Mitsides Public Company Ltd

Interim / Quarterly Report • Aug 30, 2013

ANNOUNCEMENT 30/8/2013: APPROVAL OF THE INTERIM SIX MONTHLY FINANCIAL RESULTS AND THE INTERIM MANAGEMENT STATEMENT FOR THE PERIOD 01/01/2013 – 30/06/2013

Mitsides Public Company Ltd (the Company) announces that on 30 August 2013, the Company's Board of Directors met and approved the unaudited Interim six monthly Financial Results and the Interim Management Statement of the Company and its subsidiaries Blue Azul Investments Ltd, Larnaca Zenon Flourmills Ltd and Mitsides Point A.D. Serbia (the Group), for the period from 1 January 2013 to 30 June 2013. The Interim Management Statement, which has been prepared in accordance with article 11 of the Transparency Requirements Law 190(I) 2007, and has not been audited by the Company's External Auditors, is presented below.

During the period from 1 January 2013 to 30 June 2013, the main activities of the Company, which are the production and trading of flour and pasta, the import and trading of bakery and confectionery raw materials, the import and trading of grains, as well as the production of bakery items by Mitsides Point D.o.o. in Serbia, has remained unchanged.

The most significant events and transactions that took place during the above reporting period, as well as their impact, where applicable, on the consolidated financial statements of the Group, are presented below:

• 1. The Group's financial results for the first half of 2013 show losses, as in the corresponding period of last year.
• a) The Group's turnover during the period under review amounted to €20.423.879, compared to € 19.896.174 for the corresponding period last year, showing an increase of 2,6%. The increase is primarily due to increased sales of the Flour Department of the Serbian subsidiary Mitsides Point D.o.o.
• b) Gross Profit during the period under review stood at 23,73% compared to 23,91% during the corresponding period last year. The decrease is mainly due to a decrease of the gross profit margin in the Group's Pasta Department.
• c) Selling, marketing and administration expenses for the reporting period amounted to €4,014.850 (19,45% of sales), compared to € 4,295.849 (21,59% of sales) in the corresponding period of last year.
• d) Operating profit before financing costs for the first half of 2013 amounted to €551.592 (2,7% of sales) compared to €532.205 (2,7% of sales) for last year's corresponding period.
• e) During the reporting period the Group incurred a loss of €375.431, representing Bank deposits held by a Group company in Laiki Bank and which have been impaired after the Eurogroup's decision of 26 March 2013.
• f) Net financing costs during the first half of 2013 amounted to €797.444, compared to €1.413.580 in the corresponding period of 2012. This decrease was due to

reduced foreign exchange losses of € 10.142, compared to foreign exchange losses of €508,000, which had emerged during the corresponding period of last year from a significant depreciation of the Serbian Dinar against the Euro. The Serbian subsidiary company retains loans in Euros.

• g) The loss before tax in the first half of 2013 decreased to €245.852, compared to a loss of profit of € 881.375 in the corresponding period of last year.
• h) The loss after tax for the first half of 2013 decreased to €138.960, compared to a loss of €919.193 in the corresponding period of last year.
• 1. The ongoing adverse economic climate prevailing in the Eurozone, continue to adversely affect international financial markets and the real economy, creating an extended global credit crisis. As a result, at the date of issue of this statement there is uncertainty in the market, which could adversely affect the Group's results in the future.
• 1. It should be taken into account that it is not possible to predict whether the above trend will continue for the rest of the year. The Group's financial results depend to a large extend on the purchase cost of raw materials and particularly on international grain prices.
• 1. There are no other material events and transactions that occurred during the period, which had an impact on the financial results of the company.
• 1. The Interim Consolidated Financial Statements will not be mailed to shareholders but will be posted on the company's website at www.mitsidesgroup.com, while a sufficient number of copies will also be available at the company Head Offices at 16 Tefkrou Anthia, Dhali Industrial Zone, 2540 Dali.