Ready for the Shift
Annual Report 2021
Ready for the Shift
Annual Report 2021
1
Table of Contents
Message from the Chairman
Segments & Companies
Key Figures 2021
Financial highlights of the year
Group nancial review
Outlook
Segments’ Activities & Outlook
Cables
Steel pipes
Subsequent events
Risks and Uncertainties
Non-Financial Information
Business Model
ESG Roadmap
Sustainability Governance
Materiality Assessment &
Performance
Management of Non-Financial Risks
4
6
10
11
12
13
15
16
28
40
42
49
51
52
52
55
64
Corporate Governance Statement
Board of Directors
Executive management
Remuneration policy
External Audit
Risk Management and Internal Audit
Shareholders’ Structure
Consolidated Financial Statements
2021
Statutory Auditor’s Report
Declaration of responsible persons
Condensed Statutory Financial
Statements
Alternative Performance Measures
EU Taxonomy Reporting Principles
Information to our Shareholders
Glossary
69
70
76
77
82
82
84
87
166
170
171
173
177
180
181
2
Cenergy Holdings S.A.
Cenergy Holdings S.A. (“Cenergy Holdings”, “the
Company”, or “the Holding”) invests in industrial
companies positioned at the forefront of high growth
sectors, such as energy distribution and
telecommunications.
Based in Belgium, the Company was founded in 2016
and is listed on Euronext Brussels and the Athens Stock
Exchange (Athex).
Cenergy Holdings is a subsidiary of Viohalco S.A., a
holding company of several leading metal processing
companies across Europe. Viohalco’s subsidiaries
specialise in the manufacture of aluminium, copper and
steel products, steel pipes and cables, as well as other
technologically advanced industrial applications. They
have production facilities in Greece, Bulgaria, Romania,
the United Kingdom, North Macedonia, Russia and Turkey.
The Management Report attached to the Consolidated
Financial Statements (Rapport de Gestion sur les Comptes
Consolidés), prescribed by article 3:32 of the Belgian
Code of Companies and Associations (the “BCCA”),
includes the regulatory disclosure obligations of the
Company and consists of the following sections:
Business Review (pages pages 6-47);
Non-nancial information (pages 48-67);
Corporate Governance Statement (pages 69-85).
The Management Report should be read in conjunction
with Cenergy Holdings’ audited consolidated nancial
statements.
3
The companies in Cenergy Holdings’ portfolio:
provide value
added
products
for niche
markets
employ more
than 2,200
highly skilled
people
have a long
history of
implementing
large-scale
projects
in more than
70 countries
have served
major
customers
worldwide
for nearly 70
years
70
invest more
than €450
million in the
last 10 years
€
Message from the Chairman
4
Dear Shareholders,
Following a difcult year 2020, it is with great joy
and satisfaction that 2021 found Cenergy Holdings
back on its successful course, having overcome
the pandemic turmoil and demand adversity. The
strong sales and operational performance of the
nancial year (over the EUR 100 million threshold
for a second consecutive year) conrms our ability
to keep moving ahead and foster further the
energy transition paradigm by offering quality
products to our partners across the globe.
In the cable sector, the good momentum of 2020
continued with complete production programs in
all factories and smooth execution of the projects
we had undertaken. The high demand for new
submarine projects in Europe and America has led
to signicant new awards leading the order
backlog to historically high levels (more than EUR
1 billion for the whole Group). In addition,
increased demand in the products business has
contributed further, supporting our overall sales
volume and sound performance. In the highly
competitive environment in which the cable
industry operates, our ambition is to play a central
role, as innovation leaders, in the processes of
energy transition and digitization.
On the other hand, the passing year raised some
intense challenges for Corinth Pipeworks: the
vertical decline in 2020 of consumption and of
energy prices led to the suspension of many
research and drilling projects in the fossil fuel
sector and accelerated our plans for a business
model alternative. We are positively switching
towards the new energy markets, with a focus on
hydrogen-ready networks and offshore floating
wind farms, without, of course, neglecting natural
gas which is the main intermediate fuel in the
global energy transition. On top of this
changeover, we faced a negative surprise from
the US Commerce Department’s verdict on
antidumping duty rates, a decision that cost us
more than USD 14 million but one we will fight on
the Courts of Law.
The geopolitical crisis and the war currently
affecting Ukraine maintain our full attention. From
the very first days, we have checked that no one
is at risk and have taken all the necessary
measures to protect industrial and commercial
activities in this region of Europe.
In 2022, we keep exploring possible collaborations
in Europe and overseas, especially in the offshore
wind sector that shows a very strong potential. My
estimate is the unfavorable period for the
international pipe industry is coming to an end and
this optimism is attested by the strong steel pipes
orders that keep coming in. Although we remain
prudent in our management style, I am convinced
we will achieve steady growth and satisfactory
margins in 2022. Our companies have shown in the
recent past that they always look ahead with
condence, with sustainability as their compass,
towards a path with a strong outlook.
Xavier Bedoret
Chairman of the Board of Directors
5
6
Cenergy Holdings’ companies provide turnkey solutions and services to a large number of clients in the energy,
telecommunications and construction sectors. With signicant experience implementing large-scale projects globally and
a strong focus on customer satisfaction, the companies are considered to have a leading role in their respective sectors.
Cenergy Holdings’ portfolio operates under the following organisational structure which comprises two business
segments:
Segments & Companies
Cables segment:
• Hellenic Cables S.A. (“Hellenic Cables”), one of the
largest cable producers in Europe, manufacturing
power and telecom cables for various sectors
including oil and gas, renewables, energy
transmission and distribution, construction and
telecommunications.
• Fulgor S.A. (“Fulgor”), a subsidiary of Hellenic
Cables, which manufactures submarine cables
(ranging from medium to extra high voltage),
submarine bre optic cables, composite cables,
special purpose cables, and copper and aluminium
wires and rods.
• Icme Ecab S.A. (“Icme Ecab”), which manufactures
cables for indoor installations, energy, control,
industrial and external applications, low and
medium voltage, re-retardant, re-resistant and
halogen-free cables, mine cables, marine and
special-requirement cables, telecommunication
cables, signalling, remote control and data
transmission cables, copper and aluminium
conductors, and plastic and rubber compounds
• Lesco O.o.d. (Bulgaria), a subsidiary of Hellenic
Cables, located in Bulgaria producing wooden
packaging products.
• Lesco Romania S.A., based in Bucharest, Romania,
assembles, repairs, and recycles wooden packaging
products.
• De Laire Ltd, incorporated in Cyprus, an acquisition
vehicle (holding company).
• Hellenic Cables Trading, a wholly owned subsidiary
of Hellenic Cables, providing US customers with
direct support and expertise throughout the entire
lifetime of energy projects in the US market.
• Hellenic Cables Americas is a new wholly owned
subsidiary, recently established in USA.
7
Steel pipes segment:
• Corinth Pipeworks Pipe Industry S.A. (“Corinth Pipeworks”, CPW) is a leading manufacturer of steel pipes
for the oil and gas sector and a major producer of hollow sections for the construction sector, with
production facilities located in Thisvi, Greece.
• CPW America is based in Houston, USA and aims to promote Corinth Pipeworks’ products and provide
customer service to the Group’s customers, as well as to customers of other Viohalco companies located
in North and South America.
• Warsaw Tubulars Trading, incorporated in Poland, an acquisition vehicle.
• AO TMK-CPW is an associate company of Cenergy Holdings (49% ownership), formed between Corinth
Pipeworks and TMK, manufacturing pipes and hollow structural sections.
• Humbel Ltd. is a Cenergy Holdings 100% subsidiary, incorporated in Cyprus and holding 49% of shares in
AO TMK-CPW.
8
Cenergy Holdings Business segments
CPW America
Hellenic
Cables
Icme
Ecab
Lesco
Romania
De Laire
Fulgor Lesco
Hellenic
Cables
Trading
Cables
Steel
pipes
Corinth Pipeworks Humbel
Warsaw Tubulars Trading DIA.VI.PE.THIV. AO TMK-CPW
Hellenic
Cables Americas
9
Notes:
* Consolidated as equity accounted investees.
** Non-consolidated entities (other signicant investments)
*** On January 6, 2022 the subsidiary C-Energy Americas Co. was renamed to Hellenic Cables Americas Co.
AO TMK-CPW*
(49%)
Warsaw Tubulars
Trading (100%)
Corinth
Pipeworks
(100%)
Humbel
Ltd
(100%)
Hellenic
Cables
Industry
(100%)
Steelmet*
(29.56%)
International
Trade*
(20.50%)
Noval
Property**
(1.87%)
Icme
Ecab
(99,98%)
Hellenic
Cables
Americas***
(100%)
De Laire
(100%)
Hellenic
Cables
Trading
(100%)
LESCO
(100%)
Fulgor
(100%)
DIA.VI.PE.THIV.*
(26.19%)
CPW America
(100%)
In detail:
Belleville Tube
Company*
(19.4%)
Lesco
Romania
(65%)
10
Key Figures 2021
Revenue (in EUR million) Per segment:
2017
758
2021 2020
The companies in Cenergy Holdings’ portfolio:
• have a long history of implementing large-scale
projects in more than 70 countries;
• have served major customers worldwide for
nearly 70 years;
• invest more than €450 million in the last 10 years
• provide value-added products for niche markets;
and
• employ more than 2,200 highly skilled people.
➢ Revenue: €1,054 million
➢ Adjusted EBITDA: €104 million
➢ Adjusted EBIT: €78 million
➢ Prot before tax: €31 million
➢ Prot after tax of the year from continuing
operations: €22 million
➢ Equity: €278 million
➢ Total assets: €1,206 million
➢ Net debt: €264 million
964
958
908
1,054
2018
2019
2020
2021
Cables Steel Pipes
824 230
Cables Steel Pipes
600 308
78%
a-EBITDA (in EUR million) Per segment:
2017
57.4
2021 2020
61.0
90.1
102.0
104.1
2018
2019
2020
2021
Cables Steel Pipes Cables Steel Pipes
88.6
16.0
81.0
21.7
22%
66%
34%
11
Financial highlights of the year
In 2021, despite the continued impact of the Covid-
19 pandemic in the global supply chain, Cenergy
Holdings achieved a robust performance.
Throughout the year, the Group maintained the
health and wellbeing of its people at the top of its
priority list with a concrete set of relative policies
and measures, and secured a strong portfolio of
orders in order to keep its production schedule
undisrupted. As a result, Cenergy Holdings
outperformed itself in operational protability,
absorbing any negative impact from external,
unexpected events, while attaining a new record-
low net debt level.
More specically, operational protability (adjusted
EBITDA) for a second consecutive year exceeded
the threshold of EUR 100 million, 2% higher than
2020, while tendering successes persisted bringing
total backlog over EUR 1 billion as of December
31st, 2021.
In the
cable segment, the good momentum endured
throughout 2021 and the cable companies brought
in positive prots, with solid growth across both the
projects and the products businesses. All plants
maintained a full production schedule during the
year, facilitating the smooth execution of important
projects and improving a-EBITDA by 9%. At the
products Business Unit, sales volume increased as
well due to an upturn in demand and the Unit’s
successful commercial strategy as expressed by
initiatives to enter new geographical markets and
establish strategic relationships with clients and
partners. Finally, the ongoing investment program
in the submarine cables plant in Corinth to further
enhance the inter-array cables capacity continued
during the year and is now almost complete.
On the other hand, 2021 was again a challenging
year for the steel pipes segment. The energy
market rebounded strongly after an unprecedented
decline in energy consumption and prices due to
the pandemic, which, combined with the
postponement or cancellation of several fossil-fuel
distribution projects, saw energy prices climb to
very high levels. A number of pipeline projects
restarted in the second half of 2021 with natural gas
remaining the main intermediate fuel in the global
energy transition. The year, however, closed with a
negative surprise, from the US Commerce (DoC)
decision concerning the antidumping duty rate on
large diameter welded pipes, affecting current
year’s results by ca. EUR 12.8 million (USD 14 million
plus interest).
12
Consolidated revenue for 2021 stands at EUR
1,054 million, a 16% y-o-y increase reecting the
growth in volumes sold in cables segment and the
impact of higher metal prices while turbulent
times in the steel pipes business restrained
Group’s revenue.
Adjusted EBITDA increased by 2% y-o-y to EUR 104
million. The cables segment achieved a
substantial rise in operational prots for the third
consecutive year, from EUR 65 million in 2019 to
EUR 81 million in 2020 reaching EUR 89 million in
2021 (3-year compound annual growth: 17%), a
success covering the decline in steel pipes (from
EUR 22 million in 2020 to EUR 16 million this
year). Overall, the a-EBITDA margin remained at
high levels reaching approx. 10%, despite revenue
ination due to increased raw materials prices.
Net nance costs declined by EUR 2.7 million (9%
y-o-y, to EUR 29 million), as lower interest rates
and tighter working capital management in both
segments kept net interest and related costs down.
The strong protability was clearly impacted by
the one-off, extraordinary EUR 12.8 million
provision for the DoC decision. Thus, prot
before income tax fell to EUR 30.5 million, (14%
lower than 2020), dragging also prot after tax
for the period slightly down to EUR 22.1 million,
from EUR 24.9 million in 2020 (2.1% of revenue vs.
2.7% in 2020).
Amounts in EUR FY 2021 FY 2020
Earnings per share 0.11610 0.13106
Group nancial review
Table 1: Protability Analysis
1
Amounts in EUR thousand FY 2021 FY 2020
Revenue 1,054,203 908,417
Gross prot 108,673 103,513
Gross prot margin (%) 10.3% 11.4%
a-EBITDA 104,140 101,995
a-EBITDA margin (%) 9.9% 11.2%
EBITDA 85,203 91,315
EBITDA margin (%) 8.1% 10.1%
a-EBIT 78,435 77,923
a-EBIT margin (%) 7.4% 8.6%
EBIT 59,498 67,244
EBIT margin (%) 5.6% 7.4%
Net nance costs (28,985) (31,640)
Prot before income tax 30,513 35,604
Prot after tax for the year 22,079 24,922
Net prot margin (%) 2.1% 2.7%
Prot attributable to owners 22,077 24,923
1. Source: Consolidated Statement of Prot or Loss and Alternative Performance Measures
13
Table 2: Consolidated Statement of Financial Position (Simplied)
Amounts in EUR thousand 31 Dec 2021 31 Dec 2020
ASSETS
Property, plant and equipment 476,458 457,937
Intangible assets 31,254 29,323
Equity - accounted investees 36,431 34,539
Other non-current assets 15,622 17,089
Non-current assets 559,765 538,889
Inventories 284,025 213,192
Trade and other receivables 132,040 112,872
Contract assets 98,217 64,875
Cash and cash equivalents 129,606 81,035
Other current assets 2,298 1,129
Current assets 646,185 473,103
TOTAL ASSETS 1,205,950 1,011,992
EQUITY 277,541 254,887
LIABILITIES
Loans and borrowings 174,941 174,625
Lease liabilities 2,080 3,681
Deferred tax liabilities 38,382 32,359
Other non-current liabilities 28,615 29,151
Non-current liabilities 244,017 239,816
Loans and borrowings 215,699 231,592
Lease liabilities 1,216 1,752
Trade and other payables 422,622 249,092
Contract liabilities 26,009 30,196
Other current liabilities 18,846 4,657
Current liabilities 684,392 517,289
TOTAL LIABILITIES 928,409 757,105
TOTAL EQUITY & LIABILITIES 1,205,950 1,011,992
Though both segments possess modern and
efcient plants, the Group continued its
investment programmes in its subsidiaries to
timely serve orders received and safeguard future
growth. Total capital expenditure for 2021 reached
EUR 44.5 million, split between EUR 35 million for
the cables segment and EUR 9.5 million for the
steel pipes. Furthermore, some of the new capital
expenditure plans of companies have already
been selected for inclusion under national
investment incentives schemes as provided by the
relative legislation.
Working capital (incl. contract assets & liabilities)
decreased signicantly to EUR 41 million on
December 31st, 2021, down by 59% y-o-y (EUR
100 million on 31.12.2020). This was the outcome
of the strict working capital management in both
segments i.e. a negotiation of better payment
terms with supply chain partners as well as closer
monitoring of raw material purchases and on-time
successful completion of project milestones. The
future evolution of working capital will depend on
the timing of both prepayments and milestone
payments of energy projects as well as the
evolution of raw material prices.
Consequently, net debt fell to new record-low
levels (EUR 264 million on December 31st, 2021),
down by EUR 66 million from the 31.12.2020 level
(EUR 331 million), further proving the Group’s
commitment to deleveraging.
Outlook
Overall, Cenergy Holdings looks ahead to a positive
year, with steady revenue supporting operational
margins, while its companies’ solid structure and
advanced technology offer condence for long-
term sustainable growth.
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15
Segments’
Activities & Outlook
16
Cables
Activities
The cables segment of Cenergy Holdings is made
up of three companies, hereafter collectively
referred as Hellenic Cables:
1. Hellenic Cables Industry S.A. (hereafter
“Hellenic Cables Industry”) and its subsidiary
Fulgor S.A. (hereafter “Fulgor”), operating in
Greece, and
2. Icme Ecab S.A. (hereafter “Icme Ecab”),
operating in Romania.
Hellenic Cables is globally active in the energy
transmission and distribution markets in the
renewable energy sources (RES),
telecommunications and data transmission,
construction and industry sectors, and is
distinguished for its strong exports orientation.
Hellenic Cables is an approved supplier of the
largest electricity Transmission System Operators
(“TSOs”) globally and operates one of the largest
and most advanced submarine cable plants in the
world, located in Corinth, Greece. Ever since its
beginning, Hellenic Cables has adopted modern
technologies to develop a wide range of innovative
cable solutions, aiming to provide competitive,
cutting-edge products and services targeting
international markets.
The product range includes a variety of cables and
wires addressing different market demands. It
consists of submarine and land cables, low, medium,
high and extra high voltage power cables, umbilicals,
bre optic, data, signalling and telecommunication
cables as well as exible subsea pipes.
Submarine cable systems
Low, medium, high and extra - high voltage
submarine cables for island and wind farms
interconnection
HVDC Cables
High-voltage direct current for offshore and
onshore interconnections
High and extra-high power
cables
High and extra - high power
cables for onshore
interconnections in the
transmition networks
Power ditribution cables
Low and medium voltage for
power distribution
Energy
Wind farm cables
Low, medim and high voltage cables for
wind farm applications.
Industrial cables
Low, medium and high voltage
cables, as well as control cables
for industrial applications.
Railway cables
Low, medium and high voltage
cables, such as signalling and
railway signalling cables.
Industrial application
Network Cables
Optical bre cables FTTH cables
(Fibre To The Home)
Telecommunications and data transmission
17
Hellenic Cables Industry has more than 70 years of
experience in the manufacture of power and
telecom cables and owns two plants in Greece,
located in Thiva and Oinofyta. It manufactures land
power cables, ranging from low to extra high
voltage, and telecom cables, all individually tailored
to customers’ specications.
Fulgor was established in 1957 and was acquired by
Hellenic Cables in 2011. Over the past sixty years,
Fulgor has installed a large proportion of all power
and telecommunications networks and most
submarine cable links in Greece. Its plant
manufactures submarine cables (ranging from
medium to extra high voltage), submarine bre
optic cables, composite cables, special purpose
cables, and copper and aluminium wires and rods.
An intensive capital investment program in the last
few years has enabled Fulgor to successfully
implement cost-effective, reliable and innovative
solutions in complex turnkey projects and won it a
leading position in the submarine cable
manufacturing market and in the global offshore
energy industry.
Icme Ecab, with over 50 years’ experience in the
Romanian and international cable markets, joined
Hellenic Cables companies in 1999. It has a diverse
product portfolio, focusing on cables for indoor
installations and selling both to the local and
international markets, either through the Hellenic
Cables network or directly to end customers.
Cables segment’s clients include E.ON, Vattenfall,
Tennet, Energinet, Ørsted, Enel, DEME, Tideway, Van
Oord, ENBW, SSE, Iberdrola, Electricity Northwest,
Terna, Alliander, Koncar, DEWA, HEDNO, ADMIE
(IPTO), EAC Cyprus, Litgrid, Sonelgaz, Takreer,
Motor Oil, Hellenic Petroleum, Carillion, Semco
Maritime, Aktor, Metka, ABB, Schneider Electric,
Landis+Gyr, Siemens, Hyundai, Sagem, Thales,
Vivacom, Vodafone, Cyta, DNO, Cosmote, GO
(Malta), Armentel, Santerne, ALSTOM Transport,
Bombardier, Siemens, Network Rail (U.K.), OSE
(Greece), Attiko Metro (Greece), and TE
connectivity (Belgium).
Corporate strategy
The strategic objectives that guide the operational
activities of the companies comprising the Cables
segment are as follows:
• Continuously develop high added value
products and services such as high and extra
high voltage submarine and underground
cables as well as installation services and
turnkey solutions;
• Diversify geographical footprint in dynamic
regions such as Europe and the USA. These are
markets which invest heavily in the
development of power and telecommunication
networks and in renewable energy projects;
• Maintain high levels of productivity by further
rationalising the cost base, enforcing stricter
inventory management and further improving
the operational performance of the production
units;
• Further improve liquidity through prudent
working capital management; and
• Preserve focus on human capital and on the
sustainable development of its companies.
Hellenic
Cables
Icme
Ecab
Hellenic
Cables
Americas
De Laire
Fulgor Lesco
Hellenic
Cables
Trading
Cables
Lesco
Romania
18
Product portfolio
Hellenic Cables offers a wide range of submarine
and land power cables (from low to extra high
voltage), installation services and turnkey solutions
for power grids, interconnections, offshore and
onshore wind, solar energy, oil and gas and heavy
industries. Hellenic Cables also produces
telecommunication and data transmission cables,
gauging and control cables, optical bre cables
(submarine, single-mode and multi-mode),
signalling and railway signalling cables, etc.
Turnkey solutions
Over the last years, Hellenic Cables has moved
beyond being a pure supplier of cable products for
diverse applications and has evolved into Service
Provider with the capability to manage and deliver
full turnkey projects, both onshore and offshore. To
do so, Hellenic Cables has established a dedicated,
in-house Project Management Ofce which
employs highly skilled personnel and experienced
subcontractors to accommodate the supply and
installation of medium to extra high voltage
submarine cable systems, repeaterless optical bre
submarine cable systems, underground power and
composite power with rated voltage up to 400kV
and optical bre underground systems.
Their capabilities include:
• Provision of installation services, for
underground high and very high voltage cable
interfaces, as well as for all Hellenic Cables’
submarine cables.
• Repairs and replacements of underground
interconnection systems for high voltage cables, as
well as submarine and bre optic cable systems.
• OEM (Original Equipment Manufacturer)
services, including design, production and
packaging.
• Custom-adapted applications for the optimal
implementation of already installed systems.
• Supervision services, for products provided by
third parties, especially during the installation of
underground and submarine cables.
• Technical support, in matters of design,
maintenance solutions for underground and
submarine cables, post-installation support, etc.
• Transport and storage services, for all types of
Hellenic Cables products.
• Training and informing customers’ staff either
via Hellenic Cables’ experienced and specialized
staff or through renowned consulting
companies and technical consultants.
• Provision of backup materials, such as spare
parts for the maintenance of installed energy
and telecommunications systems, throughout
the life of each designed interconnection.
Production and port facilities
Having invested signicantly in the expansion and
improvement of its manufacturing facilities, Hellenic
Cables and its subsidiaries operate an effective
production base comprising three plants in Greece,
one in Romania and one in Bulgaria:
• Thiva, Greece | Power and Optical Fibre Cables
plant
Annual production capacity: 60,000 tonnes
The Thiva plant, owned by Hellenic Cables, covers a
total surface area of 175,082 m
2
, including 53,237 m
2
of building facilities. It specialises in the production
of land power and telecommunications cables.
• Corinth, Greece |Submarine Cables plant and
port
Annual production capacity: 50,000 tonnes of
cables
The plant, owned by Fulgor, is located in Sousaki,
Corinth, on a 210,732 m
2
land plot, with a covered
area of 97,957 m
2
facilities (incl. copper and
aluminium foundries). Following the
implementation of an extensive investment plan
during the last decade, the plant is now one of the
most advanced factories in the world for high and
extra high voltage submarine cables. Among its
many unique advantages is vertical integration
through in-house production of copper and
aluminium wire rod, the production of submarine
cables up to 500 kV in very long continuous
lengths, direct loading on board cable-laying
vessels at plant’s own port, accessible all year
around and one of the highest storage capacities in
the world. During the last years, emphasis was
placed on completing the inter-array cable
production investments, thereby enabling offshore
wind farms to produce sufcient and stable energy.
19
• Bucharest, Romania |Power and Telecom
Cables plant
Annual production capacity: 50,000 tonnes
The plant, owned by Icme Ecab, is located in
Bucharest, Romania on a plot with a total surface
area of 267,789 m
2
including buildings of 102,138
m
2
. It produces a wide range of land power and
telecom cables as well as other special-
requirement cables.
• Oinofyta, Greece |Plastic and rubber
compounds plant
Annual production capacity: 24,000 tonnes
The Compounding Plant in Inofyta, Greece
supports Hellenic Cables for the production of
PVC and rubber compounds and covers a total
surface area of 21,262 m
2
, including 9,216 m
2
of
building facilities. A state-of-the-art, advanced
polymer laboratory is part of the plant and allows
polymer analysis and specialised chemical testing
focused on quality control.
• Blagoevgrad, Bulgaria |Wooden packaging
products plant
Annual production capacity: 16,500 tonnes of
wooden packaging products
The plant, owned by Lesco O.o.d., is a modern
timber company founded in 1998, located in
Blagoevgrad, Bulgaria and exclusively involved in
the manufacturing of wooden packaging products
(pads, reels, pallets, packing cases) for the reeling
of various cables.
20
21
22
Innovation, Technology and
Investments
In 2021 the Cables segment invested EUR 35 million
continuing at a lesser pace, the comprehensive
investment program initiated ten years ago. Thus,
the Corinth plant improved its ability to manufacture
submarine cables of up to 500kV in long continuous
lengths and expanded its annual capacity for both
high voltage and inter-array cables.
More important than capital investment is, however,
Hellenic Cables’ continued dedication to Research
and Development (R&D). A dedicated R&D
Department, with top-tier researchers and engineers,
supported by advanced software tools and modern
testing facilities, pursues core research, product
development, innovation and product optimization
while also providing technical support in engineering
and manufacturing. This effort supports further the
segment’s strategy towards a wider range of green
products, with less environmental impact.
Hellenic Cables collaborates with a number of
universities and research institutions to build
research networks and foster new technologies.
Among those, we note numerous institutions in
Greece (National Technical University of Athens,
University of Patras, Aristotle University of
Thessaloniki, Democritus University of Thrace),
Exeter University (UK), Southampton University
(UK), University of Montpelier (FR), University of
Torino (IT), as well as certication bodies such as
SINTEF (NO), KEMA-DNV GL (NL), EdF (FR).
2021 Research & Development
activities
Year 2021 was characterized by strong research and
development challenges, addressed under specic
R&D projects. These projects focused on delivering
high-quality and reliable products to both new and
existing customers, developing new offshore and
onshore solutions, and optimising existing designs
in terms of cost and technical. Such research
outcomes may be summarized as follows:
New customers – New Markets
• 66kV inter-array cables for new and existing
customers
• 150kV export cables for submarine
interconnections
• High and medium voltage onshore cables for
various European TSOs
• MV land cables for Baltic countries
New product development
a) New design of export dynamic cables, capable
to operate under severe mechanical stresses
b) Design development of
a. 132kV inter array submarine cables
b. export submarine cables at 400kV
c. transition joints for conductors made of
different metals and diameters with a novel
welding methodology
c) New extra high voltage and high ampacity
onshore cables with special conductor design
d) New compounds/recipes for non-conducting
parts of onshore cables. Special focus was given
on increasing the utilization of recyclable
materials.
Applied research
• Development of a calculation tool for optimum
selection of inter array cable design vs CAPEX
and OPEX
• Development of testing methodology for
magnetic and electrical parameters of
submarine cables
• Experimental verication of new materials
under 2-year ageing tests
• Development of measuring methodology for
extra high voltage and high ampacity onshore
cables
• Development of numerical/simulation models
for estimating mechanical and electrical
parameters at design phase.
• Inhouse development of new compounds with
thermomechanical properties
• Publication of novel topics in journals and
conferences as well as participation in technical
committees such Cigre and IEC.
The total R&D expenditure for 2021 amounted to
EUR 10.0 million (2020: EUR 8.2 million), out of
which EUR 3.1 million (2020: EUR 2.7 million)
concerned fundamental research and customer
specic research activities.
23
24
Recent projects
Continuing on its quest for full capacity utilization,
Hellenic Cables continued its tendering efforts
across a number of geographical areas and
succeeded to secure several awards for new
projects and frame contracts, both in the offshore
and onshore sector:
• In the Offshore segment, upon another award
for “Dogger Bank C”, Hellenic Cables became
the exclusive array cable supplier for the world’s
largest offshore wind farm, Dogger Bank
offshore wind farm in the UK. During 2021,
Hellenic Cables struck its rst ever major subsea
cables deal with Vattenfall, while ADMIE
awarded to Hellenic the Santorini-Naxos
electricity 150 kV interconnection.
• In the Onshore segment, several important
frame agreements and turnkey contracts across
Europe were awarded to Hellenic Cables. For
example, a frame contract signed with Réseau
de Transport d'Electricité («RTE») will allow
Hellenic Cables to supply the French
Transmission System Operator (TSO) with 90
kV and 225 kV underground cables. A number
of underground projects in the United Kingdom
were also awarded and executed throughout
the year.
25
A list of major projects awarded in 2021 follows.
Project /
Frame contract Customer Description & Scope Execution period
Dogger Bank C, UK DEME Offshore Design, manufacture, test, and supply approx. 240 km 2023-24
of 66 kV XLPE-insulated inter-array cables and
associated accessories. This is in addition to the 650 km
of array cables already awarded for phases A & B.
Dogger Bank Wind Farm is developed in three 1.2 GW
phases by JV partners SSE Renewables and Equinor.
Vesterhav Nord / Vattenfall Design, manufacturing, testing, and supply of approximately 2023-24
Syd, Denmark 70 km 66kV XLPE insulated inter-array cables and
associated accessories for Vesterhav Nord / Syd
offshore wind farm projects. This was the rst ever major
subsea cables deal with Vattenfall for Hellenic Cables.
Santorini-Naxos ADMIE
2
The submarine section of the Santorini-Naxos 2022-23
interconnection, interconnection will have a total length of 82.5 km
Greece and will be immersed at a maximum depth of 400 meters.
Amager Power Energinet Design, manufacturing, supply and transportation 2021-22
Plant - Svanemølle of about 11 km of 145 kV, XLPE insulated submarine
substation cables. The scope of work includes also the supply
interconnection, of related accessories and supervision work.
Denmark
HV Frame RTE 3-year contract, with the possibility of an extension 2023-26
contract, France two additional years, for High Voltage underground cables
Kareas II Wind Terna Energy SA The Interconnection Cable System includes approx. 2021-22
Farm, Greece 70 km of 150 kV three-core composite submarine cables
as well as 11 km of 150 kV single-core underground
onshore cables, along with all accessories, joints,
terminations and ttings, necessary for the completion
of the system. The production & testing of all subsea
cables was concluded in 2021 and installation is
scheduled for early 2022.
A list of major projects partially or fully delivered in 2021 follows.
Project Customer Description & Scope Execution period
Crete- ADMIE
2
The 178 km-long submarine and underground electrical 2018-21
Peloponnese, Greece interconnection between Crete and Peloponnese,
one of the most demanding projects ever completed
worldwide, was successfully electried during Q2 2021.
Hollandse Kust TenneT Production of submarine cables for Phase B was completed, 2018-23
Zuid A&B, with the delivery of the 220kV & 66kV subsea cables.
The Netherlands
Skiathos island ADMIE
2
The subsea cable was tested successfully several 2020-21
interconnection, months ahead of schedule.
Greece
Adriatic Sea Kon
čar Group The 12 Km 110 kV subsea cable for the replacement of 2021-22
submarine project, existing outdated cable lines in the Adriatic Sea was
Croatia tested successfully during 2021.
Coastal Virginia Dominion Energy Successful completion of cable manufacturing and loading 2021-22
Offshore Wind, USA for shipment of approximately 50 km of 66 kV, XLPE
insulated submarine inter-array cables, connecting the
wind turbines to the offshore substation.
2. The Transmission System Operator (TSO) for electrical power in Greece
26
It is important to note here that, despite the
implementation of several restrictions set by local
governments due to Covid-19, Hellenic Cables
continued to deliver demanding projects on-time.
Such success is fully attributable to the Group’s
strict adherence not only to external mandates, but
also to internal safety protocols and procedures and
continuous coordination with clients and supply
chain partners.
2021 nancial performance
In 2021 the projects business executed orders
efciently and further grew its book by winning
major awards in Greece and abroad. Similarly, the
products business exhibited a signicant increase in
sales volumes compared to 2020. All plants
maintained a full production schedule throughout
the year, supporting those commercial efforts.
Hellenic Cables continued its tendering activity and
was awarded several new projects in the offshore
wind and interconnections markets, along with
frame contracts from major TSOs:
• In the offshore sector, it was awarded the
submarine section of the Santorini-Naxos
interconnection (total cable length: 82.5 km,
maximum depth: 400 meters) in Greece, while
the award of the inter-array cables contract for
Dogger Bank offshore wind farm phase C in the
UK, established Hellenic Cables as the exclusive
array cable supplier for the world’s largest
offshore wind farm. Other major offshore
projects awarded included the rst ever major
subsea cables contract with Vattenfall for the
design, manufacturing, testing, and supply of
approximately 70 km inter-array cables and
associated accessories for Vesterhav Nord / Syd
offshore wind farm project.
• In the onshore sector, Hellenic Cables was
awarded important turnkey contracts across
Europe, especially in the UK, and signed frame
agreements with major TSOs in Greece and
abroad, notably the frame contract with RTE,
the French TSO, for the supply of 90 kV and
225 kV underground cables, accessories and
installation services.
As a result of the above, the order backlog of the
segment by the end of the year exceeded EUR 650
million.
At the same time, a number of projects were
successfully delivered, fully or partially, throughout
2021 including:
• The 178 km-long submarine and underground
electrical interconnection between Crete and
Peloponnese, one of the most demanding
projects ever completed worldwide (the longest
and deepest – 1000m – HVAC interconnection),
was successfully installed and electried in May;
• Electrical tests of the 150 kV high voltage
submarine cable that connects Skiathos island
to the Greek National Transmission System were
successfully completed early in the year;
• The production of all 66kV inter-array cables for
the Seagreen offshore wind farm in the UK was
completed and deliveries are expected to be
concluded early in 2022;
• The production for phase B of the Hollandse
Kust Zuid project in the Netherlands was also
completed, with delivery of the two 220kV
subsea cables completed in the second quarter
of the year; and
• The production for the submarine cables for
Kareas II Wind Farm interconnection was
concluded, on schedule during Q4 2021.
Sales volumes for the products business unit
increased by 14% in 2021, as the demand returned.
Together with the positive product mix, it added to
the segment’s protability.
Driven by the above, the cables segment exhibited
a EUR 7.7 million increase in adjusted EBITDA,
reaching EUR 88.6 million in 2021, up from EUR
80.9 million in 2020. Corresponding prot before
income tax reached EUR 44.9 million, compared to
EUR 35.2 million in 2020, while net prot after tax
followed the same trend and reached EUR 37.2
million (EUR 26.4 million in 2020).
The segment’s net debt decreased by more than
18% y-o-y to less than EUR 200 million (from EUR
242 million on 31.12.2020). The determination to re-
prole debt, secure lower nancing costs and
achieve an effective capital structure continued with
actions including, among others, the issuance of two
green bond loans of EUR 40 million in total. These
are in compliance with ESG nancial principles and
will 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.
Last but not least, the investment in the Corinth
submarine cables plant to expand inter-array cables
capacity is now almost complete. Capital
expenditure for the segment reached EUR 35
million, out of which EUR 26 million concerned
investments in Corinth plant.
27
2022 Outlook
Following the strong performance recorded in 2021 and
based on the current macroeconomic environment, the
cables segment is expected to continue to benet from
the robust set of secured projects, while new signicant
orders (i.e. Soa Offshore Wind Farm (OWF) project in
the UK, Vesterhav OWF project in Denmark etc.) have
already been awarded. The good market momentum,
indicating a strong potential of the offshore wind sector,
and the proven ability of the segment’s companies to
expand into new markets announces solid growth for
the near future. The announced possible partnership
with Ørsted, world leader in offshore wind development,
for the establishment of a submarine inter array cable
factory in the State of Maryland, USA, is an example of
opportunities created by the market’s positive potential.
The submarine project business is expected to retain its
high capacity utilisation throughout 2022 driving the
entire segment’s protability. Regarding the onshore
projects business, several awards in the UK testies
Hellenic Cables’ continuous presence and investment in
this market, while the strong positioning in other
markets, such as East Mediterranean and Central
Europe, signals a robust growth in this business, as well.
In the cable products business unit, the increased
demand levels in the main markets of Western Europe,
Middle East and the Balkans, are expected to be
maintained, as both the construction and the industrials
sectors have rebounded. On top of that, the recently
signed frame contracts secure increased levels of
capacity utilization for the forthcoming years, while the
initiatives for further geographical diversication
continue in order to spread out and fortify revenue
streams.
The operational focus for the cables segment remains
the successful execution of existing projects and the
award of new ones, while strategically all possible co-
operations aiming at utilizing the know-how in the
offshore wind business and possible new business
opportunities around the globe are explored.
Further information is available on the
Hellenic Cables website: www.hellenic-
cables.com
Table 3: Protability Analysis – Cables segment
3
Amounts in EUR thousand FY 2021 FY 2020
Revenue 824,291 599,858
Gross prot 92,521 79,609
Gross prot margin (%) 11.2% 13.3%
a-EBITDA 88,625 80,956
a-EBITDA margin (%) 10.8% 13.5%
EBITDA 83,273 71,506
EBITDA margin (%) 10.1% 11.9%
a-EBIT 71,777 65,730
a-EBIT margin (%) 8.7% 11.0%
EBIT 66,425 56,281
EBIT margin (%) 8.1% 9.4%
Net nance costs (21,539) (21,034)
Prot before income tax 44,886 35,247
Net margin before income tax (%) 5.4% 5.9%
Prot after tax for the year 37,216 26,361
Prot attributable to owners 37,214 26,362
3. Source: Consolidated Statement of Prot or Loss and Alternative Performance Measures
28
Activities
Corinth Pipeworks (hereafter “CPW”) is one of the
world's leading manufacturers of steel pipes and
hollow sections for the energy and construction
sectors. With a successful course and experience of
more than half a century, it has implemented very
demanding projects with leading energy companies
worldwide. The steel pipes manufactured by the
company in the last 15 years can cover more than
half of the Earth's perimeter.
With over half century’s experience, CPW worked
with major energy companies across the globe on
highly demanding projects. The Company’s
customer-oriented philosophy has resulted in
strong, long term mutually benecial relationships
and strengthens its geographical presence.
Its clients in more than 45 countries include:
ABB, Allseas, Subsea 7, TechnipFMC,
AngloAmerican, BP, Cheniere Energy, Total,
Chevron, Shell, Snam, Saipem, DCP Midstream,
Denbury, DEPA, DESFA, DNOW, E.ON, EDF,
Enbridge, Energy Transfer, ENGIE, ENI, EPCO,
EXXON MOBIL, GASCO, Gaz System, Genesis, KPO,
MRC Global, National Grid, Noble Energy, OGC,
OMV, PDO, PEMEX, Plains All American, Qatar
Petroleum, Repsol, Sapura energy, Saudi Aramco,
Socar, Sonatrach, Spartan, Spectra Energy, STEG,
Terega, Whitewater Midstream, Wintershall etc.
CPW is ready for the energy shift. It is committed in
making a positive contribution to the energy
transition, through new technological solutions that
allow the increasing use of renewable sources in the
energy mix. It also commits to tackling climate
change through the development of innovative
products together with the reduction of the carbon
footprint of its own production activities.
Corporate Strategy
In an ever-changing environment, Corinth
Pipeworks remains committed to being the
manufacturer of choice for premium pipes for
energy transport worldwide, always acting based
on sustainable development principles and focusing
on responsible management of ESG issues. It
constantly strives to be one step ahead, implement
projects with high added value, develop innovative
solutions and products, and invest in cutting-edge
technologies and in educating and developing our
people, setting standards for excellence, and
launching actions for a sustainable, carbon-neutral
future, aimed at creating value for our stakeholders.
Climate change & Green deal
As energy consumption is responsible for about
two-thirds of global greenhouse gas emissions,
climate change has become a determining factor in
the global economy. Corinth Pipeworks is
committed in making a positive contribution to the
energy transition and to tackle climate change,
through the development of innovative products
and the reduction of the carbon footprint of its
production activities. The company constantly stays
up to date with international trends in climate issues
and supports the objectives of the Paris Agreement,
as part of a mindful strategic choice to strengthen
competitiveness and create value for all
stakeholders.
Energy Efciency
Corinth Pipeworks uses operational excellence
practices covering a wide range of best energy
efciency applications:
• Implementation of energy efciency programs.
Steel Pipes
CPW America
Steel
pipes
Corinth Pipeworks Humbel
Warsaw Tubulars
Trading
DIA.VI.PE.THIV. AO TMK-CPW
29
The programs implemented, such as the
replacement of the use of fossil fuels by
electricity, the installation of LED lighting, the
transition to UHV network, etc. resulted in 2%
energy savings in the production process.
Improving our energy efciency is an ongoing
process that will continue for years to come.
• Electricity from RES. CPW aims to fully cover its
needs for electricity directly from renewable
sources, a commitment set by the company’s
management. Until further options are available,
the company achieves this objective by
purchasing GOs (Guarantees of Origin).
Circular Economy
Corinth Pipeworks is committed to act in a
sustainable manner and to assist the transition to a
low carbon, circular economy. They are launching
actions to create a circular future by utilizing wastes
or by-products and generate industrial value-added
products
Energy transition – Ready for the Shift
Energy transition can be the means for combating
climate change, accelerating the reduction of
carbon emissions and at the same time, creating
conditions for growth and development. Through
new technological solutions that allow the
increasing use of renewable sources in the energy
mix and the successful penetration of hydrogen
technologies, carbon capture and storage, as well
as energy storage, Corinth Pipeworks is ready for
the energy shift. The technological solutions
provided by our products focus on the main pillars
of energy transition which are gas, hydrogen and
CCS technologies (carbon capture and storage).
30
Digitalization
Climate Change
Carbon Neutral Company
(Scope I & II)
100% electricity from RES
Circular Economy projects
Digital transformation
Optimization of energy and
materials consumption
HR digitalization
QM customized platform
HSE digital platform
32% Recycled water
94% Recycled waste
466 hours environmental
protection training
31
Megatrends
Adapting to the Challenges
Energy Efciency
2% reduced energy
consuption
Energy saving projects
Energy Mastering
Awards 2019
ISO 50001 Energy
management system
32
Gas & liquid fuel: Natural gas is often considered as
the transitional fuel to a clean energy future and is
an ideal, cost-effective partner to renewable energy
sources, such as wind, solar, hydrogen and
hydropower, providing a consistent back-up source
of power to their variability. For several years now,
Corinth Pipeworks, delivers gas transmission
projects (more than 90% of its activity) to the
energy market.
Hydrogen: In collaboration with international
companies and laboratories, CPW is a pioneer in
the research and development of “hydrogen-ready”
solutions. The objective is the certication of steel
pipes to withstand up to 100% hydrogen and the
transportation through a new or existing high-
pressure networks.
To this direction, we are one of the leading
manufacturers of steel pipes for the energy sector
and the rst, globally, to participate in the European
Alliance for Pure Hydrogen (Hydrogen Alliance) as
well as in Hydrogen Europe. Our experts participate
in the Technical Committees and Working groups
with the view to nd solutions in a cost-effective
way to the secure transportation of hydrogen and
also contribute to the important task of
Standardization & and Regulations that will create
the basis for the transition to a hydrogen economy.
Carbon Capture & Storage (CCS): This technology
is still in a testing phase and is constantly evolving.
It is believed that, as a technology for specic
applications, it will help tackle climate change. For
the last 15 years CPW has produced CO2
transmission pipelines with a total length of over
1,150 km and is ready to face any new challenge
that will allow the application of this technology on
a large scale.
Wind Energy: Today, wind energy offers a
technologically mature, economically competitive
and environmentally friendly energy choice. Wind is
an inexhaustible source of energy, without
environmental burdens. The wind energy sector is
one of the fastest growing energy technologies,
especially in offshore wind parks and dynamically in
oating wind parks. Steel products are broadly
used in these dynamically developing sectors t our
competencies and are under study, fully in line with
the company's diversication strategy.
Product portfolio
Corinth Pipeworks has extensive experience and a
strong track record of implementing complex
projects for the energy sector worldwide, both
onshore and offshore. CPW offers one of the widest
product ranges in the industry, as well as top-
quality tailor-made solutions to demanding
projects. Combining cutting-edge technology,
advanced machinery and equipment with a unique
team of experts, eager to respond and nd
solutions to customer needs.
CPW produces high-quality steel pipes to safely
transport oil, gas and water, to carry CO
2
and
slurry, as well as casing pipes for drilling
operations. Its key products include longitudinal
(LSAW) and helical seam welded steel pipes
(HSAW) with medium and large diameters, as well
as hollow structural sections for construction
applications. Its long history of innovation and
integrated services have cemented its position as a
major steel pipe supplier.
CPW’s three main product categories are:
1. Line pipes – manufactured either in the plant’s
high frequency induction welding unit (HFW),
or the helically submerged arc welding unit
(HSAW) and the longitudinal submerged arc
welding unit (LSAW/JCOE).
2. Casing pipes – these high-frequency induction
welded pipes (HFW) are used in oil and gas
Gas & liquid
fuel
Construction Hydrogen CSS
Carbon Capture
Storage
Onshore
pipeline
Offshore
pipeline
Drilling &
Extraction
Hollow
sections
Hydrogen
certied
Pipelines
CO
2
Pipelines
H
2
CSS
33
extraction drills; their product range was
expanded by the installation of an LSAW mill in
2016.
3. Hollow structural sections – used in the
construction sector.
Demanding Applications
Corinth Pipeworks has extensive experience and a
strong track record of implementing complex
projects for the energy sector worldwide, both
onshore and offshore. The Company offers one of
the widest product ranges in the industry, as well as
top-quality tailor-made solutions to demanding
projects. Combining cutting-edge technology,
advanced machinery and equipment with a unique
team of experts, eager to respond and nd
solutions to customer needs.
Worth mentioning are:
• Offshore projects - Deep water solutions:
- LSAW pipe at 1,750m max depth
- HFI pipe in reel lay at 1,250m max depth
• Sour service solutions: more than 2,000km
Responsible Production
Todays’ industries are called upon to meet the
global demands of a growing population, while
signicantly reducing its impact on the climate that
can be achieved by accelerating the
implementation of energy efciency measures and
best available technologies.
The Company envisions its future as a Carbon
Neutral company, contributing signicantly to a
climate-neutral society. The technological solutions
provided by its products focus on the main pillars of
energy transition which are gas, hydrogen and CCS
technologies (carbon capture and storage). Corinth
Pipeworks is committed in making a positive
contribution to the energy transition and to tackle
climate change, through the development of
innovative products and the reduction of the
carbon footprint of its production activities.
Services
Internal and external coating of pipes produced
by other pipe manufacturers;
Accredited laboratory for raw material and pipe
testing, in accordance with ISO 17025:2006;
In-house corrosion testing laboratory for sour
service applications;
Weld-on connector facilities for casing pipes;
Pipe storage;
Supply of pipes or assignment of pipe coating
to third party authorised subcontractors in the
context of a major project implementation;
Pipe transportation.
Production and port facilities
CPW’s industrial plant is located in Thisvi, Viotia,
Greece.
• Corinth Pipeworks Pipe Industry plant and port
| Thisvi (Greece)
Corinth Pipeworks operates a state-of-the-art plant
in Thisvi, Greece (EUR 350 million investment 2002-
2020) with 925,000 Tn./year capacity. It
continuously invests to support delivery of reliable
quality solutions on time.
The company offers -in one location- all welded
pipe manufacturing methods (4 pipe mills) and
pipe coating operations required for the supply of a
complete on/offshore pipeline package:
Pipe mills
• ERW (Electric Resistance Welded)
• LSAW (Longitudinal Submerged Arc Weldin
• HSAW (Helical Submerged Arc Welding)
Downstream operations:
• External and Internal Coating mills (FBE, ARO,
3LPE, 3LPP, Internal Epoxy)
• Concrete weight coating facility
• Double jointing facility
• Weld on Connectors line
• Laboratory (+ sour service conditions)
• Storage areas
Port
The plant has the exclusive use of port facilities
located approximately 1.5 km away.
34
12
8
3
2
12
35
9
12
12
11
10
1
4
6
7
5
13
Pipe mills
1 HFIW
2 SAWL
3 SAWH
4 HFIW
Coating
Solutions
5 Coating mill
6 Coating mill
7 Lining mill
8 Concrete Weight
coating facility (CWC)
Supporting /
downstream
9 Port facilities (exclusive use)
10 Weld on Connectors
11 Laboratory (+ sour service conditions)
12 Storage areas
13 Double Jointing facility
All in one location
36
Innovation, Technology and
Investments
Invest in the Future - Innovation
Corinth Pipeworks ability to manufacture cutting-
edge products and remain at the forefront of its
industry through investment in R&D, drives
operational efciency and commercial
achievements across the world. It often collaborates
with international research organizations, as well as
regularly participates in research projects linked to
its core business activities.
• Hydrogen Certication
Hydrogen is, rightfully, considered the cleanest fuel
of the future. The company, in collaboration with
international companies and laboratories, is a
pioneer in the research and development of
solutions for the certication of steel pipes for the
safe transportation of hydrogen as a mixture with
natural gas or in pure form. As such, it delivered the
rst hydrogen-certied pipeline project for Snam’s
high-pressure gas network in Italy.
The selection of suitable materials for the
construction of hydrogen transportation pipes, as
well as achieving that the product will guarantee
long-term, safe use in full operating conditions is a
research priority for Corinth Pipeworks. In this
context, a properly designed specialized research
program has been launched in collaboration with
the RINA Italy research institute. Also, a wide range
of research collaborations have been developed
with gas distribution companies, international
forums, such as the EPRG and international
research centers. At the same time, we are one of
the leading manufacturers of steel pipes for the
energy sector and the rst, globally, to participate
in the European Alliance for Pure Hydrogen
(Hydrogen Alliance) as well as in Hydrogen Europe.
• Wind energy
Market study regarding wind energy sector and the
potential of offshore parks.
• Other initiatives
- Implementation of process optimization
techniques combined with extensive internal
trial productions, aiming to narrow optimum
working range for all variables targeting higher
product uniformity.
- Broadening its production range in terms of
thickness and grade.
- Advanced monitoring of weld techniques.
- BEST, operational excellence program.
- Digital human resources management.
- Non-destructive technologies testing.
- Development of advanced tracking and process
control systems.
- Hydrogen sulphide resistant steel pipes.
- High pressure bearing offshore pipes/Depth
bearing submarine pipes.
- Potential pipe breakage at low (sub-zero)
temperatures
- Collaboration with international research
organizations and institutes (EPRG, TWI,
ELKEME)
- Participation in major European & International
projects targeting to the development of both
pipe properties and pipeline integrity (JIP, RFCS
projects).
Last but not least, following the investment
programs that took place during the last decade,
the steel pipes segment further invested EUR 9.5
million in 2021.
Recent projects
In 2020, the energy market was signicantly
impacted due to the postponement of a signicant
number of projects and the reduction in spending
on exploration for new reserves. CPW responded
dynamically to the slowdown in the market,
focusing on entering new geographical areas while
also increasing its competitiveness and
strengthening our operational excellence. The goal
is to make a positive contribution to energy
transition and develop innovative products while
reducing operational carbon footprint.
During 2021, CPW was awarded major projects,
including:
1. A contract from GAZ-SYSTEM SA Poland, to
supply 80 km of 40” coated steel pipes for the
Gustorzyn - Wronow gas pipeline
2. 50km of 36” LSAW linepipe, including anti-
corrosion coating and concrete weight coating,
for Israel Natural Gas Lines (INGL).
3. The rst high-pressure newly manufactured
37
pipes certied to transport up to 100%
hydrogen for Snam’s high pressure gas network
in Italy. The 26” (660mm) pipes with a thickness
of 11,1mm & 15,9mm, have been tested in
laboratory at maximum pressure and 100%
hydrogen. Scope of supply also includes
external 3LPE anti-corrosion coating and
internal liquid epoxy lining.
4. LSAW steel pipes for the tie-back of Zinia Phase
2 wells at depths of 1,200m. Another milestone
in Corinth Pipeworks’ growing offshore
presence as end-users and lay-contractors
continue to use the Company’s latest welded
pipe technology for offshore applications.
5. 18km of 8” HFW linepipe which will tie back
additional gas reserves from DeNovo’s 100%
renewable powered Zandolie platform to its
shore-based Gas Processing Unit via the
existing Iguana gas export pipeline
Finally, in the year, CPW successfully continued its
intense program of qualications. In this context, it
is rewarded in the Energy Mastering Awards 2022
for best practice in Energy Efciency and Energy
Monitoring Technologies.
2021 nancial performance
2021 was the second challenging year in a row for
the steel pipes segment. After the unprecedented
decline in energy consumption and prices due to
the pandemic outbreak in early 2020, which led to
the postponement or cancellation of several fossil-
fuel distribution projects, the energy market slowly
but steadily recovered and prices in 2021 climbed to
very high levels, due to stock depletion and hastily
rebounding global demand. Some of the pipeline
projects put aside the year before, restarted in the
second half of 2021, as it was apparent to all that
natural gas would still be the main “bridging” fuel
towards the energy transition period of the next
decades.
Furthermore, over the course of the year Corinth
Pipeworks remained focused on research and
development initiatives (e.g. green hydrogen
transportation, CCS technologies, potential
opportunities in the offshore wind sector), tried
successfully to enter new geographical markets and
continued its rigorous program of major oil and gas
company qualications and innovative programs to
enhance competitiveness including commencing
digitalization of its processes. In brief, it demonstrated
considerable stamina throughout these hard times,
strengthening its presence in existing and emerging
markets, winning important new onshore and offshore
projects and securing an uninterrupted production
process all throughout the year.
Despite a revenue decline by 25% relative to its
2020 levels (EUR 230 million in 2021), mainly driven
by globally postponed energy projects, Corinth
illustrated its resilience as shown mainly by the
following actions:
• Efforts to strengthen its presence in new
markets in Europe, the Americas, North Africa
and Asia, and winning new projects;
• Increased backlog reaching EUR 350 million by
the end of the year, as a result of the successful
tendering activity during the last months of
2021;
• Strict working capital management which
secured liquidity and allowed its operating
activities to nance investments that took place
during 2021;
• Conclusion of the cost optimization programme
that started in 2020Q4.
Decreased revenue led to a decrease in a-EBITDA by
26% with gross prot lower to EUR 16.2 million in 2021
(from EUR 23.9 million in 2020) and adjusted EBITDA
following to EUR 16.0 million (EUR 21.7 million in
2020). On the positive side, the segment managed to
produce signicant free cash ows in 2021. This
resulted in a large decline in net debt from EUR 89
million as of 31 December 2020, to EUR 68 million.
Long-term debt was also partially renanced with
more favourable terms, through the issuance of three
bond loans amounting to EUR 22 million in total.
Finally, as a result of the retrospective
implementation of the AD duty rate imposed by the
US Department of Commerce (EUR 12.8 million
provision charge, see below), the segment recorded
a loss before tax of EUR 13.9 million for 2021,
compared to prot before tax of EUR 1.3 million in
2020.
38
Table 4: Protability Analysis – Steel pipes segment
4
Amounts in EUR thousand FY 2021 FY 2020
Revenue 229,913 308,559
Gross prot 16,152 23,904
Gross prot margin (%) 7.0% 7.7%
a-EBITDA 15,974 21,702
a-EBITDA margin (%) 6.9% 7.0%
EBITDA 2,388 20,788
EBITDA margin (%) 1.0% 6.7%
a-EBIT 7,124 12,858
a-EBIT margin (%) 3.1% 4.2%
EBIT (6,462) 11,944
EBIT margin (%) -2.8% 3.9%
Net nance costs (7,478) (10,603)
Prot before income tax (13,940) 1,341
Net margin before income tax (%) -6.1% 0.4%
Prot (loss) after tax for the year (14,704) (456)
Prot (loss) attributable to owners (14,704) (456)
2022 Outlook
The steel pipes segment has, most probably, left
behind the last two difcult years and is now ready
to benet from the orders received during the last
months. As global energy demand is growing faster
than renewable energy capacity, demand for fossil
fuels will rebound and hence, demand for steel
pipes is expected to reach higher levels in the near
future. CPW remains focused on penetrating new
geographical markets and developing new
innovative products, e.g. infrastructure for the
offshore wind sector, tubes for hydrogen
transportation, carbon capture and storage (CCS)
technologies etc. Such initiatives along with
intensied efforts towards stronger competitiveness
will improve the company’s market position and will
lead to awards of new projects and return to
protability. Looking ahead, the energy sector is
expected to stabilize at a higher price levels driven
by continued geopolitical uncertainty. This, in
combination with the solid backlog built during the
last quarter of the year, offers a positive outlook for
steel pipes segment.
Further information is available on the
Corinth Pipeworks website:
www.cpw.gr
4. Source: Consolidated Statement of Prot or Loss and Alternative Performance Measures.
39
@ SapuraE nergy
40
On February 8th, 2022, the US Department of
Commerce (DoC) published its nal results in the
administrative proceedings conducted by the DoC
for the period from April 19, 2019 through April 30,
2020 (“POR”) in connection with an antidumping
(“AD”) 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 percent based on total adverse facts
available (AFA) for mandatory respondent Corinth
Pipeworks S.A., Cenergy Holdings’ steel pipes
segment.
Despite the lengthy process of the administrative
review involving the supply of extremely detailed
data sets on Corinth Pipeworks’ commercial
practices for the POR under scrutiny, as well as all
reasonable estimations made throughout 2021 on
the size, if any, of a possible AD duty rate, the DoC
concluded on such a high AD duty rate.
Corinth Pipeworks intends to le 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 nal
determination. Cenergy Holdings considers that
there will be no material impact on the business of
its subsidiary Corinth Pipeworks S.A., as the latter
strongly follows a geographically diversied
commercial policy and the USA market does not
presently constitute its core market. The one-off,
additional provision charge on Cenergy Holdings’
annual consolidated economic results from a
retrospective implementation of the AD duty rate
and reaches ca. EUR 12.8 million (USD 14 million
plus interest).
The Ukraine conict which began in February 2022
is already pushing up market volatility and
increasing the probability of disruptions in many
parts of the global economy. Though its impact on
Cenergy Holdings’ subsidiaries cannot be fully
predicted right now, the overall exposure to Ukraine
and Russia is very limited and business
consequences are not expected to be material.
Sales to these markets represent an insignicant
portion of total turnover (ca. 2,3% for 2021) and any
loss in revenue will be fully offset by demand in
other markets. Nonetheless, Cenergy Holdings’
companies have already initiated actions to shift the
supply of raw materials currently sourced from
Russia to alternative markets so as to mitigate any
potential disruption in their supply chain. As for
nancing, the companies have no exposure to
Russian banks.
Finally, in the energy front, it is clear the conict in
Ukraine has accelerated price ination already
present since the second half of 2021. Cenergy
Holdings’ companies have already taken mitigating
actions to reduce the business impact. They are
monitoring the situation closely and will modify
their approach when and as required to secure
efciency in their operations.
There are no other subsequent events affecting the
Consolidated Financial Information presented in
this Annual Report.
Subsequent events
41
@Baltic c onnec tor
42
Cenergy Holdings’ Board of Directors is the highest
body responsible for assessing the risk prole of its
companies. Being a holding company, Cenergy
does not have itself any production operations,
customers, suppliers, or personnel (besides
employees for administrative tasks), therefore any
risks affecting it originate at its subsidiaries and
their operations, suppliers, clients and personnel.
Cenergy Holdings’ companies operate in dynamic
markets with quite different characteristics, hence
risks are to be managed in a structured way in order
to reduce potential negative nancial impact. The
goal for each company is consequently to identify,
measure and prioritize risks and to react
appropriately with suitable actions that mitigate,
reduce or control the impact of negative events.
Cenergy views risk management as a tool which
adds value by raising awareness of risks and places
focus on efcient daily operations in line with each
company’s strategy.
Still, a set of common guidelines for an Entreprise-
wide Risk Management (ERM) framework across
Cenergy Holdings’ subsidiaries exist: these include
principles for effectively managing risks in all
subsidiaries. Furthermore, the framework provides
guidelines on how best to address these risks and
facilitates discussion on risk management issues.
In turn, Cenergy Holdings’ executive management
in consultation with the Board of Directors is
responsible with successfully exploring business
opportunities, whilst at the same time assessing
possible risks and their control mechanisms across
subsidiaries, with the help of an independent
Internal Audit department. The objective of this
evaluation is to enable the Company to determine
whether the subsidiaries have managed risks in a
proactive and dynamic way to mitigate them down
to an acceptable level.
The ERM process in Cenergy’s subsidiaries
comprises the following steps:
• Identify key risks and measure / analyse their
potential impact and likelihood. This is done at
company level as all nancial, operational,
compliance and strategic risks are associated
with each company’s operation.
• Manage (i.e., respond to) those risks by
considering existing controls as well as
selecting, prioritising and implementing
appropriate actions. This step is also done at
company level, following the general principles
outlined in the ERM framework.
• Control and monitor internal and external
environment for potential changes to risks,
ensuring risk responses continue to be effective.
Each company monitors its risks and risk
responses, using the common ERM guidelines
but separate procedures, systems and
mechanisms put in place by each company’s
management.
• Finally, companies report both internally and at
Cenergy Holdings’ level, a consolidated
evaluation on their risks, integrated with a
review of their nancial performance. Hence,
Cenergy Holdings’ executive management
judges their overall risk – return trade off and
presents the outcome to the Audit Committee
and the Board of Directors. Needless to say that
the Audit Committee monitors the effectiveness
of the subsidiaries’ internal controls and looks
into specic aspects of controls and risk
responses on an on-going basis.
The fact that each company’s main revenue streams
originate from separate markets with independent
market dynamics provides, to some degree, a
“natural” risk diversication effect. Still, the fact that
Cenergy companies are in one way or another,
related to the global trends of the energy markets,
means that they would in principle, face similar
risks. We could, however, say that the businesses of
the HV cables segment of cables and of the large
diameter pipes segment are primarily driven by
large infrastructure projects and are, hence,
essentially decoupled from short-term
macroeconomic developments. On the other hand,
a part of cables sales and the hollow section of
CPW is linked to construction activities, a highly
cyclical sector.
In pages 16-38, the development per business line in
2021 is described. The company’s enterprise risk
management (ERM) model outlined above ensures
Risks and Uncertainties
43
5. The set of perceptions about the company by the different stakeholders with whom it interacts, both internal and external.
6. The risk which concerns the proper and true economic and nancial reection of the companies’ reality as well as compliance
with all related regulations (IFRS, etc.).
that risks are captured and dealt with primarily by
the business line managements and, if needed, by
the support functions. This tailored reporting
structure ensures company-wide awareness of risks,
opportunities and mitigating actions.
Key risks
Risks are classied into two major families, Financial
and Business Risks. The former includes different
types of market risk affecting the activity of each
subsidiary (mainly, exchange rate, interest rate and
commodities risk) as well as credit risk,
counterparty risk and liquidity risk.
The Business Risk family, broadly dened as all risks
that are not balance-sheet related, is broken down
into further sub-categories, to help better
understand and react to the different risk events:
a. Operational and technology risks dened as the
risk of loss resulting from inadequate or failed
processes, people and systems or from external
events. Operations risks comprise all risks
associated with the day-to-day operations such
as Health & Safety, environmental issues, legal
risk (as it refers to processes) but not strategic
or reputational risks.
b. Compliance and reputational risks include
possible negative impacts (economic – nes,
penalties, etc. and other – exclusion from
markets, etc.) from noncompliance with existing
regulations and standards. Also included are
potential impacts to the subsidiaries’ (and the
Holdings’) brand image and business
5
reputation, as well as accounting risk
6
.
c. Strategic risks include risks related to the wider
business environment (e.g. the macroeconomic
environment, the sector / industry conditions,
etc.) the market and the competition, and
medium to long-term decision making that may
impact on business continuity and protability.
A brief business risk taxonomy for Cenergy
Holdings’ subsidiaries is presented below, together
with the actions taken to identify, measure, react,
control and monitor them. Then it is prudent to
sketch a “risk matrix” for the 5 most important risks
faced by Cenergy companies.
Business Risks
Operations and technology
Product failure risk
Faulty or non-performing products may expose
companies to penalties, complaints, claims and
returns, which lead to loss of revenues, market
share and business reputation. In this category, we
also include the risk of failure to comply with the
contractual terms of “turnkey” projects, where our
companies not only have to supply a good product
per se but also ensure proper design, service and
support up to the nal commissioning of the
requested system (e.g. transportation, installation,
laying, protection, etc.)
To proactively mitigate such risk, all companies
follow rigorous quality management systems at
their plants and maintain appropriate insurance
coverage against such claims as well as product
liability insurance. Quality control includes batch or
item sample testing, defect capturing monitoring
systems spread out in production phases, end-to-
end traceability systems, etc.
Operation interruption risk
Apart from the unexpected unavailability of raw
materials or other crucial resources, a lack of skilled
labour, a delay in adapting new technologies and /
or the danger for equipment breakdowns may
threaten all subsidiaries’ capacity to continue
operations. Consequently, all companies use
specialized maintenance departments to minimize
the latter, upgrade plant equipment and production
44
lines to reduce obsolescence risk and constantly
monitor safety stock levels. Moreover, some of the
plants, facilities and production lines are
interchangeable and have been mapped to ensure
shifting and continuation of production if such a
need arises. Any residual risk is mitigated through
business interruption insurance policies.
Risk of lack or loss of key resources
Since a disruption in the supply of energy, metals
and other key raw materials and component parts
may threaten the companies’ ability to produce
quality products at competitive prices on a timely
basis, they all take relevant measures to reduce
such risks (e.g. a diverse supplier base, alternate
material lists, Service Level Agreements with key
vendors, lower spot market exposure).
As for human resources, our companies are
committed to building a culture of fair pay and trust
by creating the environment and the processes for
people performance and development, an open and
truthful dialogue with staff, individual development
plans and follow up as well as talent planning and
succession management. These measures somewhat
reduce high turnover risk, which is, however, still
dependent mainly on the macroeconomic
environment of each production site.
Channel effectiveness risk
Poorly performing or positioned distribution
channels may threaten the companies’ capacity to
effectively and efciently access current and
potential customers and end users, so in turn, they
manage it through experienced commercial
executives per project / market; periodic nancial
reviews serve as the main monitoring tool.
Information technology (IT) risk
IT risk is usually dened as the likelihood of
occurrence of a particular threat (accidentally
triggered or by intentionally exploiting a
vulnerability) and the resulting impact of such an
occurrence. It obviously includes, but is not limited
to, cybersecurity risk.
Most of Cenergy Holdings’ subsidiaries being
capital intensive, they rely on IT systems to guide
and optimize their production. IT equipment failure,
human errors and/or the unauthorized use,
disclosure, modication or destruction of
information, pose serious risks to the companies’
operation and protability. Hence, the continuous
identication and application of appropriate and
proportional controls that limit exposure against the
aforementioned threats is vital to the integrity of IT
systems in all companies as well as against legal
requirements.
Furthermore, all subsidiaries are complying with
2016/679 EU General Data Protection Regulation
(GDPR), taking this opportunity to evaluate and
ameliorate their overall IT risk posture, beyond
regulatory requirements.
Compliance and reputation risks
Financial Regulation risk
In regards with the requirements arising from its
stock exchange listings, Cenergy Holdings has
established necessary structures and procedures in
order to ensure continuous compliance, including
the adoption of its Corporate Governance Charter,
which covers issues such as directors’ and
managers’ accountability, good governance
principles, insider dealing, and conicts of interest.
Compliance Risk
Laws and regulations apply to many aspects of
subsidiaries’ operations including, but not limited
to, labour laws, Health & Safety, environmental
regulations, building and operational permits, anti-
bribery legislation and antitrust laws, Data
Protection legislation, export restrictions, etc.
Cenergy Holdings requires all companies in its
holding portfolio to abide by all laws and
regulations, whether at the local, European or
international level accordingly, regarding Health and
Safety in the production plants, labour and human
rights, the protection of the environment, anti-
corruption, bribery and nancial fraud. Being a
holding company, Cenergy Holdings requires its
subsidiaries to develop their own policies for all
such matters and the subsidiaries are exclusively
responsible for the compliance with these policies.
Additional details are further given in the Non-
Financial Information section (pages 49-67).
Strategic risks
Country risk
Political risk of countries where Cenergy’s
companies are active, commercially or in
production, may threaten future product and cash
45
ows, both upstream and downstream. The main
answer to that risk is geographical diversication, in
manufacturing, supply chain and distribution.
For manufacturing, Cenergy companies are
currently present in 3 EU countries (Greece,
Romania and Bulgaria) that pose a minimum, if
not zero, political risk. The availability and prices
of basic raw materials, such as copper, aluminium
and steel follow international markets, not
affected by development in any particular country.
Finally, subsidiaries distributed their products in
more than 45 countries worldwide in 2021, with
more than 65% of any company’s 2021 turnover
derived from markets outside their production
sites.
Cenergy Holdings’ 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 in order to minimize the impact of the
macroeconomic conditions on their operations.
Industry risk
Industry risk of Cenergy companies related to the
specic sector they operate in, is associated either
with the cyclicality of demand or the substitution
rate of some of their products. The former is
mitigated by expanding into global markets, so that
the cycle effects are differentiated away across
geographical areas. As for the latter, substitution
risk is addressed through the differentiation of their
product mix, shifting for example into lower
substitution rate products.
Competitor risk
Strategic issues regarding competition are assessed
as part of the annual budget process of all Cenergy
Holdings’ subsidiaries, as well as the strategic
markets plan of each company. Daily management
of competitor risk, on the other hand, is captured
through daily review of market information and
mitigated by a strong commitment to quality, a
competitive pricing policy in commodity products
and a targeting on high-margin products.
Technological innovation risk
In a world of rapidly changing technology, not
following the technology wave in an efcient
manner or not investing in the necessary IT
infrastructure may seriously affect current and
future business results. Alternatively, companies
that do not leverage such technology
advancements to extend their competitive
advantage, may be “left out in the dark” and suffer
from competition. This strategic risk is primarily
managed by Cenergy’s subsidiaries through the
establishment of technical assistance and
knowledge transfer agreements with global leaders
in their sectors. All companies invest strongly in
research and development (R&D), cooperating with
scientic bodies and prominent international
research centres, and most of them host dedicated
R&D departments.
46
The segments’ primary business risks are shown in the risk matrix below according to likelihood and impact.
Figure 1: Cenergy Holdings Risk Map for 2022
Low Medium High
Low Medium High
Likelihood
Impact
R1
R4
R5
R3
R2
Table 5: Major Risks for Cenergy Holdings companies (2022 estimate)
No. Segment / Taxonomy Identication Summary Mitigation actions
R1 Steel Pipes / Design of product As the market is evolving, Perform detailed metallurgy research.
Technology risk for upcoming the exact specications of Propose fully integrated solutions
hydrogen networks pipes are unknown yet based on current specications.
R2 Steel Pipes/ Substitution of Use of other materials for Diversify geographically (short-
Industry risk carbon steel by lower scale gas network term), focus on other kinds of
other materials projects in Europe. liquid & gas networks (longer-term).
R3 Both / Supply chain Availability of key raw Annual contracts with key suppliers
Procurement risk disruption materials, transportation to guarantee necessary volume
issues, etc. of supplies
R4 Both / HR risk Difcult recruitment / True in certain areas (Romania) Adapt career evolution criteria for
High turnover and functions (engineers, higher level staff; increase salaries
young blue collars) for certain functions.
R5 Cables / Legal risk Long period (5yr+) contracts; Gradual creation of a cash pool
Compliance risk insurance deductibles (provision) per project in order to
dropped since Covid-19 cover possible claims; also study
the use of captive insurance.
R6 Both / IT risk Cybersecurity Plants vulnerable to Monitoring and ltering network
cyberattacks, as production trafc through dened rules, zones
is fully automated. and controls with internal and
external rewalls. Development of
new technical monitoring measures
with access control tools and
services of specialized partners for
collection and evaluation of possible
vulnerabilities of networks and
infrastructures
R6
47
As for the global macroeconomic risk of a new
upsurge of the Covid-19 pandemic, we must note that
it has had so far limited operational impact on both
segments; all companies do, however, continue to
keep in place all supplementary health and safety
measures in favour of their personnel initiated in 2021
and are scrutinizing their workplace for any event
that may disrupt their production continuity.
Financial risks
As complex, international businesses Cenergy
Holdings’ companies are also exposed to nancial
risks not covered in the above risk matrix. These
risks arise from nancial market uctuations and
primarily consist of currency and commodity risk
exposures. Cenergy companies rst try, if possible,
to “naturally hedge” any such risks, and then utilize
varied nancial derivatives to hedge large
exposures and protect earnings and assets from
signicant uctuations.
Interest rate risk
As a rule, Cenergy entities do not enter into
speculative positions on interest rates of any kind
and always try to follow natural immunization
strategies. On the other hand, given the current low
interest rate environment, each entity tries, in the
measure possible, to secure xed and low rate
credit lines to avoid cash ow shocks and facilitate
capital budgeting.
The interest rate prole of Cenergy Holdings, on a
consolidated basis, as of 31 December 2021 consists
of EUR 40.6 million of xed-rate nancial
instruments and EUR 353.4 million of variable-rate
instruments. Moreover, a change of 25 basis points
in interest rates of variable-rate nancial liabilities
would have a positive or negative effect of EUR 1.14
million after tax in the Consolidated Prot / Loss
statement of 2021.
Currency risk
Cenergy Holdings holds stakes in companies with
production plants and commercial relations
spanning the globe. As such, they are exposed to
nancial (transaction), accounting (translation) and
economic losses due to volatility in foreign
exchange rates. Companies manage this risk in a
prudent manner, trying for natural hedges
whenever possible (i.e. matching currencies in
anticipated sales and purchases, as well as
receivables and liabilities) and using standard
hedging products, such as forward contracts, if
necessary.
Commodity risk
Cenergy Holdings’ subsidiaries are using metal raw
materials as inputs, so price uctuations (esp.
aluminium, copper, nickel and zinc) may expose
them to lower product margins or trading losses.
Future contracts traded in the London Metal
Exchange (LME) offer the obvious hedging choice
for them: rst, all Cenergy Holdings’ subsidiaries
record metal positions resulting from LME price
xing for purchases and sales. They monitor the
metal price risk and try to match purchases with
sales. The resulting net exposure is centrally hedged
using LME contracts, resulting in almost immune
margins.
Liquidity risk
Cenergy’s subsidiaries constantly monitor cash ow
needs on a monthly basis, reporting liquidity and
leverage ratios and continuously assessing available
funding, both in the local and international markets.
They mitigate liquidity risk by maintaining unused,
committed nancing facilities from a diversied
number of nancial institutions
Cenergy Holdings’ total debt (incl. lease liabilities)
amounts to EUR 393.9 million (31.12.2020: EUR 411.7
million). Considering EUR 129.6 million of cash & cash
equivalents, Net Debt amounts to EUR 264.3 million
with 44.9% (31.12.2020: 43.3%) of total debt being
long-term and the rest, short-term. Loans and
borrowings are held with banks and nancial
institutions, which are rated from A- to Β+ based on
ratings of Standard & Poor's. Approximately 90% of
these loans and borrowings are held with Greek banks.
Long term facilities have an average maturity of 3.7
years, whereas short term ones are predominately
revolving lines, reviewed annually with anniversaries
spread out through the year and renewed
automatically at maturity, if necessary. There are
sufcient credit limits in place to serve working
capital requirements and renance short term loans.
Credit risk
Cenergy Holdings’ subsidiaries sell to a large number
of customers across countries and sectors, trying to
avoid customer concentration, if possible. For large
infrastructure projects, though, that make a
signicant portion of both segments’ turnover, this is
however unavoidable. Hence, companies mitigate this
risk by executing robust creditworthiness checks of
nal customers via credit rating agents and carefully
setting relevant payment.
For the product business units, the use of real or
nancial security and of credit insurance contracts
is standard
48
49
Non-Financial Information
50
This document represents the Consolidated
Disclosure of Non-Financial Information (“Non-
Financial Disclosure”, hereinafter also the "NFD",
"Non-Financial Statement” or "Sustainability
Report") prepared pursuant to the Belgian Code of
Companies (Legislative Decree no.
83180/11.09.2017) by Cenergy Holdings S.A.
(Cenergy, the Company) for nancial year 2021.
The objective of this NFD is to provide the
understanding of the business model, the activities,
the main risks and performance indicators of the
Company with regard to the following non-nancial
matters, also referred to as environmental, social
and governance (ESG) matters:
• Environmental
• Social and labour
• Human rights
• Anti-corruption and bribery
The NFD comprises of non-nancial information for
Cenergy Holdings S.A. and its subsidiaries that have
a material contribution in the non-nancial matters
under scope. The subsidiaries contributing in a
material way come from both operating segments.
The NFD has been drawn up in accordance with the
United Nations’ Sustainable Development Goals
(SDGs) reporting framework which embrace a very
wide and universal approach to all sustainability
issues facing today’s societies. The SDGs are a list of
17 interconnected global goals, designed to be a
"blueprint to achieve a better and more sustainable
future for all", that address current challenges
societies all over the globe are facing. The 17 goals
have 169 underlying, more specic targets that
stimulate action in areas of concern.
While Cenergy Holdings companies have a direct or
indirect impact on all 17 SDGs, the NFD focuses on
the SDGs directly impacted by the activities of the
Company and its subsidiaries. The SDGs reporting
framework serves as the basis for the reporting
structure of non-nancial matters of the Company
as it contains several non-nancial key performance
indicators (KPIs) for the monitoring of all main risks
associated with the non-nancial matters under
scope in the Belgian Code of Companies and
Associations. Due to the extensive number of KPIs
selected to monitor the Company’s and its
subsidiaries’ performance, the report is also based
on the GRI Standards of the Global Reporting
Initiative (GRI) for reasons of completion.
Table 6: Non-Financial Highlights for 2021
2021
Expenditures for environmental
management 3,735,725 EUR
Expenditures for Health
& Safety 2,864,903 EUR
Number of training hours 35,825
Manufacturing sites certied
with ISO 14001 100%
Manufacturing sites certied
with ISO 45001 75%
“2021 was a milestone year for Cenergy as we
created a comprehensive plan and roadmap to
address all environmental, social and governance
risks through extensive indicators to measure our
progress. Furthermore, we made an important step
in our contribution to a net-zero economy by
setting near and long terms targets for signicant
carbon reductions helping our customers reach
their own sustainability goals.”
Alexis Alexiou, CEO
Non-Financial Information
51
Business Model
The Holding invests with a long-term view, in
signicant (controlling or non-controlling) equity
investments. It brings in nance to further develop
its companies, to improve their competitive position
and protability, and it maintains an open line of
communication with the management of the
companies in which it invests, while valuing their
operational autonomy. A thorough description of
each business segment is provided in pages 16-38.
Cenergy’s subsidiaries play an active and important
role to the energy transition as well as the global
transformation to a climate neutral future. The
segment of cables is a signicant enabler of the
energy transition and the European Green Deal with
over 38% of its revenues coming from activity
eligible under the Taxonomy Regulation to be
considered as environmentally sustainable because
of the signicance of power cables in the expansion
of Renewable Energy Sources (RES) in the energy
mix and the gradual decarbonization of the global
economy.
The segment of steel pipes (Corinth Pipeworks) is
also well positioned to contribute signicantly in
the energy transition away from sold fossil fuels
with approx. 95% of its revenues coming from
natural gas and structural projects while at the
same time, Corinth Pipeworks has developed
solutions that can adapt to emerging technologies
such as Green Hydrogen and Carbon Capture and
Storage (CCS). The company, although not
currently included in the eligible sectors of the
Taxonomy Regulation, will play a signicant role in
the penetration of low carbon fuels that can replace
natural gas in the future.
7
The ambitions of the European Green Deal can only
be achieved with an increased contribution of
sustainable metals’ production. It is estimated that a
climate neutral future will demand 3-4 times more
metals and many of Cenergy’s subsidiaries’
products will face an increased demand.
Integration of sustainability principles in
business models
Due to the nature of the industrial processes of the
subsidiaries as well as the products’ markets, our
companies’ future has a strong correlation on the
ability to operate in a sustainable manner. The
subsidiaries are in the process of developing
additional goals towards carbon footprint
improvement as well as energy efciency measures
while at the same time becoming more engaged
with their suppliers in order to ensure responsible
sourcing of raw materials and services.
Furthermore, both segments have already
committed to the Science Based Target Initiative
(SBTi) to meet near-term (2030) and long-term net
zero targets at the latest by 2050. More specically,
Hellenic Cables has already submitted its targets
pending validation from SBTi, to halve its scope 1 &
2 emissions (50% by 2030 from a 2020 base year)
and reduce value chain emissions (scope 3,
including raw materials and commuting emissions)
by 25%, within the same timeframe. Hellenic Cables
also commits to increase annual sourcing of
renewable electricity to 80% and 100%, by 2025
and 2030, respectively. Over and above near-term
progress, Hellenic Cables projects to reach net-zero
greenhouse emissions across its entire value chain
before 2050, from a 2020 base year. Corinth
Pipeworks submitted its commitment and is waiting
for approval from SBTi.
Both the Company and its subsidiaries are
documenting their responsibility and commitment
to operating in a sustainable manner with respect
to all its stakeholders. Sustainable action and long-
term corporate policies have played a signicant
role in achieving and strengthening the resiliency of
the company under challenging market conditions
and changing customer demands.
The Company accepts its responsibility to current
and future generations of employees, customers
and all other stakeholders and is committed to
operate in the most sustainable way. It is committed
7. The contribution of Cenergy companies to the energy transition and the enabling of the low carbon economy is not captured
entirely under the Taxonomy Directive due to the very strict denitions of activities being environmentally sustainable. The Tax-
onomy Regulation disclosure is presented later in the text under “Environmental Responsibility”.
52
time manufacturing products that will play a
signicant role in making a climate neutral future a
reality.
The sustainable path the Company has chosen to
follow does not come without a demand for
actions. Based on what has been achieved so far,
subsidiaries are still facing numerous operational,
non-nancial risks that require constant
monitoring and mitigation while the continuously
changing and more demanding regulatory
framework, especially due to the upcoming “Fit-
for-55” Initiative, often creates conditions of unfair
competition with global competitors. Furthermore,
the current environment with increased energy
prices as well as energy security is of great
concern and needs constant measures to ascertain
business continuity.
ESG Roadmap
2021 was a very important year for Cenergy
Holdings as it adopted a comprehensive framework
for sustainability matters under which all its
subsidiaries are required to operate. The company
created an Environment, Social and Governance
Roadmap (“ESG Roadmap”) by assessing all related
risks and opportunities and integrating all these
matters to its business strategy. The integration
considered several new parameters affecting its
approach such as the European Green Deal and its
requirements, the strict regulatory framework the
subsidiaries operate under (especially in
environmental compliance and labor laws), the
emergency created by climate change and its
effects, water availability, health and safety
concerns, capability building, as well as the recent
challenges in the energy sector affecting all of our
companies.
The ESG roadmap begins with the adoption of
seven (7) core company policies covering the entire
framework of all environmental, social and
governance issues with each policy thoroughly
monitored by relative metrics, internal and external
controls for adequate due diligence on important
matters and regulatory compliance as well as
appropriate governance measures to ensure
transparency and accountability.
Furthermore, the ESG roadmap includes the
obligation of the industrial subsidiaries to establish
goals in strategic matters that include:
(1) the gradual replacement of all electricity supply
with Renewable Energy Sources (RES) as soon
as technically and economically feasible,
(2) the commitment to specic near and long term
carbon reduction targets on all carbon-intensive
activities,
(3) the evaluation of top tier suppliers on ESG
issues, and nally,
(4) the establishment of a ve-year concrete,
improvement action plan for health and safety
for industrial companies.
The rst two strategic goals are an important part
of the subsidiaries’ operational model as they are
fundamental for the production of low carbon
products.
Regarding the supply chain, it is important to note
that Cenergy is a corporate group with subsidiaries
in international operations and therefore part of the
global production supply chains. Given the different
environmental, human rights as well as labor
standards across the globe, it is the subsidiaries’
intention to embrace a common standard of ethical
values and legal requirements within the supply
chain.
The Company is committed to ensuring all
employees return home safely every day. This is
why it is of strategic importance for the subsidiaries
to provide a safe working environment and invest in
a continuous improvement program. During 2021,
Cenergy subsidiaries started a collaboration with a
globally leading consulting rm in health and safety,
in order to perform a health check of existing
management systems and aid in improving safety
programs through workshops, safety leadership
training, etc. Similar actions will continue in the
years to come in an effort to improve health and
safety performance.
The ESG Roadmap includes other areas of focus
such as
• environmental performance with water, waste
and chemicals management at the forefront,
• gender equality
• working conditions
• labour and human rights
• business ethics
• the establishment of a whistleblowing
mechanism
Sustainability Governance
Cenergy Holdings aims to embed sustainability in
all processes across its subsidiaries and it
53
recognizes the importance of clear and proper
governance structures to ensure current progress.
They are an essential ingredient in order to translate
the ambitions and goals into actions.
In 2021, the Company put in place the ESG
Roadmap, after its adoption by the Board of
Directors. In it, the Board is the endorser of the
sustainability strategy. An ESG working Group was
also established within the Board to discuss matters
in more detail and inform on a quarterly basis the
Board about progress in the realization of the ESG
Roadmap.
To ensure compliance and accountability by the
subsidiaries, a compensation scheme for
subsidiaries’ General Managers linked with
performance on ESG matters is planned for
implementation in 2022. Furthermore, an ESG
coordinator at each subsidiary coordinates the
various functions, facilitating relevant ESG actions
at subsidiary level and reporting progress to its
General Manager on a semi-annual basis.
Last but not least, the implementation of a
whistleblower mechanism covering all subsidiaries
in all geographical regions was essential in our
corporate governance structure. The mechanism, to
be implemented in 2022, establishes proper
communication channels for anyone either within or
outside the Holding and its companies, to report
unethical or illegal wrongdoing, while at the same
time ensuring comprehensive protection and
support for reporting persons.
All of the above structures were created to ensure
that our organic growth and economic success do
not come at the expense of fair competition, safe
working conditions or environmental protection.
Policy Framework
Cenergy Holdings is a listed holding company, with
a very lean structure, making long-term investments
focused on companies active in South Eastern
Europe in the energy and telecommunications
sectors. The Company strongly believes that its
subsidiaries must demonstrate the same
responsibility and share the same principles and
commitment in sustainability matters in order to
preserve long term value for its shareholders.
Cenergy companies are committed to operating
safely in an environmentally and socially
responsible manner and to partnering with their
customers and community stakeholders to build a
sustainable future for all parties involved. They
aim to establish a relationship of responsibility
and trust with its counterparties and to meet
expectations by keeping faith with commitments
undertaken. The responsible operation of all
companies is considered a primary goal and
fundamental for the sustainable operations of the
companies.
As mentioned earlier, during 2021 Cenergy adopted
seven policies that cover the entire spectrum of
environmental, social and governance matters.
These policies cover the following areas:
1. Environment
2. Energy and Climate Change
3. Health and Safety (H&S)
4. Labour and Human rights
5. Supplier Code of Conduct
6. Business Ethics and anti-corruption
7. Sustainability
They can be found at
https://cenergyholdings.com/about-
us/#our_policies.
The Company’s core values are reected in its
policies that its companies should follow, at a
minimum, regarding sustainability matters. The
subsidiaries in turn have developed their own
respective, detailed policies adhering to the
Holding’s policy principles at a minimum.
Environment
Cenergy companies are committed to operate with
responsibility and respect for the environment and
the society. Sound environmental management of
all production and storage installations is one of the
most important focus areas and is essential to the
sustainability of the companies’ s activities.
Companies shall operate in full compliance with
applicable national and EU environmental
legislation, as well as with the specic
environmental operational terms of each plant,
always in a state of absolute transparency and
participation in an open dialogue on environmental
matters with all the stakeholders.
Energy and Climate change
Cenergy companies are committed to being a
signicant contributor to the effort to tackle climate
change. As signicant consumers of both non-
renewable and renewable energy, they are
committed to buying and using energy in a
54
responsible, efcient, and cost-effective manner
with the aim to reduce the carbon footprint.
Health and Safety
Cenergy companies are committed to continually
promote health and safety for their employees as
well as for their partners, including customers,
suppliers, contractors and visitors. All the
companies shall strictly comply with all applicable
legislation and fully implement all suitable
standards, instructions and procedures regarding
health and safety.
Labour and human rights
Cenergy and its companies do not accept any
discrimination of race, gender, religion, age,
nationality, social or ethnic origin, disability, belief,
sexual orientation, or political and trade union
engagement. These principles apply to the
recruitment of new employees, to employees with
an employment contract and to the professional
merit-based promotion of their employees.
Cenergy and its companies reject any form of
forced labour. All work performed in the companies
must be voluntary. The employment of individuals
under the applicable statutory minimum age for
workers is prohibited.
The Holding and its companies recognise the right
of all employees and stakeholders to work with
dignity and believe that everyone in the Companies
is responsible for having due regard for human
rights.
They support and respect the fundamental
principles, as articulated in the Universal
Declaration of Human Rights. All Companies
support the protection of international human
rights within the sphere of their inuence, and will
not be complicit in human rights abuses. The
Companies’ policies and procedures adhere to all
applicable domestic laws concerning freedom of
association and collective bargaining, non-
discrimination, forced labour and underage workers
in the workplace.
Supplier Code of Conduct
The Supplier Code of Conduct has the goal of
ensuring that the business partners of Cenergy
companies share and promote its fundamental
values in ethics and sustainability principles. Our
companies require their Business Partners to
comply with all the principles in the Supplier Code
of Conduct and will correspondingly promote these
principles within their own supply chain.
Business Ethics & Anti-Corruption
Cenergy Holdings and its companies are committed
to conducting their business with honesty and
integrity and in compliance with all relevant laws.
All companies ensure transparency in all
interactions and acknowledge that they have a
moral and legal obligation to act responsibly in all
jurisdictions. The companies have put various
controls in place to ensure illegal and unethical
business activity does not occur. Their performance
and competitiveness are strengthened solely
through lawful conduct.
Cenergy Holdings and its companies also have
various internal controls to ensure all kinds of
bribery and corruption do not happen.
Furthermore, they are determined to maintain a
culture of honesty and opposition to fraud and
corruption. They also maintain a system of internal
accounting controls and keep their books and
records in reasonable detail that accurately and
fairly reect transactions and dispositions of
assets.
Sustainability
Cenergy, as a holding company, is committed
through its subsidiaries’ activities to meet the
needs of society by delivering products in a
reliable, inclusive and sustainable manner, and in
doing so, creating shared value for all stakeholders.
Its companies commit to operate in a way that
creates progress towards the UN Sustainable
Development Goals. Through this commitment,
they seek to help preserve the environmental,
social and economic assets that are fundamental
for society and important to our long-term value
creation. They build on the contribution of their
employees and fully integrate sustainability in their
strategy, business plans, operations, aiming to
maximise its positive effect by engaging with all
business partners.
Operational Due Diligence
The compliance of subsidiaries’ policies
incorporating Cenergy’s policies’ principles is
ensured by an extensive due diligence program
performed by Steelmet. As mentioned in the
Corporate Governance Section (pages 69-85),
55
Steelmet is a Viohalco subsidiary assigned, by a
subcontracting agreement, with the functional
support towards all Viohalco companies. Steelmet
employs subject matter experts who oversee policy
implementation, monitor performance and promote
best practices while ensuring decentralization and
entrepreneurial independence of the Business Units
and work independently of Cenergy management.
The progress of corrective actions as well as any
non-compliance matters are addressed and the
subsidiaries are required to commit to a veriable
course of action within a specic timeframe.
Steelmet reports on an annual basis to Cenergy’s
Audit Committee identifying potential risks on
these matters.
In addition, due diligence in the issues of
environment, energy management and health and
safety is performed by external auditors during
periodic management system certication reviews.
The entirety (100%) of the Holding’s production
companies under the scope of this report are
certied with the environmental Management
System ISO 14001:2015 and the Occupational
Health and Safety Management System ISO
45001:2018 while 75% of the companies under
scope of the NFD are certied with the Energy
management System 50001:2015.
Considering that health and safety matters are of
strategic importance to Cenergy Holdings, further
evaluations and health checks of the H&S programs
are performed by a third party (DuPont Sustainable
Systems) on a periodic basis to ensure a
transparent and objective assessment.
The above-mentioned management systems lay out
responsibility areas and operational practices for
these task areas across all companies’ operations
while at the same time create a regular monitoring
of compliance with internal and external audits. In
order to ensure that all subsidiaries are following a
continuous improvement path, Steelmet
professionals have close cooperation with
subsidiaries’ top management and pertinent
personnel in order to draw continuous improvement
plans with specic, prioritized, improvement actions
as well as benchmarks that need to be achieved
within certain time frameworks.
Materiality Assessment & Performance
The scope of this report focuses on the legal
entities with the most signicant impact and
potential non-nancial risks. Hece, this NFD report
focuses on “material” production companies in
terms of revenue and personnel employed. The
criteria used for their selection are:
Contributing more than 1% of the total Cenergy
Holdings’ consolidated revenue, and
Having a minimum of 100 employees.
These criteria lead to the selection of the following
four (4) entities:
1. Hellenic Cables (Cables segment)
2. Fulgor (Cables segment)
3. Icme Ecab(Cables segment)
4. Corinth Pipeworks (Steel pipes segment)
The above list includes companies from both
industrial segments. As companies in the same
segment have similar non-nancial issues and risks,
the information for the above-mentioned
companies are consolidated and presented on a
per-segment basis.
Due to the various geographic locations of each
company and the varying degree of material
environmental matters each company may be
facing (carbon and water risks vary among
subsidiaries depending on geographic location), it
was deemed necessary that a separate materiality
analysis is performed for each company. The
selection of the material issues reported in the
present report was based on an extensive
materiality analysis performed separately by each
company. The materiality analysis in each subsidiary
was performed according to the pertinent GRI
Standard within the last two years, while a new
materiality analysis will be performed within 2022
due to the rapidly changing business environment.
The stakeholders considered in the materiality
analysis were employees, customers, business
partners, academic institutions, governments, local
communities, local government, shareholders,
nancial institutions and suppliers.
Several issues are included and assessed in the
materiality analysis, such as environmental issues,
employee issues, working conditions,
compensation, products, social issues, business
ethics, etc. The identied topics form the basis of
this report. Based on these materiality analyses
from each company, the major and more commonly
found matters and associated non-nancial risks
were selected due to their potential to negatively
impact the companies’ business relations, products
and long-term sustainable operation.
The non-nancial issues identied in the materiality
analysis phase of the companies and corresponding
56
risks were then correlated to non-nancial metrics
from the SDGs’ reporting framework. Furthermore,
GRI Standards were selected to supplement SDG
metrics to cover the entire spectrum of metrics for
each material matter to assess the performance and
risk exposure.
The selection of major and shared areas of material
impact by the individual companies’ materiality
analysis as well as a stakeholder assessment steered
the list in the following Table.
Water availability and
wastewater management
Energy efciency, sources
of energy
Climate change impact
Environmental protection
and responsible
production
Occupational health and
safety
Labour and human rights
Responsible sourcing
Transparency, Anti-
Corruption
Environment
Environment
Environment
Environment
Social
Social
Social
Governance
Water intensity, water availability, compliance with
wastewater discharge limits
Energy intensity, availability of low carbon energy at
competitive cost
Carbon emissions of production, carbon intensity of raw
materials
Accidental releases to the environment, waste
management, circularity of production process,
hazardous chemicals monitoring
Provision of safe working environment
Equal rights among workers, labour conditions, training
for employees’ skills development
Environmental impact and human rights in the supply
chain
Business ethics, data privacy, compliance with regulatory
system
Table 7: Main non-nancial risks of concern identied for Cenergy Holdings companies after the MA.
Issue identied Category Relevant SDG Companies’ area of material impact
in MA under BCCA
The reporting structure for each of the companies
in the scope will be analysed per selected SDG.
Environmental responsibility
SDG6 – Water availability and wastewater
management
Water is an essential element of Cenergy
companies’ production process and therefore its
responsible use is critical for the companies’
business continuity. Responsible use of water
includes:
• the reduction of water intensity utilizing water
conservation technologies where possible, the
continuous monitoring of consumption so leaks
can be detected on time and the preventive
maintenance of water networks to avoid water
losses
• carefully assessing water availability and the
adoption of measures, when needed, for
adequate alternatives of supply in times of
water shortage
• proper maintenance and operation of
wastewater treatment plants in order to have
full compliance with water discharge limits
The availability of industrial water is of critical
importance and the majority of the plants have a
program of water consumption monitoring in order
to improve their water intensity. There are
continued efforts to decrease water consumption
as part of the companies’ long-term improvement
of their environmental footprint.
57
The total water consumption during 2021 showed
a signicant improvement for both segments
despite the higher production volumes in the
cables segment which proves that the water
reduction efforts have a signicant effect on the
water intensity of the individual companies. The
water intensity of the individual companies all
showed a small improvement while ICME Ecab
had a signicant improvement (17%) due to
continuous efforts to address water leaks issues.
During 2021, none of the subsidiaries were affected
by water shortages and water reserves in all
geographic locations were sufcient. It is important
to note that none of Cenergy ’s companies is
operating in a declared water-stressed areas.
However, the companies monitor water availability
and the hydrologic cycle as there may be changes
in the future, especially considering the expected
effect of climate change in the Mediterranean
region. The sourcing of water varies depending on
the region. Approximately 84% of the companies’
water comes directly from extraction wells while
the rest 16% is sourced from local water companies.
Cenergy companies operate two installations that
are subject to the Industrial Emissions Directive
(Directive 2010/75/EU) and are therefore required
to meet very stringent emissions limits in
atmospheric emissions standards as well as water
efuents.
The above-mentioned plants are required to meet
Best Available Technique Associated Emissions
Levels (BAT-AELs) that are among the strictest in
the world and require extensive investments in
environmental infrastructure as the plants require, in
many cases, high level of water treatment to meet
local discharge limits.
The discharge points are regularly monitored
periodically, by specialized personnel. The
discharge of treated wastewater is a very important
issue especially for the companies discharging
treated wastewater directly to a water body and
not to a wastewater network for further treatment.
The measurement of possible incidents of discharge
limits exceedances is critical in identifying the level
of compliance as well as the possibility for any need
of corrective measures.
During 2021, there were no nes or legal breaches
in any of the companies’ collected wastewater
samples.
SDG 7 – Energy efciency and sources of energy
Cenergy companies are electricity intensive
because of the nature of the production processes.
Energy efciency of industrial operation is an
extremely important matter that besides its obvious
economic implications, has also a direct effect to
the indirect carbon footprint (Scope 2 emissions).
Energy efcient operations are considered the
Company as absolute prerequisites for securing
long-term viability. Identifying investment
opportunities in energy efciency measures
through periodic energy audits performed by
specialized consultants remains the focus of
energy efciency efforts for the companies. As
three out of four plants in the scope of the NFD
are already certied with the Energy Management
System ISO 50001:2018, they are required to
demonstrate continuous improvement of energy-
related KPIs.
Table 8: SDG6 – Water management
Cables Steel pipes
Year 2021 2020 2019 2021 2020 2019
Water consumption (10
3
m
3
) 305 315 403 44 63 71
58
Cenergy companies generally purchase electricity from the main energy suppliers of the country they operate as none
owns an energy source. The energy intensity of each segment is shown in the table below:
Table 9: SDG7 – Energy Intensity
Cables Steel pipes
Year 2021 2020 2019 2021 2020 2019
Total energy consumption (10
3
MWh) 169 153 151 34 48 56
Table 10: SDG7 – Renewables share in electricity
8
Cables Steel pipes
Year 2021 2020 2019 2021 2020 2019
Renewable energy share in
electricity
9
(%) 32.7 32.8 29.6 25.9 28.9 22.9
8. All data based on AIB 2019 – 2020 residual mix reports (Greece & Romania). 2021 grid RE% same as 2020 gures as 2021 ones
were not available.
9. Renewable energy share in energy grid expressed as a proportion of total electricity energy consumed.
The cables segment experienced an increase in
total energy (thermal and electrical) consumption
in 2021 due to higher production volumes. The
energy intensity of the individual companies
remained at similar levels as in 2020 with small
variations (<2%) from year-to-year. At the same
time, the steel pipes segment had a signicant
decrease in total energy consumption, attributed to
lower production volumes.
Besides energy consumption per se, companies try
to have access to low carbon electricity in order to
minimize their carbon footprint as well as decrease
their exposure to carbon pricing through indirect
emissions. The numbers shown in the following
table reect the grid energy mix and renewable
energy share for the respective grid. The
companies’ strategic goal is to cover the entirety of
their electricity needs with renewable energy. Given
their geographic location and the existing power
market regulatory frameworks in these countries,
there are currently limited available viable routes
towards this goal.
In the meantime, they continue to explore
alternatives for direct supply of renewable
electricity, such as bilateral or market-based Green
PPAs. The Company is currently in the nal stages
of securing such PPAs, expected to deliver 80%
RES power by 2025 at the latest.
SDG 9 – Climate change impact
Climate protection is very high on the European
Commission agenda for obvious reasons. Climate
change presents a threat to the viability of the
planet and the EU has the ambition of becoming
the rst climate neutral continent in the world by
2050. Cenergy and its subsidiaries support EU’s
“Roadmap to 2050” and have committed to
actively and decisively contribute by reducing
carbon emissions in their operations as well as
through low carbon enabling products that are vital
both in the energy transition journey as well as for
customers to meet their own sustainability goals.
The biggest challenges the companies commonly
face is the minimization of carbon emissions, both
direct ones (Scope 1) and indirect ones (Scope 2)
but also Scope 3 emissions (through their supply
chain) as the latter generally contribute the vast
majority of the total embedded emissions in
products delivered.
59
Due to their relatively high electro-intensity,
Cenergy companies have a much higher Scope 2
emissions than Scope 1 emissions. The total
footprint gures below (Scope 1 and 2) are
reported according to Greenhouse Gas Protocol
Scope 2 Guidance
10
which is the most commonly
used standard internationally.
Both segments have already committed to the
Science Based Target Initiative (SBTi) to meet near-
term (2030) and long-term net zero targets at the
latest by 2050. More specically, Hellenic Cables
has already submitted its targets pending
validation from SBTi, to halve its scope 1 & 2
emissions (50% by 2030 from a 2020 base year)
and reduce value chain emissions (scope 3,
including raw materials and commuting emissions)
by 25%, within the same timeframe. It also commits
to increase annual sourcing of renewable electricity
to 80% and 100%, by 2025 and 2030, respectively.
Over and above near-term progress, Hellenic
Cables projects to reach net-zero greenhouse
emissions across its entire value chain before 2050,
from a 2020 base year. Corinth Pipeworks, on the
other hand, is still in the process of evaluation of its
commitment to the SBTi.
Total carbon emissions are shown below to depict
the materiality of carbon emissions and the
corresponding exposure of each segment. The
higher total number in the cables segment
corresponds to the increased production volume
in 2021 while the fall in the steel pipes segment
reects the opposite. Carbon intensities of
individual companies remained at similar of
slightly improved levels compares to 2020 gures.
10. See https://ghgprotocol.org/scope_2_guidance.
Table 11: SDG9 – Carbon emissions (tons CO
2
)
Cables Steel pipes
Year 2021 2020 2019 2021 2020 2019
Direct Emissions – Scope 1 14,724 15,743 13,989 1,797 3,212 2,434
Indirect Emissions – Scope 2 40,510 36,594 42,024 13,096 19,887 26,740
Total Carbon Emissions 55,235 52,337 56,013 14,893 23,099 29,174
SDG12 – Environmental protection and
responsible production
Cenergy and its subsidiaries make a continuous
effort to minimize the environmental impact of their
operations. Vital to this effort is the implementation
of prevention measures in chemicals storage and
use as well as continuous monitoring for the case of
accidental incidents (spills or leaks) to the
environment. All incidents with a potential to
impact, directly or indirectly, the environment are
closely monitored. Procedures are developed for
their immediate detection, investigation and
immediate remediation, if they do occur. All
necessary safety measures (secondary
containments, implementation of zone owners, etc.)
have already been implemented by the companies,
so the probability of an incident is now very low.
During 2021, no such incidents with any impact on
the environment occurred. All accidental spills of
hazardous chemicals that occurred were contained
within the secondary containment structure in place
and were immediately resolved without
consequences. It is important to note that all
installations under scope of the NFD are certied
according to ISO 14001:2015.
As part of the ESG Roadmap, in 2021 Cenergy
subsidiaries implemented a new initiative (to be
completed in 2022) to identify, record and ag
associated hazard risks of all the chemicals
purchased, stored and used in their industrial plants.
Cenergy companies are committed to robust waste
management. Their principal aim is waste
generation reduction but they also seek
improvements related with reusing and recycling, as
well as identifying contractors with a more
environmentally friendly treatment method. Their
goal is to maximize closed loop cycles according to
circular economy principles and the European
Green Deal initiatives.
Waste volumes generally increased in 2021 due to
the higher production volumes in the cables
60
segment while they decreased at the pipes
segment, as production volumes fell. Although
waste generation intensity varies signicantly
depending on the production process, the waste
intensity per company has remained at similar
levels. The portion of the generated waste that is
sent for reuse, remanufactured or recycling
remained at high levels for all segments
supporting the transformation to a circular
economy:
Table 12: SDG12 – Waste management
Cables Steel pipes
Year 2021 2020 2019 2021 2020 2019
Waste generation (t) 15,371 15,211 14,162 16,130 25,077 27,598
Waste reused, re manufactured, recovered
92 91 89 99 99 99
and recycled (% of total waste generated)
EU Taxonomy
The EU's Regulation on the establishment of a
framework to facilitate sustainable investment (the
Taxonomy Regulation EU 2020/852) requests
(Article 8) that companies subject to an obligation
to publish non-nancial information shall disclose in
their NFD the proportion of their turnover, capital
expenditure and operating expenditure related to
“Taxonomy-eligible and Taxonomy non-eligible
economic activities”.
11
Cenergy Holdings has evaluated the business
activities against the EU Taxonomy eligibility criteria
for climate mitigation and climate adaptation and
has subdivided eligible activities into three types
(cf. Disclosures Delegated Act EU 2021/2178):
Eligible economic activity Description NACE code Climate Change Climate Change
Mitigation Adaptation
3.1 Manufacture of Manufacture of insulated wiring C27.32
renewable energy cables products used for the
technologies renewable energy sector
3.8 Manufacture of Secondary aluminium production C24.42
aluminium
4.9 Transmission and Construction and Installation C35.12
distribution of electricity services of electricity C35.13
distribution networks
The cables segment produces cables products that
are used in various applications including renewable
technologies manufacturing (3.1), as well as
installation projects for transmission and
distribution of electricity (4.9). Moreover, Fulgor SA
engages in secondary aluminium production (3.8).
11. Activities that qualify as environmentally sustainable under Articles 3 and 9 of the same Regulation.
61
12. All amounts are in EUR million.
13. Number of incidents per 1 million working hours that led to an employee’s absence from work for a full shift.
Table 13: EU Taxonomy – Cenergy Holdings
12
Economic activities Absolute % of Absolute % of Absolute % of
Turnover turnover CAPEX CAPEX OPEX OPEX
A. Eligible activities
Production of secondary aluminium 22.8 2.2% 0.6 1.4% 0.6 4.4%
Production of cables products and provision
of services 267.5 25.4% 16.5 37.0% 3.6 26.0%
Environmentally sustainable activities (A.1) 290.3 27.5% 17.1 38.4% 4.2 30.5%
B. Non-eligible activities
Non-eligible activities (B) 764.0 72.5% 27.4 61.6% 9.5 69.5%
Total (A+B) 1,054.3 100.0% 44.5 100.0% 13.6 100.0%
Further information about the allocation of
turnover, Capex and Opex to the environmental
objectives of the EU Taxonomy can be found in
pages 177-179.
Responsibility towards Society
SDG 3 – Occupational health and safety
The nature of Cenergy companies results in
different occupational health and safety risk proles
per company. The difference is attributed to many
factors such as type of production, (kind of
metallurgy (thermal or not), loading/unloading,
chemical coating, etc.), technology of infrastructure,
equipment condition and safety features,
manufacturing processes and materials used.
Irrespective of the nature of the activity, the health
and safety of the companies’ personnel is of utmost
importance and the companies invest signicant
amount of resources to improve working conditions
and create a safer working environment.
Companies are committed to provide their
employees a safe working environment through
investments in improving existing safety
infrastructure (machine guarding, LOTOTO),
increasing risk awareness and Behavior Based
Safety through training programs and operating
solid procedures and management systems. The
Holding’s companies make a continuous effort to
improve risk capacity understanding, develop
detailed risk assessments by conducting a
systematic hazard identication and associated
risks’ evaluation, subsequently facilitating the
implementation of reasonable control measures.
Emphasis is also given in performing accurate
incidents analysis to ensure there is a robust
framework in place which provides for a systematic
approach to incident reporting, management and
investigation, thereby enabling effective corrective
and preventive actions to be set.
During 2021 and as part of the ESG Roadmap
strategic goals, all subsidiaries were required to
establish a ve-year improvement plan with
concrete actions. 2022 will be the rst year of the
action plan implementation and Steelmet
personnel will monitor closely the timely
implementation. It is important to note that all the
installations under scope of the NFD are certied
according to ISO 45001:2018 so the installations
are subject to external audits by the certifying
bodies as well.
As health and safety matters are of strategic
importance to Cenergy ’s subsidiaries, further
evaluations and health checks of the H&S programs
are performed by a third party (DuPont Sustainable
Systems) on a periodic basis to ensure a
transparent and objective assessment. These
assessments are additional tools for identifying
improvement areas.
During 2021, there was a deterioration in the key
metric of Lost Time Incident Rate (LTIR)
13
for the
cables segment and the companies have identied
the improvement areas they will focus on in 2022
and in subsequent years to create a safer working
environment:
62
Table 14: SDG8 – Health & Safety data
Cables Steel pipes
Year 2021 2020 2019 2021 2020 2019
LTIR 8.8 6.4 5.4 1.7 1.7 1.0
SR 105 111 149 27 119 106
No. of training hrs per employee 6.4 6.4 10.2 6.2 5.3 3.7
No. of fatalities 0 0 0 0 0 0
The Severity rate (SR), the number of lost work
days per million working hours, a main indicator
used to show the seriousness of each incident, on
the other hand, shows a declining trend as both
segments improved their performance in 2021:
Besides the two indicators already mentioned, the
companies have an extensive list of internal leading
indicators to guide them through the improvement
process. Training in health and safety matters is of
critical importance and emphasis has been given to
the completion of a training matrix that is
customized to each job description and the
completion of all necessary sessions for each
employee.
SDG5 & SDG8 – Labour and human rights issues
All companies recognise the contribution of their
people to current success and future growth. In line
with this, all subsidiaries are committed to
implementing responsible working practices.
The following table gives some indicative KPIs like
employee turnover, the percentage of employees who
leave the organization voluntarily or due to dismissal,
retirement, or death in service and the average hours
of training per employee per year. Total workforce
equals the total number of employees at the end of
the year (December 31st data).
Table 15: SDG8 – Labour KPIs
Cables Steel pipes
Year 2021 2020 2019 2021 2020 2019
Employee Turnover 12.7 10.4 19.3 30.0 15.0 7.5
% of women 12.3 15.8 13.3 8.5 9.8 9.5
Hours of Training 16.4 12.6 13.3 11.3 8.3 12.3
The high turnover rate in the steel pipes segment is
attributed to the necessary cost optimization
program in Corinth Pipeworks’ plant executed
during 2020H2 – 2021Q3 and due to the signicant
production cutback.
Cenergy and its subsidiaries have taken a series of
steps to support and increase the share of female
employees, such as supporting families with young
children with child-care subsidies on top of their
base salaries. They have established an Employee
Code of Conduct that is based on the principles of
the Labour and Human Rights and Business Ethics
and Anti Bribery Policies adopted by the
subsidiaries.
During 2021 and as in previous years, no incidents
of discrimination were recorded or reported
within the existing grievance mechanisms and no
incidents of forced or voluntary child labour
occurred.
As part of the ESG Roadmap established in 2021, all
subsidiaries rolled out two new ambitious and
important initiatives to support the transparency
and compliance of all companies with the adopted
policies. The rst initiative is an extensive employee
training in matters of labour and human rights,
diversity equality and inclusion, and workplace
harassment and prevention. The training
programme, due to its size, will be completed
63
within 2022 and relative KPIs will be presented in
next year’s NFD.
The second initiative is the establishment of a
whistleblower mechanism for all Cenergy
companies which will be implemented in 2022. The
mechanism establishes the proper channels of
communication for anyone either within or outside
Cenergy and its subsidiaries to report illegal
behavior regarding labour or human rights
practices, environmental compliance and business
ethics issues while at the same time ensuring full
protection and support for reporting persons.
SDG 12 – Responsible sourcing
Cenergy companies are committed to operate
responsibly in all their business activities while at
the same time expecting the same responsibility
from its business partners. Due to their relative
position in the value chain, the subsidiaries rely
heavily on primary metal producers often located
outside the EU. It is therefore of utmost importance
that the business partners and suppliers of raw
materials practice sound management in all ESG
matters. Suppliers are, after all, an important
resource and our companies have the intention to
work closely with strategic suppliers in order to
establish relationships based on the same ethical,
social and environmental standards.
As part of the ESG Roadmap established in 2021,
two new initiatives were created to monitor
business partners’ performance on sustainability
issues. First, the Holding and its subsidiaries
adopted the Supplier’s Code of Conduct (SCoC)
which requires the companies’ business partners to
show the same concern for employee health and
safety, respect and protection of the environment,
and respect for labour and human rights. All
subsidiaries during 2022 will request that tier 1 and
2 suppliers of raw materials (on a money spent
basis) to adopt the SCoC. The results of the
initiative will be presented in a relative KPI in next
year’s NFD.
The second initiative requires the evaluation of all
Tier 1 suppliers of raw materials to be evaluated on
sustainability matters by a world class company in
this eld, Ecovadis. The results of the initiative will
also be presented in a relative KPI in next year’s
NFD. The purpose of this initiative is to increase
transparency in the supply chain and to identify
risks that may appear in the future. In addition,
responsible sourcing is vital to the delivery of
products that carry the minimum environmental
and social impact. Our companies are convinced
that only through responsible sourcing, nal
products delivered to customers can help them
achieve their own sustainability goals.
The Responsible Sourcing initiative of Cenergy ’s
ESG Roadmap includes close monitoring of
suppliers’ compliance with the Conict Minerals
Regulation in order to ascertain that no material is
procured from conict countries.
Implications from Covid-19
The COVID-19 pandemic affected society to an even
greater degree during 2021. Although the various
countries in which we operate relaxed some of the
preventive measures in place during 2021, our
companies retained preventive measures in order to
attain business continuity (orders for critical
materials placed in advance, alternative suppliers
identied, increased safety stock for certain
materials) and maximum protection of employees
and their families.
As a result, no interruption of regular operation was
experienced throughout 2021 including projects
under construction/commissioning. Overall, due to
the mitigating measures taken by the subsidiaries,
COVID-19 was not disruptive to any of the
companies meeting its goals and actions, including
employee training which during 2020 decreased
signicantly. The companies were able, for the most
part, to return to previous or higher levels of
training with more sessions and less people present
in order to avoid super-spreading events. An even
more ambitious training program is planned for the
majority of companies in 2022 in order to
compensate for the loss of scheduled personnel
classroom training in 2020.
During 2021, emergency response plans remained
in place with small variations depending on the
various infection waves throughout the seasonal
changes of the year. Cenergy Holdings and its
companies implemented multiple preventive and
mitigating measures in all aspects of work life that
included frequent preventive PCR testing with ca.
35,000 PCR tests performed by employees at
companies’ expense, transportation to and from
work, obligatory mask use in all indoor company
sites, extensive hygiene measures, medical advice
and support to all work force, especially vulnerable
groups. Remote work varied depending on the risk
exposure and the density of seating among
employees always in compliance with guidelines or
mandatory requirements by the competent national
authorities. The companies’ management was
supportive to all employees throughout the
64
pandemic by allowing for ample quarantine time
when employees were exposed to conrmed cases.
In addition, a dedicated 24-hour telephone support
help line by a specialized service was offered to all
employees throughout this trying period of
quarantines and personal distress. The enhanced
health and safety preventive and mitigating
measures remain in place across companies and the
same model may be followed on a risk-based
approach.
Governance
SDG 16 – Transparency and Anti-Corruption
Cenergy Holdings acknowledges the signicance of
business ethics and anti-corruption issues. In order
to ensure the implementation of the respective
policy, it has asked all subsidiaries to apply, with the
utmost care, the proper internal controls and
procedures of operation demonstrating
accountability, fairness and transparency in the
relationship with all stakeholders.
As part of the ESG Roadmap established in 2021,
companies implemented a new initiative for
employee training in matters of business ethics and
code of conduct, and anti-bribery and corruption.
The training programme, due to its size, will be
completed within 2022 and relative KPIs will be
presented in next year’s NFD.
The training programme aims at management and
employees with a special risk prole due to the
nature of the job. The training will include special
sessions for the management teams in order to
ensure that all matters involving business ethics
(money laundering, antitrust and compe¬tition
laws, anti-corruption, data privacy, etc.) are well
comprehended.
Furthermore, a second initiative established in the
ESG Roadmap in 2021 is the whistle-blower
mechanism, intended to detect and prevent illegal
behaviour at an early stage. The whistle-blower
mechanism will be fully operational in 2022. The
mechanism establishes the proper channels of
communication for anyone either within or outside
Cenergy Holdings and its subsidiaries to report
illegal behaviour regarding labour or human rights
practices, environmental compliance, and business
ethics while at the same time ensuring
comprehensive protection and support for reporting
persons. The mechanism will be in compliance with
the European Whistleblowing Directive.
During 2021, no incident of corruption or bribery
was recorded or reported within the existing
grievance mechanisms while there were no
incidents of data privacy breaches as reported by
the GDPR Data Protection coordinators of each
company. In addition, there were no nes paid due
to settlements for unethical business practices or
corruption issues.
Management of Non-Financial
Risks
The Holding’s companies face a variety of non-
nancial risks as previously mentioned and has a
risk identication process in order to identify those
risks and implement mitigation measures wherever
possible. All industrial activity-related risks such as
environmental, health and safety, etc. are
exclusively associated with subsidiaries that have
industrial operations.
Managing non-nancial risks is considered to be a
very critical task by management as these risks
have the potential to create a direct or indirect
impact on the companies’ continuous operation as
well as to create future liabilities.
In order to improve risk management in non-
nancial issues among subsidiaries, the Company
has established policies and procedures for
managing risks that all company personnel must
comply with. Furthermore, the ESG Roadmap has
established the periodic monitoring of several key
leading and lagging indicators in order to monitor
progress on all ESG-related risks as well as risks that
the companies anticipate will be or have the
potential to be disruptive in the future. Such risks
relate to new legislation coming into effect in the
future such as the “Fit-for-55” package of
legislative initiatives.
The companies have their own skilled personnel and
consultants managing these matters and they
implement certied management systems ISO
14001:2015 and ISO 45001:2018 as well as the energy
management system 50001:2015, thus providing an
additional management tool for all related risks. The
management systems are the pillars for taking the
proper preventive steps, specic plans and actions,
and provide the continuous improvement culture
necessary to ensure improving performance and risk
management.
Risks are analysed from a nancial, environmental
and social perspective in order to get a full
understanding of the complete array of impacts of
non-nancial issues. Below is a description of the
65
main non-nancial risks identied that may affect
business operations, reputation, and ultimately the
nancial results of Cenergy.
Environmental issues
The major risks related to environmental issues are
regulatory compliance, climate change and water
management.
Regulatory compliance
The regulatory environment in which Cenergy
companies operate is very demanding as industrial
operations in Europe, especially in metal
processing, are subject to a broad range of laws and
regulations that are updated on regular intervals.
The regulatory framework imposes stringent
standards that require a continuous effort in human
and capital resources in order to comply. Hazardous
waste management, discharge limits, atmospheric
pollution abatement, are some examples of
environmental matters that can create potential
liabilities for companies. The associated risks extend
to nancial risks (regulatory nes, pollution
liabilities, remediation requirements), environmental
risks (environmental damage to groundwater,
surface soils, ecosystems) and social (impact to
local communities’ quality of air or water supplies).
All those risks are managed by the established
environmental management programs and trained
professionals at Cenergy companies.
Climate change
The proposed EU “Fit-for-55” package, though
ambitious and absolutely necessary to address the
biggest current challenge for the environment,
poses several risks for the companies’ carbon
intensive industries due to its shortfall to create a
level-playing eld with industries operating outside
the EU. The proposed Carbon Border Adjustment
Mechanism (CBAM), although intended to protect
carbon intensive companies from carbon leakage, is
currently insufcient to provide the framework for
avoiding circumvention by resource shufing of
extra-EU companies while at the same time the
current plan gradually decreases free allocation and
does not address much needed measures to allow
for a WTO-compatible, carbon cost recovery for
European exports.
Climate change is an area with a primarily nancial
impact on the company and, at a lesser degree,
with respect to the environment and society, due to
the relatively low Scope 1 and 2 carbon emissions.
The nancial materiality stems from the fact that
the subsidiaries have transition as well as physical
risks.
Transition risks relate to risks that arise from the
transition to a low carbon economy such as policies
that:
• Require demanding energy efciency measures;
• Impose carbon pricing mechanisms which
intend to increase carbon price, thus, increase
cost of electricity;
• Impose CBAM on aluminium imports affecting
the supply chain of aluminium in power cables.
• Impose CBAM on steel raw materials affecting
the supply chain of steel in steel pipes
The EU’s new ambitious goal of 55% reduction
climate target in 2030 will further increase carbon
leakage risk, and while there are efforts to mitigate
it, the nancial materiality remains signicant.
Physical risks relate to risks associated with long
chronic effects such as extreme weather, rising sea
levels and reduced fresh water availability. The
physical risks for the companies remain low due to
the geographical locations of most plants, but
Cenergy and its companies continuously monitor
changing conditions that may create physical risks
in the future.
The risk mitigation measures taken by the
companies are, among others, the following:
• early policy trend identication and cooperation
with national and European federations in order
to inform policy makers of the risks for the
European metals industry;
• participation in sector studies to identify all
related risks for carbon leakage and wider
implications to the national economies as well
as disruption to supply chains in the countries
Cenergy companies operate;
• development of action plans for investments in
energy efcient equipment and carbon
abatement measures;
• increase of capacity for utilization of secondary
raw materials instead of primary in the cables
segment; and
• proper budget management practices that
incorporate projected carbon costs.
From an environmental and social perspective,
production plants of Cenergy subsidiaries are
characterized by very low direct emissions in
greenhouse gases in the atmosphere due to their
66
routine production operations, but higher indirect
emissions through consumption of electricity (more
than 80% of total emissions of Cenergy companies
relate to indirect emissions). The sum of the direct
and indirect footprint of Cenergy Holdings’
subsidiaries is shown in the previous chapter as
these are the most closely watched KPIs at each
company level.
As for risks related to the supply chain, upstream
production of raw materials like aluminium, copper
and steel introduce signicant carbon emissions to
the environment. Careful selection of raw materials
suppliers is critical to identify areas of improvement
and is considered the highest contributor to the
overall emissions of the subsidiaries’ products. As
more than 90% of the carbon footprint of the nal
products is attributed to upstream activities, all
subsidiaries are in the process of identifying and
evaluating suppliers based on their potential
exposure to higher carbon costs as the increasing
cost of carbon may eventually affect their
competitiveness.
Social and labour issues
The major risks related to social and labour issues
are the occupational health and safety of the labour
force as well as employee issues. These risks are
signicant from a nancial and social perspective.
Due to the nature of Cenergy companies’ industrial
operations (thermal metallurgy with high
temperature processes in the cables segment,
heavy equipment, work at heights, etc.) there is an
inherent risk for accidents among either full time
employees or part-time contractors with a
substantial impact on human life, local communities
and reputation. Regarding the former, all
subsidiaries have in place systems that include a
comprehensive approach for improvement
including, among others, equipment upgrading,
implementation of management principles (safety
audits, guidelines, work instructions, etc.), the
establishment of a targeted safety training program
and the direct involvement of management.
The companies’ management clearly understand
how important it is to provide a safe working
environment to the labour force and how vital it is
to continuously strive for improvement as this is
fundamental for good labour relations and business
performance.
Employee-related risks also include potential
violations of equal treatment and statutory working
hours, as well as social action by personnel that
may lead to operation interruption risks (stoppages,
slowdowns). These risks are mitigated by
subsidiaries through a comprehensive employee
Code of Conduct, periodic personnel evaluation, a
fair remuneration policy together with proper
training and regular internal audits.
Finally, social risks are especially signicant in the
supply chain of Cenergy’s companies as the raw
materials used are located in various geographic
locations with varying degrees of labour and
environmental standards. Typically, the vast
majority of the environmental and social footprint
of our companies’ products originates from the
supply chain.
The Responsible Sourcing initiative described in the
previous chapter targets the evaluation and
engagement of all major suppliers to identify
business partners with poor ESG practices.
Following the evaluation, Cenergy companies will
engage them regularly to monitor progress on an
action plan or look for alternative suppliers that
meet the companies’ ethical and environmental
standards.
Human rights issues
The major risks related to human rights are related
to the supply chain of the subsidiaries since many
suppliers are not located in Europe or North
America. Cenergy companies are in the process of
developing a proper and comprehensive supplier
evaluation management system in order to
ascertain that all major suppliers meet certain
sustainability standards such as standards in
minimum environmental performance and
compliance, worker safety, labour conditions,
human rights and business ethics.
Anti-bribery and corruption risks
The risks related to anti-bribery and corruption lie in
the failure to conduct business operations ethically
and to comply with the laws and regulations in the
jurisdictions in which Cenergy Holdings and its
companies operate. Examples could be the
intentional misstatement of nancial reporting or
the by-passing of internal controls.
To prevent and mitigate such risks, the whistle-
blower mechanism was created in the ESG
Roadmap initiative and will be implemented in 2022
so as to ascertain that any illegal behaviour can be
reported without retribution to the person
reporting it. Furthermore, the internal audit function
67
is responsible for monitoring and reporting timely
and properly any related deviation or misconduct.
Simultaneously, subsidiaries separately organize
training courses and communication actions in
order to increase awareness and stress the
importance of compliance with the Employee Code
of Conduct.
Detailed sustainability reports of the major
companies in the Holding’s portfolio are found on
their websites:
• Hellenic Cables –
http://www.cablel.com/778/en/corporate-
responsibility-and-sustainability-reports/
• Corinth Pipeworks –
http://www.cpw.gr/en/media-
center/Publications/
68
69
Corporate Governance StatementCorporate Governance Statement
70
As a company incorporated under Belgian law and
listed on Euronext Brussels, Cenergy Holdings is
committed to high standards of corporate
governance and relies on the 2020 Belgian
Corporate Governance Code (the “Corporate
Governance Code”) as a reference code. The
Corporate Governance Code is available on the
website of the Corporate Governance Committee
(https://www.corporategovernancecommittee.be/en).
The Corporate Governance Code is structured
around principles, provisions, guidelines, and the
“comply or explain” principle. Belgian listed
companies must abide by the Corporate
Governance Code but may deviate from some
provisions, if they provide a considerate explanation
for any such deviation.
During the 2021 nancial year, the Company
complied with the principles of the Corporate
Governance Code, except for the following:
Principle 7.6: “A non-executive board member
should receive part of their remuneration in the form
of shares in the company.”
Principle 7.8 “The variable part of the executive
remuneration package should be structured to link
reward to overall corporate and individual
performance, and to align the interests of the
executives with the sustainable value-creation
objectives of the company.”
Principle 7.9: “The board should set a minimum
threshold of shares to be held by the executives.”
Explanation: The remuneration policy of the
Company is set out in the remuneration report.
Such policy does not provide for neither variable
remuneration, nor share-based remuneration. The
Board of Directors considers the proposals
submitted by the Nomination and Remuneration
Committee in order to determine whether, and to
what extent, a modication of this policy is
justied in the light of the Company’s objectives
and strategy. The Nomination and Remuneration
Committee is in the process of developing a
variable remuneration programme for certain
levels of the executive management. At a
minimum it shall include short term incentives
based on the performance of the company in
respect of nancial, human resource, and ESG
factors.
The Board of Directors of Cenergy Holdings has
adopted a Corporate Governance Charter to
reinforce its standards for the Company, in
accordance with the recommendations set out in
the Corporate Governance Code. It aims to provide
a comprehensive and transparent disclosure of the
Company’s governance and is reviewed and
updated as needed. The Corporate Governance
Charter is available on the Company’s website
(https://www.cenergyholdings.com/).
In order to have a complete overview of Cenergy
Holdings’ corporate governance rules, the
Corporate Governance Statement must be read in
conjunction with the Company’s Articles of
Association, the Corporate Governance Charter as
well as the corporate governance provisions laid
down in the Belgian Code of Companies and
Associations (“BCCA”).
As a company with a secondary listing on the
Athens Stock Exchange (Athex), Cenergy Holdings
also complies with the provisions of the applicable
Greek capital market laws and regulations.
Board of Directors
Role
Cenergy Holdings has chosen the one-tier
governance structure under the Corporate
Governance Code. The Board of Directors (the
“Board”) is vested with the power to perform all
acts that are necessary or useful for the Company’s
purpose, except for those actions that are
specically reserved by law or the Articles of
Association to the Shareholders’ Meeting or other
management bodies.
In particular, the Board is responsible for:
• dening the general orientations of the
Company;
• deciding on and regularly reviewing any aspect
Corporate Governance Statement
71
Composition of the Board
In accordance with Article 8 of the Articles of Association, the Board is composed of 10 members:
Table 16: Board of Directors Composition
Name Position Term started Term expires
Xavier Bedoret Chairman – Non-Executive member of the Board May 2021 May 2022
Dimitrios Vice-Chairman – Executive member of the Board May 2021 May 2022
Kyriakopoulos
Simon Macvicker Non-Executive member of the Board May 2021 May 2022
Rudolf Wiedenmann Non-Executive member of the Board May 2021 May 2022
Margaret Zakos Non-Executive member of the Board May 2021 May 2022
Maria Kapetanaki Non-Executive member of the Board May 2021 May 2022
Marina Sarkisian Independent, Non-Executive member of the Board May 2021 May 2022
Ochanesoglou
Manuel Iraola Independent, Non-Executive member of the Board May 2021 May 2022
Joseph Rutkowski Independent, Non-executive member of the Board May 2021 May 2022
William Gallagher Independent, Non-executive member of the Board May 2021 May 2022
The mandate of all members of the Board expires at the Annual Shareholders’ Meeting to be held in 2022.
related to all major, strategic, nancial and
operational matters of the Company;
• deciding on the Executive Management
structure and determining the powers and
duties entrusted to them;
• taking all necessary measures to guarantee
quality, integrity and timely disclosure of the
Company’s nancial statements and other
material nancial or non-nancial information
about the Company in accordance with
applicable law;
• monitoring and reviewing the effectiveness of
the Audit Committee and the Nomination and
Remuneration Committee;
• approving a framework of internal control and
risk management set up by Executive
Management and reviewing its implementation;
• monitoring the quality of the services provided
by the statutory auditor and internal audit,
taking into account the Audit Committee’s
review;
• approving the remuneration report submitted
by the Nomination and Remuneration
Committee; and
• all other matters reserved to the Board under
the BCCA.
The Board is entitled to delegate part of its powers
related mainly to the day-to-day management of
the Company to the members of the Executive
Management.
72
Information on the members of the Board
Over the past ve years, the members of the Board
have held the following directorships (apart from
their directorship of the Company) and
memberships of administrative, management or
supervisory bodies and/or partnerships.
Xavier Bedoret (Chairman, Non-Executive member)
Mr. Bedoret holds a Master’s degree in Law and
Psychology from the Catholic University of Louvain
(UCL) and is a certied public accountant (IRE). He
holds also a Certicate in Corporate Governance
(INSEAD). After ten years of nancial auditing at
KPMG in Brussels (Belgium) and Stamford (USA),
he joined the Finance Department and then the
Audit & Risks Department of ENGIE (France). Since
2017, he advises boards and audit committees on
governance matters. Today, he is also member of
the board of directors and of the audit committee
of Viohalco SA. He is also chairman of International
Trade SA, a Viohalco subsidiary.
Dimitrios Kyriakopoulos (Vice-Chairman, Executive
Member)
Mr. Kyriakopoulos is a graduate in Business
Administration from the Athens University of
Economics and Business and holds degrees in
Business Studies from the City of London College
and in Marketing from the Institute of Marketing
(CIM – UK). He also serves as Executive Vice-
President of ElvalHalcor S.A. He is also member of
the Board of directors of Symmetal and Anoxal as
well as of three other smaller companies of
Viohalco group. Mr Kyriakopoulos joined Viohalco
in 2006, and since then he has held various
managerial positions, including Chief Financial
Ofcer of Viohalco and Vice-President of non-
ferrous metals. Prior to joining Viohalco, he had a
long career with Pzer/Warner Lambert, serving as
President Europe/ Middle East/ Africa of Adams
(Pzer’s Confectionery Division), as Warner
Lambert’s Regional President Consumer Products
Italy, France and Germany, Regional Director Middle
East/ Africa and President and Managing Director
of Warner Lambert Greece. He has also been
Deputy Managing Director of Hellenic Duty Free
Shops.
Simon Macvicker (Non-Executive member)
Mr. Macvicker holds an MBA from Warwick Business
School and a Bachelor’s degree in Modern
Languages from the University of Leeds. Since
2004, he has been working at Bridgnorth
Aluminium, an afliate company of Viohalco, as
Managing Director. Previously, he held various
commercial positions including 10 years at British
Steel. Mr Macvicker served as President of the
Aluminium Federation in the UK from 2014 to 2015,
and was Chair of the UK Metals Council from 2016
to 2019. He is currently a director of Metal Agencies
Ltd, an afliate company of Viohalco. He is also a
director of the Shropshire Chamber of Commerce,
and the Aluminium Federation in the UK.
Rudolf Wiedenmann (Non-Executive member)
Mr. Wiedenmann holds a Master’s degree in
Chemistry from Ludwig-Maximilians Universität
München and a PhD in Natural Sciences. He is a
member of the Board of Directors of Icme Ecab S.A.
In the past, he worked as director in the research
and development centre and as Managing Director
of the Energy Cables division of Siemens in
Germany. He also served as President in the
European Association of Cable Manufacturers.
Margaret Zakos (Non-Executive member)
Ms. Zakos holds a Bachelor’s degree from Queens
University, Canada. She was a consultant with a US
based management consulting rm and held a
senior executive operational position at Mount
Sinai Medical Centre, NYC. She has owned and
operated private rms in Insurance Brokerage and
Real Estate Development. She was a Board
member of various Foundation Boards and of the
Kingston Health Sciences Centre Board including
Committee Roles in Finance and Audit for many
years. Currently, she is active in Real Estate
Holding companies. She is also member of the
Board of directors and of the Audit committee of
Viohalco SA.
Maria Kapetanaki (Non-Executive member)
Mrs. Kapetanaki holds a BA in Economics and
Computer Science (Phi Beta Kappa) from Rutgers
University and an MBA from Columbia Business
School. She joined Viohalco Group in 2011, rst in
Halcor and later within the year, she joined the
Viohalco’s Treasury Department. Currently she is the
Treasurer for Capital Markets & Funding and as of
2021, she also holds the position of Head of Strategy
& Risk Management. Previously, she has worked for
eighteen years in the banking and nancial sector,
73
rst as a money market and xed income dealer in
HSBC Greece and in Sigma Securities S.A., later as
an institutional investor, being the CEO of Arrow
Asset Management S.A. and nally as Head of Risk
Management of Proton Bank.
Marina Sarkisian Ochanesoglou (Independent,
Non-Executive member)
Mrs. Sarkisian Ochanesoglou holds a Master’s
degree in Environmental Engineering and a
Bachelor’s degree in Civil Engineering from Imperial
College of Science Technology & Medicine. She has
more than 20 years’ experience in environmental
engineering and management. Over this period, she
has acted as an independent consultant working
with Ecos Consultancy and Panagopoulos &
Associates, and as a senior member of the
Environmental Services Department at Athens
International Airport S.A. She is also member of the
Board of Directors of Terna Energy since June 2021.
Manuel J. Iraola (Independent, Non-Executive
member)
Mr. Iraola is CEO of Aloaris, a company providing
strategic and leadership development services to a
wide range of industries. Prior to Aloaris, he spent
20 years with Phelps Dodge Corporation, as
President and CEO of Phelps Dodge Industries, a
diversied manufacturing concern with annual sales
in excess of $3.0 billion and employing over 5,000
people in 27 countries. Iraola has served on the
boards of several NYSE traded companies including
Phelps Dodge Corporation, Central Hudson Energy
Group, Schweitzer Mauduit International Inc. and
Southern Peru Copper. He holds an MBA from
Sacred Heart University in Faireld, Connecticut,
and a BS in Industrial Engineering from the
University of Puerto Rico. He is also a graduate of
Pennsylvania State University’s Executive
Management Programme, the Wharton/Spencer
Stuart Directors Institute and PD-Thunderbird
Global Management Programme.
Joseph Rutkowski (Independent, Non-Executive
member)
Retired Executive Vice-President of Nucor
Corporation responsible for Domestic and
International Business Development from 2001 –
2010. Mr. Rutkowski became Executive Vice
President in 1998 responsible for all steelmaking
activities. Prior to that, he served as Vice President
and General Manager of Nucor Steel in Darlington,
South Carolina and Hertford County, North Carolina.
He joined Nucor in 1989 as Manager of Nucor Cold
Finish and also served as Manager of Melting and
Casting at Nucor Steel-Utah. Mr Rutkowski held
various positions within the steel and steel-related
industries after graduating from Johns Hopkins
University in 1976 with a Bachelor of Science in
Mechanics and Materials Science. He was also a
President of the Association of Iron and Steel
Engineers. He is currently Principal of Winyah
Advisors, LLC, a management consulting rm. He is
also member of the Board of Directors of Insteel
Industries IIIN on the NYSE.
William Gallagher (Independent, Non-Executive
member)
Mr Gallagher holds a BA (Economics) from Yale
University, a JD (Law) from the University of
Michigan (Ann Arbor), and a Diploma (Advanced
European Legal Studies) from the College of
Europe (Bruges, Belgium). He currently teaches
nance at the École Supérieure de Commerce de
Paris, London campus and law at the University of
Nicosia, Cyprus. Mr Gallagher is also a consultant
with NN Dynamic Counsel Ltd. Previously, Mr
Gallagher was a capital markets advisor to Credit
Suisse in London between 2015 and 2017. From
2000 to 2014, at UBS in London, he served in senior
executive roles, including global chair of UBS’s Debt
Capital Markets Commitments Committee. He also
worked in New York as a banker at Lehman
Brothers and as a corporate nance lawyer at
Gibson, Dunn & Crutcher.
Appointment of the Board
The members of the Board are appointed by the
Shareholders’ Meeting, upon proposal by the Board.
The appointment requires at least the majority of
the share capital to be present or represented, and
that it is approved by a simple majority of 50% of
the votes cast. They are appointed for a term of one
year and their term of ofce is renewable. In the
event that a member’s seat on the Board of
Directors becomes vacant, such a vacancy may be
lled temporarily by virtue of a unanimous vote of
the remaining members of the Board until the next
Shareholders’ Meeting which will proceed to the
denitive appointment of a Board member.
Any proposal for the appointment of a Board
member originating from the Shareholders’ Meeting
74
must be accompanied by a Board recommendation
based on the advice of the Nomination and
Remuneration Committee. The Nomination and
Remuneration Committee reviews all candidates
and seeks to ensure that a satisfactory balance of
expertise, knowledge, and experience is maintained
among Board members.
The Board decides which candidates satisfy the
independence criteria set by law. To be considered
independent, a member of the Board must full the
criteria set forth in Principle 3.5 of the Corporate
Governance Code. Any independent member of the
Board who no longer fulls the above criteria of
independence is required to immediately inform the
Board.
The Board of Cenergy Holdings, having reviewed
the independence criteria pursuant to the BCCA
and the Corporate Governance Code, decided that
Mrs. Sarkisian Ochanesoglou, Mr. Manuel Iraola, Mr.
Joseph Rutkowski, and Mr. William Gallagher full
the criteria and are independent members.
Being a holding company oriented towards
industrial companies, Cenergy Holdings does not
have in place a formal diversity policy for its Board
of Directors or its senior executives. The required
expertise limits the possibility of gender
diversication. It is common worldwide that, in the
industrial environment of metals processing, the
vast majority of personnel consists of males.
Nevertheless, Cenergy Holdings employs skilled and
experienced personnel without any discrimination
and make efforts to ensure diversity in terms of
nationality, age, religion, and ethnic origin.
The Company has, however, acknowledged the
legal requirement of Article 7:86 of the BCCA
according to which at least one third of the
Company’s Board members must be of different
gender as of the nancial year starting on January 1,
2022. The current Board composition meets this
requirement. The Nomination and Remuneration
Committee takes seriously this requirement as they
consider future Board members.
A thorough description of the Company’s “Labour
and Human rights” policy is provided in the Non-
nancial information section.
Functioning
The Board had elected among its members, Xavier
Bedoret as Chairman of the Board (the
“Chairman”). The Chairman ensures the leadership
of the Board and promotes effective interaction
between the Board and Executive Management.
The Chairman is responsible for ensuring that all
members of the Board receive accurate, clear and
timely information.
The Board has appointed a Company Secretary, Mr.
Xavier Bedoret, to advise the Board on all corporate
governance matters (the “Corporate Governance
Secretary”).
The Board meets as frequently as the interests of
the Company require, and, in any case, at least four
times a year. The majority of the Board meetings in
any year take place at the Company’s registered
ofces in Belgium.
The meetings of the Board can also be held by
teleconference, videoconference or by any other
means of communication that allow the participants
to hear each other continuously and to actively
participate in these meetings. Participation in a
meeting through the above-mentioned means of
communication is considered as physical presence
to such meeting. The Board may adopt unanimous
written decisions, expressing its consent in writing.
The following table provides an overview of the
Board meetings held in 2021:
Table 17: Board meetings held in 2021
Date and Place Attendance
March 17, 2021 Present: 9
(videoconference call) Represented: -
Absent: -
April 6, 2021 Present: 9
(videoconference call) Represented: -
Absent: -
May 12, 2021 Present: 9
(videoconference call) Represented: -
Absent: -
May 25, 2021 Present: 9
(videoconference call) Represented: 1
Absent: -
September 22, 2021 Present: 10
(Athens) Represented: -
Absent: -
November 18, 2021 Present: 10
(videoconference call) Represented: -
Absent: -
December 8, 2021 Present: 10
(videoconference call) Represented: -
Absent: -
75
Committees of the Board
The Board has established two Board committees
to assist and advise the Board on specic areas: the
Audit Committee and the Nomination and
Remuneration Committee. The terms of reference
of these committees are set out in the Corporate
Governance Charter.
The Audit Committee
The Board has established an Audit Committee, in
accordance with Article 7:99 of the BCCA (the
“Audit Committee”), which consists of the following
members:
• Xavier Bedoret (Chairman);
• Simon Macvicker; and
• William Gallagher.
All the members of the Audit Committee have
sufcient experience and expertise, notably in
accounting, auditing and nance, acquired during
their previous or current professional assignments.
Pursuant to the Corporate Governance Charter, the
Audit Committee is convened at least four times a
year and meets with the Company’s statutory
auditors at least twice a year.
The Audit Committee advises the Board on
accounting, audit and internal control matters, and,
in particular:
• monitors the nancial reporting process;
• monitors the effectiveness of the Company’s
system of internal control, risk management
systems and the internal audit function;
• monitors the quality of the statutory audit of
the consolidated annual accounts, including the
follow-up on questions and recommendations
made by the statutory auditor;
• presents recommendations to the Board with
respect to the appointment of the statutory
auditor; and
• reviews and monitors the independence of the
statutory auditor, in particular regarding the
provision of non-audit services to the Company.
The Audit Committee reports regularly to the Board
on the exercise of its duties, identifying any matters
in respect of which, it considers that action or
improvement is needed, and at least when the
Board reviews the consolidated annual accounts,
intended for publication.
In 2021, the Audit Committee met four times: on
March 17, on May 25, and on December 8, via video-
conference call, with all members present; and on
September 22, in Greece, with all members present.
Nomination and Remuneration Committee
The Board has established a Nomination and
Remuneration Committee in accordance with
Article 7:100 of the BCCA and principle 4.19 of the
Corporate Governance Code (the “Nomination and
Remuneration Committee”) which consists of the
following members:
• Joseph Rutkowski (Chairman),
• Manuel Iraola, and
• Margaret Zakos.
The Nomination and Remuneration Committee
meets at a minimum twice a year, and whenever
necessary in order to carry out its duties.
The Nomination and Remuneration Committee
advises the Board principally on matters regarding
the appointment and the remuneration of the
members of the Board and Executive Management,
and in particular:
• submits recommendations to the Board with
regard to the appointment and the
remuneration of the members of the Board and
Executive Management;
• identies and nominates, for the approval of the
Board, candidates for lling vacancies as they
arise;
• advises on appointment proposals originating
from shareholders;
• periodically assesses the composition and size
of the Board and submits recommendations to
the Board with regard to any change, and
• drafts and submits a remuneration report to the
Board, including proposals regarding the
remuneration policy and recommendations
based on its ndings.
In 2021, the Nomination and Remuneration
Committee met four times: on March 16, on May 21,
and on December 7, via videoconference call, with
all Committee members present; and on September
22, in Greece, with all members present.
Evaluation of the Board and its Committees
The Board regularly assesses its size, composition
76
and performance of its committees, as well as the
Board’s interaction with Executive Management. On
December 4, 2019, the Board made its rst
assessment and concluded that, overall, the Board
and its Committees operate effectively in
compliance with the applicable corporate
governance rules, meeting the objectives set by the
Corporate Governance Code (principle 9.1).
Non-Executive members of the Board meet
regularly after Board meetings to assess their
interaction with Executive Management.
The performance of Executive Management is also
assessed on an informal basis through the
presentation of the Company’s performance in
respect of the interim and annual nancial
statements.
Executive management
The Executive Management of the Company
comprises the Executive Vice-President, Mr
Dimitrios Kyriakopoulos; the Chief Executive Ofcer
(CEO), Mr Alexios Alexiou; and the Chief Financial
Ofcer (CFO), Mr Alexandros Benos.
In the past ve years, the members of Executive
Management held the following directorships and
memberships of administrative, management or
supervisory bodies and/or partnerships:
Dimitrios Kyriakopoulos, Executive Vice-
President
Please see above, “Information on the members of
the Board” in the section on the Board of Directors.
Alexios Alexiou, Chief Executive Ofcer
Mr. Alexiou has been the Chief Executive Ofcer of
Cenergy Holdings since 2020. Prior to this, he had
served as co-CEO of Cenergy Holdings since its
establishment in 2016. Mr. Alexiou also serves as
CEO and Executive Member of the Board of
Directors for the Hellenic Cables Group, a Cenergy
Holdings company. He has been working for
Viohalco since 1996. He holds a BSc in Economics
from the University of Piraeus and a MSc. in Finance
from Strathclyde University. With more than 16
years’ experience in the nance and cables
technology sectors, he joined Viohalco in 1996 as
internal auditor. Since then, he has held the
positions of Financial Manager of Hellenic Cables
(2002-2003), General Manager of Icme Ecab
(2003–2008) and since 2009 has held the position
of CEO for Hellenic Cables.
Alexandros Benos, Chief Financial Ofcer
Mr. Benos has been CFO of Cenergy Holdings since
May 2018. He holds a degree in Economic Sciences
from Athens University, a B.A. and an M.A. in
Economics from the University of Cambridge, UK,
and a Ph.D. in Finance from Stanford University,
USA. He has extensive banking experience. He
joined National Bank of Greece Group in early
2000, tasked with establishing the Value at Risk
Estimation Framework for Market Risk, then to
develop obligor rating systems for corporate clients
and then spearheaded the “Basel II & III”
implementation projects. Mr Benos was appointed
Director of Group Risk Control & Architecture
Division at the Bank in 2010, then Deputy General
Manager for NBG Group Risk Management in 2013
and, nally, Group Chief Risk Ofcer (CRO) in 2015.
He is a Board Member for ETEM Gestamp
Aluminium Extrusions SA and for Gestamp ETEM
Automotive Bulgaria SA. and also serves as an
independent Board Member and non-executive VP
of CNL Capital, a VC Participation Company in
Greece. He previously served on the Board of
Directors of numerous banks and insurance
companies, and held academic positions in the US
(GSB, Stanford University), France (M.S. Finance
International, HEC School of Management in Paris),
Switzerland (Dept. of Economics, University of
Geneva) and Greece (Dept. of Banking and Finance,
University of Piraeus).
The Executive Management is vested with the day-
to-day management of the Company. They are also
entrusted with the implementation of the
resolutions of the Board.
In particular, the Board has assigned the following
responsibilities to Executive Management:
• preparing strategic proposals for the Board;
• preparing annual and strategic plans;
• implementing internal controls;
• monitoring and managing the Company’s
results and performance against strategic and
nancial plans;
• presenting to the Board a complete, timely,
reliable and accurate set of the Company's draft
nancial statements, in accordance with the
applicable accounting standards, and the
related press releases to be published by the
Company;
77
• providing the Board with a balanced and
comprehensive assessment of the Company's
nancial situation; and making
recommendations to the Board with respect to
matters within its competency.
Remuneration policy
This remuneration policy sets forth the principles
applicable to the remuneration of the members of
the Board of directors and the Executive
Management of Cenergy Holdings.
Procedure
This remuneration policy has been prepared by the
Board of directors upon recommendation of the
Nomination & Remuneration Committee. It was
approved by the Shareholders’ Meeting of 25 May
2021 and will be submitted to vote by the
Shareholders’ Meeting each time there is a material
change and at least once every four years.
This policy may be revised by the Board upon
recommendation of the Nomination &
Remuneration Committee. Currently, the
Nomination & Remuneration Committee is in the
process of developing a variable remuneration plan
for Executive Management. It shall include a short-
term incentive plan based on the performance of
the Company in respect of nancial, human
resource, and ESG factors, as well as a long-term
incentive plan. The updated policy will be
submitted to the approval of the Shareholders’
meeting on May 31st, 2022.
In exceptional circumstances, the Board of directors
may, upon recommendation of the Nomination &
Remuneration Committee, temporarily derogate
from the remuneration policy if the derogation is
necessary to serve the long-term interests and
sustainability of the Company or to assure its
viability.
For the preparation of this remuneration policy, the
Board, with the assistance of the Nomination &
Remuneration Committee, takes into consideration
whether events of conicts of interests exist. For
the prevention of such events, each member of the
Board and each member of the Executive
Management is required to always act without
conict of interests and always put the interest of
Cenergy Holdings before his individual interest.
They are also required to inform the Board of
conicts of interests as they arise. In the event a
conict of interests may arise, the Board is required
to implement the specic procedures of conict
resolution set forth in articles 7:96 of the BCCA.
The remuneration policy is based on the prevailing
market conditions for comparable companies,
paying at market-competitive level achieved
through benchmarking. It takes into account the
responsibilities, experience, required competencies,
and participation/contribution of the members of
the Board of Directors and the members of the
Executive Management.
The Board of Cenergy Holdings, a holding company
of a predominantly industrial portfolio, aims at
preserving long-term value for its shareholders. The
determination and evolution of the Company’s
remuneration policy is closely linked with the
growth, results and success of the Company as a
whole. The Company’s remuneration policy is built
around internal fairness and external market
competitiveness. The Company's objective is to
balance offering competitive salaries while
maintaining focus on performance and results.
Board of Directors
The remuneration of the members of the Board of
Directors consists in a xed annual fee amounting
to EUR 25,000. In addition, Board members who
are members of a Board committee receive a xed
fee of EUR 25,000 per committee. The Chairman of
the Board shall receive an additional xed annual
fee of EUR 20,000 (subject to approval of the
remuneration policy by the shareholders’ meeting).
Additional fees or other benets, such as company
car, training, or other benets in natura may be
attributed either by the Company or by its
subsidiaries based on the responsibilities and
number of functions each member of the Board of
Directors holds within the Company or in one or
more of its subsidiaries.
The fees are allocated on a pro rata temporis basis
for the period extending from the Annual
Shareholders’ Meeting of one year until the Annual
Shareholders’ Meeting of the following year and are
payable at the end of such period.
Members of the Board of directors do not receive
any variable remuneration or remuneration in
shares.
Members of the Board of directors are not entitled
to retirement pension plans or severance payments.
78
Executive Management
The remuneration of the members of the Executive
Management of Cenergy Holdings consists in a
xed annual fee, which is attributed either by the
Company or by its subsidiaries.
Members of the Executive Management are not
entitled to retirement pension plans or severance
payments other than what is provided by the
applicable law in each case.
In order to ensure focus on the Company’s short-
term and long-term objectives, priorities as well as
long-term value creation for all key stakeholders,
the Board, with the assistance of the Nomination &
Remuneration Committee, has commenced to
develop a variable remuneration policy. To better
align Executive pay with Company’s performance, a
fair and balanced approach between xed and
variable remuneration is established.
Short-term incentive variable remuneration and
long-term incentive variable remuneration shall be
applicable for the Chief Executive Ofcer (CEO)
and the Chief Financial Ofcer (CFO), starting from
nancial year 2022.
Short-Term Incentive
Short-term incentives (STI) are linked to Company’s
performance and to individual performance so as to
drive and reward the overall annual performance of
executives. The short-term incentives have
maximum award limits and are denoted as a
multiple of their respective base salaries. The target
for the STI is set at 50% of the yearly base salary
but can range from 0% to 120. No claw back terms
apply.
Performance is assessed on an annual basis using a
set of pre-determined performance targets set at
the start of the year, as approved by the
Nomination & Remuneration Committee and the
Board.
The STI is comprised of two parts in which one sets
the funding of the potential bonus and the other
measures performance against ve indices for
earning the bonus.
Funding: A nancial metric (in this case adjusted
EBITDA) is set as a target for the year’s expected
goal. There is a minimum threshold which sets the
minimum acceptable to have any bonus. Below this
threshold no bonus can be earned. At this threshold
the bonus would be funded at 50% of the base
salary. Reaching the target nets a pool of 100% for
the bonus and the maximum amount of the pool is
set at 120% if the target is exceeded.
Earning: It is possible to earn the total amount of
the pool established above. To do so, the
participant must meet all of the individual goals set
for performance in the following categories of
objectives/priorities: (i) Financial, (ii) Customer, (iii)
ESG, (iv) Processes and Organizational Efciency,
(v) People and Leadership.
For each category, a maximum of 20% is allocated
to be earned based on specic metrics (KPIs)
dening successful achievement in each. If the
performance in each segment is less than
maximum, the participant can earn pro rata share
from 0% to 20%.
Metrics used to measure performance are being
revised by the Board, with the assistance of the
Nomination & Remuneration Committee, for each
nancial year considering the Company’s strategic
objectives and priorities.
Long-Term Incentive
The purpose of the Long Term Incentive (LTI) plan
is to incentivize the executives to contribute to
delivering sustainable performance and improving
Company’s (share) performance in the long term, in
alignment with the interests of the key
stakeholders.
The LTI is expected to target around 16% of the
yearly base salary and shall be granted over future
years.
Once implemented, the overall pay mix will be
structured as follows: annual base salary (60%),
short-term incentive (30%), and long-term incentive
(10%).
Remuneration report
This remuneration report provides an overview of
the remuneration granted during the nancial year
2021 to the members of the Board of directors and
the members of the Executive Management, in
accordance with the remuneration policy. It will be
submitted to the vote of the shareholders’ meeting
of 31st May 2022.
With regard to the contribution of the remuneration
to the long-term performance of the Company, the
Company uses its KPIs (i.e. Protability, Revenue) as
a measure of its nancial performance. The
evolution of the measurement during the last ve
years as published in the Company’s nancial
statements is presented under a later section.
79
Board of Directors
Table 15 provides an overview of the fees paid to
the members of the Board of Directors in the
nancial year 2021; all amounts are in EUR. The
following Notes apply to both Tables 15 and 16.
(a) Base salary: this column includes the xed base
salary in exchange for professional services
regarding their mandate or for any other
executive or non-executive services or functions
provided during the reported nancial year
under a specic contract.
(b) Fees: this column includes all fees of the
members of the Board for the participation in
the administrative, management or supervisory
bodies of the Company’s meetings during the
reported nancial year.
(c) Other benets: this column includes the value of
any benets and perquisites, such as non-
business or non-assignment related travel,
medical, car, residence or housing, credit cards,
and other benets in kind.
(d) Extra-ordinary items: this column includes any
other non-recurring remuneration, whether in
cash or in other form, such as a sign-on fee,
retention bonus, redundancy payment,
compensation for relocation, indemnity for
non-competition, compensation or buyout
from previous employment contracts or
severance and termination payments or
benets.
During the nancial year 2021, neither any member
of the Board nor any member of the Executive
Management received any variable remuneration,
hence there is no such information recorded in the
Tables to follow.
80
Table 18: Board of Directors – Remuneration Report (amounts in EUR)
Name Paid by Fixed remuneration Proportion
Base Other Total of xed
Salary
(a)
Fees
(b)
benets
(c)
Remuneration remuneration
Xavier Bedoret Cenergy Holdings - 50,000 - 50,000 100%
Subsidiaries - - - - -
Total - 50,000 - 50,000 100%
Dimitrios Kyriakopoulos Cenergy Holdings - 25,000 - 25,000 100%
Subsidiaries - - - - -
Total - 25,000 - 25,000 100%
Simon Macvicker Cenergy Holdings - 50,000 - 50,000 100%
Subsidiaries - - - - -
Total - 50,000 - 50,000 100%
Rudolf Wiedenmann Cenergy Holdings - 25,000 - 25,000 100%
Subsidiaries 2,400 266 - 2,666 100%
Total 2,400 25,266 - 27,666 100%
Margaret Zakos Cenergy Holdings - 50,000 - 50,000 100%
Subsidiaries - - - - -
Total - 50,000 - 50,000 100%
Maria Kapetanaki
14
Cenergy Holdings - 14,583 - 14,583 100%
Subsidiaries - - - - -
Total - 14,583 - 14,583 100%
Joseph Rutkowski Cenergy Holdings - 50,000 - 50,000 100%
Subsidiaries - - - - -
Total - 50,000 - 50,000 100%
William Gallagher Cenergy Holdings - 50,000 - 50,000 100%
Subsidiaries - - - - -
Total - 50,000 - 50,000 100%
Manuel Iraola Cenergy Holdings - 50,000 - 50,000 100%
Subsidiaries - - - - -
Total - 50,000 - 50,000 100%
Marina Sarkisian Cenergy Holdings - 25,000 - 25,000 100%
Ochanesoglou Subsidiaries - - - - -
Total - 25,000 - 25,000 100%
Total Remuneration Cenergy Holdings - 389,583 - 389,583 100%
Subsidiaries 2,400 266 - 2,666 100%
Total 2,400 389,849 - 392,249 100%
14. This Board member was nominated on 25.05.2021
81
Executive Management
Table 19 provides an overview of the fees paid to the members of the Executive Management during the nancial
year 2021:
Table 19: Executive Management – Remuneration Report (amounts in EUR)
Name Paid by Fixed remuneration Proportion
Base Other Extraordinary Total of xed
Salary
(a)
Fees
(b)
benets
(c)
items
(d)
Remuneration
remuneration
Alexios Alexiou Cenergy Holdings - - - - - -
Subsidiaries 281,590 - 8,832 120,000 410,422 100%
Total 281,590 - 8,832 120,000 410,422 100%
Total Remuneration Cenergy Holdings 141,600 25,000 5,239 110,000 281,839 100%
to the Executive Subsidiaries 281,590 - 8,832 120,000 410,422 100%
Management of
the company
15
Total 423,190 25,000 14,071 230,000 692,261 100%
Evolution of the remuneration
The following Table provides an overview of the
evolution over the four most recent nancial years
of the overall remuneration of the members of the
Board of directors and the members of the
Executive Management, and the performance of
the Company through the reporting of some of its
KPIs:
Table 20: Remuneration and Company performance
16
Amounts in EUR thousand 2021 2020 2019 2018
Remuneration of the members of the 1,060 1,146 991 908
Board of directors and the Executive Management
Performance of the Company
[EBITDA] 85,203 91,121 90,273 56,223
[a-EBITDA] 104,140 101,800 90,098 60,951
[Revenue] 1,054,203 908,417 958,016 963,797
15. Includes remuneration paid to Executive Management of the Company: Dimitrios Kyriakopoulos (Executive Vice-President),
Alexios Alexiou (Chief Executive Ofcer) & Alexandros Benos (Chief Financial Ofcer).
16. The information is provided on the basis of the available information from previous remuneration reports and the annual
accounts of the Company. Cenergy Holdings was founded and listed on the Stock Exchange in 2016. Therefore, the available
information starts in 2017.
The remuneration ratio, as dened by Section 3:6 of
the BCCA, was 4.3x for 2021. For its calculation, the
Company used the remuneration of the CEO as the
highest paid management member and the
remuneration of the full-time employee of the
holding company - who has worked for a full year -
as the lowest paid employee.
Publishing of this ratio is a practice required by Law
and the presentation adopted is intended to comply
with transparency requirements. The disclosure on
this ratio will be assessed and evaluated in the future
subject to the evolution of the ratio and to potential
future guidance/clarications that may be published
on this requirement.
82
External Audit
The statutory auditor, appointed by the
Shareholders’ Meeting among the members of the
Belgian Institute of Certied Auditors, is entrusted
with the external audit of the Company’s
consolidated nancial statements.
The statutory auditors’ mission and powers are
those dened by the law. The Shareholders’
Meeting sets the number of statutory auditors and
determines their remuneration in compliance with
the law. The statutory auditors are appointed for a
renewable term of three years.
On May 29, 2019, the Company appointed
PriceWaterhouseCoopers - Reviseurs d’entreprises
SCRL, in abbreviation PwC Reviseurs d’Entreprises,
represented by Marc Daelman, as statutory auditor
for a three-year period.
Risk Management and Internal
Audit
The Belgian legislative and regulatory framework on
risk management and internal control consists of
the relevant provisions of the law of 17 December
2008 on the establishment of an Audit Committee,
and the law of 6 April 2010 on the enhancement of
corporate governance, as well as of the Corporate
Governance Code.
As set out in the “Risks and Uncertainties” chapter
of this Annual Report, Executive Management is
responsible for risk management and the systems
of internal control. Under the strict supervision of
the Executive Management, the management team
of each Company’s subsidiary is responsible for
developing an adequate organisation and an
appropriate system of internal control for running
the subsidiary’s operations and managing risk.
The Audit Committee is responsible for monitoring
the effectiveness of the Company’s risk
management, its systems of internal control and its
internal audit function.
Risk Management
Risk management, incorporating market risk and
operational risk, is mainly the responsibility of the
Management of the subsidiaries. The managers of
the subsidiaries report on risk assessment and risk
mitigation to Executive Management on a regular
basis; they provide the Board and the Audit
Committee with a detailed business review which
analyses risks and challenges.
Internal Audit Function
The Audit Committee supervises the internal audit
function. Internal audit is an independent, objective
assurance and consulting activity designed to add
value and improve the organization's operations. It
helps the organization accomplish its objectives by
bringing a systematic, disciplined approach to
evaluate and improve the effectiveness of risk
management, control, and governance processes.
Internal audit is conducted in accordance with the
International Standards for the Professional Practice
of Internal Auditing (IPPF).
The internal audit function is responsible for
performing audit engagements in accordance with
its annual internal audit plan, which is prepared and
reviewed in order to assist the organization to
effectively mitigate risk throughout its operations.
The audit engagements follow the audit
methodology described in the internal audit charter
and the internal audit manual as well as aim at
ensuring that subsidiaries comply with shared
services processes with regards to their operations,
industrial production and consolidation guidelines.
At the end of each audit engagement, the internal
audit function issues an audit report containing its
audit ndings and recommendations. The
subsidiaries’ management team is responsible to
design and implement remedial actions towards
each of the internal audit ndings and
recommendations in due time.
The internal audit function reports to the Audit
Committee. The Audit Committee ensures that the
internal audit work is focused on the activities and
the risk areas it deems critical. It ensures that the
internal audit function reduces the probability of
fraud and error and provides effective mitigation of
risk.
Control Activities and Relationship with
Subsidiaries
Cenergy Holdings is a holding company that
operates in a decentralised manner. Each of the
subsidiaries is responsible for its performance and
results. The management team of the subsidiaries is
organised around solid global and regional teams,
with responsibility assigned to the members of their
respective Board of Directors and executive
management team.
83
All Cenergy Holdings’ companies are accountable
for their own organisation, risk management and
system of internal control as these are developed
and implemented depending on the business
segment, the geographical location and the type of
production plant concerned.
In order to secure consistency of approach when
separate companies deal with similar issues, and to
optimise coordination throughout the network of
the Company’s subsidiaries, the Board sets out
corporate policies aimed at providing the local
management of the companies with solid guidance
and a workable framework for optimal local
implementation and monitoring.
Steelmet, a Viohalco subsidiary, is assigned, through
a subcontracting agreement, with the functional
support towards all companies of Cenergy
Holdings. It deploys a team of subject matter
experts who oversee policy implementation,
monitor performance, and promote best practices
while ensuring decentralization and entrepreneurial
independence of the business units. The support
they provide relates, among others, to functions
such as nance, investor relations, ESG, Internal
Audit, Operations etc. A shared services centre is
also responsible for the execution of common
corporate services such as procurement,
transportation, information technology and
accounting.
Financial Reporting and Monitoring Activities
Cenergy Holdings has established procedures for
the adequate recording and reporting of nancial
and non-nancial information. The objective is to
ensure that nancial and non-nancial information
produced by each entity is homogeneous, coherent
and comparable, and that consolidated nancial
information is fair, reliable and can be obtained in a
timely manner.
Each subsidiary reports nancial information on a
monthly basis. This includes the balance sheet, the
income statement, the statement of cash ows and
a working capital analysis.
A review of each business segment is presented to
the Board. The review includes “actual versus
budgeted” nancial and non-nancial information,
the highlights of the reporting period, the outlook
for each business segment, and is a key component
of Cenergy Holdings’ decision-making process.
Conict of interests
Pursuant to Article 8 of the Corporate Governance
Charter, in the event that a conict of interest arises
with a Board member, a shareholder or other
Cenergy Holdings’ company, the Board is required
to implement the specic procedures of conict
resolution set forth in articles 7:96 and 7:97 of the
BCCA.
Each member of the Board and Executive
Management is required to always act without
conicts of interest and put the interests of the
Company before his or her individual interests. Each
member of the Board and Executive Management is
required to always arrange his or her personal and
business affairs so as to avoid direct and indirect
conicts of interest with the Company.
All Board members are required to inform the
Board on conicts of interest once they arise. If the
conict of interest is of a proprietary nature, they
will also abstain from participating in the
discussions and deliberations on the matter
involved, in accordance with Article 7:96 of the
BCCA. If the conict of interest is not covered by
the provisions of the BCCA, and involves a
transaction or contractual relationship between the
Company or one of its related entities on the one
hand, and any member of the Board or Executive
Management (or a company or entity with which
such member of the Board or Executive
Management has a close relationship) on the other
hand, such member will inform the Board of the
conict. The Board is under an obligation to check
that the approval of the transaction is motivated by
the Company’s interest only and that it takes place
at arm’s length.
In all cases involving a conict of interest not
covered by Article 7:96 of the BCCA, the Board
member affected by the conict of interest is
required to judge whether he or she should abstain
from participating in the discussions of the Board
and the vote.
Since the listing of the Company, the Board has not
been notied of any transaction or other
contractual relationship between Cenergy Holdings
and its Board members which cause a conict of
interest as dened by articles 7:96 and 7:97 of the
BCCA.
84
Capital Structure
On December 31, 2021, the Company’s share capital
amounted to EUR 117,892,172.38 represented by
190,162,681 shares without nominal value. There is
no authorised share capital.
Cenergy Holdings received a transparency
notication dated April 23, 2021 indicating that
Viohalco SA holds directly 79.78% of the voting
rights of the Company. According to its obligation
under Article 14 of the Belgian Law of 2 May 2007
on the disclosure of signicant shareholdings in
listed companies, Cenergy Holdings publishes the
content of the notication that it has received on its
website (www.cenergyholdings.com).
All shares of the Company belong to the same class
of securities and may be in registered or
dematerialised form. Shareholders may select, at
any time, to have their registered shares converted
into dematerialised shares and vice versa.
Share transfers are not restricted in the Company’s
Articles of Association. All shares of the Company
are freely transferable. Each share entitles the
holder to one voting right.
Restrictions on Voting Rights
The Articles of Association do not provide for
special restrictions on the shareholders’ voting
rights. Provided that the shareholders are admitted
to the Shareholders’ Meeting and their rights are
not suspended, they enjoy unrestricted freedom in
exercising their voting rights.
The relevant provisions governing the shareholders’
admission to the Shareholders’ Meeting are set out
in Article 19 of Cenergy Holdings’ Articles of
Association.
Article 6.4 of the Articles of Association provides
that the Company’s shares are indivisible and
recognises only one holder per share. The Board
has the right to suspend the exercise of all rights
attached to jointly owned shares until a single
representative of the joint owners has been
appointed.
Transparency
Pursuant to the Belgian Law of 2 May 2007 on the
disclosure of major holdings in issuers whose shares
are admitted to trading on a regulated market and
laying down miscellaneous provisions (the
“Transparency Law”), the Company requires that
any natural and legal person, who directly or
indirectly acquires voting securities in the Company,
noties the Company and the Financial Services
and Markets Authority (the “FSMA”) of the number
and proportion of existing voting rights they hold,
where the voting rights attached to the voting
securities reach 5% or more of the total existing
rights. A similar notication is required in the
following cases:
• direct or indirect acquisition, or disposal, of
voting securities, or change of the breakdown
of the voting rights, where the proportion of
voting rights attached to the securities held
reaches or exceeds 10%, 15%, 20% and so on, by
increments of 5%, of the total existing voting
rights;
• rst admission of the Company’s shares to
trading on a regulated market, where the voting
rights attached to the voting securities
represent 5% or more of the total existing
voting rights;
• conclusion, modication or termination by
natural or legal persons of an agreement to act
in concert where the proportion of the voting
rights that are the subject of the agreement, or
the proportion of the voting rights held by a
party to the agreement, reaches, exceeds or
falls below one of the thresholds provided for in
§ 1, or the nature of the agreement to act in
concert is modied;
• breaching of stricter notication thresholds
added by the Company’s Articles of
Association.
The notication must be made promptly and no
later than within four trading days following the
acquisition or disposal of the voting rights
triggering the reaching of the threshold. The
Company must publish the information within three
trading days following receipt of the notication.
At Shareholders’ Meetings, shareholders cannot
Shareholders’ Structure
85
cast more votes than those attached to the
securities or rights they have notied to the
Company, pursuant to the Transparency Law, before
the date of the Shareholders’ Meeting, subject to
certain exceptions.
The form, on which such notications must be
made, together with additional explanations, is
available on the FSMA website (www.fsma.be).
The voting rights held by major shareholders of the
Company are available on the website of Cenergy
Holdings (www.cenergyholdings.com).
Cenergy Holdings is not aware of the existence of
any agreement between its shareholders which may
lead to restrictions on the transfer or the exercise of
the voting rights attached to the shares of the
Company.
Distribution and dividend policy
Cenergy Holdings does not have a history of
dividend distribution. No dividends have been paid
to shareholders during the Company’s lifetime as it
reinvests prots back into its business.
The dividend distribution policy will be reviewed by
the Board in due course and, if the policy changes,
the Company will inform the market accordingly. No
assurance can be given, however, that the Company
will make dividend payments in the future. Such
payments will depend upon a number of factors,
including the Company’s prospects, strategies,
results of operations, earnings, capital requirements
and surplus, general nancial conditions,
contractual restrictions and other factors
considered relevant by the Board. Due to its interest
and participation in a number of subsidiaries and
afliated companies, the Company’s stand-alone
income and its ability to pay dividends depends in
part on the receipt of dividends and distributions
from these subsidiaries and afliated companies.
The payment of dividends by these subsidiaries and
afliated companies is contingent upon the
sufciency of earnings, cash ows, and distributable
reserves.
Pursuant to Belgian law, the calculation of amounts
available for distribution to shareholders, as
dividends or otherwise, must be determined on the
basis of the Company’s non-consolidated nancial
statements. In accordance with BCCA, the
Company’s Articles of Association also require that
the Company allocates at least 5% of its annual net
prots to its legal reserve each year, until the legal
reserve equals at least 10% of the Company’s share
capital. As a consequence of these factors, there
can be no assurance as to whether dividends or
similar payments will be distributed in the future.
Shareholders’ Meeting
Meetings
The Annual Shareholders’ Meeting of the Company
is held on the last Tuesday of May at 10:00 a.m. or, if
the day is a public holiday in Belgium, on the
previous business day, at the same time. It takes
place in Brussels, at the registered ofce of the
Company or at the place indicated in the convening
notice of the Shareholders’ Meeting.
The other Shareholders' Meetings of the Company
must take place on the date, hour and place
indicated in the convening notice of the Meeting.
They may take place at locations other than the
Company’s registered ofce.
The Annual, the Special and Extraordinary
Shareholders' Meetings of the Company may be
convened by the Board or by the statutory auditor
of the Company, or at the request of shareholders
representing at least 10% of the Company’s share
capital.
Quorum and Majority required for modication
of the articles of association
The modication of Cenergy Holdings’ Articles of
Association requires at least the majority of the
share capital to be present or represented, and that
it is approved by a qualied majority of 75% of the
votes cast. If the quorum is not reached at the rst
meeting, a second meeting can be convened with
the same agenda. This new general meeting is
considered to have reached the quorum and to be
validly convened irrespective of the proportion of
the Company’s share capital represented.
Ready for the Shift
Consolidated Financial Statements 2021
88
Table of Contents
1. Consolidated Statement
of Financial Position
2. Consolidated Statement
of Prot or Loss
3. Consolidated Statement
of Prot or Loss and
Other Comprehensive
Income
4. Consolidated Statement
of Changes in Equity
5. Consolidated Statement
of Cash Flows
6. Notes to the Consolidated
Financial Statements
1. Reporting entity
2. Basis of accounting
3. Functional currency
and presentation
currency
4. Use of estimates and
judgements
5. Signicant accounting
policies
6. Operating segments
7. Revenue
8. Income and expenses
9. Net nance costs
10. Earnings per share
11. Employee benets
89
90
91
92
93
94
94
94
94
94
95
115
118
122
124
124
125
12. Employee benet expenses
13. Income tax
14. Inventories
15. Trade and other receivables
16. Cash and cash equivalents
17. Property, plant and
equipment
18. Leases
19. Intangible assets
20. Investment property
21. Equity-accounted investees
22. Other investments
23. Derivatives
24. Capital and reserves
25. Capital management
26. Debt
27. Trade and other payables
28. Grants
29. Provisions
30. Financial instruments
31. Impact of Covid-19
pandemic
32. List of subsidiaries
33. Joint operations
34. Commitments
35. Contingent liabilities
36. Related parties
37. Auditor’s fees
38. Subsequent events
127
128
131
132
133
133
135
136
138
139
140
141
143
144
145
148
148
148
149
159
160
160
161
161
162
164
164
89
1. Consolidated Statement of Financial Position
The notes on pages 94 to 164 are an integral part of these Consolidated Financial Statements.
ASSETS
Property, plant and equipment
Right of use assets
Intangible assets
Investment property
Equity - accounted investees
Other investments
Derivatives
Trade and other receivables
Contract costs
Deferred tax assets
Non-current assets
Inventories
Trade and other receivables
Contract assets
Contract costs
Income tax receivables
Derivatives
Cash and cash equivalents
Current assets
Total assets
EQUITY
Share capital
Share premium
Reserves
Retained earnings
Equity attributable to owners of the Company
Non-controlling interests
Total equity
LIABILITIES
Loans and borrowings
Lease liabilities
Employee benets
Grants
Trade and other payables
Deferred tax liabilities
Contract liabilities
Non-current liabilities
Loans and borrowings
Lease liabilities
Trade and other payables
Provisions
Contract liabilities
Current tax liabilities
Derivatives
Current liabilities
Total liabilities
Total equity and liabilities
17
18
19
20
21
22
23
15
7.E
13
14
15
7.D
7.E
23
16
24
26
18
11
28
27
13
7.D
26
18
27
29
7.D
23
Amounts in EUR thousand Note 31 December 2021 31 December 2020*
90
2. Consolidated Statement of Prot or Loss
Amounts in EUR thousand For the year ended 31 December
Note 2021 2020*
The notes on pages 94 to 164 are an integral part of these Consolidated Financial Statements.
Revenue
Cost of sales
Gross prot
Other income
Selling and distribution expenses
Administrative expenses
Reversal of / (Impairment loss)
on receivables and contract assets
Other expenses
Operating prot
Finance income
Finance costs
Net nance costs
Share of prot of equity-accounted investees,
net of tax
Prot before tax
Income tax
Prot for the year
Prot/(Loss) attributable to:
Owners of the Company
Non-controlling interests
Earnings per share (in EUR per share)
Basic and diluted
7
8.C
8.A
8.C
8.C
30.C.1
8.B
9
9
21
13
10
(945,530 )
(14,614 )
(24,971 )
(53 )
(18,534 )
(29,249 )
(28,985 )
(8,434 )
(804,904 )
(13,719 )
(24,895 )
(3,645 )
(31,996 )
(31,640 )
(10,683 )
(1 )
91
3. Consolidated Statement of Prot or Loss and
Other Comprehensive Income
Amounts in EUR thousand For the year ended 31 December
Note 2021 2020*
The notes on pages 94 to 164 are an integral part of these Consolidated Financial Statements.
11
22
21
(279 )
(81 )
(1,955 )
(94 )
(57 )
(94 )
(4,330 )
(2,130 )
(138 )
(5,150 )
(4,582 )
(8 )
Prot for the year
Items that will never be reclassied to prot or loss
Remeasurements of dened benet liability
Changes in the fair value of equity instruments at fair value
through other comprehensive income
Related tax
Items that are or may be reclassied to prot or loss
Foreign currency translation differences
Cash ow hedges – effective portion of changes in fair value
Cash ow hedges – reclassied to prot or loss
Share of other comprehensive income of associates
accounted for using the equity method
Related tax
Other comprehensive income / (loss)
Total comprehensive income after tax
Total comprehensive income / (loss) attributable to:
Owners of the Company
Non-controlling interests
92
4. Consolidated Statement of Changes in Equity
Amounts in EUR thousand Share Share Translation Other Retained Total Non- Total
capital premium reserve reserves earnings
controlling
equity
interests
The notes on pages 94 to 164 are an integral part of these Consolidated Financial Statements.
Balance as at 1 January 2021
Total comprehensive income
Prot / (Loss) for the period
Other comprehensive income / (loss)
Total comprehensive income
Transactions with owners of the company
Contributions and distributions
Transfer of reserves
Total contributions and distributions
Changes in ownership interests
Acquisition of non-controlling interests
Total changes in ownership interests
Total transactions with owners
of the Company
Balance at 31 December 2021
(21,876 )
(100 )
(100 )
(100 )
(21,333 )
(330 )
(1,767 )
(1,767 )
(1,473 )
(1 )
(253 )
(253 )
(253 )
Balance as at 1 January 2020*
Impact of change in accounting policy
Adjusted balance at 1 January 2020
Total comprehensive income
Prot / (Loss) for the period
Other comprehensive income / (loss)
Total comprehensive income
Transactions with owners of the company
Contributions and distributions
Transfer of reserves
Total contributions and distributions
Total transactions with owners
of the Company
Balance at 31 December 2020
(17,552 )
(17,552 )
(4,324 )
(4,324 )
(21,876 )
(40 )
(40 )
(210 )
(93 )
(93 )
(93 )
(4,575 )
(1 )
(7 )
(8 )
(4,582 )
Amounts in EUR thousand Share Share Translation Other Retained Total Non- Total
capital premium reserve reserves earnings
controlling
equity
interests
Amounts in EUR thousand For the year ended 31 December
Note 2021 2020*
93
5. Consolidated Statement of Cash Flows
The notes on pages 94 to 164 are an integral part of these Consolidated Financial Statements.
17, 18, 20
19
28
9
21
8
8
30.C.1
19
28
21
21
21
22
22
26
26
26
16
(728 )
(1,855 )
(8 )
(70,714 )
(19,269 )
(33,342 )
(4,187 )
(27,133 )
(3,779 )
(41,148 )
(3,408 )
(43,715 )
(108,104 )
(1,747 )
(20,536 )
(908 )
(849 )
(6 )
(1,289 )
(55 )
(10,986 )
(117 )
(29,437 )
(484 )
(66,285 )
(3,683 )
(3,285 )
(26 )
(71,865 )
(132,217 )
(1,267 )
(95,454 )
(8,744 )
(630 )
Cash ows from operating activities
Prot/(Loss) of the period
Adjustments for:
- Income tax
- Depreciation
- Amortization
- Amortization of grants
- Net nance costs
- Share of prot of equity-accounted investees, net of tax
- (Gain) / loss from sale of property, plant & equipment
- Loss from write-offs of property, plant & equipment
and intangible assets
- Unrealised (Gain) / Loss from valuation of derivatives
- (Reversal of) / Impairment loss on receivables & contract assets
- (Reversal of) / Impairment of inventories
Changes in:
- Inventories
- Trade and other receivables
- Trade and other payables
- Contract assets
- Contract liabilities
- Contract costs
- Employee benets
- Provisions
Cash generated from operating activities
Interest charges & related expenses paid
Income tax paid
Net Cash from operating activities
Cash ows from investing activities
Acquisition of property, plant and equipment
Acquisition of intangible assets
Proceeds from grants
Proceeds from sale of property, plant &
equipment & intangible assets
Acquisition of equity-accounted investee
Dividends received
Interest received
Acquisition of nancial assets
Proceeds from disposal of nancial assets
Net Cash ows used in investing activities
Cash ows from nancing activities
Proceeds from new borrowings
Repayment of borrowings
Principal elements of lease payments
Net cash ows used in nancing activities
Net (decrease)/ increase in cash and cash equivalents
Cash and cash equivalents at 1 January
Effect of movement in exchange rates on cash held
Cash and cash equivalents at 31 December
94
6. Notes to the Consolidated Financial Statements
1. Reporting entity
Cenergy Holdings S.A. (hereafter referred to as “the Company”, “the Holding” or “Cenergy Holdings”) is a Belgian
limited liability company. The Company’s registered ofce is located at 30 Avenue Marnix, 1000 Brussels Belgium .
The Company’s Consolidated Financial Statements include those of the Company and its subsidiaries (together
referred to as “Cenergy Holdings” or the “Group”), and Cenergy Holdings’ interest in associates accounted for using
the equity method.
Athens Stock exchange (trading ticker “CENER”). The Company’s electronic address is www.cenergyholdings.com,
where the Consolidated Financial Statements have been posted.
Cenergy Holdings is a subsidiary of Viohalco S.A. (79.78% of voting rights). Viohalco S.A. (“Viohalco”) is a Belgium-
based holding company whose subsidiaries are specialised in the manufacture of aluminium, copper, cables, steel
and steel pipes products and technological advancement.
2. Basis of accounting
Statement of compliance
The Consolidated Financial Statements have been prepared by Management in accordance with the International
Financial Reporting Standards (IFRS) as adopted by the European Union and authorized for issue by the Company’s
Board of Directors on 16 March 2022.
Details of the Company’s 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 nancial instruments held for hedging purposes (fair value);
• Equity investments at FVOCI (fair value);
• Net dened benet liability (present value of the obligation).
3. Functional currency and presentation currency
The functional and presentation currency of the Company is the euro. All amounts in the Consolidated Financial
Statements are rounded to the nearest thousand, unless otherwise indicated. As such, due to rounding, gures
shown as totals in certain tables may not be arithmetic aggregations of the gures that precede them.
4. Use of estimates and judgements
Preparing nancial statements in line with IFRS requires that Management makes judgements, estimates and
assumptions that affect the application of Cenergy Holdings’ accounting policies and the reported amounts of
assets, liabilities, income and expenses. The actual results may differ from these estimates.
Management’s estimates and judgements are reviewed on an ongoing basis. Revisions to estimates are recognised
prospectively.
Information about judgements, assumptions and estimation uncertainties that have signicant risk of resulting in a
material adjustment to the carrying amounts of assets and liabilities in the next nancial year is included in the
following notes:
• Note 7 – Revenue recognition;
• Note 11 – Measurement of dened benet obligations: key actuarial assumptions;
• Note 13 – Recognition of deferred tax assets, availability of future taxable prots against which carryforward tax
losses can be used;
• Note 15 – Recoverability of overdue receivable from a former customer in the Middle-East ;
• Note 19 – Impairment test: key assumptions underlying recoverable amounts;
• Note 30.C.1 – Measurement of expected credit losses on trade receivables and contract assets: key assumptions
in determining expected loss rates.
5. Signicant 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 Cenergy Holdings and its subsidiaries
and its equity-accounted investees.
5.1 Basis of Consolidation
(a) Business 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 Cenergy Holdings. To assess control, Cenergy Holdings takes into account
substantive potential voting rights.
Cenergy Holdings measures goodwill on the acquisition date as follows:
• the fair value of the consideration paid; plus
• the value of any non-controlling interest in the acquired subsidiary; less
• the fair value of identiable assets and liabilities assumed.
Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is immediately
recognized in the Consolidated Statement of Prot or Loss. Any expenses directly linked with acquisition are
directly posted in the Consolidated Statement of Prot or Loss. Any contingent consideration is recognized at its
fair value on the acquisition date.
(b) Common control transactions
A business combination, in which all of the combining entities or businesses are ultimately controlled by the
same party or parties both before and after the business combination and when control is not transitory, is a
common control transaction. The Group has chosen to account for such common control transactions at book
value (carry-over basis). The identiable net assets acquired are not measured at fair value but recorded at their
carrying amounts; intangible assets and contingent liabilities are recognized only to the extent that they were
recognised before the business combination in accordance with applicable IFRS. Any difference between the
consideration paid and the capital of the acquiree is presented in retained earnings within equity. Transaction
costs are expensed as incurred.
(c) Subsidiaries
Subsidiaries are entities controlled by Cenergy Holdings. Cenergy Holdings 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 nancial 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.
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(d) Non-controlling interests
Non-controlling interests (NCI) are measured at fair value or at their proportionate share of the acquiree’s
identiable net assets at the date of acquisition. This measurement is done on an acquisition by acquisition basis.
Changes in Cenergy Holdings’ interest in a subsidiary that do not result in a loss of control are accounted for as
equity transactions.
(e) Loss of control
When Cenergy Holdings loses control over a subsidiary, the assets and liabilities of the subsidiary are derecognised,
and any related NCI and other components of equity. Any resulting gain or loss is recognised in prot or loss. Any
interest retained in the former subsidiary is measured at fair value when control is lost.
(f) Associates
Associates are those entities in which Cenergy Holdings has signicant inuence, but not control or joint control,
over the nancial and operating policies. This is generally the case where Cenergy Holdings holds between 20% and
50% of the voting rights. Investments in associates are accounted for using the equity method of accounting (see
(h) below), after initially being recognised at cost.
(g) Joint arrangements
Under IFRS 11 Joint Arrangements, investments in joint arrangements are classied as either joint operations or joint
ventures. The classication depends on the contractual rights and obligations of each investor, rather than the legal
structure of the joint arrangement.
Joint operations
Cenergy Holdings 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 nancial statements under the appropriate headings.
Joint ventures
A joint venture is an arrangement in which Cenergy Holdings has joint control, whereby Cenergy Holdings 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 (see (h) below), after initially being recognised
at cost in the consolidated balance sheet.
(h) Equity method
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to
recognise Cenergy Holdings’ share of the post-acquisition prots or losses of the investee in prot or loss, and
Cenergy Holdings’ share of movements in other comprehensive income of the investee, until the date on which
signicant inuence 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 the Cenergy Holdings’ share of losses in an equity-accounted investment equals or exceeds its interest in the
entity, Cenergy Holdings does not recognise further losses, unless it has incurred obligations or made payments on
behalf of the other entity.
Cenergy Holdings’ interests in equity-accounted investees comprise only of interests in associates.
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(i) Transactions 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 the Group’s 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) Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Cenergy Holdings’
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 classied in the Consolidated Statement of Prot 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 qualifying cash ow hedges to the extent that the
hedges are effective and investments in equity securities designated as at FVOCI are recognised as Other
Comprehensive Income (OCI).
(b) Foreign 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
Cenergy Holdings recognizes revenue from the following major sources:
• Sale of products;
• Energy projects;
- Steel pipes projects, i.e. onshore and offshore customized pipelines produced for applications based on
customers’ specications.
- Cables projects, i.e. high-tech customized underground and submarine cables and "turnkey" cable systems
for power or data transmission and distribution.
• Rendering of services.
Revenue is measured based on the consideration specied in a contract with a customer and excludes amounts
collected on behalf of third parties. Cenergy Holdings 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.
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Sale of products
Cenergy Holdings sells hollow structural sections for the construction sector, power cables, telecom cables, wires
and raw materials.
For sales of products, 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 occurs when the goods have been shipped to the customers’ location, unless
otherwise specied in the terms of the contract. The terms dened 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.
Energy projects
The Group produces and sells customized products to customers for energy projects.
In the cables sector, Cenergy Holdings’ subsidiaries also produce and sell "turnkey" cable systems, i.e. supply and
install complete cable systems.
Under the terms of the contracts and due to the high degree of customization, these products have no alternative
use, since they are produced according to customers’ specications, while 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 Cenergy Holdings’ failure to perform as promised. Revenue from such projects is therefore recognised
over time.
For distinct performance obligations identied, the most appropriate method to measure progress is used. The
methods used are the following:
• For 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, when time elapsed is the most relevant method to measure the progress of the performance
obligation.
ii. The quantity of manufactured and tested cable drums or steel pipes compared with the total quantity to be
produced according to the contract. This method is used for customized land cables and steel pipes, since
the production of such products is performed in batches and as a result the performance obligations related
are satised as certain batches of agreed quantities have been produced.
• For installation phases of cables sector’s turnkey projects, the method to measure progress is based on appraisal
of results achieved or milestones reached, based to clearly dened 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.
Management considers that these methods are appropriate measures of the progress towards complete satisfaction
of these performance obligations under IFRS 15.
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 “Contract assets” and
“Contract liabilities” 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 nal 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.
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There is not considered to be a signicant nancing component in energy projects contracts with customers, as the
period between the recognition of revenue and the milestone payment is less than one year.
Rendering of services
Cenergy Holdings recognises revenue from rendering of services in proportion to the stage of completion of the
transaction at the reporting date. The stage of completion is assessed based on surveys of work performed.
Services provided by Cenergy Holdings are mainly related with the products sold by its subsidiaries and mainly
include:
• Metal processing technical support service;
• Design and engineering of customized applications;
• Supervision services;
• Installation services;
• Repairs and replacements.
All of the above, when related to Energy projects, are reported in the Cables’ and Steel pipes’ revenue streams,
respectively.
If payment for services is not due from the customer until the services are complete, a contract asset is recognised
over the period in which the services are performed representing the right to consideration for the services
performed to date. These contract assets are presented on the Consolidated Statement of Financial Position in the
line “Contract assets”.
Contract costs
Cenergy Holdings recognize the incremental costs of obtaining contracts with customers and the costs incurred in
fullling 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 “Contract costs” in the Consolidated Statement 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.
Fullment costs are only capitalised 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 benets
(a) Short-term employee benets
Short-term employee benets are expensed as the related service is provided. A liability is recognised for the
amount expected to be paid if Cenergy Holdings 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) Dened contribution plans
Dened-contribution plans are plans for the period after the employee has ceased to work during which Cenergy
Holdings pays a dened amount to a third legal entity without any other obligation. The accrued cost of dened-
contribution programs is recorded as an expense in the period that the related service is provided.
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(c) Dened benet plans
Cenergy Holdings’ net obligation in respect of dened benet plans is calculated separately for each plan by
estimating the amount of future benet 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 benets will be paid.
The calculation of dened benet obligations is performed annually by a qualied actuary using the projected unit
credit method, while benets are attributed over the last 16 years before retirement of each employee.
Remeasurements of the net dened benet liability, which comprise actuarial gains and losses, are recognised
immediately in OCI. Cenergy Holdings determines the net interest expense on the net dened benet liability for
the period by applying the discount rate used to measure the dened benet obligation at the beginning of the
annual period to the then-net dened benet liability, taking into account any changes in the net dened benet
liability during the period as a result of contributions and benet payments. Net interest expense and other
expenses related to dened benet plans are recognised in prot or loss.
When the benets of a plan are changed or when a plan is curtailed, the resulting change in benet that relates to
past service or the gain or loss on curtailment is recognised immediately in prot or loss. Cenergy Holdings
recognises gains and losses on the settlement of a dened benet plan when the settlement occurs.
(d) Termination benets
Termination benets are expensed at the earlier of when Cenergy Holdings can no longer withdraw the offer of
those benets and when Cenergy Holdings recognises costs for a restructuring. If benets 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 Cenergy Holdings will comply with all attached conditions.
Government grants relating to costs are deferred and recognized in the statement of prot 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 Consolidated Statement of Prot or Loss (line “Other
income”) on a straight line basis over the expected useful lives of the related assets.
5.6 Finance income and nance costs
Cenergy Holdings’ nance income and nance costs mainly include:
• interest income;
• interest expense;
• dividend income;
• foreign currency gains and losses from loans and deposits.
Dividend income is recognised in prot or loss on the date on which the right to receive payment is established.
Interest income or expense is recognised using the effective interest method.
The “effective interest rate” is the rate that exactly discounts estimated future cash payments or receipts through
the expected life of the nancial instrument to:
• the gross carrying amount of the nancial asset; or
• the amortised cost of the nancial liability.
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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 nancial liability.
5.7 Income tax
Income tax expense comprises current and deferred tax. It is recognised in prot or loss except to the extent that it
relates to a business combination, or 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 nancial 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 prot or loss;
• Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent
that Cenergy Holdings is 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 prots 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 benet will be realised; such reductions are reversed when the probability of future
taxable prots improves.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised to the extent that is has
become probable that future taxable prots 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 reects the tax consequences that would follow from the manner in which
Cenergy Holdings expects, 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 scal authority.
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’s current sales price, in the ordinary course of business activities, less any possible selling expenses,
whenever such a case occurs.
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The write-down of inventories to net realisable value and any reversals are recognized in “Cost of sales” 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’s acquisition or
self-construction. The cost of self-constructed xed assets includes the cost of direct labour, materials and any other
cost that is required for the xed 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 benets associated with the
expenditure will ow to Cenergy Holdings. Repair and maintenance costs are recorded in the Consolidated
Statement of Prot 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 prot or loss in the category “Other income (expenses)”.
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 prot
or loss. Land is not depreciated.
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
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if
appropriate.
C. Reclassication to investment property
When the use of a property changes from owner-occupied to investment property, the property is reclassied
accordingly.
The item is reclassied at its net book value at the date of reclassication which becomes its deemed cost for
subsequent accounting purposes.
D. Reclassication to assets held for sale
Non-current assets and disposal group of assets are reclassied as held for sale if their carrying amount will be
recovered principally through a sale transaction rather than continuing use.
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5.10 Intangible assets
A. Recognition and measurement
Research and Development
: Expenditure on research activities is recognised in prot 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 benets are probable and Cenergy Holdings intends to and
have sufcient resources to complete development and to use or sell the asset. Otherwise, it is recognised in prot
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 10
years. Expenses that are associated with the software’s maintenance are recognised in prot or loss in the year in
which they are incurred.
Other intangible assets
: Other intangible assets, including customer relationships, “know-how”, patents and
trademarks, which are acquired by Cenergy Holdings and have nite useful lives are measured at cost less
accumulated amortisation and any accumulated impairment losses. These assets are amortised on the straight line
method over their estimated useful lives. Other intangible assets having indenite useful lives are measured at cost
less accumulated impairment losses.
B. Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benets embodied in the specic
asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is
recognised in prot 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 prot or loss. Goodwill and other
intangible assets with indenite useful lives are not amortised.
The estimated useful lives for the current and comparative periods are as follows:
• Trademarks and licenses 10 – 15 years
• Software programs 3 – 10 years
Intangible assets with indenite useful lives are not amortised and are subject to an annual impairment test.
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, is owned by Cenergy Holdings either for the collection of rents or for
capital appreciation 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) is
directly recorded in prot and loss as expense. The reversal of previously recognised impairment losses is also
recognised in prot and loss as income. The land is not depreciated. The buildings are depreciated by applying the
straight line method.
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5.12 Cash and cash equivalents
For the purpose of presentation in the statement of cash ows, cash and cash equivalents includes cash on hand
and deposits held at call with nancial institutions.
5.13 Impairment
A. Non-derivative nancial assets
Cenergy Holdings recognises loss allowances for expected credit losses (ECLs) on:
• nancial assets measured at amortised cost; and
• contract assets.
Loss allowances for trade receivables and contract assets are always measured at an amount equal to lifetime ECLs.
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of trade receivables
and contract assets.
Cenergy Holdings considers a nancial asset to be in default when the borrower is unlikely to pay its credit obligations
in full, without recourse by Cenergy Holdings companies to actions such as realising security (if any is held).
The maximum period considered when estimating ECLs is the maximum contractual period over which the Cenergy
Holdings 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 ows due to the entity in accordance with the contract and the cash
ows that the Group expects to receive). ECLs are discounted at the effective interest rate of the nancial asset.
Presentation of allowance for ECL in the statement of nancial position
Loss allowances for nancial 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 prot or loss and OCI.
Write-off
The gross carrying amount of a nancial asset is written off when Cenergy Holdings has no reasonable expectations
of recovering a nancial asset in its entirety or a portion thereof. Cenergy Holdings subsidiaries make an assessment
on an individual basis with respect to the timing and amount of write-off based on whether there is a reasonable
expectation of recovery. Cenergy Holdings expects no signicant recovery from the amount written off. However,
nancial assets that are written off could still be subject to enforcement activities in order to comply with the
Group’s procedures for recovery of amounts due.
B. Non-nancial assets
At each reporting date, Cenergy Holdings and its companies review the carrying amounts of its non-nancial 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’s recoverable amount is estimated. Goodwill and intangible assets with
indenite useful life is tested annually for impairment.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inows
from continuing use that are largely independent of the cash inows of other assets or CGUs. Goodwill arising from
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a business combination is allocated to CGUs or groups of CGUs that are expected to benet 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 ows, discounted to their present value using a pre-tax discount rate
that reects current market assessments of the time value of money and the risks specic to the asset or CGU.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount.
Impairment losses are recognised in prot or loss under “Other expenses”. They are allocated rst 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’s 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, the Group 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 identied asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right to control the use of an identied asset, the Group
uses the denition of a lease in IFRS 16.
Accounting for lease contracts as a lessee
Cenergy Holdings companies lease various ofces, warehouses, machinery and cars. Rental contracts are typically
made for xed periods of 1 to 5 years. Lease terms are negotiated on an individual basis and contain a wide range of
different terms and conditions.
Cenergy Holdings 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, which comprises the initial amount of the lease liability adjusted for any
lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of
costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is
located, less any lease incentives received.
Subsequently they are measured at cost less any accumulated depreciation and impairment losses, and adjusted for
certain remeasurements of the lease liability. The right-of-use asset is depreciated using the straight-line method
from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying
asset to the Group by the end of the lease term or the cost of the right-of-use asset reects that the Group will
exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the
underlying asset, which is determined on the same basis as those of property and equipment.
The lease liability is initially measured at the present value of the following lease payments:
• xed payments (including in-substance xed 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 reects the lessee exercising that option.
These 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 entered into the lease agreement. Generally, Cenergy
Holdings uses its incremental borrowing rate as the discount rate.
This is the rate that the lessee, i.e. each subsidiary of Cenergy Holdings, 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
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made. It is remeasured if there is a modication 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.
Cenergy Holdings elected not to separate non-lease components from lease components.
Lease liabilities and right-of-use assets are presented separately in the statement of nancial position.
Cenergy Holdings has elected to present interest paid related to lease liabilities in the Consolidated Statement of
Cash Flows, within the line “Interest charges & related expenses paid” in operating activities.
Short-term leases and leases of low-value assets
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as
an expense in prot or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets
comprise IT-equipment, small items of ofce furniture and other equipment.
Cenery Holdings companies lease administration ofces and warehouses by the ultimate parent company Viohalco
S.A. and other related companies. All contracts for administration ofces and warehouses do not include any early
termination penalty clauses and they are cancellable at any time. For this reason, all intercompany contracts for
administration ofces and warehouses are considered as short term and Cenergy Holdings recognises the lease
payments associated with these leases as an expense on a straight-line basis over the lease term.
Rental income
Rental income is recognised as other income 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.
5.15 Financial instruments
A. Recognition and initial measurement
Trade receivables are initially recognised when they are originated. All other nancial assets and nancial liabilities
are initially recognised when Cenergy Holdings becomes a party to the contractual provisions of the instrument.
A nancial asset (unless it is a trade receivable without a signicant nancing component that is initially measured
at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are
directly attributable to its acquisition. A trade receivable without a signicant nancing component is initially
measured at the transaction price.
B. Classication and subsequent measurement
Financial assets
On initial recognition, a nancial asset is classied as measured at: amortised cost; FVOCI – debt investment; FVOCI
– equity investment; or FVTPL.
Financial assets are not reclassied subsequent to their initial recognition, unless Cenergy Holdings changes its
business model for managing nancial assets, in which case all affected nancial assets are reclassied on the rst
day of the rst reporting period following the change in the business model.
A nancial 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 ows; and
• its contractual terms give rise on specied dates to cash ows that are solely payments of principal and interest
on the principal amount outstanding.
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A debt investment is measured at FVOCI 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 achieved by both collecting contractual cash ows and
selling nancial assets; and
• its contractual terms give rise on specied dates to cash ows 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, Cenergy Holdings may irrevocably elect to
present subsequent changes in the investment’s fair value in OCI. This election is made on an investment-by-
investment basis.
All nancial assets (except derivatives held for hedging purposes) not classied as measured at amortised cost or
FVOCI as described above are measured at FVTPL. On initial recognition, Cenergy Holdings may irrevocably
designate a nancial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as
at FVTPL if doing so eliminates or signicantly reduces an accounting mismatch that would otherwise arise.
Financial assets – Business model assessment:
Cenergy Holdings makes an assessment of the objective of the business model in which a nancial asset is held at a
portfolio level because this best reects the way the business is managed and information is provided to
management. Transfers of nancial assets to third parties in transactions that do not qualify for derecognition are
not considered sales for this purpose, consistent with the Group’s continuing recognition of the assets.
Financial assets – Assessment whether contractual cash ows are solely payments of principal and interest:
For the purposes of this assessment, “principal” is dened as the fair value of the nancial asset on initial recognition.
“Interest” is dened 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 prot margin. In assessing whether the contractual cash ows are solely payments of
principal and interest, Cenergy Holdings considers the contractual terms of the instrument. This includes assessing
whether the nancial asset contains a contractual term that could change the timing or amount of contractual cash
ows such that it would not meet this condition. In making this assessment, Cenergy Holdings considers:
• contingent events that would change the amount or timing of cash ows;
• terms that may adjust the contractual coupon rate, including variable-rate features;
• prepayment and extension features; and
• terms that limit the claim to cash ows from specied assets (e.g. non-recourse features).
Financial assets – 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 prot 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
prot or loss. Any gain or loss on derecognition is recognised in prot 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 prot or loss. Other net gains and losses are
recognised in OCI. On derecognition, gains and losses accumulated in OCI are
reclassied to prot or loss.
Equity investments at FVOCI These assets are subsequently measured at fair value. Dividends are recognised as
income in prot 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 reclassied to prot or loss.
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Financial liabilities
Financial liabilities are classied as measured at amortised cost.
All nancial liabilities (except derivatives held for hedging purposes) are subsequently measured at amortised cost
using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in prot
or loss. Any gain or loss on derecognition is also recognised in prot or loss.
C. Derecognition
Financial assets
Cenergy Holdings derecognises a nancial asset when
• the contractual rights to the cash ows from the nancial asset expire; or
• it transfers the rights to receive the contractual cash ows in a transaction:
- in which substantially all of the risks and rewards of ownership of the nancial asset are transferred; or
- in which Cenergy Holdings neither transfers nor retains substantially all of the risks and rewards of ownership
and it does not retain control of the nancial asset.
Cenergy Holdings enters into transactions whereby it transfers assets recognised in its statement of nancial
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
Cenergy Holdings derecognises a nancial liability when its contractual obligations are discharged or cancelled, or
expire. Cenergy Holdings also derecognises a nancial liability when its terms are modied and the cash ows of the
modied liability are substantially different, in which case a new nancial liability based on the modied terms is
recognised at fair value.
On derecognition of a nancial liability, the difference between the carrying amount extinguished and the
consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in prot or loss.
D. Offsetting
Financial assets and nancial liabilities are offset and the net amount presented in the Consolidated Statement of
Financial Position when, and only when, Cenergy Holdings currently has a legally enforceable right to setoff 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
Cenergy Holdings has elected not to adopt the provisions of IFRS 9 regarding the hedge accounting and continues
to apply IAS 39.
Cenergy Holdings holds derivative nancial instruments designated as fair value or cash ow hedges. Derivatives
are used to cover risks arising from changes in prices of metals, uctuations of foreign exchange rates and changes
in interest rates on borrowings.
Derivatives are initially measured at fair value; any directly attributable transaction costs are recognised in prot or
loss as incurred. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are
generally recognised in prot or loss, unless the instrument qualies for cash ow hedge accounting.
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Fair value hedge
Derivatives are designated as fair value hedges when the exposure to changes in the fair value of a recognized
nancial asset or liability is hedged.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognized in the
Consolidated Statement of Prot or Loss, along with any changes in the fair value of the hedged asset or liability
that are attributable to the hedged risk.
Cash ow hedge
The effective portion of changes in the fair value of derivatives designated as cash ow hedges is recognized in the
“Hedging reserve”. Any ineffective proportion is recognized immediately in prot or loss.
The amounts recognized in the “Hedging reserve” are reclassied to the Consolidated Statement of Prot or Loss
when the hedged items affect prot or loss.
When a hedge item matures or is sold or when the hedge no longer meets the hedge accounting criteria, hedge
accounting is discontinued prospectively, amounts recorded in “Hedging reserve” the prots and losses accrued to
“Equity” remain as a reserve and are reclassied to prot or loss when the hedged asset affects prot or loss. In the
case of a hedge on a forecast future transaction which is no longer expected to occur, amounts recorded in
“Hedging reserve” are reclassied to prot and loss.
Cenergy Holdings’ companies examine the effectiveness of the cash ow hedges 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 ow hedges is examined by applying the dollar offset
method on a cumulative basis.
5.16 Share capital
Shareholder’s 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).
5.17 Provisions
Provisions are measured by discounting the expected future cash ows at a pre-tax rate. The discount rate used for
the determination of present value reects current market assessments of the time value of money and the risks
specic to the obligation.
Provisions are recognised when:
i. There is a present legal or constructive obligation as a result of past events.
ii. Payment is probable to settle the obligation.
iii. The amount of the payment in question can be reliably estimated.
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 Cenergy Holdings has a constructive obligation, which is when a
detailed formal plan identies 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 notied of the plan’s main features or when the company has already started to implement the
plan.
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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, Cenergy
Holdings recognises any impairment loss on the associated assets with the contract.
5.18 Earnings per share
Cenergy Holdings presents basic and diluted earnings per share. Basic earnings per share are calculated by dividing
the net prot/ loss (-) attributable to holders of the Company’s ordinary shares by the average weighted number of
outstanding ordinary shares during each period.
Diluted earnings per share are determined by adjusting the prot 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.
5.19 Operating prot
Operating prot is the result generated from the continuing principal revenue-producing activities of Cenergy
Holdings, as well as other income and expenses related to operating activities. Operating prot excludes net nance
costs, share of prot of equity-accounted investees and income taxes.
5.20 Fair value measurement
“Fair value” 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 Cenergy Holdings has access at that date. The fair value of a liability reects its non-performance risk.
A number of Cenergy Holdings’ accounting policies and disclosures require the measurement of fair values, for both
nancial and non-nancial assets and liabilities.
When one is available, Cenergy Holdings measures the fair value of an instrument using the quoted price in an
active market for that instrument. A market is regarded as “active” if transactions for the asset or liability take place
with sufcient frequency and volume to provide pricing information on an ongoing basis.
If there is no quoted price in an active market, then Cenergy Holdings 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 Cenergy Holdings 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 nancial instrument on initial recognition is normally the transaction price –
i.e. the fair value of the consideration given or received. If Cenergy Holdings 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 insignicant in relation to the measurement, then the nancial 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 prot 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.
5.21 New standards, amendments to standards and interpretations
A number of new or amended standards became applicable for the current nancial year and subsequent years. The
Group has applied all of the new standards, interpretations and amendments to existing standards that were
mandatory for the rst time in the scal year beginning 1 January 2021 and none of the new or amended standards
and interpretations has had material impact on recognition and measurement in the Consolidated Financial
Statements, except for the effect of the adoption of the IFRIC Agenda Decision ‘Attributing Benet to Periods of
Service’ as presented in note 5.22.
110
Standards and Interpretations effective for the current nancial year
The following new standards and amendments to standards are mandatory for the rst time for the nancial year
beginning 1 January 2021 and have been endorsed by the European Union.
IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Amendments) ‘Interest rate benchmark reform – Phase 2’
The amendments complement those issued in 2019 and focus on the effects on nancial statements when a
company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the reform. More
specically, the amendments relate to how a company will account for changes in the contractual cash ows of
nancial instruments, how it will account for the change in its hedging relationships and the information it should
disclose.
IFRS 16 (Amendment) ‘Covid-19-Related Rent Concessions’
If certain conditions are met, the Amendment would permit lessees, as a practical expedient, not to assess whether
particular covid-19-related rent concessions are lease modications. Instead, lessees that apply the practical
expedient would account for those rent concessions as if they were not lease modications.
International Financial Reporting Interpretations Committee (IFRIC) Agenda Decision: IAS 19 “Employee
Benets” - Attributing Benet to Periods of Service
An agenda decision was published in May 2021 by the IFRIC in relation to IAS 19 “employee benets” and more
specically to how the applicable principles and requirements in IFRS Standards apply to attributing benet to
periods of service. Further details and the impact on the Cenergy Holdings Group’s consolidated nancial
statements from the adoption of this decision is presented in note 5.22.
Standards and Interpretations effective for subsequent periods
The following new standards and amendments have been issued, but are not mandatory for the rst time for the
nancial year beginning 1 January 2021 but have been endorsed by the European Union. The following amendments
are not expected to have a material impact on Cenergy Holdings Consolidated Financial Statements in the current
or future reporting periods.
IFRS 16 (Amendment) ‘Covid-19-Related Rent Concessions’ (effective for annual periods beginning on or after 1
April 2021)
The amendments extend, by one year, the May 2020 amendment that provides lessees with an exemption from
assessing whether a COVID-19-related rent concession is a lease modication. In particular, the amendment permits
a lessee to apply the practical expedient regarding COVID-19-related rent concessions to rent concessions for which
any reduction in lease payments affects only payments originally due on or before 30 June 2022 (rather than only
payments originally due on or before 30 June 2021).
Amendments to IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions,
Contingent Liabilities and Contingent Assets as well as Annual Improvements (effective for annual periods
beginning on or after 1 January 2022)
The package of amendments includes narrow-scope amendments to three Standards as well as the Board’s Annual
Improvements, which are changes that clarify the wording or correct minor consequences, oversights or conicts
between requirements in the Standards.
• Amendments to IFRS 3 Business Combinations update a reference in IFRS 3 to the Conceptual Framework for
Financial Reporting without changing the accounting requirements for business combinations.
• Amendments to IAS 16 Property, Plant and Equipment prohibit a company from deducting from the cost of
property, plant and equipment amounts received from selling items produced while the company is preparing the
asset for its intended use. Instead, a company will recognise such sales proceeds and related cost in prot or loss.
• Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets specify which costs a
company includes when assessing whether a contract will be loss-making.
• Annual Improvements 2018-2020 make minor amendments to IFRS 1 First-time Adoption of International
Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the Illustrative Examples
accompanying IFRS 16 Leases.
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The following amendments have been issued, but are not mandatory for the rst time for the nancial year
beginning 1 January 2021 and have not been endorsed by the European Union. The following amendments are not
expected to have a material impact on Cenergy Holdings Consolidated Financial Statements in the current or future
reporting periods.
Amendments to IAS 1 ‘Presentation of Financial Statements: Classication of Liabilities as current or non-current’
(effective 01/01/2023), affect only the presentation of liabilities in the statement of nancial position — not the
amount or timing of recognition of any asset, liability income or expenses, or the information that entities disclose
about those items. They:
• Clarify that the classication 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
"right" to defer settlement by at least twelve months and make explicit that only rights in place "at the end of
the reporting period" should affect the classication of a liability;
• Clarify that classication 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.
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of
Accounting policies (effective 1 January 2023).
The amendments aim to improve accounting policy disclosures and to help users of the nancial statements to
distinguish between changes in accounting estimates and changes in accounting policies. The IAS 1 amendment
requires companies to disclose their material accounting policy information rather than their signicant accounting
policies. Further, the amendment to IAS 1 claries that immaterial accounting policy information need not be
disclosed. To support this amendment, the Board also amended IFRS Practice Statement 2, ‘Making Materiality
Judgements’, to provide guidance on how to apply the concept of materiality to accounting policy disclosures. The
amendments are effective for annual reporting periods beginning on or after 1 January 2023. Earlier application is
permitted (subject to any local endorsement process).
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Denition of Accounting
Estimates (effective 1 January 2023).
The amendment to IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, claries how
companies should distinguish changes in accounting policies from changes in accounting estimates. The
amendments are effective for annual reporting periods beginning on or after 1 January 2023. Earlier application is
permitted (subject to any local endorsement process).
Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single
Transaction (effective 1 January 2023).
The amendments clarify how companies account for deferred tax on transactions such as leases and
decommissioning obligations. The main change in the amendments is an exemption from the initial recognition
exemption of IAS 12.15(b) and IAS 12.24. Accordingly, the initial recognition exemption does not apply to
transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition.
The amendments are effective for annual reporting periods beginning on or after 1 January 2023. Early adoption is
permitted.
Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information
(issued on 9 December 2021, effective 1 January 2023).
The amendment is a transition option relating to comparative information about nancial assets presented on initial
application of IFRS 17. The amendment is aimed at helping entities to avoid temporary accounting mismatches
between nancial assets and insurance contract liabilities, and therefore improve the usefulness of comparative
information for users of nancial statements.
5.22. Change in accounting policy
In May 2021 the IFRS Interpretations Committee (IFRIC) nalized an agenda decision that includes material
explaining how the applicable principles and requirements in IFRS Standards apply on attributing benets to
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periods of service on a specic fact pattern of a dened benet plan, which has the terms described below:
a. employees are entitled to a lump sum benet payment when they reach a specied retirement age, provided
they are employed by the entity when they reach that retirement age; and
b. the amount of the retirement benet to which an employee is entitled depends on the length of employee
service before the retirement age and is capped at a specied number of consecutive years of service.
The indemnities' policy applied by Greek subsidiaries provides for a fact pattern that aligns with the one described
in the IFRIC agenda decision. Therefore, to account for the Dened Benet Obligation, Greek subsidiaries of
Cenergy Holdings Group are now attributing benets over the last 16 years before retirement of each employee.
Prior to the issuance of this agenda decision, the Greek subsidiaries applied IAS 19 by attributing the benets
dened in accordance with the applicable Greek legislation (Law 3198/1955, Law 2112/1920 and Law 4093/2012)
during the period from the hiring until the expected retirement date of each employee.
Based on IAS 8, this change shall be treated as a change in accounting policy.
The following tables present the effect of implementing the nal agenda decision regarding every affected specic
item of the consolidated nancial statements for the comparative periods.
i. Consolidated Statement of Financial Position
Effect on 2020 opening balances:
At 31 December 2019
Amounts in EUR thousand As reported IAS 19 Restatement Restated gures
Equity - accounted investees 34,583 168 34,751
Deferred tax assets 2,164 (202) 1,962
Other Non-Current assets 460,065 - 460,065
Non-Current assets 496,812 (33) 496,778
Current assets 550,814 - 550,814
Total assets 1,047,626 (33) 1,047,592
Retained earnings 20,377 2,684 23,062
Other component of equity attributable
to owners of the Company 211,191 - 211,191
Equity attributable to owners of the Company 231,568 2,684 234,252
Non-controlling interests 295 - 295
Total equity 231,862 2,684 234,547
Employee benets 5,677 (3,311) 2,366
Deferred tax liabilities 22,985 593 23,578
Other Non-Current liabilities 205,438 - 205,438
Non-Current liabilities 234,100 (2,718) 231,382
Current liabilities 581,663 - 581,663
Total liabilities 815,763 (2,718) 813,045
Total equity and liabilities 1,047,626 (33) 1,047,592
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Effect on 2020 closing balances:
At 31 December 2020
Amounts in EUR thousand As reported IAS 19 Restatement Restated gures
Equity - accounted investees 34,339 201 34,539
Deferred tax assets 2,908 (233) 2,675
Other Non-Current Assets 501,675 - 501,675
Non-Current assets 538,921 (32) 538,889
Current assets 473,103 - 473,103
Total assets 1,012,024 (32) 1,011,992
Retained earnings 44,556 3,125 47,681
Other component of equity attributable
to owners of the Company 206,919 - 206,919
Equity attributable to owners of the Company 251,475 3,125 254,600
Non-controlling interests 287 - 287
Total equity 251,762 3,125 254,887
Employee benets 6,406 (3,848) 2,558
Deferred tax liabilities 31,668 690 32,359
Other Non-Current liabilities 204,899 - 204,899
Non-Current liabilities 242,973 (3,158) 239,816
Current liabilities 517,289 - 517,289
Total liabilities 760,262 (3,158) 757,105
Total equity and liabilities 1,012,024 (32) 1,011,992
ii. Consolidated Statement of Prot or Loss and OCI
For the period ended 31 December 2020
Amounts in EUR thousand As reported IAS 19 Restatement Restated gures
Revenue 908,417 - 908,417
Cost of sales (804,924) 20 (804,904)
Gross prot 103,493 20 103,513
Other income 5,088 - 5,088
Selling and distribution expenses (13,719) - (13,719)
Administrative expenses (24,895) - (24,895)
Reversal of / (Impairment loss) on receivables
and contract assets 55 - 55
Other expenses (3,810) 165 (3,645)
Operating result 66,211 185 66,395
Net nance costs (31,640) - (31,640)
Share of prot of equity-accounted investees, net of tax 838 10 849
Prot before tax 35,410 195 35,604
Income tax expense (10,638) (44) (10,683)
Prot for the year 24,771 151 24,922
Remeasurements of dened benet liability (447) 353 (94)
Related tax 106 (85) 22
Share of other comprehensive income of associates
accounted for using the equity method (161) 22 (138)
Other comprehensive income / (expense) after tax (4,371) - (4,371)
Total comprehensive income after tax 19,899 441 20,340
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iii. Consolidated Statement of Cash Flows
For the period ended 31 December 2020
Amounts in EUR thousand As reported IAS 19 Restatement Restated gures
Cash ows from operating activities
Prot of the period 24,771 151 24,922
Adjustments for:
- Income tax 10,638 44 10,683
- Share of prot of equity-accounted investees, net of tax (838) (10) (849)
- Other 54,778 - 54,778
Changes in:
- Employee benets 283 (185) 99
Other 68,943 - 68,943
Net Cash inows from operating activities 158,575 - 158,575
Net Cash ows used in investing activities (71,865) - (71,865)
Net cash ows used in nancing activities (95,454) - (95,454)
Net (decrease)/ increase in cash and cash equivalents (8,744) - (8,744)
Cash and cash equivalents at 1 January 90,408 - 90,408
Effect of movement in exchange rates on cash held (630) - (630)
Cash and cash equivalents at 31 December 81,035 - 81,035
6. Operating segments
A. Basis for the division into segments
Cenergy Holdings is divided into 2 reportable segments:
• Cables;
• Steel Pipes.
For management purposes, Cenergy Holdings is split into two major strategic reportable segments which operate in
different industries. 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 Cenergy Holdings reports its segmental information.
The segment analysis presented in these Consolidated Financial Statements reects operations analysed by
business. This is the way the chief operating decision maker of Cenergy Holdings regularly reviews the operating
results of the Group in order to allocate resources to segments and in assessing their performance.
A brief description of the segments is as follows:
• Cables: Hellenic Cables, its subsidiaries, and Icme Ecab S.A. are a cable producer, manufacturing power,
telecommunication and submarine cables, as well as 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.
• Other activities: The segment includes the activities of the Holding company.
B. Information about reportable segments and reconciliations to IFRS measures
The information disclosed in the tables below is derived directly from the internal nancial reporting system used by
the Board (i.e. chief operating decision maker) to monitor and evaluate the performance of the operating segments
separately.
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The following tables illustrate the information about the reportable segments’ prot or loss, assets and liabilities at
31 December 2021 and 2020, and for the years then ended.
2021 Reportable segments
Steel Other
Amounts in EUR thousand Note Cables Pipes activities Total
Segment revenue 1,354,164 242,941 - 1,597,104
Inter-segment revenue (529,873) (13,028) - (542,901)
External revenue 7 824,291 229,913 - 1,054,203
Gross prot 92,521 16,152 - 108,673
Operating prot / (loss) 66,425 (6,881) (1,901) 57,642
Finance income 201 27 36 264
Finance costs (21,740) (7,505) (4) (29,249)
Share of prot of equity accounted investees, net of tax - 419 1,436 1,855
Prot / (Loss) before tax 44,886 (13,940) (433) 30,513
Income tax expense (7,670) (764) - (8,434)
Prot/(Loss) for the year 37,216 (14,704) (433) 22,079
Depreciation and amortization (16,849) (8,850) (6) (25,705)
Segment assets 778,654 397,801 29,496 1,205,950
Non-current assets excl. deferred tax and nancial instruments 323,632 204,121 22,023 549,776
Equity-accounted investees - 14,429 22,002 36,431
Segment liabilities 661,337 266,445 627 928,409
Capital expenditure 17/19 34,988 9,549 - 44,538
2020 Reportable segments
Steel Other
Amounts in EUR thousand Note Cables Pipes activities Total
Segment revenue 920,644 340,430 - 1,261,074
Inter-segment revenue (320,786) (31,871) - (352,657)
External revenue 7 599,858 308,559 - 908,417
Gross prot 79,609 23,904 - 103,513
Operating prot / (loss) 56,281 11,982 (1,867) 66,395
Finance income 206 150 - 356
Finance costs (21,240) (10,753) (3) (31,996)
Share of prot of equity accounted investees, net of tax - (38) 887 849
Prot / (Loss) before tax 35,247 1,341 (983) 35,604
Income tax expense (8,886) (1,797) - (10,683)
Prot/(Loss) for the year 26,361 (456) (983) 24,922
Depreciation and amortization (15,225) (8,844) (2) (24,071)
Segment Assets 644,248 339,192 28,552 1,011,992
Non-current assets excl. deferred tax and nancial instruments 306,157 202,535 20,994 529,686
Equity-accounted investees - 13,573 20,966 34,539
Segment liabilities 564,384 192,202 518 757,105
Capital expenditure 17/19 49,381 15,486 - 64,867
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C. Geographic information
Cenergy Holdings’ segments are managed on a worldwide basis, but operate manufacturing facilities and sales
ofces primarily in Greece, Bulgaria and Romania.
The segmental information below is based on the segment revenue from external customers by country of domicile
of customers and segment assets were based on the geographic location of the assets.
Amounts in EUR thousand For the year ended 31 December
Revenue 2021 2020
Belgium 12,846 4,781
Greece 353,658 313,327
Germany 149,328 91,868
Romania 43,819 33,382
United Kingdom 77,803 59,596
Other European Union countries 219,192 285,460
Other European countries 43,922 11,228
Asia 124,687 48,729
Americas 25,475 49,901
Africa 3,474 10,094
Oceania - 51
Total 1,054,203 908,417
The geographic information below analyses the consolidated non-current assets by the Company’s country of
domicile and other countries. In presenting the geographic information, segment assets were based on the
geographic location of the assets.
Amounts in EUR thousand At 31 December
Property, Plant & Equipment 2021 2020
Belgium - 1
Greece 450,631 433,093
Other 25,827 24,844
Total 476,458 457,937
Amounts in EUR thousand At 31 December
Right of use assets 2021 2020
Belgium 21 27
Greece 2,078 2,493
Other 1,370 3,078
Total 3,469 5,598
Amounts in EUR thousand At 31 December
Intangible assets 2021 2020
Belgium - -
Greece 29,742 27,832
Other 1,512 1,490
Total 31,254 29,323
117
118
Amounts in EUR thousand At 31 December
Investment property 2021 2020
Belgium - -
Greece 764 764
Other - -
Total 764 764
Amounts in EUR thousand At 31 December
Additions in Property, Plant & Equipment,
Intangible assets & Right of use assets 2021 2020
Belgium - 29
Greece 42,510 62,265
Other 2,937 4,201
Total 45,446 66,495
7. Revenue
A. Signicant accounting policy
Revenue is measured based on the consideration specied in a contract with a customer and excludes amounts
collected on behalf of third parties. Cenergy Holdings recognises revenue when it transfers control over a product or
service to a customer. For the detailed accounting policy, see Note 5.3
B. Nature of goods and services
Steel pipes projects
Corinth Pipeworks produces and sells customized products to customers mainly for onshore and offshore pipelines
for oil and gas transportation and casing pipes. Under the terms of the contracts and due to the high degree of
customization, these products have no alternative use, since they are produced according to customers’
specications, while 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 Cenergy Holdings’ failure to perform as
promised. Revenue from such projects is therefore recognised over time.
Hollow structural sections
These steel products are primarily used in the construction sector and they are used as structural components in
metal constructions. For sales of such products, revenue is recognised at a point of time, when the control of the
goods sold has been transferred.
Cables projects
Cenergy Holdings’ subsidiaries in the cables segment produces and sells "turnkey" cable systems, i.e. supplies and
installs complete cable systems. In addition, customized products are produced for grid connections,
offshore/onshore wind farms and other energy projects. Under the terms of the contracts and due to the high
degree of customization, these products have no alternative use, since they are produced according to customers’
specications, while 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 Cenergy Holdings’ failure to perform as
promised. Revenue from such projects is recognised over time. The typical length of a contract for turnkey projects
exceeds 12 months. For turnkey projects, the Group accounts for individual products and services separately if they
are distinct – i.e. if a product or service is separately identiable from other items in the contracts and if a customer
can benet from it.
Power & telecom cables
The key products in this category are power cables and overhead conductors for electric power distribution
networks for electric power operators, utilities, industrial applications, renewable energy applications, railway
transportation networks and buildings. The category also includes telecommunication, data transmission cables,
optical bre cables and signalling cables. For sales of such products, revenue is recognised at a point of time, when
the control of the goods sold has been transferred.
C. Disaggregation of revenue
In the following table revenue is disaggregated by primary geographical market, major products and service lines
and timing of revenue recognition.
The table includes a reconciliation with the Group's reportable segments (see Note 6):
Primary geographical markets
Segment Steel Pipes Cables Total
Amounts in EUR thousand 2021 2020 2021 2020 2021 2020
Greece 21,570 18,095 332,088 295,232 353,658 313,327
Other European Union countries 134,361 212,114 290,824 203,376 425,185 415,490
Other European countries 16,360 21,244 105,366 49,580 121,725 70,824
America 16,792 49,040 8,683 861 25,475 49,901
Rest of the world 40,830 8,065 87,330 50,809 128,160 58,874
229,913 308,559 824,291 599,858 1,054,203 908,417
Major products and service lines
Segment Steel Pipes Cables Total
Amounts in EUR thousand 2021 2020 2021 2020 2021 2020
Steel pipes projects 142,234 273,741 - - 142,234 273,741
Hollow structural sections 61,477 23,071 - - 61,477 23,071
Cables projects - - 273,579 242,198 273,579 242,198
Power & telecom cables - - 442,825 308,923 442,825 308,923
Other (wires, raw materials etc.) 26,202 11,746 107,886 48,738 134,088 60,484
229,913 308,559 824,291 599,858 1,054,203 908,417
Timing of revenue recognition:
Segment Steel Pipes Cables Total
Amounts in EUR thousand 2021 2020 2021 2020 2021 2020
Products transferred at a point in time 87,679 34,818 550,712 357,661 638,391 392,478
Products transferred over time 142,234 273,741 273,579 242,198 415,813 515,939
229,913 308,559 824,291 599,858 1,054,203 908,417
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Consolidated revenue for 2021 stands at EUR 1,054 million, a 16% y-o-y increase reecting the growth in volumes
sold in cables segment and the impact of higher metal prices, while lower demand in steel pipes segment restrained
Group’s revenue.
Revenue expected to be recognised in the future related to performance obligations that are unsatised (or partially
unsatised) at the reporting date amounts to EUR 222.2 million. An amount of EUR 196.2 million is expected to be
recognised during 2022, while the remaing EUR 26.0 million is expected to be recognised during the periods from
2023 and onwards based on the time schedules included in the open contracts as of 31 December 2021, which have
original expected durations of more than one year and revenue recognition started during 2021 or prior periods.
D. Contract balances
The following table provides information about contracts assets and contracts liabilities from contracts with
customers:
Amounts in EUR thousand 31 December 2021 31 December 2020
Contract assets 98,217 64,875
Contract liabilities 35,898 40,085
Out of which: Long term Contract liabilities 9,889 9,889
Signicant changes in the contract assets and the contract liabilities balances during the period are as follows:
Amounts in EUR thousand Contract assets Contract liabilities
2021 2020 2021 2020
Opening balance 64,875 118,573 40,085 51,071
Revenue recognised that was included in the contract
liability balance at the beginning of the period - - (19,727) (38,755)
Increases due to cash received, excluding amounts
recognised as revenue during the period - - 15,542 27,808
Transfers from contract assets recognised at the
beginning of the period to receivables (57,268) (109,532) - -
Increases as a result of changes in the measure of progress 90,784 55,895 - -
Foreign exchange differences - (35) (2) (40)
Impairment loss (175) (48) - -
Impairment loss reversal - 21 - -
Closing balance 98,217 64,875 35,898 40,085
Contract assets increased by EUR 33.3 million compared to 31 December 2020. Such increase is attributed to both
cables segment (EUR 12.7 million) due to the growth in project-related activities and steel pipes segment (EUR 20.0
million increase) due to the timing of invoicing of specic ongoing projects for which the production started in the
fourth quarter of the year.
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 liabilities which are
expected to be settled within more than one year are classied as non-current liabilities (EUR 9,889 thousand as of
31 December 2021).
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E. Contract costs
Management expects that fees, commissions & other costs associated with obtaining contracts for energy projects
are recoverable. Cenergy Holdings recorded costs incurred to obtain a contract of EUR 389 thousand as Contract
costs at 31 December 2021 (31 December 2020: EUR 545 thousand).
In addition, costs to fulll a contract are capitalised, if they are directly associated with the contract and are
recoverable. Such contract costs may include materials used for tests necessary for the production, labor costs,
insurance fees and other costs necessary to full performance obligations under a contract once it is obtained, but
before transferring the control of goods or rendering services to the customer. Costs incurred to full a contract at
31 December 2021 was zero (31 December 2020: EUR 167 thousand).
Therefore, at 31 December 2021 Cenergy Holdings has recorded as contract costs an amount of EUR 389 thousand,
out of which an amount of EUR 222 thousand is classied as non-current assets.
Contract costs of obtaining or fullling a contract are expensed to cost of sales when the related revenue is
recognised. In 2021, there was no impairment loss in relation to contract costs.
F. Signicant judgments in revenue recognition
In recognizing revenue the Group makes judgements regarding the timing of satisfaction of performance
obligations, the identication of distinct performance obligations, as well as the transaction price and the amounts
allocated to performance obligations. The most signicant of these estimates are described below:
• Contracts including multiple performance obligations are mainly identied in cables segment for turnkey
projects and for customized products in both segments, as described in Note 7.B and 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 or services. If these goods and services are not sold separately, a cost plus
margin approach is used to estimate the standalone selling price.
• Revenue deriving from the production of customized products for energy projects is recognized overtime. In
such projects, contracts signed by Cenergy Holdings’ subsidiaries may prescribe the promises of both:
- producing customized products based on customers’ specications; and
- transporting them to the customer’s site.
In such cases, transportation is considered as a separate performance obligation, since both criteria prescribed
in IFRS 15.27 are met, since the customer benets from the offered transportation service and the promise to
transport the goods to the customer is separately identiable from the production of these customized
products.
Revenue for orders of standardized products (i.e. hollow structural sections, wires and non-customized power &
telecom cables) is recognized at a specic point in time and transportation is not considered a separate
performance obligation, since the second criterion of IFRS 15.27 is not met.
• 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 recognised 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 signicant reversal of cumulative revenue recognised will not be
needed.
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8. Income and expenses
A. Other income
For the year ended 31 December
Amounts in EUR thousand Note 2021 2020
Government grants / subsidies 477 18
Rental income 529 568
Income from fees, commissions & costs recharged 4,406 2,373
Indemnities and income from claims 168 17
Gain from disposal of property, plant & equipment 8 6
Amortization of grants 28 728 908
Income from valuation of options 23 - 936
Other 824 262
Other Income 7,141 5,088
The line “Government grants” includes an amount of EUR 459 thousand related to reliefs provided by local
legislation as a result of measures taken due to the coronavirus pandemic.
B. Other expenses
For the year ended 31 December
Amounts in EUR thousand Note 2021 2020
Loss from write-offs of Property, plant & equipment 17 (14) (142)
Expenses recharged (4,044) (682)
Indemnities and claims (32) (116)
Other taxes (203) (214)
Other penalties (319) (11)
Provision for antidumping duties 29 (12,842) -
Incremental coronavirus costs (669) (1,837)
Employee benets 11 - (128)
Other (410) (515)
Other expenses (18,534) (3,645)
During 2022, the US Department of Commerce (DoC) published its nal results in the administrative proceedings
conducted by the DoC for the period from April 19, 2019 through April 30, 2020 (“POR”) in connection with an
antidumping (“AD”) 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 percent based on total adverse facts available (AFA) for mandatory
respondent Corinth Pipeworks S.A., Cenergy Holdings’ steel pipes segment. Corinth Pipeworks intends to le 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 nal determination. The one-off charge related to the abovemetnioned case
amounts to EUR 12.8 million (USD 14 million plus interest) and is included as distinct item in ‘Other expenses’ line, as
it relates to sales performed in previous years.
The line “Incremental coronavirus costs” presented in the table above includes all incremental costs incurred due to
the coronavirus outbreak. Such costs are directly attributable to the coronavirus outbreak and are incremental to
costs incurred prior to the outbreak and not expected to recur once the crisis has subsided and operations return to
normal, while they are clearly separable from normal operations. “Incremental coronavirus costs” includes
temporary premium payments to compensate employees for performing their normal duties at increased personal
risk, charges for cleaning and disinfecting facilities more thoroughly and frequently, medical equipment, nursery
staff and other expenses directly associated with the coronavirus outbreak. The net incremental coronavirus costs
upon deduction of reliefs included in ‘Other income’ amounts to EUR 211 thousand for 2021.
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C. Expenses by nature
For the year ended 31 December
Amounts in EUR thousand Note 2021 2020
Cost of inventories recognized as an expense (721,661) (539,401)
Employee benets 12 (73,647) (70,609)
Energy (16,477) (11,605)
Depreciation and amortisation 17, 18, 19 (26,433) (24,979)
Amortization of contract costs (156) (342)
Taxes - duties (1,603) (1,679)
Insurance premiums (9,349) (13,790)
Rental fees (2,464) (2,356)
Transportation (27,618) (31,981)
Promotion & advertising (596) (433)
Third party fees and benets (64,723) (120,995)
Loss from derivatives (18,433) (5,660)
Maintenance expenses (9,089) (9,499)
Travel expenses (3,890) (2,393)
Commissions (4,397) (3,269)
Foreign exchange gains/(losses) (796) (1,192)
Other expenses (3,782) (3,335)
Total cost of sales, selling & distribution
expenses and administrative expenses (985,115) (843,519)
The decrease in “Τhird party fees and benets” is attributed mainly to less project-related serivces offered during
2021 compared to prior year by subcontractors. The decrease is attributed to both segments as in 2020 steel pipes
segment used subcontractors for coating services in the context of energy projects, while the installation services in
the context of turnkey contracts executed by subsidiaries in the cables segment during 2021 were limited compared
to 2020. Specically, during 2020 the installation for the submarine interconnection of Cyclades (second phase), the
submarine interconnection of Skiathos island with Evia, Greece, the Crete – Peloponese interconnection and several
other onshore projects were undertaken by subcontractors in Cables segment. During 2021, installation services
provided in the context of cables projects assigned to subcontractors were more limited in the onshore cables
business, while only one major offshore installation took place, i.e. the nal installation phase for the interconnection
of the Crete – Peloponese interconnection.
The uctuation in transportation costs relate to the geographical mix of sales and volume of deliveries in steel pipes
segment that took place in 2021 compared to 2020. As mentioned in note 7.F, when certain criteria are met,
transportation is considered as a separate performance obligation and the relevant costs are recognized when such
performance obligations are fullled.
Cenergy Holdings signicantly invests in research and development in order to continuously bring value-added
products and services to the market and improve production processes, as well as to promote materials recycling
and the proper use of natural resources. The aggregate amount of research and development expenditure
recognised as an expense for 2021 amounts to EUR 4.0 million (2020: EUR 3.8 million).
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9. Net nance costs
For the year ended 31 December
Amounts in EUR thousand 2021 2020
Finance income
Interest income 21 31
Dividends 36 -
Foreign exchange gains 207 325
264 356
Finance costs
Interest expense and related costs (28,106) (31,333)
Foreign exchange losses (1,143) (662)
(29,249) (31,996)
Net nance costs (28,985) (31,640)
Interest expenses and related costs were lower by 10% compared to 2020 as a result of lower interest rates agreed
with nancial institutions for new nancing facilities and lower average debt levels compared to prior year.
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 prot attributable to ordinary shareholders and weighted-average
numbers of ordinary shares outstanding
A. Prot attributable to ordinary shareholders
For the year ended 31 December
Amounts in EUR thousand 2021 2020
Prot attributable to the owners of the Company 22,077 24,923
B. Weighted-average number of ordinary shares outstanding
The number of ordinary shares in issue for 2021 and 2020 was 190,162,681 shares. No shares were issued during
2021.
C. Earnings per share
The basic and diluted earnings per share are as follows:
For the year ended 31 December
In EUR per share 2021 2020
Basic and diluted 0.11610 0.13106
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11. Employee benets
At 31 December
Amounts in EUR thousand Note 2021 2020*
Net dened benet liability 2,922 2,558
Liability for social security contributions 27 2,366 2,561
Total employee benet liabilities 5,288 5,119
Non-current 2,922 2,558
Current 2,366 2,561
* The comparative information is restated due to retroactive application of the IFRIC Agenda Decision ‘Attributing Benet to
Periods of Service’. See note 5.22, for details regarding restatement of prior years’ gures.
For details on the related employee benet expenses, see Note 12.
A. Post-employment plans
The following post-employment plans exist:
Dened contribution plan
All the employees of the Company’s subsidiaries are insured for their main pension by the respective social
insurance organizations as required by the local legislation. Once the contributions have been paid, the Company’s
subsidiaries 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 benet expenses.
Dened benet plan
The employees of the Company’s subsidiaries 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 denition of dened benet plans and charges the accumulated benets through prot or
loss in each period with a corresponding increase of the retirement liability. Benets paid to pensioners during each
period are charged against this liability. These plans are unfunded.
Effect of change in accounting policy
The IFRS Interpretations Committee (IFRIC) issued in May 2021 the nal Decision on the agenda entitled
"Attributing Benets to Periods of Service in accordance with International Accounting Standard (IAS) 19", which
includes guidance on how to distribute benets in periods of service on a specic program of dened benets.
Based on the above Decision, the way in which the basic principles of IAS 19 were generally applied in Greece in the
past changed and consequently entities preparing nancial statements in accordance with IFRS are required to
amend their accounting policies accordingly.
For further details, see note 5.22. Comparative information included in the tables below have been restated to
reect the change in accounting policy.
125
B. Movement in net dened benet liability
The following table shows the reconciliation from the opening balance to the closing balance for net dened benet
liability and its components.
For the year ended 31 December
Amounts in EUR thousand 2021 2020*
Balance at 1 January 2,558 5,677
Change in accounting policy - (3,311)
Restated balance at 1 January 2,558 2,366
Included in prot or loss
Current service cost 341 301
Past service cost 52 14
Settlement/curtailment/termination loss 1,730 834
Interest cost 7 17
2,130 1,166
Included in OCI
Remeasurement loss/(gain)
Actuarial loss/(gain) arising from:
- Demographic assumptions 18 -
- Financial assumptions 238 80
- Experience adjustments 23 14
279 94
Other movements
Benets paid (2,045) (1,068)
Balance at 31 December 2,922 2,558
* The comparative information is restated due to retroactive application of the IFRIC Agenda Decision ‘Attributing Benet to
Periods of Service’. See note 5.22, for details regarding restatement of prior years’ gures.
During the nancial year 2021, Cenergy Holdings’ companies provided EUR 2,045 thousand in benet payments to
employees who left the Group during the year. An additional cost that arose due to these payments
(Settlement/Curtailment/Termination loss of EUR 1,730 thousand) was recognized. More specically, in the cases of
dismissal, voluntary withdrawals with benet payment and retirement, the additional cost is the difference between
the benet paid and the amount recorded in the dened benet liability for the respective employees.
The increase in benets paid and in Settlement/curtailment/termination loss is attributed to the cost optimization
initiatives initiated in steel pipes segment during the fourth quarter of 2020 and concluded during the rst quarter
of 2021.
C. Dened benet obligation
a) Actuarial assumptions
The following were the weighted average principal actuarial assumptions at the reporting date:
2021 2020
Discount rate 0.21% 0.30%
Ination 2.10% 1.25%
Future salary growth 2.95% 1.86%
Plan duration (expressed in years) 6.26 7.65
Assumptions regarding future mortality have been based on published statistics and mortality tables.
126
b) Expected maturity analysis
The analysis of Group’s expected undiscounted benets cash ows in the future years out of the dened benet
plan liability is as follows:
Amounts in EUR thousand 2021 2020
Up to 1 year 360 293
Between 1 and 2 years 155 111
Between 2 and 5 years 626 512
Over 5 years 1,823 1,702
Total 2,964 2,618
c) Sensitivity analysis
The sensitivity analysis for each signicant actuarial assumption, which was reasonably possible, at the end of the
reporting period and shows how the dened benet obligation would have been affected by the following changes:
Amounts in EUR thousand Increase Decrease
Discount rate (0.5% movement) (90) 95
Future salary growth (0.5% movement) 88 (85)
If zero withdrawal rates were used when determining the dened benet liability as of 31 December 2021, the
liability would have been increased by EUR 103 thousand.
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 as changes in some of the assumptions may be correlated. When calculating the
sensitivity of the dened benet obligation to signicant actuarial assumptions the same method (present value of
the dened benet obligation calculated with the projected unit credit method at the end of the reporting period)
has been applied as when calculating the employee benet liability recognized on the statement of nancial
position. The methods and the formula of the assumptions used for the dened analysis have not changed
compared to the previous year.
12. Employee benet expenses
For the year ended 31 December
Amounts in EUR thousand 2021 2020
Employee remuneration & expenses 58,095 56,589
Social security expenses 9,967 11,057
Dened benet plan 2,130 1,166
Other 5,538 3,977
Total 75,730 72,789
127
Employee benets were allocated as follows:
For the year ended 31 December
Amounts in EUR thousand 2021 2020
Cost of goods sold 55,017 53,065
Distribution expenses 9,011 7,874
Administrative expenses 9,619 9,670
Other expenses - 128
Incremental coronavirus costs - 154
Capitalised in assets under construction 2,083 1,899
Total 75,730 72,789
The number of employees, as well as their prole and gender, employed by the Group is presented in the following tables:
2021 2020
Number of employees 2,285 2,238
18 - 30 30-50 51+ Total
Male 298 1,202 518 2,018
Female 52 154 61 267
Total 350 1,356 579 2,285
Oce employees
& professionals Workers Management Total
Number of employees 641 1,526 118 2,285
13. Income tax
A. Amounts recognised in prot or loss
For the year ended 31 December
Amounts in EUR thousand 2021 2020
Current tax expense (2,998) (2,494)
Origination and reversal of temporary differences (3,879) (7,004)
Change in tax rate or composition of new tax 2,790 -
Recognition of previously unrecognised tax losses,
tax credit or temporary differences of a prior period 158 42
Derecognition of previously recognised tax losses (4,505) (1,226)
Deferred tax expense (5,436) (8,188)
Income Tax (8,434) (10,683)
128
B. Reconciliation of effective tax rate
For the year ended 31 December
Amounts in EUR thousand 2021 2020
Prot before tax 30,513 35,604
Tax using the domestic tax rate in Greece
(2021: 22%, 2020: 24%) (6,713) (8,545)
Non-deductible expenses for tax purposes (1,390) (1,026)
Tax-exempt income 941 738
Recognition of previously unrecognised tax losses,
tax credit or temporary differences of a prior period 158 42
Effect of tax rates in foreign jurisdictions 77 134
Current-year losses for which no deferred tax asset is recognised (501) (377)
Tax-exempt reserves recognition 660 -
Incremental R&D tax incentives 640 297
Change in tax rate or composition of new tax 2,790 -
Derecognition of previously recognised tax losses (4,505) (1,226)
Adjustment for prior year income tax (590) (720)
Income tax expense reported in the statement of prot or loss (8,434) (10,683)
Effective tax rate (27.6%) (30.0%)
According to the Greek law 4799/2021, enacted in May 2021, the corporate income tax rate for legal entities in
Greece for the scal year 2021 and onwards is set at 22% (2020: 24%). The corporate income tax rate of legal
entities in Romania is set at 16% and in USA is set at 21%.
The effective income tax rate of the Group was inuenced by the recalculation of deferred taxation due to the
change in tax rate in Greece and the fact that certain loss-making subsidiaries did not recognize deferred tax on
current year’s tax losses, while the current assessment regarding the recoverability of available tax losses to offset
future taxable income in steel pipes segment led to the derecognition of deferred tax asset on previously
recognised tax losses.
Based on applicable Greek tax legislation, research and development (R&D) expenditure, including the tax
depreciation costs of equipment and instruments used in R&D activities, may be deducted from gross income of a
company with increased deduction rates. Specically, R&D expenditure in Greece may be deducted from gross
income when incurred at a rate of 200% from 1 September 2020 and onwards instead of 130%, rate applicable for
expenditure incurred up to 31 August 2020. The subsidiaries of Cenergy Holdings in Greece make use of the above
tax provisions and the related tax benet is presented in the line “Incremental R&D tax incentives” of the table
above.
129
C. Movement in deferred tax balances
The movement in deferred tax assets and liabilities during the year is as follows:
2021 Change in tax rate Balance at 31 December
Effect
Net Recognised Recognised Foreign recognised Effect Change in Deferred Deferred
balance at in prot in OCI exchange in prot recognised accounting tax tax
Amounts in EUR thousand 1 January or loss differences or loss in OCI policy Net assets liabilities
Property, plant & equipment (33,391) (3,792) - 2 2,954 - - (34,227) 4 (34,230)
Right of use assets 4 1 - - (1) - - 4 9 (5)
Intangible assets (1,934) (162) - - 174 - - (1,922) 229 (2,150)
Investment property 71 - - - - - - 71 71 -
Inventories 73 12 - - (6) - - 79 79 -
Contracts with customers (11,423) (2,523) - - 881 - - (13,064) - (13,064)
Derivatives 466 48 12 - 5 (70) - 462 462 -
Loans and borrowings (1,968) 505 - - 152 - - (1,311) - (1,311)
Employee benets 610 64 (148) - (49) 191 - 668 668 -
Provisions 313 2,777 - (4) (30) - - 3,056 3,056 -
Other items (375) (262) - (12) 13 - - (637) 298 (935)
Carry forward tax loss 5,265 (4,599) - 2 (263) - - 405 405 -
Thin-cap interest 12,603 (295) - (2) (1,040) - - 11,266 11,266 -
Tax assets / (liabilities)
before set-off (29,684) (8,225) (135) (14) 2,790 121 - (35,148) 16,547 (51,695)
Set-off tax (13,314) 13,314
Net tax assets / (liabilities) (29,684) (8,225) (135) (14) 2,790 121 - (35,148) 3,233 (38,382)
The movement in deferred tax assets and liabilities during the prior year is as follows:
2020 Change in tax rate Balance at 31 December
Effect
Net Recognised Recognised Foreign recognised Effect Change in Deferred Deferred
balance at in prot in OCI exchange in prot recognised accounting tax tax
Amounts in EUR thousand 1 January or loss differences or loss in OCI policy Net assets liabilities
Property, plant & equipment (30,268) (3,127) - 4 - - - (33,391) 2 (33,392)
Right of use assets (6) 10 - - - - - 4 9 (5)
Intangible assets (1,799) (134) - - - - - (1,934) 410 (2,343)
Investment property 71 - - - - - - 71 71 -
Inventories 96 (23) - - - - - 73 73 -
Contracts with customers (6,271) (5,152) - - - - - (11,423) - (11,423)
Derivatives 352 (98) 212 - - - - 466 534 (68)
Loans and borrowings (2,448) 480 - - - - - (1,968) - (1,968)
Employee benets 1,359 24 22 - - - (795) 610 610 -
Provisions 632 (320) - - - - - 313 313 -
Other items (720) 460 - (115) - - - (375) 307 (682)
Carry forward tax loss 7,689 (2,424) - - - - - 5,265 5,265 -
Thin-cap interest 10,493 2,114 - (4) - - - 12,603 12,603 -
Tax assets / (liabilities)
before set-off (20,821) (8,188) 234 (114) - - (795) (29,684) 20,198 (49,882)
Set-off tax (17,523) 17,523
Net tax assets / (liabilities) (20,821) (8,188) 234 (114) - - (795) (29,684) 2,675 (32,359)
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On 31 December 2021, the accumulated tax losses carried forward available for future use amounted to EUR 38.4
million. Cenergy Holdings’ companies have recognised a deferred tax asset on tax losses of EUR 1.8 million because
management considered it probable that future taxable prots would be available against which such tax losses can
be used during the next ve years. Deferred tax assets on tax losses relate mainly to steel pipes segment.
Based on management’s estimates regarding the future taxable prots and the utilization period of tax losses
according to applicable tax legislation deferred tax assets have not been recognised in respect of tax losses carried
forward for an amount of EUR 36.6 million with expiration date during the period 2022 to 2026. Such tax losses for
which deferred tax assets have not been recognised mainly concern steel pipes segment and the parent company.
The recent history of tax losses in steel pipes segment led management to the derecognition of previously
recognized tax assets on tax losses.
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’s tax prots, if it is equal or less than 30% of EBITDA and any
excess can be settled with future tax prots without time limitations. Similar thin capitalization rules apply to the tax
deductibility of interest in Romania. Specically, net interest cost higher than the deductible limit of EUR 200
thousand is deductible only up to 10% of EBITDA. The excess net interest costs are non-deductible in the relevant
tax period, but may be carried forward to an unlimited number of tax years. During 2021, deferred tax asset
recognised due to thin capitalization rules decreased by EUR 0.3 million, as part of the available deductible interest
was used during the year.
14. Inventories
At 31 December
Amounts in EUR thousand 2021 2020
Finished goods and merchandise 78,227 52,443
Semi-nished goods 53,366 33,732
Raw and auxiliary materials 137,875 113,612
Consumables 2,823 2,517
Packaging materials 2,622 1,947
Spare parts 9,112 8,940
Total 284,025 213,192
In 2021, the amount of inventories recognised as expense during the period and included in “Cost of sales” was EUR
721.7 million (2020: EUR 539.4 million). This increase is mainly attributed to the increased raw materials prices
noticed throughout 2021 and especially during the last quarter of the year, which led to signicant higher value of
inventory held at year’s end.
Inventories have been reduced by EUR 333 thousand in 2021 because of the write-down to net realizable value
(2020: EUR 732 thousand).
There are no inventories pledged as security for borrowings received by Cenergy Holdings’ companies.
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15. Trade and other receivables
At 31 December
Amounts in EUR thousand Note 2021 2020
Current assets
Trade receivables 96,262 75,941
Less: Impairment losses 30.C.1 (25,534) (23,824)
70,728 52,118
Other down payments 624 725
Cheques and notes receivables 390 50
Receivables from related entities 36 31,445 28,942
VAT & other tax receivables 14,476 12,064
Other receivables 4,716 6,580
Other debtors 10,158 12,960
Less: Impairment losses 30.C.1 (497) (567)
61,312 60,754
Total 132,040 112,872
Non-current assets
Non-current receivables from related parties 208 208
Other non-current receivables 968 1,094
Total 1,177 1,303
A. Transfer of trade receivables
The carrying amount of receivables includes amounts that are subject to factoring arrangements. Cenergy Holdings
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 Consolidated Statement of Financial Position, because
substantially all the risk and rewards are retained within the Group - primarily credit risk. The amount received on
transfer by the factor is recognised as a secured bank loan.
The following information shows the carrying amount of trade receivables at the year-end that have been
transferred but have not been derecognised and the associated liabilities.
At 31 December
Amounts in EUR thousand 2021 2020
Carrying amount of trade receivables transferred 8,812 2,495
Carrying amount of associated liabilities 7,931 2,245
The fair value of the trade receivables transferred approximate the carrying amount.
As of 31 December 2021 and 2020, Cenergy Holdings had not used the total amount of credit line available by the
factoring companies.
B. Credit and market risks and impairment losses on trade receivables
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 22.0 million
at 31 December 2021), plus legal interest.
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Following a series of court proceedings, the Dubai Court of Cassation issued its nal judgment, during 2017, and
ruled to reject any counterclaim of the former customer and to conrm 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 2021.
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 Cenergy Holdings’ exposure to credit and market risks and impairment losses for trade and other
receivables is included in Note 29.C.1.
16. Cash and cash equivalents
At 31 December
Amounts in EUR thousand 2021 2020
Cash in hand and cash in bank 6 98
Short-term bank deposits 129,600 80,937
Total 129,606 81,035
Short term deposits have duration of less than 90 days and are available for use.
17. Property, plant and equipment
A. Reconciliation of carrying amount
Land, plants & Furniture and Assets under
Amounts in EUR thousand other buildings Machinery other equipment construction Total
Cost
Balance at 1 January 2020 171,954 517,396 21,594 28,659 739,603
Effect of movement in exchange rates (383) (845) (68) (26) (1,323)
Additions 1,402 3,491 3,628 52,663 61,184
Disposals (16) (46) (356) (121) (538)
Write-offs (48) - (1) (94) (142)
Other reclassications 4,313 19,716 767 (29,528) (4,732)
Balance at 31 December 2020 177,222 539,713 25,564 51,553 794,052
Balance at 1 January 2021 177,222 539,713 25,564 51,553 794,052
Effect of movement in exchange rates (321) (757) (47) (22) (1,147)
Additions 596 7,475 2,298 30,762 41,130
Disposals (625) (352) (187) (18) (1,183)
Write-offs - (340) (31) - (371)
Other reclassications 15,463 35,296 587 (51,444) (99)
Balance at 31 December 2021 192,335 581,034 28,184 30,831 832,383
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Land, plants & Furniture and Assets under
Amounts in EUR thousand other buildings Machinery other equipment construction Total
Accumulated depreciation
and impairment losses
Balance at 1 January 2020 (66,124) (235,193) (16,220) - (317,538)
Effect of movement in exchange rates 262 544 50 - 856
Depreciation (3,019) (15,142) (1,565) - (19,726)
Disposals 58 18 343 - 418
Write-offs - - 1 - 1
Other reclassications 3 (5) (124) - (126)
Balance at 31 December 2020 (68,821) (249,778) (17,516) - (336,115)
Balance at 1 January 2021 (68,821) (249,778) (17,516) - (336,115)
Effect of movement in exchange rates 224 487 37 - 748
Depreciation (3,238) (16,077) (1,808) - (21,122)
Disposals 622 298 185 - 1,105
Write-offs - 340 16 - 356
Other reclassications - (872) (25) - (898)
Balance at 31 December 2021 (71,213) (265,602) (19,111) - (355,925)
Carrying amounts
At 1 January 2020 105,830 282,204 5,374 28,659 422,066
At 31 December 2020 108,401 289,935 8,048 51,553 457,937
At 31 December 2021 121,122 315,432 9,073 30,831 476,458
The net amount in other reclassications concerns intangible assets under construction reclassied during the year
to intangible assets and reclassications from Right of Use assets.
B. Security
Property, plant & equipment with a carrying amount of EUR 49 million are mortgaged as security for borrowings
received by Cenergy Holdings (see Note 26).
C. Property, plant and equipment under construction
The most important items in property, plant and equipment under construction as of 31 December 2021 concern
mainly ongoing investments in the Corinth plant of cables segment and certain productivity and capacity
improvement investments in Thisvi’s plant of steel pipes segment. The majority of such capital expenditure projects
are expected to be completed during 2022.
The amount of EUR 51.4 million reclassied from assets under construction in 2021 mostly relates to the conclusion
of the expansion of inter-array cables capacity in cables segment’s Corinth plant.
Borrowing costs of EUR 522 thousand related to the acquisition of new machinery were capitalised, calculated using
a capitalisation rate of 4.21%.
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18. Leases
A. Amounts recognised in the Consolidated Statement of Financial Position
The Consolidated Statement of Financial Position shows the following amounts relating to leases:
At 31 December
Amounts in EUR thousand 2021 2020
Right-of-use assets
Buildings 408 442
Machinery 598 2,229
Transportation means 2,347 2,927
Other equipment 116 -
Total 3,469 5,598
Lease liabilities
Current lease liabilities 26 1,216 1,752
Non-current lease liabilities 26 2,080 3,681
Total 3,296 5,433
B. Reconciliation of carrying amount of Right-of-use assets
Amounts in EUR thousand 2021 2020
Balance at 1 January 5,598 5,881
Effect of movement in exchange rates 6 (95)
Additions 909 1,628
Terminations (176) (497)
Modications - (20)
Depreciation (1,490) (1,453)
Other reclassications (1,377) 155
Balance at 31 December 3,469 5,598
C. Amounts recognised in the Consolidated Statement of Prot or Loss
The Consolidated Statement of Prot or Loss shows the following amounts relating to leases:
Amounts in EUR thousand 2021 2020
Depreciation charge of right-of-use assets
Buildings 68 51
Machinery 252 159
Transportation means 1,107 1,243
Other equipment 63 -
Total 1,490 1,453
Interest expense (included in nance cost) 207 212
Variable rental fees 123 105
Low value rental fees 190 137
Short term rental fees 1,680 1,718
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19. Intangible assets
A. Reconciliation of carrying amount
Development Trademarks
Amounts in EUR thousand costs and licenses Software Other Total
Cost
Balance at 1 January 2020 1,552 25,418 13,010 304 40,284
Effect of movement in exchange rates - - (92) - (92)
Additions 23 1,118 2,542 - 3,683
Other reclassications - 3,653 1,053 (2) 4,704
Balance at 31 December 2020 1,575 30,189 16,512 303 48,578
Balance at 1 January 2021 1,575 30,189 16,512 303 48,578
Effect of movement in exchange rates - - (83) - (83)
Additions - 1,446 1,962 - 3,408
Other reclassications (1,200) 1,610 1,697 - 2,107
Balance at 31 December 2021 374 33,245 20,087 303 54,010
Development Trademarks
Amounts in EUR thousand costs and licenses Software Other Total
Accumulated amortisation and
impairment losses
Balance at 1 January 2020 (663) (5,922) (8,713) (213) (15,511)
Effect of movement in exchange rates - - 56 - 56
Amortisation (239) (1,692) (1,857) (13) (3,801)
Other reclassications - (2) - 2 -
Balance at 31 December 2020 (902) (7,616) (10,514) (224) (19,256)
Balance at 1 January 2021 (902) (7,616) (10,514) (224) (19,256)
Effect of movement in exchange rates - - 55 - 55
Amortisation (80) (1,962) (1,766) (13) (3,821)
Other reclassications 608 - (341) - 267
Balance at 31 December 2021 (374) (9,578) (12,566) (237) (22,755)
Carrying amounts
At 1 January 2020 888 19,497 4,296 92 24,773
At 31 December 2020 673 22,574 5,997 79 29,323
At 31 December 2021 - 23,667 7,521 66 31,254
The additions for the current period mainly concerned externally purchased know-how regarding production
methods and associated software programmes. The useful lives for the know-how and associated software
programmes is set to 10 years. Furthermore, several development projects leading to licenses have been concluded.
B. Amortisation
The amortization of trademarks & licenses with nite useful lives, software programs and other intangible assets
is allocated to the cost of inventory and is included in “cost of sales” as inventory is sold, as trademarks &
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.
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C. Intangible assets with indenite useful lives
All intangible assets have nite useful life, except for the following assets, included in trademarks and licenses:
a. Trade Name “Fulgor” (carrying amount of EUR 1.4 million at 31 December 2021)
It relates to the sector of medium voltage submarine cables and terrestrial high voltage cables that Fulgor was
operating prior to its acquisition by Hellenic Cables in 2011 and which has revealed signicant economic benets.
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 indenite.
b. License of Port use in Soussaki, Corinth (carrying amount of EUR 8.3 million at 31 December 2021)
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 of submarine cables of medium and high voltage. Since the
acquisition of the subsidiary, signicant investments for the upgrade and expansion of production capacity in
producing high-voltage submarine cables took place. Since 2014, the production started as planned. The useful life
of the asset is considered indenite, since the use of these port facilities is for an indenite period of time, in the
context of the signicant development of the sector.
D. Impairment test
As these intangible assets do not generate independent cash inows, 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. In order to evaluate the value in use, cash ow projections based on estimates by
management covering a ve-year period (2022 – 2026) 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 in a project-based business. Therefore, assumptions related to revenue and
protability 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 ve-year period are:
• Progressively high capacity utilization of Corinth plant owned by Fulgor, as in 2020 & 2021, based on contracts
already awarded & expected awards based on tendering activity. Given the continued growth, the existing
backlog, the growth of renewables business around the world, which is a signicant driver in the attractive
outlook for the offshore power generation market, the continuously high level of activity is expected to be
retained throughout the period 2022-2026.
• Capital expenditure of approx. EUR 102 million in the following 5 years, in order to cover estimated production
and capacity needs. Capital expenditure reects investments for both maintenance purposes and expectations
of organic growth. For the terminal period, the investments are set equal to depreciation.
• Compound annual growth rate of revenue from offshore business for the ve-year period at ca. 3.8% attributable
to assignment of new projects mainly in Greece, North Europe and the USA.
• Protability per offshore project in terms of EBITDA at ca. 15%-25% of revenue. Estimated protability per
project varies mainly due to different type of cable and technical specications, geographic region and project’s
timeframe.
• Compound annual growth rate of xed operating expenses at ca. 2.1% for the ve-year period.
Cash ows after the rst ve years were calculated using an estimated long term growth rate of 1.55%, which mainly
reects management's 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 ows was 7.71%, based on the following assumptions:
• Risk free rate was determined to zero.
• The country risk for operating in Greece was determined to 0.81%.
• The market risk premium was determined to 4.87%, i.e. stable compared to prior year’s impairment test.
137
Despite the fact that the commodity prices for copper and aluminium are part of the assumptions for the
impairment test performed, due to the hedging activities undertaken and the customized nature of the products
sold by Fulgor, the value of the business unit is not signicantly affected by uctuations in commodity prices.
Neutral result from metal price uctuations is assumed in the context of the impairment test.
The results of this test indicated that the recoverable amount as of 31 December 2021 exceeds the carrying amount
of the CGU amounting to EUR 219 million by EUR 524 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 headroom. The result of the sensitivity analysis indicated that the
recoverable amount still 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)
Discount rate 7.71% +12.0 ppc
Terminal growth 1.55% -61.8 ppc
20. Investment property
A. Reconciliation of carrying amount
Amounts in EUR thousand 2021 2020
Balance at 1 January 764 764
Impairment - -
Balance at 31 December 764 764
Gross carrying amount 1,348 1,348
Accumulated depreciation and impairment losses (584) (584)
Carrying amount at 31 December 764 764
Investment property at 31 December 2021 consists of several land properties in Greece. None of these is currently
leased. These properties are not currently used by Cenergy Holdings and are held either for capital appreciation or
to be leased in the foreseeable future.
B. Measurement of fair value – Impairment loss and subsequent reversal
Based on management’s assessment, during the current period, there were no indications for impairment or reversal
of impairment for any property. The fair value of investment property amounts to EUR 804 thousand on 31
December 2021 in line with 2020, while the accumulated impairment loss amounts to EUR 584 thousand. The inputs
used for fair value measurement of investment property have been categorised Level 2, based on the inputs to the
valuation techniques used.
C. Restrictions - Contractual obligations
There are neither restrictions nor contractual obligations.
138
21. Equity-accounted investees
A. Reconciliation of carrying amount
Amounts in EUR thousand 2021 2020
Balance at 1 January 34,539 34,583
Change in accounting policy - 168
Restated balance at 1 January 34,539 34,751
Share in prot after taxes 1,855 849
Share in other comprehensive income (94) (138)
Additions - 3,285
Dividends received (656) (915)
Foreign exchange differences 786 (3,292)
Balance at 31 December 36,431 34,539
During January 2020, the subsidiary CPW America acquired an interest of 20% of Bellville Tube Company based in
Texas, USA in exchange of USD 3.3 million. Bellville Tube Company manufactures steel tubular products for the local
market. Due to changes incurred during the prior period in the shareholding structure of the associate the interest
held at 31 December 2021 and 2020 was 19.4%.
No additions or disposals of share in equity-accounted investees took place during 2021.
B. Financial information per associate
The following tables present nancial information per associate. The disclosed nancial information reects
amounts in the nancial statements of the relevant associates.
2021
Company Prot / (Loss) Total
Principal place from continuing comprehensive Ownership
Amounts in EUR thousand of business Revenue operations income interest
STEELMET S.A. Greece 39,478 825 713 29.56%
DIA.VIPE.THIV. S.A. Greece 2,447 127 131 26.19%
AO TMK-CPW Russia 70,009 1,910 1,910 49.00%
INTERNATIONAL TRADE S.A. Belgium 1,438,330 5,816 5,516 20.50%
BELLVILLE TUBE COMPANY USA 20,238 (2,837) (2,837) 19.40%
Company Current Non-current Current Non-current
Amounts in EUR thousand Segment assets assets liabilities liabilities
STEELMET S.A. Other activities 7,847 3,561 7,937 1,710
DIA.VIPE.THIV. S.A. Steel Pipes 1,968 12,070 193 8,191
AO TMK-CPW Steel Pipes 64,836 5,004 46,926 23
INTERNATIONAL TRADE S.A. Other activities 187,131 7,681 145,803 6,461
BELLVILLE TUBE COMPANY Steel Pipes 422 13,744 3,988 3,418
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2020
Company Prot / (Loss) Total
Principal place from continuing comprehensive Ownership
Amounts in EUR thousand of business Revenue operations income interest
STEELMET S.A. Greece 32,052 786 755 29.56%
DIA.VIPE.THIV. S.A. Greece 2,487 109 109 26.19%
AO TMK-CPW Russia 41,141 1,775 1,775 49.00%
INTERNATIONAL TRADE S.A. Belgium 990,559 3,192 2,562 20.50%
BELLVILLE TUBE COMPANY USA 14,548 (4,826) (4,826) 19.40%
Company Current Non-current Current Non-current
Amounts in EUR thousand Segment assets assets liabilities liabilities
STEELMET S.A. Other activities 6,786 3,049 6,515 1,652
DIA.VIPE.THIV. S.A. Steel Pipes 1,882 12,235 352 8,241
AO TMK-CPW Steel Pipes 25,397 4,734 9,794 -
INTERNATIONAL TRADE S.A. Other activities 141,997 8,559 105,841 7,082
BELLVILLE TUBE COMPANY Steel Pipes 1,975 14,200 3,773 3,428
The following table analyses the interest in AO TMK-CPW and other signicant associates:
At 31 December
Amounts in EUR thousand 2021 2020
Net assets of AO TMK-CPW at 1 January (100%) 20,336 26,011
Total comprehensive income of AO TMK-CPW (100%) 1,910 1,775
Foreign exchange differences (100%) 1,493 (6,120)
Dividends (100%) (849) (1,330)
Net assets of AO TMK-CPW at 31 December (100%) 22,891 20,336
Carrying amount of interest in AO TMK-CPW at 31 December (49%) 11,216 9,965
Carrying amount of interest in International Trade 21,481 20,473
Carrying amount of interest in Bellville Tube Company 1,732 2,162
Carrying amount of interest in other individually immaterial associates 2,002 1,940
Total 36,431 34,539
There are no restrictions on the ability of joint ventures or associates to transfer funds to the Company in the form
of cash dividends, or to repay loans or advances made by the Company.
There are no unrecognised share of losses of an associate, both for the reporting period and cumulatively.
22. Other investments
Amounts in EUR thousand 2021 2020
Balance at 1 January 5,657 5,015
Additions - 26
Change in fair value 156 640
Disposals - (24)
Balance at 31 December 5,812 5,657
Other investments are equity investments at FVOCI and concern unlisted shares (equity instruments) of Greek entities.
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23. Derivatives
The following table sets out the carrying amount of derivatives:
At 31 December
Amounts in EUR thousand 2021 2020
Non-Current assets
Options 944 871
Total 944 871
Current assets
Forward foreign exchange contracts 536 584
Total 536 584
Current liabilities
Forward foreign exchange contracts 1,397 143
Future contracts 1,199 2,433
Total 2,596 2,576
Hedge accounting
Cenergy Holdings’ companies hold derivative nancial instruments for cash ow and fair value hedges.
The abovementioned derivative nancial instruments cover risks from:
• Changes in the prices of metals;
• Fluctuations of foreign exchange rates.
The maturity and the nominal value of derivatives held by Cenergy Holdings’ companies match the maturity and
nominal value of the underlying assets / liabilities (hedged items).
Derivatives held by Cenergy Holdings’ 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 Cenergy Holdings’ companies in the cables segment (i.e. mainly copper
and aluminium). Such hedges are designated as cash ow hedges.
• Foreign exchange forwards to hedge the risk from the change in exchange rate of US Dollar and British Pound
(i.e. currencies to which Cenergy Holdings’ companies are mainly exposed). Such hedges are either designated
as fair value or cash ow hedges depending on the item hedged. Foreign exchange forwards, when used for
hedging foreign exchange risk on outstanding receivables and suppliers denominated in foreign currency these
instruments, are designated under fair value hedging. Foreign exchange forwards, when used for hedging
foreign exchange risk on the forecasted sales of goods or purchase of materials, are designated as cash ow
hedges.
Derivatives are recognised when Cenergy Holdings’ 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 ow
hedges).
Fair value hedges
Derivatives are designated as fair value hedges when the exposure to changes in the fair value of a recognized
nancial asset or liability is hedged. Changes in the fair value of derivatives that are designated and qualied as fair
value hedges are recorded in the Consolidated Statement of Prot or Loss, along with any changes in the fair value
of the hedged asset or liability that are attributable to the hedged risk.
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Cash ow hedges
The effective portion of change in fair value of derivatives designated as a cash ow hedge is recognised in other
comprehensive income (OCI), under “Hedging Reserve”. The gain or loss on the non-effective proportion is
recorded to the prot or loss.
The amounts recorded in “Hedging Reserve” are reclassied to the Consolidated Statement of Prot or Loss of the
period when the event hedged occurs, i.e. at the date when the forecasted transaction which constitutes the object
of the hedge took place or the hedged item affects prot and loss (for example, in case of a forward sale of
aluminium, the reserve is recognised in Consolidated Statement of Prot or Loss after the net cash settlement of
future contract and at the date the aluminium sold).
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 “Hedging reserve” remain as a reserve and are
reclassied to the Consolidated Statement of Prot or Loss when the hedged asset affects prots 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 “Hedging reserve” are reclassied to the consolidated statement of prot or loss.
The change in fair value recognized in equity under cash ow hedging as of 31 December 2020 will be recycled to
the consolidated statement of prot or loss during 2021, as all the hedged events will occur (the forecasted
transactions will take place or the hedged items will affect prot or loss) in 2021.
Cenergy Holdings’ companies examine the effectiveness of the cash ow 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 ow hedge by applying the dollar offset method on a
cumulative basis is examined.
Cenergy Holdings’ companies’ results from the hedging activities recorded in the statement of prot or loss are
presented for metal future contracts and foreign exchange contracts in “Revenue” and “Cost of sales”. The amounts
recognized in the consolidated statement of prot or loss are the following:
For the year ended 31 December
Amounts in EUR thousand 2021 2020
Gain / (loss) on future contracts (14,166) (3,308)
Gain / (loss) on foreign exchange forward contracts (189) 424
Total (14,355) (2,884)
Prot or loss related to derivatives used for cash ow hedging and recognized in other comprehensive income
(Hedging reserve) at 31 December 2021 will be recognized in prot or loss during the next nancial year.
Options related to the associate Bellville Tube Company
Based on the purchase agreement of Bellville Tube Company’s shares signed in 2020, the shareholders of Bellville
Tube Company granted CPW America with a call option to purchase the remaining outstanding capital stock of
Bellville Tube Company. The calculation of the purchase price prescribed in the call option is based on a
predetermined formula. The exercise period for the call option starts in 2022 and expires in 2025. Upon the exercise
of the call option CPW America will own 100% of outstanding capital stock of Bellville Tube Company.
In addition, the purchase agreement prescribes that if CPW America does not exercise the call option described
above, CPW America shall have the option (“put option”), but not the obligation, during the period 2022-2025 to
require Bellville Tube Company to redeem all, but not less than all, of the shares of Bellville Tube Company then held
by CPW America. The aggregate purchase price for the redeemed shares if the put option is exercised will be USD
3.3 million, i.e. equal to the amount initially disbursed.
The options described above were recognized on the statement of nancial position. Based on the inputs used to
determine the fair value of the put and the call options, such options are categorized as Level 3. The options are
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valuated in USD and based on year end exchange rates, the valuation of such options was EUR 944 thousand. The
valuation of the call & put options was based on a widely acceptable pricing model methodology considering the
complexity of the option plan.
The basic inputs that have been used in the valuation model are the following:
• Fair value of the share held in the associate, which in turn is dependent on expected turnover, EBITDA margins
and future working capital needs of the associate.
• Applicable discount rate.
• Probability of default of the counterparty.
Regarding the fair values of the call and put options, reasonably possible changes at the reporting date to one of
the signicant unobservable inputs stated below, keeping other inputs constant, would have the following effect:
• If the discount rate was higher by 1%, then the fair value of the options would be lower by EUR 6 thousand or
0.6%.
• If the fair value of the shares held was higher by 10%, then the fair value of the options would be lower by EUR
146 thousand or 15.3%.
• If probability of default of the counterparty was higher by 10%, then the fair value of the options would be lower
by EUR 255 thousand or 26.6%.
24. Capital and reserves
A. Share capital and share premium
The outstanding share capital and number of shares of the Company are as follows:
• Total outstanding share capital: EUR 117,892,172.38; and
• Total number of shares: 190,162,681.
The shares of the Company have no nominal value. Holders of shares are entitled to one vote per share at the
shareholders meetings of the Company.
Share premium of the Company amounts to EUR 58,600 thousand.
B. Nature and purpose of reserves
(a) Statutory reserve
Pursuant to the Belgian tax legislation, the companies are obliged, from their scal year prots, 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 prots
to its statutory reserve, until this reserve equals at least 1/3 of the company’s share capital. The distribution of the
statutory reserve is prohibited but it can be used to offset losses.
(b) Hedging reserve
The hedging reserve includes the effective portion of the cumulative net change in the fair value of hedging
instruments used in cash ow hedges pending subsequent recognition in prot or loss as the hedged cash ows
affect prot or loss.
(c) FVOCI reserve
This category relates to reserves formed by the application of the provisions of IFRS 9 regarding the treatment of
other investments classied as FVOCI.
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(d) Special reserves
This category relates to reserves formed by the application of the provisions of certain developmental laws, which
were granting tax benets to companies that invested their retained earnings rather than distribute them to the
shareholders. More specically, the aforementioned reserves either have exhausted their income tax liability or have
been permanently exempted from income tax, after the lapse of a specied period beginning from the completion
of the investments they concern.
(e) Tax 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.
(f) Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the nancial
statements of foreign operations.
C. Reconciliation of reserves
Statutory Hedging FVOCI Special Tax exempt Translation Total
Amounts in EUR thousand reserve reserve reserve reserves reserves reserve
Balance at 1 January 2020 7,619 (949) - 9,263 36,318 (17,552) 34,699
Other comprehensive income,
net of tax - (681) 640 - - (4,324) (4,364)
Transfer of reserves 93 - - - - - 93
Balance at 31 December 2020 7,712 (1,630) 640 9,263 36,318 (21,876) 30,427
Balance as at 1 January 2021 7,712 (1,630) 640 9,263 36,318 (21,876) 30,427
Other comprehensive income,
net of tax - 107 156 - - 643 906
Transfer of reserves 1,107 - - - 660 - 1,767
Acquisition of non-controlling
interests 17 3 - - 38 (100) (41)
Balance at 31 December 2021 8,836 (1,519) 796 9,263 37,016 (21,333) 33,059
25. Capital management
Cenergy Holdings’ policy consists in maintaining a strong capital structure to keep the condence of investors,
creditors and the market and enable the future development of its activities. The Board of Directors closely
monitors the return on capital and 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 dened as EBIT (result of
the period (earnings after tax) before income taxes & net nance costs) divided by total Capital Employed, (i.e.
equity and debt). The Board of Directors seeks opportunities and examines feasibility to leverage Cenergy Holdings
with relatively high ROCE (in any case higher than the cost of debt) and deleverage companies that go through a
relatively low ROCE performance period.
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Amounts in EUR thousand 2021 2020*
Prot for the period 22,079 24,922
Income tax 8,434 10,683
Net nance costs 28,985 31,640
EBIT 59,498 67,244
Equity 277,541 254,887
Long term debt (incl. Lease liabilities) 177,020 178,306
Short term debt (incl. Lease liabilities) 216,915 233,344
Capital employed 671,477 666,537
ROCE 8.9% 10.1%
* The comparative information is restated due to retroactive application of the IFRIC Agenda Decision ‘Attributing Benet to
Periods of Service’. See note 5.22, for details regarding restatement of prior years’ gures.
26. Debt
A. Overview
At 31 December
Amounts in EUR thousand 2021 2020
Non-current liabilities
Secured bank loans 5,791 6,833
Unsecured bank loans 5,219 11,084
Secured bond issues 35,698 81,835
Unsecured bond issues 128,233 74,874
Loans and borrowings - Long term 174,941 174,625
Lease liabilities - Long term 2,080 3,681
Total long term debt 177,020 178,306
Current liabilities
Secured bank loans 5,470 6,909
Factoring with recourse 7,931 2,245
Unsecured bank loans 170,796 180,692
Current portion of secured bond issues 4,385 13,798
Current portion of unsecured bond issues 18,326 19,354
Current portion of secured bank loans 3,058 2,543
Current portion of unsecured bank loans 5,733 6,050
Loans and borrowings - Short term 215,699 231,592
Lease liabilities - Short term 1,216 1,752
Total Short term debt 216,915 233,344
Total Debt 393,935 411,650
Information about Cenergy Holdings’ exposure to interest rate, foreign currency and liquidity risk is included in Note
30.
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The maturities of non-current loans are as follows:
Amounts in EUR thousand 2021 2020
Between 1 and 2 years 78,110 42,338
Between 2 and 5 years 71,193 111,759
Over 5 years 27,717 24,209
Total 177,020 178,306
The effective weighted average interest rates of the main categories of loans and borrowings at the reporting date
are as follows:
31 December 2021 31 December 2020
Amounts in EUR thousand Carrying amount Interest rate Carrying amount Interest rate
Bank lending (non-current) - EUR 11,010 2.8% 17,681 2.6%
Bank lending (non-current) - USD - - 37 1.0%
Bank lending (current) - EUR 190,375 3.4% 195,441 3.5%
Bank lending (current) - GBP 1 3.0% 1,437 3.0%
Bank lending (current) - USD - - 198 1.0%
Bank lending (current) - RON 2,613 3.8% 1,562 4.0%
Bond issues - EUR 186,641 3.8% 189,860 4.3%
During 2021, Cenergy Holdings’ subsidiaries obtained new bank loans amounting to EUR 89.3 million and paid back
loans of EUR 108.1 million maturing within the year. New loans are mainly drawdowns from existing revolving credit
facilities and new ones with similar terms and conditions, project nancing facilities as well as six new long-term
loans, described below. Loans and borrowings had an average effective interest rate of 3.6% (2020: 3.8%).
During 2021, the Group obtained the following long-term loans:
- Cables segment issued three bond loans of total value EUR 50 million. Specically:
• Hellenic Cables entered an agreement with a major Greek bank for a ‘green’ bond loan of EUR 20 million in
compliance with ESG nancial principles with an initial 2-year term from the date of signing.
• Fulgor also entered an agreement with a major Greek bank for a ‘green’ bond loan of EUR 20 million in
compliance with ESG nancial principles with an initial 2-year term from the date of signing. Both bond loans
will 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.
• Fulgor entered an agreement with a Greek bank for a long-term bond loan of EUR 10 million for 6 years from the
date of signing.
- Steel Pipes segment issued three bond loans of total value EUR 21.6 million. Specically:
• Corinth Pipeworks entered an agreement with a major Greek bank for a long-term bond loan of EUR 10 million
for 2 years from the date of signing.
• Corinth Pipeworks entered an agreement with a Greek bank for a long-term bond loan of EUR 7 million for 5
years from the date of signing.
• Corinth Pipeworks entered an agreement with a major Greek bank for a long-term bond loan of EUR 4.6 million
for 5 years from the date of signing.
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All the above long term bond loans are fully drawn.
During Q4 2021, Hellenic Cables and Corinth Pipeworks repaid the syndicated bond loans initially received in 2013
and reproled during 2018. The total amounts repaid, including the scheduled repayments of December 2021, were
EUR 36.6 million and 14.0 million, respectively. For these bond loans, mortgages on property, plant and equipment
and pledges on inventories were recorded in favor of the bank syndications. The subsidiaries have undertaken all
appropriate actions to lift such mortgages and pledges; however, this process has not yet been completed.
Short-term facilities are predominately revolving credit facilities, funding working capital needs, and project
nancing facilities for specic ongoing and new projects.
As of 31 December 2021, Cenergy Holdings’ consolidated current liabilities exceeded consolidated current assets by
EUR 38.2 million (31 December 2020: EUR 44.2 million). Even so, Cenergy Holdings’ subsidiaries have never in the
past experienced any issues in nancing their activities, renewing their working capital lines or renancing long-
term loans and borrowings. Management expects that any mandatory repayment of banking facilities will be met
with operating cash ows or from currently unutilized and committed credit lines. Regarding the funding of project-
based activities, Cenergy Holdings’ subsidiaries have secured the necessary funds through project nance facilities.
Mortgages in favor of banks have been recorded on property, plant and equipment of subsidiaries. The carrying
amount of assets mortgaged is EUR 49 million.
In the bank loan agreements of Cenergy Holdings’ companies there are clauses of change of control that provide
the lenders with an early redemption rights.
There was no incident in 2021 of breach of covenants of the loans of Cenergy Holdings’ companies.
B. Reconciliation of movements of liabilities to cash ows arising from nancing activities
2021 2020
Amounts in EUR thousand Loans & Lease Total Loans & Lease Total
borrowings liabilities borrowings liabilities
Balance at 1 January 406,217 5,433 411,650 498,556 5,758 504,314
Changes from nancing cash ows:
Proceeds from new borrowings 89,315 - 89,315 38,030 - 38,030
Repayment of borrowings (108,104) - (108,104) (132,217) - (132,217)
Principal elements of lease payments - (1,747) (1,747) - (1,267) (1,267)
Total changes from nancing
cash ows (18,789) (1,747) (20,536) (94,187) (1,267) (95,454)
Other changes:
New leases - 909 909 - 1,628 1,628
Effect of changes in foreign
exchange rates (75) 6 (70) (133) (92) (225)
Capitalised borrowing costs 522 - 522 505 - 505
Interest expense 16,379 207 16,585 20,079 212 20,291
Interest paid (14,288) (207) (14,495) (18,603) (212) (18,815)
Terminations - (173) (173) - (573) (573)
Modications - - - - (20) (20)
Other movement (459) - (459) - - -
Reclassications 1,132 (1,132) - - (20) (20)
3,212 (391) 2,821 1,848 943 2,790
Balance at 31 December 390,640 3,296 393,935 406,217 5,433 411,650
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27. Trade and other payables
At 31 December
Amounts in EUR thousand Note 2021 2020
Suppliers 169,388 114,881
Notes payable 214,722 93,230
Social security contributions 11 2,366 2,561
Amounts due to related parties 36 12,525 9,026
Sundry creditors 2,932 5,195
Accrued expenses 17,990 20,644
Other taxes 2,699 3,771
Total 422,622 249,309
Current balance of trade and other payables 422,622 249,092
Non-current balance of trade and other payables - 217
Balance at 31 December 422,622 249,309
The increase in trade and other payables is mainly attributed to the improved credit terms agreed with the supply
chain partners of the Group related mainly to the purchase of primary raw materials.
The caption ‘notes payables’ in the table above concerns structured payable arrangements related to purchases of
primary raw materials, such as copper, steel etc. whose payment periods can be longer than usual for such supplies.
28. Grants
Amounts in EUR thousand Note 2021 2020
Balance at 1 January 16,487 14,006
New grants received during the year 42 317
New grants for which receipt is pending - 3,073
Amortisation of grants 8.A (728) (908)
Effect of movement in exchange rates 3 (1)
Balance at 31 December 15,804 16,487
Government grants have been received mainly for investments in property, plant and equipment.
All conditions attached to the grants received by Cenergy Holdings were met as of 31 December 2021.
29. Provisions
Amounts in EUR thousand Note 2021 2020
Balance at 1 January - -
Charge for the year 8.B 12,842 -
Effect of movement in exchange rates 568 -
Balance at 31 December 13,410 -
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30. Financial instruments
A. Accounting classications and fair values
The following table shows the carrying amounts and fair values of nancial assets and nancial liabilities, including
the levels in the fair value hierarchy.
31/12/2021
Amounts in EUR thousand Carrying amount Level 1 Level 2 Level 3 Total
Equity investments at FVOCI 5,812 - - 5,812 5,812
Derivative nancial assets 1,480 - 536 944 1,480
7,293 - 536 6,756 7,293
Derivative nancial liabilities (2,596) (1,199) (1,397) - (2,596)
4,697 (1,199) (861) 6,756 4,697
31/12/2020
Amounts in EUR thousand Carrying amount Level 1 Level 2 Level 3 Total
Equity investments at FVOCI 5,657 - - 5,657 5,657
Derivative nancial assets 1,455 - 584 871 1,455
7,112 - 584 6,528 7,112
Derivative nancial liabilities (2,576) (2,433) (143) - (2,576)
4,536 (2,433) 441 6,528 4,536
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 nancial 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.
Specically, the carrying amount of loans and borrowings is considered as a good approximation of their fair
value as:
• 90% of consolidated loans and borrowings concern oating-rate debt, which are a very good approximation of
current market rates;
• As for xed-rate instruments (EUR 40.6 million as of 31 Dec 2021), the fair value test based on current market
rates indicates that their fair value determined to EUR 42.4 million.
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The following table shows the reconciliation between opening and closing balances for Level 3 nancial assets,
which are classied as Equity investments at:
Amounts in EUR thousand 2021 2020
Balance at 1 January 5,657 5,015
Additions - 26
Change in fair value 156 640
Disposals - (24)
Balance at 31 December 5,812 5,657
B. Measurement of fair values
(a) Valuation techniques and signicant unobservable inputs
The fair values of nancial assets that are traded in active markets (stock markets) (e.g. derivatives such as futures,
shares, bonds, mutual funds) are set according to the published prices (Level 1 inputs) that are valid on the reporting
date. The fair value of nancial assets is determined by their offer price, while the fair value of nancial liabilities is
determined by their bid price.
The fair values of nancial 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 nancial liabilities, for the purpose of being recorded in Financial Statements, are estimated based
on the present value of the future cash ows that arise from specic contracts using the current interest rate that is
available for Cenergy Holdings and its companies for the use of similar nancial-credit means.
Inputs that do not meet the respective criteria and cannot be classied in Level 1 but are observable, either directly
or indirectly, fall under Level 2. Over-the-counter derivative nancial instruments based on prices obtained from
brokers are classied in this level.
The nancial assets, such as unlisted shares or option schemes that are not traded in an active market whose
measurement is based either on the Cenergy Holdings’ companies’ forecasts for the issuer’s future protability or on
other widely acceptable method are classied under Level 3.
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The following table shows the valuation techniques used in measuring fair values, as well as the signicant
unobservable inputs used:
Signicant Inter-relationship between
Valuation unobservable key unobservable inputs
Type technique inputs and fair value measurement
Forwards Market comparison technique: Broker quotes Not applicable
exchange The fair values are based on
contracts broker quotes. Similar contracts
are traded in an active market
and the quotes reect the actual
transactions in similar instruments
Future contracts Market value: Price as traded Not applicable Not applicable
in active market
Options Options pricing model: The basic inputs that have • If the discount rate was
The model is based on widely been used in the valuation higher, then the fair value of
acceptable methodology model are the following: the options would be lower
considering the complexity of • Fair value of the share held • If the fair value of the shares
the options plan in the associate, which in turn held was higher, then the fair
is dependent on expected value of the options would be
turnover, EBITDA margins and lower
future working capital needs • If probability of default of the
of the associate counterparty was higher, then
• Applicable discount rate the fair value of the options
• Probability of default of would be lower by EUR 255
the counterparty thousand or 26.6%
(See also note 23)
Equity securities Adjusted Net Asset Method: Investment in Noval Property: The estimated fair value
not traded in According to this method the Noval Property is a real estate would increase (decrease)
active markets Group adjusts the book values company following fair value based on the fair value of
of an investment’s assets and model to value its assets. underlying properties held
liabilities, if and when necessary, Therefore, net assets is
to arrive at their fair market considered a reliable metric
value at the time of valuation for the estimation of fair
value of the investment
(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 2021 and no transfers in either direction
in 2020.
C. Financial risk management
Cenergy Holdings and its companies are exposed to credit, liquidity and market risk due to the use of its nancial
instruments. This Note sets forth information on their exposure to each one of the above risks, their objectives, the
policies and procedures applied to risk measurement and management and Cenergy Holdings’ Capital Management
(Note 25).
The risk management policies are applied to identify and analyse the risks facing Cenergy Holdings and its
companies, set risk-taking limits and apply relevant control systems. The risk management policies and relevant
systems are examined from time to time so as to take into account any changes in the market and the companies’
activities.
The implementation of risk management policies and procedures is supervised by the Internal Audit department,
which performs recurring and non-recurring audits and the results of such audits are notied to the Board of
Directors.
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C.1. Credit risk
Credit risk is the risk of the nancial loss to Cenergy Holdings, if a customer or counterparty to a nancial
instrument fails to meet its contractual obligations, and arises principally from the companies’ receivables from
customers and contract assets & deposits with banks.
The carrying amount of nancial assets represents the maximum credit exposure.
At 31 December
Amounts in EUR thousand Note 2021 2020
Trade & Other receivables - Current 15 132,040 112,872
Trade & Other receivables - Non-current 15 1,177 1,303
Contract assets 7.D 98,217 64,875
Less:
Other down payments 15 (624) (725)
Tax assets 15 (14,476) (12,064)
Other receivables 15 (4,716) (6,580)
Subtotal 211,617 159,680
Equity investments at FVOCI 22 5,812 5,657
Cash and cash equivalents 16 129,606 81,035
Derivatives 23 1,480 1,455
Subtotal 136,899 88,147
Grand total 348,516 247,827
(a) Trade and other receivables & contract assets
Cenergy Holdings’ exposure to credit risk is inuenced mainly by the individual characteristics of each customer.
However, the companies’ management also considers the factors that may inuence the credit risk of its customer
base, including the default risk of the industry and country in which customers operate. As of the reporting dates,
no client exceeds 10% of consolidated sales and, consequently, commercial risk is spread over a large number of
clients. However, due to the fact that the business of certain subsidiaries (i.e. CPW Pipe Industry, Hellenic Cable
Industry and Fulgor) is project oriented, there are cases where this threshold is individually exceeded for a rather
short period of time. For 2021, this threshold was exceeded from only one client of cables segment, namely ADMIE
(Greek TSO), due to the execution of certain signed contracts for cables projects.
Cenergy Holdings has established a credit policy where each new customer is examined on an individual basis in
terms of creditworthiness before the standard payment and delivery terms are proposed to such customer. Cenergy
Holdings’ review includes external ratings, if they are available, and in some cases bank references. Credit limits are
set for each individual customer, which are reviewed in accordance with current circumstances and the terms of
sales and collections are readjusted, if necessary. As a rule, the credit limits of customers are set on the basis of the
insurance limits received for them from insurance companies and, subsequently, receivables are insured according
to such limits.
When monitoring the credit risk of customers, the latter are grouped according to their credit characteristics, the
maturity characteristics of their receivables and any past problems of recoverability they have shown. Trade and
other receivables mainly include wholesale customers of Cenergy Holdings’ companies. For any customer
characterized as being “high risk”, any subsequent sale is required to be paid in advance. Depending on the
background of the customer and its status, Cenergy Holdings’ subsidiaries may demand collateral or other security
(e.g. letters of guarantee) in order to secure its receivables, if possible.
Cenergy Holdings records an impairment that represents its estimate of expected credit losses in respect of trade
and other receivables.
152
As of 31 December, the maximum exposure to credit risk for trade and other receivables by geographic region was
as follows:
Amounts in EUR thousand 2021 2020
Greece 96,469 84,151
Other EU Member States 49,974 63,320
Other European countries 25,372 81
Asia 36,471 7,586
America (North & South) 2,128 4,065
Africa 1,204 477
Total 211,617 159,680
As of 31 December, the aging of trade and other receivables that were not impaired was as follows:
Amounts in EUR thousand 2021 2020
Neither past due nor impaired 196,749 149,942
Overdue
- Up to 6 months 13,687 6,531
- Over 6 months 1,182 3,207
Total 211,617 159,680
Subsidiaries’ management believes that 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, including
underlying customers’ credit ratings, if they are available.
As of 31 December 2021 and 2020, the remaining receivables past due but not impaired mainly related to leading
industrial groups, major public and private utilities and major resellers.
Cenergy Holdings’ companies insure the majority of their receivables in order to be secured in case of default. As of
31 December 2021, 74% of the balances owed by counterparties were insured.
The movement in impairment of trade and other receivables and contract assets is as follows:
2021 2020
Amounts in EUR thousand Trade & other Contract Total Trade & other Contract Total
receivables assets receivables assets
Balance at 1 January 24,390 143 24,533 26,678 115 26,793
Impairment loss recognized 46 175 220 292 48 341
Impairment loss reversed (168) - (168) (375) (21) (395)
Reversal of / (Impairment loss) on
receivables and contract assets (122) 175 53 (82) 28 (55)
Write-offs (14) - (14) (321) - (321)
Foreign exchange differences 1,777 - 1,777 (1,884) - (1,884)
Balance at 31 December 26,031 318 26,349 24,390 143 24,533
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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 credit loss experience combined with forward-
looking information in macroeconomic factors effecting the credit risk, such as country risk and customers’
industry related risks.
The following collateral exists for securing non-insured receivables & contract assets:
Amounts in EUR thousand 2021 2020
Bank letters of guarantee - -
Payables which can be offset by receivables 8,842 3,858
Total 8,842 3,858
(b) Cash and cash equivalents
Cenergy Holdings and its companies held cash and cash equivalents of EUR 129,606 thousand at 31 December 2021.
The cash and cash equivalents are held with bank and nancial institution counterparties, which are rated from AA-
to B based on ratings of Fitch.
C.2. Liquidity risk
Liquidity risk is the risk that Cenergy Holdings and its companies will encounter difculty in meeting the obligations
associated with its nancial liabilities that are settled by delivering cash or another nancial asset. The approach to
manage liquidity is to ensure, as much as possible, that they will have sufcient liquidity to meet their liabilities
when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to their reputation.
In order to avoid liquidity risks, Cenergy Holdings and its companies estimate the expected cash ows for the next
year when preparing the annual budget and monitor the monthly rolling forecast of its cash ows for the next
quarter, so as to ensure sufcient cash on hand to meet its operating needs, including coverage of its nancial
obligations. This policy does not take into account the relevant effect from extreme conditions that cannot be
foreseen.
The companies monitor their cash needs through Steelmet S.A., an afliate company, which agrees upon nancing
terms with the credit institutions in Greece and other countries.
Exposure to liquidity risk
Financial liabilities and derivatives based on contractual maturity are broken down as follows:
31/12/2021 Contractual cash ows
Carrying Up to 1 to 2 2 to 5 Over 5
Amounts in EUR thousand Amount 1 year years years years Total
Bank loans and factoring with recourse 203,998 197,271 9,057 3,269 128 209,725
Bond issues 186,641 28,065 75,683 76,230 28,413 208,391
Lease liabilities 3,296 1,665 1,046 756 - 3,467
Derivatives 2,596 2,596 - - - 2,596
Trade and other payables 417,557 417,557 - - - 417,557
814,089 647,154 85,785 80,256 28,542 841,736
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31/12/2020 Contractual cash ows
Carrying Up to 1 to 2 2 to 5 Over 5
Amounts in EUR thousand Amount 1 year years years years Total
Bank loans and factoring with recourse 216,356 202,283 9,448 9,628 461 221,821
Bond issues 189,860 43,154 38,217 109,089 31,625 222,084
Lease liabilities 5,433 1,929 1,401 2,044 466 5,840
Derivatives 2,576 2,576 - - - 2,576
Trade and other payables 242,977 242,760 227 - - 242,987
657,203 492,701 49,294 120,761 32,552 695,309
Cenergy Holdings’ companies have loans that contain non-nancial loan covenants. A future breach of covenants
may require the companies to repay the loans earlier than indicated in the above table. Under the agreement, the
covenants are monitored on a regular basis and regularly reported to companies’ management to ensure
compliance with the agreements. Currently, there are no nancial covenants related to adherence with certain levels
of set nancial ratios.
C.3. Market risk
Market risk is the risk that changes in the market prices – such as commodity prices, foreign exchange rates and
interest rates - will affect Cenergy Holdings and its companies’ income or the value of their nancial instruments.
Cenergy Holdings’ companies use derivatives to manage market risk. Generally, the companies seek to apply hedge
accounting to manage volatility in prot or loss.
(a) Currency risk:
Cenergy Holdings 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 Cenergy Holdings and its companies, which
is mainly EUR. The most important currencies in which these transactions are held are mainly EUR, USD and GBP.
Over time, Cenergy Holdings’ companies hedge the greatest part of their estimated exposure to foreign currencies
in relation to the anticipated sales and purchases, as well as to the receivables and liabilities in foreign currency.
Cenergy Holdings’ companies enter mainly into forward contracts with external counterparties so as to deal with the
risk of the exchange rates varying, which mainly expire within less than a year from the reporting date. When
deemed necessary, these contracts are renewed upon expiry. As the case may be, the foreign exchange risk may
also be covered by taking out loans in the respective currencies. Loan interest is denominated in the same currency
as that of cash ows that arise from the Cenergy Holdings’ companies’ operating activities.
The investments of Cenergy Holdings and its companies in their subsidiaries are not hedged, because these
exchange positions are considered to be long-term and have been made mainly in EUR.
The summary quantitative data about Cenergy Holdings and its companies’ exposure to currency risk as reported is
as follows.
31/12/2021
Amounts in EUR thousand USD GBP RON OTHER TOTAL
Trade and other receivables 10,028 7,562 16,638 643 34,871
Cash & cash equivalents 4,934 2,156 420 1 7,511
Loans and Borrowings (4,331) - (2,613) - (6,944)
Trade and other payables (21,230) (1,825) (14,162) - (37,217)
Contract liabilities - - (23) (4,811) (4,834)
(10,599) 7,893 260 (4,168) (6,613)
Derivatives for risk hedging (Nominal Value) (39,692) (21,049) - - (60,741)
Total risk (50,290) (13,156) 260 (4,168) (67,354)
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31/12/2020
Amounts in EUR thousand USD GBP RON OTHER TOTAL
Trade and other receivables 10,999 8,398 9,277 - 28,674
Cash & cash equivalents 7,288 37 758 43 8,127
Loans and Borrowings (732) (1,624) (1,562) - (3,918)
Trade and other payables (14,280) (430) (11,023) (8) (25,741)
Contract liabilities (2,302) - (144) - (2,446)
974 6,381 (2,693) 35 4,696
Derivatives for risk hedging (Nominal Value) (16,581) (16,183) - - (32,764)
Total risk (15,607) (9,802) (2,693) 35 (28,068)
The following exchange rates have been applied during the year.
Average exchange rate Year end spot rate
2021 2020 2021 2020
USD 1.1827 1.1422 1.1326 1.2271
GBP 0.8596 0.8897 0.8403 0.8990
ROΝ 4.9208 4.8376 4.9481 4.8694
Α reasonably possible strengthening (weakening) of the EUR, USD, GBP or RON against other currencies at 31
December would have affected the measurement of nancial instruments denominated in a foreign currency and
affected equity and prot 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.
Prot or loss Equity, net of tax
Amounts in EUR thousand Strengthening Weakening Strengthening Weakening
2021
USD (10% movement in relation to EUR) 1,230 (1,504) 4,566 (5,580)
GBP (10% movement in relation to EUR) 1,186 (1,450) 1,186 (1,450)
RON (10% movement in relation to EUR) (24) 29 (24) 29
2020
USD (10% movement in relation to EUR) 511 (624) 1,383 (1,690)
GBP (10% movement in relation to EUR) 891 (1,089) 891 (1,089)
RON (10% movement in relation to EUR) 245 (299) 245 (299)
(b) Interest rate risk:
Exposure to interest rate risk
Cenergy Holdings’ companies during the prolonged low interest period have adopted a exible policy of ensuring
that between 5% and 20% of its interest rate risk exposure is at a xed rate. This is achieved partly by entering into
xed-rate instruments and partly by borrowing at a oat rate. The interest rate prole of Cenergy Holdings’
companies’ interest-bearing nancial instruments, as reported is as follows.
156
At 31 December
Amounts in EUR thousand 2021 2020
Fixed-rate instruments
Financial liabilities (40,574) (39,518)
Variable-rate instruments
Financial liabilities (353,362) (372,133)
Fixed-rate instruments
The Group does not account for any xed-rate nancial assets or nancial liabilities at fair value through prot or
loss, and the Group does not currently use derivatives (interest rate swaps) as hedging instruments under a fair
value or cash ow hedge accounting model. Therefore, a change in interest rates at the reporting date would not
affect either prot or loss or equity.
Cash ow sensitivity analysis for variable-rate instruments
A reasonably possible change of 0.25% in interest rates at the reporting date would have increased / (decreased)
equity and prot or loss by the amount shown below. This analysis assumes that all other variables, in particular
foreign currency exchange rate, remain constant.
Prot or loss & Equity, net of tax
Amounts in EUR thousand 0.25% increase 0.25% decrease
2021
Financial liabilities (1,140) 1,140
2020
Financial liabilities (1,314) 1,314
The Group does not currently use derivatives (interest rate swaps) as hedging instruments under a fair value or cash
ow hedge accounting model and as a result the impact presented in the table above in prot or loss and equity is
the same.
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(c) Derivatives assets and liabilities designated as cash ow hedges
The following table indicates the periods in which the cash ows associated with cash ow hedges are expected to
occur:
2021 Expected cash ows
Amounts in EUR thousand Carrying Amount 1-6 months 6-12 months > 1 year Total
Foreign exchange forwards
Assets 536 536 - - 536
Liabilities (1,141) (1,141) - - (1,141)
Future contracts
Assets - - - - -
Liabilities (1,199) (1,213) 14 - (1,199)
Options
Assets 944 - - 944 944
Liabilities - - - - -
(860) (1,818) 14 944 (860)
2020 Expected cash ows
Amounts in EUR thousand Carrying Amount 1-6 months 6-12 months > 1 year Total
Foreign exchange forwards
Assets 326 326 - - 326
Liabilities - - - - -
Future contracts
Assets - - - - -
Liabilities (2,433) (2,433) - - (2,433)
Options
Assets 871 - - 871 871
Liabilities - - - - -
(1,235) (2,107) - 871 (1,235)
The table below provides information about the items designated as cash ow hedging instruments during the year
and also at 31 December 2021 and the reconciliation of hedging reserve.
Line item in the Amount
statement of Changes in reclassied Effect
nancial the value of from of
position where the hedging hedging movement Balance
the hedging Balance instrument reserve in 31
Nominal instrument 1 January recognised to prot exchange December
Amount Carrying amount is include 2021 in OCI or loss rates 2021
Amounts in EUR thousands Assets Liabilities
Forward foreign 36,691 536 (1,141) Derivatives - 326 (314) (756) 139 (605)
exchange contracts Assets &
(Liabilities)
Future contracts 33,995 - (1,199) Derivatives - (2,433) 2,433 (1,199) - (1,199)
Assets &
(Liabilities)
70,686 536 (2,340) (2,107) 2,119 (1,955) 139 (1,804)
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(d) Commodity price risk
The commodity markets have experienced and are expected to continue to experience price uctuations. Cenergy
Holdings subsidiaries have exposure to the following commodities: steel, aluminium, copper and lead. Cenergy
Holdings subsidiaries therefore use future contracts to minimize exposure to commodity price volatility, when
possible. Subsidiaries in cables segment use back to back matching of purchases and sales, or derivative
instruments (future contracts) in order to minimize the effect of the metal price uctuations on their results.
As of 31 December 2021, the net derivative balance per commodity was:
Amounts in EUR thousand 2021 2020
Aluminium - Long / (short) position 373 487
Copper - Long / (short) position (1,548) (2,859)
Lead - Long / (short) position (25) (58)
Nickel - Long / (short) position - (4)
Total (1,199) (2,433)
These hedges are designated in a cash ow hedge accounting relationship.
C.4. Risk of macroeconomic and nancial environment
Cenergy Holdings’ 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. Impact of Covid-19 pandemic
The Covid-19 pandemic has had a limited impact on the nancial performance of the Group’s cables segment,
during 2021, while the steel pipes segment experienced a negative sway, mainly due to the continuing drop in
demand and postponement of steel pipes projects. The health and safety of the Group’s employees is of the highest
priority for the Executive Management, which continues to closely monitor the situation, observing national and
local authority guidelines and ensuring an undisrupted supply chain. Since the beginning of the Covid-19 outbreak,
Cenergy Holdings Management has put in place a multi-faceted action plan to mitigate negative effects and
focusing on the following pillars:
• Workforce protection, to avoid production interruptions;
• Operational stability and customer engagement;
• Continuity of the supply chain;
• Sufcient liquidity;
• Commercial resilience (both sales & orders).
The measures introduced were successfully implemented at all sites, and until now all production plants of both
segments in Greece, Romania and Bulgaria are in undisrupted operation. Production continuity was maintained,
while health & safety measures were enforced. Raw material supply was safeguarded and the Group faced no
shortage whatsoever in all critical inputs.
The incremental costs - excluding any reliefs provided by local legislation because of measures taken due to the
pandemic - incurred due to the coronavirus outbreak amounted to EUR 211 thousand (2020: EUR 1,837 thousand).
Such cost includes temporary premium payments to compensate employees for performing their normal duties at
increased personal risk, charges for cleaning and disinfecting facilities more thoroughly and more frequently,
medical equipment, nursery staff and other expenses and reliefs directly associated with the coronavirus Covid-19
pandemic.
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32. List of subsidiaries
The Company’s subsidiaries and the interest held at the end of the reporting period are as follows:
Direct & indirect Direct & indirect
Subsidiaries Country interest 2021 interest 2020
CORINTH PIPEWORKS INDUSTRY S.A. GREECE 100.00% 100.00%
CPW AMERICA CO USA 100.00% 100.00%
HUMBEL LTD CYPRUS 100.00% 100.00%
WARSAW TUBULAR TRADING SP. ZOO. POLAND 100.00% 100.00%
FULGOR S.A. GREECE 100.00% 100.00%
ICME ECAB S.A. ROMANIA 99.98% 98.59%
LESCO OOD BULGARIA 100.00% 100.00%
LESCO ROMANIA S.A. ROMANIA 65.00% 65.00%
DE LAIRE LTD CYPRUS 100.00% 100.00%
HELLENIC CABLES S.A.
HELLENIC CABLE INDUSTRY S.A. GREECE 100.00% 100.00%
HELLENIC CABLES TRADING CO USA 100.00% 100.00%
HELLENIC CABLES AMERICAS CO USA 100.00% -
For all the above entities, Cenergy Holdings S.A. does exercise control directly and/or indirectly.
During 2021, Cenergy Holdings, established C-Energy Americas Co., a wholly owned subsidiary in the USΑ. On
January 6, 2022, the subsidiary C-Energy Americas Co. was renamed to Hellenic Cables Americas Co.
During December 2021, the subsidiary Hellenic Cables America Co. was renamed to Hellenic Cables Trading Co.
33. Joint operations
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 – 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.
The above joint operations were formed during prior years.
Fulgor has a 71.09% interest in a joint arrangement called Fulgor – Asso.subsea Ltd Consortium, which was set up as
a partnership together with Asso.subsea Ltd during 2021. 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 Kareas II Wind Farm to Greece’s mainland grid. The principal place of
business of this joint operation is in Greece.
The agreements in relation to the VO Cablel VOF, DEME Offshore NL - Hellenic Cables V.O.F., Fulgor – JDN
Consortium and Fulgor – Asso.subsea Ltd Consortium 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 classied as a joint operations and the Group
recognises its direct right to the jointly held assets, liabilities, revenues and expenses as described in note 5.1(g).
160
34. Commitments
A. Purchase commitments
Cenergy Holdings’ subsidiaries have entered into contracts according to their investment plans, which are expected
to be concluded during the next year.
At 31 December
Amounts in EUR thousand 2021 2020
Property, plant and equipment 6,851 9,845
B. Guarantees
At 31 December
Amounts in EUR thousand 2021 2020
Guarantees for securing liabilities to suppliers 3,414 6,999
Guarantees for securing the good performance of contracts with customers 231,506 252,397
Guarantees for securing grants 9,573 9,573
35. Contingent liabilities
A. Litigations & administrative reviews
Regarding Corinth Pipeworks’ exports of large diameter welded pipe (LDWP) to the US for the periods April 2020 -
April 2021 and April 2021 - April 2022, additional administrative reviews from the US Department of Commerce
(DoC) are expected. Νo provision has been recorded in respect to these administrative reviews due to the following
facts:
• For the period April 2020 - April 2021 there were no sales to the US subject to antidumping duties; thus, no
additional charge is expected for that period.
• For the period April 2021 - April 2022 sales to the US subject to antidumping duties were not material. The
outcome of such administrative review is considered as highly volatile and hard to predict, thus the amount of
any arising liability cannot be reasonably estimated.
B. Contingent tax liabilities
The tax lings of the subsidiaries are routinely subjected to audit by the tax authorities in most of the jurisdictions in
which Cenergy Holdings conduct business. These audits may result in assessments of additional taxes. Cenergy
Holdings provide for additional tax in relation to the outcome of such tax assessments at the amount expected to
be settled (or recovered).
Cenergy Holdings believe that its accruals for tax liabilities are adequate for all open tax years based on its
assessment of underlying factors, including interpretations of tax law and prior experience.
161
36. Related parties
A. Related party transactions
The following transactions have been made with Viohalco and its subsidiaries, equity-accounted investees and other
related parties:
For the year ended 31 December
Amounts in EUR thousand 2021 2020
Sales of goods
Equity-accounted investees 166,161 118,139
Other related parties 85,238 40,420
251,399 158,559
Sales of services
Equity-accounted investees 272 273
Other related parties 2,003 1,801
2,274 2,074
Sales of property, plant & equipment
Other related parties - 65
- 65
Purchases of goods
Equity-accounted investees 8 17
Other related parties 20,744 13,973
20,752 13,990
Purchases of services
Viohalco 86 82
Equity-accounted investees 6,779 7,929
Other related parties 14,528 10,452
21,394 18,463
Purchase of property, plant and equipment
Equity-accounted investees - 96
Other related parties 4,414 3,638
4,414 3,733
Other related parties comprise subsidiaries, associates and joint ventures of Viohalco Group.
During 2021, the value of sales of goods to related parties have increased, due to the increased LME metal prices
and higher sales volume of cables segment.
162
Closing balances that arise from sales/purchases of goods, services, xed assets, etc. are as follows:
At 31 December
Amounts in EUR thousand 2021 2020
Non-current receivables from related parties
Other related parties 208 208
208 208
Current receivables from related parties
Equity-accounted investees 14,335 14,457
Other related parties 17,110 14,485
31,445 28,942
Current liabilities to related parties
Parent company 168 82
Equity-accounted investees 1,020 3,584
Other related parties 11,337 6,279
12,525 9,945
The outstanding balances from related parties are not secured and the settlement of those current balances is
expected to be performed in cash during the next year, since the balances concern only short-term receivables &
payables, except for the balances classied as Non-current receivables from related parties, which concerns to long-
term guarantees given to related parties providing energy services to Group’s subsidiaries.
B. Key management personnel compensation
The table below provides an overview of the transactions with Board members and executive management.
For the year ended 31 December
Amounts in EUR thousand 2021 2020
Compensation to BoD members and executives 1,060 1,146
The compensation to directors and executive management in the table above is xed. No variable compensation,
post-employment benets or share based benets were paid.
163
37. Auditor’s fees
The Company’s statutory auditor (PwC Reviseurs d’Entreprises SRL / Bedrijfsrevisoren BV) and a number of other
member rms of the auditor’s network, received fees for the following services:
For year ended 31 December
Amounts in EUR thousand 2021 2020
PwC Reviseurs d’Entreprises SRL / Bedrijfsrevisoren BV
Audit 105 105
Audit related services 22 -
126 105
PwC Network
Audit 284 283
Tax related services 136 77
Other services 4 7
424 366
Total 551 471
38. Subsequent events
On February 8th, 2022, the US Department of Commerce (DoC) published its nal results in the administrative
proceedings conducted by the DoC for the period from April 19, 2019 through April 30, 2020 (“POR”) in connection
with an antidumping (“AD”) 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 percent based on total adverse facts available (AFA) for
mandatory respondent Corinth Pipeworks S.A., Cenergy Holdings’ steel pipes segment. Despite the lengthy process
of the administrative review involving the supply of extremely detailed data sets on Corinth Pipeworks’ commercial
practices for the POR under scrutiny, as well as all reasonable estimations made throughout 2021 on the size, if any,
of a possible AD duty rate, the DoC concluded on such a high AD duty rate. Corinth Pipeworks intends to le 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 nal determination. Cenergy Holdings considers that there will be no material
impact on the business of its subsidiary Corinth Pipeworks S.A., as the latter strongly follows a geographically
diversied commercial policy and the USA market does not presently constitute its core market. The one-off,
additional provision charge on Cenergy Holdings’ annual consolidated economic results from a retrospective
implementation of the AD duty rate and reaches ca. EUR 12.8 million (USD 14 million plus interest).
The Ukraine conict which began in February 2022 is already pushing up market volatility and increasing the
probability of disruptions in many parts of the global economy. Though its impact on Cenergy Holdings’
subsidiaries cannot be fully predicted right now, the overall exposure to Ukraine and Russia is very limited and
business consequences are not expected to be material. Sales to these markets represent an insignicant portion of
total turnover (ca. 2,3% for 2021) and any loss in revenue will be fully offset by demand in other markets.
Nonetheless, Cenergy Holdings’ companies have already initiated actions to shift the supply of raw materials
currently sourced from Russia to alternative markets so as to mitigate any potential disruption in their supply chain.
As for nancing, the companies have no exposure to Russian banks. Finally, in the energy front, it is clear the conict
in Ukraine has accelerated price ination already present since the second half of 2021. Cenergy Holdings’
companies have already taken mitigating actions to reduce the business impact. They are monitoring the situation
closely and will modify their approach when and as required to secure efciency in their operations.
No other subsequent event for which disclosure is required in the Consolidated Financial Statements has occurred
since 31 December 2021.
164
165
166
Statutory Auditor’s Report
STATUTORY AUDITOR'S REPORT
TO THE GENERAL SHAREHOLDERS’
MEETING OF CENERGY HOLDINGS
SA ON THE CONSOLIDATED
ACCOUNTS FOR THE YEAR ENDED
31 DECEMBER 2021
We present to you our statutory auditor’s report in the
context of our statutory audit of the consolidated
accounts of Cenergy Holdings SA (the “Company”)
and its subsidiaries (jointly “the Group”). This report
includes our report on the consolidated accounts, as
well as the other legal and regulatory requirements.
This forms part of an integrated whole and is indivisible.
We have been appointed as statutory auditor by
the general meeting d.d. 28 May 2019, following
the proposal formulated by the board of directors
and following the recommendation by the audit
committee. Our mandate will expire on the date of
the general meeting which will deliberate on the
annual accounts for the year ended 31 December
2021. We have performed the statutory audit of the
Company’s consolidated accounts for 3
consecutive years.
Report on the consolidated
accounts
Unqualied opinion
We have performed the statutory audit of the
Group’s consolidated accounts, which comprise the
consolidated statement of nancial position as at 31
December 2021, the consolidated statement of
prot or loss, the consolidated statement of prot
or loss and other comprehensive income, the
consolidated statement of changes in equity and
the consolidated statement of cash ows for the
year then ended, and notes to the consolidated
nancial statements, including a summary of
signicant accounting policies and other
explanatory information, and which is characterised
by a consolidated statement of nancial position
total of EUR 1,205,950 thousand and a prot for the
year of EUR 22,079 thousand.
In our opinion, the consolidated accounts give a true
and fair view of the Group’s net equity and
consolidated nancial position as at 31 December
2021, and of its consolidated nancial performance
and its consolidated cash ows for the year then
ended, in accordance with International Financial
Reporting Standards as adopted by the European
Union and with the legal and regulatory requirements
applicable in Belgium.
Basis for unqualied opinion
We conducted our audit in accordance with
International Standards on Auditing (ISAs) as
applicable in Belgium. Furthermore, we have applied
the International Standards on Auditing as approved
by the IAASB which are applicable to the year-end
and which are not yet approved at the national level.
Our responsibilities under those standards are further
described in the “Statutory auditor’s responsibilities for
the audit of the consolidated accounts” section of our
report. We have fullled our ethical responsibilities in
accordance with the ethical requirements that are
relevant to our audit of the consolidated accounts in
Belgium, including the requirements related to
independence.
We have obtained from the board of directors and
Company ofcials the explanations and information
necessary for performing our audit.
We believe that the audit evidence we have obtained
is sufcient and appropriate to provide a basis for our
opinion.
Key audit matters
Key audit matters are those matters that, in our
professional judgment, were of most signicance in
our audit of the consolidated accounts of the current
period. These matters were addressed in the context
of our audit of the consolidated accounts as a whole,
and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Key audit matter 1: Availability of nancing
resources and compliance with covenants
Description of the Key Audit Matter
The subsidiaries of the Group have signicant non-
current and current nancial debts. The terms and
con ditions of the related nancing agreements often
167
include debt covenants that are to be complied with at
each balance sheet date. Any breach in such debt
covenants could result in its lenders exercising the right
to claim early repayment of certain non-current and/or
current nancial debts. For these reasons, we consi -
dered the availability of nancing resources and failure
to comply with covenants as most signicant to our
Reference is made to Note 5: Signicant accounting
policies: Financial instruments and Note 26: Debt.
How our Audit addressed the Key Audit Matter
Our testing included, amongst others, an
understanding of the nancing agreements and the
Group’s procedures and controls in place both to
ensure its compliance with the debt covenants and
to understand the used and unused nancing
resources. We tested the debt covenants related to
the most signicant nancing agreements and
assessed compliance with the terms and conditions
stipulated therein. Furthermore, we evaluated both
the presentation of the nancial debts on the
Consolidated Statement of Financial Position and the
adequacy of the relevant disclosures in the Notes to
the Consolidated Financial Statements.
We found the tested debt covenants to be complied
with and company’s disclosures of nancial debts
appropriate.
Key audit matter 2: contract assets
Description of the Key Audit Matter
We focused on revenue recognition of construction
contracts and its relating contract assets because the
Group substantially generates its revenue from
projects which qualies as construction contracts
under IFRS. The recognition of revenue and the
estimation of the outcome of xed price construction
contracts is complex and requires signicant
management judgement, in particular with respect to
estimation of the cost incurred and the cost to
complete the contracts. For these reasons, we
identied the contract assets from these construction
contracts as most signicant during our audit.
Reference is made to Note 5: Signicant accounting
policies: Revenue and Note 7: Revenue. At December
31, 2021 contract assets amounted to EUR 98 million
How our Audit addressed the Key Audit Matter
Our testing on contract assets included procedures to
gain an understanding of the related process and
controls as well as substantive test procedures related
to the recording of the contract assets, the related
revenues and determination of the stage of
completion of the contracts. Our audit procedures
included considering the appropriateness of the
Group’s revenue recognition accounting policies. We
also included an evaluation of the signicant
judgements made by management based on the
examination of the associated project documentation
and the discussion on the status of projects under
construction with nance and technical staff of the
Group for specic individual transactions/projects. In
addition, in order to evaluate the reliability of
management’s estimates, we performed a rundown of
subsequent costs incurred for closed projects. We also
performed testing over journals posted to revenue to
identify unusual or irregular items that could inuence
contracts and the relating accrued prot included in
this balance.
We found management’s judgements in respect of the
contract assets to be consistent and in line with our
expectations.
Responsibilities of the board of directors for the
preparation of the consolidated accounts
The board of directors is responsible for the
preparation of consolidated accounts that give a true
and fair view in accordance with International
Financial Reporting Standards as adopted by the
European Union and with the legal and regulatory
requirements applicable in Belgium, and for such
internal control as the board of directors determines is
necessary to enable the preparation of consolidated
accounts that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated accounts, the board of
directors is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as
applicable, matters related to going concern and using
the going concern basis of accounting unless the
board of directors either intends to liquidate the
Group or to cease operations, or has no realistic
alternative but to do so.
168
Statutory auditor’s responsibilities for the audit
of the consolidated accounts
Our objectives are to obtain reasonable assurance
about whether the consolidated accounts as a
whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance
with ISAs will always detect a material
misstatement when it exists. Misstatements can
arise from fraud or error and are considered
material if, individually or in the aggregate, they
could reasonably be expected to inuence the
economic decisions of users taken on the basis of
these consolidated accounts.
In performing our audit, we comply with the legal,
regulatory and normative framework applicable to
the audit of the consolidated accounts in Belgium.
A statutory audit does not provide any assurance as
to the Group’s future viability nor as to the
efciency or effectiveness of the board of directors’
current or future business management at Group
level. Our responsibilities in respect of the use of
the going concern basis of accounting by the board
of directors’ are described below.
As part of an audit in accordance with ISAs, we
exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material
misstatement of the consolidated accounts,
whether due to fraud or error, design and
perform audit procedures responsive to those
risks, and obtain audit evidence that is sufcient
and appropriate to provide a basis for our
opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than
for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal
control;
• Obtain an understanding of internal control
relevant to the audit in order to design audit
procedures that are appropriate in the
circumstances, but not for the purpose of
expressing an opinion on the effectiveness of
the Group’s internal control;
• Evaluate the appropriateness of accounting
policies used and the reasonableness of
accounting estimates and related disclosures
made by the board of directors;
• Conclude on the appropriateness of the board
of directors’ use of the going concern basis of
accounting and, based on the audit evidence
obtained, whether a material uncertainty exists
related to events or conditions that may cast
signicant doubt on the Group’s ability to
continue as a going concern. If we conclude
that a material uncertainty exists, we are
required to draw attention in our statutory
auditor’s report to the related disclosures in the
consolidated accounts or, if such disclosures are
inadequate, to modify our opinion. Our
conclusions are based on the audit evidence
obtained up to the date of our statutory
auditor’s report. However, future events or
conditions may cause the Group to cease to
continue as a going concern;
• Evaluate the overall presentation, structure and
content of the consolidated accounts, including
the disclosures, and whether the consolidated
accounts represent the underlying transactions
and events in a manner that achieves fair
presentation;
• Obtain sufcient and appropriate audit
evidence regarding the nancial information of
the entities or business activities within the
Group to express an opinion on the
consolidated nancial statements. We are
responsible for the direction, supervision and
performance of the Group audit. We remain
solely responsible for our audit opinion.
We communicate with the audit committee
regarding, among other matters, the planned scope
and timing of the audit and signicant audit
ndings, including any signicant deciencies in
internal control that we identify during our audit.
We also provide the audit committee with a
statement that we have complied with relevant
ethical requirements regarding independence, and
to communicate with them all relationships and
other matters that may reasonably be thought to
bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the audit
committee, we determine those matters that were
of most signicance in the audit of the consolidated
accounts of the current period and are therefore the
key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes
public disclosure about the matter.
Other legal and regulatory
requirements
Responsibilities of the board of directors
The board of directors is responsible for the
preparation and the content of the directors’ report
on the consolidated accounts and the other
information included in the annual report on the
consolidated accounts.
169
Statutory auditor’s responsibilities
In the context of our engagement and in
accordance with the Belgian standard which is
complementary to the International Standards on
Auditing (ISAs) as applicable in Belgium, our
responsibility is to verify, in all material respects, the
directors’ report on the consolidated accounts and
the other information included in the annual report
on the consolidated accounts and to report on
these matters.
Aspects related to the directors’ report on the
consolidated accounts and to the other information
included in the annual report on the consolidated
accounts
In our opinion, after having performed specic
procedures in relation to the directors’ report on the
consolidated accounts, this directors’ report is
consistent with the consolidated accounts for the
year under audit and is prepared in accordance with
article 3:32 of the Companies' and Associations'
Code.
In the context of our audit of the consolidated
accounts, we are also responsible for considering, in
particular based on the knowledge acquired
resulting from the audit, whether the directors’
report on the consolidated accounts and the other
information included in the annual report on the
consolidated accounts, is materially misstated or
contains information which is inadequately
disclosed or otherwise misleading. In light of the
procedures we have performed, there are no
material misstatements we have to report to you.
The non-nancial information required by virtue of
article 3:32, §2 of the Companies' and Associations'
Code is included in the directors’ report which is
part of the section ‘Non-nancial information’ of the
annual report. The Company has prepared the non-
nancial information, based on the UN’s Sustainable
Development Goals (SDG’s) reporting framework.
However, in accordance with article 3:80, §1, 5° of
the Companies' and Associations' Code, we do not
express an opinion as to whether the non-nancial
information has been prepared in accordance with
the UN’s Sustainable Development Goals (SDG’s)
reporting framework as disclosed in the directors’
report on the consolidated accounts.
Statement related to independence
• Our registered audit rm and our network did
not provide services which are incompatible
with the statutory audit of the consolidated
accounts, and our registered audit rm
remained independent of the Group in the
course of our mandate.
• The fees for additional services which are
compatible with the statutory audit of the
consolidated accounts referred to in article 3:65
of the Companies' and Associations' Code are
correctly disclosed and itemized in the notes to
the consolidated accounts.
European Uniform Electronic Format (ESEF)
We have also veried, in accordance with the draft
standard on the verication of the compliance of
the nancial statements with the European Uniform
Electronic Format (hereinafter “ESEF”), the
compliance of the ESEF format with the regulatory
technical standards established by the European
Delegate Regulation No. 2019/815 of 17 December
2018 (hereinafter: “Delegated Regulation”).
The board of directors is responsible for the
preparation, in accordance with ESEF requirements,
of the consolidated nancial statements in the form
of an electronic le in ESEF format (hereinafter
“digital consolidated nancial statements”)
included in the annual nancial report.
Our responsibility is to obtain sufcient appropriate
evidence to conclude that the format and marking
language of the digital consolidated nancial
statements comply in all material respects with the
ESEF requirements under the Delegated
Regulation.
Based on the work we have performed, we believe
that the format of and marking of information in the
digital consolidated nancial statements included in
the annual nancial report of Cenergy Holdings SA
per 31 December 2021 comply in all material
respects with the ESEF requirements under the
Delegated Regulation.
Other statements
• This report is consistent with the additional
report to the audit committee referred to in
article 11 of the Regulation (EU) N° 537/2014.
Diegem, 8 April 2022
The statutory auditor
PwC Reviseurs d'Entreprises SRL / PwC
Bedrijfsrevisoren BV
Represented by
Marc Daelman
Réviseur d’Entreprises / Bedrijfsrevisor
170
Statement on the true and fair view of the
consolidated nancial statements and the fair
overview of the management.
In accordance with the article 12, §2, 3° of the Royal
Decree of 14 November 2007, the members of the
Executive Management, (i.e. Dimitrios
Kyriakopoulos, Alexios Alexiou and Alexandros
Benos) declare that, on behalf and for the account
of the Company, to the best of their knowledge:
a) the consolidated nancial statements for the
year ended 31 December 2021 which have been
prepared in accordance with the International
Financial Reporting Standards as adopted by
the European Union, give a true and fair view of
the Equity, Financial position and Financial
Performance of the Company, and the entities
included in the consolidation as a whole,
b) the management report on the consolidated
nancial statements includes a fair overview of
the development and performance of the
business and the position of the Company, and
the entities included in the consolidation,
together with the description of the main risks
and uncertainties with which they are
confronted.
Declaration of responsible persons
171
Condensed Statutory Financial Statements
Condensed Statutory Balance Sheet
As at 31 December
Amounts in EUR thousand 2021 2020
Non- current assets 175,807 175,940
Start-up costs 17 189
Tangible xed assets 0 1
Financial assets 175,789 175,750
Current assets 1,798 5,127
Current receivables 508 4,403
Cash and cash equivalents 1,215 652
Accruals and deferred income 75 71
Total assets 177,605 181,067
Equity 176,447 177,646
Capital 117,892 117,892
Share premium account 59,591 59,591
Other reserves 8,575 8,575
Accumulated prots (losses) -9,612 -8,412
Liabilities 1,158 3,420
Current payables 871 3,175
Accrued charges and deferred income 287 245
Total equity and liabilities 177,605 181,067
In accordance the BCCA (Articles 3:17 and 3:36),
the Company’s annual accounts are presented
hereafter in a condensed version, which does not
include all the notes required by law or the
Statutory Auditor’s report. The full version of the
Company’s annual accounts that shall be deposited
with the National Bank of Belgium, is available on
the Company’s website and can be obtained free of
charge upon request.
The statutory Auditor’s report on the annual
accounts was unqualied.
172
Condensed Statutory Income Statement
For the year ended 31 December
Amounts in EUR thousand 2021 2020
Sales and services 29 20
Operating charges -2,115 -2,074
Services and miscellaneous goods -1,376 -1,299
Remuneration, social security and pensions -495 -436
Depreciation and amounts written off on start-up costs,
intangible and tangible xed assets -172 -176
Other operating charges -71 -64
Non recurring operating charges -1 -100
Operating prot (loss) -2,086 -2,054
Financial income 895 836
Income from nancial assets 635 826
Other Financial Income 244 0
Non-recurring nancial income 15 10
Financial expenses -8 -4
Other nancial expenses -4 -1
Non-recurring nancial expenses -3 -4
Prot (loss) for the year before income taxes -1,200 -1,223
Income taxes on the result 0 0
Prot (loss) for the year -1,200 -1,223
173
Alternative Performance Measures
In addition to the results reported in accordance
with International Financial Reporting Standards
(“IFRS”) as adopted by the European Union, this
Annual Report includes information regarding
certain alternative performance measures which are
not prepared in accordance with IFRS (“Alternative
Performance Measures” or “APMs”). The APMs used
in this press release are: Earnings Before Interest
and Tax (EBIT), Adjusted EBIT, Earnings Before
Interest, Tax, Depreciation and Amortisation
(EBITDA), Adjusted EBITDA and Net debt.
Reconciliations to the most directly comparable
IFRS nancial measures are presented below.
We believe these APMs are important supplemental
measures of our operating and nancial
performance and are frequently used by nancial
analysts, investors and other interested parties in
the evaluation of companies in the steel pipes and
cables production, distribution and trade industries.
By providing these measures, along with the
reconciliations included in this appendix, we believe
that investors will have better understanding of our
business, our results of operations and our nancial
position. However, these APMs shall not be
considered as an alternative to the IFRS measures.
These APMs are also key performance metrics on
which Cenergy Holdings prepares, monitors and
assesses its annual budgets and long-range (5 year)
plans. However, it must be noted that adjusted
items should not be considered as non-operating or
non-recurring.
EBIT, Adjusted EBIT, EBITDA and Adjusted EBITDA
have limitations as analytical tools, and investors
should not consider it in isolation, or as a substitute
for analysis of the operating results as reported
under IFRS and may not be comparable to similarly
titled measures of other companies.
APM denitions remained unmodied compared to
those applied as at 31 December 2020. The
denitions of APMs are as follows:
EBIT is dened as result of the period (earnings
after tax) before:
• income taxes,
• net nance costs
EBITDA is dened as result of the period (earnings
after tax) before:
• income taxes,
• net nance costs
• depreciation and amortisation
a-EBIT and a-EBITDA are dened as EBIT and
EBITDA, respectively, adjusted to exclude:
• metal price lag,
• impairment / reversal of impairment of xed,
intangible assets and investment property
• impairment / reversal of impairment of
investments
• gains/losses from sales of xed assets,
intangible assets, investment property and
investments,
• exceptional litigation fees and nes and,
• other exceptional or unusual items
Net Debt is dened as the total of:
• Long term loans & borrowings and lease
liabilities,
• Short term loans & borrowings and lease
liabilities,
Less:
• Cash and cash equivalents
174
Reconciliation tables:
EBIT and EBITDA:
Cables Steel Pipes Other activities Total
Amounts in EUR thousand 2021 2020* 2021 2020* 2021 2020 2021 2020*
Prot/(Loss) before tax 44,886 35,247 (13,940) 1,341 (433) (983) 30,513 35,604
(as reported in Consolidated
Statement of Prot or Loss)
Adjustments for:
Net nance costs 21,539 21,034 7,478 10,603 (32) 3 28,985 31,640
EBIT 66,425 56,281 (6,462) 11,944 (465) (981) 59,498 67,244
Add back:
Depreciation & Amortisation 16,849 15,225 8,850 8,844 6 2 25,705 24,071
EBITDA 83,273 71,506 2,388 20,788 (459) (978) 85,203 91,315
* The comparative information is restated due to retroactive application of the IFRIC Agenda Decision `Attributing Benet to
Periods of Service'.
175
a-EBIT and a-EBITDA:
Cables Steel pipes Other activities Total
Amounts in EUR thousand 2021 2020* 2021 2020* 2021 2020 2021 2020*
EBIT 66,425 56,281 (6,462) 11,944 (465) (981) 59,498 67,244
Adjustments for:
Metal price lag
(1)
4,915 8,086 - - - - 4,915 8,086
Reorganization costs - - 978 447 - - 978 447
Exceptional legal fees - - - - - 315 - 315
Incremental coronavirus 445 1,370 (234) 467 - - 211 1,837
costs / (reliefs)
(2)
Provision for antidumping - - 12,842 - - - 12,842 -
duties
(Gains)/ Loss from (8) (6) - - - - (8) (6)
sales of xed assets
Adjusted EBIT 71,777 65,730 7,124 12,858 (465) (665) 78,435 77,923
Add back:
Depreciation & Amortisation 16,849 15,225 8,850 8,844 6 2 25,705 24,071
Adjusted EBITDA 88,625 80,956 15,974 21,702 (459) (663) 104,140 101,995
Notes:
(1)Metal price lag is the P&L effect resulting from uctuations in the market prices of the underlying commodity metals (ferrous
and non-ferrous) which Cenergy Holdings’ subsidiaries use as raw materials in their end-product production processes, Metal
price lag exists due to:
(i)the period of time between the pricing of purchases of metal, holding and processing the metal, and the pricing of the sale
of nished inventory to customers,
(ii) the effect of the inventory opening balance (which in turn is affected by metal prices of previous periods) on the amount
reported as Cost of Sales, due to the costing method used (e.g. weighted average),
(iii) certain customer contracts containing xed forward price commitments which result in exposure to changes in metal
prices for the period of time between when our sales price xes and the sale actually occurs,
Subsidiaries in cables segment use back to back matching of purchases and sales, or derivative instruments in order to mini-
mise the effect of the Metal Price Lag on their results, However, there will be always some impact (positive or negative) in
the P&L, since in Cables segment part of the inventory is treated as xed asset and not hedged and in the Steel Pipes seg-
ment no commodities hedging is possible.
(2) Incremental coronavirus costs concern all incremental costs incurred due to the coronavirus outbreak. Such costs are directly
attributable to the coronavirus outbreak and are incremental to costs incurred prior to the outbreak and not expected to recur
once the crisis has subsided and operations return to normal, while they are clearly separable from normal operations. Any re-
liefs provided by local legislation as a result of measures taken due to the coronavirus pandemic is deducted from the incre-
mental coronavirus costs.
* The comparative information is restated due to retroactive application of the IFRIC Agenda Decision ‘Attributing Benet to
Periods of Service’.
176
Net debt:
Cables Steel pipes Other activities Total
Amounts in EUR thousand 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec
2021 2020 2021 2020 2021 2020 2021 2020
Loans and borrowings 134,026 133,295 42,979 44,989 16 21 177,020 178,306
(incl. Lease liabilities) -
Long term
Loans and borrowings 150,718 168,428 66,192 64,911 6 6 216,915 233,344
(incl. Lease liabilities) -
Short term
Cash and cash equivalents (87,342) (59,694) (41,005) (20,689) (1,259) (652) (129,606) (81,035)
Net debt 197,401 242,029 68,166 89,211 (1,238) (625) 264,329 330,615
177
Allocation of turnover, Capex and Opex to one
environmental objective
Cenergy Holdings is particularly concerned by the
objective of climate change mitigation. It was
determined that activities 3.1, 3.8 & 4.9 should be
allocated to climate change mitigation, as this objective
is more pertinent to Cenergy Holdings’ activities and the
Taxonomy does not allow double counting.
Relevant judgement on the Taxonomy-eligibility of our
activities
Activity 3.1 - Manufacture of renewable energy
technologies
The description of activity 3.1 in Annex I to the Climate
Delegated Act does not contain a clear denition of the
term "renewable energy technologies" and is thus open
to interpretation. In the absence of a “renewable energy
technologies” denition and in the spirit of the EU
Taxonomy, we dened this term by referring to the
technical screening criteria for substantial contribution
to climate change mitigation. We thus included revenue
generated from production & installation of cable
systems used in Renewable Energy Sources projects
(mainly wind and solar), which enable the diffusion of
renewable energy in the electricity network.
Activity 3.8 - Secondary aluminium production
The description of activity 3.8 in Annex I to the Climate
Delegated Act does not contain a clear denition of the
term "secondary aluminium" and is thus open to
interpretation. In the absence of a “secondary aluminium”
denition and in the spirit of the EU Taxonomy, we
dened this term by referring to the technical screening
criteria for substantial contribution to climate change
mitigation. We thus included revenue generated from
materials produced as a result of aluminium remelting
process, which are further processed to a different
production stage of cables products.
Activity 4.9 - Construction and Installation services of
electricity distribution networks
According to the description of activity 4.9 in Annex I to
the Climate Delegated Act an economic activity should
comply with at least one of the following technical
screening criteria:
a. the system is the interconnected European system,
i.e. the interconnected control areas of Member
States, Norway, Switzerland and the United
Kingdom, and its subordinated systems;
b. more than 67% of newly enabled generation
capacity in the system is below the generation
threshold value of 100 gCO2e/kWh measured on a
life cycle basis in accordance with electricity
generation criteria, over a rolling ve-year period;
c. the average system grid emissions factor, calculated
as the total annual emissions from power generation
connected to the system, divided by the total annual
net electricity production in that system, is below
the threshold value of 100 gCO2e/kWh measured
on a life cycle basis in accordance with electricity
generation criteria, over a rolling ve-year period;
According to our assessment the cables segment
revenue generated from projects relating to the
interconnection of islands complies with the above
mentioned technical criteria a.
Taxonomy-non-eligible economic activities
The activities that have not been identied as Taxonomy
eligible, and which therefore comprise the Taxonomy
non-eligible percentage, are currently not included
among the sectors and activities included in the EU
Taxonomy; however, they could be included in the
activities envisaged in the additional four environmental
objectives identied in the Regulation that are currently
being standardised.
Taxonomy-eligible Capex and Opex and individually
Taxonomy-eligible Capex and Opex
With regard to Capex and Opex related to our
Taxonomy-eligible economic activities and Capex/Opex
related to purchases and measures that we consider as
individually Taxonomy-eligible, we refer to the
explanations in the sections “Capex KPI” and “Opex KPI”
in the description of our accounting policies.
EU Taxonomy Reporting Principles
178
KPIs and accounting policies
Reporting requirements include the eligibility
percentage of the Turnover, CAPEX and OPEX for the
companies that are already included in the Sustainable
Finance E.U. law. Article 10(1) of the Disclosures
Delegated Act explicitly requires that in the rst year of
implementation, non-nancial undertakings should
disclose "the proportion of Taxonomy-eligible and
Taxonomy non-eligible economic activities in their total
turnover, capital and operating expenditure".
Cenergy Holdings’ cables segment produces cables
products that are used in various applications including
renewable technologies manufacturing (3.1), as well as
installation projects for transmission and distribution of
electricity (4.9).
Moreover, Cenergy Holdings engages in secondary
aluminium production (3.8) through its subsidiary
Fulgor SA. Materials produced as a result of aluminium
remelting process are further processed to a different
production stage of cables products.
Turnover KPI
Denition
The proportion of Taxonomy-eligible economic activities
has been calculated as the part of turnover derived from
the economic activities presented below (numerator):
• 3.1 Manufacture of renewable energy technologies
• 4.9 Transmission and distribution of electricity
• 3.8 Secondary aluminium production
divided by the turnover of Cables segment
(denominator) for nancial year 2021.
For further details on our turnover accounting policy
please refer to page 97 of our Annual Report 2021.
Reconciliation
Turnover of Cables segment can be reconciled to our
consolidated nancial statements, in “Operating
segments” section, on page 115 of our Annual Report
2021.
Capex KPI
Denition
The Capex KPI is dened as Taxonomy-eligible Capex
(numerator) divided by Cables segment Capex
(denominator).
The numerator consists of Taxonomy-eligible Capex
related to assets or processes that are associated with
the economic activities presented below (numerator):
• 3.1 Manufacture of renewable energy technologies
• 4.9 Transmission and distribution of electricity
• 3.8 Secondary aluminium production
We consider that assets and processes are associated
with Taxonomy-eligible economic activities when they
are essential components necessary to execute an
economic activity. Consequently, all Capex invested into
machinery for the above mentioned activities have been
included in the numerator of the Capex KPI.
In particular, secondary aluminium Capex includes
Capex related to the production of aluminium from
secondary raw materials (including scrap and metal-
bearing materials) and the remelting and alloying
processes.
The denominator consists of Cables segment additions
to tangible and intangible xed assets during nancial
year 2021, before depreciation, amortisation and any re-
measurements, including those resulting from
revaluations and impairments. It includes acquisitions of
tangible xed assets (IAS 16), intangible xed assets
(IAS 38) and investment properties (IAS 40). Additions
resulting from business combinations are also included.
Goodwill is not included in Capex, as it is not dened as
an intangible asset in accordance with IAS 38. For
further details on our accounting policies regarding
Capex please refer to page 102 of our Annual Report
2021.
Reconciliation
Capex of Cables segment can be reconciled to our
consolidated nancial statements, in “Operating
segments” section, on page 115 of our Annual Report
2021.
Opex KPI
Denition
The Opex KPI is dened as Taxonomy-eligible Opex
(numerator) divided by total Cables segment Opex
(denominator).
The numerator consists of Taxonomy-eligible Opex
related to assets or processes that are associated with
the economic activities presented below (numerator):
• 3.1 Manufacture of renewable energy technologies
• 4.9 Transmission and distribution of electricity
• 3.8 Secondary aluminium production
179
Total Opex (denominator) consists of direct non-
capitalised costs that relate to research and
development, building renovation measures, short-term
lease, maintenance and repair, and any other direct
expenditures relating to the day-to-day servicing of
assets of property, plant and equipment. This includes:
• Research and development expenditure recognised
as an expense during the reporting period. Τhis
includes all non-capitalised expenditure that is
directly attributable to research or development
activities.
• The volume of non-capitalised leases was
determined in accordance with IFRS 16 and includes
expenses for short-term leases and low-value leases.
• Maintenance and repair and other direct
expenditures relating to the day-to-day servicing of
assets of property, plant and equipment were
determined based on the maintenance and repair
costs allocated to our internal cost centers. The
related cost items constitute a portion of “Cost of
sales” line item of our Cables segment income
statement (please refer to “Operating segments”
section, on page 115 of our Annual Report 2021).
This does not include expenditures relating to the day-
to-day operation of PP&E such as raw materials, cost of
employees operating the machine, electricity or uids
that are necessary to operate PP&E.
Direct costs for training and other human resources
adaptation needs are excluded from the denominator
and the numerator. This is because Annex I to Art. 8
Delegated Act lists these costs only for the numerator
which does not allow a mathematically meaningful
calculation of the Opex KPI.
This section is included for the rst time in the section
“Non-Financial Reporting”, pursuant to Regulation (EU)
2020/852. The information contained follows the
requirements of the Regulation. Cenergy Holdings will
follow the disclosure developments and will adapt the
approach accordingly.
180
Information to our Shareholders
Cenergy Holdings is a Belgian listed subsidiary of
Viohalco S.A. (79.78% of voting rights).
On 14 December 2016, Cenergy Holdings S.A.
announced the completion of the cross-border
merger by absorption of Corinth Pipeworks
Holdings S.A. and Hellenic Cables S.A. Holdings
Société Anonyme by Cenergy Holdings S.A. On 21
December 2016, the trading of Cenergy Holdings’
shares commenced on Euronext Brussels and on
the Athens Stock Exchange (Athex).
During 2021, Cenergy Holdings, established C-
Energy Americas Co., a wholly owned subsidiary in
the US. On January 6, 2022 the subsidiary C-Energy
Americas Co. was renamed to Hellenic Cables
Americas Co.
No other changes in Group structure took place
during 2021 (see also note 31 of the Consolidated
Financial Statements).
Market data
The table below sets forth, for the periods
indicated, the maximum and minimum year-end
closing prices and the end of the year closing prices
of Cenergy Holdings on Euronext Brussels and
Athens Stock Exchange (Athex).
Euronext Brussels and
Market Athens Stock Exchange
Ticker CENER
ISIN code BE 0974303357
Share price
EURONEXT BRUSSELS in EUR 2021 2020
At the end of the year 3.10 1.62
Maximum 3.17 2.25
Minimum 1.47 0.61
Dividends 0.00 0.00
Gross annual return in % 91.12 22.88
Share price
ATHENS EXCHANGE in EUR 2021 2020
At the end of the year 3.10 1.73
Maximum 3.18 1.94
Minimum 1.55 0.61
Dividends 0.00 0.00
Gross annual return in % 79.19 27.39
Investor relations contact details
Soa Zairi
Chief Investor Relations Ofcer
Email: ir@cenergyholdings.com,
szairi@cenergyholdings.com
Cenergy Holdings S.A. Cenergy Holdings S.A. –
Greek Branch
30, Marnix Avenue 33, Amarousiou-
Halandriou Str.
1000 Brussels 151 25 Maroussi
Belgium Greece
(+32) 2 224 0960 (+30) 210 6787 111,
(+30) 210 6787 773
Financial calendar
Publication / Event Date
2022Q1 trading update 19 May 2022
Ordinary General Meeting 2022 31 May 2022
Half Yearly 2022 results 21 September 2022
181
The following explanations are intended to assist
the general reader in understanding certain terms
used in this Annual Report. The denitions set out
below apply throughout the annual report, unless
the context requires otherwise.
ABB ABB is a global technology company in
power and automation.
Aramco Saudi Aramco is the state-owned oil
company of the Kingdom of Saudi Arabia. It
is the world’s top exporter of crude oil and
natural gas liquids.
BCCA the Belgian Code of Companies and
Associations
Belgian the applicable accounting framework in
GAAP Belgium
BG BG Group is an international exploration and
production and LNG company.
Board of the Board of Directors of the Company from
Directors time to time appointed in accordance with
or Board the Articles of Association
BP British Petroleum (BP) is one of the world's
leading integrated oil and gas companies.
Cheniere Houston-based energy company primarily
Energy engaged in LNG-related businesses
Chevron Chevron is one of the world's leading
integrated energy companies.
Cross- the cross-border merger through absorption
Border of Corinth Pipeworks Holdings S.A. and
Merger Hellenic Cables S.A. Holdings Société
Anonyme (both formally listed in Greece),
by the Company in accordance with articles
772/1 and following of the BCC and the
Greek law 3777/2009 in conjunction with
articles 68 §2 and 69 to 77a of the Greek
Codied Law 2190/1920
DCP is an energy company that sits squarely
Midstream between a growing resource base and
expanding petrochemical and energy
markets.
Denbury Denbury Resources Inc. is an independent
oil and natural gas company
EBIT Operating result as reported in the Prot or
loss statement plus share of prot/(loss) of
equity accounted investees
EBITDA EBIT plus depreciation and amortisation
EDF EDF Energy, the UK's largest producer of
low-carbon electricity
Enbridge Enbridge, Inc. is an energy delivery
company based in Calgary, Canada which
operates the longest crude oil and liquid
hydrocarbons transportation system in the
world. As a distributor of energy, it owns
and operates Canada's largest natural gas
distribution network.
Energy Energy Transfer is a Texas-based company
Transfer and one of the largest and most diversied
investment grade master limited
partnerships in the United States. It
operates approx. 71,000 miles of natural
gas, natural gas liquids (NGLs), rened
products, and crude oil pipelines today, and
remains dedicated to providing exceptional
service to its customers and attractive
returns to its investors.
EPCO Energy Planners Company is an energy
management and consultation rm. EPCO
works with commercial, industrial, and non-
prot clientele to aid them in better
understanding how and where energy is
consumed in their facility.
ERW Electric Resistance Welded
FSMA Financial Services and Market Authority,
which succeeded the Belgian Banking,
Finance and Insurance Commission as the
nancial regulatory agency for Belgium on 1
April 2011
Greek DEPA is the public natural gas supply
Public corporation of Greece
Natural Gas
Corporation
(DEPA)
GRI Global Reporting Initiative
Gross the gross annual return is calculated on the
annual share price it equals to (change in price
return from January 1 to 31 December/share price
on January)
HSAW Helical Submerged Arc Welding
IAS International Accounting Standards
IFRS International Financing Reporting
Standards, as adopted by the EU
IPTO S.A. Independent Hellenic Transmission Operator
LSAW Longitudinal Submerged Arc Welded mill for
the production of high-strength offshore and
onshore energy pipes
Glossary
182
National United Kingdom-based utilities company
Grid
OGC a leading organisation in the Sultanate’s Oil
and Gas sector and managing Oman’s major
natural gas distribution network
OMV OMV, one of the largest listed industrial
companies in Austria, produces and markets
oil and gas, as well as chemical solutions in a
responsible way and develops innovative
solutions for a circular economy.
PDO Petroleum Development Oman is the major
exploration and production company in the
Sultanate
Pioneer Pioneer is one of the largest full-service
Pipe Inc construction, maintenance, and fabrication
companies in the Midwest.
Plains All Plains All American Pipeline is one of the
American largest and most admired midstream energy
companies in North America. Plains All
American Pipeline (Plains) is a publicly-
traded master limited partnership that owns
and operates midstream energy infrastructure
and provides logistics services for crude oil,
natural gas liquids (NGL), natural gas, and
rened products.
Shell Shell Global is a global group of energy and
petrochemical companies
Snam an Italian natural gas infrastructure company.
The utility mainly operates in Italy and is one
of Europe’s leading regulated gas utilities
Socar The State Oil Company of the Azerbaijan
Republic (SOCAR) is involved in exploring oil
and gas elds, producing, processing, and
transporting oil, gas, and gas condensate,
marketing petroleum and petrochemical
products in domestic and international
markets, and supplying natural gas to
industry and the public in Azerbaijan.
Spartan Spartan Energy Corp. is an oil and gas
company based in Calgary, Alberta.
Spectra Spectra Energy Corp is a S&P500 company
Energy headquartered in Houston Texas, that
operates in transmission and storage,
distribution, and gathering and processing of
natural gas.
STEG Tunisian Company of Electricity and Gas is a
Tunisian public company, established in 1962,
with a mission to produce and distribute
electricity and natural gas on the Tunisian
territory.
Subsea Subsea7 is a world-leading seabed-to-surface
engineering, construction and services
contractor the offshore energy industry.
Tideway Tideway is a subsidiary of the Belgian
dredging, environmental and marine
engineering group DEME, an international
market leader for complex marine
engineering works.
TIGF Transport et Infrastructures Gaz France offers
and develops natural gas transport and
storage solutions for the European market
Transpa- the law of 2 May 2007 on the disclosure of
rency signicant shareholdings in issuers whose
Law securities are admitted to trading on a
regulated market
Van Oord Van Oord is a Dutch family-owned company
with 150 years of experience as an
international marine contractor.
The annual report, full versions of the statutory and
consolidated annual accounts, as well as the audit
reports regarding said annual accounts are available on
the website (www.cenergyholdings.com).
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Belgium tel: Greece tel:
(+32) 2 224 0960 (+30) 210 6787 111
www.cenergyholdings.com