Cyprus Trading Corporation Public LTD

Earnings Release • May 30, 2013

CYPRUS TRADING CORPORATION PLC

Preliminary Unaudited Condensed Consolidated Profit and Loss Account for the first quarter of 2013

TURNOVER $E$ 71,7m PROFIT AFTER TAX $69,06$ m

	UNAUDITED RESULTS FOR THE THREE MONTHS ENDED 31ST OF MARCH		YEAR ENDED 31ST DECEMBER
	2013 $\epsilon$ '000	2012 $\epsilon$ '000	2012 $\epsilon$ '000
Turnover	71.699	85.627	407.445
Gross Profit and Other Income	34.975	23.364	133.042
Net Profit/(Loss) of the Group after tax	9.060	(4.988)	7.125
Attributable to:
Shareholders	3.353	(3.350)	4.381
Minority Interest	5.708	(1.638)	2.744
Basic and fully diluted earnings per share (cents)	3,64	(3, 64)	4,76

NOTES:

1. The Preliminary, Unaudited, Condensed, Consolidated Profit and Loss Account constitute an extract from the Consolidated Financial Statements of Cyprus Trading Corporation Plc (CTC) for the period ended 31 March 2013.

The Preliminary Unaudited Condensed Consolidated Profit and Loss Account include the results of the subsidiary companies:

• 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 $\bullet$
• Artview Co. Ltd $\bullet$
• Amaracos Holding (CTC+PG) Ltd $\bullet$
• HOB House of Beauty Ltd $\bullet$

and the results of the associate companies:

• MTN Cyprus Ltd $\bullet$
• Cyprus Airports (F&B) Ltd

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. Nicos K. Shacolas is Honorary Life Chairman of Hermes. In the above consolidated Profit and Loss Account, Hermes Airports results are not included.

• 1. The Preliminary, Unaudited, Condensed, Consolidated Profit and Loss Account for the period ended 31 March 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 quarter amounted to $\epsilon$ 71.699.000, compared to $\epsilon$ 85.627.000 in 2012, a reduction of $\epsilon$ 13.928.000 or 19%. The decrease is emanating mainly from the retail and vehicles sectors which are affected the most from the continuing economic crisis. After the initial decision of the Eurogroup on the 16^th of March 2013 in relation to the financial rescue package for the Cyprus economy there was a significant drop in sales that has significantly hindered the results of the first quarter. In addition, the Group turnover has also been negatively affected by the decision to terminate the operations of Domex Trading Company Ltd, a subsidiary of Ermes Department Stores Plc, which is due to be completed by the end of June 2013.

The depreciation charge of the Group for the quarter rose to $\epsilon$ 2.841.000, compared to $\epsilon$ 2.721.000 in 2012. The depreciation does not constitute a cash outflow.

Net Profit after tax for 2013 reached £9.060.000, compared to a loss of £4.988.000 in 2012. Despite the reduction of the profitability in some companies of the Group, the successful completion of the sale of the participation of Amaracos Holding (CTC+PG) Ltd, a subsidiary of the Group, in MTN Cyprus Ltd (being 50%), to MTN Group South Africa has resulted in a significant profit for the period.

• 1. The events of the Eurogroup on the $16^th$ of March, the conclusion of the agreement with the Troika, the serious restructuring of the Cyprus banking sector mainly with the closure of Cyprus Popular Bank, the increase in unemployment and the reduction in the earnings of the consumers in all sectors, create an unprecedented and uncertain situation, that despite the efforts of the government to reinstate confidence in the market and to create conditions for development, makes it impossible for trustworthy predictions for 2013. The Board of Directors and the Management of the Group, manage the current difficult circumstances with utmost care and have already taken specific measures to reduce expenses, reduce credit risk and reorganize operations, aiming to remain competitive and render it fully capable to abide to its obligations and to successfully navigate through the difficult times ahead. The results from operations for 2013 are expected to be substantially lower than the previous year and are also expected to be affected by the impairment of investments and fixed assets from the closing of operations and to the possible impairment of the goodwill in the consolidated balance sheet of the Group, noting that this does not constitute a cash outflow. It also noted that the profitability of the Group will be affected by the blocking of credit balances with Bank of Cyprus. Despite all this, due to the profit realized from the disposal of the investment in MTN Cyprus Ltd, the results of the year are expected to be profitable.
• 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^th of May 2013