This presentation should not be considered as an investment proposal or as a buy/sell suggestion 1

BETA Securities
Member of the Athens Stock Exchange
Memo
MYTIL.GA (MYTr.GA)/METKA.GA (METKAr.GA)

Thursday, January 23, 2014
Energy/EPC/Metallurgy

Company Description

Mytilineos Group is a diversified industrial holding
company, active in mining metal trading, EPC and
electricity generation. In the mining business it is active
mainly through Aluminium of Greece, the largest vertically
integrated aluminium company in SE Europe. Metka (50%
owned, listed on ATHEX) is emerging as an important
regional engineering company with a focus on turn-key
thermal power plants. Mytilineos is also one of the most
important players in the domestic electricity market
operating three thermal power plants with total capacity
of 1,200 MW.

Stock Data
Reuters Ric MYTr.AT
Bloomberg Code MYTIL.GA
Closing Price () 6.05
Market Cap 668,400,000
Number of shares 116,915,862
Free Float 63.0%
52 Week High 6.60
52 Week Low 3.38

Stock chart (52 weeks)
February March April May June July August September October November December 2014 February
(5.93000, 6.08000, 5.80000, 6.05000, +0.16000)

Relative Performance (52 weeks)
2013 February March April May June July August September October November December 2014 February
Performance (32.9670), Performance (28.3486)()

Analyst
Manos Chatzidakis
Head of analysis
Tel: +30 210 64.78.755
Mail: mchatzidakis@beta.gr

Annual meeting with analysts takeaways

Briefing
On 21-Jan-2014 we had the opportunity to attend Mytilineos Group presentation regarding
the evaluation of 2013 and the prospects of 2014. During the annual presentation the CEO
and chairman of the Group Mr. Mytilineos referred to various issues covering all segments of
interest of the group activities: In specifics:

EPC Sector (METKA)
METKA is seeking new projects in Northern Africa while Syria 700m budgeted project is
highly likely very possible to restart in 2014. Recall that the recently awarded project of
226m in Greece regarding Ergose is funded by "ESPA EU subsidised thus effectively
reducing receivables risk. The devaluation of the Turkish lira is a not considered as a major
threat for the Group since it has completed the projects in Turkey while any other project
that may be awarded in the future will be US dollar denominated. Management expects a
strong year across all lines while METKA remains the cash cow of the Group with an
estimated Net Cash position of 200mn at the end of 2013, which could lead to generous
dividends or capital returns.. We expect positive developments in the near term regarding
new projects in Libya, Algeria and Iraq.

Energy Division
Energy segment will post satisfactory results as during the 9M13 period electricity demand
was strong in Greece while in Q4 the group will receive higher capacity certificates. Energy
demand in 2014 should be slightly increased in the 0-2% range with better outlook for SMP
(system marginal prices) while lower cost of natural gas should benefit energy production. A
reduction in supply prices from Gazprom will have a positive effect on EBITDA by c. EUR20m
while a retroactive application of the reduced price could generate significant one-off gains
between 15m - 60m subject to the retroactive period taken into account (6,12 or 18
months). In the investment front the Group plans to install another 70MW of wind capacity
during the next two years.

Aluminium of Greece (AoG)
Aluminium of Greece has completed c. 90% of the mellon project lowering operating cost
by $125m setting a new cost production equilibrium at 1,800 1,850 $/tn. New tariff
agreement with PPC remains a key issue as management seems quite sceptical to continue
its smelting business if significant higher tariffs will be applied by PPC. Low prices in LME are
offset by higher premiums (currently at 300 400 $/tn). Optimism regarding LME prices is
justified by increased global demand due to developments related to new applications in the
auto industry, which will involve the use of more Aluminium in the construction process. We
consider increased capacity to 185,000 tons (plus10,000 tons) in 2014 as a positive catalyst,
which along with serious cost cutting efforts could increase divisional EBITDA to 90m from
20m in 2013. Finally, AoG has extended Glencore contract thus securing a significant
amount of dry alumina and aluminium production (~30%) at a10% premium vs. LME spot
prices.

Debt Bond Issuance
. Following the sale of a 5% stake that was classified as treasury stock and a 6% stake of
Metka to Fairfax Groups Net Debt was effectively reduced at 500m. Management targets a
Net Debt/EBITDA ratio of 1-2x for 2014.. A floated bond issue is in the cards this year only if
it makes financial sense as average interest for the Group stands at 6.5%. A lower six in
our opinion could trigger a bond issuance that would be used for the refinancing of 250-
300m of existing debt.

View
Management stated that 2013 annual results will be broadly in line with consensus
(Turnover: 1.54bn, EBITDA 250m, Net 77.7m). Going forward we see lower
risks ahead as METKA is being awarded new projects with high margins while
Metallurgy has strong potential to take advantage of lower operational costs.
Strong international presence (85% of AoG sales and 80% of METKA projects)
offer geographical diversification while the recent arbitration ruling with PPC
provides a good base for a new tariff agreement. We are buyers at current levels
and we like both listed entities as they provide better visibility and improved
environment for 2014.


This presentation should not be considered as an investment proposal or as a buy/sell suggestion
Disclosure Appendix

RESPONSIBLE ENTITY
Responsible Entity: Beta Securities
Research Analysts: Manolis Chatzidakis Certified Equity Analyst
Authority: Hellenic Capital Market Committee.

Analyst Certification
Analysts identified in this report hereby certify that:
() All the views about the companies and securities contained in this report accurately reflect our personal views
(b) No part of our compensation was or will be directly or indirectly related to the specific recommendations or views in thi
research analysts strategists or research associates principally responsible for the preparation of this research report may
of work stock picking, client feedback, experience and overall firm pr
investment banking services provided by Beta Securities and its affiliates
Probable Conflict of Interest
Beta Securities or its employees and directors may have a position
take into account that Beta Securities might have a conflict of interest that could influence the integrity of the research
investment decisions taken out from this report.
Important Disclosures
The content of the research has not been sent to the above mentioned listed enterprises
Equity Analysts in order to provide the best analysis for the companies mentioned in
domestic and international press.
Beta Securities will issue equity reports according to companies mentioned in this report news
The opinions, judgments and estimates in this report express the view of each equity analyst on that date and are subject to change without
All equity research reports are written by the equity research department with absolute discretion without the
company and released at the same time to both the public and the company
The information contained in these reports and any opinion expressed
securities or any opinions, futures or other derivatives related to such se
obtained from sources that Beta Securities believes to be reliable we do not guarantee its
condensed.
Share Prices
The aforementioned prices and related financial ratios regard the closing price of the previous day
Definition of risk
Risk analysis: We evaluate risk based on fundamental analysis share price volatility and past forecasting experience
low risk, medium risk and high risk.
Definition of Investment ratings
Outperform: The stock is expected to perform more than 10
Neutral: The stock is expected to perform between
Underperform: The stock is expected to perform less than 10






Research Department Institutional Sales

Manos Chatzidakis Petros Papathanasiou
210-64.78.755 210-64.78.764
mchatzidakis@beta.gr petrosp@beta.gr

Iakovos Kourtesis Vaggelis Charatsis
210-64.78.760 210-64.78.920
Iakovos.kourtesis@beta.gr xaratsisv@beta.gr

Kontogouris Andreas
210-64.78.777
andreask@beta.gr

Konstantinos Makris
210-64.78.982
makris@beta.gr

Sotiropoulou Frideriki
210-64.78.792
f.sotiropoulou@beta.gr



Beta Securities S,A,
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should not be considered as an investment proposal or as a buy/sell suggestion
Chatzidakis Certified Equity Analyst Iakovos Kourtesis, Certified Equity Analyst.
) All the views about the companies and securities contained in this report accurately reflect our personal views
(b) No part of our compensation was or will be directly or indirectly related to the specific recommendations or views in this report
research analysts strategists or research associates principally responsible for the preparation of this research report may depend on various factors such as quality
experience and overall firm profitability. The remuneration of analysts referred on the first page does not relate to any
investment banking services provided by Beta Securities and its affiliates.
position; make markets or engage in any of the securities mentioned herein
take into account that Beta Securities might have a conflict of interest that could influence the integrity of the research. Beta Securities is not respo
The content of the research has not been sent to the above mentioned listed enterprises.
Equity Analysts in order to provide the best analysis for the companies mentioned in this report may make company visits
Beta Securities will issue equity reports according to companies mentioned in this report news, announcements, developments and market conditions
judgments and estimates in this report express the view of each equity analyst on that date and are subject to change without
All equity research reports are written by the equity research department with absolute discretion without the participation of other departments of the
company and released at the same time to both the public and the company.
The information contained in these reports and any opinion expressed does not constitute an offer or an invitation to make an offer to buy o
futures or other derivatives related to such securities (related investments).Although the information in this report has been
obtained from sources that Beta Securities believes to be reliable we do not guarantee its accuracy or fairness and such information may be incomplete or
The aforementioned prices and related financial ratios regard the closing price of the previous day.
fundamental analysis share price volatility and past forecasting experience. We distinguish risk into three levels:
Outperform: The stock is expected to perform more than 10.0% relative to the General Index in the next 12 months.
10.0% and +10.0% relative to the General Index in the next 12 months
Underperform: The stock is expected to perform less than 10.0% relative to the General Index in the next 12 months.
International Stock Markets
Nicholaos Ritsonis
210-64.78.928
ritsonisn@beta.gr
Konstantinos Boukas
210-64.78.995
kboukas@beta.gr
Panos Biniaris
210-64.78.926
biniaris@beta.gr




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should not be considered as an investment proposal or as a buy/sell suggestion 2
s report. The compensation of the
depend on various factors such as quality
The remuneration of analysts referred on the first page does not relate to any
make markets or engage in any of the securities mentioned herein. Investors therefore should
Beta Securities is not responsible for
this report may make company visits, access to the internet or read
developments and market conditions.
judgments and estimates in this report express the view of each equity analyst on that date and are subject to change without warning.
participation of other departments of the
constitute an offer or an invitation to make an offer to buy or sell any
Although the information in this report has been
accuracy or fairness and such information may be incomplete or
We distinguish risk into three levels:
0% relative to the General Index in the next 12 months.
Derivative Sales
Nick Zacharopoulos
210-64.78.946
zaxaropoulos@beta.gr
EviTreka
210-64.78.786
e.treka@beta.gr

Michalis Tzavlas
210-64.78.758
tzavlas@beta.gr