Direct economic value generated and distributed in 2017
The data presented here are reported based on GRI recommendations, consequently may differ from those published in the financial statements of the annual reports.
Direct economic value generated and distributed in previous years can be found in our Annual Report
Revenues data (net sales plus revenues from financial investments and sales of assets) includes:
- Net sales (without VAT) equal gross sales from products and services minus returns, discounts, and allowances
- Revenue from financial investments includes cash received as interest on financial loans, as dividends from shareholdings, as royalties, and as direct income generated from assets (e.g., property rental)
- Revenues from sale of assets include physical assets (property, infrastructure, equipment) and intangibles (e.g., intellectual property rights, designs, and brand names)
- Gain on sales of subsidiaries
- Other operating income
Operating costs data (Payments to suppliers, non-strategic investments, royalties and facilitation payments) includes:
- Material type expenditure (material cost, material type services, cost of goods sold, inter-mediated services)
- Other operating expenses without tax type expenditures (mining royalty, taxes and contributions, crisis tax, penalty, environmental levy)
- Change in inventories of finished goods and work in progress;
- Work performed by the enterprise and capitalized.
Employee wages and benefits data (total monetary outflows for employees):
- Wages and salaries
- Social security
- Other personnel expenses
- Pension costs and post-employment benefits
- Expense of share-based payments
Payments to capital investors (all financial payments made to the providers of the organization’s capital) include:
- Dividends to all shareholders
- Interest payments made to providers of loans
- Other foreign exchange loss
- Foreign exchange loss on borrowings
Payments to governments (all company taxes - corporate, income, property, etc. - and related penalties paid at the international, national and local level.) include:
- Corporate tax (excluded deferred income tax)
- Crisis tax (extra tax for Hungarian energy suppliers)
- Mining royalty
- Taxes and contributions
- Environmental levy
Economic value retained (profit for the future growth) includes:
- Depreciation, depletion, amortisation and impairment;
- Equity holders of parent;
- Others, the balance of those incomes and expenses that are not part of the above mentioned items;
(VAT and excise duty are not included.)
Linking Shareholder and Stakeholder Value
Although our ultimate goal is to serve our shareholders's interest, we also pay close attention to other stakeholders to create shared value.
Today it is becoming more and more important to investors that companies’ environmental and social performance, and not just financial results, also be outstanding. Therefore, apart from being committed to sustainable development, it is vitally important that we integrate sustainability principles into MOL’s business strategy and develop an action plan to ensure that happens. Results should be monitored and the maximum amount of information provided to potential investors and shareholders to support them in their decision-making and to demonstrate that MOL Group is a good choice, not only based on its financial success, but also on its environmental and social performance. Thus we strive to be perceived as an accessible and trustworthy company that conducts its operations by always taking the triple bottom line of sustainable development into account. Our Investor Relations team ensures fruitful dialogue with the financial markets to assure the reliability and transparency of our activities to our current and potential shareholders.
MOL as one of the top 10% best performing companies in terms of sustainability is the only central-east European company among those 2500 corporations analysed. The independent assessment reflects the three dimensions of sustainability: the long term economic, social and environmental performance. MOL scored outstanding values in all three aspects.
The corporate sustainability assessment of SAM is a tool that highlights the probable risks and opportunities in light of the global sustainability trends. Business activities are evaluated by balancing the long term economic, social and environmental impacts. The Yearbook contains the best companies of 58 different industry sectors.