Cyprus Trading Corporation Public LTD

Earnings Release • Aug 29, 2014

CYPRUS TRADING CORPORATION PLC

Preliminary Unaudited Condensed Consolidated Statement of Comprehensive Income for the SIX MONTHS ended on 30 June 2014

TURNOVER €141.000.000

NET PROFIT 40.000.000

	UNAUDITED RESULTS FOR THE FIRST SIX MONTHS OF 2014		AUDITED RESULTS FOR THE YEAR
	2014 $\epsilon$ '000	2013 $\epsilon$ '000	2013 $\epsilon$ '000
Turnover	141.241	144.142	313158
Gross Profit and Other Income	44.186	45.483	100.944
Profit from the disposal of investments	40.123	15.713	15.713
Net Profit/(Loss) of the Group after tax	39.961	9.254	(14.066)
Attributable to:
Shareholders	36.509	2.470	(18.006)
Non-Controlling Interest	3.452	6.784	3.939
Basic and fully diluted earnings/(losses) per share (cents)	39,17	9,92	(18, 27)

NOTES:

1. The Preliminary, Unaudited, Condensed, Consolidated Statement of Comprehensive Income constitutes an extract from the Consolidated Financial Statements of Cyprus Trading Corporation Plc (CTC) for the period ended 30 June 2014.

The Preliminary Unaudited Condensed Consolidated Statement of Comprehensive Income incorporates the results of the subsidiary companies:

• Ermes Department Stores Plc, subsidiaries and joint ventures $\bullet$
• Woolworth (Cyprus) Properties Plc and subsidiaries $\bullet$
• Argosy Trading Company Ltd $\bullet$
• Cassandra Trading Ltd
• CTC Automotive Ltd
• Artview Co. Ltd
• Amaracos Holding (CTC+PG) Ltd $\bullet$
• HOB House of Beauty Ltd $\bullet$

and the results of the associate company:

· Akinita Lakkos Mikelli Ltd

Cyprus Trading Corporation PLC is also a shareholder in Hermes Airports Ltd that has developed and is administrating the International Airports of Cyprus, in Larnaca and Pafos, until the 11th of May 2031. CTC is being represented at the Board of Directors, whereas the Executive Chairman of the Group, Mr. Nicolas K. Shacolas is Honorary Life Chairman of Hermes. In the above consolidated Profit and Loss Account, Hermes Airports results are not included in the reported results.

• 1. The Preliminary, Unaudited, Condensed, Consolidated Statement of Comprehensive Income for the period ended 30 June 2014, has not been audited by the external auditors of the Company, but has been prepared with the same accounting principles that have been applied for the preparation of the annual and interim financial statements (according to the provisions of International Accounting Standard No. 34), and according to the Transparency Requirements Law, taking into account the circulars of the Securities and Exchange Commission (SEC) and Cyprus Stock Exchange (CSE), and has been approved by the Board of Directors of the Company. It is noted that the International Financial Reporting Standard 11, "Joint Arrangements" has been adopted since January $1^st$ , 2014 based on which the proportional consolidation of joint ventures is no longer allowed.
• 1. The results of the Group have substantially been affected with Profits amounting to $\epsilon$ 40.123.000 deriving from the sale of the investment of the Group in CTC-ARI (Holdings) Ltd, the company that operates the retail outlets in Larnaca and Paphos international airports, until May 2031, as well as its investment in Cyprus Airports (F&B) Ltd, that operates the Food and Beverage outlets in the Larnaca and Paphos International airports, as already announced earlier this year.
• 1. The turnover of the Group for the SIX MONTHS of 2014 amounted to $\epsilon$ 141.241.000, compared to €144.142.000 in 2013, a decrease of 2,05%.
• 1. Gross Profit and Other Income amounted to $644.186.000$ compared to $645.483.000$ , in 2013, a decrease of 2.86%.
• 1. Following the deduction of operating expenses, depreciation, finance expenses, taxation and including the profit of $\epsilon$ 40.123.000, deriving from the sale of the Group's investments in CTC-ARI (Holdings) Ltd and in Cyprus Airports (F&B) Ltd, the Net Profit after tax for the SIX MONTHS of 2014 reached €39.961.000, compared to a profit of $€9.254.000$ in 2013.
• 1. The per share net book value of the Company's shares, with nominal value of $\epsilon 0.85$ , was $\epsilon 1.80$ on 30 June 2014 (31/12/2013: $\epsilon$ 1,40).
• 1. On 15 July 2014 Ermes Department Stores Plc acquired from Woolworth (Cyprus) Properties Plc 45% of the share capital (45.000.000 shares) of ITTL Trade Tourist and Leisure Park Plc (ITTL) for a consideration of $642.750.000$ (i.e $60.95$ per share) paid in cash. The transaction was executed on a purely commercial basis (at arm's length) after taking into consideration a recent valuation of an independent firm of accountants and was also based on the fair value of the properties of ITTL as these were valued by an independent property valuer on 31 December 2013.

Ermes Group's decision to proceed with this purchase, aims to utilize part of the proceeds received from the recent sale of its investment in CTC-ARI (Holdings) Ltd and its replacement with a safe high quality investment with good prospects, securing at the same time its rights at the Mall of Cyprus, owned by ITTL, as Ermes operates in The Mall of Cyprus with several of its business outlets such as Debenhams, Next and others, with total area of about 7.300 sq.m, being 30% of the commercial areas of The Mall of Cyprus.

Woolworth Group, with the proceeds of the sale of the shares, will be in a position to proceed with its investment plan, being the extension of its commercial centers, The Mall of Cyprus, The Mall of Engomi, and Korivos Commercial Center, with the extension and addition of new commercial areas and outlets, new café, restaurants and recreational areas, as well as areas for cultural and art events. At the same time, it will proceed with the completion of its planning of the Limni Bay resort, having secured all the necessary planning permissions, and finally to reduce its obligations and further improve its balance sheet.

• 1. The Board of Directors and the Management note that despite some general indications of stabilization, the overall situation in the economy remains difficult and uncertain. The Board of Directors and the Management continue to carefully monitor the current environment and focus their efforts to further reduce expenditure, minimize credit risk and restructure its operations, so that the Group remains competitive and able to fulfill all of its obligations.
• 1. Copies of the Preliminary, Unaudited, Condensed, Consolidated Profit and Loss Account are available at the Company's Shares Department, Shacolas House, 3rd Floor, tel.: 22740300. In addition it has been posted on the Group's website at www.ctcgroup.com. This report will be published in daily-circulated newspapers.

Cyprus Trading Corporation Plc

Nicosia, 29 August 2014