Cyprus Trading Corporation Public LTD

Earnings Release • Feb 28, 2013

CYPRUS TRADING CORPORATION PLC

Preliminary Unaudited Condensed Consolidated Profit and Loss Account for the year ended 31 December 2012

TURNOVER €406m

	UNAUDITED RESULTS FOR THE	AUDITED RESULTS FOR THE YEAR
	YEAR
	2012	2011
	$\epsilon$ '000	$\epsilon$ '000
Turnover	406.415	443.020
Gross Profit and Other Income	131.742	136.478
Net Profit of the Group after tax	7.890	9.482
Attributable to:
Shareholders	5.048	6.152
Minority Interest	2.841	3.331
Basic and fully diluted earnings per share (cents)	5,49	6,68

NOTES:

1. The Preliminary, Unaudited, Condensed, Consolidated Profit and Loss Account constitutes an extract from the Consolidated Financial Statements of Cyprus Trading Corporation Plc (CTC) for the year ended 31 December 2012.

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

and the results of the associate companies:

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

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 year ended 31 December 2012, 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 $6406.415.000$ , compared to $6443.020.000$ in 2011, a reduction of €36.605.000 or 9%. The decrease is emanating mainly from the retail sector, heavy machinery and vehicles and tobacco products which are affected the most from the continuing economic crisis and the general reduction in consumption.

The depreciation charge of the Group for the year rose to $\epsilon$ 10.650.000, compared to $\epsilon$ 10.667.000 in 2011. The depreciation aside from not constituting a cash outflow it also proves that the Group is capable of generating income of such level which preserves its capability to meet its obligations.

Net Profit after tax for 2012 reached $\epsilon$ 7.890.000, compared to $\epsilon$ 9.482.000 in 2011. The results of 2012 have been negatively affected by a $6480.000$ partial impairment of goodwill of Group subsidiaries. In addition a provision of $\epsilon$ 2.825.000 which existed in the books of Ermes Group in 2011 and referred to a dispute between the joint venture CTC-ARI Airports Ltd and Hermes Airports Ltd has been reversed in 2012 following a unanimous favourable ruling for the joint venture in an arbitration process held at the end of last year. Moreover, in the results of 2011 a dividend income of $6640.000$ was included from the company that administers and operates Cyprus airports, Hermes Airports Ltd.

• As it has already been announced, on the 6^th of February 2013, Amaracos Holding (CTC+PG) Ltd a $4.$ subsidiary of CTC, has agreed to sell to MTN Group of South Africa its share (being 50%) in MTN Cyprus Ltd. CTC has arrived to this decision having considered that its investment in MTN Cyprus has now matured and the current conditions were favorable for the sale. The suggested transaction is subject to certain conditions, including its approval by the Commission for the Protection of Competition. A more detailed announcement will be made following the full satisfaction of all the conditions set.
• 1. The Board of Directors is conscious of the great difficulties that trade is experiencing due to the economic crisis and is closely monitoring receivables, stocks and the other activities of the Group so as to be in a position to minimize to the maximum possible extend the consequences of this crisis.

However, the Group having operations which are less affected by the current economic climate it continues to achieve positive results.

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 2013