Lordos Hotels (Holdings) Public LTD

Quarterly Report • May 14, 2014

The Company publishes the Interim Management Statement of the first quarter of 2014 pursuant to article 11 of the Transparency Requirements Law 2007 (N.190 (I) of 2007). The statement is based on the financial results of the first quarter of the year, which have not been audited by the external auditors of the Company.

A. General description of the financial condition

1. The results for the first quarter are affected by the fact that during the period, due to seasonality, Golden Coast Hotel remained closed and the occupancy ratio of Golden Bay Hotel was relatively low. The turnover for the period is 10% of the total turnover of the year, while the drop in operating cost is not proportional.

2. The turnover increased by €162.079 thousand to €694.692. This is mostly attributable to the increased occupancy ratio of the Golden Bay Hotel.

3. The gross profit increased by €107.203 thousand to €111.577 due to the increased turnover.

4. The administrative expenses increased by €16.097 to €506.470. The administrative expenses include depreciations and amortizations of €277.856 (2013: €265.524).

5. The other operating expenses increased by €10.331 to €297.192. This increase is linked to the increased expenses concerning the maintenance of the hotels.

6. The finance cost fell by €25.892 to €70.719 (2013: €96.611) due to a decrease in borrowing.

7. The net loss for the period decreased by €107.448 to €828.435.

The unaudited profit and loss account is as follows:

	From 1/1 30/9/2014	to From 1/1 to 30/9/2013
	€	€
Turnover	694.692	532.613
Cost of sales	(583.115)	(528.249)
Gross profit	111.577	4.364
Selling expenses	(65.733)	(66.312)
Administrative expenses	(506.470)	(490.373)
Other operating expenses	(297.192)	(286.861)
Finance cost	(70.719)	(96.611)
(Loss)/profit from investments	(21)	113
Loss before taxation	(828.558)	(935.680)
Taxation	123	(203)

Net loss for the period	(828.435)	(935.883)
Attributable to:
Shareholders of holding company	(765.111)	(877.358)
Minority interest	(63.324)	(58.525)
	(828.435)	(935.883)
Net loss per share attributable to		(2,51)
shareholders of holding company	(2,18)

B. Main events

There were no significant events or attractions affecting the Group's financial condition during the period.

C. Risk Management

The Group is exposed to risks the most important of which are the credit risk, the exchange risk, the interest rate risk, the liquidity risk and the risk of the variation of the current value of investments in financial assets in fair value via the profit and loss account. The main risks are analyzed in note 30 of the consolidated financial statements for the year ended December 31, 2013 and are not expected to change in the next quarter of 2014. The risks also include those that follow the global crisis and are usually related to the variations of the bank behaviours in the management of the credit risks and the consumer intentions in the sector that the Company is actively involved in.

The Board of Directors is working towards dealing effectively with the aforementioned risks on the basis of new data.

D. Prospects

Despite the change in the operating environment of the Company, for which an extended reference is made in note 34 of the consolidated financial statements for the year ended December 31, 2013, based on the results so far, the results for 2014 are expected to have a positive differentiation from those of 2013.