Cyprus Trading Corporation Public LTD

Earnings Release • Feb 28, 2014

CYPRUS TRADING CORPORATION PLC

Preliminary Unaudited Condensed Consolidated Profit and Loss Account for the year ended 31 December 2013

TURNOVER €362m

	UNAUDITED YEAR	AUDITED RESULTS FOR THE RESULTS FOR THE YEAR
	2013 $\epsilon$ '000	2012 $\epsilon$ '000
Turnover	361.755	407.445
Gross Profit and Other Income	110.796	133.042
Profit from disposal of investment in MTN (Cyprus)	15.713
Net Profit before fair value adjustment of investment and other property	16.034	7.125
Loss from estimated revaluation of investment and other property which does not constitute a cash outflow	(27.925)
Net Profit of the Group after tax	(11.891)	7.125
Attributable to:
Shareholders	(14.008)	4.381
Minority Interest	2.117	2.744
Basic and fully diluted (losses)/earnings per share (cents)	(15, 02)	4,7

The annual results of the Group for 2013 include a loss of $E27.9m$ due to estimated revaluations from independent approved valuers as to the values of investment and other property, which does not constitute a cash outflow, as well as other non-recurring expenses of $\epsilon$ 2.8m, compared to $\epsilon$ 1.8m for the same period last year.

It is worth to note that excluding the revaluation of investment and other property, the Companies of the Group, despite the economic crisis, have increased their profitability and have maintained their ability to generate such revenues so as to be able to meet all their obligations.

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 year ended 31 December 2013.

The Preliminary Unaudited Condensed Statement of Comprehensive Income includes the results of the subsidiary:

• Ermes Department Stores Plc and Subsidiaries $\bullet$
• Woolworth (Cyprus) Properties Plc and Subsidiaries $\bullet$
• Argosy Trading Company Ltd $\bullet$
• Cassandra Trading Ltd $\bullet$
• CTC Automotive Ltd $\ddot{\phantom{a}}$
• Artview Co. Ltd $\bullet$
• Amaracos Holding (CTC+PG) Ltd $\bullet$
• HOB House of Beauty Ltd $\bullet$

and the results of the associate companies:

• Cyprus Airports (F&B) Ltd
• MTN Cyprus Ltd $\mu$ έχρι τις 26/03/2013
• 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 $11^th$ of May 2031. CTC is being represented at the Board of Directors, whereas the Executive Chairman of the Group, Mr. Nicos K. Shacolas is Honorary Life Chairman of Hermes. In the above consolidated Income Statement the results of Hermes Airports Ltd are excluded.

• 1. The Preliminary, Unaudited, Condensed, Consolidated Profit and Loss Account for the year ended 31 December 2013, has not been audited by the external auditors of the Company, but has been prepared in accordance with the set of accounting standards applicable for the preparation of the annual financial statements or 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.
• 1. The turnover of the Group for the year amounted to $6361.755.000$ , compared to $6407.445.000$ in 2012, a reduction of $645.690.000$ or 11,2%. The decrease is emanating mainly from the retail, heavy machinery and vehicles sectors which were affected the most from the reduction in consumption being the result of the ongoing economic crisis especially after the Eurogroup events in March 2013. In addition the turnover of the Group has been reduced after the decision to terminate the loss making operations of Domex Trading Co. Ltd, a subsidiary of Ermes Group and also from the termination of Debenhams Avenue outlet operated by Ermes Group.

The depreciation charge of the Group for the year rose to $\epsilon$ 9.700.000, compared to $\epsilon$ 10.644.000 of 2012. The depreciation charge does not constitute a cash outflow.

1. The net loss of the Group for the year ended on 31 December 2013 amounted to $\epsilon$ 11.891.000, compared to a net profit of $\epsilon$ 7.125.000 in 2012. These losses are mainly a result of the revaluation of investment and other property for the amount of $E27.9m$ of the subsidiary Woolworth (Cyprus) Properties Plc. Furthermore, there are non-recurring expenses totaling $E2.8m$ being mainly impairments from investments to fixed assets of the terminated operations as well as losses that have occurred due to the restructuring of the Cyprus banking sector being €265.000 in Marfin Laiki Bank and €889.000 in Bank of Cyprus that have been converted to shares. In addition the immovable property tax has increased by about €500.000. However, the successful profitable sale of the investment of the subsidiary Amaracos Holding (CTC+PG) Ltd in the share capital of MTN Cyprus Ltd (being 50%), to the MTN Group of South Africa resulted in a significant profit of $E15.713.000$ . It is also highlighted that that the timely and targeted action of the Group for the reduction of its operating costs have resulted in a decrease of these costs by almost $\epsilon$ 12,8m or 15% for 2013. Excluding the result of the revaluation of investment and other property and the non-recurring expenses the Group would have achieved significant profitability.

2. 1. The Board of Directors and the Group's Management continue to manage very carefully and thoroughly the difficult circumstances arose from the economic crisis and take all efforts for further reductions in operating costs, the management of the credit risk and the reorganization of operations so as to ensure that will remain competitive and capable of meeting its obligations.
3. 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, 27 February 2014