A. Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including the levels in the fair value hierarchy.
31 December 2024 | |||||
Amounts in EUR thousands | Carrying amount | First Level | Second Level | Third Level | Total |
Other investments | 38,966 | 3,214 | 2 | 35,751 | 38,966 |
Derivative financial assets | 16,390 | 4,429 | 11,961 | - | 16,390 |
\u00a0 | 55,356 | 7,642 | 11,963 | 35,751 | 55,356 |
Derivative financial liabilities | -8,919 | -2,258 | -6,662 | - | -8,919 |
\u00a0 | 46,437 | 5,385 | 5,302 | 35,751 | 46,437 |
31 December 2023 | |||||
Amounts in EUR thousands | Carrying amount | First Level | Second Level | Third Level | Total |
Other investments | 33,686 | 5,617 | 2 | 28,067 | 33,686 |
Derivative financial assets | 28,909 | 5,086 | 22,709 | 1,115 | 28,909 |
\u00a0 | 62,595 | 10,703 | 22,711 | 29,181 | 62,595 |
Derivative financial liabilities | -9,130 | -317 | -8,813 | - | -9,130 |
\u00a0 | 53,465 | 10,386 | 13,898 | 29,181 | 53,465 |
The various levels are as follows:
Level 1: Quoted prices (unadjusted) in an active market for identical assets and liabilities;
Level 2: Inputs that are observable either directly or indirectly;
Level 3: Unobservable inputs for assets and liabilities.
The fair value of the following financial assets and liabilities measured at amortised cost approximate their carrying amount:
Trade and other receivables;
Cash and cash equivalents;
Trade and other payables;
Loans and borrowings;
Lease liabilities.
Specifically, the carrying amount of loans and borrowings is considered as a good approximation of their fair value as 75% of consolidated Loans and borrowings concern floating-rate debt, which are a very good approximation of current market rates.
The following table shows reconciliation between opening and closing balances for Level 3 financial assets:
Amounts in EUR thousands | |
Balance as at 1 January 2024 | 28,067 |
Additions | 277 |
Disposals | -55 |
Fair value through PnL | 7,462 |
Balance as at 31 December 2024 | 35,751 |
Balance as at 1 January 2023 | 4,806 |
Additions | 26,922 |
Fair value through PnL | -3,642 |
Impairment loss (-)/ Reversal of impairment loss | -20 |
Balance as at 31 December 2023 | 28,067 |
\u0392. Measurement of fair values
(a) Valuation techniques and significant unobservable inputs
The fair values of financial assets that are traded in active markets (stock markets e.g. derivatives, shares, bonds, mutual funds) are set according to the published prices that are valid on the reporting date.
The fair values of financial assets that are not traded in active markets are set through the use of valuation techniques and standards that are based on market data on the reporting date.
The fair values of financial liabilities, for the purpose of being recorded in financial statements, are estimated based on the present value of the future cash flows that arise from specific contracts using the current interest rate that is available for Viohalco and its companies for the use of similar financial-credit means.
Inputs that do not meet the respective criteria and cannot be classified in Level 1 but are observable, either directly or indirectly, fall under Level 2. Over-the-counter derivative financial instruments based on prices obtained from brokers are classified in this level.
The financial assets, such as unlisted shares that are not traded in an active market whose measurement is based on the Viohalco\u2019s companies\u2019 forecasts for the issuer\u2019s future profitability are classified under Level 3.
The following table shows the valuation techniques used in measuring fair values, as well as the significant unobservable inputs used:
Type | Valuation technique | Significant unobservable inputs | Inter-relationship between key unobservable inputs and fair value measurement |
Derivatives | Market value: Price as traded in active market Market comparison technique: The fair values are based on broker quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions in similar instruments | Not applicable Broker quotes | Not applicable Not applicable |
Equity securities traded in active markets | Market value: Price as traded in active market | Not applicable | Not applicable |
Equity securities not traded in active markets | Discounted cash flows: The fair value of shares not traded in active markets is derived based on the estimates of Viohalco and its subsidiaries for the future profitability of the issuer, taking into account the expected growth rate of operations and estimated discount rates. | -\u00a0\u00a0 Risk-free rate: 2.49% (EUR), 4.57% (GBP)- Equity risk premium: 3.94% -\u00a0 Expected tax expense rate: Depending on the country of incorporation of the investee. - WACC for the most significant investment: 7-10% | The estimated fair value would increase (decrease) if: \u2022 the estimated risk-free rate, market risk premium and WACC were lower (higher) \u2022 the estimated cash flows were higher (lower) \u2022 the expected income tax rate was lower (higher) |
(b) Transfers between Levels 1 and 2
There were no transfers from Level 2 to Level 1 or from Level 1 to Level 2 in 2024 or in 2023.
C. Financial risk management
Viohalco and its companies are exposed to credit, liquidity and market risk due to the use of financial instruments. This Note sets forth information on their exposure to each one of the above risks, the policies and procedures applied to risk measurement. More quantitative particulars on these disclosures are included throughout of the Consolidated Financial Statements.
The risk management policies are applied to identify and analyze the risks facing Viohalco and its companies, set risk-taking limits and apply relevant control systems.Risk management procedures are reviewed regularly and changes are implemented if the need arise.
The implementation of risk management policies and procedures is monitored by the Internal Audit function, which performs ordinary and extraordinary audits relating to the implementation of procedures, whereas the results of such audits are notified to the Board of Directors.
C.1. Credit risk
Credit risk is the risk of the financial loss to Viohalco and its companies, if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the companies\u2019 receivables from customers, contract assets and bank deposits.
The carrying amount of financial assets represents the maximum credit exposure.
Amounts in EUR thousands | Note | 2024 | 2023 |
Trade & other receivables | 15 | 611,283 | 748,668 |
Contract assets | 7 | 256,322 | 236,552 |
Less: | |||
Other down payments | 15 | -10,964 | -12,058 |
Tax assets | 15 | -62,951 | -45,947 |
Other non-financial assets | -50,072 | -101,442 | |
743,619 | 825,773 | ||
Other investments | 21 | 38,966 | 33,686 |
Cash and cash equivalents | 16 | 696,720 | 395,015 |
Derivatives | 23 | 16,390 | 28,909 |
752,076 | 457,610 | ||
Total | 1,495,695 | 1,283,383 |
(a)\tTrade and other receivables
Viohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured.
When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.
Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables.
At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:
\u00a0 | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 294,046 | 301,265 |
Other EU member states | 254,604 | 255,645 |
Other European countries | 73,071 | 68,131 |
Asia | 37,798 | 42,842 |
America | 63,648 | 142,651 |
Africa | 19,897 | 14,290 |
Oceania | 554 | 949 |
Total | 743,619 | 825,773 |
The ageing of trade and other receivables and contract assets that were not impaired was as follows:
Amounts in EUR thousands | 2024 | 2023 |
Neither past due nor impaired | 630,207 | 706,092 |
Overdue | \u00a0 | |
- Up to 6 months | 94,339 | 100,175 |
- Over 6 months | 19,073 | 19,506 |
Total | 743,619 | 825,773 |
Based on management assessment,the amounts that are past due up to 6 months and over 6 months are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.
Viohalco companies insure a significant portion of their receivables and at 31 December 2024, 71% of the receivables balances were credit insured.
The movement in impairment of trade and other receivables and contract assets is as follows:
Amounts in EUR thousands | 2024 | 2023 | ||||
Trade & other receivables | Contract assets | Total | Trade & other receivables | Contract assets | Total | |
Balance as at 1 January | 71,009 | 248 | 71,256 | 69,212 | 203 | 69,414 |
Impairment loss recognized | 8,982 | - | 8,982 | 8,954 | 68 | 9,022 |
Amounts written off | -3,137 | - | -3,137 | -6,164 | - | -6,164 |
Impairment loss reversed | -1,290 | -38 | -1,327 | -214 | -23 | -237 |
Foreign exchange differences | 1,391 | - | 1,391 | -764 | -\u00a0 | -764 |
Reclassification | -28 | - | -28 | -16 | \u00a0- | -16 |
Balance as at 31 December | 76,928 | 210 | 77,137 | 71,009 | 248 | 71,256 |
The allowance for expected credit losses for trade receivables and contract assets are calculated at individual level when there is an indication of impairment. For receivables and contract assets without any indication of impairment the expected credit losses are based on the historical data combined with forward-looking macroeconomic factors affecting credit risk, such as country risk and industry related risks. Expected loss rates are updated at every reporting date. The rising inflation and interest rates were also taken into consideration when calculating expected credit losses for the current year, without any significant impact on the impairment loss recognized.
In 2024, the impairment loss recognized concerned mainly copper segment while amounts that have been impaired mainly in other segment were written off. On the contrary, a reversal of impairment loss was recorded, as a result of the improvement of the expected loss rates of major clients in the aluminium and cables segments.
The following collateral exists for securing non-insured receivables from customers and contract assets:
\u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amounts in EUR thousands | \u00a0 | 2024 | 2023 |
Cash collateral | 181 | 530 | |
Letter of credit | 17,179 | 18,302 | |
Collateral on property | 1,850 | 1,850 | |
Payables which can be offset by receivables | 6,292 | 5,832 | |
Other | 2,262 | 2,987 | |
Total | \u00a0 | 27,763 | 29,501 |
(b)\tCash and cash equivalents
Viohalco and its subsidiaries held cash and cash equivalents of EUR 697 million at 31 December 2024 (2023: EUR 395 million). The cash and cash equivalents are held with banks and financial institutions, which are rated from A3 to Ba3 based on Moody\u2019s scale.
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. Viohalco considers that its cash and cash equivalents have low credit risk based on the credit assessment performed.
C.2. Liquidity risk
Liquidity risk is the risk that Viohalco companies will encounter difficulties in meeting their fianancial obligations in a timely manner. To manage liquidity risk they ensure, that sufficient liquidity is available, to meet their liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to their reputation.
Viohalco companies maintain sufficient undrawn credit limits to meet all their scheduled financial obligations as well as most unexpected ones.
Exposure to liquidity risk
Financial liabilities and derivatives based on contractual maturity are broken down as follows:
2024 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 934,534 | 721,491 | 52,896 | 147,134 | 57,918 | 979,440 |
Bond issues | 1,223,601 | 190,655 | 207,540 | 763,607 | 240,061 | 1,401,863 |
Lease liabilities | 51,444 | 12,707 | 10,513 | 16,699 | 16,615 | 56,534 |
Derivatives | 8,919 | 8,469 | 450 | - | - | 8,919 |
Contract liabilities | 226,488 | 227,970 | 25 | 42 | - | 228,036 |
Trade and other payables | 1,536,443 | 1,527,239 | 15,660 | 7,404 | 1,133 | 1,551,437 |
\u00a0 | 3,981,430 | 2,688,532 | 287,085 | 934,886 | 315,727 | 4,226,229 |
2023 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 897,692 | 628,960 | 87,334 | 165,785 | 90,609 | 972,687 |
Bond issues | 1,323,743 | 218,947 | 210,014 | 770,075 | 355,183 | 1,554,219 |
Lease liabilities | 46,620 | 13,065 | 10,125 | 15,386 | 21,923 | 60,498 |
Derivatives | 9,130 | 4,107 | 4,642 | 381 | - | 9,130 |
Contract liabilities | 281,387 | 282,022 | 39 | - | - | 282,060 |
Trade and other payables | 1,152,551 | 1,160,562 | 4,961 | 6,404 | 1,133 | 1,173,060 |
\u00a0 | 3,711,123 | 2,307,663 | 317,114 | 958,031 | 468,847 | 4,051,655 |
Viohalco companies\u2019 loans are subject to termination clauses based on financial ratios, such as \u2019Total liabilities / Total equity\u2018, \u2019Net debt / Total sales\u2018 and \u2019Current assets / Current liabilities\u2018, that need to be maintained above or below certain predetermined levels. These ratios are monitored regularly in order to avoid breaches that may lead to loans becoming due before contractual maturity, causing liquidity pressures.
C.3. Market risk
Market risk is the risk that changes in market prices \u2013 such as commodity prices, foreign exchange rates and interest rates - will affect Viohalco and its companies income or the value of their financial instruments. Viohalco\u2019s companies use derivatives to manage market risk.
Generally, Viohalco companies apply hedge accounting to manage volatility in their returns (P&L) .
(a) Currency risk:
Viohalco and its companies are exposed to currency risk in relation to the sales and purchases carried out and the loans issued in a currency other than the functional currency of Viohalco and its companies, which is mainly EUR. The most important currencies in which these transactions are held are EUR, USD and GBP.
Over time, Viohalco\u2019s companies hedge the greatest part of their exposure to foreign currencies. Viohalco\u2019s companies enter mainly into forward contracts with external counterparties so as to deal with currency risk. These contracts mainly expire within the next 12 months from the reporting date. If necessary, such contracts are renewed upon expiry.
FX risk may also be covered \u201cnaturally\u201d by taking out loans in the respective currencies if loan interest is denominated in the same currency as that of cash flows coming from operating activities.
The capital investments of Viohalco companies are not hedgedas they have been made mainly in Euro.
The summary quantitative data about Viohalco and its companies\u2019 exposure to currency risk as reported is as follows.
2024 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 100,710 | 23,957 | 20,156 | 2,766 | 20,491 | 1,565 | 169,644 | 441,639 | 611,283 |
Contract assets | 5,755 | - | - | - | - | - | 5,755 | 250,567 | 256,322 |
Loans and borrowings | -6,856 | -32,334 | -4,025 | -1,019 | -4,034 | -1,019 | -49,287 | -2,160,291 | -2,209,578 |
Trade and other payables | -121,630 | -17,209 | -63,231 | -610 | -25,382 | -2,262 | -230,324 | -1,306,120 | -1,536,443 |
Contract Iiabilities | -27,780 | -1,439 | -686 | - | -55 | - | -29,960 | -196,528 | -226,488 |
Cash & cash equivalents | 100,074 | 8,170 | 7,194 | 302 | 4,828 | 1,262 | 121,829 | 574,891 | 696,720 |
\u00a0 | 50,273 | -18,856 | -40,593 | 1,439 | -4,152 | -454 | -12,343 | -2,395,843 | -2,408,185 |
Derivatives for risk hedging (Nominal Value) | -31,384 | -28,066 | - | - | - | - | -59,450 | 20,650 | -38,800 |
Exposure | 18,890 | -46,922 | -40,593 | 1,439 | -4,152 | -454 | -71,793 | -2,375,193 | -2,446,985 |
2023 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 175,686 | 15,369 | 18,888 | 1,534 | 27,363 | 6,609 | 245,448 | 503,220 | 748,668 |
Contract assets | 42,159 | - | 4 | - | - | - | 42,163 | 194,389 | 236,552 |
Loans and borrowings | -14,032 | -26,976 | -4,527 | -31 | -4,909 | -233 | -50,707 | -2,217,346 | -2,268,054 |
Trade and other payables | -129,008 | -13,631 | -47,226 | -507 | -25,364 | -3,174 | -218,910 | -991,679 | -1,210,588 |
Contract Iiabilities | -135,607 | - | -1,168 | - | -77 | - | -136,852 | -144,535 | -281,387 |
Cash & cash equivalents | 42,519 | 2,346 | 5,397 | 151 | 2,523 | 1,673 | 54,609 | 340,406 | 395,015 |
\u00a0 | -18,282 | -22,891 | -28,632 | 1,146 | -463 | 4,874 | -64,249 | -2,315,546 | -2,379,795 |
Derivatives for risk hedging (Nominal Value) | 214,110 | 1,036 | -\u00a0 | -\u00a0 | -\u00a0 | -\u00a0 | 215,146 | - | 215,146 |
Exposure | 195,828 | -21,855 | -28,632 | 1,146 | -463 | 4,874 | 150,898 | -2,315,546 | -2,164,648 |
\u201cDerivatives for risk hedging\u201d includes also derivatives that relate to highly probable transactions, which have not been yet recognized as assets or liabilities in the consolidated statement of financial position. Euro denominated amounts are included for totals\u2019 reconciliation purposes.
The following exchange rates have been applied during the year.
Average exchange rate | Year end spot rate | |||
2024 | 2023 | 2024 | 2023 | |
USD | 1.08 | 1.08 | 1.04 | 1.11 |
GBP | 0.85 | 0.87 | 0.83 | 0.87 |
BGN | 1.96 | 1.96 | 1.96 | 1.96 |
RSD | 117.09 | 117.25 | 117.01 | 117.17 |
RO\u039d | 4.97 | 4.95 | 4.97 | 4.97 |
Viohalco is primarily exposed to changes of Euro against US dollar, pound sterling, Serbian Dinar and RON. A reasonably possible strengthening (weakening) of Euro against these currencies as at 31 December would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The Bulgarian currency LEV is not analysed below due to its fixed currency rate at 1.96 BGN/EUR.
Profit or loss | Equity, net of tax | |||
Amounts in EUR thousands | EUR Strengthening | EUR Weakening | EUR Strengthening | EUR Weakening |
2024 | ||||
USD (10% movement) | 4,006 | -4,006 | 6,454 | -6,454 |
GBP (10% movement) | 5,844 | -5,844 | 8,033 | -8,033 |
RSD (10% movement) | -112 | 112 | -112 | 112 |
RON (10% movement) | 324 | -324 | 324 | -324 |
2023 | ||||
USD (10% movement) | -14,404 | 14,404 | -31,105 | 31,105 |
GBP (10% movement) | 2,227 | -2,227 | 2,147 | -2,147 |
RSD (10% movement) | -89 | 89 | -89 | 89 |
RON (10% movement) | 36 | -36 | 36 | -36 |
(b) Interest rate risk:
Viohalco Subsidiaries have adopted a flexible policy of ensuring that a portion of their Medium and LT debt obligations are on a fixed rate basis. This is achieved through a combination of issuing medium term, fixed rate bond loans and using interest rate swaps to hedge a portion of their floating rate medium and LT loans. The interest rate profile of Viohalco companies\u2019 interest-bearing financial instruments, as reported is as follows.
Nominal amount | ||
Amounts in EUR thousands | 2024 | 2023 |
Fixed-rate instruments | ||
Financial liabilities | 552,874 | 548,973 |
Variable-rate instruments | ||
Financial liabilities | 1,656,704 | 1,719,081 |
Interest rate swaps (nominal value) | -215,293 | -249,721 |
1,441,411 | 1,469,360 |
Fixed-rate instruments
Viohalco does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Viohalco currently uses derivatives (interest rate swaps) as hedging instruments under a cash flow hedge accounting model.
Sensitivity analysis for variable-rate instruments
A reasonably possible change of 0.25% in interest rates of variable-rate instruments at the reporting date would have increased/ decreased (-) profit or loss by the amount shown below. This analysis assumes that all other variables, in particular foreign currency exchange rate, remain constant.
Variable rate | Profit or loss | |
Amounts in EUR thousands | 0.25% increase | 0.25% decrease |
2024 | ||
Financial liabilities | 8,086 | -8,086 |
Cash flow sensitivity (net) | 8,086 | -8,086 |
2023 | ||
Financial liabilities | 3,700 | -3,700 |
Cash flow sensitivity (net) | 3,700 | -3,700 |
(c) Cash flow hedges
The following table indicates the periods in which the cash flows associated with cash flow hedges are expected to occur:
Amounts in EUR thousands | Carrying amount at 31 December 2024 | 1-6 months | 6-12 months | More than 1 year | 31 December 2024 |
2024 | |||||
Interest rate Swaps | |||||
Assets | 6,209 | 1,330 | 831 | 4,048 | 6,209 |
Liabilities | 450 | - | - | 450 | 450 |
Forwards | |||||
Assets | 1,118 | 1,118 | - | - | 1,118 |
Liabilities | 4,156 | 3,047 | 1,109 | - | 4,156 |
Future contracts | |||||
Assets | 4,177 | 3,542 | 635 | - | 4,177 |
Liabilities | 2,001 | 1,840 | 161 | - | 2,001 |
Commodity Swaps | |||||
Assets | 2,757 | 1,884 | 374 | 499 | 2,757 |
Liabilities | - | - | - | - | - |
\u00a0 | 20,868 | 12,760 | 3,110 | 4,997 | 20,868 |
Amounts in EUR thousands | Carrying amount at 31 December 2023 | 1-6 months | 6-12 months | More than 1 year | 31 December 2023 |
2023 | |||||
Interest rate Swaps | |||||
Assets | 10,032 | 2,730 | 1,680 | 5,622 | 10,032 |
Liabilities | 1,425 | - | - | 1,425 | 1,425 |
Forwards | |||||
Assets | 7,793 | 6,307 | 1,475 | 11 | 7,793 |
Liabilities | 740 | 713 | 27 | - | 740 |
Electricity Swaps | |||||
Assets | 1,115 | - | - | 1,115 | 1,115 |
Liabilities | - | - | - | - | - |
Future contracts | |||||
Assets | 4,749 | 3,943 | 680 | 125 | 4,749 |
Liabilities | 317 | 316 | - | 1 | 317 |
Commodity Swaps | |||||
Assets | 2,027 | 205 | 1,092 | 730 | 2,027 |
Liabilities | 6,594 | 1,564 | 1,490 | 3,540 | 6,594 |
\u00a0 | 34,792 | 15,779 | 6,444 | 12,570 | 34,792 |
The table below provides information about the items designated as cash flow hedging instruments during the year and also as at 31 December 2024 and the reconciliation of hedging reserve. Based on their nature, hedging instruments are included in Derivatives assets and Derivatives liabilities in consolidated statement of financial position.
2024 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2024 | Changes in the value of the hedging instrument recognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rates | Other move-ments | Balance 31 December 2024 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 83,558 | 1,118 | -4,156 | 7,053 | -6,454 | -903 | -2,733 | - | - | -3,038 |
Future contracts | 191,191 | 4,177 | -2,001 | 4,432 | 2,914 | -4,316 | -844 | -9 | - | 2,176 |
Interest rate swap contracts | 348,670 | 6,209 | -450 | 8,607 | -468 | -2,380 | - | - | - | 5,759 |
Electricity swap | - | - | - | 1,115 | -1,115 | - | - | - | - | - |
Commodity swap contracts | 28,302 | 2,757 | - | -4,568 | 5,787 | 1,587 | -50 | - | - | 2,757 |
651,720 | 14,261 | -6,607 | 16,640 | 664 | -6,012 | -3,627 | -9 | - | 7,654 | |
2023 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2023 | Changes in the value of the hedging instrument rec-ognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rate | Other move-ments | Balance 31 December 2023 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 272,105 | 7,793 | -740 | 3,161 | 5,006 | -1,437 | 806 | -2 | -481 | 7,053 |
Future contracts | 170,102 | 4,749 | -317 | -5,706 | 4,339 | 2,126 | 214 | 1 | 3,458 | 4,432 |
Interest rate swap contracts | 178,700 | 10,032 | -1,425 | 17,524 | -5,754 | -3,162 | - | - | - | 8,607 |
Electricity swap | - | 1,115 | - | - | 1,115 | - | - | - | - | 1,115 |
Commodity swap contracts | 26,905 | 2,026 | -6,594 | 27,289 | -21,379 | -7,020 | - | - | -3,458 | -4,568 |
647,812 | 25,716 | -9,076 | 42,268 | -16,673 | -9,493 | 1,020 | -1 | -481 | 16,640 |
(d) Commodity price risk
The commodity markets experience continuous price fluctuations. Viohalco companies minimize their exposure to commodity price volatility by using hedging instruments, when possible.
Viohalco companies are exposed to the fluctuation of aluminium, copper, zinc, lead and nickel. In order to minimize the effect of the metal price fluctuations on their results, companies use back to back matching of purchases and sales or derivative instruments (future contracts).
As at 31 December 2024, the derivative net balance of future contracts per commodity as reported in the statement of financial position is:
Amounts in EUR thousands | 2024 | 2023 |
Aluminium | 2,016 | 3,496 |
Copper | 630 | 1,305 |
Lead | -470 | -366 |
Total | 2,176 | 4,435 |
In addition, Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions. As at 31 December 2024, the derivative net liability these contracts as reported in the statement of financial position is EUR 2.8 million.
(e) Energy price risk
Viohalco is exposed to risks arising from fluctuating energy prices. Within 2023, Viohalco companies signed a long-term Power Purchase Agreement (PPA), backed by various assets from Renewable Energy Sources (\u201cRES assets\u201d), in order to reduce its exposure to volatility in the energy prices.
Based on the initial agreement, the PPA provided for two distinct arrangements, comprising a physical delivery of electricity during the first two years (Period A), with a financial settlement of the difference between the fixed agreement price and the market electricity price, and for a virtual delivery of renewable electricity subsequently and to the end of the agreement (Period B), as produced by specified RES assets (i.e. photovoltaic facilities) yet to be constructed, with a financial settlement of the difference between the fixed agreement price for this subsequent period and the market electricity price. Period A of the PPA was assessed in accordance with IFRS 9 as an own-use agreement and was accounted for as an executory contract, while Period B of the initial PPA was assessed as comprising a derivative financial instrument, which was accounted for at fair value through profit or loss other comprehensive income.
In August 2024, an addendum to the initial contract was signed, altering effective from 15.03.2024, altering mainly the nature of the contract for Period B as well as the duration and the pricing for both period A and B. More Specifically, the delivery method in period B has been changed from virtual to physical delivery via injection and absorption declarations in the Day-Ahead Market, through an intermediary supplier, resulting in a physical delivery contract performed on similar terms as the existing one in period A.
C.4 Risks Related to Climate change
Viohalco companies recognize the importance of transparency regarding climate-related risks and opportunities to maintain trust of stakeholders and allow investors to better understand the potential impact transition and physical risks and opportunities emanating from climate change. To that end, Viohalco has pledged to assess the potential severity of the risks and the possible benefits of the opportunities with the aim to take all necessary measures to mitigate negative impacts and maximize the positive ones, and to adopt the Task Force on Climate-related Financial Disclosures (TCFD) framework to transparently communicate all climate-related risks and opportunities. For this purpose, Viohalco subsidiaries performed an assessment of climate-related risks and opportunities that covered all industrial and real estate assets. The detailed results of this assessment are reported at segmental level in the Non-Financial Disclosure, accompanying the Annual Report.
Moving to a low-carbon economy requires certain measures to be considered and implemented. Through the analysis, for each business segment, the most material climate related transition and physical risks and opportunities over the short, medium and long-term, have been identified. The transition risks assessed relate to policy, legal, technology and market changes to address climate change mitigation and adaptation. Policy actions around climate change continue to evolve, technological improvements or innovations that support the transition to a lower-carbon and energy efficient economic system can have a significant impact on organizations, while significant changes in market such as decrease in demand for specific goods or services or decreased revenues related to changes in customer behavior are some examples of the implications that can impact the operating model and the financial planning of Viohalco subsidiaries. On the other hand, extreme weather events and longer-term shifts in climate patterns such as limited water availability and extreme heat or sea level rise may have multiple impacts and possible financial implications for Viohalco companies.
The abovementioned risks and opportunities have been identified and classified on a scale of low, medium, and high, based on the actual and potential impacts on the Viohalco companies\u2019 business model, assets and operations, as well as financial impacts on the business performance. The financial impacts have being considered to the accounting estimates to the extent that they can be currently evaluated. Moreover, challenges associated with climate related commitments have been considered, and Viohalco companies have not identified any additional issues that may have a material effect on their financial statements.
C.5. Business and Operational Risk Management
Viohalco subsidiaries follow closely and on a continuous basis the developments in the international and domestic environment and timely adapt their business strategy and risk management policies to minimize the impact of the macroeconomic conditions on their operations.
34. Leases
\u0391. Leases as lessee
(a) Amounts recognised in the Statement of Financial Position
The Consolidated Statement of Financial Position shows the following amounts relating to leases:
Right of Use Assets
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Land | 1,118 | 1,205 |
Buildings | 9,886 | 10,908 |
Machinery | 5,782 | 5,488 |
Transportation equipment | 26,956 | 22,864 |
Other equipment | 159 | 159 |
Total Right-of-use assets | 43,901 | 40,623 |
Lease liabilities
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Current lease liabilities | 11,086 | 11,237 |
Non-current lease liabilities | 40,358 | 35,382 |
Total lease liabilities | 51,444 | 46,620 |
Additions to the right-of-use assets during 2024 were EUR 17,786 thousands (2023: EUR 22,687 thousands).
(b)Amounts recognised in the Statement of profit or loss
The statement of profit or loss includes the following amounts relating to leases:
Amounts in EUR thousands | 2024 | 2023 |
Depreciation charge of right-of-use assets | ||
Plots | 189 | 184 |
Buildings | 1,978 | 1,741 |
Machinery | 1,529 | 2,110 |
Transportation means | 8,277 | 6,140 |
Other equipment | 69 | 121 |
Total | 12,043 | 10,295 |
Interest expense (included in finance cost) | 2,449 | 2,095 |
Variable rental fees | 1,301 | 1,056 |
Low value rental fees | 513 | 564 |
Short term rental fees | 6,413 | 7,110 |
Total | 10,676 | 10,826 |
B. Leases as lessor
Viohalco and its companies in the real estate development sector lease out their investment properties (See note 19).
a) Future minimum lease collections
At 31 December, the future minimum lease payments under non-cancellable leases were as follows.
Amounts in EUR thousands | 2024 | 2023 |
Less than one year | 26,658 | 24,203 |
Between one and two years | 26,445 | 23,379 |
Between two and three years | 25,256 | 22,819 |
Between three and four years | 22,891 | 21,390 |
Between four and five years | 22,446 | 19,196 |
More than five years | 215,093 | 84,581 |
Total | 338,789 | 195,569 |
(b) Amounts recognized in profit or loss
The figures below are related to investment property that has been recognised in the statement of profit or loss. Operating expenses relate mainly to maintenance cost.
Amounts in EUR thousands | 2024 | 2023 |
Rental income from investment property | 29,702 | 25,558 |
Direct operating expenses that do not generate rental income | - | -65 |
15. Trade and other receivables
Amounts in EUR thousands | Note | 2024 | 2023 |
Current assets | \u00a0 | \u00a0 | |
Trade receivables | 397,405 | 487,434 | |
Less: Impairment losses | -60,521 | -57,246 | |
Net trade receivables | 336,884 | 430,188 | |
Advance payments | 10,964\u00a0 | 12,058 | |
Cheques and notes receivables & cheques overdue | 35,539 | 39,836 | |
Receivables from related parties | 37 | 49,746 | 61,149 |
VAT and other tax receivables | 62,951 | 45,947 | |
Receivables from dividends of equity-accounting investees and other investments | 37 | 543 | 300 |
Other debtors | 97,091 | 141,446 | |
Less: Impairment losses | -11,863 | -11,863 | |
Net other receivables | 244,970 | 288,872 | |
Total current assets | 581,854 | 719,061 | |
Non-current assets | |||
Non-current receivables from related parties | 37 | 14,086 | 4,500 |
Less: Impairment losses | 37 | -4,544 | -1,900 |
Other non-current receivables | 19,887 | 27,007 | |
Total non-current assets | 29,429 | 29,607 | |
Total receivables | 611,283 | 748,668 |
A. Transfer of trade receivables
The carrying amount of receivables includes amounts that are subject to factoring arrangements. Viohalco and its subsidiaries, enter into factoring agreements (with recourse) to sell trade receivables for cash proceeds. These trade receivables are not being derecognised from the statement of financial position, because substantially all the risks and rewards are still retained by Viohalco - primarily credit risk. The amount received on transfer by the factor is recognised as a secured bank loan.
The following table presents the carrying amount of trade receivables at the year-end that have been transferred, but have not been derecognised and the associated liabilities.
Amounts in EUR thousands | 2024 | 2023 |
Carrying amount of trade receivables transferred to banks | 55,771 | 51,460 |
Carrying amount of associated liabilities | 47,093 | 35,100 |
The fair value of trade receivables transferred approximates their carrying amount.
As at 31 December 2024 and 2023, Viohalco companies had not used the total amount of credit line provided by the factoring companies.
Related loans are included in the line \u2019Secured bank loans\u2018 in Note 26 \u2019Loans and Borrowings\u2019.
27. Trade and other payables
Amounts in EUR thousands | Note | 2024 | 2023 |
Suppliers | 872,329 | 745,347 | |
Notes payable | 422,443 | 272,883 | |
Social security funds | 11 | 16,243 | 15,774 |
Amounts due to related parties | 37 | 4,289 | 4,592 |
Sundry creditors | 25,351 | 19,248 | |
Accrued expenses | 161,245 | 110,481 | |
Taxes-duties | 34,543 | 42,263 | |
Total | 1,536,443 | 1,210,588 | |
Non-current balance of trade and other payables | 26,712 | 15,896 | |
Current balance of trade and other payables | 1,509,732 | 1,194,692 | |
Balance as at 31 December | 1,536,443 | 1,210,588 |
\u2018Notes payables\u2019 in the table above concerns structured payable arrangements related to purchases of primary raw materials, such as copper, steel etc. Supplier finance arrangements are characterised by one or more finance providers offering to pay amounts that an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, when suppliers are paid. These arrangements provide the entity with extended payment terms, or the entity\u2019s suppliers with early payment terms, compared to the related invoice payment due date. Viohalco companies have entered into supplier finance arrangements with finance providers; under such arrangements, the finance providers acquire the rights to selected trade receivables from the suppliers, while the terms and conditions of the arrangement are unchanged from the trade payables from this supplier, other than the due date has been extended and the acquired payables are no longer able to be offset against credit notes received from the suppliers.
Range of payment due dates | 2024 |
Liabilities under supplier finance arrangement | 90-270 days |
Comparable trade payables that are not part of the supplier finance arrangement (same line of business) | 0-120 days |
Amounts in EUR thousand | |
Carrying amount of liabilities under supplier finance arrangement | |
Liabilities under supplier finance arrangement | 422,069 |
of which the supplier has received payment from the finance provider | 421,064 |
15. Trade and other receivables
Amounts in EUR thousands | Note | 2024 | 2023 |
Current assets | \u00a0 | \u00a0 | |
Trade receivables | 397,405 | 487,434 | |
Less: Impairment losses | -60,521 | -57,246 | |
Net trade receivables | 336,884 | 430,188 | |
Advance payments | 10,964\u00a0 | 12,058 | |
Cheques and notes receivables & cheques overdue | 35,539 | 39,836 | |
Receivables from related parties | 37 | 49,746 | 61,149 |
VAT and other tax receivables | 62,951 | 45,947 | |
Receivables from dividends of equity-accounting investees and other investments | 37 | 543 | 300 |
Other debtors | 97,091 | 141,446 | |
Less: Impairment losses | -11,863 | -11,863 | |
Net other receivables | 244,970 | 288,872 | |
Total current assets | 581,854 | 719,061 | |
Non-current assets | |||
Non-current receivables from related parties | 37 | 14,086 | 4,500 |
Less: Impairment losses | 37 | -4,544 | -1,900 |
Other non-current receivables | 19,887 | 27,007 | |
Total non-current assets | 29,429 | 29,607 | |
Total receivables | 611,283 | 748,668 |
B. Credit and market risks and impairment losses
During 2010, the subsidiary Corinth Pipeworks SA initiated in Greece and Dubai legal actions against a former customer in the Middle-East regarding the recovery of an overdue receivable of USD 24.8 million (EUR 23.3 million on 31 December 2024), plus legal interest.
Following a series of court proceedings, the Dubai Court of Cassation issued its final judgment, during 2017, and ruled to reject any counterclaim of the former customer and to confirm the amount due to Corinth Pipeworks.
In order to recover this long overdue balance, Corinth Pipeworks has initiated the enforcement procedures against the assets of the former customer that are located within any of the countries, where the Court of Cassation judgment issued against the former customer is enforceable (i.e. UAE and various other countries in the Middle East). There were no other substantial developments during 2024.
Corinth Pipeworks had recorded in the past an impairment loss for the whole outstanding amount, i.e. USD 24.8 million. However, the subsidiary will continue any and all actions required to collect the full amount of that receivable.
Information about Viohalco companies\u2019 exposure to credit and market risks, and impairment losses for trade and other receivables is included in Note 30.
Reconciliation of carrying amountAmounts in EUR thousands | Land, plants & other buildings | Machinery & transportation equipment | Furniture & other equipment | PP&E under construction | Total |
Cost | |||||
Balance as at 1 January 2024 | 1,172,800 | 3,233,840 | 96,282 | 235,557 | 4,738,478 |
Effect of movement in exchange rates | 2,667 | 9,086 | 322 | 1,226 | 13,301 |
Additions | 30,213 | 31,707 | 5,917 | 342,740 | 410,577 |
Disposals | -38 | -4,035 | -173 | -28 | -4,274 |
Transfer to/from investment property | - | - | - | -9,708 | -9,708 |
Reclassifications | 46,185 | 70,830 | 3,329 | -123,340 | -2,995 |
Write offs | -252 | -6,820 | -241 | -504 | -7,817 |
Balance as at 31 December 2024 | 1,251,575 | 3,334,607 | 105,436 | 445,943 | 5,137,561 |
Accumulated depreciation & impairment losses | |||||
Balance as at 1 January 2024 | -416,096 | -1,867,199 | -74,202 | -4,983 | -2,362,480 |
Effect of movement in exchange rates | -804 | -6,618 | -294 | - | -7,716 |
Depreciation | -22,391 | -95,574 | -7,431 | - | -125,396 |
Disposals | 34 | 3,217 | 69 | - | 3,320 |
Write offs | 94 | 5,481 | 232 | - | 5,807 |
Reversal of previously recognized impairment loss | 9,202 | 263 | - | - | 9,464 |
Impairment loss | -101 | -846 | - | - | -947 |
Reclassifications | -2,399 | -586 | -75 | - | -3,059 |
Balance as at 31 December 2024 | -432,462 | -1,961,862 | -81,701 | -4,983 | -2,481,007 |
Carrying amount as at 31 December 2024 | 819,114 | 1,372,745 | 23,735 | 440,961 | 2,656,555 |
Amounts in EUR thousands | Land, plants & other buildings | Machinery & transportation equipment | Furniture & other equipment | PP&E under construction | Total |
Cost | |||||
Balance as at 1 January 2023 | 1,145,277 | 3,115,012 | 84,159 | 170,654 | 4,515,102 |
Effect of movement in exchange rates | 1,165 | 3,510 | 3 | -358 | 4,320 |
Additions | 18,971 | 24,175 | 8,282 | 233,147 | 284,574 |
Disposals | -92 | -3,978 | -286 | -791 | -5,148 |
Transfer to/from investment property | -20,573 | - | - | - | -20,573 |
Reclassifications | 31,232 | 131,363 | 9,701 | -163,564 | 8,733 |
Write offs | -3,090 | -36,243 | -5,424 | -3,530 | -48,287 |
Reclassification to assets held for sale | -89 | - | -153 | - | -242 |
Balance as at 31 December 2023 | 1,172,800 | 3,233,840 | 96,282 | 235,557 | 4,738,478 |
Accumulated depreciation & impairment losses | |||||
Balance as at 1 January 2023 | -406,935 | -1,803,569 | -68,580 | -4,983 | -2,284,066 |
Effect of movement in exchange rates | -573 | -2,487 | -14 | - | -3,074 |
Depreciation | -22,787 | -98,902 | -6,233 | - | -127,922 |
Disposals | 24 | 3,310 | 233 | - | 3,567 |
Write offs | 3,087 | 35,274 | 5,420 | - | 43,781 |
Reversal of previously recognized impairment loss | 10,634 | 278 | - | - | 10,912 |
Transfer to/from investment property | 2,876 | - | - | - | 2,876 |
Impairment loss | -2,765 | -1,180 | -4 | - | -3,949 |
Reclassifications | 342 | 77 | -5,029 | - | -4,610 |
Reclassification to assets held for sale | 1 | - | 4 | - | 4 |
Balance as at 31 December 2023 | -416,096 | -1,867,199 | -74,202 | -4,983 | -2,362,480 |
Carrying amount as at 31 December 2023 | 756,704 | 1,366,640 | 22,080 | 230,574 | 2,375,998 |
The net amount of EUR 6 million in \u2018Reclassifications\u2019 movement mainly concerns reclassifications between property, plant and equipment, intangibles and right of use assets.
E. Impairment loss of property, plant and equipment
On 31 December 2024, an impairment test was performed for each Cash Generating Unit (further CGU) for which indications of impairment loss existed as at 31 December 2024 concerning subsidiaries from steel segment. The identified indications of impairment concerned the losses incurred by certain CGUs over the last years. For the calculation of recoverable amount per CGU, cash flow projections based on a period of five years were used. The results of this test concluded that the property, plant and equipment used by these CGUs were not impaired at 31 December 2024, since the recoverable amount of each CGU exceeded the respective carrying amount.
In addition, impairment losses of EUR 0.9 million where recognised mainly in the aluminium (EUR 0.4 million) and cables segments (EUR 0.5 million) for specific fixed assets that indications of impairment were existed. The recoverable amount of related assets amounted EUR 1.3 million.
During 2024, assets with NBV equal to EUR 2.0 million (2023: EUR 4.5 million) were written off since they are no longer used by Viohalco companies and they are not expected to bring economic benefits in the future since they have became obsolete.
In addition, impairment tests were performed on real estate assets where indications of impairment exist, either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. Valuation techniques and the results relating to investment properties are outlined in note 19.
F. Reversal of impairment loss of property, plant and equipment
A test has also been performed for CGUs, for which indications for reversal of previously recorded impairment loss existed at 31 December 2024. These indications concerned the improvement of expected performance of certain CGUs over the following years. However, the result of the test was that no impairment loss should be reversed in 2024.
In addition, previously recognized impairment losses of EUR 9,5 million were reversed (recoverable amount EUR 38,1 million) and included in the line \u201cOther Income\u201d of the consolidated statement of profit or loss, related to Investment property that has been transferred to PP&E in the previous years. Valuation technique applied was \u201cIncome Approach\u201d. Valuation techniques and the results relating to investment properties are outlined in note 19.
For segmental classification purposes, reversal of impairment losses reported in real estate segment.
Reconciliation of carrying amountAmounts in EUR thousands | Goodwill | Development costs | Trademarks and licenses | Software | Other | Total |
Cost | ||||||
Balance as at 1 January 2024 | 1,500 | 537 | 43,747 | 67,951 | 3,248 | 116,982 |
Effect of movement in exchange rates | - | - | - | 9 | -1 | 8 |
Additions | - | - | 2,422 | 4,031 | - | 6,454 |
Write-offs | - | - | - | -2 | - | -2 |
Reclassifications | - | - | 4,539 | 2,791 | 115 | 7,445 |
Balance as at 31 December 2024 | 1,500 | 537 | 50,707 | 74,781 | 3,362 | 130,887 |
Accumulated amortization and impairment loss | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
Balance as at 1 January 2024 | -1,500 | -512 | -16,467 | -46,790 | -1,184 | -66,453 |
Effect of movement in exchange rates | - | - | - | -5 | 1 | -5 |
Amortization | - | -8 | -3,184 | -3,761 | -190 | -7,143 |
Write-offs | - | - | - | 2 | - | 2 |
Balance as at 31 December 2024 | -1,500 | -520 | -19,652 | -50,555 | -1,373 | -73,600 |
Carrying amount as at 31 December 2024 | - | 17 | 31,056 | 24,225 | 1,989 | 57,287 |
Amounts in EUR thousands | Goodwill | Development costs | Trademarks and licenses | Software | Other | Total |
Cost | ||||||
Balance as at 1 January 2023 | 1,500 | 537 | 39,569 | 60,619 | 3,138 | 105,363 |
Effect of movement in exchange rates | - | - | - | -49 | -5 | -54 |
Additions | - | - | 1,940 | 5,023 | 112 | 7,075 |
Write-offs | - | - | - | -8 | - | -8 |
Loss of Control/Disposal of subsidiary | - | - | -5 | -6 | - | -11 |
Reclassifications | - | - | 2,243 | 2,373 | 3 | 4,619 |
Balance as at 31 December 2023 | 1,500 | 537 | 43,747 | 67,951 | 3,248 | 116,982 |
Accumulated amortization and impairment loss | ||||||
Balance as at 1 January 2023 | -1,500 | -505 | -14,004 | -44,956 | -1,022 | -61,986 |
Effect of movement in exchange rates | - | - | - | 37 | 2 | 40 |
Amortization | - | -8 | -2,427 | -1,917 | -164 | -4,515 |
Write-offs | - | - | - | 8 | - | 8 |
Reclassifications | - | - | -37 | 37 | - | - |
Balance as at 31 December 2023 | -1,500 | -512 | -16,467 | -46,790 | -1,184 | -66,453 |
Carrying amount as at 31 December 2023 | - | 25 | 27,279 | 21,161 | 2,065 | 50,529 |
F. Impairment testing
(a)\tIntangible assets recognized for the CGU \u201cFulgor\u201d
As these intangible assets do not generate independent cash inflows, it was considered appropriate to carry out the impairment test on the basis of the Cash Generating Unit (CGU) of Fulgor submarine cables production plant, which incorporates these assets. To evaluate the value in use, cash flow projections based on estimates by management covering a five-year period (2025 \u2013 2029) were used. These estimates take into consideration the contracts already signed, as well as contracts estimated to be awarded in Greece and abroad.
The submarine cables CGU operates as a project-based business. Therefore, assumptions related to revenue and profitability growth are based on the contracts already signed, as well as those estimated to be undertaken in the forthcoming period. The main assumptions regarding the operations of submarine cables CGU and the projects to be executed within the five-year period are:
High-capacity utilization of Corinth plant owned by Fulgor, as the one observed during the last 4 years, based on contracts already awarded and those expected given the tendering activity. Given the existing backlog and the growth of renewables business in Europe and interconnection projects around the world, which are the most significant drivers in the attractive outlook for the offshore power generation market, the continuously high level of activity is expected to be retained throughout the period 2025-2029.
Capital expenditure of approx. EUR 183 million in the following 5 years, to cover estimated production and capacity needs. Capital expenditure reflects investments for maintenance as well as organic growth. For the terminal period, investments are set equal to depreciation.
The compound annual growth rate of revenue from offshore business for the five-year period is set to ca. 19% attributable to the assignment of new projects mainly in Greece and North Europe.
The EBITDA margin per offshore project is assumed in the range of 15%-25% of revenue. Estimated profitability per project varies due to different types of cables required, technical specifications, geographic region and the project\u2019s timeframe.
The compound annual growth rate of fixed operating expenses is assumed equal to ca. 5.8% for the five-year period.
Cash flows after the first five years were calculated using an estimated long term growth rate of 1.31%, which mainly reflects management\u2019s estimates for the world economy as well as long-term growth prospects of the offshore cable sector. The pre-tax rate used to discount these cash flows was 10.33% (2023: 11.34%), based on the following assumptions:
The risk-free rate was based on AAA European bond yields.
The country risk calculations were based on the expected future sales mix and the fact that the business unit is based in Greece.
The market risk premium was assumed equal to 3.94% (2023: 4.84%).
Commodity prices for copper and aluminium are intrinsically part of the impairment test assumptions; the metal price hedging activities undertaken, though, and the customized nature of the products sold by Fulgor, suggest that the value of the business unit is not significantly affected by fluctuations in commodity prices. Hence, a neutral result from metal price fluctuations is assumed in the context of the impairment test.
The results of this test indicated that the recoverable amount on 31 December 2024 exceeds the carrying amount of the CGU (equal to EUR 498 million) by EUR 1,004 million.
A sensitivity analysis was carried out on the key assumptions of the model (discount rates and growth in perpetuity), to examine the adequacy of the above headroom. Sensitivity analysis results indicated that the recoverable amount is comfortably exceeds the carrying value of the CGU. Assumptions may change as follows so as the recoverable amount equals the carrying amount:
Assumptions used | Change in rates (percentage points change) required for the recoverable amount to equal the carrying amount | |
Discount rate | 10.33% | + 10.9 ppc |
Terminal growth | 1.31% | - 47.1 ppc |
(b) Intangible assets recognized for the CGU \u201cReynolds\u201d
The recoverable amount of the CGU that includes this intangible asset (Reynolds Cuivre S.A.) was estimated based on the present value of the future cash flows expected to be derived from the CGU (value in use).
Cash flows after the first five years were calculated using an estimated growth rate of 1%, which reflects management\u2019s estimates for the growth prospects for the market. The after-tax rate used to discount these cash flows is 7.9% for the five year period and for the terminal value and was based on the following:
Risk free rate at 2.49%.
The market risk premium (including the country risk for operating in France) was determined at 4.5%.
Additional hurdle rate of 1%.
Sales revenue is estimated to grow at a 3.9% cumulative annual growth rate for the first five years, while operating earnings grow at a 1.3% rate. Average annual capex for the same period equals to EUR 143 thousand.
The results of this test indicated that the recoverable amount as at 31 December 2024 exceeds the carrying value of the CGU amounting to EUR 9.8 million by EUR 11 million.
Sensitivity and scenario analysis was carried out on the assumptions of the DCF model (sales growth, profitability, working capital requirements, and discount rates), to examine the adequacy of the headroom. The headroom was deemed adequate even under extremely stressed scenarios. A combination of negative growth, depressed margins and high working capital requirements and discount rates would be required for headroom to turn negative. Such a scenario was deemed unrealistic.
19. Investment property
A. Reconciliation of carrying amount
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 338,279 | 316,024 |
Acquisitions | 16,505 | 15,853 |
Disposals | -53 | -527 |
Write offs | -19 | - |
(Impairment losses) / Reversal of impairment losses | -6,857 | -3,118 |
Modifications | 206 | 297 |
Transfers from property, plant and equipment | 9,708 | 17,697 |
Reclassifications | - | -2,451 |
Depreciation | -5,391 | -5,495 |
Balance as at 31 December | 352,379 | 338,279 |
Gross carrying amount | 437,349 | 411,082 |
Accumulated depreciation and impairment losses | -84,971 | -72,803 |
Net carrying amount as at 31 December | 352,379 | 338,279 |
Investment property comprises of a number of commercial and industrial properties that are either leased to third parties currently or will be in the foreseeable future. Each of these leases is indexed to consumer prices.
During 2024, Viohalco invested an amount of EUR 17 million (EUR 16 million in 2023) for the development and improvement of investment properties.
B. Measurement of fair value \u2013Impairment loss and subsequent reversal
On December 31st 2024, an impairment test was performed on all real estate assets (individual assets), either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. The results relating to owner occupied properties are outlined in note 17.
For investment property assets, an impairment loss of EUR 9.7 million was recorded and included in the line \u2019Other expense\u2018 of the consolidated statement of profit or loss. Impairment losses relate primarily to land and buildings, and the recoverable amount was based on its fair value less costs of disposal. The fair value of these properties was determined by external, independent property valuers, having appropriate recognized professional qualifications and recent experience in the location and category of the properties being valued. Valuation techniques are described in detail in the next paragraph. For segmental classification purposes, the impairment loss (recoverable amount EUR 38 million) was reported in real estate segment.
Asset valuations were also used to identify if previously recognized impairment losses could be reversed. As a result, EUR 2.8 million were reversed and included in the line \u2019Other Income\u2018 of the consolidated statement of profit or loss. The recoverable amount of these assets as at 31 December 2024 was EUR 88 million and they relate to the real estate segment.
The accumulated impairment losses carried forward as at 31 December 2024, amounts to EUR 50.3 million (31 December 2023: EUR 43.4 million).
The fair value of all properties reported in the line \u2019Investment property\u2018, as at 31 December 2024, is EUR 500 million (31 December 2023: EUR 484 million).
Valuation techniques and significant unobservable inputs (Level 2 & 3)
The fair value measurement for investment property has been categorized as a Level 2 & 3 regarding fair value hierarchy, based on the inputs to the valuation techniques used.
Valuations methods used to determine the fair value of these properties were reflecting the highest and best possible use.
-\tFor buildings currently rented or expected to be rented out in the foreseeable future, the income approach (either Discounted Cash Flow or Direct capitalization) method was used. DCF method considered the present value of net cash flows to be generated from each property, taking into account expected rental growth rate, void periods, occupancy rate, lease incentive costs such as rent-free periods and other relevant costs/fees obliged to be settled by the owning entity. The expected net cash flows are discounted using risk-adjusted discount rates that ranged between 7,46% - 12,50% and exit yields that ranged between 4,00-11,00%. Among other factors, the discount rate estimation considers the quality of each building, its location, tenant credit quality, lease terms and the expected market return. The estimated fair value would decrease if either the expected market rental growth was lower or the risk-adjusted discount rates were higher. Direct capitalization uses an All-Risk Yield in order for the current annual estimated rental value to be capitalized. ARY ranged between 4,00% - 12,00% and offers a holistic assessment of the property market\u2019s general condition.
-\tFor land plots and buildings, which were under construction and which are intended to be used as investment property in the future, the residual method was primarily used. The fair value determined by this method reflects the value of the property in its current condition.
-\tFor the utilitisation of a secondary valuation methodology, the comparative method (market approach) was appraised for the vast majority of the properties. According to this method the valuer estimates the market value of the subject asset by comparing the factors that mostly affect it. Such factors can be location, size, quality of construction etc. This method is based on estimation of the market price and what has been paid for similar properties under similar economic conditions. Each property is valued at a price at which similar ones in the area have recently sold with a subjective differential added (or subtracted) to adjust for the unique characteristics of the property that make it different from the benchmark properties, such as location, size, accessibility etc.
In 2024, a capital increase was implemented in the associated company NedZink B.V., with ELVALHALCOR contributing EUR 8.5 million, maintaining its ownership at 50%. However, challenging global economic conditions, dampened demand for NedZink B.V.\u2019s products, resulting in a downturn in its 2024 financial performance. This resulted to an impairment loss of the investment, as a consequence of the impairment test assessment performed according to its business plan, which ELVALHALCOR incorporate the revised negative assessments for future results for NedZink B.V., following the conservatism principle. As a result, an impairment loss of EUR 3.1 million was recorded, due to the fact that the recoverable amount of the investment was lower than the carrying amount of the investment.(a)\tTrade and other receivables
Viohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured.
When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.
Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables.
At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:
\u00a0 | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 294,046 | 301,265 |
Other EU member states | 254,604 | 255,645 |
Other European countries | 73,071 | 68,131 |
Asia | 37,798 | 42,842 |
America | 63,648 | 142,651 |
Africa | 19,897 | 14,290 |
Oceania | 554 | 949 |
Total | 743,619 | 825,773 |
The ageing of trade and other receivables and contract assets that were not impaired was as follows:
Amounts in EUR thousands | 2024 | 2023 |
Neither past due nor impaired | 630,207 | 706,092 |
Overdue | \u00a0 | |
- Up to 6 months | 94,339 | 100,175 |
- Over 6 months | 19,073 | 19,506 |
Total | 743,619 | 825,773 |
Based on management assessment,the amounts that are past due up to 6 months and over 6 months are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.
Viohalco companies insure a significant portion of their receivables and at 31 December 2024, 71% of the receivables balances were credit insured.
The movement in impairment of trade and other receivables and contract assets is as follows:
Amounts in EUR thousands | 2024 | 2023 | ||||
Trade & other receivables | Contract assets | Total | Trade & other receivables | Contract assets | Total | |
Balance as at 1 January | 71,009 | 248 | 71,256 | 69,212 | 203 | 69,414 |
Impairment loss recognized | 8,982 | - | 8,982 | 8,954 | 68 | 9,022 |
Amounts written off | -3,137 | - | -3,137 | -6,164 | - | -6,164 |
Impairment loss reversed | -1,290 | -38 | -1,327 | -214 | -23 | -237 |
Foreign exchange differences | 1,391 | - | 1,391 | -764 | -\u00a0 | -764 |
Reclassification | -28 | - | -28 | -16 | \u00a0- | -16 |
Balance as at 31 December | 76,928 | 210 | 77,137 | 71,009 | 248 | 71,256 |
B. Credit and market risks and impairment losses
During 2010, the subsidiary Corinth Pipeworks SA initiated in Greece and Dubai legal actions against a former customer in the Middle-East regarding the recovery of an overdue receivable of USD 24.8 million (EUR 23.3 million on 31 December 2024), plus legal interest.
Following a series of court proceedings, the Dubai Court of Cassation issued its final judgment, during 2017, and ruled to reject any counterclaim of the former customer and to confirm the amount due to Corinth Pipeworks.
In order to recover this long overdue balance, Corinth Pipeworks has initiated the enforcement procedures against the assets of the former customer that are located within any of the countries, where the Court of Cassation judgment issued against the former customer is enforceable (i.e. UAE and various other countries in the Middle East). There were no other substantial developments during 2024.
Corinth Pipeworks had recorded in the past an impairment loss for the whole outstanding amount, i.e. USD 24.8 million. However, the subsidiary will continue any and all actions required to collect the full amount of that receivable.
Information about Viohalco companies\u2019 exposure to credit and market risks, and impairment losses for trade and other receivables is included in Note 30.
C.1. Credit risk
Credit risk is the risk of the financial loss to Viohalco and its companies, if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the companies\u2019 receivables from customers, contract assets and bank deposits.
The carrying amount of financial assets represents the maximum credit exposure.
Amounts in EUR thousands | Note | 2024 | 2023 |
Trade & other receivables | 15 | 611,283 | 748,668 |
Contract assets | 7 | 256,322 | 236,552 |
Less: | |||
Other down payments | 15 | -10,964 | -12,058 |
Tax assets | 15 | -62,951 | -45,947 |
Other non-financial assets | -50,072 | -101,442 | |
743,619 | 825,773 | ||
Other investments | 21 | 38,966 | 33,686 |
Cash and cash equivalents | 16 | 696,720 | 395,015 |
Derivatives | 23 | 16,390 | 28,909 |
752,076 | 457,610 | ||
Total | 1,495,695 | 1,283,383 |
(a)\tTrade and other receivables
Viohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured.
When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.
Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables.
At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:
\u00a0 | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 294,046 | 301,265 |
Other EU member states | 254,604 | 255,645 |
Other European countries | 73,071 | 68,131 |
Asia | 37,798 | 42,842 |
America | 63,648 | 142,651 |
Africa | 19,897 | 14,290 |
Oceania | 554 | 949 |
Total | 743,619 | 825,773 |
The ageing of trade and other receivables and contract assets that were not impaired was as follows:
Amounts in EUR thousands | 2024 | 2023 |
Neither past due nor impaired | 630,207 | 706,092 |
Overdue | \u00a0 | |
- Up to 6 months | 94,339 | 100,175 |
- Over 6 months | 19,073 | 19,506 |
Total | 743,619 | 825,773 |
Based on management assessment,the amounts that are past due up to 6 months and over 6 months are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.
Viohalco companies insure a significant portion of their receivables and at 31 December 2024, 71% of the receivables balances were credit insured.
The movement in impairment of trade and other receivables and contract assets is as follows:
Amounts in EUR thousands | 2024 | 2023 | ||||
Trade & other receivables | Contract assets | Total | Trade & other receivables | Contract assets | Total | |
Balance as at 1 January | 71,009 | 248 | 71,256 | 69,212 | 203 | 69,414 |
Impairment loss recognized | 8,982 | - | 8,982 | 8,954 | 68 | 9,022 |
Amounts written off | -3,137 | - | -3,137 | -6,164 | - | -6,164 |
Impairment loss reversed | -1,290 | -38 | -1,327 | -214 | -23 | -237 |
Foreign exchange differences | 1,391 | - | 1,391 | -764 | -\u00a0 | -764 |
Reclassification | -28 | - | -28 | -16 | \u00a0- | -16 |
Balance as at 31 December | 76,928 | 210 | 77,137 | 71,009 | 248 | 71,256 |
The allowance for expected credit losses for trade receivables and contract assets are calculated at individual level when there is an indication of impairment. For receivables and contract assets without any indication of impairment the expected credit losses are based on the historical data combined with forward-looking macroeconomic factors affecting credit risk, such as country risk and industry related risks. Expected loss rates are updated at every reporting date. The rising inflation and interest rates were also taken into consideration when calculating expected credit losses for the current year, without any significant impact on the impairment loss recognized.
In 2024, the impairment loss recognized concerned mainly copper segment while amounts that have been impaired mainly in other segment were written off. On the contrary, a reversal of impairment loss was recorded, as a result of the improvement of the expected loss rates of major clients in the aluminium and cables segments.
The following collateral exists for securing non-insured receivables from customers and contract assets:
\u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amounts in EUR thousands | \u00a0 | 2024 | 2023 |
Cash collateral | 181 | 530 | |
Letter of credit | 17,179 | 18,302 | |
Collateral on property | 1,850 | 1,850 | |
Payables which can be offset by receivables | 6,292 | 5,832 | |
Other | 2,262 | 2,987 | |
Total | \u00a0 | 27,763 | 29,501 |
(b)\tCash and cash equivalents
Viohalco and its subsidiaries held cash and cash equivalents of EUR 697 million at 31 December 2024 (2023: EUR 395 million). The cash and cash equivalents are held with banks and financial institutions, which are rated from A3 to Ba3 based on Moody\u2019s scale.
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. Viohalco considers that its cash and cash equivalents have low credit risk based on the credit assessment performed.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAllowanceForCreditLossesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__214": { "value": "16. Cash and cash equivalents
Amounts in EUR thousands | 2024 | 2023 |
Cash in hand and at banks | 285 | 307 |
Demand and short-term bank deposits | 696,434 | 394,708 |
Total | 696,720 | 395,015 |
The share capital increase of Viohalco subsidiary Cenergy Holdings in October 2024, resulted in an increased cash position as of 31 December 2024.
The majority of available funds as of 31 December 2024 are placed with short-term bank term deposits and are available for use. Demand and short-term deposits as of 31 December 2024 are held with financial institutions, are readily convertible (even before agreed maturity date) to known amounts of cash, and are subject to an insignificant risk of changes in value.
Viohalco and its subsidiaries have the right to proceed with early withdrawal of the time deposit prior to agreed maturity date. Any breakage cost related to early termination is linked only to the anticipated interest income that was about to be received and does not affect the time deposit principal amount.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__215-1": { "value": "16. Cash and cash equivalents
Amounts in EUR thousands | 2024 | 2023 |
Cash in hand and at banks | 285 | 307 |
Demand and short-term bank deposits | 696,434 | 394,708 |
Total | 696,720 | 395,015 |
The share capital increase of Viohalco subsidiary Cenergy Holdings in October 2024, resulted in an increased cash position as of 31 December 2024.
The majority of available funds as of 31 December 2024 are placed with short-term bank term deposits and are available for use. Demand and short-term deposits as of 31 December 2024 are held with financial institutions, are readily convertible (even before agreed maturity date) to known amounts of cash, and are subject to an insignificant risk of changes in value.
Viohalco and its subsidiaries have the right to proceed with early withdrawal of the time deposit prior to agreed maturity date. Any breakage cost related to early termination is linked only to the anticipated interest income that was about to be received and does not affect the time deposit principal amount.
B. Reconciliation of movements of liabilities to cash flows from financing activities
Amounts in EUR thousands | Loans and Borrowings | Leases | Total |
Balance at 1 January 2024 | 2,221,434 | 46,620 | 2,268,054 |
Changes from financing cash flows | |||
Proceeds from loans and borrowings | 355,776 | - | 355,776 |
Repayment of borrowings & lease liabilities | -416,996 | -12,439 | -429,434 |
Total changes from financing cash flows | -61,220 | -12,439 | -73,659 |
Other changes | |||
New leases | - | 18,397 | 18,397 |
Interest expense | 122,136 | 2,449 | 124,586 |
Interest paid* | -124,905 | -2,449 | -127,353 |
Capitalised borrowing costs | 6,014 | - | 6,014 |
Terminations/Modifications | -7,482 | -1,153 | -8,635 |
Effect of changes in foreign exchange rate | 2,156 | 18 | 2,175 |
Total other changes | -2,080 | 17,262 | 15,183 |
Balance at 31 December 2024 | 2,158,135 | 51,444 | 2,209,579 |
Amounts in EUR thousands | Loans and Borrowings | Leases | Total |
Balance at 1 January 2023 | 2,429,465 | 40,380 | 2,469,845 |
Changes from financing cash flows | |||
Proceeds from loans and borrowings | 288,764 | - | 288,764 |
Repayment of borrowings & lease liabilities | -507,858 | -14,441 | -522,300 |
Total changes from financing cash flows | -219,095 | -14,441 | -233,536 |
Other changes | |||
New leases | - | 22,687 | 22,687 |
Interest expense | 137,498 | 2,095 | 139,593 |
Interest paid* | -132,223 | -2,030 | -134,253 |
Capitalised borrowing costs | 4,440 | - | 4,440 |
Terminations/Modifications | 1 | -1,228 | -1,227 |
Loss of Control/Disposal of subsidiary | - | -843 | -843 |
Effect of changes in foreign exchange rate | 1,348 | 2 | 1,350 |
Total other changes | 11,064 | 20,681 | 31,745 |
Balance at 31 December 2023 | 2,221,434 | 46,620 | 2,268,054 |
*Interest paid reported in Cash Flow Statement, includes bank charges and other finance costs.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCashFlowStatementExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__217": { "value": "17. Property, plant and equipment
A. Reconciliation of carrying amount
Amounts in EUR thousands | Land, plants & other buildings | Machinery & transportation equipment | Furniture & other equipment | PP&E under construction | Total |
Cost | |||||
Balance as at 1 January 2024 | 1,172,800 | 3,233,840 | 96,282 | 235,557 | 4,738,478 |
Effect of movement in exchange rates | 2,667 | 9,086 | 322 | 1,226 | 13,301 |
Additions | 30,213 | 31,707 | 5,917 | 342,740 | 410,577 |
Disposals | -38 | -4,035 | -173 | -28 | -4,274 |
Transfer to/from investment property | - | - | - | -9,708 | -9,708 |
Reclassifications | 46,185 | 70,830 | 3,329 | -123,340 | -2,995 |
Write offs | -252 | -6,820 | -241 | -504 | -7,817 |
Balance as at 31 December 2024 | 1,251,575 | 3,334,607 | 105,436 | 445,943 | 5,137,561 |
Accumulated depreciation & impairment losses | |||||
Balance as at 1 January 2024 | -416,096 | -1,867,199 | -74,202 | -4,983 | -2,362,480 |
Effect of movement in exchange rates | -804 | -6,618 | -294 | - | -7,716 |
Depreciation | -22,391 | -95,574 | -7,431 | - | -125,396 |
Disposals | 34 | 3,217 | 69 | - | 3,320 |
Write offs | 94 | 5,481 | 232 | - | 5,807 |
Reversal of previously recognized impairment loss | 9,202 | 263 | - | - | 9,464 |
Impairment loss | -101 | -846 | - | - | -947 |
Reclassifications | -2,399 | -586 | -75 | - | -3,059 |
Balance as at 31 December 2024 | -432,462 | -1,961,862 | -81,701 | -4,983 | -2,481,007 |
Carrying amount as at 31 December 2024 | 819,114 | 1,372,745 | 23,735 | 440,961 | 2,656,555 |
Amounts in EUR thousands | Land, plants & other buildings | Machinery & transportation equipment | Furniture & other equipment | PP&E under construction | Total |
Cost | |||||
Balance as at 1 January 2023 | 1,145,277 | 3,115,012 | 84,159 | 170,654 | 4,515,102 |
Effect of movement in exchange rates | 1,165 | 3,510 | 3 | -358 | 4,320 |
Additions | 18,971 | 24,175 | 8,282 | 233,147 | 284,574 |
Disposals | -92 | -3,978 | -286 | -791 | -5,148 |
Transfer to/from investment property | -20,573 | - | - | - | -20,573 |
Reclassifications | 31,232 | 131,363 | 9,701 | -163,564 | 8,733 |
Write offs | -3,090 | -36,243 | -5,424 | -3,530 | -48,287 |
Reclassification to assets held for sale | -89 | - | -153 | - | -242 |
Balance as at 31 December 2023 | 1,172,800 | 3,233,840 | 96,282 | 235,557 | 4,738,478 |
Accumulated depreciation & impairment losses | |||||
Balance as at 1 January 2023 | -406,935 | -1,803,569 | -68,580 | -4,983 | -2,284,066 |
Effect of movement in exchange rates | -573 | -2,487 | -14 | - | -3,074 |
Depreciation | -22,787 | -98,902 | -6,233 | - | -127,922 |
Disposals | 24 | 3,310 | 233 | - | 3,567 |
Write offs | 3,087 | 35,274 | 5,420 | - | 43,781 |
Reversal of previously recognized impairment loss | 10,634 | 278 | - | - | 10,912 |
Transfer to/from investment property | 2,876 | - | - | - | 2,876 |
Impairment loss | -2,765 | -1,180 | -4 | - | -3,949 |
Reclassifications | 342 | 77 | -5,029 | - | -4,610 |
Reclassification to assets held for sale | 1 | - | 4 | - | 4 |
Balance as at 31 December 2023 | -416,096 | -1,867,199 | -74,202 | -4,983 | -2,362,480 |
Carrying amount as at 31 December 2023 | 756,704 | 1,366,640 | 22,080 | 230,574 | 2,375,998 |
The net amount of EUR 6 million in \u2018Reclassifications\u2019 movement mainly concerns reclassifications between property, plant and equipment, intangibles and right of use assets.
B. Security
Property, plant & equipment with a carrying amount of EUR 1,386 million are mortgaged as security for borrowings received by Viohalco\u2019s companies (see Note 26).
C. Property, plant and equipment under construction
The most important additions in property, plant and equipment under construction as of 31 December 2024 concern the following:
Aluminium segmentinvestments mainly related to investments at the extrusions plant in Bulgaria for the manufacturing of automotive products and other operational improvements across the aluminium plants in Greece and the UK.
Copper segment investments mainly related to rolling mill production capacity increase and the product mix improvement, enabling the manufacturing of products of new widths and thicknesses.
Regarding the cables segment, ongoing investments in the cables plants in Corinth,Thiva and Eleonas Viotia, Greece and capital expenditure to support the construction of a land cables factory in the USA.
Steel segment investments mainly concerning operational improvements across steel plants, focusing on environmental compliance and resources usage efficiency.
Other segment investments are mainly related to the additions in Thisvi port in Greece by Viohalco subsidiary Diavipethiv and in other investments by the rest of the segments\u2019 subsidiares.
Capitalized borrowing costs related to property, plant and equipment under construction amount to EUR 6.0 million (2023: EUR 4.4 million), which have been calculated using an average capitalization rate of 5.7% (2023: 5.1%).
Additions in assets under construction also include capitalized employee benefits equal to EUR 7,730 thousand (2023: EUR 4,028 thousand).
D. Transfer to and from investment property
During 2024, Property plant and plant and equipment amounting of EUR 9.7 million were transferred to investment property.
E. Impairment loss of property, plant and equipment
On 31 December 2024, an impairment test was performed for each Cash Generating Unit (further CGU) for which indications of impairment loss existed as at 31 December 2024 concerning subsidiaries from steel segment. The identified indications of impairment concerned the losses incurred by certain CGUs over the last years. For the calculation of recoverable amount per CGU, cash flow projections based on a period of five years were used. The results of this test concluded that the property, plant and equipment used by these CGUs were not impaired at 31 December 2024, since the recoverable amount of each CGU exceeded the respective carrying amount.
In addition, impairment losses of EUR 0.9 million where recognised mainly in the aluminium (EUR 0.4 million) and cables segments (EUR 0.5 million) for specific fixed assets that indications of impairment were existed. The recoverable amount of related assets amounted EUR 1.3 million.
During 2024, assets with NBV equal to EUR 2.0 million (2023: EUR 4.5 million) were written off since they are no longer used by Viohalco companies and they are not expected to bring economic benefits in the future since they have became obsolete.
In addition, impairment tests were performed on real estate assets where indications of impairment exist, either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. Valuation techniques and the results relating to investment properties are outlined in note 19.
F. Reversal of impairment loss of property, plant and equipment
A test has also been performed for CGUs, for which indications for reversal of previously recorded impairment loss existed at 31 December 2024. These indications concerned the improvement of expected performance of certain CGUs over the following years. However, the result of the test was that no impairment loss should be reversed in 2024.
In addition, previously recognized impairment losses of EUR 9,5 million were reversed (recoverable amount EUR 38,1 million) and included in the line \u201cOther Income\u201d of the consolidated statement of profit or loss, related to Investment property that has been transferred to PP&E in the previous years. Valuation technique applied was \u201cIncome Approach\u201d. Valuation techniques and the results relating to investment properties are outlined in note 19.
For segmental classification purposes, reversal of impairment losses reported in real estate segment.
C. Property, plant and equipment under construction
The most important additions in property, plant and equipment under construction as of 31 December 2024 concern the following:
Aluminium segmentinvestments mainly related to investments at the extrusions plant in Bulgaria for the manufacturing of automotive products and other operational improvements across the aluminium plants in Greece and the UK.
Copper segment investments mainly related to rolling mill production capacity increase and the product mix improvement, enabling the manufacturing of products of new widths and thicknesses.
Regarding the cables segment, ongoing investments in the cables plants in Corinth,Thiva and Eleonas Viotia, Greece and capital expenditure to support the construction of a land cables factory in the USA.
Steel segment investments mainly concerning operational improvements across steel plants, focusing on environmental compliance and resources usage efficiency.
Other segment investments are mainly related to the additions in Thisvi port in Greece by Viohalco subsidiary Diavipethiv and in other investments by the rest of the segments\u2019 subsidiares.
Capitalized borrowing costs related to property, plant and equipment under construction amount to EUR 6.0 million (2023: EUR 4.4 million), which have been calculated using an average capitalization rate of 5.7% (2023: 5.1%).
Additions in assets under construction also include capitalized employee benefits equal to EUR 7,730 thousand (2023: EUR 4,028 thousand).
", "dimensions": { "concept": "ifrs-full:DisclosureOfBorrowingCostsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__227": { "value": "18. Goodwill and intangible assets
A. Reconciliation of carrying amount
Amounts in EUR thousands | Goodwill | Development costs | Trademarks and licenses | Software | Other | Total |
Cost | ||||||
Balance as at 1 January 2024 | 1,500 | 537 | 43,747 | 67,951 | 3,248 | 116,982 |
Effect of movement in exchange rates | - | - | - | 9 | -1 | 8 |
Additions | - | - | 2,422 | 4,031 | - | 6,454 |
Write-offs | - | - | - | -2 | - | -2 |
Reclassifications | - | - | 4,539 | 2,791 | 115 | 7,445 |
Balance as at 31 December 2024 | 1,500 | 537 | 50,707 | 74,781 | 3,362 | 130,887 |
Accumulated amortization and impairment loss | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
Balance as at 1 January 2024 | -1,500 | -512 | -16,467 | -46,790 | -1,184 | -66,453 |
Effect of movement in exchange rates | - | - | - | -5 | 1 | -5 |
Amortization | - | -8 | -3,184 | -3,761 | -190 | -7,143 |
Write-offs | - | - | - | 2 | - | 2 |
Balance as at 31 December 2024 | -1,500 | -520 | -19,652 | -50,555 | -1,373 | -73,600 |
Carrying amount as at 31 December 2024 | - | 17 | 31,056 | 24,225 | 1,989 | 57,287 |
Amounts in EUR thousands | Goodwill | Development costs | Trademarks and licenses | Software | Other | Total |
Cost | ||||||
Balance as at 1 January 2023 | 1,500 | 537 | 39,569 | 60,619 | 3,138 | 105,363 |
Effect of movement in exchange rates | - | - | - | -49 | -5 | -54 |
Additions | - | - | 1,940 | 5,023 | 112 | 7,075 |
Write-offs | - | - | - | -8 | - | -8 |
Loss of Control/Disposal of subsidiary | - | - | -5 | -6 | - | -11 |
Reclassifications | - | - | 2,243 | 2,373 | 3 | 4,619 |
Balance as at 31 December 2023 | 1,500 | 537 | 43,747 | 67,951 | 3,248 | 116,982 |
Accumulated amortization and impairment loss | ||||||
Balance as at 1 January 2023 | -1,500 | -505 | -14,004 | -44,956 | -1,022 | -61,986 |
Effect of movement in exchange rates | - | - | - | 37 | 2 | 40 |
Amortization | - | -8 | -2,427 | -1,917 | -164 | -4,515 |
Write-offs | - | - | - | 8 | - | 8 |
Reclassifications | - | - | -37 | 37 | - | - |
Balance as at 31 December 2023 | -1,500 | -512 | -16,467 | -46,790 | -1,184 | -66,453 |
Carrying amount as at 31 December 2023 | - | 25 | 27,279 | 21,161 | 2,065 | 50,529 |
B. Amortisation
The amortization of trademarks and licenses with finite useful lives, software programs and other intangible assets is allocated to the cost of inventory and is included in \u2019Cost of sales\u2018 when inventory is sold, as trademarks and licenses and software programs are mainly used directly for the production of products and they are considered as production overheads. The amortization of intangible assets not used for production is allocated to administrative expenses.
C. Reclassifications
Reclassifications mainly relate to intangible assets recorded initially in projects under construction (in property, plant and equipment) and upon the completion of the project, they are transferred to the column which describes their nature.
D. Goodwill
No additional Goodwill has been recognized during 2024.
E. Intangible assets with indefinite useful lives
All intangible assets have finite useful life (see Note 5.10), except for the following assets, included in trademarks and licenses category:
i. Intangible assets recognized for the CGU \u201cFulgor\u201d
a. Trade Name \u201cFulgor\u201d (carrying amount of EUR 1.4 million on 31 December 2024)
It relates to the sector of medium voltage submarine cables and underground high voltage cables that Fulgor was operating prior to its acquisition by Hellenic Cables in 2011 and which has revealed significant economic benefits. Based on the analysis of relevant factors (e.g., knowledge, no longstanding engagement with a wide range of clientele, future development of the sector), the useful life of the brand was considered indefinite.
b.\tLicense of Port use in Soussaki, Corinth (carrying amount of EUR 8.3 million as at 31 December 2024)
Fulgor holds a license for permanent and exclusive use of a port located in the premises of the factory in Soussaki, Corinth. The port is necessary for the production and transportation of submarine cables of medium and high voltage. Since the acquisition of the subsidiary, significant investments for the upgrade and expansion of production capacity of medium and high-voltage submarine cables took place. The useful life of the asset is considered indefinite since the right of use of these port facilities is for an indefinite period.
ii. Intangible assets recognized for the CGU \u201cReynolds\u201d (carrying amount of EUR 1.6 million as at 31 December 2024).
Upon the completion of the acquisition of Reynolds Cuivre by Genecos, an intangible asset related to the brand name \u201cReynolds\u201d was recognized, as significant economic benefits are expected from its use. Based on the analysis of relevant factors (e.g. knowledge of the relevant market, wide range of clientele, expected future developments), the useful life of the brand was considered indefinite.
F. Impairment testing
(a)\tIntangible assets recognized for the CGU \u201cFulgor\u201d
As these intangible assets do not generate independent cash inflows, it was considered appropriate to carry out the impairment test on the basis of the Cash Generating Unit (CGU) of Fulgor submarine cables production plant, which incorporates these assets. To evaluate the value in use, cash flow projections based on estimates by management covering a five-year period (2025 \u2013 2029) were used. These estimates take into consideration the contracts already signed, as well as contracts estimated to be awarded in Greece and abroad.
The submarine cables CGU operates as a project-based business. Therefore, assumptions related to revenue and profitability growth are based on the contracts already signed, as well as those estimated to be undertaken in the forthcoming period. The main assumptions regarding the operations of submarine cables CGU and the projects to be executed within the five-year period are:
High-capacity utilization of Corinth plant owned by Fulgor, as the one observed during the last 4 years, based on contracts already awarded and those expected given the tendering activity. Given the existing backlog and the growth of renewables business in Europe and interconnection projects around the world, which are the most significant drivers in the attractive outlook for the offshore power generation market, the continuously high level of activity is expected to be retained throughout the period 2025-2029.
Capital expenditure of approx. EUR 183 million in the following 5 years, to cover estimated production and capacity needs. Capital expenditure reflects investments for maintenance as well as organic growth. For the terminal period, investments are set equal to depreciation.
The compound annual growth rate of revenue from offshore business for the five-year period is set to ca. 19% attributable to the assignment of new projects mainly in Greece and North Europe.
The EBITDA margin per offshore project is assumed in the range of 15%-25% of revenue. Estimated profitability per project varies due to different types of cables required, technical specifications, geographic region and the project\u2019s timeframe.
The compound annual growth rate of fixed operating expenses is assumed equal to ca. 5.8% for the five-year period.
Cash flows after the first five years were calculated using an estimated long term growth rate of 1.31%, which mainly reflects management\u2019s estimates for the world economy as well as long-term growth prospects of the offshore cable sector. The pre-tax rate used to discount these cash flows was 10.33% (2023: 11.34%), based on the following assumptions:
The risk-free rate was based on AAA European bond yields.
The country risk calculations were based on the expected future sales mix and the fact that the business unit is based in Greece.
The market risk premium was assumed equal to 3.94% (2023: 4.84%).
Commodity prices for copper and aluminium are intrinsically part of the impairment test assumptions; the metal price hedging activities undertaken, though, and the customized nature of the products sold by Fulgor, suggest that the value of the business unit is not significantly affected by fluctuations in commodity prices. Hence, a neutral result from metal price fluctuations is assumed in the context of the impairment test.
The results of this test indicated that the recoverable amount on 31 December 2024 exceeds the carrying amount of the CGU (equal to EUR 498 million) by EUR 1,004 million.
A sensitivity analysis was carried out on the key assumptions of the model (discount rates and growth in perpetuity), to examine the adequacy of the above headroom. Sensitivity analysis results indicated that the recoverable amount is comfortably exceeds the carrying value of the CGU. Assumptions may change as follows so as the recoverable amount equals the carrying amount:
Assumptions used | Change in rates (percentage points change) required for the recoverable amount to equal the carrying amount | |
Discount rate | 10.33% | + 10.9 ppc |
Terminal growth | 1.31% | - 47.1 ppc |
(b) Intangible assets recognized for the CGU \u201cReynolds\u201d
The recoverable amount of the CGU that includes this intangible asset (Reynolds Cuivre S.A.) was estimated based on the present value of the future cash flows expected to be derived from the CGU (value in use).
Cash flows after the first five years were calculated using an estimated growth rate of 1%, which reflects management\u2019s estimates for the growth prospects for the market. The after-tax rate used to discount these cash flows is 7.9% for the five year period and for the terminal value and was based on the following:
Risk free rate at 2.49%.
The market risk premium (including the country risk for operating in France) was determined at 4.5%.
Additional hurdle rate of 1%.
Sales revenue is estimated to grow at a 3.9% cumulative annual growth rate for the first five years, while operating earnings grow at a 1.3% rate. Average annual capex for the same period equals to EUR 143 thousand.
The results of this test indicated that the recoverable amount as at 31 December 2024 exceeds the carrying value of the CGU amounting to EUR 9.8 million by EUR 11 million.
Sensitivity and scenario analysis was carried out on the assumptions of the DCF model (sales growth, profitability, working capital requirements, and discount rates), to examine the adequacy of the headroom. The headroom was deemed adequate even under extremely stressed scenarios. A combination of negative growth, depressed margins and high working capital requirements and discount rates would be required for headroom to turn negative. Such a scenario was deemed unrealistic.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsAndGoodwillExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__228-1": { "value": "18. Goodwill and intangible assets
A. Reconciliation of carrying amount
Amounts in EUR thousands | Goodwill | Development costs | Trademarks and licenses | Software | Other | Total |
Cost | ||||||
Balance as at 1 January 2024 | 1,500 | 537 | 43,747 | 67,951 | 3,248 | 116,982 |
Effect of movement in exchange rates | - | - | - | 9 | -1 | 8 |
Additions | - | - | 2,422 | 4,031 | - | 6,454 |
Write-offs | - | - | - | -2 | - | -2 |
Reclassifications | - | - | 4,539 | 2,791 | 115 | 7,445 |
Balance as at 31 December 2024 | 1,500 | 537 | 50,707 | 74,781 | 3,362 | 130,887 |
Accumulated amortization and impairment loss | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
Balance as at 1 January 2024 | -1,500 | -512 | -16,467 | -46,790 | -1,184 | -66,453 |
Effect of movement in exchange rates | - | - | - | -5 | 1 | -5 |
Amortization | - | -8 | -3,184 | -3,761 | -190 | -7,143 |
Write-offs | - | - | - | 2 | - | 2 |
Balance as at 31 December 2024 | -1,500 | -520 | -19,652 | -50,555 | -1,373 | -73,600 |
Carrying amount as at 31 December 2024 | - | 17 | 31,056 | 24,225 | 1,989 | 57,287 |
Amounts in EUR thousands | Goodwill | Development costs | Trademarks and licenses | Software | Other | Total |
Cost | ||||||
Balance as at 1 January 2023 | 1,500 | 537 | 39,569 | 60,619 | 3,138 | 105,363 |
Effect of movement in exchange rates | - | - | - | -49 | -5 | -54 |
Additions | - | - | 1,940 | 5,023 | 112 | 7,075 |
Write-offs | - | - | - | -8 | - | -8 |
Loss of Control/Disposal of subsidiary | - | - | -5 | -6 | - | -11 |
Reclassifications | - | - | 2,243 | 2,373 | 3 | 4,619 |
Balance as at 31 December 2023 | 1,500 | 537 | 43,747 | 67,951 | 3,248 | 116,982 |
Accumulated amortization and impairment loss | ||||||
Balance as at 1 January 2023 | -1,500 | -505 | -14,004 | -44,956 | -1,022 | -61,986 |
Effect of movement in exchange rates | - | - | - | 37 | 2 | 40 |
Amortization | - | -8 | -2,427 | -1,917 | -164 | -4,515 |
Write-offs | - | - | - | 8 | - | 8 |
Reclassifications | - | - | -37 | 37 | - | - |
Balance as at 31 December 2023 | -1,500 | -512 | -16,467 | -46,790 | -1,184 | -66,453 |
Carrying amount as at 31 December 2023 | - | 25 | 27,279 | 21,161 | 2,065 | 50,529 |
B. Amortisation
The amortization of trademarks and licenses with finite useful lives, software programs and other intangible assets is allocated to the cost of inventory and is included in \u2019Cost of sales\u2018 when inventory is sold, as trademarks and licenses and software programs are mainly used directly for the production of products and they are considered as production overheads. The amortization of intangible assets not used for production is allocated to administrative expenses.
C. Reclassifications
Reclassifications mainly relate to intangible assets recorded initially in projects under construction (in property, plant and equipment) and upon the completion of the project, they are transferred to the column which describes their nature.
E. Intangible assets with indefinite useful lives
All intangible assets have finite useful life (see Note 5.10), except for the following assets, included in trademarks and licenses category:
i. Intangible assets recognized for the CGU \u201cFulgor\u201d
a. Trade Name \u201cFulgor\u201d (carrying amount of EUR 1.4 million on 31 December 2024)
It relates to the sector of medium voltage submarine cables and underground high voltage cables that Fulgor was operating prior to its acquisition by Hellenic Cables in 2011 and which has revealed significant economic benefits. Based on the analysis of relevant factors (e.g., knowledge, no longstanding engagement with a wide range of clientele, future development of the sector), the useful life of the brand was considered indefinite.
b.\tLicense of Port use in Soussaki, Corinth (carrying amount of EUR 8.3 million as at 31 December 2024)
Fulgor holds a license for permanent and exclusive use of a port located in the premises of the factory in Soussaki, Corinth. The port is necessary for the production and transportation of submarine cables of medium and high voltage. Since the acquisition of the subsidiary, significant investments for the upgrade and expansion of production capacity of medium and high-voltage submarine cables took place. The useful life of the asset is considered indefinite since the right of use of these port facilities is for an indefinite period.
ii. Intangible assets recognized for the CGU \u201cReynolds\u201d (carrying amount of EUR 1.6 million as at 31 December 2024).
Upon the completion of the acquisition of Reynolds Cuivre by Genecos, an intangible asset related to the brand name \u201cReynolds\u201d was recognized, as significant economic benefits are expected from its use. Based on the analysis of relevant factors (e.g. knowledge of the relevant market, wide range of clientele, expected future developments), the useful life of the brand was considered indefinite.
F. Impairment testing
(a)\tIntangible assets recognized for the CGU \u201cFulgor\u201d
As these intangible assets do not generate independent cash inflows, it was considered appropriate to carry out the impairment test on the basis of the Cash Generating Unit (CGU) of Fulgor submarine cables production plant, which incorporates these assets. To evaluate the value in use, cash flow projections based on estimates by management covering a five-year period (2025 \u2013 2029) were used. These estimates take into consideration the contracts already signed, as well as contracts estimated to be awarded in Greece and abroad.
The submarine cables CGU operates as a project-based business. Therefore, assumptions related to revenue and profitability growth are based on the contracts already signed, as well as those estimated to be undertaken in the forthcoming period. The main assumptions regarding the operations of submarine cables CGU and the projects to be executed within the five-year period are:
High-capacity utilization of Corinth plant owned by Fulgor, as the one observed during the last 4 years, based on contracts already awarded and those expected given the tendering activity. Given the existing backlog and the growth of renewables business in Europe and interconnection projects around the world, which are the most significant drivers in the attractive outlook for the offshore power generation market, the continuously high level of activity is expected to be retained throughout the period 2025-2029.
Capital expenditure of approx. EUR 183 million in the following 5 years, to cover estimated production and capacity needs. Capital expenditure reflects investments for maintenance as well as organic growth. For the terminal period, investments are set equal to depreciation.
The compound annual growth rate of revenue from offshore business for the five-year period is set to ca. 19% attributable to the assignment of new projects mainly in Greece and North Europe.
The EBITDA margin per offshore project is assumed in the range of 15%-25% of revenue. Estimated profitability per project varies due to different types of cables required, technical specifications, geographic region and the project\u2019s timeframe.
The compound annual growth rate of fixed operating expenses is assumed equal to ca. 5.8% for the five-year period.
Cash flows after the first five years were calculated using an estimated long term growth rate of 1.31%, which mainly reflects management\u2019s estimates for the world economy as well as long-term growth prospects of the offshore cable sector. The pre-tax rate used to discount these cash flows was 10.33% (2023: 11.34%), based on the following assumptions:
The risk-free rate was based on AAA European bond yields.
The country risk calculations were based on the expected future sales mix and the fact that the business unit is based in Greece.
The market risk premium was assumed equal to 3.94% (2023: 4.84%).
Commodity prices for copper and aluminium are intrinsically part of the impairment test assumptions; the metal price hedging activities undertaken, though, and the customized nature of the products sold by Fulgor, suggest that the value of the business unit is not significantly affected by fluctuations in commodity prices. Hence, a neutral result from metal price fluctuations is assumed in the context of the impairment test.
The results of this test indicated that the recoverable amount on 31 December 2024 exceeds the carrying amount of the CGU (equal to EUR 498 million) by EUR 1,004 million.
A sensitivity analysis was carried out on the key assumptions of the model (discount rates and growth in perpetuity), to examine the adequacy of the above headroom. Sensitivity analysis results indicated that the recoverable amount is comfortably exceeds the carrying value of the CGU. Assumptions may change as follows so as the recoverable amount equals the carrying amount:
Assumptions used | Change in rates (percentage points change) required for the recoverable amount to equal the carrying amount | |
Discount rate | 10.33% | + 10.9 ppc |
Terminal growth | 1.31% | - 47.1 ppc |
(b) Intangible assets recognized for the CGU \u201cReynolds\u201d
The recoverable amount of the CGU that includes this intangible asset (Reynolds Cuivre S.A.) was estimated based on the present value of the future cash flows expected to be derived from the CGU (value in use).
Cash flows after the first five years were calculated using an estimated growth rate of 1%, which reflects management\u2019s estimates for the growth prospects for the market. The after-tax rate used to discount these cash flows is 7.9% for the five year period and for the terminal value and was based on the following:
Risk free rate at 2.49%.
The market risk premium (including the country risk for operating in France) was determined at 4.5%.
Additional hurdle rate of 1%.
Sales revenue is estimated to grow at a 3.9% cumulative annual growth rate for the first five years, while operating earnings grow at a 1.3% rate. Average annual capex for the same period equals to EUR 143 thousand.
The results of this test indicated that the recoverable amount as at 31 December 2024 exceeds the carrying value of the CGU amounting to EUR 9.8 million by EUR 11 million.
Sensitivity and scenario analysis was carried out on the assumptions of the DCF model (sales growth, profitability, working capital requirements, and discount rates), to examine the adequacy of the headroom. The headroom was deemed adequate even under extremely stressed scenarios. A combination of negative growth, depressed margins and high working capital requirements and discount rates would be required for headroom to turn negative. Such a scenario was deemed unrealistic.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIntangibleAssetsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__230-1": { "value": "18. Goodwill and intangible assets
A. Reconciliation of carrying amount
Amounts in EUR thousands | Goodwill | Development costs | Trademarks and licenses | Software | Other | Total |
Cost | ||||||
Balance as at 1 January 2024 | 1,500 | 537 | 43,747 | 67,951 | 3,248 | 116,982 |
Effect of movement in exchange rates | - | - | - | 9 | -1 | 8 |
Additions | - | - | 2,422 | 4,031 | - | 6,454 |
Write-offs | - | - | - | -2 | - | -2 |
Reclassifications | - | - | 4,539 | 2,791 | 115 | 7,445 |
Balance as at 31 December 2024 | 1,500 | 537 | 50,707 | 74,781 | 3,362 | 130,887 |
Accumulated amortization and impairment loss | \u00a0 | \u00a0 | \u00a0 | \u00a0 | ||
Balance as at 1 January 2024 | -1,500 | -512 | -16,467 | -46,790 | -1,184 | -66,453 |
Effect of movement in exchange rates | - | - | - | -5 | 1 | -5 |
Amortization | - | -8 | -3,184 | -3,761 | -190 | -7,143 |
Write-offs | - | - | - | 2 | - | 2 |
Balance as at 31 December 2024 | -1,500 | -520 | -19,652 | -50,555 | -1,373 | -73,600 |
Carrying amount as at 31 December 2024 | - | 17 | 31,056 | 24,225 | 1,989 | 57,287 |
Amounts in EUR thousands | Goodwill | Development costs | Trademarks and licenses | Software | Other | Total |
Cost | ||||||
Balance as at 1 January 2023 | 1,500 | 537 | 39,569 | 60,619 | 3,138 | 105,363 |
Effect of movement in exchange rates | - | - | - | -49 | -5 | -54 |
Additions | - | - | 1,940 | 5,023 | 112 | 7,075 |
Write-offs | - | - | - | -8 | - | -8 |
Loss of Control/Disposal of subsidiary | - | - | -5 | -6 | - | -11 |
Reclassifications | - | - | 2,243 | 2,373 | 3 | 4,619 |
Balance as at 31 December 2023 | 1,500 | 537 | 43,747 | 67,951 | 3,248 | 116,982 |
Accumulated amortization and impairment loss | ||||||
Balance as at 1 January 2023 | -1,500 | -505 | -14,004 | -44,956 | -1,022 | -61,986 |
Effect of movement in exchange rates | - | - | - | 37 | 2 | 40 |
Amortization | - | -8 | -2,427 | -1,917 | -164 | -4,515 |
Write-offs | - | - | - | 8 | - | 8 |
Reclassifications | - | - | -37 | 37 | - | - |
Balance as at 31 December 2023 | -1,500 | -512 | -16,467 | -46,790 | -1,184 | -66,453 |
Carrying amount as at 31 December 2023 | - | 25 | 27,279 | 21,161 | 2,065 | 50,529 |
D. Goodwill
No additional Goodwill has been recognized during 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoodwillExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__239": { "value": "19. Investment property
A. Reconciliation of carrying amount
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 338,279 | 316,024 |
Acquisitions | 16,505 | 15,853 |
Disposals | -53 | -527 |
Write offs | -19 | - |
(Impairment losses) / Reversal of impairment losses | -6,857 | -3,118 |
Modifications | 206 | 297 |
Transfers from property, plant and equipment | 9,708 | 17,697 |
Reclassifications | - | -2,451 |
Depreciation | -5,391 | -5,495 |
Balance as at 31 December | 352,379 | 338,279 |
Gross carrying amount | 437,349 | 411,082 |
Accumulated depreciation and impairment losses | -84,971 | -72,803 |
Net carrying amount as at 31 December | 352,379 | 338,279 |
Investment property comprises of a number of commercial and industrial properties that are either leased to third parties currently or will be in the foreseeable future. Each of these leases is indexed to consumer prices.
During 2024, Viohalco invested an amount of EUR 17 million (EUR 16 million in 2023) for the development and improvement of investment properties.
B. Measurement of fair value \u2013Impairment loss and subsequent reversal
On December 31st 2024, an impairment test was performed on all real estate assets (individual assets), either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. The results relating to owner occupied properties are outlined in note 17.
For investment property assets, an impairment loss of EUR 9.7 million was recorded and included in the line \u2019Other expense\u2018 of the consolidated statement of profit or loss. Impairment losses relate primarily to land and buildings, and the recoverable amount was based on its fair value less costs of disposal. The fair value of these properties was determined by external, independent property valuers, having appropriate recognized professional qualifications and recent experience in the location and category of the properties being valued. Valuation techniques are described in detail in the next paragraph. For segmental classification purposes, the impairment loss (recoverable amount EUR 38 million) was reported in real estate segment.
Asset valuations were also used to identify if previously recognized impairment losses could be reversed. As a result, EUR 2.8 million were reversed and included in the line \u2019Other Income\u2018 of the consolidated statement of profit or loss. The recoverable amount of these assets as at 31 December 2024 was EUR 88 million and they relate to the real estate segment.
The accumulated impairment losses carried forward as at 31 December 2024, amounts to EUR 50.3 million (31 December 2023: EUR 43.4 million).
The fair value of all properties reported in the line \u2019Investment property\u2018, as at 31 December 2024, is EUR 500 million (31 December 2023: EUR 484 million).
Valuation techniques and significant unobservable inputs (Level 2 & 3)
The fair value measurement for investment property has been categorized as a Level 2 & 3 regarding fair value hierarchy, based on the inputs to the valuation techniques used.
Valuations methods used to determine the fair value of these properties were reflecting the highest and best possible use.
-\tFor buildings currently rented or expected to be rented out in the foreseeable future, the income approach (either Discounted Cash Flow or Direct capitalization) method was used. DCF method considered the present value of net cash flows to be generated from each property, taking into account expected rental growth rate, void periods, occupancy rate, lease incentive costs such as rent-free periods and other relevant costs/fees obliged to be settled by the owning entity. The expected net cash flows are discounted using risk-adjusted discount rates that ranged between 7,46% - 12,50% and exit yields that ranged between 4,00-11,00%. Among other factors, the discount rate estimation considers the quality of each building, its location, tenant credit quality, lease terms and the expected market return. The estimated fair value would decrease if either the expected market rental growth was lower or the risk-adjusted discount rates were higher. Direct capitalization uses an All-Risk Yield in order for the current annual estimated rental value to be capitalized. ARY ranged between 4,00% - 12,00% and offers a holistic assessment of the property market\u2019s general condition.
-\tFor land plots and buildings, which were under construction and which are intended to be used as investment property in the future, the residual method was primarily used. The fair value determined by this method reflects the value of the property in its current condition.
-\tFor the utilitisation of a secondary valuation methodology, the comparative method (market approach) was appraised for the vast majority of the properties. According to this method the valuer estimates the market value of the subject asset by comparing the factors that mostly affect it. Such factors can be location, size, quality of construction etc. This method is based on estimation of the market price and what has been paid for similar properties under similar economic conditions. Each property is valued at a price at which similar ones in the area have recently sold with a subjective differential added (or subtracted) to adjust for the unique characteristics of the property that make it different from the benchmark properties, such as location, size, accessibility etc.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentPropertyExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__241-1": { "value": "B. Measurement of fair value \u2013Impairment loss and subsequent reversal
On December 31st 2024, an impairment test was performed on all real estate assets (individual assets), either owner occupied or held as investment property. The tests were carried out in order to address the risk of negative changes in the fair value of properties and respond if necessary. The results relating to owner occupied properties are outlined in note 17.
For investment property assets, an impairment loss of EUR 9.7 million was recorded and included in the line \u2019Other expense\u2018 of the consolidated statement of profit or loss. Impairment losses relate primarily to land and buildings, and the recoverable amount was based on its fair value less costs of disposal. The fair value of these properties was determined by external, independent property valuers, having appropriate recognized professional qualifications and recent experience in the location and category of the properties being valued. Valuation techniques are described in detail in the next paragraph. For segmental classification purposes, the impairment loss (recoverable amount EUR 38 million) was reported in real estate segment.
Asset valuations were also used to identify if previously recognized impairment losses could be reversed. As a result, EUR 2.8 million were reversed and included in the line \u2019Other Income\u2018 of the consolidated statement of profit or loss. The recoverable amount of these assets as at 31 December 2024 was EUR 88 million and they relate to the real estate segment.
The accumulated impairment losses carried forward as at 31 December 2024, amounts to EUR 50.3 million (31 December 2023: EUR 43.4 million).
The fair value of all properties reported in the line \u2019Investment property\u2018, as at 31 December 2024, is EUR 500 million (31 December 2023: EUR 484 million).
Valuation techniques and significant unobservable inputs (Level 2 & 3)
The fair value measurement for investment property has been categorized as a Level 2 & 3 regarding fair value hierarchy, based on the inputs to the valuation techniques used.
Valuations methods used to determine the fair value of these properties were reflecting the highest and best possible use.
-\tFor buildings currently rented or expected to be rented out in the foreseeable future, the income approach (either Discounted Cash Flow or Direct capitalization) method was used. DCF method considered the present value of net cash flows to be generated from each property, taking into account expected rental growth rate, void periods, occupancy rate, lease incentive costs such as rent-free periods and other relevant costs/fees obliged to be settled by the owning entity. The expected net cash flows are discounted using risk-adjusted discount rates that ranged between 7,46% - 12,50% and exit yields that ranged between 4,00-11,00%. Among other factors, the discount rate estimation considers the quality of each building, its location, tenant credit quality, lease terms and the expected market return. The estimated fair value would decrease if either the expected market rental growth was lower or the risk-adjusted discount rates were higher. Direct capitalization uses an All-Risk Yield in order for the current annual estimated rental value to be capitalized. ARY ranged between 4,00% - 12,00% and offers a holistic assessment of the property market\u2019s general condition.
-\tFor land plots and buildings, which were under construction and which are intended to be used as investment property in the future, the residual method was primarily used. The fair value determined by this method reflects the value of the property in its current condition.
-\tFor the utilitisation of a secondary valuation methodology, the comparative method (market approach) was appraised for the vast majority of the properties. According to this method the valuer estimates the market value of the subject asset by comparing the factors that mostly affect it. Such factors can be location, size, quality of construction etc. This method is based on estimation of the market price and what has been paid for similar properties under similar economic conditions. Each property is valued at a price at which similar ones in the area have recently sold with a subjective differential added (or subtracted) to adjust for the unique characteristics of the property that make it different from the benchmark properties, such as location, size, accessibility etc.
21. Other investments
Viohalco designates the investments shown below as equity securities at FVOCI, as they represent investments that Viohalco intends to hold for the long term strategic purposes.
The movement of equity securities, as well as their analysis, is presented below:
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 33,686 | 8,405 |
Additions | 277 | 28,904 |
Disposals | -2,226 | -134 |
Impairment loss | - | -54 |
Impairment loss reversal | - | 2 |
Change in fair value through profit or loss | 7,462 | -3,266 |
Change in fair value through OCI | -233 | -151 |
Other changes | - | -20 |
Balance as at 31 December | 38,966 | 33,686 |
Amounts in EUR thousands | 2024 | 2023 |
Listed securities | ||
-Greek equity instruments | 283 | 2,414 |
-International equity instruments | 2,972 | 3,205 |
Unlisted securities | ||
-Greek equity instruments | 34,082 | 26,660 |
-International equity instruments | 849 | 849 |
-Mutual funds | 780 | 557 |
\u00a0Total | 38,966 | 33,686 |
The investments for which the fair value cannot be estimated were valued at cost. For the calculation of the fair value please see note 30 Financial assets and risk management. The fair value is being recorded through OCI statement (FVTOCI).
On April, 7th,2023, the merger by absorption of Etem Commercial SA, subsidiary of ElvalHalcor, by the company Cosmos Aluminium SA has been approved. As a result of the completion of the transaction, ElvalHalcor holds a minority stake of 15% in the share capital of Cosmos Aluminium SA and classified this investment to \u201cOther investments\u201d.
The investment in Cosmos Aluminium SA amounted EUR 30.5 million at year end, as it has been revalued by EUR 7.5 million, and the respective revaluation net gain has been included in the consolidated statement of profit and loss and measured in the fair value through profit and loss.
Additionally, based on the purchase agreement, the shareholders of ElvalHalcor granted Cosmos Aluminium SA with a put option to purchase the remaining outstanding capital stock of Cosmos Aluminium SA. In addition, Cosmos Aluminium SA granted ELVALHALCOR with a put option to sale the remaining outstanding capital stock of Cosmos Aluminium SA. The calculation of the purchase price prescribed in the call and put option is based on a predetermined formula based on the EBITDA of Cosmos Aluminium SA on the strike date. The exercise period for both options commenced in 2028 and their term is for six months. Upon the exercise of the aforementioned options, the shareholders of Cosmos Aluminium SA will own 100% of outstanding capital stock of Cosmos Aluminium SA. These expire in case that the shareholders do not exercise them during the exercise period. These options are recognized in the consolidated and separate statement of financial position in their fair value and were included in the carrying amount of the investment in Cosmos Aluminium SA. The recognized loss arises from their measurement in the fair value recorded in the consolidated statement of profit and loss into \u201cOther expense\u201d.
The fair value of the put and call options was based on a widely acceptable valuation model methodology considering the below:
\u2022 expected turnover & EBITDA margins of Cosmos Aluminium SA;
\u2022 risk free rate;
\u2022 duration period;
\u2022 volatility, defined as the range of values for all inputs used in the valuation model.
22. Assets held for sale
The following assets and liabilities were reclassified at their fair value as held for sale as at 31 December 2024:
Amounts in EUR thousands | 2024 | 2023 |
Property Plant & Equipment | 301 | 1,422 |
Intangible assets | - | 11 |
Other non current assets | - | 21 |
Trade and other receivables | - | 114 |
Cash & Cash equivalents | - | 280 |
Total Assets Held for Sale | 301 | 1,849 |
Non current Loans & borrowings | - | 785 |
Trade and other payables | - | 320 |
Current Loans & borrowings | - | 59 |
Total Liabilities directly associated with Assets Held for Sale | - | 1,163 |
On 12.12.2023, an agreement was signed between subsidiary \u201cELVAL COLOUR SINGLE MEMBER S. A.\u201d, associate \u201cCOSMOS ALUMINUM S. A.\u201d and \u201cAVANTECH O.E.\u201d for the participation of last two in the capital increase of 100% subsidiary company of \u201cELVAL COLOUR SINGLE MEMBER S. A.\u201d, \u201cROULOC S.A.\u201d aiming to expand its commercial network and of its product portfolio.
As a result of above Corporate Transformation:
- ROULOC S.A. was renamed to \u201cf-nous SOCIETY ANONYMOUS\u201d;
- Elvalhalcor, through its participation in ELVAL COLOR SA, will hold a 35% in the share capital of \u201cf-nous SOCIETY ANONYMOUS \u201c, while the new shareholders \u201cCOSMOS ALUMINUM\u201d and \u201cAVANTECH O.E.\u201d will hold 35% and 30% respectively .
23. Derivatives
The following table sets out the carrying amount of derivatives:
Amounts in EUR thousands | 2024 | 2023 |
Non-current assets | \u00a0 | \u00a0 |
Interest rate swap contracts | 4,543 | 6,578 |
Forwards | - | 11 |
Electricity Swaps | - | 1,115 |
Commodity Swaps | 499 | - |
Future contracts | - | 122 |
Options | - | 730 |
Total | 5,042 | 8,557 |
Current assets | ||
Interest rate swap contracts | 3,060 | 6,029 |
Forwards | 1,552 | 8,013 |
Future contracts | 4,429 | 4,963 |
Commodity Swaps | 2,307 | 1,347 |
Total | 11,348 | 20,352 |
Non-current liabilities | ||
Interest rate swap contracts | 450 | 1,425 |
Future contracts | - | 1 |
Commodity Swaps | - | 3,598 |
Total | 450 | 5,023 |
Current liabilities | ||
Forwards | 6,212 | 794 |
Future contracts | 2,258 | 316 |
Commodity Swaps | - | 2,996 |
Total | 8,469 | 4,107 |
Variable rate loans and borrowings expose Viohalco companies to a rate volatility risk (cash flow risk). Viohalco subsidiaries entered into interest rates swaps contracts in order to be hedged by interest rate fluctuations, by transforming the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Hedge accounting
Viohalco\u2019s companies hold derivative financial instruments for cash flow and fair value hedges.
The abovementioned derivative financial instruments cover risks from:
Changes in the prices of metals;
Fluctuations of foreign exchange rates;
Changes in loan interest rates;
Fluctuations of energy.
The maturity and the nominal value of derivatives held by Viohalco\u2019s companies match the maturity and nominal value of the underlying assets / liabilities (hedged items).
Derivatives held by Viohalco\u2019s companies concern mainly:
Future contracts to hedge the risk from the change of the price of metals listed in LME (London Metal Exchange) and used in production of Viohalco\u2019s companies (i.e. mainly copper, aluminium and zinc). Such hedges are designated as cash flow hedges.
FX Forward and FX swaps to hedge the risk from the change in exchange rate of US Dollar and British Pound (i.e. currencies to which Viohalco\u2019s companies are mainly exposed). Such hedges are either designated as fair value or cash flow hedges depending on the item hedged. FX Forwards and FX swaps when used for hedging FX risk on outstanding receivables and suppliers denominated in foreign currency these instruments are designated under fair value hedging. FX forwards when used for hedging FX risk on the forecasted sales of goods or purchase of materials executed in foreign currency FX forward is hedging instruments designated under the cash flow method.
Variable rate loans and borrowings expose Viohalco companies to an interest rate volatility risk (cash flow risk). In order to hedge it, interest rate swaps are used to effectively transform the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Derivatives are recognised when Viohalco\u2019s companies enter into the transaction in order either to hedge the fair value of receivables, liabilities or commitments (fair value hedges) or highly probable transactions (cash flow hedges).
The change in fair value recognized in equity under cash flow hedging as at 31 December 2024 will be recycled to the consolidated statement of profit or loss during the next years, as some of the hedged events are expected to occur (the forecasted transactions will take place or the hedged items will affect profit or loss statement) within 2025 and some others at a later stage.
Viohalco companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively) the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined. The table below provides the results of the effectiveness test:
On 31 December 2024 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -468 | - | - |
Foreign exchange forwards | -6,454 | -2,733 | - |
Future contracts | 2,914 | -844 | -5 |
Electricity swaps | -1,115 | - | - |
Commodity swaps | 5,787 | -50 | - |
Total | 664 | -3,627 | -5 |
On 31 December 2023 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -5,754 | -\u00a0 | -\u00a0 |
Foreign exchange forwards | 7 | -\u00a0 | -\u00a0 |
Forward foreign exchange contracts | 4,997 | 806 | -\u00a0 |
Future contracts | 4,341 | 214 | 337 |
Electricity swaps | 1,115 | -\u00a0 | -\u00a0 |
Commodity swaps | -21,379 | \u00a0- | -\u00a0 |
Total | -16,673 | 1,020 | 337 |
Viohalco companies\u2019 results from the hedging activities recorded in the statement of profit or loss are presented for metal future contracts,foreign exchange contracts and the energy contracts in the \u2019Revenue\u2018 and the \u2019Cost of sales\u2018 while for interest rate swaps in the \u2019Finance income/ expenses\u2019. The amounts recognized in the consolidated statement of profit or loss are the following:
Amounts in EUR thousands | 2024 | 2023 |
Gain / loss (-) on future contracts | 16,978 | -733 |
Gain / loss (-) on FX forward contracts | -12,607 | 277 |
Gain / loss (-) on interest rate swap contracts | 2,756 | 3,170 |
Gain / loss (-) on commodity swap contracts | -1,104 | -8,561 |
\u00a0 | 6,023 | -5,848 |
Profit or loss related to derivatives used for cash flow hedging were recognized in other comprehensive income (Hedging reserve) as at 31 December 2024 and it will be recycled to profit or loss during the next financial years.
A. Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including the levels in the fair value hierarchy.
31 December 2024 | |||||
Amounts in EUR thousands | Carrying amount | First Level | Second Level | Third Level | Total |
Other investments | 38,966 | 3,214 | 2 | 35,751 | 38,966 |
Derivative financial assets | 16,390 | 4,429 | 11,961 | - | 16,390 |
\u00a0 | 55,356 | 7,642 | 11,963 | 35,751 | 55,356 |
Derivative financial liabilities | -8,919 | -2,258 | -6,662 | - | -8,919 |
\u00a0 | 46,437 | 5,385 | 5,302 | 35,751 | 46,437 |
31 December 2023 | |||||
Amounts in EUR thousands | Carrying amount | First Level | Second Level | Third Level | Total |
Other investments | 33,686 | 5,617 | 2 | 28,067 | 33,686 |
Derivative financial assets | 28,909 | 5,086 | 22,709 | 1,115 | 28,909 |
\u00a0 | 62,595 | 10,703 | 22,711 | 29,181 | 62,595 |
Derivative financial liabilities | -9,130 | -317 | -8,813 | - | -9,130 |
\u00a0 | 53,465 | 10,386 | 13,898 | 29,181 | 53,465 |
The various levels are as follows:
Level 1: Quoted prices (unadjusted) in an active market for identical assets and liabilities;
Level 2: Inputs that are observable either directly or indirectly;
Level 3: Unobservable inputs for assets and liabilities.
The fair value of the following financial assets and liabilities measured at amortised cost approximate their carrying amount:
Trade and other receivables;
Cash and cash equivalents;
Trade and other payables;
Loans and borrowings;
Lease liabilities.
Specifically, the carrying amount of loans and borrowings is considered as a good approximation of their fair value as 75% of consolidated Loans and borrowings concern floating-rate debt, which are a very good approximation of current market rates.
The following table shows reconciliation between opening and closing balances for Level 3 financial assets:
Amounts in EUR thousands | |
Balance as at 1 January 2024 | 28,067 |
Additions | 277 |
Disposals | -55 |
Fair value through PnL | 7,462 |
Balance as at 31 December 2024 | 35,751 |
Balance as at 1 January 2023 | 4,806 |
Additions | 26,922 |
Fair value through PnL | -3,642 |
Impairment loss (-)/ Reversal of impairment loss | -20 |
Balance as at 31 December 2023 | 28,067 |
\u0392. Measurement of fair values
(a) Valuation techniques and significant unobservable inputs
The fair values of financial assets that are traded in active markets (stock markets e.g. derivatives, shares, bonds, mutual funds) are set according to the published prices that are valid on the reporting date.
The fair values of financial assets that are not traded in active markets are set through the use of valuation techniques and standards that are based on market data on the reporting date.
The fair values of financial liabilities, for the purpose of being recorded in financial statements, are estimated based on the present value of the future cash flows that arise from specific contracts using the current interest rate that is available for Viohalco and its companies for the use of similar financial-credit means.
Inputs that do not meet the respective criteria and cannot be classified in Level 1 but are observable, either directly or indirectly, fall under Level 2. Over-the-counter derivative financial instruments based on prices obtained from brokers are classified in this level.
The financial assets, such as unlisted shares that are not traded in an active market whose measurement is based on the Viohalco\u2019s companies\u2019 forecasts for the issuer\u2019s future profitability are classified under Level 3.
The following table shows the valuation techniques used in measuring fair values, as well as the significant unobservable inputs used:
Type | Valuation technique | Significant unobservable inputs | Inter-relationship between key unobservable inputs and fair value measurement |
Derivatives | Market value: Price as traded in active market Market comparison technique: The fair values are based on broker quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions in similar instruments | Not applicable Broker quotes | Not applicable Not applicable |
Equity securities traded in active markets | Market value: Price as traded in active market | Not applicable | Not applicable |
Equity securities not traded in active markets | Discounted cash flows: The fair value of shares not traded in active markets is derived based on the estimates of Viohalco and its subsidiaries for the future profitability of the issuer, taking into account the expected growth rate of operations and estimated discount rates. | -\u00a0\u00a0 Risk-free rate: 2.49% (EUR), 4.57% (GBP)- Equity risk premium: 3.94% -\u00a0 Expected tax expense rate: Depending on the country of incorporation of the investee. - WACC for the most significant investment: 7-10% | The estimated fair value would increase (decrease) if: \u2022 the estimated risk-free rate, market risk premium and WACC were lower (higher) \u2022 the estimated cash flows were higher (lower) \u2022 the expected income tax rate was lower (higher) |
(b) Transfers between Levels 1 and 2
There were no transfers from Level 2 to Level 1 or from Level 1 to Level 2 in 2024 or in 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__245": { "value": "20. Equity-accounted investees
A. Reconciliation of carrying amount of associates and joint ventures
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 31,329 | 36,638 |
Share of profit / loss (-) net of tax | -5,012 | -11,284 |
OCI profit (loss) for the period | - | -2 |
Dividends received | -1,285 | -723 |
Effects on movement in exchange rates | -593 | -3,934 |
Share capital increase | 8,675 | 13,400 |
Additions | 1,445 | - |
Impairment | -3,144 | -2,766 |
Balance as at 31 December | 31,416 | 31,329 |
B. Financial information per associate and joint venture
The following tables present financial information per associate. The disclosed financial information reflects amounts in the financial statements of the relevant associates.
2024 | |||||||||||||
Company | Principal place of business | Segment | Associate/JV | Carrying Value | Current Assets | Non-Current Assets | Non-Current Liabilities | Current Liabilities | Revenue | Profit or loss from continuing operations | Total com-prehensive income | Direct Ownership interest | Ultimate ownership interest |
ETEM GESTAMP AUTOMOTIVE SA | Bulgaria | Aluminium | Joint Venture | 9,336 | 21,664 | 48,349 | 25,792 | 30,212 | 82,599 | 90 | 90 | 49.00% | 49.00% |
DOMOPLEX LTD | Cyprus | Steel | Associate | 1,058 | 3,115 | 1,819 | 562 | 2,289 | 5,304 | 232 | 232 | 45.00% | 45.00% |
AO TMK-CPW | Russia | Steel Pipes | Associate | 7,859 | 42,305 | 4,114 | 68 | 24,668 | 67,698 | 296 | 296 | 49.00% | 35.00% |
HC ISITMA \u0391.S. | Turkey | Copper | Joint Venture | -31 | 523 | 279 | 156 | 101 | 2,037 | -139 | 3 | 50.00% | 42.39% |
U.E.H.E.M GmbH | Germany | Aluminium | Associate | 820 | 14,158 | 53 | 52 | 12,158 | 66,443 | 1,035 | - | 49.00% | 41.54% |
NEDZINK B.V. | Netherlands | Copper | Joint Venture | - | 30,688 | 38,911 | 48,982 | 13,691 | 91,913 | -10,713 | - | 50.00% | 42.39% |
NEDZINK HOLDING B.V. | Netherlands | Copper | Joint Venture | 981 | 3,917 | 718 | - | 1,527 | 9,679 | -101 | - | 50.00% | 42.39% |
THE GRID SA | Greece | Real estate | Joint Venture | 10,330 | 16,414 | 67,584 | 56,549 | 6,857 | - | -532 | -532 | 50.00% | 34.39% |
Metallourgia Attikis | Greece | Other | Associate | 809 | 2,836 | 106 | 70 | 504 | 1,811 | 1,009 | 1,009 | 50.00% | 50.00% |
F-NOUS | Greece | Aluminium | Associate | 254 | 1,201 | 1,483 | 711 | 1,534 | 934 | -508 | -508 | 35.00% | 29.67% |
31,416 | |||||||||||||
2023 | |||||||||||||
Company | Principal place of business | Segment | Associate/JV | Carrying Value | Current Assets | Non-Current Assets | Non-Current Liabilities | Current Liabilities | Revenue | Profit or loss from continuing operations | Total com-prehensive income | Direct Ownership interest | Ultimate ownership interest |
ETEM GESTAMP AUTOMOTIVE SA | Bulgaria | Aluminium | Joint Venture | 9,282 | 16,796 | 42,479 | 15,162 | 30,196 | 61,357 | 853 | 853 | 49.00% | 49.00% |
DOMOPLEX LTD | Cyprus | Steel | Associate | 1,364 | 3,674 | 1,865 | 2,655 | 581 | 6,039 | 265 | 265 | 45.00% | 45.00% |
AO TMK-CPW | Russia | Steel Pipes | Associate | 8,307 | 28,337 | 4,248 | 104 | 9,883 | 66,636 | -2,232 | -2,232 | 49.00% | 39.09% |
HC ISITMA \u0391.S. | Turkey | Copper | Joint Venture | 38 | 508 | 132 | 29 | 66 | 2,051 | -48 | -4 | 50.00% | 42.39% |
U.E.H.E.M GmbH | Germany | Aluminium | Associate | 1,083 | 14,376 | 12 | - | 12,235 | 73,559 | 1,656 | 1,656 | 49.00% | 41.54% |
NEDZINK B.V. | Netherlands | Copper | Joint Venture | - | 30,165 | 40,240 | 32,030 | 52,377 | 79,614 | -22,277 | - | 50.00% | 42.39% |
THE GRID SA | Greece | Real estate | Joint Venture | 10,465 | 1,471 | 70,555 | 25,739 | 1,419 | - | 17,680 | 17,680 | 50.00% | 40.55% |
Metallourgia Attikis | Greece | Other | Associate | 791 | 1,612 | 257 | 68 | 231 | 1,897 | 237 | 237 | 50.00% | 50.00% |
31,329 |
-\tIn 2024, a capital increase was implemented in the associated company NedZink B.V., with ELVALHALCOR contributing EUR 8.5 million, maintaining its ownership at 50%. However, challenging global economic conditions, dampened demand for NedZink B.V.\u2019s products, resulting in a downturn in its 2024 financial performance. This resulted to an impairment loss of the investment, as a consequence of the impairment test assessment performed according to its business plan, which ELVALHALCOR incorporate the revised negative assessments for future results for NedZink B.V., following the conservatism principle. As a result, an impairment loss of EUR 3.1 million was recorded, due to the fact that the recoverable amount of the investment was lower than the carrying amount of the investment.
-\tIn 2024, a capital increase was implemented in newly acquired associated company NedZink Holding B.V., with ELVALHALCOR contributing EUR 1.2 million, acquiring a 50% ownership.
-\tSince AO TMK-CPW is based on Russia, there are restrictions on the ability of the associate to transfer funds to Viohalco and its subsidiaries in the form of cash dividends, due to the counter sanctions set by the Russian Federation. Humbel Ltd (the owner of 49% of the shares in the AO TMK-CPW) has asked AO TMK-CPW to postpone the payment of any dividends, until further notice. Therefore, during 2024, there were no transactions between AO TMK-CPW and Viohalco subsidiaries.
Aforementioned financial information is presented considering the following:
(a)\tThere are no other restrictions on the ability of joint ventures or associates to transfer funds to the entity in the form of cash dividends, or to repay loans or advances made by the entity.
(b)\tThe financial statements of joint ventures or associates are used in applying the equity method and as of the same date with that of Viohalco.
(c)\tThere are no unrecognized share of losses of a joint venture or associate, both for the reporting period and cumulatively.
C. Description of associates and joint ventures
UEHEM (UACJ ELVAL HEAT EXCHANGER MATERIALS GmbH) is a joint establishment between ElvalHalcor and UACJ Corp. It markets aluminium products to manufacturers of automotive heat exchangers in Europe.
HC ISITMA is a joint venture between ElvalHalcor and Cantas AS. It is active in the manufacture of pre-insulated copper tubes in Turkey.
AO TMK-CPW is a joint stock company between Corinth Pipeworks and AO TMK, the largest manufacturer of steel pipes in Russia and one of the top three globally. AO TMK-CPW has its production facilities in Polevskoy, Russia, where it manufactures pipes and hollow structural sections.
Domoplex is a Cyprus-based company active in the manufacturing and trading of welded wire mesh for the reinforcement of concrete.
NedZink B.V. and NedZink Holding B.V. are Netherlands based companiesfocusing on high quality zinc applications.
Gestamp Etem Automotive Bulgaria S.A. is a joint venture between Gestamp and Etem Bulgaria S.A. that focus on the commercialisation and processing of aluminium extruded profiles for the automotive industry.
THE GRID S.A.is a joint venture between Noval Property REIC and Brook Lane Capital that operates in Real Estate development sector.
Metallourgia Attikis SAis a Greek based company focusing on the production and trading of pipes, sanitary ware, faucets and heating radiators.
F-NOUS is a Greek based facade construction and engineering company, specializing in large scale facade construction and engineering, crafting customized facade solutions both for commercial and residential buildings.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__246-1": { "value": "20. Equity-accounted investees
A. Reconciliation of carrying amount of associates and joint ventures
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 31,329 | 36,638 |
Share of profit / loss (-) net of tax | -5,012 | -11,284 |
OCI profit (loss) for the period | - | -2 |
Dividends received | -1,285 | -723 |
Effects on movement in exchange rates | -593 | -3,934 |
Share capital increase | 8,675 | 13,400 |
Additions | 1,445 | - |
Impairment | -3,144 | -2,766 |
Balance as at 31 December | 31,416 | 31,329 |
B. Financial information per associate and joint venture
The following tables present financial information per associate. The disclosed financial information reflects amounts in the financial statements of the relevant associates.
2024 | |||||||||||||
Company | Principal place of business | Segment | Associate/JV | Carrying Value | Current Assets | Non-Current Assets | Non-Current Liabilities | Current Liabilities | Revenue | Profit or loss from continuing operations | Total com-prehensive income | Direct Ownership interest | Ultimate ownership interest |
ETEM GESTAMP AUTOMOTIVE SA | Bulgaria | Aluminium | Joint Venture | 9,336 | 21,664 | 48,349 | 25,792 | 30,212 | 82,599 | 90 | 90 | 49.00% | 49.00% |
DOMOPLEX LTD | Cyprus | Steel | Associate | 1,058 | 3,115 | 1,819 | 562 | 2,289 | 5,304 | 232 | 232 | 45.00% | 45.00% |
AO TMK-CPW | Russia | Steel Pipes | Associate | 7,859 | 42,305 | 4,114 | 68 | 24,668 | 67,698 | 296 | 296 | 49.00% | 35.00% |
HC ISITMA \u0391.S. | Turkey | Copper | Joint Venture | -31 | 523 | 279 | 156 | 101 | 2,037 | -139 | 3 | 50.00% | 42.39% |
U.E.H.E.M GmbH | Germany | Aluminium | Associate | 820 | 14,158 | 53 | 52 | 12,158 | 66,443 | 1,035 | - | 49.00% | 41.54% |
NEDZINK B.V. | Netherlands | Copper | Joint Venture | - | 30,688 | 38,911 | 48,982 | 13,691 | 91,913 | -10,713 | - | 50.00% | 42.39% |
NEDZINK HOLDING B.V. | Netherlands | Copper | Joint Venture | 981 | 3,917 | 718 | - | 1,527 | 9,679 | -101 | - | 50.00% | 42.39% |
THE GRID SA | Greece | Real estate | Joint Venture | 10,330 | 16,414 | 67,584 | 56,549 | 6,857 | - | -532 | -532 | 50.00% | 34.39% |
Metallourgia Attikis | Greece | Other | Associate | 809 | 2,836 | 106 | 70 | 504 | 1,811 | 1,009 | 1,009 | 50.00% | 50.00% |
F-NOUS | Greece | Aluminium | Associate | 254 | 1,201 | 1,483 | 711 | 1,534 | 934 | -508 | -508 | 35.00% | 29.67% |
31,416 | |||||||||||||
2023 | |||||||||||||
Company | Principal place of business | Segment | Associate/JV | Carrying Value | Current Assets | Non-Current Assets | Non-Current Liabilities | Current Liabilities | Revenue | Profit or loss from continuing operations | Total com-prehensive income | Direct Ownership interest | Ultimate ownership interest |
ETEM GESTAMP AUTOMOTIVE SA | Bulgaria | Aluminium | Joint Venture | 9,282 | 16,796 | 42,479 | 15,162 | 30,196 | 61,357 | 853 | 853 | 49.00% | 49.00% |
DOMOPLEX LTD | Cyprus | Steel | Associate | 1,364 | 3,674 | 1,865 | 2,655 | 581 | 6,039 | 265 | 265 | 45.00% | 45.00% |
AO TMK-CPW | Russia | Steel Pipes | Associate | 8,307 | 28,337 | 4,248 | 104 | 9,883 | 66,636 | -2,232 | -2,232 | 49.00% | 39.09% |
HC ISITMA \u0391.S. | Turkey | Copper | Joint Venture | 38 | 508 | 132 | 29 | 66 | 2,051 | -48 | -4 | 50.00% | 42.39% |
U.E.H.E.M GmbH | Germany | Aluminium | Associate | 1,083 | 14,376 | 12 | - | 12,235 | 73,559 | 1,656 | 1,656 | 49.00% | 41.54% |
NEDZINK B.V. | Netherlands | Copper | Joint Venture | - | 30,165 | 40,240 | 32,030 | 52,377 | 79,614 | -22,277 | - | 50.00% | 42.39% |
THE GRID SA | Greece | Real estate | Joint Venture | 10,465 | 1,471 | 70,555 | 25,739 | 1,419 | - | 17,680 | 17,680 | 50.00% | 40.55% |
Metallourgia Attikis | Greece | Other | Associate | 791 | 1,612 | 257 | 68 | 231 | 1,897 | 237 | 237 | 50.00% | 50.00% |
31,329 |
-\tIn 2024, a capital increase was implemented in the associated company NedZink B.V., with ELVALHALCOR contributing EUR 8.5 million, maintaining its ownership at 50%. However, challenging global economic conditions, dampened demand for NedZink B.V.\u2019s products, resulting in a downturn in its 2024 financial performance. This resulted to an impairment loss of the investment, as a consequence of the impairment test assessment performed according to its business plan, which ELVALHALCOR incorporate the revised negative assessments for future results for NedZink B.V., following the conservatism principle. As a result, an impairment loss of EUR 3.1 million was recorded, due to the fact that the recoverable amount of the investment was lower than the carrying amount of the investment.
-\tIn 2024, a capital increase was implemented in newly acquired associated company NedZink Holding B.V., with ELVALHALCOR contributing EUR 1.2 million, acquiring a 50% ownership.
-\tSince AO TMK-CPW is based on Russia, there are restrictions on the ability of the associate to transfer funds to Viohalco and its subsidiaries in the form of cash dividends, due to the counter sanctions set by the Russian Federation. Humbel Ltd (the owner of 49% of the shares in the AO TMK-CPW) has asked AO TMK-CPW to postpone the payment of any dividends, until further notice. Therefore, during 2024, there were no transactions between AO TMK-CPW and Viohalco subsidiaries.
Aforementioned financial information is presented considering the following:
(a)\tThere are no other restrictions on the ability of joint ventures or associates to transfer funds to the entity in the form of cash dividends, or to repay loans or advances made by the entity.
(b)\tThe financial statements of joint ventures or associates are used in applying the equity method and as of the same date with that of Viohalco.
(c)\tThere are no unrecognized share of losses of a joint venture or associate, both for the reporting period and cumulatively.
C. Description of associates and joint ventures
UEHEM (UACJ ELVAL HEAT EXCHANGER MATERIALS GmbH) is a joint establishment between ElvalHalcor and UACJ Corp. It markets aluminium products to manufacturers of automotive heat exchangers in Europe.
HC ISITMA is a joint venture between ElvalHalcor and Cantas AS. It is active in the manufacture of pre-insulated copper tubes in Turkey.
AO TMK-CPW is a joint stock company between Corinth Pipeworks and AO TMK, the largest manufacturer of steel pipes in Russia and one of the top three globally. AO TMK-CPW has its production facilities in Polevskoy, Russia, where it manufactures pipes and hollow structural sections.
Domoplex is a Cyprus-based company active in the manufacturing and trading of welded wire mesh for the reinforcement of concrete.
NedZink B.V. and NedZink Holding B.V. are Netherlands based companiesfocusing on high quality zinc applications.
Gestamp Etem Automotive Bulgaria S.A. is a joint venture between Gestamp and Etem Bulgaria S.A. that focus on the commercialisation and processing of aluminium extruded profiles for the automotive industry.
THE GRID S.A.is a joint venture between Noval Property REIC and Brook Lane Capital that operates in Real Estate development sector.
Metallourgia Attikis SAis a Greek based company focusing on the production and trading of pipes, sanitary ware, faucets and heating radiators.
F-NOUS is a Greek based facade construction and engineering company, specializing in large scale facade construction and engineering, crafting customized facade solutions both for commercial and residential buildings.
21. Other investments
Viohalco designates the investments shown below as equity securities at FVOCI, as they represent investments that Viohalco intends to hold for the long term strategic purposes.
The movement of equity securities, as well as their analysis, is presented below:
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 33,686 | 8,405 |
Additions | 277 | 28,904 |
Disposals | -2,226 | -134 |
Impairment loss | - | -54 |
Impairment loss reversal | - | 2 |
Change in fair value through profit or loss | 7,462 | -3,266 |
Change in fair value through OCI | -233 | -151 |
Other changes | - | -20 |
Balance as at 31 December | 38,966 | 33,686 |
Amounts in EUR thousands | 2024 | 2023 |
Listed securities | ||
-Greek equity instruments | 283 | 2,414 |
-International equity instruments | 2,972 | 3,205 |
Unlisted securities | ||
-Greek equity instruments | 34,082 | 26,660 |
-International equity instruments | 849 | 849 |
-Mutual funds | 780 | 557 |
\u00a0Total | 38,966 | 33,686 |
The investments for which the fair value cannot be estimated were valued at cost. For the calculation of the fair value please see note 30 Financial assets and risk management. The fair value is being recorded through OCI statement (FVTOCI).
On April, 7th,2023, the merger by absorption of Etem Commercial SA, subsidiary of ElvalHalcor, by the company Cosmos Aluminium SA has been approved. As a result of the completion of the transaction, ElvalHalcor holds a minority stake of 15% in the share capital of Cosmos Aluminium SA and classified this investment to \u201cOther investments\u201d.
The investment in Cosmos Aluminium SA amounted EUR 30.5 million at year end, as it has been revalued by EUR 7.5 million, and the respective revaluation net gain has been included in the consolidated statement of profit and loss and measured in the fair value through profit and loss.
Additionally, based on the purchase agreement, the shareholders of ElvalHalcor granted Cosmos Aluminium SA with a put option to purchase the remaining outstanding capital stock of Cosmos Aluminium SA. In addition, Cosmos Aluminium SA granted ELVALHALCOR with a put option to sale the remaining outstanding capital stock of Cosmos Aluminium SA. The calculation of the purchase price prescribed in the call and put option is based on a predetermined formula based on the EBITDA of Cosmos Aluminium SA on the strike date. The exercise period for both options commenced in 2028 and their term is for six months. Upon the exercise of the aforementioned options, the shareholders of Cosmos Aluminium SA will own 100% of outstanding capital stock of Cosmos Aluminium SA. These expire in case that the shareholders do not exercise them during the exercise period. These options are recognized in the consolidated and separate statement of financial position in their fair value and were included in the carrying amount of the investment in Cosmos Aluminium SA. The recognized loss arises from their measurement in the fair value recorded in the consolidated statement of profit and loss into \u201cOther expense\u201d.
The fair value of the put and call options was based on a widely acceptable valuation model methodology considering the below:
\u2022 expected turnover & EBITDA margins of Cosmos Aluminium SA;
\u2022 risk free rate;
\u2022 duration period;
\u2022 volatility, defined as the range of values for all inputs used in the valuation model.
31. Subsidiaries
Viohalco\u2019s subsidiaries and the percentages of financial interest held by the parent company at the end of the reporting period are as follows:
Subsidiary companies | Country | Financial interest 2024 | Financial interest 2023 |
AEIFOROS S.A. | GREECE | 98.11% | 98.11% |
AEIFOROS BULGARIA S.A. | BULGARIA | 98.11% | 98.11% |
ALURAME SPA | ITALY | 89.88% | 91.59% |
ANOXAL S.A. | GREECE | 84.78% | 84.78% |
A\u039d\u0391\u039c\u0395\u03a4 DOO | SERBIA | 97.54% | 97.54% |
A\u039d\u0391\u039c\u0395\u03a4 S.A. | GREECE | 97.54% | 97.54% |
A\u039d\u03a4\u0399\u039c\u0395\u03a4 S.A. | GREECE | 100.00% | 100.00% |
A\u03a4\u03a4\u0399\u039aI S.A. | GREECE | 75.00% | 75.00% |
BASE METALS S.A. | TURKEY | 67.86% | 69.15% |
BRIDGNORTH LTD | U.K | 100.00% | 100.00% |
CABLEL WIRES S.A. | GREECE | 84.78% | 84.78% |
CENERGY HOLDINGS S.A. | BELGIUM | 71.43% | 79.78% |
HELLENIC CABLES AMERICA CO. | USA | 71.43% | 79.78% |
CORINTH PIPEWORKS S.A. | GREECE | 71.43% | 79.78% |
CPW AMERICA Co | USA | 71.43% | 79.78% |
CPW SOLAR S.A. | GREECE | 71.43% | 79.78% |
CPW WIND S.A. | GREECE | 71.43% | 79.78% |
DE LAIRE LTD | CYPRUS | - | 79.78% |
DIA.VI.PE.THI.V S.A. | GREECE | 89.35% | 91.54% |
DOJRAN STEEL LLCOP | NORTH MACEDONIA | 93.31% | 92.56% |
EANEP ALMYROU SA | GREECE | 93.31% | 92.56% |
ELVAL COLOUR S.A. | GREECE | 84.78% | 84.78% |
ELVAL COLOUR IBERICA S.A. | SPAIN | 84.78% | 84.78% |
ELVALHALCOR S.A. | GREECE | 84.78% | 84.78% |
ELVIOK S.A. | GREECE | 84.78% | 84.78% |
EL\u039a\u0395\u039c\u0395 S.A. | GREECE | 83.78% | 84.40% |
EPIRUS METALWORKS S.A. | GREECE | 77.01% | 84.78% |
ERGOSTEEL S.A. | GREECE | 86.68% | 89.12% |
ERLIKON S.A. | GREECE | 100.00% | 100.00% |
ETEM BULGARIA S.A. | BULGARIA | 100.00% | 100.00% |
ETEM GESTAMP EXTRUSIONS S.A. | BULGARIA | 51.00% | 51.00% |
E\u03a4IL S.A. | GREECE | 100.00% | 100.00% |
FLOCOS S.A. | GREECE | 100.00% | 100.00% |
FULGOR S.A. | GREECE | 71.43% | 79.78% |
Subsidiary companies | Country | Financial interest 2024 | Financial interest 2023 |
GENECOS S.A. | FRANCE | 89.88% | 91.59% |
HELLENIC CABLES S.A. | GREECE | 71.43% | 79.78% |
HELLENIC CABLES TRADING CO. | USA | 71.43% | 79.78% |
HUMBEL LTD | CYPRUS | 71.43% | 79.78% |
ICME ECAB S.A. | ROMANIA | 71.42% | 79.76% |
INOS BALCAN DOO | SERBIA | 97.54% | 97.54% |
INTERNATIONAL TRADE S.A. | BELGIUM | 89.88% | 91.59% |
JOSTDEX LIMITED | CYPRUS | 100.00% | 100.00% |
LESCO ROMANIA S.A. | ROMANIA | 46.43% | 51.86% |
LESCO EOOD | BULGARIA | 71.43% | 79.78% |
METAL AGENCIES LTD | U.K | 89.88% | 91.59% |
METALCO S.A. | BULGARIA | 100.00% | 100.00% |
METALIGN S.A. | BULGARIA | 100.00% | 100.00% |
NOVAL PROPERTY REIC | GREECE | 68.77% | 81.09% |
NOVOMETAL DOO | NORTH MACEDONIA | 97.54% | 97.54% |
PORT SVISHTOV WEST S.A. | BULGARIA | 73.09% | 73.09% |
PRAKSIS S.A. | GREECE | 61.00% | 61.00% |
PRAKSIS BG S.A. | BULGARIA | 61.00% | 61.00% |
REYNOLDS CUIVRE S.A. | FRANCE | 89.88% | 91.59% |
SIDEBALK STEEL DOO | SERBIA | 100.00% | 100.00% |
SIDENOR INDUSTRIAL S.A. | GREECE | 100.00% | 100.00% |
SIDERAL SHRK | ALBANIA | 99.92% | 99.92% |
SIDEROM STEEL SRL | ROMANIA | 100.00% | 100.00% |
SOFIA MED AD | BULGARIA | 86.37% | 86.37% |
SOVEL S.A. | GREECE | 93.31% | 92.56% |
STEELMET CYPRUS LTD | CYPRUS | 86.68% | 89.12% |
STEELMET PROPERTIES S.A. | GREECE | 86.68% | 89.12% |
STEELMET ROMANIA S.A. | ROMANIA | 89.88% | 91.59% |
STEELMET S.A. | GREECE | 86.68% | 89.12% |
STEELMET FINANCIAL SERVICES S.A. | GREECE | 100.00% | 100.00% |
STOMANA INDUSTRY S.A. | BULGARIA | 100.00% | 100.00% |
STOMANA ENGINEERING S.A. | BULGARIA | 100.00% | 100.00% |
SYMETAL S.A. | GREECE | 84.78% | 84.78% |
TECHOR S.A. | GREECE | 84.78% | 84.78% |
TECHOR ROMANIA S.A. | ROMANIA | 84.78% | 84.78% |
TEPROMKC AG | GERMANY | 89.88% | 91.59% |
TERRA MIDDLE EAST AG | GERMANY | 89.88% | 91.59% |
T\u0395\u039a\u0391 SYSTEMS S.A. | GREECE | 100.00% | 100.00% |
VEPAL S.A. | GREECE | 84.78% | 84.78% |
VIENER S.A. | GREECE | 93.70% | 93.70% |
VIEXAL S.A. | GREECE | 95.94% | 95.94% |
VIOHALCO ENGINEERING S.A. (renamed from TEKA ENGINEERING S.A.) | GREECE | 100.00% | 100.00% |
VIOMAL S.A. | GREECE | 63.58% | 63.58% |
VITRUVIT S.A. | GREECE | 99.75% | 99.75% |
WAGNER POINT PROPERTIES LLC (renamed from Sparrows Point Properties LLC) | USA | 71.43% | 79.78% |
WARSAW TUBULARS TRADING SP.ZO | POLAND | 71.43% | 79.78% |
The ultimate controlling entity is Viohalco S.A. for all the above entities. Viohalco does exercise control, by holding the majority of the voting rights, directly and/or indirectly and these entities are reported as subsidiary companies.
The percentages reported on the above table represent the financial interest held directly and indirectly by Viohalco. For example, if Viohalco holds 70% of company A and company A holds 70% of company B, then in the table above it will be presented that Viohalco holds 49% of financial interest in company B.
Transactions that took place in 2024
During 2024, the subsidiary Sparrows Point Properties Holdings LLC was merged with Hellenic Cables Americas CO.
De Laire LTD was liquidated during 2024 and the dissolution of the company is expected within 2025.
Hellenic Cables Trading CO is currently under voluntary liquidation.
In November 2024, the subsidiary TEKA ENGINEERING S.A. was renamed to VIOHALCO ENGINEERING S.A.
32. Joint operations
During 2024, the following joint operations were formed:
Hellenic Cables has a 68.80% interest in a joint arrangement called Jan De Nul Luxembourg SA \u2013 Hellenic Cables SA Consortium Baltyk 2 sp\u00f3\u0142ka jawna, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, transport and install export cables for the Polish offshore wind farms Baltyk II. The principal place of business of the joint operation is in Poland.
Hellenic Cables has a 70.10% interest in a joint arrangement called Jan De Nul Luxembourg SA \u2013 Hellenic Cables SA Consortium Baltyk 3 sp\u00f3\u0142ka jawna, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, transport and install export cables for the Polish offshore wind farms Baltyk III. The principal place of business of the joint operation is in Poland.
Hellenic Cables has a 54.69% interest in a joint arrangement called Jan De Nul Luxembourg SA \u2013 Hellenic Cables SA Consortium Dolwin Kappa, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is the turnkey delivery of three HVAC offshore grid connection cables for the offshore wind farms to be developed in zones N-3.7 & N-3.8 in Germany. These cables will connect the wind farms to the DolWin Kappa convertor station, from where HVDC cables transfer the produced energy to shore. The principal place of business of the joint operation is in Germany.
The joint operations described below were formed during prior years:
Hellenic Cables has a 58.37% interest in a joint arrangement called Jan De Nul Luxembourg - Hellenic Cables Consortium \u2013 Thor Export Cables I/S, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, supply, transport, install and test the 275kV HVAC export cable system for the Thor Offshore Wind Farm. The principal place of business of the joint operation is in Denmark.
Hellenic Cables has a 38.24% interest in a joint arrangement called Jan De Nul Luxembourg - Hellenic Cables Consortium \u2013 Thor Array Cables I/S, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, supply, transport, install and test the 66kV inter-array cable system for the Thor Offshore Wind Farm. The principal place of business of the joint operation is in Denmark.
Hellenic Cables has a 62.48% interest in a joint arrangement called VO Cablel VOF, which was set up as a partnership together with Van Oord. The scope of this joint operation scheme is to supply and install sea and land cables for the Hollandse Kust (South) Alpha project and Hollandse Kust (South) Beta project. The principal place of business of the joint operation is in the Netherlands.
Hellenic Cables has a 50.77% interest in a joint arrangement called DEME Offshore NL - Hellenic Cables V.O.F., which was set up as a partnership together with Tideway. The scope of this joint operation scheme is to execute a turnkey contract for the supply and installation of submarine cables for the connection of the Seamade offshore wind project to the Belgian grid. The principal place of business of the joint operation is in Belgium.
Fulgor has a 10.00% interest in a joint arrangement called Fulgor \u2013 JDN Consortium, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to execute a turnkey contract for the installation of submarine cables for the interconnection Crete-Peloponnese in Greece. The principal place of business of this joint operation is in Greece.
Fulgor has a 70.27% interest in a joint arrangement called Fulgor \u2013 Asso.subsea Ltd Consortium, which was set up as a partnership together with Asso.subsea Ltd. The scope of this joint operation scheme is to execute a turnkey contract for the design, manufacturing, supply and installation of the 150 kV submarine cable system connecting the under construction 330 MW Kafireas II Wind Farm to Greece\u2019s mainland grid. The principal place of business of this joint operation is in Greece.
All the agreements stated above require unanimous consent from all parties for all relevant activities. The two partners have direct rights to the assets of the partnership and are jointly and severally liable for the liabilities incurred by the partnership. These entities are therefore classified as joint operations and the Group recognises its direct right to the jointly held assets, liabilities, revenues an expenses as described in note 5.1(g).
33. Non-controlling interests
The following table summarises the information relating to each of the subsidiaries that have material NCI (at sub-group level in the cases of Cenergy, ElvalHalcor, Sidenor) before any intra-group elimination.
2024 | ||||||
Amounts in EUR thousands | Cenergy | ElvalHalcor | Sidenor | Other | Intragroup eliminations | Total |
NCI percentage | 28.57% | 15.22% | 0.00% | |||
Non-current assets | 937,562 | 1,117,725 | 321,989 | |||
Current assets | 1,353,747 | 1,189,470 | 396,017 | |||
Non-current liabilities | 333,281 | 6,664,297 | 303,220 | |||
Current liabilities | 1,258,209 | 708,917 | 365,060 | |||
Net Assets | 699,819 | 933,981 | 49,726 | |||
Attributable to NCI by the companies | 45 | 23,728 | 36,219 | 849 | ||
Net attributable to the equity holders & NCI of Viohalco | 699,774 | 910,254 | 13,507 | |||
Attributable to NCI by parent Company | 199,926 | 138,541 | - | 117,941 | ||
Carrying amount of NCI | 199,971 | 162,268 | 36,219 | 118,790 | -50,928 | 466,319 |
Revenue | 1,796,448 | 3,438,452 | 711,159 | |||
Profit / Loss (-) | 140,616 | 114,701 | -16,729 | |||
Other comprehensive income | -2,186 | -829 | 310 | |||
Total comprehensive income | 138,430 | 113,872 | -16,418 | 32,933 | ||
Attributable to NCI by the companies | 4 | 6,194 | -1,566 | -4 | ||
Net attributable to the equity holders & NCI of Viohalco | 138,426 | 107,677 | -14,853 | 32,938 | ||
Attributable to NCI by Viohalco | 31,238 | 16,388 | - | 2,980 | ||
Total OCI of NCI | 31,242 | 22,583 | -1,566 | 2,976 | -6,444 | 48,791 |
Cash flows from operating activities | 301,543 | 262,823 | -18,105 | |||
Cash flows from investing activities | -247,147 | -67,793 | -24,112 | |||
Cash flows from financing activities | 203,314 | -155,861 | 42,438 | |||
Net increase/ decrease (-) in cash and cash equivalents | 257,710 | 39,169 | 222 | |||
2023 | ||||||
Amounts in EUR thousands | Cenergy | ElvalHalcor | Sidenor | Other | Intragroup eliminations | Total |
NCI percentage | 20.22% | 15.22% | 0.00% | |||
Non-current assets | 706,611 | 1,111,140 | 316,675 | |||
Current assets | 1,117,962 | 1,076,881 | 387,851 | |||
Non-current liabilities | 288,273 | 781,430 | 317,799 | |||
Current liabilities | 1,145,807 | 568,055 | 319,448 | |||
Net Assets | 390,494 | 838,535 | 67,279 | |||
Attributable to NCI by the companies | 41 | 19,542 | 38,735 | |||
Net attributable to the equity holders & NCI of Viohalco | 390,452 | 818,993 | 28,545 | |||
Attributable to NCI by parent Company | 78,949 | 124,651 | - | |||
Carrying amount of NCI | 78,991 | 144,193 | 38,735 | 65,464 | -44,804 | 282,578 |
Revenue | 1,627,724 | 3,292,681 | 641,538 | |||
Profit / Loss (-) | 71,274 | 35,477 | -29,233 | |||
Other comprehensive income | -552 | -24,387 | -455 | |||
Total comprehensive income | 70,723 | 11,090 | -29,688 | |||
Attributable to NCI by the companies | 3 | 4,516 | -9,368 | |||
Net attributable to the equity holders & NCI of Viohalco | 70,719 | 6,574 | -20,320 | |||
Attributable to NCI by Viohalco | 14,299 | 1,001 | - | |||
Total OCI of NCI | 14,303 | 5,517 | -9,368 | 895 | 2,849 | 14,195 |
Cash flows from operating activities | 208,607 | 268,643 | 16,695 | |||
Cash flows from investing activities | -130,497 | -93,432 | -26,940 | |||
Cash flows from financing activities | -61,091 | -170,120 | -8,989 | |||
Net increase/ decrease (-) in cash and cash equivalents | 17,019 | 5,092 | -19,234 |
Share capital increase of Cenergy Holdings
On October 11, 2024, 22,222,222 new ordinary shares of no nominal value of Viohalco subsidiary, Cenergy Holdings, were issued at a price per new share of EUR 9.00. The new shares were offered in parallel through a public offer in Belgium and Greece and private placements to certain institutional investors in various jurisdictions. The total gross proceeds raised by Cenergy Holdings from the said offer, before deducting expenses, amounted to EUR 199,999,998.00 (22,222,222 new shares multiplied by the offer price of EUR 9.00). Out of this amount, EUR 13,776,762.15 was recorded as increase in the share capital of Cenergy Holdings based on the fractional value per share as per the company\u2019s\u2019 accounting records. The remaining amount of EUR 186,223,235.85 was recorded as increase in the share premium and the transaction costs for the share capital increase amounted to EUR 12,764,068.73 were recorded as a deduction in the share premium of Cenergy Holdings.
The share capital increase that recognized in Cenergy Holdings financial statements is described as follows:
Amounts in EUR thousands | Share Capital | Share Premium | Total |
Share capital increase | 13,777 | 186,223 | 200,000 |
Capitalized IPO costs | - | -12,764 | -12,764 |
Total | 13,777 | 173,459 | 187,236 |
Initial public offering of Noval Property REIC new shares
On June 5th, 2024, in the context of share capital increase and listing of Noval Property REIC, Viohalco subsidiary in Real Estate segment, commenced the trading of 126,431,958 ordinary, registered, dematerialized, voting shares, on the regulated market of Athens Exchange (i.e., the 107,467,164 existing ordinary, registered, dematerialized, voting shares, the 17,388,025 new ordinary, registered, dematerialized, voting shares from the Increase and the 1,576,769 ordinary, registered, dematerialized, voting shares resulting from the conversion of bonds of the common and under conditions mandatorily convertible into Company shares bond loan issued by the Company on 05.10.2023 and which are subscribed in their entirety by the EBRD).
The share capital increase from the initial public offering that recognized in Noval Property financial statements is described as follows:
Amounts in EUR thousands | Share Capital | Share Premium | Total |
Share capital increase | 43,470 | 4,869 | 48,339 |
Capitalized IPO costs | - | -4,544 | -4,544 |
Bond loan conversion | 3,942 | 441 | 4,383 |
Total | 47,412 | 766 | 48,178 |
20. Equity-accounted investees
A. Reconciliation of carrying amount of associates and joint ventures
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 31,329 | 36,638 |
Share of profit / loss (-) net of tax | -5,012 | -11,284 |
OCI profit (loss) for the period | - | -2 |
Dividends received | -1,285 | -723 |
Effects on movement in exchange rates | -593 | -3,934 |
Share capital increase | 8,675 | 13,400 |
Additions | 1,445 | - |
Impairment | -3,144 | -2,766 |
Balance as at 31 December | 31,416 | 31,329 |
B. Financial information per associate and joint venture
The following tables present financial information per associate. The disclosed financial information reflects amounts in the financial statements of the relevant associates.
2024 | |||||||||||||
Company | Principal place of business | Segment | Associate/JV | Carrying Value | Current Assets | Non-Current Assets | Non-Current Liabilities | Current Liabilities | Revenue | Profit or loss from continuing operations | Total com-prehensive income | Direct Ownership interest | Ultimate ownership interest |
ETEM GESTAMP AUTOMOTIVE SA | Bulgaria | Aluminium | Joint Venture | 9,336 | 21,664 | 48,349 | 25,792 | 30,212 | 82,599 | 90 | 90 | 49.00% | 49.00% |
DOMOPLEX LTD | Cyprus | Steel | Associate | 1,058 | 3,115 | 1,819 | 562 | 2,289 | 5,304 | 232 | 232 | 45.00% | 45.00% |
AO TMK-CPW | Russia | Steel Pipes | Associate | 7,859 | 42,305 | 4,114 | 68 | 24,668 | 67,698 | 296 | 296 | 49.00% | 35.00% |
HC ISITMA \u0391.S. | Turkey | Copper | Joint Venture | -31 | 523 | 279 | 156 | 101 | 2,037 | -139 | 3 | 50.00% | 42.39% |
U.E.H.E.M GmbH | Germany | Aluminium | Associate | 820 | 14,158 | 53 | 52 | 12,158 | 66,443 | 1,035 | - | 49.00% | 41.54% |
NEDZINK B.V. | Netherlands | Copper | Joint Venture | - | 30,688 | 38,911 | 48,982 | 13,691 | 91,913 | -10,713 | - | 50.00% | 42.39% |
NEDZINK HOLDING B.V. | Netherlands | Copper | Joint Venture | 981 | 3,917 | 718 | - | 1,527 | 9,679 | -101 | - | 50.00% | 42.39% |
THE GRID SA | Greece | Real estate | Joint Venture | 10,330 | 16,414 | 67,584 | 56,549 | 6,857 | - | -532 | -532 | 50.00% | 34.39% |
Metallourgia Attikis | Greece | Other | Associate | 809 | 2,836 | 106 | 70 | 504 | 1,811 | 1,009 | 1,009 | 50.00% | 50.00% |
F-NOUS | Greece | Aluminium | Associate | 254 | 1,201 | 1,483 | 711 | 1,534 | 934 | -508 | -508 | 35.00% | 29.67% |
31,416 | |||||||||||||
2023 | |||||||||||||
Company | Principal place of business | Segment | Associate/JV | Carrying Value | Current Assets | Non-Current Assets | Non-Current Liabilities | Current Liabilities | Revenue | Profit or loss from continuing operations | Total com-prehensive income | Direct Ownership interest | Ultimate ownership interest |
ETEM GESTAMP AUTOMOTIVE SA | Bulgaria | Aluminium | Joint Venture | 9,282 | 16,796 | 42,479 | 15,162 | 30,196 | 61,357 | 853 | 853 | 49.00% | 49.00% |
DOMOPLEX LTD | Cyprus | Steel | Associate | 1,364 | 3,674 | 1,865 | 2,655 | 581 | 6,039 | 265 | 265 | 45.00% | 45.00% |
AO TMK-CPW | Russia | Steel Pipes | Associate | 8,307 | 28,337 | 4,248 | 104 | 9,883 | 66,636 | -2,232 | -2,232 | 49.00% | 39.09% |
HC ISITMA \u0391.S. | Turkey | Copper | Joint Venture | 38 | 508 | 132 | 29 | 66 | 2,051 | -48 | -4 | 50.00% | 42.39% |
U.E.H.E.M GmbH | Germany | Aluminium | Associate | 1,083 | 14,376 | 12 | - | 12,235 | 73,559 | 1,656 | 1,656 | 49.00% | 41.54% |
NEDZINK B.V. | Netherlands | Copper | Joint Venture | - | 30,165 | 40,240 | 32,030 | 52,377 | 79,614 | -22,277 | - | 50.00% | 42.39% |
THE GRID SA | Greece | Real estate | Joint Venture | 10,465 | 1,471 | 70,555 | 25,739 | 1,419 | - | 17,680 | 17,680 | 50.00% | 40.55% |
Metallourgia Attikis | Greece | Other | Associate | 791 | 1,612 | 257 | 68 | 231 | 1,897 | 237 | 237 | 50.00% | 50.00% |
31,329 |
-\tIn 2024, a capital increase was implemented in the associated company NedZink B.V., with ELVALHALCOR contributing EUR 8.5 million, maintaining its ownership at 50%. However, challenging global economic conditions, dampened demand for NedZink B.V.\u2019s products, resulting in a downturn in its 2024 financial performance. This resulted to an impairment loss of the investment, as a consequence of the impairment test assessment performed according to its business plan, which ELVALHALCOR incorporate the revised negative assessments for future results for NedZink B.V., following the conservatism principle. As a result, an impairment loss of EUR 3.1 million was recorded, due to the fact that the recoverable amount of the investment was lower than the carrying amount of the investment.
-\tIn 2024, a capital increase was implemented in newly acquired associated company NedZink Holding B.V., with ELVALHALCOR contributing EUR 1.2 million, acquiring a 50% ownership.
-\tSince AO TMK-CPW is based on Russia, there are restrictions on the ability of the associate to transfer funds to Viohalco and its subsidiaries in the form of cash dividends, due to the counter sanctions set by the Russian Federation. Humbel Ltd (the owner of 49% of the shares in the AO TMK-CPW) has asked AO TMK-CPW to postpone the payment of any dividends, until further notice. Therefore, during 2024, there were no transactions between AO TMK-CPW and Viohalco subsidiaries.
Aforementioned financial information is presented considering the following:
(a)\tThere are no other restrictions on the ability of joint ventures or associates to transfer funds to the entity in the form of cash dividends, or to repay loans or advances made by the entity.
(b)\tThe financial statements of joint ventures or associates are used in applying the equity method and as of the same date with that of Viohalco.
(c)\tThere are no unrecognized share of losses of a joint venture or associate, both for the reporting period and cumulatively.
C. Description of associates and joint ventures
UEHEM (UACJ ELVAL HEAT EXCHANGER MATERIALS GmbH) is a joint establishment between ElvalHalcor and UACJ Corp. It markets aluminium products to manufacturers of automotive heat exchangers in Europe.
HC ISITMA is a joint venture between ElvalHalcor and Cantas AS. It is active in the manufacture of pre-insulated copper tubes in Turkey.
AO TMK-CPW is a joint stock company between Corinth Pipeworks and AO TMK, the largest manufacturer of steel pipes in Russia and one of the top three globally. AO TMK-CPW has its production facilities in Polevskoy, Russia, where it manufactures pipes and hollow structural sections.
Domoplex is a Cyprus-based company active in the manufacturing and trading of welded wire mesh for the reinforcement of concrete.
NedZink B.V. and NedZink Holding B.V. are Netherlands based companiesfocusing on high quality zinc applications.
Gestamp Etem Automotive Bulgaria S.A. is a joint venture between Gestamp and Etem Bulgaria S.A. that focus on the commercialisation and processing of aluminium extruded profiles for the automotive industry.
THE GRID S.A.is a joint venture between Noval Property REIC and Brook Lane Capital that operates in Real Estate development sector.
Metallourgia Attikis SAis a Greek based company focusing on the production and trading of pipes, sanitary ware, faucets and heating radiators.
F-NOUS is a Greek based facade construction and engineering company, specializing in large scale facade construction and engineering, crafting customized facade solutions both for commercial and residential buildings.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInAssociatesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__248": { "value": "20. Equity-accounted investees
A. Reconciliation of carrying amount of associates and joint ventures
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 31,329 | 36,638 |
Share of profit / loss (-) net of tax | -5,012 | -11,284 |
OCI profit (loss) for the period | - | -2 |
Dividends received | -1,285 | -723 |
Effects on movement in exchange rates | -593 | -3,934 |
Share capital increase | 8,675 | 13,400 |
Additions | 1,445 | - |
Impairment | -3,144 | -2,766 |
Balance as at 31 December | 31,416 | 31,329 |
B. Financial information per associate and joint venture
The following tables present financial information per associate. The disclosed financial information reflects amounts in the financial statements of the relevant associates.
2024 | |||||||||||||
Company | Principal place of business | Segment | Associate/JV | Carrying Value | Current Assets | Non-Current Assets | Non-Current Liabilities | Current Liabilities | Revenue | Profit or loss from continuing operations | Total com-prehensive income | Direct Ownership interest | Ultimate ownership interest |
ETEM GESTAMP AUTOMOTIVE SA | Bulgaria | Aluminium | Joint Venture | 9,336 | 21,664 | 48,349 | 25,792 | 30,212 | 82,599 | 90 | 90 | 49.00% | 49.00% |
DOMOPLEX LTD | Cyprus | Steel | Associate | 1,058 | 3,115 | 1,819 | 562 | 2,289 | 5,304 | 232 | 232 | 45.00% | 45.00% |
AO TMK-CPW | Russia | Steel Pipes | Associate | 7,859 | 42,305 | 4,114 | 68 | 24,668 | 67,698 | 296 | 296 | 49.00% | 35.00% |
HC ISITMA \u0391.S. | Turkey | Copper | Joint Venture | -31 | 523 | 279 | 156 | 101 | 2,037 | -139 | 3 | 50.00% | 42.39% |
U.E.H.E.M GmbH | Germany | Aluminium | Associate | 820 | 14,158 | 53 | 52 | 12,158 | 66,443 | 1,035 | - | 49.00% | 41.54% |
NEDZINK B.V. | Netherlands | Copper | Joint Venture | - | 30,688 | 38,911 | 48,982 | 13,691 | 91,913 | -10,713 | - | 50.00% | 42.39% |
NEDZINK HOLDING B.V. | Netherlands | Copper | Joint Venture | 981 | 3,917 | 718 | - | 1,527 | 9,679 | -101 | - | 50.00% | 42.39% |
THE GRID SA | Greece | Real estate | Joint Venture | 10,330 | 16,414 | 67,584 | 56,549 | 6,857 | - | -532 | -532 | 50.00% | 34.39% |
Metallourgia Attikis | Greece | Other | Associate | 809 | 2,836 | 106 | 70 | 504 | 1,811 | 1,009 | 1,009 | 50.00% | 50.00% |
F-NOUS | Greece | Aluminium | Associate | 254 | 1,201 | 1,483 | 711 | 1,534 | 934 | -508 | -508 | 35.00% | 29.67% |
31,416 | |||||||||||||
2023 | |||||||||||||
Company | Principal place of business | Segment | Associate/JV | Carrying Value | Current Assets | Non-Current Assets | Non-Current Liabilities | Current Liabilities | Revenue | Profit or loss from continuing operations | Total com-prehensive income | Direct Ownership interest | Ultimate ownership interest |
ETEM GESTAMP AUTOMOTIVE SA | Bulgaria | Aluminium | Joint Venture | 9,282 | 16,796 | 42,479 | 15,162 | 30,196 | 61,357 | 853 | 853 | 49.00% | 49.00% |
DOMOPLEX LTD | Cyprus | Steel | Associate | 1,364 | 3,674 | 1,865 | 2,655 | 581 | 6,039 | 265 | 265 | 45.00% | 45.00% |
AO TMK-CPW | Russia | Steel Pipes | Associate | 8,307 | 28,337 | 4,248 | 104 | 9,883 | 66,636 | -2,232 | -2,232 | 49.00% | 39.09% |
HC ISITMA \u0391.S. | Turkey | Copper | Joint Venture | 38 | 508 | 132 | 29 | 66 | 2,051 | -48 | -4 | 50.00% | 42.39% |
U.E.H.E.M GmbH | Germany | Aluminium | Associate | 1,083 | 14,376 | 12 | - | 12,235 | 73,559 | 1,656 | 1,656 | 49.00% | 41.54% |
NEDZINK B.V. | Netherlands | Copper | Joint Venture | - | 30,165 | 40,240 | 32,030 | 52,377 | 79,614 | -22,277 | - | 50.00% | 42.39% |
THE GRID SA | Greece | Real estate | Joint Venture | 10,465 | 1,471 | 70,555 | 25,739 | 1,419 | - | 17,680 | 17,680 | 50.00% | 40.55% |
Metallourgia Attikis | Greece | Other | Associate | 791 | 1,612 | 257 | 68 | 231 | 1,897 | 237 | 237 | 50.00% | 50.00% |
31,329 |
-\tIn 2024, a capital increase was implemented in the associated company NedZink B.V., with ELVALHALCOR contributing EUR 8.5 million, maintaining its ownership at 50%. However, challenging global economic conditions, dampened demand for NedZink B.V.\u2019s products, resulting in a downturn in its 2024 financial performance. This resulted to an impairment loss of the investment, as a consequence of the impairment test assessment performed according to its business plan, which ELVALHALCOR incorporate the revised negative assessments for future results for NedZink B.V., following the conservatism principle. As a result, an impairment loss of EUR 3.1 million was recorded, due to the fact that the recoverable amount of the investment was lower than the carrying amount of the investment.
-\tIn 2024, a capital increase was implemented in newly acquired associated company NedZink Holding B.V., with ELVALHALCOR contributing EUR 1.2 million, acquiring a 50% ownership.
-\tSince AO TMK-CPW is based on Russia, there are restrictions on the ability of the associate to transfer funds to Viohalco and its subsidiaries in the form of cash dividends, due to the counter sanctions set by the Russian Federation. Humbel Ltd (the owner of 49% of the shares in the AO TMK-CPW) has asked AO TMK-CPW to postpone the payment of any dividends, until further notice. Therefore, during 2024, there were no transactions between AO TMK-CPW and Viohalco subsidiaries.
Aforementioned financial information is presented considering the following:
(a)\tThere are no other restrictions on the ability of joint ventures or associates to transfer funds to the entity in the form of cash dividends, or to repay loans or advances made by the entity.
(b)\tThe financial statements of joint ventures or associates are used in applying the equity method and as of the same date with that of Viohalco.
(c)\tThere are no unrecognized share of losses of a joint venture or associate, both for the reporting period and cumulatively.
C. Description of associates and joint ventures
UEHEM (UACJ ELVAL HEAT EXCHANGER MATERIALS GmbH) is a joint establishment between ElvalHalcor and UACJ Corp. It markets aluminium products to manufacturers of automotive heat exchangers in Europe.
HC ISITMA is a joint venture between ElvalHalcor and Cantas AS. It is active in the manufacture of pre-insulated copper tubes in Turkey.
AO TMK-CPW is a joint stock company between Corinth Pipeworks and AO TMK, the largest manufacturer of steel pipes in Russia and one of the top three globally. AO TMK-CPW has its production facilities in Polevskoy, Russia, where it manufactures pipes and hollow structural sections.
Domoplex is a Cyprus-based company active in the manufacturing and trading of welded wire mesh for the reinforcement of concrete.
NedZink B.V. and NedZink Holding B.V. are Netherlands based companiesfocusing on high quality zinc applications.
Gestamp Etem Automotive Bulgaria S.A. is a joint venture between Gestamp and Etem Bulgaria S.A. that focus on the commercialisation and processing of aluminium extruded profiles for the automotive industry.
THE GRID S.A.is a joint venture between Noval Property REIC and Brook Lane Capital that operates in Real Estate development sector.
Metallourgia Attikis SAis a Greek based company focusing on the production and trading of pipes, sanitary ware, faucets and heating radiators.
F-NOUS is a Greek based facade construction and engineering company, specializing in large scale facade construction and engineering, crafting customized facade solutions both for commercial and residential buildings.
", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__252-1": { "value": "21. Other investments
Viohalco designates the investments shown below as equity securities at FVOCI, as they represent investments that Viohalco intends to hold for the long term strategic purposes.
The movement of equity securities, as well as their analysis, is presented below:
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 33,686 | 8,405 |
Additions | 277 | 28,904 |
Disposals | -2,226 | -134 |
Impairment loss | - | -54 |
Impairment loss reversal | - | 2 |
Change in fair value through profit or loss | 7,462 | -3,266 |
Change in fair value through OCI | -233 | -151 |
Other changes | - | -20 |
Balance as at 31 December | 38,966 | 33,686 |
Amounts in EUR thousands | 2024 | 2023 |
Listed securities | ||
-Greek equity instruments | 283 | 2,414 |
-International equity instruments | 2,972 | 3,205 |
Unlisted securities | ||
-Greek equity instruments | 34,082 | 26,660 |
-International equity instruments | 849 | 849 |
-Mutual funds | 780 | 557 |
\u00a0Total | 38,966 | 33,686 |
The investments for which the fair value cannot be estimated were valued at cost. For the calculation of the fair value please see note 30 Financial assets and risk management. The fair value is being recorded through OCI statement (FVTOCI).
On April, 7th,2023, the merger by absorption of Etem Commercial SA, subsidiary of ElvalHalcor, by the company Cosmos Aluminium SA has been approved. As a result of the completion of the transaction, ElvalHalcor holds a minority stake of 15% in the share capital of Cosmos Aluminium SA and classified this investment to \u201cOther investments\u201d.
The investment in Cosmos Aluminium SA amounted EUR 30.5 million at year end, as it has been revalued by EUR 7.5 million, and the respective revaluation net gain has been included in the consolidated statement of profit and loss and measured in the fair value through profit and loss.
Additionally, based on the purchase agreement, the shareholders of ElvalHalcor granted Cosmos Aluminium SA with a put option to purchase the remaining outstanding capital stock of Cosmos Aluminium SA. In addition, Cosmos Aluminium SA granted ELVALHALCOR with a put option to sale the remaining outstanding capital stock of Cosmos Aluminium SA. The calculation of the purchase price prescribed in the call and put option is based on a predetermined formula based on the EBITDA of Cosmos Aluminium SA on the strike date. The exercise period for both options commenced in 2028 and their term is for six months. Upon the exercise of the aforementioned options, the shareholders of Cosmos Aluminium SA will own 100% of outstanding capital stock of Cosmos Aluminium SA. These expire in case that the shareholders do not exercise them during the exercise period. These options are recognized in the consolidated and separate statement of financial position in their fair value and were included in the carrying amount of the investment in Cosmos Aluminium SA. The recognized loss arises from their measurement in the fair value recorded in the consolidated statement of profit and loss into \u201cOther expense\u201d.
The fair value of the put and call options was based on a widely acceptable valuation model methodology considering the below:
\u2022 expected turnover & EBITDA margins of Cosmos Aluminium SA;
\u2022 risk free rate;
\u2022 duration period;
\u2022 volatility, defined as the range of values for all inputs used in the valuation model.
23. Derivatives
The following table sets out the carrying amount of derivatives:
Amounts in EUR thousands | 2024 | 2023 |
Non-current assets | \u00a0 | \u00a0 |
Interest rate swap contracts | 4,543 | 6,578 |
Forwards | - | 11 |
Electricity Swaps | - | 1,115 |
Commodity Swaps | 499 | - |
Future contracts | - | 122 |
Options | - | 730 |
Total | 5,042 | 8,557 |
Current assets | ||
Interest rate swap contracts | 3,060 | 6,029 |
Forwards | 1,552 | 8,013 |
Future contracts | 4,429 | 4,963 |
Commodity Swaps | 2,307 | 1,347 |
Total | 11,348 | 20,352 |
Non-current liabilities | ||
Interest rate swap contracts | 450 | 1,425 |
Future contracts | - | 1 |
Commodity Swaps | - | 3,598 |
Total | 450 | 5,023 |
Current liabilities | ||
Forwards | 6,212 | 794 |
Future contracts | 2,258 | 316 |
Commodity Swaps | - | 2,996 |
Total | 8,469 | 4,107 |
Variable rate loans and borrowings expose Viohalco companies to a rate volatility risk (cash flow risk). Viohalco subsidiaries entered into interest rates swaps contracts in order to be hedged by interest rate fluctuations, by transforming the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Hedge accounting
Viohalco\u2019s companies hold derivative financial instruments for cash flow and fair value hedges.
The abovementioned derivative financial instruments cover risks from:
Changes in the prices of metals;
Fluctuations of foreign exchange rates;
Changes in loan interest rates;
Fluctuations of energy.
The maturity and the nominal value of derivatives held by Viohalco\u2019s companies match the maturity and nominal value of the underlying assets / liabilities (hedged items).
Derivatives held by Viohalco\u2019s companies concern mainly:
Future contracts to hedge the risk from the change of the price of metals listed in LME (London Metal Exchange) and used in production of Viohalco\u2019s companies (i.e. mainly copper, aluminium and zinc). Such hedges are designated as cash flow hedges.
FX Forward and FX swaps to hedge the risk from the change in exchange rate of US Dollar and British Pound (i.e. currencies to which Viohalco\u2019s companies are mainly exposed). Such hedges are either designated as fair value or cash flow hedges depending on the item hedged. FX Forwards and FX swaps when used for hedging FX risk on outstanding receivables and suppliers denominated in foreign currency these instruments are designated under fair value hedging. FX forwards when used for hedging FX risk on the forecasted sales of goods or purchase of materials executed in foreign currency FX forward is hedging instruments designated under the cash flow method.
Variable rate loans and borrowings expose Viohalco companies to an interest rate volatility risk (cash flow risk). In order to hedge it, interest rate swaps are used to effectively transform the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Derivatives are recognised when Viohalco\u2019s companies enter into the transaction in order either to hedge the fair value of receivables, liabilities or commitments (fair value hedges) or highly probable transactions (cash flow hedges).
The change in fair value recognized in equity under cash flow hedging as at 31 December 2024 will be recycled to the consolidated statement of profit or loss during the next years, as some of the hedged events are expected to occur (the forecasted transactions will take place or the hedged items will affect profit or loss statement) within 2025 and some others at a later stage.
Viohalco companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively) the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined. The table below provides the results of the effectiveness test:
On 31 December 2024 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -468 | - | - |
Foreign exchange forwards | -6,454 | -2,733 | - |
Future contracts | 2,914 | -844 | -5 |
Electricity swaps | -1,115 | - | - |
Commodity swaps | 5,787 | -50 | - |
Total | 664 | -3,627 | -5 |
On 31 December 2023 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -5,754 | -\u00a0 | -\u00a0 |
Foreign exchange forwards | 7 | -\u00a0 | -\u00a0 |
Forward foreign exchange contracts | 4,997 | 806 | -\u00a0 |
Future contracts | 4,341 | 214 | 337 |
Electricity swaps | 1,115 | -\u00a0 | -\u00a0 |
Commodity swaps | -21,379 | \u00a0- | -\u00a0 |
Total | -16,673 | 1,020 | 337 |
Viohalco companies\u2019 results from the hedging activities recorded in the statement of profit or loss are presented for metal future contracts,foreign exchange contracts and the energy contracts in the \u2019Revenue\u2018 and the \u2019Cost of sales\u2018 while for interest rate swaps in the \u2019Finance income/ expenses\u2019. The amounts recognized in the consolidated statement of profit or loss are the following:
Amounts in EUR thousands | 2024 | 2023 |
Gain / loss (-) on future contracts | 16,978 | -733 |
Gain / loss (-) on FX forward contracts | -12,607 | 277 |
Gain / loss (-) on interest rate swap contracts | 2,756 | 3,170 |
Gain / loss (-) on commodity swap contracts | -1,104 | -8,561 |
\u00a0 | 6,023 | -5,848 |
Profit or loss related to derivatives used for cash flow hedging were recognized in other comprehensive income (Hedging reserve) as at 31 December 2024 and it will be recycled to profit or loss during the next financial years.
A. Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including the levels in the fair value hierarchy.
31 December 2024 | |||||
Amounts in EUR thousands | Carrying amount | First Level | Second Level | Third Level | Total |
Other investments | 38,966 | 3,214 | 2 | 35,751 | 38,966 |
Derivative financial assets | 16,390 | 4,429 | 11,961 | - | 16,390 |
\u00a0 | 55,356 | 7,642 | 11,963 | 35,751 | 55,356 |
Derivative financial liabilities | -8,919 | -2,258 | -6,662 | - | -8,919 |
\u00a0 | 46,437 | 5,385 | 5,302 | 35,751 | 46,437 |
31 December 2023 | |||||
Amounts in EUR thousands | Carrying amount | First Level | Second Level | Third Level | Total |
Other investments | 33,686 | 5,617 | 2 | 28,067 | 33,686 |
Derivative financial assets | 28,909 | 5,086 | 22,709 | 1,115 | 28,909 |
\u00a0 | 62,595 | 10,703 | 22,711 | 29,181 | 62,595 |
Derivative financial liabilities | -9,130 | -317 | -8,813 | - | -9,130 |
\u00a0 | 53,465 | 10,386 | 13,898 | 29,181 | 53,465 |
The various levels are as follows:
Level 1: Quoted prices (unadjusted) in an active market for identical assets and liabilities;
Level 2: Inputs that are observable either directly or indirectly;
Level 3: Unobservable inputs for assets and liabilities.
The fair value of the following financial assets and liabilities measured at amortised cost approximate their carrying amount:
Trade and other receivables;
Cash and cash equivalents;
Trade and other payables;
Loans and borrowings;
Lease liabilities.
Specifically, the carrying amount of loans and borrowings is considered as a good approximation of their fair value as 75% of consolidated Loans and borrowings concern floating-rate debt, which are a very good approximation of current market rates.
The following table shows reconciliation between opening and closing balances for Level 3 financial assets:
Amounts in EUR thousands | |
Balance as at 1 January 2024 | 28,067 |
Additions | 277 |
Disposals | -55 |
Fair value through PnL | 7,462 |
Balance as at 31 December 2024 | 35,751 |
Balance as at 1 January 2023 | 4,806 |
Additions | 26,922 |
Fair value through PnL | -3,642 |
Impairment loss (-)/ Reversal of impairment loss | -20 |
Balance as at 31 December 2023 | 28,067 |
\u0392. Measurement of fair values
(a) Valuation techniques and significant unobservable inputs
The fair values of financial assets that are traded in active markets (stock markets e.g. derivatives, shares, bonds, mutual funds) are set according to the published prices that are valid on the reporting date.
The fair values of financial assets that are not traded in active markets are set through the use of valuation techniques and standards that are based on market data on the reporting date.
The fair values of financial liabilities, for the purpose of being recorded in financial statements, are estimated based on the present value of the future cash flows that arise from specific contracts using the current interest rate that is available for Viohalco and its companies for the use of similar financial-credit means.
Inputs that do not meet the respective criteria and cannot be classified in Level 1 but are observable, either directly or indirectly, fall under Level 2. Over-the-counter derivative financial instruments based on prices obtained from brokers are classified in this level.
The financial assets, such as unlisted shares that are not traded in an active market whose measurement is based on the Viohalco\u2019s companies\u2019 forecasts for the issuer\u2019s future profitability are classified under Level 3.
The following table shows the valuation techniques used in measuring fair values, as well as the significant unobservable inputs used:
Type | Valuation technique | Significant unobservable inputs | Inter-relationship between key unobservable inputs and fair value measurement |
Derivatives | Market value: Price as traded in active market Market comparison technique: The fair values are based on broker quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions in similar instruments | Not applicable Broker quotes | Not applicable Not applicable |
Equity securities traded in active markets | Market value: Price as traded in active market | Not applicable | Not applicable |
Equity securities not traded in active markets | Discounted cash flows: The fair value of shares not traded in active markets is derived based on the estimates of Viohalco and its subsidiaries for the future profitability of the issuer, taking into account the expected growth rate of operations and estimated discount rates. | -\u00a0\u00a0 Risk-free rate: 2.49% (EUR), 4.57% (GBP)- Equity risk premium: 3.94% -\u00a0 Expected tax expense rate: Depending on the country of incorporation of the investee. - WACC for the most significant investment: 7-10% | The estimated fair value would increase (decrease) if: \u2022 the estimated risk-free rate, market risk premium and WACC were lower (higher) \u2022 the estimated cash flows were higher (lower) \u2022 the expected income tax rate was lower (higher) |
(b) Transfers between Levels 1 and 2
There were no transfers from Level 2 to Level 1 or from Level 1 to Level 2 in 2024 or in 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__254-1": { "value": "21. Other investments
Viohalco designates the investments shown below as equity securities at FVOCI, as they represent investments that Viohalco intends to hold for the long term strategic purposes.
The movement of equity securities, as well as their analysis, is presented below:
Amounts in EUR thousands | 2024 | 2023 |
Balance as at 1 January | 33,686 | 8,405 |
Additions | 277 | 28,904 |
Disposals | -2,226 | -134 |
Impairment loss | - | -54 |
Impairment loss reversal | - | 2 |
Change in fair value through profit or loss | 7,462 | -3,266 |
Change in fair value through OCI | -233 | -151 |
Other changes | - | -20 |
Balance as at 31 December | 38,966 | 33,686 |
Amounts in EUR thousands | 2024 | 2023 |
Listed securities | ||
-Greek equity instruments | 283 | 2,414 |
-International equity instruments | 2,972 | 3,205 |
Unlisted securities | ||
-Greek equity instruments | 34,082 | 26,660 |
-International equity instruments | 849 | 849 |
-Mutual funds | 780 | 557 |
\u00a0Total | 38,966 | 33,686 |
The investments for which the fair value cannot be estimated were valued at cost. For the calculation of the fair value please see note 30 Financial assets and risk management. The fair value is being recorded through OCI statement (FVTOCI).
On April, 7th,2023, the merger by absorption of Etem Commercial SA, subsidiary of ElvalHalcor, by the company Cosmos Aluminium SA has been approved. As a result of the completion of the transaction, ElvalHalcor holds a minority stake of 15% in the share capital of Cosmos Aluminium SA and classified this investment to \u201cOther investments\u201d.
The investment in Cosmos Aluminium SA amounted EUR 30.5 million at year end, as it has been revalued by EUR 7.5 million, and the respective revaluation net gain has been included in the consolidated statement of profit and loss and measured in the fair value through profit and loss.
Additionally, based on the purchase agreement, the shareholders of ElvalHalcor granted Cosmos Aluminium SA with a put option to purchase the remaining outstanding capital stock of Cosmos Aluminium SA. In addition, Cosmos Aluminium SA granted ELVALHALCOR with a put option to sale the remaining outstanding capital stock of Cosmos Aluminium SA. The calculation of the purchase price prescribed in the call and put option is based on a predetermined formula based on the EBITDA of Cosmos Aluminium SA on the strike date. The exercise period for both options commenced in 2028 and their term is for six months. Upon the exercise of the aforementioned options, the shareholders of Cosmos Aluminium SA will own 100% of outstanding capital stock of Cosmos Aluminium SA. These expire in case that the shareholders do not exercise them during the exercise period. These options are recognized in the consolidated and separate statement of financial position in their fair value and were included in the carrying amount of the investment in Cosmos Aluminium SA. The recognized loss arises from their measurement in the fair value recorded in the consolidated statement of profit and loss into \u201cOther expense\u201d.
The fair value of the put and call options was based on a widely acceptable valuation model methodology considering the below:
\u2022 expected turnover & EBITDA margins of Cosmos Aluminium SA;
\u2022 risk free rate;
\u2022 duration period;
\u2022 volatility, defined as the range of values for all inputs used in the valuation model.
32. Joint operations
During 2024, the following joint operations were formed:
Hellenic Cables has a 68.80% interest in a joint arrangement called Jan De Nul Luxembourg SA \u2013 Hellenic Cables SA Consortium Baltyk 2 sp\u00f3\u0142ka jawna, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, transport and install export cables for the Polish offshore wind farms Baltyk II. The principal place of business of the joint operation is in Poland.
Hellenic Cables has a 70.10% interest in a joint arrangement called Jan De Nul Luxembourg SA \u2013 Hellenic Cables SA Consortium Baltyk 3 sp\u00f3\u0142ka jawna, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, transport and install export cables for the Polish offshore wind farms Baltyk III. The principal place of business of the joint operation is in Poland.
Hellenic Cables has a 54.69% interest in a joint arrangement called Jan De Nul Luxembourg SA \u2013 Hellenic Cables SA Consortium Dolwin Kappa, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is the turnkey delivery of three HVAC offshore grid connection cables for the offshore wind farms to be developed in zones N-3.7 & N-3.8 in Germany. These cables will connect the wind farms to the DolWin Kappa convertor station, from where HVDC cables transfer the produced energy to shore. The principal place of business of the joint operation is in Germany.
The joint operations described below were formed during prior years:
Hellenic Cables has a 58.37% interest in a joint arrangement called Jan De Nul Luxembourg - Hellenic Cables Consortium \u2013 Thor Export Cables I/S, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, supply, transport, install and test the 275kV HVAC export cable system for the Thor Offshore Wind Farm. The principal place of business of the joint operation is in Denmark.
Hellenic Cables has a 38.24% interest in a joint arrangement called Jan De Nul Luxembourg - Hellenic Cables Consortium \u2013 Thor Array Cables I/S, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, supply, transport, install and test the 66kV inter-array cable system for the Thor Offshore Wind Farm. The principal place of business of the joint operation is in Denmark.
Hellenic Cables has a 62.48% interest in a joint arrangement called VO Cablel VOF, which was set up as a partnership together with Van Oord. The scope of this joint operation scheme is to supply and install sea and land cables for the Hollandse Kust (South) Alpha project and Hollandse Kust (South) Beta project. The principal place of business of the joint operation is in the Netherlands.
Hellenic Cables has a 50.77% interest in a joint arrangement called DEME Offshore NL - Hellenic Cables V.O.F., which was set up as a partnership together with Tideway. The scope of this joint operation scheme is to execute a turnkey contract for the supply and installation of submarine cables for the connection of the Seamade offshore wind project to the Belgian grid. The principal place of business of the joint operation is in Belgium.
Fulgor has a 10.00% interest in a joint arrangement called Fulgor \u2013 JDN Consortium, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to execute a turnkey contract for the installation of submarine cables for the interconnection Crete-Peloponnese in Greece. The principal place of business of this joint operation is in Greece.
Fulgor has a 70.27% interest in a joint arrangement called Fulgor \u2013 Asso.subsea Ltd Consortium, which was set up as a partnership together with Asso.subsea Ltd. The scope of this joint operation scheme is to execute a turnkey contract for the design, manufacturing, supply and installation of the 150 kV submarine cable system connecting the under construction 330 MW Kafireas II Wind Farm to Greece\u2019s mainland grid. The principal place of business of this joint operation is in Greece.
All the agreements stated above require unanimous consent from all parties for all relevant activities. The two partners have direct rights to the assets of the partnership and are jointly and severally liable for the liabilities incurred by the partnership. These entities are therefore classified as joint operations and the Group recognises its direct right to the jointly held assets, liabilities, revenues an expenses as described in note 5.1(g).
", "dimensions": { "concept": "ifrs-full:DisclosureOfInvestmentsOtherThanInvestmentsAccountedForUsingEquityMethodExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__256": { "value": "22. Assets held for sale
The following assets and liabilities were reclassified at their fair value as held for sale as at 31 December 2024:
Amounts in EUR thousands | 2024 | 2023 |
Property Plant & Equipment | 301 | 1,422 |
Intangible assets | - | 11 |
Other non current assets | - | 21 |
Trade and other receivables | - | 114 |
Cash & Cash equivalents | - | 280 |
Total Assets Held for Sale | 301 | 1,849 |
Non current Loans & borrowings | - | 785 |
Trade and other payables | - | 320 |
Current Loans & borrowings | - | 59 |
Total Liabilities directly associated with Assets Held for Sale | - | 1,163 |
On 12.12.2023, an agreement was signed between subsidiary \u201cELVAL COLOUR SINGLE MEMBER S. A.\u201d, associate \u201cCOSMOS ALUMINUM S. A.\u201d and \u201cAVANTECH O.E.\u201d for the participation of last two in the capital increase of 100% subsidiary company of \u201cELVAL COLOUR SINGLE MEMBER S. A.\u201d, \u201cROULOC S.A.\u201d aiming to expand its commercial network and of its product portfolio.
As a result of above Corporate Transformation:
- ROULOC S.A. was renamed to \u201cf-nous SOCIETY ANONYMOUS\u201d;
- Elvalhalcor, through its participation in ELVAL COLOR SA, will hold a 35% in the share capital of \u201cf-nous SOCIETY ANONYMOUS \u201c, while the new shareholders \u201cCOSMOS ALUMINUM\u201d and \u201cAVANTECH O.E.\u201d will hold 35% and 30% respectively .
", "dimensions": { "concept": "ifrs-full:DisclosureOfNoncurrentAssetsHeldForSaleAndDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__258": { "value": "
22. Assets held for sale
The following assets and liabilities were reclassified at their fair value as held for sale as at 31 December 2024:
Amounts in EUR thousands | 2024 | 2023 |
Property Plant & Equipment | 301 | 1,422 |
Intangible assets | - | 11 |
Other non current assets | - | 21 |
Trade and other receivables | - | 114 |
Cash & Cash equivalents | - | 280 |
Total Assets Held for Sale | 301 | 1,849 |
Non current Loans & borrowings | - | 785 |
Trade and other payables | - | 320 |
Current Loans & borrowings | - | 59 |
Total Liabilities directly associated with Assets Held for Sale | - | 1,163 |
On 12.12.2023, an agreement was signed between subsidiary \u201cELVAL COLOUR SINGLE MEMBER S. A.\u201d, associate \u201cCOSMOS ALUMINUM S. A.\u201d and \u201cAVANTECH O.E.\u201d for the participation of last two in the capital increase of 100% subsidiary company of \u201cELVAL COLOUR SINGLE MEMBER S. A.\u201d, \u201cROULOC S.A.\u201d aiming to expand its commercial network and of its product portfolio.
As a result of above Corporate Transformation:
- ROULOC S.A. was renamed to \u201cf-nous SOCIETY ANONYMOUS\u201d;
- Elvalhalcor, through its participation in ELVAL COLOR SA, will hold a 35% in the share capital of \u201cf-nous SOCIETY ANONYMOUS \u201c, while the new shareholders \u201cCOSMOS ALUMINUM\u201d and \u201cAVANTECH O.E.\u201d will hold 35% and 30% respectively .
", "dimensions": { "concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__260": { "value": "
23. Derivatives
The following table sets out the carrying amount of derivatives:
Amounts in EUR thousands | 2024 | 2023 |
Non-current assets | \u00a0 | \u00a0 |
Interest rate swap contracts | 4,543 | 6,578 |
Forwards | - | 11 |
Electricity Swaps | - | 1,115 |
Commodity Swaps | 499 | - |
Future contracts | - | 122 |
Options | - | 730 |
Total | 5,042 | 8,557 |
Current assets | ||
Interest rate swap contracts | 3,060 | 6,029 |
Forwards | 1,552 | 8,013 |
Future contracts | 4,429 | 4,963 |
Commodity Swaps | 2,307 | 1,347 |
Total | 11,348 | 20,352 |
Non-current liabilities | ||
Interest rate swap contracts | 450 | 1,425 |
Future contracts | - | 1 |
Commodity Swaps | - | 3,598 |
Total | 450 | 5,023 |
Current liabilities | ||
Forwards | 6,212 | 794 |
Future contracts | 2,258 | 316 |
Commodity Swaps | - | 2,996 |
Total | 8,469 | 4,107 |
Variable rate loans and borrowings expose Viohalco companies to a rate volatility risk (cash flow risk). Viohalco subsidiaries entered into interest rates swaps contracts in order to be hedged by interest rate fluctuations, by transforming the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Hedge accounting
Viohalco\u2019s companies hold derivative financial instruments for cash flow and fair value hedges.
The abovementioned derivative financial instruments cover risks from:
Changes in the prices of metals;
Fluctuations of foreign exchange rates;
Changes in loan interest rates;
Fluctuations of energy.
The maturity and the nominal value of derivatives held by Viohalco\u2019s companies match the maturity and nominal value of the underlying assets / liabilities (hedged items).
Derivatives held by Viohalco\u2019s companies concern mainly:
Future contracts to hedge the risk from the change of the price of metals listed in LME (London Metal Exchange) and used in production of Viohalco\u2019s companies (i.e. mainly copper, aluminium and zinc). Such hedges are designated as cash flow hedges.
FX Forward and FX swaps to hedge the risk from the change in exchange rate of US Dollar and British Pound (i.e. currencies to which Viohalco\u2019s companies are mainly exposed). Such hedges are either designated as fair value or cash flow hedges depending on the item hedged. FX Forwards and FX swaps when used for hedging FX risk on outstanding receivables and suppliers denominated in foreign currency these instruments are designated under fair value hedging. FX forwards when used for hedging FX risk on the forecasted sales of goods or purchase of materials executed in foreign currency FX forward is hedging instruments designated under the cash flow method.
Variable rate loans and borrowings expose Viohalco companies to an interest rate volatility risk (cash flow risk). In order to hedge it, interest rate swaps are used to effectively transform the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Derivatives are recognised when Viohalco\u2019s companies enter into the transaction in order either to hedge the fair value of receivables, liabilities or commitments (fair value hedges) or highly probable transactions (cash flow hedges).
The change in fair value recognized in equity under cash flow hedging as at 31 December 2024 will be recycled to the consolidated statement of profit or loss during the next years, as some of the hedged events are expected to occur (the forecasted transactions will take place or the hedged items will affect profit or loss statement) within 2025 and some others at a later stage.
Viohalco companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively) the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined. The table below provides the results of the effectiveness test:
On 31 December 2024 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -468 | - | - |
Foreign exchange forwards | -6,454 | -2,733 | - |
Future contracts | 2,914 | -844 | -5 |
Electricity swaps | -1,115 | - | - |
Commodity swaps | 5,787 | -50 | - |
Total | 664 | -3,627 | -5 |
On 31 December 2023 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -5,754 | -\u00a0 | -\u00a0 |
Foreign exchange forwards | 7 | -\u00a0 | -\u00a0 |
Forward foreign exchange contracts | 4,997 | 806 | -\u00a0 |
Future contracts | 4,341 | 214 | 337 |
Electricity swaps | 1,115 | -\u00a0 | -\u00a0 |
Commodity swaps | -21,379 | \u00a0- | -\u00a0 |
Total | -16,673 | 1,020 | 337 |
Viohalco companies\u2019 results from the hedging activities recorded in the statement of profit or loss are presented for metal future contracts,foreign exchange contracts and the energy contracts in the \u2019Revenue\u2018 and the \u2019Cost of sales\u2018 while for interest rate swaps in the \u2019Finance income/ expenses\u2019. The amounts recognized in the consolidated statement of profit or loss are the following:
Amounts in EUR thousands | 2024 | 2023 |
Gain / loss (-) on future contracts | 16,978 | -733 |
Gain / loss (-) on FX forward contracts | -12,607 | 277 |
Gain / loss (-) on interest rate swap contracts | 2,756 | 3,170 |
Gain / loss (-) on commodity swap contracts | -1,104 | -8,561 |
\u00a0 | 6,023 | -5,848 |
Profit or loss related to derivatives used for cash flow hedging were recognized in other comprehensive income (Hedging reserve) as at 31 December 2024 and it will be recycled to profit or loss during the next financial years.
Amounts in EUR thousands | 2024 | 2023 |
Non-current assets | \u00a0 | \u00a0 |
Interest rate swap contracts | 4,543 | 6,578 |
Forwards | - | 11 |
Electricity Swaps | - | 1,115 |
Commodity Swaps | 499 | - |
Future contracts | - | 122 |
Options | - | 730 |
Total | 5,042 | 8,557 |
Current assets | ||
Interest rate swap contracts | 3,060 | 6,029 |
Forwards | 1,552 | 8,013 |
Future contracts | 4,429 | 4,963 |
Commodity Swaps | 2,307 | 1,347 |
Total | 11,348 | 20,352 |
Non-current liabilities | ||
Interest rate swap contracts | 450 | 1,425 |
Future contracts | - | 1 |
Commodity Swaps | - | 3,598 |
Total | 450 | 5,023 |
Current liabilities | ||
Forwards | 6,212 | 794 |
Future contracts | 2,258 | 316 |
Commodity Swaps | - | 2,996 |
Total | 8,469 | 4,107 |
Hedge accounting
Viohalco\u2019s companies hold derivative financial instruments for cash flow and fair value hedges.
The abovementioned derivative financial instruments cover risks from:
Changes in the prices of metals;
Fluctuations of foreign exchange rates;
Changes in loan interest rates;
Fluctuations of energy.
The maturity and the nominal value of derivatives held by Viohalco\u2019s companies match the maturity and nominal value of the underlying assets / liabilities (hedged items).
Derivatives held by Viohalco\u2019s companies concern mainly:
Future contracts to hedge the risk from the change of the price of metals listed in LME (London Metal Exchange) and used in production of Viohalco\u2019s companies (i.e. mainly copper, aluminium and zinc). Such hedges are designated as cash flow hedges.
FX Forward and FX swaps to hedge the risk from the change in exchange rate of US Dollar and British Pound (i.e. currencies to which Viohalco\u2019s companies are mainly exposed). Such hedges are either designated as fair value or cash flow hedges depending on the item hedged. FX Forwards and FX swaps when used for hedging FX risk on outstanding receivables and suppliers denominated in foreign currency these instruments are designated under fair value hedging. FX forwards when used for hedging FX risk on the forecasted sales of goods or purchase of materials executed in foreign currency FX forward is hedging instruments designated under the cash flow method.
Variable rate loans and borrowings expose Viohalco companies to an interest rate volatility risk (cash flow risk). In order to hedge it, interest rate swaps are used to effectively transform the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
Derivatives are recognised when Viohalco\u2019s companies enter into the transaction in order either to hedge the fair value of receivables, liabilities or commitments (fair value hedges) or highly probable transactions (cash flow hedges).
The change in fair value recognized in equity under cash flow hedging as at 31 December 2024 will be recycled to the consolidated statement of profit or loss during the next years, as some of the hedged events are expected to occur (the forecasted transactions will take place or the hedged items will affect profit or loss statement) within 2025 and some others at a later stage.
Viohalco companies examine the effectiveness of the cash flow hedge at inception (prospectively) by comparing the critical terms of the hedging instrument with the critical terms of the hedged item, and then at every reporting date (retrospectively) the effectiveness of the cash flow hedge by applying the dollar offset method on a cumulative basis is examined. The table below provides the results of the effectiveness test:
On 31 December 2024 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -468 | - | - |
Foreign exchange forwards | -6,454 | -2,733 | - |
Future contracts | 2,914 | -844 | -5 |
Electricity swaps | -1,115 | - | - |
Commodity swaps | 5,787 | -50 | - |
Total | 664 | -3,627 | -5 |
On 31 December 2023 | |||
Effective portion of derivatives | Ineffective portion of derivatives | Derivatives not qualifying for hedge accounting | |
Interest rate swap contracts | -5,754 | -\u00a0 | -\u00a0 |
Foreign exchange forwards | 7 | -\u00a0 | -\u00a0 |
Forward foreign exchange contracts | 4,997 | 806 | -\u00a0 |
Future contracts | 4,341 | 214 | 337 |
Electricity swaps | 1,115 | -\u00a0 | -\u00a0 |
Commodity swaps | -21,379 | \u00a0- | -\u00a0 |
Total | -16,673 | 1,020 | 337 |
Viohalco companies\u2019 results from the hedging activities recorded in the statement of profit or loss are presented for metal future contracts,foreign exchange contracts and the energy contracts in the \u2019Revenue\u2018 and the \u2019Cost of sales\u2018 while for interest rate swaps in the \u2019Finance income/ expenses\u2019. The amounts recognized in the consolidated statement of profit or loss are the following:
Amounts in EUR thousands | 2024 | 2023 |
Gain / loss (-) on future contracts | 16,978 | -733 |
Gain / loss (-) on FX forward contracts | -12,607 | 277 |
Gain / loss (-) on interest rate swap contracts | 2,756 | 3,170 |
Gain / loss (-) on commodity swap contracts | -1,104 | -8,561 |
\u00a0 | 6,023 | -5,848 |
30. Financial instruments
A. Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including the levels in the fair value hierarchy.
31 December 2024 | |||||
Amounts in EUR thousands | Carrying amount | First Level | Second Level | Third Level | Total |
Other investments | 38,966 | 3,214 | 2 | 35,751 | 38,966 |
Derivative financial assets | 16,390 | 4,429 | 11,961 | - | 16,390 |
\u00a0 | 55,356 | 7,642 | 11,963 | 35,751 | 55,356 |
Derivative financial liabilities | -8,919 | -2,258 | -6,662 | - | -8,919 |
\u00a0 | 46,437 | 5,385 | 5,302 | 35,751 | 46,437 |
31 December 2023 | |||||
Amounts in EUR thousands | Carrying amount | First Level | Second Level | Third Level | Total |
Other investments | 33,686 | 5,617 | 2 | 28,067 | 33,686 |
Derivative financial assets | 28,909 | 5,086 | 22,709 | 1,115 | 28,909 |
\u00a0 | 62,595 | 10,703 | 22,711 | 29,181 | 62,595 |
Derivative financial liabilities | -9,130 | -317 | -8,813 | - | -9,130 |
\u00a0 | 53,465 | 10,386 | 13,898 | 29,181 | 53,465 |
The various levels are as follows:
Level 1: Quoted prices (unadjusted) in an active market for identical assets and liabilities;
Level 2: Inputs that are observable either directly or indirectly;
Level 3: Unobservable inputs for assets and liabilities.
The fair value of the following financial assets and liabilities measured at amortised cost approximate their carrying amount:
Trade and other receivables;
Cash and cash equivalents;
Trade and other payables;
Loans and borrowings;
Lease liabilities.
Specifically, the carrying amount of loans and borrowings is considered as a good approximation of their fair value as 75% of consolidated Loans and borrowings concern floating-rate debt, which are a very good approximation of current market rates.
The following table shows reconciliation between opening and closing balances for Level 3 financial assets:
Amounts in EUR thousands | |
Balance as at 1 January 2024 | 28,067 |
Additions | 277 |
Disposals | -55 |
Fair value through PnL | 7,462 |
Balance as at 31 December 2024 | 35,751 |
Balance as at 1 January 2023 | 4,806 |
Additions | 26,922 |
Fair value through PnL | -3,642 |
Impairment loss (-)/ Reversal of impairment loss | -20 |
Balance as at 31 December 2023 | 28,067 |
\u0392. Measurement of fair values
(a) Valuation techniques and significant unobservable inputs
The fair values of financial assets that are traded in active markets (stock markets e.g. derivatives, shares, bonds, mutual funds) are set according to the published prices that are valid on the reporting date.
The fair values of financial assets that are not traded in active markets are set through the use of valuation techniques and standards that are based on market data on the reporting date.
The fair values of financial liabilities, for the purpose of being recorded in financial statements, are estimated based on the present value of the future cash flows that arise from specific contracts using the current interest rate that is available for Viohalco and its companies for the use of similar financial-credit means.
Inputs that do not meet the respective criteria and cannot be classified in Level 1 but are observable, either directly or indirectly, fall under Level 2. Over-the-counter derivative financial instruments based on prices obtained from brokers are classified in this level.
The financial assets, such as unlisted shares that are not traded in an active market whose measurement is based on the Viohalco\u2019s companies\u2019 forecasts for the issuer\u2019s future profitability are classified under Level 3.
The following table shows the valuation techniques used in measuring fair values, as well as the significant unobservable inputs used:
Type | Valuation technique | Significant unobservable inputs | Inter-relationship between key unobservable inputs and fair value measurement |
Derivatives | Market value: Price as traded in active market Market comparison technique: The fair values are based on broker quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions in similar instruments | Not applicable Broker quotes | Not applicable Not applicable |
Equity securities traded in active markets | Market value: Price as traded in active market | Not applicable | Not applicable |
Equity securities not traded in active markets | Discounted cash flows: The fair value of shares not traded in active markets is derived based on the estimates of Viohalco and its subsidiaries for the future profitability of the issuer, taking into account the expected growth rate of operations and estimated discount rates. | -\u00a0\u00a0 Risk-free rate: 2.49% (EUR), 4.57% (GBP)- Equity risk premium: 3.94% -\u00a0 Expected tax expense rate: Depending on the country of incorporation of the investee. - WACC for the most significant investment: 7-10% | The estimated fair value would increase (decrease) if: \u2022 the estimated risk-free rate, market risk premium and WACC were lower (higher) \u2022 the estimated cash flows were higher (lower) \u2022 the expected income tax rate was lower (higher) |
(b) Transfers between Levels 1 and 2
There were no transfers from Level 2 to Level 1 or from Level 1 to Level 2 in 2024 or in 2023.
C. Financial risk management
Viohalco and its companies are exposed to credit, liquidity and market risk due to the use of financial instruments. This Note sets forth information on their exposure to each one of the above risks, the policies and procedures applied to risk measurement. More quantitative particulars on these disclosures are included throughout of the Consolidated Financial Statements.
The risk management policies are applied to identify and analyze the risks facing Viohalco and its companies, set risk-taking limits and apply relevant control systems.Risk management procedures are reviewed regularly and changes are implemented if the need arise.
The implementation of risk management policies and procedures is monitored by the Internal Audit function, which performs ordinary and extraordinary audits relating to the implementation of procedures, whereas the results of such audits are notified to the Board of Directors.
C.1. Credit risk
Credit risk is the risk of the financial loss to Viohalco and its companies, if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the companies\u2019 receivables from customers, contract assets and bank deposits.
The carrying amount of financial assets represents the maximum credit exposure.
Amounts in EUR thousands | Note | 2024 | 2023 |
Trade & other receivables | 15 | 611,283 | 748,668 |
Contract assets | 7 | 256,322 | 236,552 |
Less: | |||
Other down payments | 15 | -10,964 | -12,058 |
Tax assets | 15 | -62,951 | -45,947 |
Other non-financial assets | -50,072 | -101,442 | |
743,619 | 825,773 | ||
Other investments | 21 | 38,966 | 33,686 |
Cash and cash equivalents | 16 | 696,720 | 395,015 |
Derivatives | 23 | 16,390 | 28,909 |
752,076 | 457,610 | ||
Total | 1,495,695 | 1,283,383 |
(a)\tTrade and other receivables
Viohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured.
When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.
Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables.
At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:
\u00a0 | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 294,046 | 301,265 |
Other EU member states | 254,604 | 255,645 |
Other European countries | 73,071 | 68,131 |
Asia | 37,798 | 42,842 |
America | 63,648 | 142,651 |
Africa | 19,897 | 14,290 |
Oceania | 554 | 949 |
Total | 743,619 | 825,773 |
The ageing of trade and other receivables and contract assets that were not impaired was as follows:
Amounts in EUR thousands | 2024 | 2023 |
Neither past due nor impaired | 630,207 | 706,092 |
Overdue | \u00a0 | |
- Up to 6 months | 94,339 | 100,175 |
- Over 6 months | 19,073 | 19,506 |
Total | 743,619 | 825,773 |
Based on management assessment,the amounts that are past due up to 6 months and over 6 months are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.
Viohalco companies insure a significant portion of their receivables and at 31 December 2024, 71% of the receivables balances were credit insured.
The movement in impairment of trade and other receivables and contract assets is as follows:
Amounts in EUR thousands | 2024 | 2023 | ||||
Trade & other receivables | Contract assets | Total | Trade & other receivables | Contract assets | Total | |
Balance as at 1 January | 71,009 | 248 | 71,256 | 69,212 | 203 | 69,414 |
Impairment loss recognized | 8,982 | - | 8,982 | 8,954 | 68 | 9,022 |
Amounts written off | -3,137 | - | -3,137 | -6,164 | - | -6,164 |
Impairment loss reversed | -1,290 | -38 | -1,327 | -214 | -23 | -237 |
Foreign exchange differences | 1,391 | - | 1,391 | -764 | -\u00a0 | -764 |
Reclassification | -28 | - | -28 | -16 | \u00a0- | -16 |
Balance as at 31 December | 76,928 | 210 | 77,137 | 71,009 | 248 | 71,256 |
The allowance for expected credit losses for trade receivables and contract assets are calculated at individual level when there is an indication of impairment. For receivables and contract assets without any indication of impairment the expected credit losses are based on the historical data combined with forward-looking macroeconomic factors affecting credit risk, such as country risk and industry related risks. Expected loss rates are updated at every reporting date. The rising inflation and interest rates were also taken into consideration when calculating expected credit losses for the current year, without any significant impact on the impairment loss recognized.
In 2024, the impairment loss recognized concerned mainly copper segment while amounts that have been impaired mainly in other segment were written off. On the contrary, a reversal of impairment loss was recorded, as a result of the improvement of the expected loss rates of major clients in the aluminium and cables segments.
The following collateral exists for securing non-insured receivables from customers and contract assets:
\u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amounts in EUR thousands | \u00a0 | 2024 | 2023 |
Cash collateral | 181 | 530 | |
Letter of credit | 17,179 | 18,302 | |
Collateral on property | 1,850 | 1,850 | |
Payables which can be offset by receivables | 6,292 | 5,832 | |
Other | 2,262 | 2,987 | |
Total | \u00a0 | 27,763 | 29,501 |
(b)\tCash and cash equivalents
Viohalco and its subsidiaries held cash and cash equivalents of EUR 697 million at 31 December 2024 (2023: EUR 395 million). The cash and cash equivalents are held with banks and financial institutions, which are rated from A3 to Ba3 based on Moody\u2019s scale.
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. Viohalco considers that its cash and cash equivalents have low credit risk based on the credit assessment performed.
C.2. Liquidity risk
Liquidity risk is the risk that Viohalco companies will encounter difficulties in meeting their fianancial obligations in a timely manner. To manage liquidity risk they ensure, that sufficient liquidity is available, to meet their liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to their reputation.
Viohalco companies maintain sufficient undrawn credit limits to meet all their scheduled financial obligations as well as most unexpected ones.
Exposure to liquidity risk
Financial liabilities and derivatives based on contractual maturity are broken down as follows:
2024 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 934,534 | 721,491 | 52,896 | 147,134 | 57,918 | 979,440 |
Bond issues | 1,223,601 | 190,655 | 207,540 | 763,607 | 240,061 | 1,401,863 |
Lease liabilities | 51,444 | 12,707 | 10,513 | 16,699 | 16,615 | 56,534 |
Derivatives | 8,919 | 8,469 | 450 | - | - | 8,919 |
Contract liabilities | 226,488 | 227,970 | 25 | 42 | - | 228,036 |
Trade and other payables | 1,536,443 | 1,527,239 | 15,660 | 7,404 | 1,133 | 1,551,437 |
\u00a0 | 3,981,430 | 2,688,532 | 287,085 | 934,886 | 315,727 | 4,226,229 |
2023 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 897,692 | 628,960 | 87,334 | 165,785 | 90,609 | 972,687 |
Bond issues | 1,323,743 | 218,947 | 210,014 | 770,075 | 355,183 | 1,554,219 |
Lease liabilities | 46,620 | 13,065 | 10,125 | 15,386 | 21,923 | 60,498 |
Derivatives | 9,130 | 4,107 | 4,642 | 381 | - | 9,130 |
Contract liabilities | 281,387 | 282,022 | 39 | - | - | 282,060 |
Trade and other payables | 1,152,551 | 1,160,562 | 4,961 | 6,404 | 1,133 | 1,173,060 |
\u00a0 | 3,711,123 | 2,307,663 | 317,114 | 958,031 | 468,847 | 4,051,655 |
Viohalco companies\u2019 loans are subject to termination clauses based on financial ratios, such as \u2019Total liabilities / Total equity\u2018, \u2019Net debt / Total sales\u2018 and \u2019Current assets / Current liabilities\u2018, that need to be maintained above or below certain predetermined levels. These ratios are monitored regularly in order to avoid breaches that may lead to loans becoming due before contractual maturity, causing liquidity pressures.
C.3. Market risk
Market risk is the risk that changes in market prices \u2013 such as commodity prices, foreign exchange rates and interest rates - will affect Viohalco and its companies income or the value of their financial instruments. Viohalco\u2019s companies use derivatives to manage market risk.
Generally, Viohalco companies apply hedge accounting to manage volatility in their returns (P&L) .
(a) Currency risk:
Viohalco and its companies are exposed to currency risk in relation to the sales and purchases carried out and the loans issued in a currency other than the functional currency of Viohalco and its companies, which is mainly EUR. The most important currencies in which these transactions are held are EUR, USD and GBP.
Over time, Viohalco\u2019s companies hedge the greatest part of their exposure to foreign currencies. Viohalco\u2019s companies enter mainly into forward contracts with external counterparties so as to deal with currency risk. These contracts mainly expire within the next 12 months from the reporting date. If necessary, such contracts are renewed upon expiry.
FX risk may also be covered \u201cnaturally\u201d by taking out loans in the respective currencies if loan interest is denominated in the same currency as that of cash flows coming from operating activities.
The capital investments of Viohalco companies are not hedgedas they have been made mainly in Euro.
The summary quantitative data about Viohalco and its companies\u2019 exposure to currency risk as reported is as follows.
2024 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 100,710 | 23,957 | 20,156 | 2,766 | 20,491 | 1,565 | 169,644 | 441,639 | 611,283 |
Contract assets | 5,755 | - | - | - | - | - | 5,755 | 250,567 | 256,322 |
Loans and borrowings | -6,856 | -32,334 | -4,025 | -1,019 | -4,034 | -1,019 | -49,287 | -2,160,291 | -2,209,578 |
Trade and other payables | -121,630 | -17,209 | -63,231 | -610 | -25,382 | -2,262 | -230,324 | -1,306,120 | -1,536,443 |
Contract Iiabilities | -27,780 | -1,439 | -686 | - | -55 | - | -29,960 | -196,528 | -226,488 |
Cash & cash equivalents | 100,074 | 8,170 | 7,194 | 302 | 4,828 | 1,262 | 121,829 | 574,891 | 696,720 |
\u00a0 | 50,273 | -18,856 | -40,593 | 1,439 | -4,152 | -454 | -12,343 | -2,395,843 | -2,408,185 |
Derivatives for risk hedging (Nominal Value) | -31,384 | -28,066 | - | - | - | - | -59,450 | 20,650 | -38,800 |
Exposure | 18,890 | -46,922 | -40,593 | 1,439 | -4,152 | -454 | -71,793 | -2,375,193 | -2,446,985 |
2023 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 175,686 | 15,369 | 18,888 | 1,534 | 27,363 | 6,609 | 245,448 | 503,220 | 748,668 |
Contract assets | 42,159 | - | 4 | - | - | - | 42,163 | 194,389 | 236,552 |
Loans and borrowings | -14,032 | -26,976 | -4,527 | -31 | -4,909 | -233 | -50,707 | -2,217,346 | -2,268,054 |
Trade and other payables | -129,008 | -13,631 | -47,226 | -507 | -25,364 | -3,174 | -218,910 | -991,679 | -1,210,588 |
Contract Iiabilities | -135,607 | - | -1,168 | - | -77 | - | -136,852 | -144,535 | -281,387 |
Cash & cash equivalents | 42,519 | 2,346 | 5,397 | 151 | 2,523 | 1,673 | 54,609 | 340,406 | 395,015 |
\u00a0 | -18,282 | -22,891 | -28,632 | 1,146 | -463 | 4,874 | -64,249 | -2,315,546 | -2,379,795 |
Derivatives for risk hedging (Nominal Value) | 214,110 | 1,036 | -\u00a0 | -\u00a0 | -\u00a0 | -\u00a0 | 215,146 | - | 215,146 |
Exposure | 195,828 | -21,855 | -28,632 | 1,146 | -463 | 4,874 | 150,898 | -2,315,546 | -2,164,648 |
\u201cDerivatives for risk hedging\u201d includes also derivatives that relate to highly probable transactions, which have not been yet recognized as assets or liabilities in the consolidated statement of financial position. Euro denominated amounts are included for totals\u2019 reconciliation purposes.
The following exchange rates have been applied during the year.
Average exchange rate | Year end spot rate | |||
2024 | 2023 | 2024 | 2023 | |
USD | 1.08 | 1.08 | 1.04 | 1.11 |
GBP | 0.85 | 0.87 | 0.83 | 0.87 |
BGN | 1.96 | 1.96 | 1.96 | 1.96 |
RSD | 117.09 | 117.25 | 117.01 | 117.17 |
RO\u039d | 4.97 | 4.95 | 4.97 | 4.97 |
Viohalco is primarily exposed to changes of Euro against US dollar, pound sterling, Serbian Dinar and RON. A reasonably possible strengthening (weakening) of Euro against these currencies as at 31 December would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The Bulgarian currency LEV is not analysed below due to its fixed currency rate at 1.96 BGN/EUR.
Profit or loss | Equity, net of tax | |||
Amounts in EUR thousands | EUR Strengthening | EUR Weakening | EUR Strengthening | EUR Weakening |
2024 | ||||
USD (10% movement) | 4,006 | -4,006 | 6,454 | -6,454 |
GBP (10% movement) | 5,844 | -5,844 | 8,033 | -8,033 |
RSD (10% movement) | -112 | 112 | -112 | 112 |
RON (10% movement) | 324 | -324 | 324 | -324 |
2023 | ||||
USD (10% movement) | -14,404 | 14,404 | -31,105 | 31,105 |
GBP (10% movement) | 2,227 | -2,227 | 2,147 | -2,147 |
RSD (10% movement) | -89 | 89 | -89 | 89 |
RON (10% movement) | 36 | -36 | 36 | -36 |
(b) Interest rate risk:
Viohalco Subsidiaries have adopted a flexible policy of ensuring that a portion of their Medium and LT debt obligations are on a fixed rate basis. This is achieved through a combination of issuing medium term, fixed rate bond loans and using interest rate swaps to hedge a portion of their floating rate medium and LT loans. The interest rate profile of Viohalco companies\u2019 interest-bearing financial instruments, as reported is as follows.
Nominal amount | ||
Amounts in EUR thousands | 2024 | 2023 |
Fixed-rate instruments | ||
Financial liabilities | 552,874 | 548,973 |
Variable-rate instruments | ||
Financial liabilities | 1,656,704 | 1,719,081 |
Interest rate swaps (nominal value) | -215,293 | -249,721 |
1,441,411 | 1,469,360 |
Fixed-rate instruments
Viohalco does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Viohalco currently uses derivatives (interest rate swaps) as hedging instruments under a cash flow hedge accounting model.
Sensitivity analysis for variable-rate instruments
A reasonably possible change of 0.25% in interest rates of variable-rate instruments at the reporting date would have increased/ decreased (-) profit or loss by the amount shown below. This analysis assumes that all other variables, in particular foreign currency exchange rate, remain constant.
Variable rate | Profit or loss | |
Amounts in EUR thousands | 0.25% increase | 0.25% decrease |
2024 | ||
Financial liabilities | 8,086 | -8,086 |
Cash flow sensitivity (net) | 8,086 | -8,086 |
2023 | ||
Financial liabilities | 3,700 | -3,700 |
Cash flow sensitivity (net) | 3,700 | -3,700 |
(c) Cash flow hedges
The following table indicates the periods in which the cash flows associated with cash flow hedges are expected to occur:
Amounts in EUR thousands | Carrying amount at 31 December 2024 | 1-6 months | 6-12 months | More than 1 year | 31 December 2024 |
2024 | |||||
Interest rate Swaps | |||||
Assets | 6,209 | 1,330 | 831 | 4,048 | 6,209 |
Liabilities | 450 | - | - | 450 | 450 |
Forwards | |||||
Assets | 1,118 | 1,118 | - | - | 1,118 |
Liabilities | 4,156 | 3,047 | 1,109 | - | 4,156 |
Future contracts | |||||
Assets | 4,177 | 3,542 | 635 | - | 4,177 |
Liabilities | 2,001 | 1,840 | 161 | - | 2,001 |
Commodity Swaps | |||||
Assets | 2,757 | 1,884 | 374 | 499 | 2,757 |
Liabilities | - | - | - | - | - |
\u00a0 | 20,868 | 12,760 | 3,110 | 4,997 | 20,868 |
Amounts in EUR thousands | Carrying amount at 31 December 2023 | 1-6 months | 6-12 months | More than 1 year | 31 December 2023 |
2023 | |||||
Interest rate Swaps | |||||
Assets | 10,032 | 2,730 | 1,680 | 5,622 | 10,032 |
Liabilities | 1,425 | - | - | 1,425 | 1,425 |
Forwards | |||||
Assets | 7,793 | 6,307 | 1,475 | 11 | 7,793 |
Liabilities | 740 | 713 | 27 | - | 740 |
Electricity Swaps | |||||
Assets | 1,115 | - | - | 1,115 | 1,115 |
Liabilities | - | - | - | - | - |
Future contracts | |||||
Assets | 4,749 | 3,943 | 680 | 125 | 4,749 |
Liabilities | 317 | 316 | - | 1 | 317 |
Commodity Swaps | |||||
Assets | 2,027 | 205 | 1,092 | 730 | 2,027 |
Liabilities | 6,594 | 1,564 | 1,490 | 3,540 | 6,594 |
\u00a0 | 34,792 | 15,779 | 6,444 | 12,570 | 34,792 |
The table below provides information about the items designated as cash flow hedging instruments during the year and also as at 31 December 2024 and the reconciliation of hedging reserve. Based on their nature, hedging instruments are included in Derivatives assets and Derivatives liabilities in consolidated statement of financial position.
2024 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2024 | Changes in the value of the hedging instrument recognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rates | Other move-ments | Balance 31 December 2024 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 83,558 | 1,118 | -4,156 | 7,053 | -6,454 | -903 | -2,733 | - | - | -3,038 |
Future contracts | 191,191 | 4,177 | -2,001 | 4,432 | 2,914 | -4,316 | -844 | -9 | - | 2,176 |
Interest rate swap contracts | 348,670 | 6,209 | -450 | 8,607 | -468 | -2,380 | - | - | - | 5,759 |
Electricity swap | - | - | - | 1,115 | -1,115 | - | - | - | - | - |
Commodity swap contracts | 28,302 | 2,757 | - | -4,568 | 5,787 | 1,587 | -50 | - | - | 2,757 |
651,720 | 14,261 | -6,607 | 16,640 | 664 | -6,012 | -3,627 | -9 | - | 7,654 | |
2023 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2023 | Changes in the value of the hedging instrument rec-ognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rate | Other move-ments | Balance 31 December 2023 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 272,105 | 7,793 | -740 | 3,161 | 5,006 | -1,437 | 806 | -2 | -481 | 7,053 |
Future contracts | 170,102 | 4,749 | -317 | -5,706 | 4,339 | 2,126 | 214 | 1 | 3,458 | 4,432 |
Interest rate swap contracts | 178,700 | 10,032 | -1,425 | 17,524 | -5,754 | -3,162 | - | - | - | 8,607 |
Electricity swap | - | 1,115 | - | - | 1,115 | - | - | - | - | 1,115 |
Commodity swap contracts | 26,905 | 2,026 | -6,594 | 27,289 | -21,379 | -7,020 | - | - | -3,458 | -4,568 |
647,812 | 25,716 | -9,076 | 42,268 | -16,673 | -9,493 | 1,020 | -1 | -481 | 16,640 |
(d) Commodity price risk
The commodity markets experience continuous price fluctuations. Viohalco companies minimize their exposure to commodity price volatility by using hedging instruments, when possible.
Viohalco companies are exposed to the fluctuation of aluminium, copper, zinc, lead and nickel. In order to minimize the effect of the metal price fluctuations on their results, companies use back to back matching of purchases and sales or derivative instruments (future contracts).
As at 31 December 2024, the derivative net balance of future contracts per commodity as reported in the statement of financial position is:
Amounts in EUR thousands | 2024 | 2023 |
Aluminium | 2,016 | 3,496 |
Copper | 630 | 1,305 |
Lead | -470 | -366 |
Total | 2,176 | 4,435 |
In addition, Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions. As at 31 December 2024, the derivative net liability these contracts as reported in the statement of financial position is EUR 2.8 million.
(e) Energy price risk
Viohalco is exposed to risks arising from fluctuating energy prices. Within 2023, Viohalco companies signed a long-term Power Purchase Agreement (PPA), backed by various assets from Renewable Energy Sources (\u201cRES assets\u201d), in order to reduce its exposure to volatility in the energy prices.
Based on the initial agreement, the PPA provided for two distinct arrangements, comprising a physical delivery of electricity during the first two years (Period A), with a financial settlement of the difference between the fixed agreement price and the market electricity price, and for a virtual delivery of renewable electricity subsequently and to the end of the agreement (Period B), as produced by specified RES assets (i.e. photovoltaic facilities) yet to be constructed, with a financial settlement of the difference between the fixed agreement price for this subsequent period and the market electricity price. Period A of the PPA was assessed in accordance with IFRS 9 as an own-use agreement and was accounted for as an executory contract, while Period B of the initial PPA was assessed as comprising a derivative financial instrument, which was accounted for at fair value through profit or loss other comprehensive income.
In August 2024, an addendum to the initial contract was signed, altering effective from 15.03.2024, altering mainly the nature of the contract for Period B as well as the duration and the pricing for both period A and B. More Specifically, the delivery method in period B has been changed from virtual to physical delivery via injection and absorption declarations in the Day-Ahead Market, through an intermediary supplier, resulting in a physical delivery contract performed on similar terms as the existing one in period A.
C.4 Risks Related to Climate change
Viohalco companies recognize the importance of transparency regarding climate-related risks and opportunities to maintain trust of stakeholders and allow investors to better understand the potential impact transition and physical risks and opportunities emanating from climate change. To that end, Viohalco has pledged to assess the potential severity of the risks and the possible benefits of the opportunities with the aim to take all necessary measures to mitigate negative impacts and maximize the positive ones, and to adopt the Task Force on Climate-related Financial Disclosures (TCFD) framework to transparently communicate all climate-related risks and opportunities. For this purpose, Viohalco subsidiaries performed an assessment of climate-related risks and opportunities that covered all industrial and real estate assets. The detailed results of this assessment are reported at segmental level in the Non-Financial Disclosure, accompanying the Annual Report.
Moving to a low-carbon economy requires certain measures to be considered and implemented. Through the analysis, for each business segment, the most material climate related transition and physical risks and opportunities over the short, medium and long-term, have been identified. The transition risks assessed relate to policy, legal, technology and market changes to address climate change mitigation and adaptation. Policy actions around climate change continue to evolve, technological improvements or innovations that support the transition to a lower-carbon and energy efficient economic system can have a significant impact on organizations, while significant changes in market such as decrease in demand for specific goods or services or decreased revenues related to changes in customer behavior are some examples of the implications that can impact the operating model and the financial planning of Viohalco subsidiaries. On the other hand, extreme weather events and longer-term shifts in climate patterns such as limited water availability and extreme heat or sea level rise may have multiple impacts and possible financial implications for Viohalco companies.
The abovementioned risks and opportunities have been identified and classified on a scale of low, medium, and high, based on the actual and potential impacts on the Viohalco companies\u2019 business model, assets and operations, as well as financial impacts on the business performance. The financial impacts have being considered to the accounting estimates to the extent that they can be currently evaluated. Moreover, challenges associated with climate related commitments have been considered, and Viohalco companies have not identified any additional issues that may have a material effect on their financial statements.
C.5. Business and Operational Risk Management
Viohalco subsidiaries follow closely and on a continuous basis the developments in the international and domestic environment and timely adapt their business strategy and risk management policies to minimize the impact of the macroeconomic conditions on their operations.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__267-1": { "value": "Amounts in EUR thousands | 2024 | 2023 |
Non-current assets | \u00a0 | \u00a0 |
Interest rate swap contracts | 4,543 | 6,578 |
Forwards | - | 11 |
Electricity Swaps | - | 1,115 |
Commodity Swaps | 499 | - |
Future contracts | - | 122 |
Options | - | 730 |
Total | 5,042 | 8,557 |
Current assets | ||
Interest rate swap contracts | 3,060 | 6,029 |
Forwards | 1,552 | 8,013 |
Future contracts | 4,429 | 4,963 |
Commodity Swaps | 2,307 | 1,347 |
Total | 11,348 | 20,352 |
Non-current liabilities | ||
Interest rate swap contracts | 450 | 1,425 |
Future contracts | - | 1 |
Commodity Swaps | - | 3,598 |
Total | 450 | 5,023 |
Current liabilities | ||
Forwards | 6,212 | 794 |
Future contracts | 2,258 | 316 |
Commodity Swaps | - | 2,996 |
Total | 8,469 | 4,107 |
Hedge accounting
Viohalco\u2019s companies hold derivative financial instruments for cash flow and fair value hedges.
The abovementioned derivative financial instruments cover risks from:
Changes in the prices of metals;
Fluctuations of foreign exchange rates;
Changes in loan interest rates;
Fluctuations of energy.
The maturity and the nominal value of derivatives held by Viohalco\u2019s companies match the maturity and nominal value of the underlying assets / liabilities (hedged items).
Derivatives held by Viohalco\u2019s companies concern mainly:
Future contracts to hedge the risk from the change of the price of metals listed in LME (London Metal Exchange) and used in production of Viohalco\u2019s companies (i.e. mainly copper, aluminium and zinc). Such hedges are designated as cash flow hedges.
FX Forward and FX swaps to hedge the risk from the change in exchange rate of US Dollar and British Pound (i.e. currencies to which Viohalco\u2019s companies are mainly exposed). Such hedges are either designated as fair value or cash flow hedges depending on the item hedged. FX Forwards and FX swaps when used for hedging FX risk on outstanding receivables and suppliers denominated in foreign currency these instruments are designated under fair value hedging. FX forwards when used for hedging FX risk on the forecasted sales of goods or purchase of materials executed in foreign currency FX forward is hedging instruments designated under the cash flow method.
Variable rate loans and borrowings expose Viohalco companies to an interest rate volatility risk (cash flow risk). In order to hedge it, interest rate swaps are used to effectively transform the variable interest rate of the loan into a fixed one, thus reducing such volatility risk. Interest rate swap contracts involve exchanging, on specified dates cash amounts equal to the difference between a contracted fixed interest rate calculated on a principal and a variable rate calculated on the same principal. By carefully choosing the variable rate and the principal of the swap, one actually transforms a floating rate loan into a fixed rate one.
Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions.
30. Financial instruments
A. Accounting classifications and fair values
The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including the levels in the fair value hierarchy.
31 December 2024 | |||||
Amounts in EUR thousands | Carrying amount | First Level | Second Level | Third Level | Total |
Other investments | 38,966 | 3,214 | 2 | 35,751 | 38,966 |
Derivative financial assets | 16,390 | 4,429 | 11,961 | - | 16,390 |
\u00a0 | 55,356 | 7,642 | 11,963 | 35,751 | 55,356 |
Derivative financial liabilities | -8,919 | -2,258 | -6,662 | - | -8,919 |
\u00a0 | 46,437 | 5,385 | 5,302 | 35,751 | 46,437 |
31 December 2023 | |||||
Amounts in EUR thousands | Carrying amount | First Level | Second Level | Third Level | Total |
Other investments | 33,686 | 5,617 | 2 | 28,067 | 33,686 |
Derivative financial assets | 28,909 | 5,086 | 22,709 | 1,115 | 28,909 |
\u00a0 | 62,595 | 10,703 | 22,711 | 29,181 | 62,595 |
Derivative financial liabilities | -9,130 | -317 | -8,813 | - | -9,130 |
\u00a0 | 53,465 | 10,386 | 13,898 | 29,181 | 53,465 |
The various levels are as follows:
Level 1: Quoted prices (unadjusted) in an active market for identical assets and liabilities;
Level 2: Inputs that are observable either directly or indirectly;
Level 3: Unobservable inputs for assets and liabilities.
The fair value of the following financial assets and liabilities measured at amortised cost approximate their carrying amount:
Trade and other receivables;
Cash and cash equivalents;
Trade and other payables;
Loans and borrowings;
Lease liabilities.
Specifically, the carrying amount of loans and borrowings is considered as a good approximation of their fair value as 75% of consolidated Loans and borrowings concern floating-rate debt, which are a very good approximation of current market rates.
The following table shows reconciliation between opening and closing balances for Level 3 financial assets:
Amounts in EUR thousands | |
Balance as at 1 January 2024 | 28,067 |
Additions | 277 |
Disposals | -55 |
Fair value through PnL | 7,462 |
Balance as at 31 December 2024 | 35,751 |
Balance as at 1 January 2023 | 4,806 |
Additions | 26,922 |
Fair value through PnL | -3,642 |
Impairment loss (-)/ Reversal of impairment loss | -20 |
Balance as at 31 December 2023 | 28,067 |
\u0392. Measurement of fair values
(a) Valuation techniques and significant unobservable inputs
The fair values of financial assets that are traded in active markets (stock markets e.g. derivatives, shares, bonds, mutual funds) are set according to the published prices that are valid on the reporting date.
The fair values of financial assets that are not traded in active markets are set through the use of valuation techniques and standards that are based on market data on the reporting date.
The fair values of financial liabilities, for the purpose of being recorded in financial statements, are estimated based on the present value of the future cash flows that arise from specific contracts using the current interest rate that is available for Viohalco and its companies for the use of similar financial-credit means.
Inputs that do not meet the respective criteria and cannot be classified in Level 1 but are observable, either directly or indirectly, fall under Level 2. Over-the-counter derivative financial instruments based on prices obtained from brokers are classified in this level.
The financial assets, such as unlisted shares that are not traded in an active market whose measurement is based on the Viohalco\u2019s companies\u2019 forecasts for the issuer\u2019s future profitability are classified under Level 3.
The following table shows the valuation techniques used in measuring fair values, as well as the significant unobservable inputs used:
Type | Valuation technique | Significant unobservable inputs | Inter-relationship between key unobservable inputs and fair value measurement |
Derivatives | Market value: Price as traded in active market Market comparison technique: The fair values are based on broker quotes. Similar contracts are traded in an active market and the quotes reflect the actual transactions in similar instruments | Not applicable Broker quotes | Not applicable Not applicable |
Equity securities traded in active markets | Market value: Price as traded in active market | Not applicable | Not applicable |
Equity securities not traded in active markets | Discounted cash flows: The fair value of shares not traded in active markets is derived based on the estimates of Viohalco and its subsidiaries for the future profitability of the issuer, taking into account the expected growth rate of operations and estimated discount rates. | -\u00a0\u00a0 Risk-free rate: 2.49% (EUR), 4.57% (GBP)- Equity risk premium: 3.94% -\u00a0 Expected tax expense rate: Depending on the country of incorporation of the investee. - WACC for the most significant investment: 7-10% | The estimated fair value would increase (decrease) if: \u2022 the estimated risk-free rate, market risk premium and WACC were lower (higher) \u2022 the estimated cash flows were higher (lower) \u2022 the expected income tax rate was lower (higher) |
(b) Transfers between Levels 1 and 2
There were no transfers from Level 2 to Level 1 or from Level 1 to Level 2 in 2024 or in 2023.
C. Financial risk management
Viohalco and its companies are exposed to credit, liquidity and market risk due to the use of financial instruments. This Note sets forth information on their exposure to each one of the above risks, the policies and procedures applied to risk measurement. More quantitative particulars on these disclosures are included throughout of the Consolidated Financial Statements.
The risk management policies are applied to identify and analyze the risks facing Viohalco and its companies, set risk-taking limits and apply relevant control systems.Risk management procedures are reviewed regularly and changes are implemented if the need arise.
The implementation of risk management policies and procedures is monitored by the Internal Audit function, which performs ordinary and extraordinary audits relating to the implementation of procedures, whereas the results of such audits are notified to the Board of Directors.
C.1. Credit risk
Credit risk is the risk of the financial loss to Viohalco and its companies, if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the companies\u2019 receivables from customers, contract assets and bank deposits.
The carrying amount of financial assets represents the maximum credit exposure.
Amounts in EUR thousands | Note | 2024 | 2023 |
Trade & other receivables | 15 | 611,283 | 748,668 |
Contract assets | 7 | 256,322 | 236,552 |
Less: | |||
Other down payments | 15 | -10,964 | -12,058 |
Tax assets | 15 | -62,951 | -45,947 |
Other non-financial assets | -50,072 | -101,442 | |
743,619 | 825,773 | ||
Other investments | 21 | 38,966 | 33,686 |
Cash and cash equivalents | 16 | 696,720 | 395,015 |
Derivatives | 23 | 16,390 | 28,909 |
752,076 | 457,610 | ||
Total | 1,495,695 | 1,283,383 |
(a)\tTrade and other receivables
Viohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured.
When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.
Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables.
At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:
\u00a0 | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 294,046 | 301,265 |
Other EU member states | 254,604 | 255,645 |
Other European countries | 73,071 | 68,131 |
Asia | 37,798 | 42,842 |
America | 63,648 | 142,651 |
Africa | 19,897 | 14,290 |
Oceania | 554 | 949 |
Total | 743,619 | 825,773 |
The ageing of trade and other receivables and contract assets that were not impaired was as follows:
Amounts in EUR thousands | 2024 | 2023 |
Neither past due nor impaired | 630,207 | 706,092 |
Overdue | \u00a0 | |
- Up to 6 months | 94,339 | 100,175 |
- Over 6 months | 19,073 | 19,506 |
Total | 743,619 | 825,773 |
Based on management assessment,the amounts that are past due up to 6 months and over 6 months are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.
Viohalco companies insure a significant portion of their receivables and at 31 December 2024, 71% of the receivables balances were credit insured.
The movement in impairment of trade and other receivables and contract assets is as follows:
Amounts in EUR thousands | 2024 | 2023 | ||||
Trade & other receivables | Contract assets | Total | Trade & other receivables | Contract assets | Total | |
Balance as at 1 January | 71,009 | 248 | 71,256 | 69,212 | 203 | 69,414 |
Impairment loss recognized | 8,982 | - | 8,982 | 8,954 | 68 | 9,022 |
Amounts written off | -3,137 | - | -3,137 | -6,164 | - | -6,164 |
Impairment loss reversed | -1,290 | -38 | -1,327 | -214 | -23 | -237 |
Foreign exchange differences | 1,391 | - | 1,391 | -764 | -\u00a0 | -764 |
Reclassification | -28 | - | -28 | -16 | \u00a0- | -16 |
Balance as at 31 December | 76,928 | 210 | 77,137 | 71,009 | 248 | 71,256 |
The allowance for expected credit losses for trade receivables and contract assets are calculated at individual level when there is an indication of impairment. For receivables and contract assets without any indication of impairment the expected credit losses are based on the historical data combined with forward-looking macroeconomic factors affecting credit risk, such as country risk and industry related risks. Expected loss rates are updated at every reporting date. The rising inflation and interest rates were also taken into consideration when calculating expected credit losses for the current year, without any significant impact on the impairment loss recognized.
In 2024, the impairment loss recognized concerned mainly copper segment while amounts that have been impaired mainly in other segment were written off. On the contrary, a reversal of impairment loss was recorded, as a result of the improvement of the expected loss rates of major clients in the aluminium and cables segments.
The following collateral exists for securing non-insured receivables from customers and contract assets:
\u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amounts in EUR thousands | \u00a0 | 2024 | 2023 |
Cash collateral | 181 | 530 | |
Letter of credit | 17,179 | 18,302 | |
Collateral on property | 1,850 | 1,850 | |
Payables which can be offset by receivables | 6,292 | 5,832 | |
Other | 2,262 | 2,987 | |
Total | \u00a0 | 27,763 | 29,501 |
(b)\tCash and cash equivalents
Viohalco and its subsidiaries held cash and cash equivalents of EUR 697 million at 31 December 2024 (2023: EUR 395 million). The cash and cash equivalents are held with banks and financial institutions, which are rated from A3 to Ba3 based on Moody\u2019s scale.
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. Viohalco considers that its cash and cash equivalents have low credit risk based on the credit assessment performed.
C.2. Liquidity risk
Liquidity risk is the risk that Viohalco companies will encounter difficulties in meeting their fianancial obligations in a timely manner. To manage liquidity risk they ensure, that sufficient liquidity is available, to meet their liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to their reputation.
Viohalco companies maintain sufficient undrawn credit limits to meet all their scheduled financial obligations as well as most unexpected ones.
Exposure to liquidity risk
Financial liabilities and derivatives based on contractual maturity are broken down as follows:
2024 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 934,534 | 721,491 | 52,896 | 147,134 | 57,918 | 979,440 |
Bond issues | 1,223,601 | 190,655 | 207,540 | 763,607 | 240,061 | 1,401,863 |
Lease liabilities | 51,444 | 12,707 | 10,513 | 16,699 | 16,615 | 56,534 |
Derivatives | 8,919 | 8,469 | 450 | - | - | 8,919 |
Contract liabilities | 226,488 | 227,970 | 25 | 42 | - | 228,036 |
Trade and other payables | 1,536,443 | 1,527,239 | 15,660 | 7,404 | 1,133 | 1,551,437 |
\u00a0 | 3,981,430 | 2,688,532 | 287,085 | 934,886 | 315,727 | 4,226,229 |
2023 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 897,692 | 628,960 | 87,334 | 165,785 | 90,609 | 972,687 |
Bond issues | 1,323,743 | 218,947 | 210,014 | 770,075 | 355,183 | 1,554,219 |
Lease liabilities | 46,620 | 13,065 | 10,125 | 15,386 | 21,923 | 60,498 |
Derivatives | 9,130 | 4,107 | 4,642 | 381 | - | 9,130 |
Contract liabilities | 281,387 | 282,022 | 39 | - | - | 282,060 |
Trade and other payables | 1,152,551 | 1,160,562 | 4,961 | 6,404 | 1,133 | 1,173,060 |
\u00a0 | 3,711,123 | 2,307,663 | 317,114 | 958,031 | 468,847 | 4,051,655 |
Viohalco companies\u2019 loans are subject to termination clauses based on financial ratios, such as \u2019Total liabilities / Total equity\u2018, \u2019Net debt / Total sales\u2018 and \u2019Current assets / Current liabilities\u2018, that need to be maintained above or below certain predetermined levels. These ratios are monitored regularly in order to avoid breaches that may lead to loans becoming due before contractual maturity, causing liquidity pressures.
C.3. Market risk
Market risk is the risk that changes in market prices \u2013 such as commodity prices, foreign exchange rates and interest rates - will affect Viohalco and its companies income or the value of their financial instruments. Viohalco\u2019s companies use derivatives to manage market risk.
Generally, Viohalco companies apply hedge accounting to manage volatility in their returns (P&L) .
(a) Currency risk:
Viohalco and its companies are exposed to currency risk in relation to the sales and purchases carried out and the loans issued in a currency other than the functional currency of Viohalco and its companies, which is mainly EUR. The most important currencies in which these transactions are held are EUR, USD and GBP.
Over time, Viohalco\u2019s companies hedge the greatest part of their exposure to foreign currencies. Viohalco\u2019s companies enter mainly into forward contracts with external counterparties so as to deal with currency risk. These contracts mainly expire within the next 12 months from the reporting date. If necessary, such contracts are renewed upon expiry.
FX risk may also be covered \u201cnaturally\u201d by taking out loans in the respective currencies if loan interest is denominated in the same currency as that of cash flows coming from operating activities.
The capital investments of Viohalco companies are not hedgedas they have been made mainly in Euro.
The summary quantitative data about Viohalco and its companies\u2019 exposure to currency risk as reported is as follows.
2024 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 100,710 | 23,957 | 20,156 | 2,766 | 20,491 | 1,565 | 169,644 | 441,639 | 611,283 |
Contract assets | 5,755 | - | - | - | - | - | 5,755 | 250,567 | 256,322 |
Loans and borrowings | -6,856 | -32,334 | -4,025 | -1,019 | -4,034 | -1,019 | -49,287 | -2,160,291 | -2,209,578 |
Trade and other payables | -121,630 | -17,209 | -63,231 | -610 | -25,382 | -2,262 | -230,324 | -1,306,120 | -1,536,443 |
Contract Iiabilities | -27,780 | -1,439 | -686 | - | -55 | - | -29,960 | -196,528 | -226,488 |
Cash & cash equivalents | 100,074 | 8,170 | 7,194 | 302 | 4,828 | 1,262 | 121,829 | 574,891 | 696,720 |
\u00a0 | 50,273 | -18,856 | -40,593 | 1,439 | -4,152 | -454 | -12,343 | -2,395,843 | -2,408,185 |
Derivatives for risk hedging (Nominal Value) | -31,384 | -28,066 | - | - | - | - | -59,450 | 20,650 | -38,800 |
Exposure | 18,890 | -46,922 | -40,593 | 1,439 | -4,152 | -454 | -71,793 | -2,375,193 | -2,446,985 |
2023 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 175,686 | 15,369 | 18,888 | 1,534 | 27,363 | 6,609 | 245,448 | 503,220 | 748,668 |
Contract assets | 42,159 | - | 4 | - | - | - | 42,163 | 194,389 | 236,552 |
Loans and borrowings | -14,032 | -26,976 | -4,527 | -31 | -4,909 | -233 | -50,707 | -2,217,346 | -2,268,054 |
Trade and other payables | -129,008 | -13,631 | -47,226 | -507 | -25,364 | -3,174 | -218,910 | -991,679 | -1,210,588 |
Contract Iiabilities | -135,607 | - | -1,168 | - | -77 | - | -136,852 | -144,535 | -281,387 |
Cash & cash equivalents | 42,519 | 2,346 | 5,397 | 151 | 2,523 | 1,673 | 54,609 | 340,406 | 395,015 |
\u00a0 | -18,282 | -22,891 | -28,632 | 1,146 | -463 | 4,874 | -64,249 | -2,315,546 | -2,379,795 |
Derivatives for risk hedging (Nominal Value) | 214,110 | 1,036 | -\u00a0 | -\u00a0 | -\u00a0 | -\u00a0 | 215,146 | - | 215,146 |
Exposure | 195,828 | -21,855 | -28,632 | 1,146 | -463 | 4,874 | 150,898 | -2,315,546 | -2,164,648 |
\u201cDerivatives for risk hedging\u201d includes also derivatives that relate to highly probable transactions, which have not been yet recognized as assets or liabilities in the consolidated statement of financial position. Euro denominated amounts are included for totals\u2019 reconciliation purposes.
The following exchange rates have been applied during the year.
Average exchange rate | Year end spot rate | |||
2024 | 2023 | 2024 | 2023 | |
USD | 1.08 | 1.08 | 1.04 | 1.11 |
GBP | 0.85 | 0.87 | 0.83 | 0.87 |
BGN | 1.96 | 1.96 | 1.96 | 1.96 |
RSD | 117.09 | 117.25 | 117.01 | 117.17 |
RO\u039d | 4.97 | 4.95 | 4.97 | 4.97 |
Viohalco is primarily exposed to changes of Euro against US dollar, pound sterling, Serbian Dinar and RON. A reasonably possible strengthening (weakening) of Euro against these currencies as at 31 December would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The Bulgarian currency LEV is not analysed below due to its fixed currency rate at 1.96 BGN/EUR.
Profit or loss | Equity, net of tax | |||
Amounts in EUR thousands | EUR Strengthening | EUR Weakening | EUR Strengthening | EUR Weakening |
2024 | ||||
USD (10% movement) | 4,006 | -4,006 | 6,454 | -6,454 |
GBP (10% movement) | 5,844 | -5,844 | 8,033 | -8,033 |
RSD (10% movement) | -112 | 112 | -112 | 112 |
RON (10% movement) | 324 | -324 | 324 | -324 |
2023 | ||||
USD (10% movement) | -14,404 | 14,404 | -31,105 | 31,105 |
GBP (10% movement) | 2,227 | -2,227 | 2,147 | -2,147 |
RSD (10% movement) | -89 | 89 | -89 | 89 |
RON (10% movement) | 36 | -36 | 36 | -36 |
(b) Interest rate risk:
Viohalco Subsidiaries have adopted a flexible policy of ensuring that a portion of their Medium and LT debt obligations are on a fixed rate basis. This is achieved through a combination of issuing medium term, fixed rate bond loans and using interest rate swaps to hedge a portion of their floating rate medium and LT loans. The interest rate profile of Viohalco companies\u2019 interest-bearing financial instruments, as reported is as follows.
Nominal amount | ||
Amounts in EUR thousands | 2024 | 2023 |
Fixed-rate instruments | ||
Financial liabilities | 552,874 | 548,973 |
Variable-rate instruments | ||
Financial liabilities | 1,656,704 | 1,719,081 |
Interest rate swaps (nominal value) | -215,293 | -249,721 |
1,441,411 | 1,469,360 |
Fixed-rate instruments
Viohalco does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Viohalco currently uses derivatives (interest rate swaps) as hedging instruments under a cash flow hedge accounting model.
Sensitivity analysis for variable-rate instruments
A reasonably possible change of 0.25% in interest rates of variable-rate instruments at the reporting date would have increased/ decreased (-) profit or loss by the amount shown below. This analysis assumes that all other variables, in particular foreign currency exchange rate, remain constant.
Variable rate | Profit or loss | |
Amounts in EUR thousands | 0.25% increase | 0.25% decrease |
2024 | ||
Financial liabilities | 8,086 | -8,086 |
Cash flow sensitivity (net) | 8,086 | -8,086 |
2023 | ||
Financial liabilities | 3,700 | -3,700 |
Cash flow sensitivity (net) | 3,700 | -3,700 |
(c) Cash flow hedges
The following table indicates the periods in which the cash flows associated with cash flow hedges are expected to occur:
Amounts in EUR thousands | Carrying amount at 31 December 2024 | 1-6 months | 6-12 months | More than 1 year | 31 December 2024 |
2024 | |||||
Interest rate Swaps | |||||
Assets | 6,209 | 1,330 | 831 | 4,048 | 6,209 |
Liabilities | 450 | - | - | 450 | 450 |
Forwards | |||||
Assets | 1,118 | 1,118 | - | - | 1,118 |
Liabilities | 4,156 | 3,047 | 1,109 | - | 4,156 |
Future contracts | |||||
Assets | 4,177 | 3,542 | 635 | - | 4,177 |
Liabilities | 2,001 | 1,840 | 161 | - | 2,001 |
Commodity Swaps | |||||
Assets | 2,757 | 1,884 | 374 | 499 | 2,757 |
Liabilities | - | - | - | - | - |
\u00a0 | 20,868 | 12,760 | 3,110 | 4,997 | 20,868 |
Amounts in EUR thousands | Carrying amount at 31 December 2023 | 1-6 months | 6-12 months | More than 1 year | 31 December 2023 |
2023 | |||||
Interest rate Swaps | |||||
Assets | 10,032 | 2,730 | 1,680 | 5,622 | 10,032 |
Liabilities | 1,425 | - | - | 1,425 | 1,425 |
Forwards | |||||
Assets | 7,793 | 6,307 | 1,475 | 11 | 7,793 |
Liabilities | 740 | 713 | 27 | - | 740 |
Electricity Swaps | |||||
Assets | 1,115 | - | - | 1,115 | 1,115 |
Liabilities | - | - | - | - | - |
Future contracts | |||||
Assets | 4,749 | 3,943 | 680 | 125 | 4,749 |
Liabilities | 317 | 316 | - | 1 | 317 |
Commodity Swaps | |||||
Assets | 2,027 | 205 | 1,092 | 730 | 2,027 |
Liabilities | 6,594 | 1,564 | 1,490 | 3,540 | 6,594 |
\u00a0 | 34,792 | 15,779 | 6,444 | 12,570 | 34,792 |
The table below provides information about the items designated as cash flow hedging instruments during the year and also as at 31 December 2024 and the reconciliation of hedging reserve. Based on their nature, hedging instruments are included in Derivatives assets and Derivatives liabilities in consolidated statement of financial position.
2024 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2024 | Changes in the value of the hedging instrument recognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rates | Other move-ments | Balance 31 December 2024 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 83,558 | 1,118 | -4,156 | 7,053 | -6,454 | -903 | -2,733 | - | - | -3,038 |
Future contracts | 191,191 | 4,177 | -2,001 | 4,432 | 2,914 | -4,316 | -844 | -9 | - | 2,176 |
Interest rate swap contracts | 348,670 | 6,209 | -450 | 8,607 | -468 | -2,380 | - | - | - | 5,759 |
Electricity swap | - | - | - | 1,115 | -1,115 | - | - | - | - | - |
Commodity swap contracts | 28,302 | 2,757 | - | -4,568 | 5,787 | 1,587 | -50 | - | - | 2,757 |
651,720 | 14,261 | -6,607 | 16,640 | 664 | -6,012 | -3,627 | -9 | - | 7,654 | |
2023 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2023 | Changes in the value of the hedging instrument rec-ognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rate | Other move-ments | Balance 31 December 2023 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 272,105 | 7,793 | -740 | 3,161 | 5,006 | -1,437 | 806 | -2 | -481 | 7,053 |
Future contracts | 170,102 | 4,749 | -317 | -5,706 | 4,339 | 2,126 | 214 | 1 | 3,458 | 4,432 |
Interest rate swap contracts | 178,700 | 10,032 | -1,425 | 17,524 | -5,754 | -3,162 | - | - | - | 8,607 |
Electricity swap | - | 1,115 | - | - | 1,115 | - | - | - | - | 1,115 |
Commodity swap contracts | 26,905 | 2,026 | -6,594 | 27,289 | -21,379 | -7,020 | - | - | -3,458 | -4,568 |
647,812 | 25,716 | -9,076 | 42,268 | -16,673 | -9,493 | 1,020 | -1 | -481 | 16,640 |
(d) Commodity price risk
The commodity markets experience continuous price fluctuations. Viohalco companies minimize their exposure to commodity price volatility by using hedging instruments, when possible.
Viohalco companies are exposed to the fluctuation of aluminium, copper, zinc, lead and nickel. In order to minimize the effect of the metal price fluctuations on their results, companies use back to back matching of purchases and sales or derivative instruments (future contracts).
As at 31 December 2024, the derivative net balance of future contracts per commodity as reported in the statement of financial position is:
Amounts in EUR thousands | 2024 | 2023 |
Aluminium | 2,016 | 3,496 |
Copper | 630 | 1,305 |
Lead | -470 | -366 |
Total | 2,176 | 4,435 |
In addition, Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions. As at 31 December 2024, the derivative net liability these contracts as reported in the statement of financial position is EUR 2.8 million.
(e) Energy price risk
Viohalco is exposed to risks arising from fluctuating energy prices. Within 2023, Viohalco companies signed a long-term Power Purchase Agreement (PPA), backed by various assets from Renewable Energy Sources (\u201cRES assets\u201d), in order to reduce its exposure to volatility in the energy prices.
Based on the initial agreement, the PPA provided for two distinct arrangements, comprising a physical delivery of electricity during the first two years (Period A), with a financial settlement of the difference between the fixed agreement price and the market electricity price, and for a virtual delivery of renewable electricity subsequently and to the end of the agreement (Period B), as produced by specified RES assets (i.e. photovoltaic facilities) yet to be constructed, with a financial settlement of the difference between the fixed agreement price for this subsequent period and the market electricity price. Period A of the PPA was assessed in accordance with IFRS 9 as an own-use agreement and was accounted for as an executory contract, while Period B of the initial PPA was assessed as comprising a derivative financial instrument, which was accounted for at fair value through profit or loss other comprehensive income.
In August 2024, an addendum to the initial contract was signed, altering effective from 15.03.2024, altering mainly the nature of the contract for Period B as well as the duration and the pricing for both period A and B. More Specifically, the delivery method in period B has been changed from virtual to physical delivery via injection and absorption declarations in the Day-Ahead Market, through an intermediary supplier, resulting in a physical delivery contract performed on similar terms as the existing one in period A.
C.4 Risks Related to Climate change
Viohalco companies recognize the importance of transparency regarding climate-related risks and opportunities to maintain trust of stakeholders and allow investors to better understand the potential impact transition and physical risks and opportunities emanating from climate change. To that end, Viohalco has pledged to assess the potential severity of the risks and the possible benefits of the opportunities with the aim to take all necessary measures to mitigate negative impacts and maximize the positive ones, and to adopt the Task Force on Climate-related Financial Disclosures (TCFD) framework to transparently communicate all climate-related risks and opportunities. For this purpose, Viohalco subsidiaries performed an assessment of climate-related risks and opportunities that covered all industrial and real estate assets. The detailed results of this assessment are reported at segmental level in the Non-Financial Disclosure, accompanying the Annual Report.
Moving to a low-carbon economy requires certain measures to be considered and implemented. Through the analysis, for each business segment, the most material climate related transition and physical risks and opportunities over the short, medium and long-term, have been identified. The transition risks assessed relate to policy, legal, technology and market changes to address climate change mitigation and adaptation. Policy actions around climate change continue to evolve, technological improvements or innovations that support the transition to a lower-carbon and energy efficient economic system can have a significant impact on organizations, while significant changes in market such as decrease in demand for specific goods or services or decreased revenues related to changes in customer behavior are some examples of the implications that can impact the operating model and the financial planning of Viohalco subsidiaries. On the other hand, extreme weather events and longer-term shifts in climate patterns such as limited water availability and extreme heat or sea level rise may have multiple impacts and possible financial implications for Viohalco companies.
The abovementioned risks and opportunities have been identified and classified on a scale of low, medium, and high, based on the actual and potential impacts on the Viohalco companies\u2019 business model, assets and operations, as well as financial impacts on the business performance. The financial impacts have being considered to the accounting estimates to the extent that they can be currently evaluated. Moreover, challenges associated with climate related commitments have been considered, and Viohalco companies have not identified any additional issues that may have a material effect on their financial statements.
C.5. Business and Operational Risk Management
Viohalco subsidiaries follow closely and on a continuous basis the developments in the international and domestic environment and timely adapt their business strategy and risk management policies to minimize the impact of the macroeconomic conditions on their operations.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__270": { "value": "24. Capital and reserves
A. Share capital and share premium
The share capital of the Company amounts to EUR 141,894 thousand divided into 259,189,761 shares without nominal value. Holders of shares are entitled to one vote per share at the general meetings of the Company.
Share premium of the Company amounts to EUR 457,571 thousand.
B. Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.
C. Nature and purpose of other reserves
(a)\tStatutory reserve
Pursuant to the Belgian tax legislation, the companies are obliged, from their fiscal year profits, to form 5% as a legal reserve until it reaches 10% of their paid share capital. The distribution of the legal reserve is prohibited.
Pursuant to Greek company law, the companies are obliged to allocate each year at least 5% of its annual net profits to its statutory reserve, until this reserve equals at least 1/3 of the company\u2019s share capital. The distribution of the statutory reserve is prohibited but it can be used to offset losses.
(b) Hedging reserve
The effective portion of the cumulative net change in the fair value of hedging instruments used in cash flow hedges pending subsequent recognition in profit or loss as the hedged cash flows affect profit or loss.
(c)\tOther fair value reserve
The cumulative net change in the fair value of the equity securities until the assets are derecognized (and therefore transferred to retained earnings).
(d)\tTax exempt reserves
This category relates to reserves formed by the application of the provisions of certain tax laws and are exempt from income tax, provided that they are not distributed to the shareholders. In case these reserves are distributed, they will be taxed using the tax rate applying at such time.
(e)\tOther reserves
This category relates to reserves formed by the application of the provisions of certain developmental laws which were granting tax benefits to companies that invested their retained earnings rather than distribute them to the shareholders. More specifically, the aforementioned reserves include profits that have already been taxed or have been permanently exempted from income tax, after the lapse of a specified period beginning from the completion of the investments they concern.
D. Reconciliation of other reserves
Amounts in EUR thousands | Statutory reserves | Hedging reserves | Other Fair Value reserve | Tax exempt reserves | Other reserves | Total |
Balance as at 1 January 2024 | 60,924 | 9,243 | 846 | 283,593 | 89,129 | 443,735 |
Other comprehensive income | - | -2,941 | -233 | - | - | -3,174 |
Capitalization of reserves | 63 | - | - | - | - | 63 |
Reclassification | -1 | - | - | 2,785 | -2,784 | - |
Transfer of reserves and other movements | 8,166 | - | - | -4,722 | 2,753 | 6,197 |
Acquisition of NCI | 32 | -1 | - | 285 | 1 | 317 |
Change in ownership interests | -1,627 | -665 | - | -2,581 | -918 | -5,790 |
Balance as at 31 December 2024 | 67,557 | 5,635 | 613 | 279,360 | 88,183 | 441,349 |
Amounts in EUR thousands | Statutory reserves | Hedging reserves | Other Fair Value reserve | Tax exempt reserves | Other reserves | Total |
Balance as at 1 January 2023 | 50,671 | 26,853 | 997 | 282,235 | 87,542 | 448,298 |
Other comprehensive income | - | -17,610 | -151 | - | - | -17,761 |
Capitalization of reserves | 222 | - | - | - | - | 222 |
Transfer of reserves and other movements | 10,042 | - | - | 1,357 | 1,588 | 12,987 |
Loss of Control/Disposal of subsidiary | -12 | - | - | - | - | -12 |
Change in ownership interests | 1 | - | - | - | - | 1 |
Balance as at 31 December 2023 | 60,924 | 9,243 | 846 | 283,593 | 89,129 | 443,735 |
A. Share capital and share premium
The share capital of the Company amounts to EUR 141,894 thousand divided into 259,189,761 shares without nominal value. Holders of shares are entitled to one vote per share at the general meetings of the Company.
Share premium of the Company amounts to EUR 457,571 thousand.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__272-1": { "value": "B. Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations.
C. Nature and purpose of other reserves
(a)\tStatutory reserve
Pursuant to the Belgian tax legislation, the companies are obliged, from their fiscal year profits, to form 5% as a legal reserve until it reaches 10% of their paid share capital. The distribution of the legal reserve is prohibited.
Pursuant to Greek company law, the companies are obliged to allocate each year at least 5% of its annual net profits to its statutory reserve, until this reserve equals at least 1/3 of the company\u2019s share capital. The distribution of the statutory reserve is prohibited but it can be used to offset losses.
(b) Hedging reserve
The effective portion of the cumulative net change in the fair value of hedging instruments used in cash flow hedges pending subsequent recognition in profit or loss as the hedged cash flows affect profit or loss.
(c)\tOther fair value reserve
The cumulative net change in the fair value of the equity securities until the assets are derecognized (and therefore transferred to retained earnings).
(d)\tTax exempt reserves
This category relates to reserves formed by the application of the provisions of certain tax laws and are exempt from income tax, provided that they are not distributed to the shareholders. In case these reserves are distributed, they will be taxed using the tax rate applying at such time.
(e)\tOther reserves
This category relates to reserves formed by the application of the provisions of certain developmental laws which were granting tax benefits to companies that invested their retained earnings rather than distribute them to the shareholders. More specifically, the aforementioned reserves include profits that have already been taxed or have been permanently exempted from income tax, after the lapse of a specified period beginning from the completion of the investments they concern.
D. Reconciliation of other reserves
Amounts in EUR thousands | Statutory reserves | Hedging reserves | Other Fair Value reserve | Tax exempt reserves | Other reserves | Total |
Balance as at 1 January 2024 | 60,924 | 9,243 | 846 | 283,593 | 89,129 | 443,735 |
Other comprehensive income | - | -2,941 | -233 | - | - | -3,174 |
Capitalization of reserves | 63 | - | - | - | - | 63 |
Reclassification | -1 | - | - | 2,785 | -2,784 | - |
Transfer of reserves and other movements | 8,166 | - | - | -4,722 | 2,753 | 6,197 |
Acquisition of NCI | 32 | -1 | - | 285 | 1 | 317 |
Change in ownership interests | -1,627 | -665 | - | -2,581 | -918 | -5,790 |
Balance as at 31 December 2024 | 67,557 | 5,635 | 613 | 279,360 | 88,183 | 441,349 |
Amounts in EUR thousands | Statutory reserves | Hedging reserves | Other Fair Value reserve | Tax exempt reserves | Other reserves | Total |
Balance as at 1 January 2023 | 50,671 | 26,853 | 997 | 282,235 | 87,542 | 448,298 |
Other comprehensive income | - | -17,610 | -151 | - | - | -17,761 |
Capitalization of reserves | 222 | - | - | - | - | 222 |
Transfer of reserves and other movements | 10,042 | - | - | 1,357 | 1,588 | 12,987 |
Loss of Control/Disposal of subsidiary | -12 | - | - | - | - | -12 |
Change in ownership interests | 1 | - | - | - | - | 1 |
Balance as at 31 December 2023 | 60,924 | 9,243 | 846 | 283,593 | 89,129 | 443,735 |
25. Capital management
Viohalco and its companies\u2019 policy consists in maintaining a strong capital structure, so as to keep the confidence of investors, creditors and the market and enable the future development of their activities. The Board of Directors monitors the return on capital which is defined as net results divided by total equity less non-controlling interests. The Board of Directors also monitors the level of dividends distributed to holders of ordinary shares.
The Board of Directors tries to maintain an equilibrium between higher returns that would be feasible through higher borrowing levels and the advantages and security offered by a strong and robust capital structure. In this context, the Board of Directors monitors, the Return on Capital Employed (ROCE) index, otherwise the Return on Invested Capital (ROIC) index, which is defined as adjusted Earnings before Interest and Tax (a-EBIT) divided by total adjusted Capital Employed, (i.e. equity and net debt). The Board of Directors seeks opportunities and examines feasibility to leverage Viohalco\u2019s companies with relatively high ROCE (in every case higher than the cost of debt) and deleverage companies that go through a relatively low ROCE performance period.
The dividend related to 2023 was paid in 2024, in accordance with the decision taken at the Ordinary General Meeting of Shareholders of May 28, 2024. The shareholders approved a gross dividend of EUR 0.12 per share, resulting in a total dividend of EUR 31,103 thousand.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__277": { "value": "26. Loans and borrowings
A. Overview
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Non-current liabilities | ||
Secured bank loans | 121,156 | 153,749 |
Unsecured bank loans | 113,576 | 138,706 |
Secured bond issues | 499,259 | 561,646 |
Unsecured bond issues | 580,682 | 588,037 |
Loans and borrowings \u2013 Long term | 1,314,673 | 1,442,138 |
Lease Liabilities \u2013 Long term | 40,358 | 35,382 |
Total Long-term debt | 1,355,031 | 1,477,520 |
Current liabilities | ||
Secured bank loans | 135,346 | 145,032 |
Unsecured bank loans | 488,917 | 403,126 |
Current portion of secured bank loans | 49,454 | 36,981 |
Current portion of unsecured bank loans | 26,084 | 20,098 |
Current portion of secured bond issues | 62,115 | 54,903 |
Current portion of unsecured bond issues | 81,545 | 119,157 |
Loans and borrowings \u2013 Short term | 843,462 | 779,297 |
Lease Liabilities \u2013 Short term | 11,086 | 11,237 |
Total Short term debt | 854,547 | 790,534 |
Total loans and borrowings | 2,209,578 | 2,268,054 |
Information about the Viohalco companies\u2019 exposure to interest rate, foreign currency and liquidity risk is included in Note 30.
The maturities of non-current loans are as follows:
Amounts in EUR thousands | 2024 | 2023 |
Between 1 and 2 years | 219,675 | 218,530 |
Between 2 and 5 years | 835,939 | 840,227 |
Over 5 years | 299,418 | 418,763 |
Total | 1,355,031 | 1,477,520 |
The effective weighted average interest rates of the main categories of loans and borrowings at the reporting date are as follows:
2024 | Carrying amount | Interest rate |
Bank loans (non-current)-EUR | 309,360 | 4.25% |
Bank loans (current)-EUR | 582,077 | 5.31% |
Bank loans (current)-USD | 4,816 | 8.13% |
Bank loans (current)-GBP | 31,018 | 8.42% |
Bond issues-EUR | 1,223,601 | 3.82% |
2023 | Carrying amount | Interest rate |
Bank loans (non-current)-EUR | 347,005 | 4.84% |
Bank loans (current)-EUR | 506,610 | 6.05% |
Bank loans (current)-USD | 11,224 | 7.54% |
Bank loans (current)-GBP | 24,353 | 8.11% |
Bond issues-EUR | 1,323,743 | 5.07% |
The majority of Viohalco companies\u2019 loans are Euro denominated.
During 2024, Viohalco subsidiaries obtained new bank loans amounting to EUR 356 million and repaid bank loans of EUR 417 million maturing within the year. The new loans were mainly bond loans and drawdowns from existing revolving credit facilities for project financing, or new loans with similar terms and conditions.
More specifically, during 2024 the main events relating to Viohalco companies\u2019 financing are the following:
Cables segment
Refinancing of two \u2018green\u2019 bond loans of total amount EUR 40 million received by Hellenic Cables & Fulgor in 2021 in compliance with ESG financial principles with an initial 2-year term, which were extended in December 2023. The new financing agreement concerns the same amount, i.e. EUR 40 million and provides for a 2-year term started during the first half of 2024. This financing agreement support working capital needs for the design, production, installation and operation of submarine and land cable systems in projects related to energy transmission from renewable energy sources and the electrical interconnection of islands;
A 5-year loan facility received by Hellenic Cables from a major Greek bank of EUR 70.6 million, out of which an amount of EUR 42.4 million was drawn during H1 2024. This loan facility finances the investment program of Hellenic Cables including new production lines and new equipment in Thiva plant and investments in the Eleonas plant;
A 3-year bond loan of EUR 20.2 million from a major Greek bank, which was drawn in full in September 2024 by Fulgor. The main purpose of this bond loan was to finance the acquisition of machinery, mainly for new products development
Steel Pipes segment
A 5-year bond loan of EUR 15.0 million from a major Greek bank, which was drawn in full in September 2024 by Corinth Pipeworks. The main purpose of this bond loan was to refinance three bond loans of EUR 12.3 million in aggregate, as well as for general business needs.
No other significant events, related with the financing of subsidiaries occurred during the period.
Short term facilities are predominately revolving credit facilities and factoring with recourse for funding working capital needs and project financing facilities for specific ongoing projects. Viohalco subsidiaries have never in the past experienced any issues in financing their activities, renewing their working capital lines or refinancing long-term loans. Management expects that any mandatory repayments of banking loans will be made from operating cash flows or from other unutilized committed credit facilities.
Under the terms of the loan agreements, certain Viohalco subsidiaries must comply with conditions (including financial covenants) and such compliance is tested on an annual basis for the majority of the loans. Management has considered the measures that need to be taken to mitigate the risk relating to potential breaches and expects that in the event that these covenants are breached, waivers will be granted, which have been provided in the past when requested.
The average interest rate of the outstanding bank loans as at 31 December 2024 was 4.4% (5.3% as at 31 December 2023).
Property, plant and equipment and inventories of some subsidiaries carry mortgages and liens for a total amount of EUR 1.624 million, as collaterals for long term loans and syndicated loans. In addition, for certain Viohalco companies\u2019 loans, there are change of control clauses that provide lenders early redemption rights. The majority of Viohalco companies\u2019 loans are Euro denominated.
B. Reconciliation of movements of liabilities to cash flows from financing activities
Amounts in EUR thousands | Loans and Borrowings | Leases | Total |
Balance at 1 January 2024 | 2,221,434 | 46,620 | 2,268,054 |
Changes from financing cash flows | |||
Proceeds from loans and borrowings | 355,776 | - | 355,776 |
Repayment of borrowings & lease liabilities | -416,996 | -12,439 | -429,434 |
Total changes from financing cash flows | -61,220 | -12,439 | -73,659 |
Other changes | |||
New leases | - | 18,397 | 18,397 |
Interest expense | 122,136 | 2,449 | 124,586 |
Interest paid* | -124,905 | -2,449 | -127,353 |
Capitalised borrowing costs | 6,014 | - | 6,014 |
Terminations/Modifications | -7,482 | -1,153 | -8,635 |
Effect of changes in foreign exchange rate | 2,156 | 18 | 2,175 |
Total other changes | -2,080 | 17,262 | 15,183 |
Balance at 31 December 2024 | 2,158,135 | 51,444 | 2,209,579 |
Amounts in EUR thousands | Loans and Borrowings | Leases | Total |
Balance at 1 January 2023 | 2,429,465 | 40,380 | 2,469,845 |
Changes from financing cash flows | |||
Proceeds from loans and borrowings | 288,764 | - | 288,764 |
Repayment of borrowings & lease liabilities | -507,858 | -14,441 | -522,300 |
Total changes from financing cash flows | -219,095 | -14,441 | -233,536 |
Other changes | |||
New leases | - | 22,687 | 22,687 |
Interest expense | 137,498 | 2,095 | 139,593 |
Interest paid* | -132,223 | -2,030 | -134,253 |
Capitalised borrowing costs | 4,440 | - | 4,440 |
Terminations/Modifications | 1 | -1,228 | -1,227 |
Loss of Control/Disposal of subsidiary | - | -843 | -843 |
Effect of changes in foreign exchange rate | 1,348 | 2 | 1,350 |
Total other changes | 11,064 | 20,681 | 31,745 |
Balance at 31 December 2023 | 2,221,434 | 46,620 | 2,268,054 |
*Interest paid reported in Cash Flow Statement, includes bank charges and other finance costs.
26. Loans and borrowings
A. Overview
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Non-current liabilities | ||
Secured bank loans | 121,156 | 153,749 |
Unsecured bank loans | 113,576 | 138,706 |
Secured bond issues | 499,259 | 561,646 |
Unsecured bond issues | 580,682 | 588,037 |
Loans and borrowings \u2013 Long term | 1,314,673 | 1,442,138 |
Lease Liabilities \u2013 Long term | 40,358 | 35,382 |
Total Long-term debt | 1,355,031 | 1,477,520 |
Current liabilities | ||
Secured bank loans | 135,346 | 145,032 |
Unsecured bank loans | 488,917 | 403,126 |
Current portion of secured bank loans | 49,454 | 36,981 |
Current portion of unsecured bank loans | 26,084 | 20,098 |
Current portion of secured bond issues | 62,115 | 54,903 |
Current portion of unsecured bond issues | 81,545 | 119,157 |
Loans and borrowings \u2013 Short term | 843,462 | 779,297 |
Lease Liabilities \u2013 Short term | 11,086 | 11,237 |
Total Short term debt | 854,547 | 790,534 |
Total loans and borrowings | 2,209,578 | 2,268,054 |
Information about the Viohalco companies\u2019 exposure to interest rate, foreign currency and liquidity risk is included in Note 30.
The maturities of non-current loans are as follows:
Amounts in EUR thousands | 2024 | 2023 |
Between 1 and 2 years | 219,675 | 218,530 |
Between 2 and 5 years | 835,939 | 840,227 |
Over 5 years | 299,418 | 418,763 |
Total | 1,355,031 | 1,477,520 |
The effective weighted average interest rates of the main categories of loans and borrowings at the reporting date are as follows:
2024 | Carrying amount | Interest rate |
Bank loans (non-current)-EUR | 309,360 | 4.25% |
Bank loans (current)-EUR | 582,077 | 5.31% |
Bank loans (current)-USD | 4,816 | 8.13% |
Bank loans (current)-GBP | 31,018 | 8.42% |
Bond issues-EUR | 1,223,601 | 3.82% |
2023 | Carrying amount | Interest rate |
Bank loans (non-current)-EUR | 347,005 | 4.84% |
Bank loans (current)-EUR | 506,610 | 6.05% |
Bank loans (current)-USD | 11,224 | 7.54% |
Bank loans (current)-GBP | 24,353 | 8.11% |
Bond issues-EUR | 1,323,743 | 5.07% |
The majority of Viohalco companies\u2019 loans are Euro denominated.
During 2024, Viohalco subsidiaries obtained new bank loans amounting to EUR 356 million and repaid bank loans of EUR 417 million maturing within the year. The new loans were mainly bond loans and drawdowns from existing revolving credit facilities for project financing, or new loans with similar terms and conditions.
More specifically, during 2024 the main events relating to Viohalco companies\u2019 financing are the following:
Cables segment
Refinancing of two \u2018green\u2019 bond loans of total amount EUR 40 million received by Hellenic Cables & Fulgor in 2021 in compliance with ESG financial principles with an initial 2-year term, which were extended in December 2023. The new financing agreement concerns the same amount, i.e. EUR 40 million and provides for a 2-year term started during the first half of 2024. This financing agreement support working capital needs for the design, production, installation and operation of submarine and land cable systems in projects related to energy transmission from renewable energy sources and the electrical interconnection of islands;
A 5-year loan facility received by Hellenic Cables from a major Greek bank of EUR 70.6 million, out of which an amount of EUR 42.4 million was drawn during H1 2024. This loan facility finances the investment program of Hellenic Cables including new production lines and new equipment in Thiva plant and investments in the Eleonas plant;
A 3-year bond loan of EUR 20.2 million from a major Greek bank, which was drawn in full in September 2024 by Fulgor. The main purpose of this bond loan was to finance the acquisition of machinery, mainly for new products development
Steel Pipes segment
A 5-year bond loan of EUR 15.0 million from a major Greek bank, which was drawn in full in September 2024 by Corinth Pipeworks. The main purpose of this bond loan was to refinance three bond loans of EUR 12.3 million in aggregate, as well as for general business needs.
No other significant events, related with the financing of subsidiaries occurred during the period.
Short term facilities are predominately revolving credit facilities and factoring with recourse for funding working capital needs and project financing facilities for specific ongoing projects. Viohalco subsidiaries have never in the past experienced any issues in financing their activities, renewing their working capital lines or refinancing long-term loans. Management expects that any mandatory repayments of banking loans will be made from operating cash flows or from other unutilized committed credit facilities.
Under the terms of the loan agreements, certain Viohalco subsidiaries must comply with conditions (including financial covenants) and such compliance is tested on an annual basis for the majority of the loans. Management has considered the measures that need to be taken to mitigate the risk relating to potential breaches and expects that in the event that these covenants are breached, waivers will be granted, which have been provided in the past when requested.
The average interest rate of the outstanding bank loans as at 31 December 2024 was 4.4% (5.3% as at 31 December 2023).
Property, plant and equipment and inventories of some subsidiaries carry mortgages and liens for a total amount of EUR 1.624 million, as collaterals for long term loans and syndicated loans. In addition, for certain Viohalco companies\u2019 loans, there are change of control clauses that provide lenders early redemption rights. The majority of Viohalco companies\u2019 loans are Euro denominated.
B. Reconciliation of movements of liabilities to cash flows from financing activities
Amounts in EUR thousands | Loans and Borrowings | Leases | Total |
Balance at 1 January 2024 | 2,221,434 | 46,620 | 2,268,054 |
Changes from financing cash flows | |||
Proceeds from loans and borrowings | 355,776 | - | 355,776 |
Repayment of borrowings & lease liabilities | -416,996 | -12,439 | -429,434 |
Total changes from financing cash flows | -61,220 | -12,439 | -73,659 |
Other changes | |||
New leases | - | 18,397 | 18,397 |
Interest expense | 122,136 | 2,449 | 124,586 |
Interest paid* | -124,905 | -2,449 | -127,353 |
Capitalised borrowing costs | 6,014 | - | 6,014 |
Terminations/Modifications | -7,482 | -1,153 | -8,635 |
Effect of changes in foreign exchange rate | 2,156 | 18 | 2,175 |
Total other changes | -2,080 | 17,262 | 15,183 |
Balance at 31 December 2024 | 2,158,135 | 51,444 | 2,209,579 |
Amounts in EUR thousands | Loans and Borrowings | Leases | Total |
Balance at 1 January 2023 | 2,429,465 | 40,380 | 2,469,845 |
Changes from financing cash flows | |||
Proceeds from loans and borrowings | 288,764 | - | 288,764 |
Repayment of borrowings & lease liabilities | -507,858 | -14,441 | -522,300 |
Total changes from financing cash flows | -219,095 | -14,441 | -233,536 |
Other changes | |||
New leases | - | 22,687 | 22,687 |
Interest expense | 137,498 | 2,095 | 139,593 |
Interest paid* | -132,223 | -2,030 | -134,253 |
Capitalised borrowing costs | 4,440 | - | 4,440 |
Terminations/Modifications | 1 | -1,228 | -1,227 |
Loss of Control/Disposal of subsidiary | - | -843 | -843 |
Effect of changes in foreign exchange rate | 1,348 | 2 | 1,350 |
Total other changes | 11,064 | 20,681 | 31,745 |
Balance at 31 December 2023 | 2,221,434 | 46,620 | 2,268,054 |
*Interest paid reported in Cash Flow Statement, includes bank charges and other finance costs.
C. Financial risk management
Viohalco and its companies are exposed to credit, liquidity and market risk due to the use of financial instruments. This Note sets forth information on their exposure to each one of the above risks, the policies and procedures applied to risk measurement. More quantitative particulars on these disclosures are included throughout of the Consolidated Financial Statements.
The risk management policies are applied to identify and analyze the risks facing Viohalco and its companies, set risk-taking limits and apply relevant control systems.Risk management procedures are reviewed regularly and changes are implemented if the need arise.
The implementation of risk management policies and procedures is monitored by the Internal Audit function, which performs ordinary and extraordinary audits relating to the implementation of procedures, whereas the results of such audits are notified to the Board of Directors.
C.1. Credit risk
Credit risk is the risk of the financial loss to Viohalco and its companies, if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the companies\u2019 receivables from customers, contract assets and bank deposits.
The carrying amount of financial assets represents the maximum credit exposure.
Amounts in EUR thousands | Note | 2024 | 2023 |
Trade & other receivables | 15 | 611,283 | 748,668 |
Contract assets | 7 | 256,322 | 236,552 |
Less: | |||
Other down payments | 15 | -10,964 | -12,058 |
Tax assets | 15 | -62,951 | -45,947 |
Other non-financial assets | -50,072 | -101,442 | |
743,619 | 825,773 | ||
Other investments | 21 | 38,966 | 33,686 |
Cash and cash equivalents | 16 | 696,720 | 395,015 |
Derivatives | 23 | 16,390 | 28,909 |
752,076 | 457,610 | ||
Total | 1,495,695 | 1,283,383 |
(a)\tTrade and other receivables
Viohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured.
When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.
Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables.
At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:
\u00a0 | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 294,046 | 301,265 |
Other EU member states | 254,604 | 255,645 |
Other European countries | 73,071 | 68,131 |
Asia | 37,798 | 42,842 |
America | 63,648 | 142,651 |
Africa | 19,897 | 14,290 |
Oceania | 554 | 949 |
Total | 743,619 | 825,773 |
The ageing of trade and other receivables and contract assets that were not impaired was as follows:
Amounts in EUR thousands | 2024 | 2023 |
Neither past due nor impaired | 630,207 | 706,092 |
Overdue | \u00a0 | |
- Up to 6 months | 94,339 | 100,175 |
- Over 6 months | 19,073 | 19,506 |
Total | 743,619 | 825,773 |
Based on management assessment,the amounts that are past due up to 6 months and over 6 months are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.
Viohalco companies insure a significant portion of their receivables and at 31 December 2024, 71% of the receivables balances were credit insured.
The movement in impairment of trade and other receivables and contract assets is as follows:
Amounts in EUR thousands | 2024 | 2023 | ||||
Trade & other receivables | Contract assets | Total | Trade & other receivables | Contract assets | Total | |
Balance as at 1 January | 71,009 | 248 | 71,256 | 69,212 | 203 | 69,414 |
Impairment loss recognized | 8,982 | - | 8,982 | 8,954 | 68 | 9,022 |
Amounts written off | -3,137 | - | -3,137 | -6,164 | - | -6,164 |
Impairment loss reversed | -1,290 | -38 | -1,327 | -214 | -23 | -237 |
Foreign exchange differences | 1,391 | - | 1,391 | -764 | -\u00a0 | -764 |
Reclassification | -28 | - | -28 | -16 | \u00a0- | -16 |
Balance as at 31 December | 76,928 | 210 | 77,137 | 71,009 | 248 | 71,256 |
The allowance for expected credit losses for trade receivables and contract assets are calculated at individual level when there is an indication of impairment. For receivables and contract assets without any indication of impairment the expected credit losses are based on the historical data combined with forward-looking macroeconomic factors affecting credit risk, such as country risk and industry related risks. Expected loss rates are updated at every reporting date. The rising inflation and interest rates were also taken into consideration when calculating expected credit losses for the current year, without any significant impact on the impairment loss recognized.
In 2024, the impairment loss recognized concerned mainly copper segment while amounts that have been impaired mainly in other segment were written off. On the contrary, a reversal of impairment loss was recorded, as a result of the improvement of the expected loss rates of major clients in the aluminium and cables segments.
The following collateral exists for securing non-insured receivables from customers and contract assets:
\u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amounts in EUR thousands | \u00a0 | 2024 | 2023 |
Cash collateral | 181 | 530 | |
Letter of credit | 17,179 | 18,302 | |
Collateral on property | 1,850 | 1,850 | |
Payables which can be offset by receivables | 6,292 | 5,832 | |
Other | 2,262 | 2,987 | |
Total | \u00a0 | 27,763 | 29,501 |
(b)\tCash and cash equivalents
Viohalco and its subsidiaries held cash and cash equivalents of EUR 697 million at 31 December 2024 (2023: EUR 395 million). The cash and cash equivalents are held with banks and financial institutions, which are rated from A3 to Ba3 based on Moody\u2019s scale.
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. Viohalco considers that its cash and cash equivalents have low credit risk based on the credit assessment performed.
C.2. Liquidity risk
Liquidity risk is the risk that Viohalco companies will encounter difficulties in meeting their fianancial obligations in a timely manner. To manage liquidity risk they ensure, that sufficient liquidity is available, to meet their liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to their reputation.
Viohalco companies maintain sufficient undrawn credit limits to meet all their scheduled financial obligations as well as most unexpected ones.
Exposure to liquidity risk
Financial liabilities and derivatives based on contractual maturity are broken down as follows:
2024 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 934,534 | 721,491 | 52,896 | 147,134 | 57,918 | 979,440 |
Bond issues | 1,223,601 | 190,655 | 207,540 | 763,607 | 240,061 | 1,401,863 |
Lease liabilities | 51,444 | 12,707 | 10,513 | 16,699 | 16,615 | 56,534 |
Derivatives | 8,919 | 8,469 | 450 | - | - | 8,919 |
Contract liabilities | 226,488 | 227,970 | 25 | 42 | - | 228,036 |
Trade and other payables | 1,536,443 | 1,527,239 | 15,660 | 7,404 | 1,133 | 1,551,437 |
\u00a0 | 3,981,430 | 2,688,532 | 287,085 | 934,886 | 315,727 | 4,226,229 |
2023 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 897,692 | 628,960 | 87,334 | 165,785 | 90,609 | 972,687 |
Bond issues | 1,323,743 | 218,947 | 210,014 | 770,075 | 355,183 | 1,554,219 |
Lease liabilities | 46,620 | 13,065 | 10,125 | 15,386 | 21,923 | 60,498 |
Derivatives | 9,130 | 4,107 | 4,642 | 381 | - | 9,130 |
Contract liabilities | 281,387 | 282,022 | 39 | - | - | 282,060 |
Trade and other payables | 1,152,551 | 1,160,562 | 4,961 | 6,404 | 1,133 | 1,173,060 |
\u00a0 | 3,711,123 | 2,307,663 | 317,114 | 958,031 | 468,847 | 4,051,655 |
Viohalco companies\u2019 loans are subject to termination clauses based on financial ratios, such as \u2019Total liabilities / Total equity\u2018, \u2019Net debt / Total sales\u2018 and \u2019Current assets / Current liabilities\u2018, that need to be maintained above or below certain predetermined levels. These ratios are monitored regularly in order to avoid breaches that may lead to loans becoming due before contractual maturity, causing liquidity pressures.
C.3. Market risk
Market risk is the risk that changes in market prices \u2013 such as commodity prices, foreign exchange rates and interest rates - will affect Viohalco and its companies income or the value of their financial instruments. Viohalco\u2019s companies use derivatives to manage market risk.
Generally, Viohalco companies apply hedge accounting to manage volatility in their returns (P&L) .
(a) Currency risk:
Viohalco and its companies are exposed to currency risk in relation to the sales and purchases carried out and the loans issued in a currency other than the functional currency of Viohalco and its companies, which is mainly EUR. The most important currencies in which these transactions are held are EUR, USD and GBP.
Over time, Viohalco\u2019s companies hedge the greatest part of their exposure to foreign currencies. Viohalco\u2019s companies enter mainly into forward contracts with external counterparties so as to deal with currency risk. These contracts mainly expire within the next 12 months from the reporting date. If necessary, such contracts are renewed upon expiry.
FX risk may also be covered \u201cnaturally\u201d by taking out loans in the respective currencies if loan interest is denominated in the same currency as that of cash flows coming from operating activities.
The capital investments of Viohalco companies are not hedgedas they have been made mainly in Euro.
The summary quantitative data about Viohalco and its companies\u2019 exposure to currency risk as reported is as follows.
2024 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 100,710 | 23,957 | 20,156 | 2,766 | 20,491 | 1,565 | 169,644 | 441,639 | 611,283 |
Contract assets | 5,755 | - | - | - | - | - | 5,755 | 250,567 | 256,322 |
Loans and borrowings | -6,856 | -32,334 | -4,025 | -1,019 | -4,034 | -1,019 | -49,287 | -2,160,291 | -2,209,578 |
Trade and other payables | -121,630 | -17,209 | -63,231 | -610 | -25,382 | -2,262 | -230,324 | -1,306,120 | -1,536,443 |
Contract Iiabilities | -27,780 | -1,439 | -686 | - | -55 | - | -29,960 | -196,528 | -226,488 |
Cash & cash equivalents | 100,074 | 8,170 | 7,194 | 302 | 4,828 | 1,262 | 121,829 | 574,891 | 696,720 |
\u00a0 | 50,273 | -18,856 | -40,593 | 1,439 | -4,152 | -454 | -12,343 | -2,395,843 | -2,408,185 |
Derivatives for risk hedging (Nominal Value) | -31,384 | -28,066 | - | - | - | - | -59,450 | 20,650 | -38,800 |
Exposure | 18,890 | -46,922 | -40,593 | 1,439 | -4,152 | -454 | -71,793 | -2,375,193 | -2,446,985 |
2023 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 175,686 | 15,369 | 18,888 | 1,534 | 27,363 | 6,609 | 245,448 | 503,220 | 748,668 |
Contract assets | 42,159 | - | 4 | - | - | - | 42,163 | 194,389 | 236,552 |
Loans and borrowings | -14,032 | -26,976 | -4,527 | -31 | -4,909 | -233 | -50,707 | -2,217,346 | -2,268,054 |
Trade and other payables | -129,008 | -13,631 | -47,226 | -507 | -25,364 | -3,174 | -218,910 | -991,679 | -1,210,588 |
Contract Iiabilities | -135,607 | - | -1,168 | - | -77 | - | -136,852 | -144,535 | -281,387 |
Cash & cash equivalents | 42,519 | 2,346 | 5,397 | 151 | 2,523 | 1,673 | 54,609 | 340,406 | 395,015 |
\u00a0 | -18,282 | -22,891 | -28,632 | 1,146 | -463 | 4,874 | -64,249 | -2,315,546 | -2,379,795 |
Derivatives for risk hedging (Nominal Value) | 214,110 | 1,036 | -\u00a0 | -\u00a0 | -\u00a0 | -\u00a0 | 215,146 | - | 215,146 |
Exposure | 195,828 | -21,855 | -28,632 | 1,146 | -463 | 4,874 | 150,898 | -2,315,546 | -2,164,648 |
\u201cDerivatives for risk hedging\u201d includes also derivatives that relate to highly probable transactions, which have not been yet recognized as assets or liabilities in the consolidated statement of financial position. Euro denominated amounts are included for totals\u2019 reconciliation purposes.
The following exchange rates have been applied during the year.
Average exchange rate | Year end spot rate | |||
2024 | 2023 | 2024 | 2023 | |
USD | 1.08 | 1.08 | 1.04 | 1.11 |
GBP | 0.85 | 0.87 | 0.83 | 0.87 |
BGN | 1.96 | 1.96 | 1.96 | 1.96 |
RSD | 117.09 | 117.25 | 117.01 | 117.17 |
RO\u039d | 4.97 | 4.95 | 4.97 | 4.97 |
Viohalco is primarily exposed to changes of Euro against US dollar, pound sterling, Serbian Dinar and RON. A reasonably possible strengthening (weakening) of Euro against these currencies as at 31 December would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The Bulgarian currency LEV is not analysed below due to its fixed currency rate at 1.96 BGN/EUR.
Profit or loss | Equity, net of tax | |||
Amounts in EUR thousands | EUR Strengthening | EUR Weakening | EUR Strengthening | EUR Weakening |
2024 | ||||
USD (10% movement) | 4,006 | -4,006 | 6,454 | -6,454 |
GBP (10% movement) | 5,844 | -5,844 | 8,033 | -8,033 |
RSD (10% movement) | -112 | 112 | -112 | 112 |
RON (10% movement) | 324 | -324 | 324 | -324 |
2023 | ||||
USD (10% movement) | -14,404 | 14,404 | -31,105 | 31,105 |
GBP (10% movement) | 2,227 | -2,227 | 2,147 | -2,147 |
RSD (10% movement) | -89 | 89 | -89 | 89 |
RON (10% movement) | 36 | -36 | 36 | -36 |
(b) Interest rate risk:
Viohalco Subsidiaries have adopted a flexible policy of ensuring that a portion of their Medium and LT debt obligations are on a fixed rate basis. This is achieved through a combination of issuing medium term, fixed rate bond loans and using interest rate swaps to hedge a portion of their floating rate medium and LT loans. The interest rate profile of Viohalco companies\u2019 interest-bearing financial instruments, as reported is as follows.
Nominal amount | ||
Amounts in EUR thousands | 2024 | 2023 |
Fixed-rate instruments | ||
Financial liabilities | 552,874 | 548,973 |
Variable-rate instruments | ||
Financial liabilities | 1,656,704 | 1,719,081 |
Interest rate swaps (nominal value) | -215,293 | -249,721 |
1,441,411 | 1,469,360 |
Fixed-rate instruments
Viohalco does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Viohalco currently uses derivatives (interest rate swaps) as hedging instruments under a cash flow hedge accounting model.
Sensitivity analysis for variable-rate instruments
A reasonably possible change of 0.25% in interest rates of variable-rate instruments at the reporting date would have increased/ decreased (-) profit or loss by the amount shown below. This analysis assumes that all other variables, in particular foreign currency exchange rate, remain constant.
Variable rate | Profit or loss | |
Amounts in EUR thousands | 0.25% increase | 0.25% decrease |
2024 | ||
Financial liabilities | 8,086 | -8,086 |
Cash flow sensitivity (net) | 8,086 | -8,086 |
2023 | ||
Financial liabilities | 3,700 | -3,700 |
Cash flow sensitivity (net) | 3,700 | -3,700 |
(c) Cash flow hedges
The following table indicates the periods in which the cash flows associated with cash flow hedges are expected to occur:
Amounts in EUR thousands | Carrying amount at 31 December 2024 | 1-6 months | 6-12 months | More than 1 year | 31 December 2024 |
2024 | |||||
Interest rate Swaps | |||||
Assets | 6,209 | 1,330 | 831 | 4,048 | 6,209 |
Liabilities | 450 | - | - | 450 | 450 |
Forwards | |||||
Assets | 1,118 | 1,118 | - | - | 1,118 |
Liabilities | 4,156 | 3,047 | 1,109 | - | 4,156 |
Future contracts | |||||
Assets | 4,177 | 3,542 | 635 | - | 4,177 |
Liabilities | 2,001 | 1,840 | 161 | - | 2,001 |
Commodity Swaps | |||||
Assets | 2,757 | 1,884 | 374 | 499 | 2,757 |
Liabilities | - | - | - | - | - |
\u00a0 | 20,868 | 12,760 | 3,110 | 4,997 | 20,868 |
Amounts in EUR thousands | Carrying amount at 31 December 2023 | 1-6 months | 6-12 months | More than 1 year | 31 December 2023 |
2023 | |||||
Interest rate Swaps | |||||
Assets | 10,032 | 2,730 | 1,680 | 5,622 | 10,032 |
Liabilities | 1,425 | - | - | 1,425 | 1,425 |
Forwards | |||||
Assets | 7,793 | 6,307 | 1,475 | 11 | 7,793 |
Liabilities | 740 | 713 | 27 | - | 740 |
Electricity Swaps | |||||
Assets | 1,115 | - | - | 1,115 | 1,115 |
Liabilities | - | - | - | - | - |
Future contracts | |||||
Assets | 4,749 | 3,943 | 680 | 125 | 4,749 |
Liabilities | 317 | 316 | - | 1 | 317 |
Commodity Swaps | |||||
Assets | 2,027 | 205 | 1,092 | 730 | 2,027 |
Liabilities | 6,594 | 1,564 | 1,490 | 3,540 | 6,594 |
\u00a0 | 34,792 | 15,779 | 6,444 | 12,570 | 34,792 |
The table below provides information about the items designated as cash flow hedging instruments during the year and also as at 31 December 2024 and the reconciliation of hedging reserve. Based on their nature, hedging instruments are included in Derivatives assets and Derivatives liabilities in consolidated statement of financial position.
2024 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2024 | Changes in the value of the hedging instrument recognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rates | Other move-ments | Balance 31 December 2024 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 83,558 | 1,118 | -4,156 | 7,053 | -6,454 | -903 | -2,733 | - | - | -3,038 |
Future contracts | 191,191 | 4,177 | -2,001 | 4,432 | 2,914 | -4,316 | -844 | -9 | - | 2,176 |
Interest rate swap contracts | 348,670 | 6,209 | -450 | 8,607 | -468 | -2,380 | - | - | - | 5,759 |
Electricity swap | - | - | - | 1,115 | -1,115 | - | - | - | - | - |
Commodity swap contracts | 28,302 | 2,757 | - | -4,568 | 5,787 | 1,587 | -50 | - | - | 2,757 |
651,720 | 14,261 | -6,607 | 16,640 | 664 | -6,012 | -3,627 | -9 | - | 7,654 | |
2023 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2023 | Changes in the value of the hedging instrument rec-ognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rate | Other move-ments | Balance 31 December 2023 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 272,105 | 7,793 | -740 | 3,161 | 5,006 | -1,437 | 806 | -2 | -481 | 7,053 |
Future contracts | 170,102 | 4,749 | -317 | -5,706 | 4,339 | 2,126 | 214 | 1 | 3,458 | 4,432 |
Interest rate swap contracts | 178,700 | 10,032 | -1,425 | 17,524 | -5,754 | -3,162 | - | - | - | 8,607 |
Electricity swap | - | 1,115 | - | - | 1,115 | - | - | - | - | 1,115 |
Commodity swap contracts | 26,905 | 2,026 | -6,594 | 27,289 | -21,379 | -7,020 | - | - | -3,458 | -4,568 |
647,812 | 25,716 | -9,076 | 42,268 | -16,673 | -9,493 | 1,020 | -1 | -481 | 16,640 |
(d) Commodity price risk
The commodity markets experience continuous price fluctuations. Viohalco companies minimize their exposure to commodity price volatility by using hedging instruments, when possible.
Viohalco companies are exposed to the fluctuation of aluminium, copper, zinc, lead and nickel. In order to minimize the effect of the metal price fluctuations on their results, companies use back to back matching of purchases and sales or derivative instruments (future contracts).
As at 31 December 2024, the derivative net balance of future contracts per commodity as reported in the statement of financial position is:
Amounts in EUR thousands | 2024 | 2023 |
Aluminium | 2,016 | 3,496 |
Copper | 630 | 1,305 |
Lead | -470 | -366 |
Total | 2,176 | 4,435 |
In addition, Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions. As at 31 December 2024, the derivative net liability these contracts as reported in the statement of financial position is EUR 2.8 million.
(e) Energy price risk
Viohalco is exposed to risks arising from fluctuating energy prices. Within 2023, Viohalco companies signed a long-term Power Purchase Agreement (PPA), backed by various assets from Renewable Energy Sources (\u201cRES assets\u201d), in order to reduce its exposure to volatility in the energy prices.
Based on the initial agreement, the PPA provided for two distinct arrangements, comprising a physical delivery of electricity during the first two years (Period A), with a financial settlement of the difference between the fixed agreement price and the market electricity price, and for a virtual delivery of renewable electricity subsequently and to the end of the agreement (Period B), as produced by specified RES assets (i.e. photovoltaic facilities) yet to be constructed, with a financial settlement of the difference between the fixed agreement price for this subsequent period and the market electricity price. Period A of the PPA was assessed in accordance with IFRS 9 as an own-use agreement and was accounted for as an executory contract, while Period B of the initial PPA was assessed as comprising a derivative financial instrument, which was accounted for at fair value through profit or loss other comprehensive income.
In August 2024, an addendum to the initial contract was signed, altering effective from 15.03.2024, altering mainly the nature of the contract for Period B as well as the duration and the pricing for both period A and B. More Specifically, the delivery method in period B has been changed from virtual to physical delivery via injection and absorption declarations in the Day-Ahead Market, through an intermediary supplier, resulting in a physical delivery contract performed on similar terms as the existing one in period A.
C.4 Risks Related to Climate change
Viohalco companies recognize the importance of transparency regarding climate-related risks and opportunities to maintain trust of stakeholders and allow investors to better understand the potential impact transition and physical risks and opportunities emanating from climate change. To that end, Viohalco has pledged to assess the potential severity of the risks and the possible benefits of the opportunities with the aim to take all necessary measures to mitigate negative impacts and maximize the positive ones, and to adopt the Task Force on Climate-related Financial Disclosures (TCFD) framework to transparently communicate all climate-related risks and opportunities. For this purpose, Viohalco subsidiaries performed an assessment of climate-related risks and opportunities that covered all industrial and real estate assets. The detailed results of this assessment are reported at segmental level in the Non-Financial Disclosure, accompanying the Annual Report.
Moving to a low-carbon economy requires certain measures to be considered and implemented. Through the analysis, for each business segment, the most material climate related transition and physical risks and opportunities over the short, medium and long-term, have been identified. The transition risks assessed relate to policy, legal, technology and market changes to address climate change mitigation and adaptation. Policy actions around climate change continue to evolve, technological improvements or innovations that support the transition to a lower-carbon and energy efficient economic system can have a significant impact on organizations, while significant changes in market such as decrease in demand for specific goods or services or decreased revenues related to changes in customer behavior are some examples of the implications that can impact the operating model and the financial planning of Viohalco subsidiaries. On the other hand, extreme weather events and longer-term shifts in climate patterns such as limited water availability and extreme heat or sea level rise may have multiple impacts and possible financial implications for Viohalco companies.
The abovementioned risks and opportunities have been identified and classified on a scale of low, medium, and high, based on the actual and potential impacts on the Viohalco companies\u2019 business model, assets and operations, as well as financial impacts on the business performance. The financial impacts have being considered to the accounting estimates to the extent that they can be currently evaluated. Moreover, challenges associated with climate related commitments have been considered, and Viohalco companies have not identified any additional issues that may have a material effect on their financial statements.
C.5. Business and Operational Risk Management
Viohalco subsidiaries follow closely and on a continuous basis the developments in the international and domestic environment and timely adapt their business strategy and risk management policies to minimize the impact of the macroeconomic conditions on their operations.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDebtSecuritiesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__280-1": { "value": "A. Overview
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Non-current liabilities | ||
Secured bank loans | 121,156 | 153,749 |
Unsecured bank loans | 113,576 | 138,706 |
Secured bond issues | 499,259 | 561,646 |
Unsecured bond issues | 580,682 | 588,037 |
Loans and borrowings \u2013 Long term | 1,314,673 | 1,442,138 |
Lease Liabilities \u2013 Long term | 40,358 | 35,382 |
Total Long-term debt | 1,355,031 | 1,477,520 |
Current liabilities | ||
Secured bank loans | 135,346 | 145,032 |
Unsecured bank loans | 488,917 | 403,126 |
Current portion of secured bank loans | 49,454 | 36,981 |
Current portion of unsecured bank loans | 26,084 | 20,098 |
Current portion of secured bond issues | 62,115 | 54,903 |
Current portion of unsecured bond issues | 81,545 | 119,157 |
Loans and borrowings \u2013 Short term | 843,462 | 779,297 |
Lease Liabilities \u2013 Short term | 11,086 | 11,237 |
Total Short term debt | 854,547 | 790,534 |
Total loans and borrowings | 2,209,578 | 2,268,054 |
B. Reconciliation of movements of liabilities to cash flows from financing activities
Amounts in EUR thousands | Loans and Borrowings | Leases | Total |
Balance at 1 January 2024 | 2,221,434 | 46,620 | 2,268,054 |
Changes from financing cash flows | |||
Proceeds from loans and borrowings | 355,776 | - | 355,776 |
Repayment of borrowings & lease liabilities | -416,996 | -12,439 | -429,434 |
Total changes from financing cash flows | -61,220 | -12,439 | -73,659 |
Other changes | |||
New leases | - | 18,397 | 18,397 |
Interest expense | 122,136 | 2,449 | 124,586 |
Interest paid* | -124,905 | -2,449 | -127,353 |
Capitalised borrowing costs | 6,014 | - | 6,014 |
Terminations/Modifications | -7,482 | -1,153 | -8,635 |
Effect of changes in foreign exchange rate | 2,156 | 18 | 2,175 |
Total other changes | -2,080 | 17,262 | 15,183 |
Balance at 31 December 2024 | 2,158,135 | 51,444 | 2,209,579 |
Amounts in EUR thousands | Loans and Borrowings | Leases | Total |
Balance at 1 January 2023 | 2,429,465 | 40,380 | 2,469,845 |
Changes from financing cash flows | |||
Proceeds from loans and borrowings | 288,764 | - | 288,764 |
Repayment of borrowings & lease liabilities | -507,858 | -14,441 | -522,300 |
Total changes from financing cash flows | -219,095 | -14,441 | -233,536 |
Other changes | |||
New leases | - | 22,687 | 22,687 |
Interest expense | 137,498 | 2,095 | 139,593 |
Interest paid* | -132,223 | -2,030 | -134,253 |
Capitalised borrowing costs | 4,440 | - | 4,440 |
Terminations/Modifications | 1 | -1,228 | -1,227 |
Loss of Control/Disposal of subsidiary | - | -843 | -843 |
Effect of changes in foreign exchange rate | 1,348 | 2 | 1,350 |
Total other changes | 11,064 | 20,681 | 31,745 |
Balance at 31 December 2023 | 2,221,434 | 46,620 | 2,268,054 |
*Interest paid reported in Cash Flow Statement, includes bank charges and other finance costs.
34. Leases
\u0391. Leases as lessee
(a) Amounts recognised in the Statement of Financial Position
The Consolidated Statement of Financial Position shows the following amounts relating to leases:
Right of Use Assets
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Land | 1,118 | 1,205 |
Buildings | 9,886 | 10,908 |
Machinery | 5,782 | 5,488 |
Transportation equipment | 26,956 | 22,864 |
Other equipment | 159 | 159 |
Total Right-of-use assets | 43,901 | 40,623 |
Lease liabilities
Amounts in EUR thousands | 31 December 2024 | 31 December 2023 |
Current lease liabilities | 11,086 | 11,237 |
Non-current lease liabilities | 40,358 | 35,382 |
Total lease liabilities | 51,444 | 46,620 |
Additions to the right-of-use assets during 2024 were EUR 17,786 thousands (2023: EUR 22,687 thousands).
(b)Amounts recognised in the Statement of profit or loss
The statement of profit or loss includes the following amounts relating to leases:
Amounts in EUR thousands | 2024 | 2023 |
Depreciation charge of right-of-use assets | ||
Plots | 189 | 184 |
Buildings | 1,978 | 1,741 |
Machinery | 1,529 | 2,110 |
Transportation means | 8,277 | 6,140 |
Other equipment | 69 | 121 |
Total | 12,043 | 10,295 |
Interest expense (included in finance cost) | 2,449 | 2,095 |
Variable rental fees | 1,301 | 1,056 |
Low value rental fees | 513 | 564 |
Short term rental fees | 6,413 | 7,110 |
Total | 10,676 | 10,826 |
B. Leases as lessor
Viohalco and its companies in the real estate development sector lease out their investment properties (See note 19).
a) Future minimum lease collections
At 31 December, the future minimum lease payments under non-cancellable leases were as follows.
Amounts in EUR thousands | 2024 | 2023 |
Less than one year | 26,658 | 24,203 |
Between one and two years | 26,445 | 23,379 |
Between two and three years | 25,256 | 22,819 |
Between three and four years | 22,891 | 21,390 |
Between four and five years | 22,446 | 19,196 |
More than five years | 215,093 | 84,581 |
Total | 338,789 | 195,569 |
(b) Amounts recognized in profit or loss
The figures below are related to investment property that has been recognised in the statement of profit or loss. Operating expenses relate mainly to maintenance cost.
Amounts in EUR thousands | 2024 | 2023 |
Rental income from investment property | 29,702 | 25,558 |
Direct operating expenses that do not generate rental income | - | -65 |
27. Trade and other payables
Amounts in EUR thousands | Note | 2024 | 2023 |
Suppliers | 872,329 | 745,347 | |
Notes payable | 422,443 | 272,883 | |
Social security funds | 11 | 16,243 | 15,774 |
Amounts due to related parties | 37 | 4,289 | 4,592 |
Sundry creditors | 25,351 | 19,248 | |
Accrued expenses | 161,245 | 110,481 | |
Taxes-duties | 34,543 | 42,263 | |
Total | 1,536,443 | 1,210,588 | |
Non-current balance of trade and other payables | 26,712 | 15,896 | |
Current balance of trade and other payables | 1,509,732 | 1,194,692 | |
Balance as at 31 December | 1,536,443 | 1,210,588 |
\u2018Notes payables\u2019 in the table above concerns structured payable arrangements related to purchases of primary raw materials, such as copper, steel etc. Supplier finance arrangements are characterised by one or more finance providers offering to pay amounts that an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, when suppliers are paid. These arrangements provide the entity with extended payment terms, or the entity\u2019s suppliers with early payment terms, compared to the related invoice payment due date. Viohalco companies have entered into supplier finance arrangements with finance providers; under such arrangements, the finance providers acquire the rights to selected trade receivables from the suppliers, while the terms and conditions of the arrangement are unchanged from the trade payables from this supplier, other than the due date has been extended and the acquired payables are no longer able to be offset against credit notes received from the suppliers.
Range of payment due dates | 2024 |
Liabilities under supplier finance arrangement | 90-270 days |
Comparable trade payables that are not part of the supplier finance arrangement (same line of business) | 0-120 days |
Amounts in EUR thousand | |
Carrying amount of liabilities under supplier finance arrangement | |
Liabilities under supplier finance arrangement | 422,069 |
of which the supplier has received payment from the finance provider | 421,064 |
27. Trade and other payables
Amounts in EUR thousands | Note | 2024 | 2023 |
Suppliers | 872,329 | 745,347 | |
Notes payable | 422,443 | 272,883 | |
Social security funds | 11 | 16,243 | 15,774 |
Amounts due to related parties | 37 | 4,289 | 4,592 |
Sundry creditors | 25,351 | 19,248 | |
Accrued expenses | 161,245 | 110,481 | |
Taxes-duties | 34,543 | 42,263 | |
Total | 1,536,443 | 1,210,588 | |
Non-current balance of trade and other payables | 26,712 | 15,896 | |
Current balance of trade and other payables | 1,509,732 | 1,194,692 | |
Balance as at 31 December | 1,536,443 | 1,210,588 |
\u2018Notes payables\u2019 in the table above concerns structured payable arrangements related to purchases of primary raw materials, such as copper, steel etc. Supplier finance arrangements are characterised by one or more finance providers offering to pay amounts that an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, when suppliers are paid. These arrangements provide the entity with extended payment terms, or the entity\u2019s suppliers with early payment terms, compared to the related invoice payment due date. Viohalco companies have entered into supplier finance arrangements with finance providers; under such arrangements, the finance providers acquire the rights to selected trade receivables from the suppliers, while the terms and conditions of the arrangement are unchanged from the trade payables from this supplier, other than the due date has been extended and the acquired payables are no longer able to be offset against credit notes received from the suppliers.
Range of payment due dates | 2024 |
Liabilities under supplier finance arrangement | 90-270 days |
Comparable trade payables that are not part of the supplier finance arrangement (same line of business) | 0-120 days |
Amounts in EUR thousand | |
Carrying amount of liabilities under supplier finance arrangement | |
Liabilities under supplier finance arrangement | 422,069 |
of which the supplier has received payment from the finance provider | 421,064 |
28. Grants
\u00a0 | |||
Amounts in EUR thousands | Note | 2024 | 2023 |
Balance as at 1 January | 28,884 | 32,454 | |
New grants received during the year | 450 | 55 | |
Transfer of grants to results | -12 | - | |
Amortisation of grants | 8 | -2,681 | -2,598 |
Other movements | -40 | -1,027 | |
Balance as at 31 December | \u00a0 | 26,600 | 28,884 |
Government grants have been received for investments in property, plant and equipment.
All conditions attached to the grants received by Viohalco\u2019s companies were met as at 31 December 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGovernmentGrantsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__290-1": { "value": "29. Provisions
Non-current | |||
Amounts in EUR thousands | Pending court rulings | Other provisions | Total |
Balance as at 1 January 2024 | 92 | 1,630 | 1,722 |
Additional provisions of the fiscal year | 8 | - | 8 |
Provisions reversed | -92 | -54 | -146 |
Provisions used | - | -150 | -150 |
Balance as at 31 December 2024 | 8 | 1,426 | 1,434 |
Amounts in EUR thousands | Pending court rulings | Other provisions | Total |
Balance as at 1 January 2023 | 69 | 1,658 | 1,727 |
Additional provisions of the fiscal year | 23 | - | 23 |
Provisions reversed | - | -29 | -29 |
Balance as at 31 December 2023 | 92 | 1,630 | 1,722 |
Current | |||
Amounts in EUR thousands | Pending court rulings | Other provisions | Total |
Balance as at 1 January 2024 | 18,111 | 182 | 18,293 |
Foreign exchange differences | 1,163 | - | 1,163 |
Additional provisions of the fiscal year | 1,458 | 36 | 1,493 |
Provisions reversed | - | -20 | -20 |
Provisions used | -114 | - | -114 |
Balance as at 31 December 2024 | 20,617 | 198 | 20,815 |
Amounts in EUR thousands | Pending court rulings | Other provisions | Total |
Balance as at 1 January 2023 | 15,243 | 162 | 15,405 |
Foreign exchange differences | -518 | - | -518 |
Additional provisions of the fiscal year | 3,481 | - | 3,481 |
Provisions reversed | - | -36 | -36 |
Provisions used | -94 | 56 | -39 |
Balance as at 31 December 2023 | 18,111 | 182 | 18,293 |
During 2022, the US Department of Commerce (DoC) published its final results in the administrative proceedings conducted by the DoC for the period from 19 April 2019 through 30 April 2020 (\u201cPOR\u201d) in connection with an antidumping (\u201cAD\u201d) order on large diameter welded pipe (LDWP) from Greece. As a result, the DoC determined for the POR an antidumping duty rate of 41.04% based on total adverse facts available (AFA) for mandatory respondent Corinth Pipeworks S.A., Cenergy Holdings\u2019 steel pipes segment. Corinth Pipeworks filed an appeal before the U.S. Court of International Trade against the decision of the DoC while continuing to actively work with the DoC in order to reverse the final determination. The one-off charge related to the above-mentioned case amounted to EUR 12.8 million (USD 14 million plus interest) for the year 2021. \u03a4he charges for 2023 and 2024 relate to interest charged on the outstanding amount for the year and is included in the line \u2018Finance costs\u2019.
36. Contingent liabilities
A. Litigations & administrative reviews
Regarding Corinth Pipeworks\u2019 exports of large diameter welded pipe (LDWP) to the US for the periods May 1, 2021 - April 30, 2022, May 1, 2022 - April 30, 2023 and May 1, 2023 - April 30, 2024, no provision has been recorded in respect to antidumping duties due to the following facts:
For the period May 1, 2021 - April 30, 2022, the results of the administrative review published in Federal Register on December 22, 2023, imposed 0% dumping margin.
For the period May 1, 2022 - April 30, 2023, there were no sales to the US subject to antidumping duties; thus, no additional charge\u00a0is expected for that period.
For the period May 1, 2023 - April 30, 2024, there were no sales to the US subject to antidumping duties; thus, no additional charge\u00a0is expected for that period.
\u0392. Contigent tax liabilities
The tax filings of the subsidiaries are routinely subjected to audit by tax authorities in most of the jurisdictions in which Viohalco and its companies conduct business. These audits may result in assessments of additional taxes. Viohalco and its subsidiaries provide for additional tax in relation to the outcome of such tax assessments, to the extent that a liability is probable and estimable.
Viohalco companies believe that their accruals for tax liabilities are adequate for all open tax years based on their assessment of underlying factors, including interpretations of tax law and prior experience.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherProvisionsContingentLiabilitiesAndContingentAssetsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__298": { "value": "C. Financial risk management
Viohalco and its companies are exposed to credit, liquidity and market risk due to the use of financial instruments. This Note sets forth information on their exposure to each one of the above risks, the policies and procedures applied to risk measurement. More quantitative particulars on these disclosures are included throughout of the Consolidated Financial Statements.
The risk management policies are applied to identify and analyze the risks facing Viohalco and its companies, set risk-taking limits and apply relevant control systems.Risk management procedures are reviewed regularly and changes are implemented if the need arise.
The implementation of risk management policies and procedures is monitored by the Internal Audit function, which performs ordinary and extraordinary audits relating to the implementation of procedures, whereas the results of such audits are notified to the Board of Directors.
C.1. Credit risk
Credit risk is the risk of the financial loss to Viohalco and its companies, if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the companies\u2019 receivables from customers, contract assets and bank deposits.
The carrying amount of financial assets represents the maximum credit exposure.
Amounts in EUR thousands | Note | 2024 | 2023 |
Trade & other receivables | 15 | 611,283 | 748,668 |
Contract assets | 7 | 256,322 | 236,552 |
Less: | |||
Other down payments | 15 | -10,964 | -12,058 |
Tax assets | 15 | -62,951 | -45,947 |
Other non-financial assets | -50,072 | -101,442 | |
743,619 | 825,773 | ||
Other investments | 21 | 38,966 | 33,686 |
Cash and cash equivalents | 16 | 696,720 | 395,015 |
Derivatives | 23 | 16,390 | 28,909 |
752,076 | 457,610 | ||
Total | 1,495,695 | 1,283,383 |
(a)\tTrade and other receivables
Viohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured.
When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.
Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables.
At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:
\u00a0 | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 294,046 | 301,265 |
Other EU member states | 254,604 | 255,645 |
Other European countries | 73,071 | 68,131 |
Asia | 37,798 | 42,842 |
America | 63,648 | 142,651 |
Africa | 19,897 | 14,290 |
Oceania | 554 | 949 |
Total | 743,619 | 825,773 |
The ageing of trade and other receivables and contract assets that were not impaired was as follows:
Amounts in EUR thousands | 2024 | 2023 |
Neither past due nor impaired | 630,207 | 706,092 |
Overdue | \u00a0 | |
- Up to 6 months | 94,339 | 100,175 |
- Over 6 months | 19,073 | 19,506 |
Total | 743,619 | 825,773 |
Based on management assessment,the amounts that are past due up to 6 months and over 6 months are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.
Viohalco companies insure a significant portion of their receivables and at 31 December 2024, 71% of the receivables balances were credit insured.
The movement in impairment of trade and other receivables and contract assets is as follows:
Amounts in EUR thousands | 2024 | 2023 | ||||
Trade & other receivables | Contract assets | Total | Trade & other receivables | Contract assets | Total | |
Balance as at 1 January | 71,009 | 248 | 71,256 | 69,212 | 203 | 69,414 |
Impairment loss recognized | 8,982 | - | 8,982 | 8,954 | 68 | 9,022 |
Amounts written off | -3,137 | - | -3,137 | -6,164 | - | -6,164 |
Impairment loss reversed | -1,290 | -38 | -1,327 | -214 | -23 | -237 |
Foreign exchange differences | 1,391 | - | 1,391 | -764 | -\u00a0 | -764 |
Reclassification | -28 | - | -28 | -16 | \u00a0- | -16 |
Balance as at 31 December | 76,928 | 210 | 77,137 | 71,009 | 248 | 71,256 |
The allowance for expected credit losses for trade receivables and contract assets are calculated at individual level when there is an indication of impairment. For receivables and contract assets without any indication of impairment the expected credit losses are based on the historical data combined with forward-looking macroeconomic factors affecting credit risk, such as country risk and industry related risks. Expected loss rates are updated at every reporting date. The rising inflation and interest rates were also taken into consideration when calculating expected credit losses for the current year, without any significant impact on the impairment loss recognized.
In 2024, the impairment loss recognized concerned mainly copper segment while amounts that have been impaired mainly in other segment were written off. On the contrary, a reversal of impairment loss was recorded, as a result of the improvement of the expected loss rates of major clients in the aluminium and cables segments.
The following collateral exists for securing non-insured receivables from customers and contract assets:
\u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amounts in EUR thousands | \u00a0 | 2024 | 2023 |
Cash collateral | 181 | 530 | |
Letter of credit | 17,179 | 18,302 | |
Collateral on property | 1,850 | 1,850 | |
Payables which can be offset by receivables | 6,292 | 5,832 | |
Other | 2,262 | 2,987 | |
Total | \u00a0 | 27,763 | 29,501 |
(b)\tCash and cash equivalents
Viohalco and its subsidiaries held cash and cash equivalents of EUR 697 million at 31 December 2024 (2023: EUR 395 million). The cash and cash equivalents are held with banks and financial institutions, which are rated from A3 to Ba3 based on Moody\u2019s scale.
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. Viohalco considers that its cash and cash equivalents have low credit risk based on the credit assessment performed.
C.2. Liquidity risk
Liquidity risk is the risk that Viohalco companies will encounter difficulties in meeting their fianancial obligations in a timely manner. To manage liquidity risk they ensure, that sufficient liquidity is available, to meet their liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to their reputation.
Viohalco companies maintain sufficient undrawn credit limits to meet all their scheduled financial obligations as well as most unexpected ones.
Exposure to liquidity risk
Financial liabilities and derivatives based on contractual maturity are broken down as follows:
2024 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 934,534 | 721,491 | 52,896 | 147,134 | 57,918 | 979,440 |
Bond issues | 1,223,601 | 190,655 | 207,540 | 763,607 | 240,061 | 1,401,863 |
Lease liabilities | 51,444 | 12,707 | 10,513 | 16,699 | 16,615 | 56,534 |
Derivatives | 8,919 | 8,469 | 450 | - | - | 8,919 |
Contract liabilities | 226,488 | 227,970 | 25 | 42 | - | 228,036 |
Trade and other payables | 1,536,443 | 1,527,239 | 15,660 | 7,404 | 1,133 | 1,551,437 |
\u00a0 | 3,981,430 | 2,688,532 | 287,085 | 934,886 | 315,727 | 4,226,229 |
2023 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 897,692 | 628,960 | 87,334 | 165,785 | 90,609 | 972,687 |
Bond issues | 1,323,743 | 218,947 | 210,014 | 770,075 | 355,183 | 1,554,219 |
Lease liabilities | 46,620 | 13,065 | 10,125 | 15,386 | 21,923 | 60,498 |
Derivatives | 9,130 | 4,107 | 4,642 | 381 | - | 9,130 |
Contract liabilities | 281,387 | 282,022 | 39 | - | - | 282,060 |
Trade and other payables | 1,152,551 | 1,160,562 | 4,961 | 6,404 | 1,133 | 1,173,060 |
\u00a0 | 3,711,123 | 2,307,663 | 317,114 | 958,031 | 468,847 | 4,051,655 |
Viohalco companies\u2019 loans are subject to termination clauses based on financial ratios, such as \u2019Total liabilities / Total equity\u2018, \u2019Net debt / Total sales\u2018 and \u2019Current assets / Current liabilities\u2018, that need to be maintained above or below certain predetermined levels. These ratios are monitored regularly in order to avoid breaches that may lead to loans becoming due before contractual maturity, causing liquidity pressures.
C.3. Market risk
Market risk is the risk that changes in market prices \u2013 such as commodity prices, foreign exchange rates and interest rates - will affect Viohalco and its companies income or the value of their financial instruments. Viohalco\u2019s companies use derivatives to manage market risk.
Generally, Viohalco companies apply hedge accounting to manage volatility in their returns (P&L) .
(a) Currency risk:
Viohalco and its companies are exposed to currency risk in relation to the sales and purchases carried out and the loans issued in a currency other than the functional currency of Viohalco and its companies, which is mainly EUR. The most important currencies in which these transactions are held are EUR, USD and GBP.
Over time, Viohalco\u2019s companies hedge the greatest part of their exposure to foreign currencies. Viohalco\u2019s companies enter mainly into forward contracts with external counterparties so as to deal with currency risk. These contracts mainly expire within the next 12 months from the reporting date. If necessary, such contracts are renewed upon expiry.
FX risk may also be covered \u201cnaturally\u201d by taking out loans in the respective currencies if loan interest is denominated in the same currency as that of cash flows coming from operating activities.
The capital investments of Viohalco companies are not hedgedas they have been made mainly in Euro.
The summary quantitative data about Viohalco and its companies\u2019 exposure to currency risk as reported is as follows.
2024 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 100,710 | 23,957 | 20,156 | 2,766 | 20,491 | 1,565 | 169,644 | 441,639 | 611,283 |
Contract assets | 5,755 | - | - | - | - | - | 5,755 | 250,567 | 256,322 |
Loans and borrowings | -6,856 | -32,334 | -4,025 | -1,019 | -4,034 | -1,019 | -49,287 | -2,160,291 | -2,209,578 |
Trade and other payables | -121,630 | -17,209 | -63,231 | -610 | -25,382 | -2,262 | -230,324 | -1,306,120 | -1,536,443 |
Contract Iiabilities | -27,780 | -1,439 | -686 | - | -55 | - | -29,960 | -196,528 | -226,488 |
Cash & cash equivalents | 100,074 | 8,170 | 7,194 | 302 | 4,828 | 1,262 | 121,829 | 574,891 | 696,720 |
\u00a0 | 50,273 | -18,856 | -40,593 | 1,439 | -4,152 | -454 | -12,343 | -2,395,843 | -2,408,185 |
Derivatives for risk hedging (Nominal Value) | -31,384 | -28,066 | - | - | - | - | -59,450 | 20,650 | -38,800 |
Exposure | 18,890 | -46,922 | -40,593 | 1,439 | -4,152 | -454 | -71,793 | -2,375,193 | -2,446,985 |
2023 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 175,686 | 15,369 | 18,888 | 1,534 | 27,363 | 6,609 | 245,448 | 503,220 | 748,668 |
Contract assets | 42,159 | - | 4 | - | - | - | 42,163 | 194,389 | 236,552 |
Loans and borrowings | -14,032 | -26,976 | -4,527 | -31 | -4,909 | -233 | -50,707 | -2,217,346 | -2,268,054 |
Trade and other payables | -129,008 | -13,631 | -47,226 | -507 | -25,364 | -3,174 | -218,910 | -991,679 | -1,210,588 |
Contract Iiabilities | -135,607 | - | -1,168 | - | -77 | - | -136,852 | -144,535 | -281,387 |
Cash & cash equivalents | 42,519 | 2,346 | 5,397 | 151 | 2,523 | 1,673 | 54,609 | 340,406 | 395,015 |
\u00a0 | -18,282 | -22,891 | -28,632 | 1,146 | -463 | 4,874 | -64,249 | -2,315,546 | -2,379,795 |
Derivatives for risk hedging (Nominal Value) | 214,110 | 1,036 | -\u00a0 | -\u00a0 | -\u00a0 | -\u00a0 | 215,146 | - | 215,146 |
Exposure | 195,828 | -21,855 | -28,632 | 1,146 | -463 | 4,874 | 150,898 | -2,315,546 | -2,164,648 |
\u201cDerivatives for risk hedging\u201d includes also derivatives that relate to highly probable transactions, which have not been yet recognized as assets or liabilities in the consolidated statement of financial position. Euro denominated amounts are included for totals\u2019 reconciliation purposes.
The following exchange rates have been applied during the year.
Average exchange rate | Year end spot rate | |||
2024 | 2023 | 2024 | 2023 | |
USD | 1.08 | 1.08 | 1.04 | 1.11 |
GBP | 0.85 | 0.87 | 0.83 | 0.87 |
BGN | 1.96 | 1.96 | 1.96 | 1.96 |
RSD | 117.09 | 117.25 | 117.01 | 117.17 |
RO\u039d | 4.97 | 4.95 | 4.97 | 4.97 |
Viohalco is primarily exposed to changes of Euro against US dollar, pound sterling, Serbian Dinar and RON. A reasonably possible strengthening (weakening) of Euro against these currencies as at 31 December would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The Bulgarian currency LEV is not analysed below due to its fixed currency rate at 1.96 BGN/EUR.
Profit or loss | Equity, net of tax | |||
Amounts in EUR thousands | EUR Strengthening | EUR Weakening | EUR Strengthening | EUR Weakening |
2024 | ||||
USD (10% movement) | 4,006 | -4,006 | 6,454 | -6,454 |
GBP (10% movement) | 5,844 | -5,844 | 8,033 | -8,033 |
RSD (10% movement) | -112 | 112 | -112 | 112 |
RON (10% movement) | 324 | -324 | 324 | -324 |
2023 | ||||
USD (10% movement) | -14,404 | 14,404 | -31,105 | 31,105 |
GBP (10% movement) | 2,227 | -2,227 | 2,147 | -2,147 |
RSD (10% movement) | -89 | 89 | -89 | 89 |
RON (10% movement) | 36 | -36 | 36 | -36 |
(b) Interest rate risk:
Viohalco Subsidiaries have adopted a flexible policy of ensuring that a portion of their Medium and LT debt obligations are on a fixed rate basis. This is achieved through a combination of issuing medium term, fixed rate bond loans and using interest rate swaps to hedge a portion of their floating rate medium and LT loans. The interest rate profile of Viohalco companies\u2019 interest-bearing financial instruments, as reported is as follows.
Nominal amount | ||
Amounts in EUR thousands | 2024 | 2023 |
Fixed-rate instruments | ||
Financial liabilities | 552,874 | 548,973 |
Variable-rate instruments | ||
Financial liabilities | 1,656,704 | 1,719,081 |
Interest rate swaps (nominal value) | -215,293 | -249,721 |
1,441,411 | 1,469,360 |
Fixed-rate instruments
Viohalco does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Viohalco currently uses derivatives (interest rate swaps) as hedging instruments under a cash flow hedge accounting model.
Sensitivity analysis for variable-rate instruments
A reasonably possible change of 0.25% in interest rates of variable-rate instruments at the reporting date would have increased/ decreased (-) profit or loss by the amount shown below. This analysis assumes that all other variables, in particular foreign currency exchange rate, remain constant.
Variable rate | Profit or loss | |
Amounts in EUR thousands | 0.25% increase | 0.25% decrease |
2024 | ||
Financial liabilities | 8,086 | -8,086 |
Cash flow sensitivity (net) | 8,086 | -8,086 |
2023 | ||
Financial liabilities | 3,700 | -3,700 |
Cash flow sensitivity (net) | 3,700 | -3,700 |
(c) Cash flow hedges
The following table indicates the periods in which the cash flows associated with cash flow hedges are expected to occur:
Amounts in EUR thousands | Carrying amount at 31 December 2024 | 1-6 months | 6-12 months | More than 1 year | 31 December 2024 |
2024 | |||||
Interest rate Swaps | |||||
Assets | 6,209 | 1,330 | 831 | 4,048 | 6,209 |
Liabilities | 450 | - | - | 450 | 450 |
Forwards | |||||
Assets | 1,118 | 1,118 | - | - | 1,118 |
Liabilities | 4,156 | 3,047 | 1,109 | - | 4,156 |
Future contracts | |||||
Assets | 4,177 | 3,542 | 635 | - | 4,177 |
Liabilities | 2,001 | 1,840 | 161 | - | 2,001 |
Commodity Swaps | |||||
Assets | 2,757 | 1,884 | 374 | 499 | 2,757 |
Liabilities | - | - | - | - | - |
\u00a0 | 20,868 | 12,760 | 3,110 | 4,997 | 20,868 |
Amounts in EUR thousands | Carrying amount at 31 December 2023 | 1-6 months | 6-12 months | More than 1 year | 31 December 2023 |
2023 | |||||
Interest rate Swaps | |||||
Assets | 10,032 | 2,730 | 1,680 | 5,622 | 10,032 |
Liabilities | 1,425 | - | - | 1,425 | 1,425 |
Forwards | |||||
Assets | 7,793 | 6,307 | 1,475 | 11 | 7,793 |
Liabilities | 740 | 713 | 27 | - | 740 |
Electricity Swaps | |||||
Assets | 1,115 | - | - | 1,115 | 1,115 |
Liabilities | - | - | - | - | - |
Future contracts | |||||
Assets | 4,749 | 3,943 | 680 | 125 | 4,749 |
Liabilities | 317 | 316 | - | 1 | 317 |
Commodity Swaps | |||||
Assets | 2,027 | 205 | 1,092 | 730 | 2,027 |
Liabilities | 6,594 | 1,564 | 1,490 | 3,540 | 6,594 |
\u00a0 | 34,792 | 15,779 | 6,444 | 12,570 | 34,792 |
The table below provides information about the items designated as cash flow hedging instruments during the year and also as at 31 December 2024 and the reconciliation of hedging reserve. Based on their nature, hedging instruments are included in Derivatives assets and Derivatives liabilities in consolidated statement of financial position.
2024 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2024 | Changes in the value of the hedging instrument recognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rates | Other move-ments | Balance 31 December 2024 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 83,558 | 1,118 | -4,156 | 7,053 | -6,454 | -903 | -2,733 | - | - | -3,038 |
Future contracts | 191,191 | 4,177 | -2,001 | 4,432 | 2,914 | -4,316 | -844 | -9 | - | 2,176 |
Interest rate swap contracts | 348,670 | 6,209 | -450 | 8,607 | -468 | -2,380 | - | - | - | 5,759 |
Electricity swap | - | - | - | 1,115 | -1,115 | - | - | - | - | - |
Commodity swap contracts | 28,302 | 2,757 | - | -4,568 | 5,787 | 1,587 | -50 | - | - | 2,757 |
651,720 | 14,261 | -6,607 | 16,640 | 664 | -6,012 | -3,627 | -9 | - | 7,654 | |
2023 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2023 | Changes in the value of the hedging instrument rec-ognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rate | Other move-ments | Balance 31 December 2023 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 272,105 | 7,793 | -740 | 3,161 | 5,006 | -1,437 | 806 | -2 | -481 | 7,053 |
Future contracts | 170,102 | 4,749 | -317 | -5,706 | 4,339 | 2,126 | 214 | 1 | 3,458 | 4,432 |
Interest rate swap contracts | 178,700 | 10,032 | -1,425 | 17,524 | -5,754 | -3,162 | - | - | - | 8,607 |
Electricity swap | - | 1,115 | - | - | 1,115 | - | - | - | - | 1,115 |
Commodity swap contracts | 26,905 | 2,026 | -6,594 | 27,289 | -21,379 | -7,020 | - | - | -3,458 | -4,568 |
647,812 | 25,716 | -9,076 | 42,268 | -16,673 | -9,493 | 1,020 | -1 | -481 | 16,640 |
(d) Commodity price risk
The commodity markets experience continuous price fluctuations. Viohalco companies minimize their exposure to commodity price volatility by using hedging instruments, when possible.
Viohalco companies are exposed to the fluctuation of aluminium, copper, zinc, lead and nickel. In order to minimize the effect of the metal price fluctuations on their results, companies use back to back matching of purchases and sales or derivative instruments (future contracts).
As at 31 December 2024, the derivative net balance of future contracts per commodity as reported in the statement of financial position is:
Amounts in EUR thousands | 2024 | 2023 |
Aluminium | 2,016 | 3,496 |
Copper | 630 | 1,305 |
Lead | -470 | -366 |
Total | 2,176 | 4,435 |
In addition, Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions. As at 31 December 2024, the derivative net liability these contracts as reported in the statement of financial position is EUR 2.8 million.
(e) Energy price risk
Viohalco is exposed to risks arising from fluctuating energy prices. Within 2023, Viohalco companies signed a long-term Power Purchase Agreement (PPA), backed by various assets from Renewable Energy Sources (\u201cRES assets\u201d), in order to reduce its exposure to volatility in the energy prices.
Based on the initial agreement, the PPA provided for two distinct arrangements, comprising a physical delivery of electricity during the first two years (Period A), with a financial settlement of the difference between the fixed agreement price and the market electricity price, and for a virtual delivery of renewable electricity subsequently and to the end of the agreement (Period B), as produced by specified RES assets (i.e. photovoltaic facilities) yet to be constructed, with a financial settlement of the difference between the fixed agreement price for this subsequent period and the market electricity price. Period A of the PPA was assessed in accordance with IFRS 9 as an own-use agreement and was accounted for as an executory contract, while Period B of the initial PPA was assessed as comprising a derivative financial instrument, which was accounted for at fair value through profit or loss other comprehensive income.
In August 2024, an addendum to the initial contract was signed, altering effective from 15.03.2024, altering mainly the nature of the contract for Period B as well as the duration and the pricing for both period A and B. More Specifically, the delivery method in period B has been changed from virtual to physical delivery via injection and absorption declarations in the Day-Ahead Market, through an intermediary supplier, resulting in a physical delivery contract performed on similar terms as the existing one in period A.
C.4 Risks Related to Climate change
Viohalco companies recognize the importance of transparency regarding climate-related risks and opportunities to maintain trust of stakeholders and allow investors to better understand the potential impact transition and physical risks and opportunities emanating from climate change. To that end, Viohalco has pledged to assess the potential severity of the risks and the possible benefits of the opportunities with the aim to take all necessary measures to mitigate negative impacts and maximize the positive ones, and to adopt the Task Force on Climate-related Financial Disclosures (TCFD) framework to transparently communicate all climate-related risks and opportunities. For this purpose, Viohalco subsidiaries performed an assessment of climate-related risks and opportunities that covered all industrial and real estate assets. The detailed results of this assessment are reported at segmental level in the Non-Financial Disclosure, accompanying the Annual Report.
Moving to a low-carbon economy requires certain measures to be considered and implemented. Through the analysis, for each business segment, the most material climate related transition and physical risks and opportunities over the short, medium and long-term, have been identified. The transition risks assessed relate to policy, legal, technology and market changes to address climate change mitigation and adaptation. Policy actions around climate change continue to evolve, technological improvements or innovations that support the transition to a lower-carbon and energy efficient economic system can have a significant impact on organizations, while significant changes in market such as decrease in demand for specific goods or services or decreased revenues related to changes in customer behavior are some examples of the implications that can impact the operating model and the financial planning of Viohalco subsidiaries. On the other hand, extreme weather events and longer-term shifts in climate patterns such as limited water availability and extreme heat or sea level rise may have multiple impacts and possible financial implications for Viohalco companies.
The abovementioned risks and opportunities have been identified and classified on a scale of low, medium, and high, based on the actual and potential impacts on the Viohalco companies\u2019 business model, assets and operations, as well as financial impacts on the business performance. The financial impacts have being considered to the accounting estimates to the extent that they can be currently evaluated. Moreover, challenges associated with climate related commitments have been considered, and Viohalco companies have not identified any additional issues that may have a material effect on their financial statements.
C.5. Business and Operational Risk Management
Viohalco subsidiaries follow closely and on a continuous basis the developments in the international and domestic environment and timely adapt their business strategy and risk management policies to minimize the impact of the macroeconomic conditions on their operations.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialRiskManagementExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__300-1": { "value": "C.1. Credit risk
Credit risk is the risk of the financial loss to Viohalco and its companies, if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the companies\u2019 receivables from customers, contract assets and bank deposits.
The carrying amount of financial assets represents the maximum credit exposure.
Amounts in EUR thousands | Note | 2024 | 2023 |
Trade & other receivables | 15 | 611,283 | 748,668 |
Contract assets | 7 | 256,322 | 236,552 |
Less: | |||
Other down payments | 15 | -10,964 | -12,058 |
Tax assets | 15 | -62,951 | -45,947 |
Other non-financial assets | -50,072 | -101,442 | |
743,619 | 825,773 | ||
Other investments | 21 | 38,966 | 33,686 |
Cash and cash equivalents | 16 | 696,720 | 395,015 |
Derivatives | 23 | 16,390 | 28,909 |
752,076 | 457,610 | ||
Total | 1,495,695 | 1,283,383 |
(a)\tTrade and other receivables
Viohalco\u2019s companies have established a credit policy under which each customer\u2019s creditworthiness is examined on an individual basis before the determination of the payment terms offered. Credit limits are set for each customer and are regularly reviewed and, readjusted, if necessary. As a rule, customer credit limits are in accordance with of the credit insurance limits offered by the insurance companies where Viohalco companies\u2019 rceivables are insured.
When monitoring the credit risk,customers are grouped according to their credit characteristics, and their payment history. Trade and other receivables mainly include wholesale customers of Viohalco\u2019s companies. Any customers characterized as being \u201chigh risk\u201d are monitored closely subsequent sales have zero payment terms. Depending on the customer credit rating and its status, Viohalco\u2019s companies require tangible or other security (e.g. letters of guarantee) in order to secure its receivables.
Viohalco\u2019s companies record an impairment loss that represents its expected credit losses in respect of trade and other receivables.
At 31 December, the maximum exposure to credit risk for trade and other receivables and contract assets by geographic region was as follows:
\u00a0 | ||
Amounts in EUR thousands | 2024 | 2023 |
Greece | 294,046 | 301,265 |
Other EU member states | 254,604 | 255,645 |
Other European countries | 73,071 | 68,131 |
Asia | 37,798 | 42,842 |
America | 63,648 | 142,651 |
Africa | 19,897 | 14,290 |
Oceania | 554 | 949 |
Total | 743,619 | 825,773 |
The ageing of trade and other receivables and contract assets that were not impaired was as follows:
Amounts in EUR thousands | 2024 | 2023 |
Neither past due nor impaired | 630,207 | 706,092 |
Overdue | \u00a0 | |
- Up to 6 months | 94,339 | 100,175 |
- Over 6 months | 19,073 | 19,506 |
Total | 743,619 | 825,773 |
Based on management assessment,the amounts that are past due up to 6 months and over 6 months are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.
Viohalco companies insure a significant portion of their receivables and at 31 December 2024, 71% of the receivables balances were credit insured.
The movement in impairment of trade and other receivables and contract assets is as follows:
Amounts in EUR thousands | 2024 | 2023 | ||||
Trade & other receivables | Contract assets | Total | Trade & other receivables | Contract assets | Total | |
Balance as at 1 January | 71,009 | 248 | 71,256 | 69,212 | 203 | 69,414 |
Impairment loss recognized | 8,982 | - | 8,982 | 8,954 | 68 | 9,022 |
Amounts written off | -3,137 | - | -3,137 | -6,164 | - | -6,164 |
Impairment loss reversed | -1,290 | -38 | -1,327 | -214 | -23 | -237 |
Foreign exchange differences | 1,391 | - | 1,391 | -764 | -\u00a0 | -764 |
Reclassification | -28 | - | -28 | -16 | \u00a0- | -16 |
Balance as at 31 December | 76,928 | 210 | 77,137 | 71,009 | 248 | 71,256 |
The allowance for expected credit losses for trade receivables and contract assets are calculated at individual level when there is an indication of impairment. For receivables and contract assets without any indication of impairment the expected credit losses are based on the historical data combined with forward-looking macroeconomic factors affecting credit risk, such as country risk and industry related risks. Expected loss rates are updated at every reporting date. The rising inflation and interest rates were also taken into consideration when calculating expected credit losses for the current year, without any significant impact on the impairment loss recognized.
In 2024, the impairment loss recognized concerned mainly copper segment while amounts that have been impaired mainly in other segment were written off. On the contrary, a reversal of impairment loss was recorded, as a result of the improvement of the expected loss rates of major clients in the aluminium and cables segments.
The following collateral exists for securing non-insured receivables from customers and contract assets:
\u00a0 | \u00a0 | \u00a0 | \u00a0 |
Amounts in EUR thousands | \u00a0 | 2024 | 2023 |
Cash collateral | 181 | 530 | |
Letter of credit | 17,179 | 18,302 | |
Collateral on property | 1,850 | 1,850 | |
Payables which can be offset by receivables | 6,292 | 5,832 | |
Other | 2,262 | 2,987 | |
Total | \u00a0 | 27,763 | 29,501 |
(b)\tCash and cash equivalents
Viohalco and its subsidiaries held cash and cash equivalents of EUR 697 million at 31 December 2024 (2023: EUR 395 million). The cash and cash equivalents are held with banks and financial institutions, which are rated from A3 to Ba3 based on Moody\u2019s scale.
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. Viohalco considers that its cash and cash equivalents have low credit risk based on the credit assessment performed.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__322": { "value": "C.2. Liquidity risk
Liquidity risk is the risk that Viohalco companies will encounter difficulties in meeting their fianancial obligations in a timely manner. To manage liquidity risk they ensure, that sufficient liquidity is available, to meet their liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to their reputation.
Viohalco companies maintain sufficient undrawn credit limits to meet all their scheduled financial obligations as well as most unexpected ones.
Exposure to liquidity risk
Financial liabilities and derivatives based on contractual maturity are broken down as follows:
2024 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 934,534 | 721,491 | 52,896 | 147,134 | 57,918 | 979,440 |
Bond issues | 1,223,601 | 190,655 | 207,540 | 763,607 | 240,061 | 1,401,863 |
Lease liabilities | 51,444 | 12,707 | 10,513 | 16,699 | 16,615 | 56,534 |
Derivatives | 8,919 | 8,469 | 450 | - | - | 8,919 |
Contract liabilities | 226,488 | 227,970 | 25 | 42 | - | 228,036 |
Trade and other payables | 1,536,443 | 1,527,239 | 15,660 | 7,404 | 1,133 | 1,551,437 |
\u00a0 | 3,981,430 | 2,688,532 | 287,085 | 934,886 | 315,727 | 4,226,229 |
2023 | Contractual cash flows | |||||
Amounts in EUR thousands | Carrying Amount | < 1year | 1-2 years | 2-5 years | > 5 years | Total |
Liabilities | ||||||
Bank loans | 897,692 | 628,960 | 87,334 | 165,785 | 90,609 | 972,687 |
Bond issues | 1,323,743 | 218,947 | 210,014 | 770,075 | 355,183 | 1,554,219 |
Lease liabilities | 46,620 | 13,065 | 10,125 | 15,386 | 21,923 | 60,498 |
Derivatives | 9,130 | 4,107 | 4,642 | 381 | - | 9,130 |
Contract liabilities | 281,387 | 282,022 | 39 | - | - | 282,060 |
Trade and other payables | 1,152,551 | 1,160,562 | 4,961 | 6,404 | 1,133 | 1,173,060 |
\u00a0 | 3,711,123 | 2,307,663 | 317,114 | 958,031 | 468,847 | 4,051,655 |
Viohalco companies\u2019 loans are subject to termination clauses based on financial ratios, such as \u2019Total liabilities / Total equity\u2018, \u2019Net debt / Total sales\u2018 and \u2019Current assets / Current liabilities\u2018, that need to be maintained above or below certain predetermined levels. These ratios are monitored regularly in order to avoid breaches that may lead to loans becoming due before contractual maturity, causing liquidity pressures.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__323": { "value": "C.3. Market risk
Market risk is the risk that changes in market prices \u2013 such as commodity prices, foreign exchange rates and interest rates - will affect Viohalco and its companies income or the value of their financial instruments. Viohalco\u2019s companies use derivatives to manage market risk.
Generally, Viohalco companies apply hedge accounting to manage volatility in their returns (P&L) .
(a) Currency risk:
Viohalco and its companies are exposed to currency risk in relation to the sales and purchases carried out and the loans issued in a currency other than the functional currency of Viohalco and its companies, which is mainly EUR. The most important currencies in which these transactions are held are EUR, USD and GBP.
Over time, Viohalco\u2019s companies hedge the greatest part of their exposure to foreign currencies. Viohalco\u2019s companies enter mainly into forward contracts with external counterparties so as to deal with currency risk. These contracts mainly expire within the next 12 months from the reporting date. If necessary, such contracts are renewed upon expiry.
FX risk may also be covered \u201cnaturally\u201d by taking out loans in the respective currencies if loan interest is denominated in the same currency as that of cash flows coming from operating activities.
The capital investments of Viohalco companies are not hedgedas they have been made mainly in Euro.
The summary quantitative data about Viohalco and its companies\u2019 exposure to currency risk as reported is as follows.
2024 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 100,710 | 23,957 | 20,156 | 2,766 | 20,491 | 1,565 | 169,644 | 441,639 | 611,283 |
Contract assets | 5,755 | - | - | - | - | - | 5,755 | 250,567 | 256,322 |
Loans and borrowings | -6,856 | -32,334 | -4,025 | -1,019 | -4,034 | -1,019 | -49,287 | -2,160,291 | -2,209,578 |
Trade and other payables | -121,630 | -17,209 | -63,231 | -610 | -25,382 | -2,262 | -230,324 | -1,306,120 | -1,536,443 |
Contract Iiabilities | -27,780 | -1,439 | -686 | - | -55 | - | -29,960 | -196,528 | -226,488 |
Cash & cash equivalents | 100,074 | 8,170 | 7,194 | 302 | 4,828 | 1,262 | 121,829 | 574,891 | 696,720 |
\u00a0 | 50,273 | -18,856 | -40,593 | 1,439 | -4,152 | -454 | -12,343 | -2,395,843 | -2,408,185 |
Derivatives for risk hedging (Nominal Value) | -31,384 | -28,066 | - | - | - | - | -59,450 | 20,650 | -38,800 |
Exposure | 18,890 | -46,922 | -40,593 | 1,439 | -4,152 | -454 | -71,793 | -2,375,193 | -2,446,985 |
2023 | |||||||||
Amounts in EUR thousands | USD | GBP | BGN | RSD | RON | Other | Total at risk | EUR | Total |
Trade and other receivables | 175,686 | 15,369 | 18,888 | 1,534 | 27,363 | 6,609 | 245,448 | 503,220 | 748,668 |
Contract assets | 42,159 | - | 4 | - | - | - | 42,163 | 194,389 | 236,552 |
Loans and borrowings | -14,032 | -26,976 | -4,527 | -31 | -4,909 | -233 | -50,707 | -2,217,346 | -2,268,054 |
Trade and other payables | -129,008 | -13,631 | -47,226 | -507 | -25,364 | -3,174 | -218,910 | -991,679 | -1,210,588 |
Contract Iiabilities | -135,607 | - | -1,168 | - | -77 | - | -136,852 | -144,535 | -281,387 |
Cash & cash equivalents | 42,519 | 2,346 | 5,397 | 151 | 2,523 | 1,673 | 54,609 | 340,406 | 395,015 |
\u00a0 | -18,282 | -22,891 | -28,632 | 1,146 | -463 | 4,874 | -64,249 | -2,315,546 | -2,379,795 |
Derivatives for risk hedging (Nominal Value) | 214,110 | 1,036 | -\u00a0 | -\u00a0 | -\u00a0 | -\u00a0 | 215,146 | - | 215,146 |
Exposure | 195,828 | -21,855 | -28,632 | 1,146 | -463 | 4,874 | 150,898 | -2,315,546 | -2,164,648 |
\u201cDerivatives for risk hedging\u201d includes also derivatives that relate to highly probable transactions, which have not been yet recognized as assets or liabilities in the consolidated statement of financial position. Euro denominated amounts are included for totals\u2019 reconciliation purposes.
The following exchange rates have been applied during the year.
Average exchange rate | Year end spot rate | |||
2024 | 2023 | 2024 | 2023 | |
USD | 1.08 | 1.08 | 1.04 | 1.11 |
GBP | 0.85 | 0.87 | 0.83 | 0.87 |
BGN | 1.96 | 1.96 | 1.96 | 1.96 |
RSD | 117.09 | 117.25 | 117.01 | 117.17 |
RO\u039d | 4.97 | 4.95 | 4.97 | 4.97 |
Viohalco is primarily exposed to changes of Euro against US dollar, pound sterling, Serbian Dinar and RON. A reasonably possible strengthening (weakening) of Euro against these currencies as at 31 December would have affected the measurement of financial instruments denominated in a foreign currency and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases. The Bulgarian currency LEV is not analysed below due to its fixed currency rate at 1.96 BGN/EUR.
Profit or loss | Equity, net of tax | |||
Amounts in EUR thousands | EUR Strengthening | EUR Weakening | EUR Strengthening | EUR Weakening |
2024 | ||||
USD (10% movement) | 4,006 | -4,006 | 6,454 | -6,454 |
GBP (10% movement) | 5,844 | -5,844 | 8,033 | -8,033 |
RSD (10% movement) | -112 | 112 | -112 | 112 |
RON (10% movement) | 324 | -324 | 324 | -324 |
2023 | ||||
USD (10% movement) | -14,404 | 14,404 | -31,105 | 31,105 |
GBP (10% movement) | 2,227 | -2,227 | 2,147 | -2,147 |
RSD (10% movement) | -89 | 89 | -89 | 89 |
RON (10% movement) | 36 | -36 | 36 | -36 |
(b) Interest rate risk:
Viohalco Subsidiaries have adopted a flexible policy of ensuring that a portion of their Medium and LT debt obligations are on a fixed rate basis. This is achieved through a combination of issuing medium term, fixed rate bond loans and using interest rate swaps to hedge a portion of their floating rate medium and LT loans. The interest rate profile of Viohalco companies\u2019 interest-bearing financial instruments, as reported is as follows.
Nominal amount | ||
Amounts in EUR thousands | 2024 | 2023 |
Fixed-rate instruments | ||
Financial liabilities | 552,874 | 548,973 |
Variable-rate instruments | ||
Financial liabilities | 1,656,704 | 1,719,081 |
Interest rate swaps (nominal value) | -215,293 | -249,721 |
1,441,411 | 1,469,360 |
Fixed-rate instruments
Viohalco does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Viohalco currently uses derivatives (interest rate swaps) as hedging instruments under a cash flow hedge accounting model.
Sensitivity analysis for variable-rate instruments
A reasonably possible change of 0.25% in interest rates of variable-rate instruments at the reporting date would have increased/ decreased (-) profit or loss by the amount shown below. This analysis assumes that all other variables, in particular foreign currency exchange rate, remain constant.
Variable rate | Profit or loss | |
Amounts in EUR thousands | 0.25% increase | 0.25% decrease |
2024 | ||
Financial liabilities | 8,086 | -8,086 |
Cash flow sensitivity (net) | 8,086 | -8,086 |
2023 | ||
Financial liabilities | 3,700 | -3,700 |
Cash flow sensitivity (net) | 3,700 | -3,700 |
(c) Cash flow hedges
The following table indicates the periods in which the cash flows associated with cash flow hedges are expected to occur:
Amounts in EUR thousands | Carrying amount at 31 December 2024 | 1-6 months | 6-12 months | More than 1 year | 31 December 2024 |
2024 | |||||
Interest rate Swaps | |||||
Assets | 6,209 | 1,330 | 831 | 4,048 | 6,209 |
Liabilities | 450 | - | - | 450 | 450 |
Forwards | |||||
Assets | 1,118 | 1,118 | - | - | 1,118 |
Liabilities | 4,156 | 3,047 | 1,109 | - | 4,156 |
Future contracts | |||||
Assets | 4,177 | 3,542 | 635 | - | 4,177 |
Liabilities | 2,001 | 1,840 | 161 | - | 2,001 |
Commodity Swaps | |||||
Assets | 2,757 | 1,884 | 374 | 499 | 2,757 |
Liabilities | - | - | - | - | - |
\u00a0 | 20,868 | 12,760 | 3,110 | 4,997 | 20,868 |
Amounts in EUR thousands | Carrying amount at 31 December 2023 | 1-6 months | 6-12 months | More than 1 year | 31 December 2023 |
2023 | |||||
Interest rate Swaps | |||||
Assets | 10,032 | 2,730 | 1,680 | 5,622 | 10,032 |
Liabilities | 1,425 | - | - | 1,425 | 1,425 |
Forwards | |||||
Assets | 7,793 | 6,307 | 1,475 | 11 | 7,793 |
Liabilities | 740 | 713 | 27 | - | 740 |
Electricity Swaps | |||||
Assets | 1,115 | - | - | 1,115 | 1,115 |
Liabilities | - | - | - | - | - |
Future contracts | |||||
Assets | 4,749 | 3,943 | 680 | 125 | 4,749 |
Liabilities | 317 | 316 | - | 1 | 317 |
Commodity Swaps | |||||
Assets | 2,027 | 205 | 1,092 | 730 | 2,027 |
Liabilities | 6,594 | 1,564 | 1,490 | 3,540 | 6,594 |
\u00a0 | 34,792 | 15,779 | 6,444 | 12,570 | 34,792 |
The table below provides information about the items designated as cash flow hedging instruments during the year and also as at 31 December 2024 and the reconciliation of hedging reserve. Based on their nature, hedging instruments are included in Derivatives assets and Derivatives liabilities in consolidated statement of financial position.
2024 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2024 | Changes in the value of the hedging instrument recognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rates | Other move-ments | Balance 31 December 2024 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 83,558 | 1,118 | -4,156 | 7,053 | -6,454 | -903 | -2,733 | - | - | -3,038 |
Future contracts | 191,191 | 4,177 | -2,001 | 4,432 | 2,914 | -4,316 | -844 | -9 | - | 2,176 |
Interest rate swap contracts | 348,670 | 6,209 | -450 | 8,607 | -468 | -2,380 | - | - | - | 5,759 |
Electricity swap | - | - | - | 1,115 | -1,115 | - | - | - | - | - |
Commodity swap contracts | 28,302 | 2,757 | - | -4,568 | 5,787 | 1,587 | -50 | - | - | 2,757 |
651,720 | 14,261 | -6,607 | 16,640 | 664 | -6,012 | -3,627 | -9 | - | 7,654 | |
2023 | ||||||||||
Amounts in EUR thousands | Nominal Amount | Carrying amount | Carrying amount | Balance 1 January 2023 | Changes in the value of the hedging instrument rec-ognised in OCI | Amount reclassified from hedging reserve to profit or loss | Ineffective portion recognised in profit or loss | Effect of move-ment in exchange rate | Other move-ments | Balance 31 December 2023 |
Assets | Liabilities | |||||||||
Forward foreign exchange contracts | 272,105 | 7,793 | -740 | 3,161 | 5,006 | -1,437 | 806 | -2 | -481 | 7,053 |
Future contracts | 170,102 | 4,749 | -317 | -5,706 | 4,339 | 2,126 | 214 | 1 | 3,458 | 4,432 |
Interest rate swap contracts | 178,700 | 10,032 | -1,425 | 17,524 | -5,754 | -3,162 | - | - | - | 8,607 |
Electricity swap | - | 1,115 | - | - | 1,115 | - | - | - | - | 1,115 |
Commodity swap contracts | 26,905 | 2,026 | -6,594 | 27,289 | -21,379 | -7,020 | - | - | -3,458 | -4,568 |
647,812 | 25,716 | -9,076 | 42,268 | -16,673 | -9,493 | 1,020 | -1 | -481 | 16,640 |
(d) Commodity price risk
The commodity markets experience continuous price fluctuations. Viohalco companies minimize their exposure to commodity price volatility by using hedging instruments, when possible.
Viohalco companies are exposed to the fluctuation of aluminium, copper, zinc, lead and nickel. In order to minimize the effect of the metal price fluctuations on their results, companies use back to back matching of purchases and sales or derivative instruments (future contracts).
As at 31 December 2024, the derivative net balance of future contracts per commodity as reported in the statement of financial position is:
Amounts in EUR thousands | 2024 | 2023 |
Aluminium | 2,016 | 3,496 |
Copper | 630 | 1,305 |
Lead | -470 | -366 |
Total | 2,176 | 4,435 |
In addition, Viohalco subsidiaries use Commodity Swaps referenced on the Title Transfer Facility (TTF) prices to hedge the risk of fluctuations in natural gas prices from market conditions. As at 31 December 2024, the derivative net liability these contracts as reported in the statement of financial position is EUR 2.8 million.
(e) Energy price risk
Viohalco is exposed to risks arising from fluctuating energy prices. Within 2023, Viohalco companies signed a long-term Power Purchase Agreement (PPA), backed by various assets from Renewable Energy Sources (\u201cRES assets\u201d), in order to reduce its exposure to volatility in the energy prices.
Based on the initial agreement, the PPA provided for two distinct arrangements, comprising a physical delivery of electricity during the first two years (Period A), with a financial settlement of the difference between the fixed agreement price and the market electricity price, and for a virtual delivery of renewable electricity subsequently and to the end of the agreement (Period B), as produced by specified RES assets (i.e. photovoltaic facilities) yet to be constructed, with a financial settlement of the difference between the fixed agreement price for this subsequent period and the market electricity price. Period A of the PPA was assessed in accordance with IFRS 9 as an own-use agreement and was accounted for as an executory contract, while Period B of the initial PPA was assessed as comprising a derivative financial instrument, which was accounted for at fair value through profit or loss other comprehensive income.
In August 2024, an addendum to the initial contract was signed, altering effective from 15.03.2024, altering mainly the nature of the contract for Period B as well as the duration and the pricing for both period A and B. More Specifically, the delivery method in period B has been changed from virtual to physical delivery via injection and absorption declarations in the Day-Ahead Market, through an intermediary supplier, resulting in a physical delivery contract performed on similar terms as the existing one in period A.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__327": { "value": "31. Subsidiaries
Viohalco\u2019s subsidiaries and the percentages of financial interest held by the parent company at the end of the reporting period are as follows:
Subsidiary companies | Country | Financial interest 2024 | Financial interest 2023 |
AEIFOROS S.A. | GREECE | 98.11% | 98.11% |
AEIFOROS BULGARIA S.A. | BULGARIA | 98.11% | 98.11% |
ALURAME SPA | ITALY | 89.88% | 91.59% |
ANOXAL S.A. | GREECE | 84.78% | 84.78% |
A\u039d\u0391\u039c\u0395\u03a4 DOO | SERBIA | 97.54% | 97.54% |
A\u039d\u0391\u039c\u0395\u03a4 S.A. | GREECE | 97.54% | 97.54% |
A\u039d\u03a4\u0399\u039c\u0395\u03a4 S.A. | GREECE | 100.00% | 100.00% |
A\u03a4\u03a4\u0399\u039aI S.A. | GREECE | 75.00% | 75.00% |
BASE METALS S.A. | TURKEY | 67.86% | 69.15% |
BRIDGNORTH LTD | U.K | 100.00% | 100.00% |
CABLEL WIRES S.A. | GREECE | 84.78% | 84.78% |
CENERGY HOLDINGS S.A. | BELGIUM | 71.43% | 79.78% |
HELLENIC CABLES AMERICA CO. | USA | 71.43% | 79.78% |
CORINTH PIPEWORKS S.A. | GREECE | 71.43% | 79.78% |
CPW AMERICA Co | USA | 71.43% | 79.78% |
CPW SOLAR S.A. | GREECE | 71.43% | 79.78% |
CPW WIND S.A. | GREECE | 71.43% | 79.78% |
DE LAIRE LTD | CYPRUS | - | 79.78% |
DIA.VI.PE.THI.V S.A. | GREECE | 89.35% | 91.54% |
DOJRAN STEEL LLCOP | NORTH MACEDONIA | 93.31% | 92.56% |
EANEP ALMYROU SA | GREECE | 93.31% | 92.56% |
ELVAL COLOUR S.A. | GREECE | 84.78% | 84.78% |
ELVAL COLOUR IBERICA S.A. | SPAIN | 84.78% | 84.78% |
ELVALHALCOR S.A. | GREECE | 84.78% | 84.78% |
ELVIOK S.A. | GREECE | 84.78% | 84.78% |
EL\u039a\u0395\u039c\u0395 S.A. | GREECE | 83.78% | 84.40% |
EPIRUS METALWORKS S.A. | GREECE | 77.01% | 84.78% |
ERGOSTEEL S.A. | GREECE | 86.68% | 89.12% |
ERLIKON S.A. | GREECE | 100.00% | 100.00% |
ETEM BULGARIA S.A. | BULGARIA | 100.00% | 100.00% |
ETEM GESTAMP EXTRUSIONS S.A. | BULGARIA | 51.00% | 51.00% |
E\u03a4IL S.A. | GREECE | 100.00% | 100.00% |
FLOCOS S.A. | GREECE | 100.00% | 100.00% |
FULGOR S.A. | GREECE | 71.43% | 79.78% |
Subsidiary companies | Country | Financial interest 2024 | Financial interest 2023 |
GENECOS S.A. | FRANCE | 89.88% | 91.59% |
HELLENIC CABLES S.A. | GREECE | 71.43% | 79.78% |
HELLENIC CABLES TRADING CO. | USA | 71.43% | 79.78% |
HUMBEL LTD | CYPRUS | 71.43% | 79.78% |
ICME ECAB S.A. | ROMANIA | 71.42% | 79.76% |
INOS BALCAN DOO | SERBIA | 97.54% | 97.54% |
INTERNATIONAL TRADE S.A. | BELGIUM | 89.88% | 91.59% |
JOSTDEX LIMITED | CYPRUS | 100.00% | 100.00% |
LESCO ROMANIA S.A. | ROMANIA | 46.43% | 51.86% |
LESCO EOOD | BULGARIA | 71.43% | 79.78% |
METAL AGENCIES LTD | U.K | 89.88% | 91.59% |
METALCO S.A. | BULGARIA | 100.00% | 100.00% |
METALIGN S.A. | BULGARIA | 100.00% | 100.00% |
NOVAL PROPERTY REIC | GREECE | 68.77% | 81.09% |
NOVOMETAL DOO | NORTH MACEDONIA | 97.54% | 97.54% |
PORT SVISHTOV WEST S.A. | BULGARIA | 73.09% | 73.09% |
PRAKSIS S.A. | GREECE | 61.00% | 61.00% |
PRAKSIS BG S.A. | BULGARIA | 61.00% | 61.00% |
REYNOLDS CUIVRE S.A. | FRANCE | 89.88% | 91.59% |
SIDEBALK STEEL DOO | SERBIA | 100.00% | 100.00% |
SIDENOR INDUSTRIAL S.A. | GREECE | 100.00% | 100.00% |
SIDERAL SHRK | ALBANIA | 99.92% | 99.92% |
SIDEROM STEEL SRL | ROMANIA | 100.00% | 100.00% |
SOFIA MED AD | BULGARIA | 86.37% | 86.37% |
SOVEL S.A. | GREECE | 93.31% | 92.56% |
STEELMET CYPRUS LTD | CYPRUS | 86.68% | 89.12% |
STEELMET PROPERTIES S.A. | GREECE | 86.68% | 89.12% |
STEELMET ROMANIA S.A. | ROMANIA | 89.88% | 91.59% |
STEELMET S.A. | GREECE | 86.68% | 89.12% |
STEELMET FINANCIAL SERVICES S.A. | GREECE | 100.00% | 100.00% |
STOMANA INDUSTRY S.A. | BULGARIA | 100.00% | 100.00% |
STOMANA ENGINEERING S.A. | BULGARIA | 100.00% | 100.00% |
SYMETAL S.A. | GREECE | 84.78% | 84.78% |
TECHOR S.A. | GREECE | 84.78% | 84.78% |
TECHOR ROMANIA S.A. | ROMANIA | 84.78% | 84.78% |
TEPROMKC AG | GERMANY | 89.88% | 91.59% |
TERRA MIDDLE EAST AG | GERMANY | 89.88% | 91.59% |
T\u0395\u039a\u0391 SYSTEMS S.A. | GREECE | 100.00% | 100.00% |
VEPAL S.A. | GREECE | 84.78% | 84.78% |
VIENER S.A. | GREECE | 93.70% | 93.70% |
VIEXAL S.A. | GREECE | 95.94% | 95.94% |
VIOHALCO ENGINEERING S.A. (renamed from TEKA ENGINEERING S.A.) | GREECE | 100.00% | 100.00% |
VIOMAL S.A. | GREECE | 63.58% | 63.58% |
VITRUVIT S.A. | GREECE | 99.75% | 99.75% |
WAGNER POINT PROPERTIES LLC (renamed from Sparrows Point Properties LLC) | USA | 71.43% | 79.78% |
WARSAW TUBULARS TRADING SP.ZO | POLAND | 71.43% | 79.78% |
The ultimate controlling entity is Viohalco S.A. for all the above entities. Viohalco does exercise control, by holding the majority of the voting rights, directly and/or indirectly and these entities are reported as subsidiary companies.
The percentages reported on the above table represent the financial interest held directly and indirectly by Viohalco. For example, if Viohalco holds 70% of company A and company A holds 70% of company B, then in the table above it will be presented that Viohalco holds 49% of financial interest in company B.
Transactions that took place in 2024
During 2024, the subsidiary Sparrows Point Properties Holdings LLC was merged with Hellenic Cables Americas CO.
De Laire LTD was liquidated during 2024 and the dissolution of the company is expected within 2025.
Hellenic Cables Trading CO is currently under voluntary liquidation.
In November 2024, the subsidiary TEKA ENGINEERING S.A. was renamed to VIOHALCO ENGINEERING S.A.
", "dimensions": { "concept": "ifrs-full:DisclosureOfSignificantInvestmentsInSubsidiariesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__330": { "value": "32. Joint operations
During 2024, the following joint operations were formed:
Hellenic Cables has a 68.80% interest in a joint arrangement called Jan De Nul Luxembourg SA \u2013 Hellenic Cables SA Consortium Baltyk 2 sp\u00f3\u0142ka jawna, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, transport and install export cables for the Polish offshore wind farms Baltyk II. The principal place of business of the joint operation is in Poland.
Hellenic Cables has a 70.10% interest in a joint arrangement called Jan De Nul Luxembourg SA \u2013 Hellenic Cables SA Consortium Baltyk 3 sp\u00f3\u0142ka jawna, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, transport and install export cables for the Polish offshore wind farms Baltyk III. The principal place of business of the joint operation is in Poland.
Hellenic Cables has a 54.69% interest in a joint arrangement called Jan De Nul Luxembourg SA \u2013 Hellenic Cables SA Consortium Dolwin Kappa, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is the turnkey delivery of three HVAC offshore grid connection cables for the offshore wind farms to be developed in zones N-3.7 & N-3.8 in Germany. These cables will connect the wind farms to the DolWin Kappa convertor station, from where HVDC cables transfer the produced energy to shore. The principal place of business of the joint operation is in Germany.
The joint operations described below were formed during prior years:
Hellenic Cables has a 58.37% interest in a joint arrangement called Jan De Nul Luxembourg - Hellenic Cables Consortium \u2013 Thor Export Cables I/S, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, supply, transport, install and test the 275kV HVAC export cable system for the Thor Offshore Wind Farm. The principal place of business of the joint operation is in Denmark.
Hellenic Cables has a 38.24% interest in a joint arrangement called Jan De Nul Luxembourg - Hellenic Cables Consortium \u2013 Thor Array Cables I/S, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to design, manufacture, supply, transport, install and test the 66kV inter-array cable system for the Thor Offshore Wind Farm. The principal place of business of the joint operation is in Denmark.
Hellenic Cables has a 62.48% interest in a joint arrangement called VO Cablel VOF, which was set up as a partnership together with Van Oord. The scope of this joint operation scheme is to supply and install sea and land cables for the Hollandse Kust (South) Alpha project and Hollandse Kust (South) Beta project. The principal place of business of the joint operation is in the Netherlands.
Hellenic Cables has a 50.77% interest in a joint arrangement called DEME Offshore NL - Hellenic Cables V.O.F., which was set up as a partnership together with Tideway. The scope of this joint operation scheme is to execute a turnkey contract for the supply and installation of submarine cables for the connection of the Seamade offshore wind project to the Belgian grid. The principal place of business of the joint operation is in Belgium.
Fulgor has a 10.00% interest in a joint arrangement called Fulgor \u2013 JDN Consortium, which was set up as a partnership together with Jan De Nul. The scope of this joint operation scheme is to execute a turnkey contract for the installation of submarine cables for the interconnection Crete-Peloponnese in Greece. The principal place of business of this joint operation is in Greece.
Fulgor has a 70.27% interest in a joint arrangement called Fulgor \u2013 Asso.subsea Ltd Consortium, which was set up as a partnership together with Asso.subsea Ltd. The scope of this joint operation scheme is to execute a turnkey contract for the design, manufacturing, supply and installation of the 150 kV submarine cable system connecting the under construction 330 MW Kafireas II Wind Farm to Greece\u2019s mainland grid. The principal place of business of this joint operation is in Greece.
All the agreements stated above require unanimous consent from all parties for all relevant activities. The two partners have direct rights to the assets of the partnership and are jointly and severally liable for the liabilities incurred by the partnership. These entities are therefore classified as joint operations and the Group recognises its direct right to the jointly held assets, liabilities, revenues an expenses as described in note 5.1(g).
", "dimensions": { "concept": "ifrs-full:DisclosureOfJointOperationsExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__333": { "value": "33. Non-controlling interests
The following table summarises the information relating to each of the subsidiaries that have material NCI (at sub-group level in the cases of Cenergy, ElvalHalcor, Sidenor) before any intra-group elimination.
2024 | ||||||
Amounts in EUR thousands | Cenergy | ElvalHalcor | Sidenor | Other | Intragroup eliminations | Total |
NCI percentage | 28.57% | 15.22% | 0.00% | |||
Non-current assets | 937,562 | 1,117,725 | 321,989 | |||
Current assets | 1,353,747 | 1,189,470 | 396,017 | |||
Non-current liabilities | 333,281 | 6,664,297 | 303,220 | |||
Current liabilities | 1,258,209 | 708,917 | 365,060 | |||
Net Assets | 699,819 | 933,981 | 49,726 | |||
Attributable to NCI by the companies | 45 | 23,728 | 36,219 | 849 | ||
Net attributable to the equity holders & NCI of Viohalco | 699,774 | 910,254 | 13,507 | |||
Attributable to NCI by parent Company | 199,926 | 138,541 | - | 117,941 | ||
Carrying amount of NCI | 199,971 | 162,268 | 36,219 | 118,790 | -50,928 | 466,319 |
Revenue | 1,796,448 | 3,438,452 | 711,159 | |||
Profit / Loss (-) | 140,616 | 114,701 | -16,729 | |||
Other comprehensive income | -2,186 | -829 | 310 | |||
Total comprehensive income | 138,430 | 113,872 | -16,418 | 32,933 | ||
Attributable to NCI by the companies | 4 | 6,194 | -1,566 | -4 | ||
Net attributable to the equity holders & NCI of Viohalco | 138,426 | 107,677 | -14,853 | 32,938 | ||
Attributable to NCI by Viohalco | 31,238 | 16,388 | - | 2,980 | ||
Total OCI of NCI | 31,242 | 22,583 | -1,566 | 2,976 | -6,444 | 48,791 |
Cash flows from operating activities | 301,543 | 262,823 | -18,105 | |||
Cash flows from investing activities | -247,147 | -67,793 | -24,112 | |||
Cash flows from financing activities | 203,314 | -155,861 | 42,438 | |||
Net increase/ decrease (-) in cash and cash equivalents | 257,710 | 39,169 | 222 | |||
2023 | ||||||
Amounts in EUR thousands | Cenergy | ElvalHalcor | Sidenor | Other | Intragroup eliminations | Total |
NCI percentage | 20.22% | 15.22% | 0.00% | |||
Non-current assets | 706,611 | 1,111,140 | 316,675 | |||
Current assets | 1,117,962 | 1,076,881 | 387,851 | |||
Non-current liabilities | 288,273 | 781,430 | 317,799 | |||
Current liabilities | 1,145,807 | 568,055 | 319,448 | |||
Net Assets | 390,494 | 838,535 | 67,279 | |||
Attributable to NCI by the companies | 41 | 19,542 | 38,735 | |||
Net attributable to the equity holders & NCI of Viohalco | 390,452 | 818,993 | 28,545 | |||
Attributable to NCI by parent Company | 78,949 | 124,651 | - | |||
Carrying amount of NCI | 78,991 | 144,193 | 38,735 | 65,464 | -44,804 | 282,578 |
Revenue | 1,627,724 | 3,292,681 | 641,538 | |||
Profit / Loss (-) | 71,274 | 35,477 | -29,233 | |||
Other comprehensive income | -552 | -24,387 | -455 | |||
Total comprehensive income | 70,723 | 11,090 | -29,688 | |||
Attributable to NCI by the companies | 3 | 4,516 | -9,368 | |||
Net attributable to the equity holders & NCI of Viohalco | 70,719 | 6,574 | -20,320 | |||
Attributable to NCI by Viohalco | 14,299 | 1,001 | - | |||
Total OCI of NCI | 14,303 | 5,517 | -9,368 | 895 | 2,849 | 14,195 |
Cash flows from operating activities | 208,607 | 268,643 | 16,695 | |||
Cash flows from investing activities | -130,497 | -93,432 | -26,940 | |||
Cash flows from financing activities | -61,091 | -170,120 | -8,989 | |||
Net increase/ decrease (-) in cash and cash equivalents | 17,019 | 5,092 | -19,234 |
Share capital increase of Cenergy Holdings
On October 11, 2024, 22,222,222 new ordinary shares of no nominal value of Viohalco subsidiary, Cenergy Holdings, were issued at a price per new share of EUR 9.00. The new shares were offered in parallel through a public offer in Belgium and Greece and private placements to certain institutional investors in various jurisdictions. The total gross proceeds raised by Cenergy Holdings from the said offer, before deducting expenses, amounted to EUR 199,999,998.00 (22,222,222 new shares multiplied by the offer price of EUR 9.00). Out of this amount, EUR 13,776,762.15 was recorded as increase in the share capital of Cenergy Holdings based on the fractional value per share as per the company\u2019s\u2019 accounting records. The remaining amount of EUR 186,223,235.85 was recorded as increase in the share premium and the transaction costs for the share capital increase amounted to EUR 12,764,068.73 were recorded as a deduction in the share premium of Cenergy Holdings.
The share capital increase that recognized in Cenergy Holdings financial statements is described as follows:
Amounts in EUR thousands | Share Capital | Share Premium | Total |
Share capital increase | 13,777 | 186,223 | 200,000 |
Capitalized IPO costs | - | -12,764 | -12,764 |
Total | 13,777 | 173,459 | 187,236 |
Initial public offering of Noval Property REIC new shares
On June 5th, 2024, in the context of share capital increase and listing of Noval Property REIC, Viohalco subsidiary in Real Estate segment, commenced the trading of 126,431,958 ordinary, registered, dematerialized, voting shares, on the regulated market of Athens Exchange (i.e., the 107,467,164 existing ordinary, registered, dematerialized, voting shares, the 17,388,025 new ordinary, registered, dematerialized, voting shares from the Increase and the 1,576,769 ordinary, registered, dematerialized, voting shares resulting from the conversion of bonds of the common and under conditions mandatorily convertible into Company shares bond loan issued by the Company on 05.10.2023 and which are subscribed in their entirety by the EBRD).
The share capital increase from the initial public offering that recognized in Noval Property financial statements is described as follows:
Amounts in EUR thousands | Share Capital | Share Premium | Total |
Share capital increase | 43,470 | 4,869 | 48,339 |
Capitalized IPO costs | - | -4,544 | -4,544 |
Bond loan conversion | 3,942 | 441 | 4,383 |
Total | 47,412 | 766 | 48,178 |
35. Commitments
A. Purchase commitments
The below mentioned commitments relate to contracts that Viohalco\u2019s subsidiaries have entered into, according to their investment plans and are expected to be concluded during the next 3 years.
Amounts in EUR thousands | 2024 | 2023 |
Property, plant and equipment | 122,806 | 106,720 |
Investment property | 16,062 | 25,913 |
Intangible Assets | 65 | 53 |
B. Guarantees
Amounts in EUR thousands | 2024 | 2023 |
Liabilities | ||
Guarantees to secure liabilities to suppliers | 82,669 | 43,730 |
Guarantees for securing the good performance of contracts with customers | 801,899 | 610,065 |
Guarantees for securing the good performance of contracts with suppliers | 4,005 | 2,239 |
36. Contingent liabilities
A. Litigations & administrative reviews
Regarding Corinth Pipeworks\u2019 exports of large diameter welded pipe (LDWP) to the US for the periods May 1, 2021 - April 30, 2022, May 1, 2022 - April 30, 2023 and May 1, 2023 - April 30, 2024, no provision has been recorded in respect to antidumping duties due to the following facts:
For the period May 1, 2021 - April 30, 2022, the results of the administrative review published in Federal Register on December 22, 2023, imposed 0% dumping margin.
For the period May 1, 2022 - April 30, 2023, there were no sales to the US subject to antidumping duties; thus, no additional charge\u00a0is expected for that period.
For the period May 1, 2023 - April 30, 2024, there were no sales to the US subject to antidumping duties; thus, no additional charge\u00a0is expected for that period.
\u0392. Contigent tax liabilities
The tax filings of the subsidiaries are routinely subjected to audit by tax authorities in most of the jurisdictions in which Viohalco and its companies conduct business. These audits may result in assessments of additional taxes. Viohalco and its subsidiaries provide for additional tax in relation to the outcome of such tax assessments, to the extent that a liability is probable and estimable.
Viohalco companies believe that their accruals for tax liabilities are adequate for all open tax years based on their assessment of underlying factors, including interpretations of tax law and prior experience.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsAndContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__340": { "value": "35. Commitments
A. Purchase commitments
The below mentioned commitments relate to contracts that Viohalco\u2019s subsidiaries have entered into, according to their investment plans and are expected to be concluded during the next 3 years.
Amounts in EUR thousands | 2024 | 2023 |
Property, plant and equipment | 122,806 | 106,720 |
Investment property | 16,062 | 25,913 |
Intangible Assets | 65 | 53 |
B. Guarantees
Amounts in EUR thousands | 2024 | 2023 |
Liabilities | ||
Guarantees to secure liabilities to suppliers | 82,669 | 43,730 |
Guarantees for securing the good performance of contracts with customers | 801,899 | 610,065 |
Guarantees for securing the good performance of contracts with suppliers | 4,005 | 2,239 |
36. Contingent liabilities
A. Litigations & administrative reviews
Regarding Corinth Pipeworks\u2019 exports of large diameter welded pipe (LDWP) to the US for the periods May 1, 2021 - April 30, 2022, May 1, 2022 - April 30, 2023 and May 1, 2023 - April 30, 2024, no provision has been recorded in respect to antidumping duties due to the following facts:
For the period May 1, 2021 - April 30, 2022, the results of the administrative review published in Federal Register on December 22, 2023, imposed 0% dumping margin.
For the period May 1, 2022 - April 30, 2023, there were no sales to the US subject to antidumping duties; thus, no additional charge\u00a0is expected for that period.
For the period May 1, 2023 - April 30, 2024, there were no sales to the US subject to antidumping duties; thus, no additional charge\u00a0is expected for that period.
\u0392. Contigent tax liabilities
The tax filings of the subsidiaries are routinely subjected to audit by tax authorities in most of the jurisdictions in which Viohalco and its companies conduct business. These audits may result in assessments of additional taxes. Viohalco and its subsidiaries provide for additional tax in relation to the outcome of such tax assessments, to the extent that a liability is probable and estimable.
Viohalco companies believe that their accruals for tax liabilities are adequate for all open tax years based on their assessment of underlying factors, including interpretations of tax law and prior experience.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__345": { "value": "\u0392. Key management personnel compensation
The table below provides an overview of the transactions with Board members and executive management:
Amounts in EUR thousands | 2024 | 2023 |
Compensation to BoD members and executives | 6,188 | 5,802 |
The compensation to directors and executive management in the table above are fixed compensation. No variable compensation, post-employment benefits or share based benefits were paid in 2024 and in 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutKeyManagementPersonnelExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__346": { "value": "38. Auditor\u2019s fees
The Company\u2019s statutory auditor (PwC Reviseurs d\u2019Entreprises SRL/ Bedrijfsrevisoren BV) and a number of other member firms of the auditor\u2019s network, received fees for the following services:
\u00a0 | \u00a0 | \u00a0 | For year ended 31 December |
Amounts in EUR thousands | 2024 | 2023 | |
Statutory Auditor | |||
Audit | 369 | 358 | |
Other related services | 764 | 35 | |
\u00a0 | 1,133 | 393 | |
Statutory Auditor Network | |||
Audit | 1,002 | 1,159 | |
Tax related services | 383 | 213 | |
Other services | 201 | 269 | |
\u00a0 | 1,586 | 1,641 | |
Total | 2,719 | 2,034 |
39. Subsequent events
On March 6th, 2025, Viohalco\u2019s Board of Directors decided to propose to the Ordinary General Shareholders\u2019 meeting to be held on May 27th, 2025, the approval of a gross dividend of EUR 0.16 per share.
No other subsequent events for which disclosure is required in the Consolidated Financial Statements have occurred since 31 December 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s11__6__349": { "value": "0.16", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:549300U0BOLVY36TGJ31", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } } } }