AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

Iktinos Hellas S.A.

Interim / Quarterly Report Sep 16, 2019

2751_ir_2019-09-16_c7526a31-102a-44df-af03-81ac57f8c635.pdf

Interim / Quarterly Report

Open in Viewer

Opens in native device viewer

SEMI-ANNUAL FINANCIAL REPORT

PERIOD 1ST JANUARY TO 30TH JUNE 2019

According to article 5 of Law. 3556/2007 and the implementing decisions therefrom of the BOD of the Capital Market Commission

Metamorphosis, 11 September 2019

IKTINOS HELLAS S.A. GREEK MARBLE INDUSTRY TECHNICAL AND TOURIST COMPANY SA Register Number 2304/06 / B / 86/53 7 LYKOVRYSIS, 14452 METAMORPHOSIS ATTICA Tel. 210-2826825 Fax. 210-2818574. E-mail: info@iktinos www.iktinos.gr

CONTENTS

1.
STATEMENTS OF THE BOARD OF DIRECTORS MEMBERS (IN ACCORDANCE WITH
ARTICLE 5 § 2 OF LAW 3556/2007)

3
2.
INTERIM FINANCIAL INFORMATION OVERVIEW REPORT

4
3.
SEMI-ANNUAL REPORT OF THE BOARD OF DIRECTORS FOR THE PERIOD 1 / 1-30 /
6/2019

6
4.
CONDENSED INTERIM FINANCIAL STATEMENTS FOR SIX-MONTH PERIOD 01/01 -
30/06/2019

18
4.1
Condensed First Half Income Statement
19
4.2
Condensed Statement of
Financial Position
20
4.3
Condensed Statement of Changes in Equity of the Group
21
4.4
Condensed Statement of Parent Company Equity
Changes

22
4.5
Condensed Cash Flow Statement (indirect method)

23
4.6.4 Group structure and company consolidation method
36
4.6.5 Securities

37
4.6.6 Contingent Receivables -
Liabilities

37
4.6.7 Provisions
38
4.6.8 Financial information by sector

39
4.6.9 Changes in Tangible, Intangible Assets and Real Estate Investment
41
4.6.10 Investments in Subsidiaries and Affiliates

44
4.6.12 Loan liabilities

45
4.6.13 Sales
46
4.6.14 Income tax

46
4.6.15 Profit per share

46
4.6.16 Financial assets and liabilities
46
4.6.17 Dividend Distribution

51
4.6.18 Transactions with related parties
51
4.6.19 Benefits to Management

52
4.6.20 Number of employees

52
4.6.21 Events after the reference date
52

1. STATEMENTS OF THE BOARD OF DIRECTORS MEMBERS (IN ACCORDANCE WITH ARTICLE 5 § 2 OF LAW 3556/2007)

The members of the Board of Directors of IKTINOS HELLAS SA

    1. Haidas Evangelos of Nikolaos, resident of Athens, 52 Alkiviadou Str., Chairman of the Board of Directors and Managing Director.
    1. Haida Ioulia of Evangelos, resident of Amarousion, 9 Autokratoros Herakliou Street, Vice President of the Board of Directors.
    1. Haida Anastasia of Evangelos, resident of Amarousion, 9 Autokratoros Herakliou Street, Member of the Board of Directors.

In our above capacity, specifically designated by the Board of Directors of the Société Anonyme under the name "IKTINOS HELLAS S.A.", we hereby declare and hereby assure that to the best of our knowledge:

(a) The semi-annual financial statements for the period 01/01/2019 - 30/06/2019, prepared in accordance with applicable accounting standards, accurately reflect assets and liabilities, net position as of 30/06/2019 and the results of the issuer's first half of 2019 as well as the undertakings included in the consolidation taken as a whole in accordance with paragraphs 3 to 5 of Law. 3556/2007 and the delegated decisions of the Board of Directors of the Capital Market Commission,

(b) The Board of Directors' semi-annual report accurately reflects the information required in accordance with paragraph 6 of Article 5 of Law 3556/2007 and the delegated decisions of the Board of Directors of the Capital Market Commission.

Metamorphosis Attica, 11th September 2019 the assurers,

The Chairman of the Board of Directors The designated by the B.O.D. members
& CEO
Haidas Evangelos Ioulia Haida Anastasia Haida
ID no. AE 079957 ID no. Ξ 373770 ID no. Ξ 299593

2. INTERIM FINANCIAL INFORMATION OVERVIEW REPORT

Independent Certified Public Accountant Overview Reports

To the Board of Directors of IKTINOS HELLAS SOCIETE ANONYME

Interim Financial Information Overview Report

Introduction

We have reviewed the attached interim condensed corporate and consolidated financial position of IKTINOS HELLAS S.A. as of 30th June 2019 and the related condensed corporate and consolidated financial results and other total income, changes in equity and cash flows for the six-month period ending on that date, as well as the selected explanatory notes that make up the interim summary financial information, which is an integral part of the semi-annual financial report of Law 3556/2007. Management is responsible for the preparation and presentation of this interim condensed financial information in accordance with International Financial Reporting Standards as adopted by the European Union and applied in the Interim Financial Reporting (Internation Accounting Standard "IAS 34"). It is our responsibility to express a conclusion based on our interim condensed financial information.

Overview Scope

We conducted our review in accordance with International Standard on Review Engagements IISRE) 2410 "Review of Interim Financial Reporting by the Independent Auditor of the Entity". The overview of interim financial information consists of asking fact-finding inquiries mainly to persons responsible for financial and accounting matters and the application of analytical and other review procedures. The review is substantially narrower in scope than the audit which is conducted in accordance with International Audit Standards which are incorporated into Greek Law, and therefore does not enable us to obtain assurance that all important matters have come to our attention of those which may have been pointed out in an audit. Consequently, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that would lead us to believe that the attached interim condensed financial information has not been prepared, in all material respects, in accordance with IAS 34.

Report on Other Legal and Regulatory Requirements

Our review found no material inconsistency or error in the Board members' statements and in the information of the Board of Directors' semi-annual Management Report, as set forth in Articles 5 and 5a of Law. 3556/2007, in relation to interim condensed corporate and consolidated financial information.

Athens, 11th September 2019

The Certified Public Accountant

Nikos Ioannou

RN SOEL (Institute of Certified Public Accountants of Greece) 29301

3. SEMI-ANNUAL REPORT OF THE BOARD OF DIRECTORS FOR THE PERIOD 1 / 1- 30 / 6/2019

The present Board of Directors' Semi-Annual Report (hereinafter referred to as "Report") concerns the period of the first semester of the current fiscal year 2019 (1/1-30/6/2019). The Report was drafted and harmonized with the relevant provisions of Law 3556/2007 (Government Gazette 91A-30/4/2007) and the implementing decisions of the Capital Market Commission and in particular Decision no.7/448- 11/10/2007 of the Board of Directors of the Capital Market Commission.

A. EVOLUTION OF THE COMPANY & GROUP PERFORMANCE FOR THE PERIOD 1/1- 30/6/2019

A.1 COMPANY

WORK EVOLUTION

• Turnover

Turnover for the first half of 2019 amounted to 20,906,619 euro while the corresponding amount for the first half of 2018 was 28,505,280 euro. A decrease of 7,598,660 euro was recorded and at 26.66%. The decrease in turnover is due to a decrease in Volakas marble sales in the first half of 2019 by 36.47%, due to reduced production, on one hand because of unexpected bad weather conditions and on the other hand, because of the delay of planned undergroung excavations (delay in licensing, delivery and training on special mining machinery). Two mining machines (sawmills) are already in operation, the third one will be delivered at the end of September and the fourth will be delivered at the end of the year.

Following the company's steady upward trend since its incorporation and continued geometric growth of its figures with huge leaps, there comes a balance of turnover and profits which is necessary for the next big and steady steps for growth.

In the second half, it is forecasted that there will be an improvement in figures, so that the turnover reduction in the first half is reduced to 12%, with a corresponding improvement in profits.

Provsisions for 2020 are for a 20% increase in turnover compared to 2019, which will come from:

  1. the full operation of the new industrial plant in Drama, with initial production comparable to the industrial plants in Athens, while later production can be increased by the addition of new facilities, due to the possibility of expansion, to the neighboring properties of the company in the industrial area of Drama (approximately 45 acres, whereas approximately 11 acres in Athens).

  2. the planned increased production of Volakas marble from underground mines, which can operate regardless weather conditions.

  3. better performance of the new quarries of Pyrgoi, Peloponnese, etc.

Exports have stabilized at over 95% of turnover, 96.6% for the first half of 2019 and 95.00% for the first half of 2018. The export orientation of the company contributes significantly to improvement of its liquidity since the majority of sales is made by price prepayment.

• Gross results (Gross profit)

In the first half of 2019 it amounted to 9,138,248 euro while the corresponding amount in the first half of 2018 amounted to 16,169,992 euro. A decrease of 7,001,744 euro was recorded and 43.38%. The cost of sales in the first half of 2019 decreased only by 4.83%, as most production costs were inelastic, as the number of staff did not decrease but rather increased during the first half.

• Administration and Disposal Expenses

In the first half of 2019 they amounted to 5,094,268 euro while the corresponding amount in the first half of 2018 was 5,491,352 euro. There was a decrease by 397,084 euro and 7.23%.

• Earnings before taxes, interest and depreciation (EBITDA)

The first half of 2019 amounted to 5,230,026 euro while the corresponding amount in the first half of 2018 amounted to 11,291,088 euro. There was a decrease by 6,061,062 euro and 53.68%.

• Profit before tax

In the first half of 2019 it amounted to 3,211,709 euro while the corresponding amount in the first half of 2018 amounted to 10,075,823 euro. There was a decrease by 6,864,114 euro and 68.12%.

• Profit after taxes

In the first half of 2019, it amounted to 2,336,033 euro while the corresponding amount in the first half of 2018 amounted to 7,017,485 euro. There was a decrease by 4,681,451 euro and 66.71%.

A.2 GROUP

ΙΝDIVIDUAL SUBSIDIARIES AND AFFILIATES RESULTS

The companies in which IKTINOS HELLAS S.A. participated as of 30/6/2019 and included in the consolidated financial statements of the Group are as follows:

1. FIDIAS HELLAS S.A.

Its sales in the first half of 2019 amounted to 417,495 euro while the corresponding amount in the first half of 2018 amounted to 492,437 euro. There was a decrease by 74,942 euro and 15.22%. Profit before tax in the first half of 2019 amounted to 27,005 euro while the corresponding amount in the first half of 2018 amounted to 99,793 euro. There was a decrease by 72.788 euro and 72.94%.

2. ELECTRIC POWER PRIVATE CORPORATION S.A. (IDEH SA)

Its sales in the first half of 2019 amounted to 1,193,801 euro while in the first half of 2018 it was 1,001,049 euro. There was an increase by 192,752 euro and 19.25%.

IDEH SA showed in the first half of 2019 Profit before tax of 27,149 euro while the corresponding amount for the first half of 2018 was (losses) of 207,257 euro. That is an improvement of the result by 234,406 euro.

3. IKTINOS MARMARON

Its sales in the first half of 2019 amounted to 1,443,006 euro while in the first half of 2018 it was 3,121,949 euro. There was a decrease by 1,678,943 euro and 53.78%.

Profit-Loss before tax in the first half of 2019 amounted to (loss) 169,796 euro while the corresponding amount for the first half of 2018 was (profit) € 441.645. There was a change in the result by 611,441 euro.

4. LATIRUS ENTERPRISES LTD

This company through its subsidiary "IKTINOS TECHNICAL & TOURISTIC S.A." is in the process of investments implementation.

EVOLUTION OF THE GROUP'S TURNOVER

• Turnover

Semi-annual Financial Report for the period 01 January to 30 June 2019 8 In the first half of 2019 it amounted to 23,246,741 euro while the corresponding amount in the first half of 2018 amounted to 32,076,428 euro. There was a decrease by 8,829,687 euro and 27.53%.

• Gross results (Gross profit)

In the first half of 2019 it amounted to 9,389,528 euro while the corresponding amount in the first half of 2018 amounted to 16,912,648 euro. There was a decrease by 7,523,120 euro and 44.48%.

• Administration and Disposal Expenses

In the first half of 2019 it amounted to 5,635,160 euro while the corresponding amount in the first half of 2018 amounted to 6,034,639 euro. There was a decrease by 399,478 euro and 6.62%.

• Earnings before taxes, interest and depreciation (EBITDA)

In the first half of 2019 it amounted to 6,050,313 euro while the corresponding amount in the first half of 2018 amounted to 12,510,693 euro. A decrease by 6,460,380 and 51.64%.

• Profit before tax

In the first half of 2019, total profit was 3,138,731 euro while the corresponding amount in the first half of 2018 amounted to 13,858,496 euro. There was a decrease by 10,719,765 and 77.35%.

• Profit after taxes

In the first half of 2019, the profits amounted to 2,025,503 euro while the corresponding amount in the first half of 2018 amounted to profits of 10,585,133 euro. That was a decrease of 8,559,630 euro at 80.86%.

Alternative Financial Performance Measurement Indicators

The Group uses as Alternative Financial Performance Measurement Indicators Profit before taxes, interest and depreciation (EBITDA), margin before interest, taxes, investment income and depreciation and Net Lending. The above indicators are taken into consideration by the Group's Management for strategic decisions.

Earnings before interest and depreciation taxes (EBITDA)
The Group The Company
30/6/2019 30/6/2018 30/6/2019 30/6/2018
Profit after Tax 2,025,503 10,585,133 2,336,033 7,017,485
Taxes 1,113,228 3,273,363 875,676 3,058,339
Net financial results 931,040 722,533 829,827 551,399
Depreciation 2,281,141 1,697,749 1,217,624 700,707
Corresponding depreciation of grants -300,599 -308,305 -29,135 -36,841
Earnings before interest, taxes and
depreciation (EBITDA)
6,050,313 15,970,473 5,230,026 11,291,089
Investment results 0 -3,459,780 0 0
Earnings before interest, taxes, investment
results and depreciation
6,050,313 12,510,693 5,230,026 11,291,089
Turnover 23,246,741 32,076,428 20,906,619 28,505,280
Earnings before interest, taxes, investment
results and depreciation
26.03% 39.00% 25.02% 39.61%
Net Lending
Club The company
30/6/2019 31/12/2018 30/6/2019 31/12/2018
Long-term borrowing liabilities 17,921,569 19,304,533 15,029,900 15,834,531
Lease liabilities 1,509,096 779,168 1,449,534 779,168
Short-term borrowing liabilities 15,472,266 12,612,770 15,292,371 12,343,371
Long-term borrowing liabilities payable in the next
fiscal year
2,025,730 1,786,475 1,474,739 1,124,816
Short-term lease liabilities 949,448 534,461 879,529 534,461
Cash and Cash Equivalents -2,082,216 -1,869,531 -1,902,386 -1,643,977
Net Lending 35,795,893 33,147,876 32,223,687 28,972,369

B.1 IMPORTANT EVENTS IN THE PARENT COMPANY IKTINOS HELLAS SA

1. Investment plan

The company submitted an investment file based on Development Law 4399/2016 totaling 6.9 million euro and qualified in 7/2019 for 6.7 million euro, which concerns the modernization of the new plant in the Industrial Area of Drama, with the aim of increasing its production capacity and improvement of the produced products. To date, about 90% of the mechanical equipment that has been operating in the second half of 2019 has been received. Works on the plant are expected to be completed by the end of the year and the initiation of works is expected in the first half of 2020 for the construction of new offices - exhibition space in the Industrial Area of Drama of a total area of 1,600 sq.m.

2. VAT return

The company has offset tax liabilities, after a temporary audit by the competent Tax Authority (DOY FAE ATHENS) for VAT return applications amounting to 1,048,000 euro based on POL 1073/2004 for the period 1-6/2019.

3. Increase in the number of shares via Split

The Ordinary General Meeting of the company, which was held on 26.6.2019, approved the reduction of the nominal value of the share from forty euro cents (0,40) to ten cents (0,10), with simultaneous increase of the total number of shares from 28,580,100 to 114,320,400 common registered shares (split), and the isuance of 85,740,300 new shares.

The above 85,740,300 new shares were distributed free of charge to the shareholders of the company and will correspond to four (4) common registered shares in replacement for each (1) old registered share. Following the above change, the Company's share capital remains at the amount of 11,432,040 euro divided into 114,320,400 common registered voting shares with a par value of 0.10 euro.

On 26.06.2019 the application for registration of the decision of General Assembly amending Article 5 of the Articles of Association was registered in the General Commercial Register (GEMI) with Registration Code No. 1586784 and the decision of the Department of Companies, Supervision of Listed S.A. and Athletic S.A. of the Ministry of Economy and Development was published with protocol No. 77773/24-7- 2019, which approved the amendment of article 5 of the Articles of Association of the the Company.

The Athens Stock Exchange Corporate Actions Committee, at its meeting on 31/7/2019, approved the listing for trading of the new shares of the Company in accordance with the above.

By the decision of the Company, the following were defined:

a) The date of termination of the right to participate in the split of shares was set on 05/08/2019. b) From the same date, the Company's shares were traded on the Athens Stock Exchange at the new nominal value, namely, 0.10 Euro per share, without the right to participate in such distribution of free shares, and the starting price of the Company's shares at the Athens Stock Exchange was formed in accordance with the Athens Stock Exchange Regulation in conjunction with decision No. 26 of the Board of Directors of the Athens Stock Exchange, as in force. c) Beneficiaries of the aforementioned corporate transaction were the Company's shareholders who were registered in the Dematerialized Securities System (DSS) on 06/08/2019.

The initiation of negotiating the new shares on the Athens Exchange was scheduled for 08/08/2019. As of the same date the above shares were credited to the shareholders' DSS shares and securities accounts.

B.2 IMPORTANT EVENTS IN "LATIRUS ENTERPRISES LTD" AND ITS SUBSIDIARY "IKTINOS TECHNICAL & TOURISTIC S.A."

The company IKTINOS TECHNICAL & TOURIST SA is active in the real estate sector. It has an area of approximately 2,689 acres, of which 556 acres are located on the seaside in Faneromeni bay in Sitia, Crete, and the remaining approximately 2133 acres are located approximately thousand meters south, on the Sopata Mexorachis plateau of the Municipality of Sitia in Crete.

In the first phase in the seaside area of Faneromeni bay the following will be created:

a) Tourist establishment, 5-star hotel with 357 beds, 100-person thalassotherapy center, 200-person conference center covering approximately 116,32 acres;

b) Shelter of 85 touristic boats.

c) Residential Area of B' Residence through the PERPO mechanism (article 24 of Law 2508/1997) in an area of 204.71 acres where approximately 100 Vacation Homes of approximately 20,430 m2 will be constructed.

In the second phase of the plateau in SOPATA-MESORACHI the following will be created:

a) Residential Area of B' Residence through the PERPO mechanism (article 24 of Law 2508/1997) in an area of approximately 304.08 acres for which the preliminary Environmental Approval (PEA) has been granted.

(b) 18-hole C of approximately 1500 acres adjacent to the site for which the preliminary Environmental Approval (PEA) has been granted.

Evolution of the business plan of the company Iktinos Technical and Touristic SA:

    1. Licensing of touristic facilities in Faneromeni Bay
  • a. Hotel Unit
    • i. The following licenses have been issued for the Hotel Unit:
    • ii. Building permit of Sitia Town Planning Office No.171 / 14-10-09
    • iii. Decision on Environmental Terms Approval (DETA) No.1768 / 20-6-2019.
  • b. 85 Touristic Vessel Shelter
    • The following licenses have been issued for the touristic vessel shelter:
    • i. Decision for the Scheduling of Granting Touristic Vessel Shelter No. 9899/2005 (attached)
    • ii. Amendment of (a) Decision with No.2442/8-2-2018
    • iii. Decision extending the deadline for completion of the project until 26/6/2023 No.7201/26-4-2018
    • iv. Project Approval Decision No. 377 / 19-2-2014
  • c. Residential Area (PERPO)
    • The following permits have been issued for the residential area:
    • i. Approval of Planning Study Government Gazette 144 / 20-7-2016
    • ii. Environmental Terms Approval Decision (ETAD) No. 172456 / 16-12-2013
    • iii. Approval by the Sitia Municipality of Infrastructure Implementation Studies No.173/2018
    • iv. Commencement of access road opening and formation of junction with municipal road of Sitia-Papadiokambou.
    1. Authorization of Touristic Facilities at Sopata-Mesorachi location
  • a. GOLF Course Preliminary Environmental Assessment (PEA) No. 196966/2607/26-2-2007 b. Residential Area (PERPO) Opinion on Preliminary Environmental Assessment (PEA) No.138207/24-9-2009

For 2019 the following tasks will continue:

    1. Formation and laying of a rural road at the site of Sopata with a length of 3,428 meters
    1. Opening and shaping of roads with a total length of 2,247 meters within the area of private urbanization at the site of Faneromeni Bay of Municipality of Sitia. Summarizing and taking into account the developments described above, we believe that this business plan is evolving smoothly.

C. PERSPECTIVE AND EXPECTED ACHIEVEMENTS FOR THE 2nd HALF OF THE FINANCIAL YEAR 2019

MARBLE SECTOR

In the marble sector, due to the general downturn in the internal market and the decline in the construction sector, the company has continued to give emphasis on its exports as the data until now welcome the correctness of its decisions and its continuity.

In the second half, it is forecasted that there will be an improvement in the figures, so that the reduction of turnover in the first half will be reduced to 12% with a corresponding improvement in earnings.

AEOLIAN ENERGY SECTOR

As part of its program for a dynamic presence in Renewable Energy, the group has planned the development of new Aeolian farms to be determined according to market conditions. The development of these new projects is already under way as applications for authorization for the development of Aeolian farms with a total capacity of 64 MW have already been submitted to the Competent Authorities.

REAL ESTATE SECTOR

The Group's activities in the field of Real Estate through its subsidiary IKTINOS TECHNICAL & TOURISTIC S.A. are planned to be implemented after the expected completion of the approvals and authorizations referred to in paragraph B2 above. The result will be the future increase in the value of the property and the corresponding improvement in the results of the Group's investment activity. The aim is to sell the company at a price above the valuation value.

D. DESCRIPTION OF MAIN RISKS AND UNCERTAINTIES FOR THE SECOND HALF OF THE FINANCIAL YEAR 2019

The Group is exposed to financial and other risks. The Group's overall risk management program aims to minimize their potential adverse effect on the Group's financial performance.

The Financial Department monitors and manages the risks to which the Group is exposed, identifies, assesses and counterbalances if necessary the financial risks in collaboration with the services that confront those risks. It also does not engage in speculative transactions that are not related to the

Group's commercial, investment or borrowing activities. In particular for these risks we note the following:

1. Foreign exchange risk

The Group's functional currency is the Euro. The Group conducts the majority of its transactions in euro, therefore limiting the immediate foreign exchange risk. However, it also conducts international transactions outside the euro and is therefore exposed to foreign exchange risk primarily from the US dollar. These transactions involve only a small part of the activities and thus the currency risk is very limited.

2. Credit risk

Credit risk is the risk of any late payment to the group of current and potential counterparty liabilities. The Group's exposure to credit risk arises principally from cash and cash equivalents, trade and other receivables. The Group does not have a significant concentration of credit risk in any of its counterparties, mainly due to the high spread of its customer list. The Group's wholesale sales are made on the basis of its internal operating principles, which ensure that sales of goods and services are made to creditworthy customers. In addition, a significant portion of Group receivables is insured.

3. Liquidity risk

Liquidity needs are determined for a period of 6 months and redefined on a monthly basis. Payment needs are monitored on a weekly basis.

In times of inadequate liquidity, the company can finance its liquidity needs through bank borrowing from approved limits it maintains with banks.

On 30/06/2019 there is a temporary negative difference between the current assets and the short-term liabilities of the Group and the Company, amounting to 4,224,024 euro and 3,775,556 euro respectively. This difference will be covered by sales made within the year.

4. Borrowing - Risk of fluctuating interest rates

The Group monitors and manages its borrowing, using a combination of short and long term borrowings. There are approved financing limits and satisfactory co-operation and pricing terms for various banking operations that help reduce the Group's financial costs. The Group's policy is to maintain most of its loans in euro at a floating rate, and a potential Euribor increase would mean additional financial burden. Implementing the investment in Aeolian energy will also require additional borrowing and therefore additional financial burden.

5. Inventory-supplier risk

The Group and the Company take all necessary measures (insurance, safeguarding) to minimize the risk and potential losses due to loss of inventory from natural disasters, theft, etc. Management is constantly reviewing the net realizable value of inventories and making appropriate impairments.

Also, Management considers that the dependence on suppliers is very limited and in any case not significant for the financial figures of the Group and the Company, as there is no significant dependence on specific suppliers, none of which supplies the Company with products over 10% of all its purchases.

6. Customer dependency

The Group's customer base is highly dispersed and there is no risk of dependence on large customers. The Group aims to satisfy an increasing number of customers by increasing the range of products available and seeking immediate satisfaction of their needs.

E. LIST OF IMPORTANT TRANSACTIONS BETWEEN THE ISSUER AND THE RELATED PARTIES

"Related parties" under IAS 24 means subsidiaries, companies with joint ownership and/or management with the company, affiliates, as well as Board of Directors members and Company executives. The company is supplied with goods and services from the related parties, and also supplies and provides services to them. Sales of the company to related parties are mainly commodities. Sales of services to the company mainly concern marble processing services.

Remuneration to Board Members and Company executives relate to remuneration for employment services. The following table breaks down the benefits to the Group's executives as defined by IAS 24. The amounts of the Company's purchases and sales to and from the related parties as defined by IAS 24, cumulatively from the beginning of the current period 1/1-30/06/2019 and 01/01-30/06/2018 respectively, as well as the balances of receivables and liabilities of the above companies as of

30/6/2019 30/6/2018
Remuneration to BoD members and other
executives
249,269 249,415
Sales to BoD members and other executives 0 374,018
30/6/2019 31/12/2018
Receivables from BoD members and other
executives
73,367 73,827
Liabilities of BoD members and other
executives
2,765,175 437,788

30/06/2019 and 31/12/2018 respectively are analysed as follows:

GROUP COMPANY
30/6/2019 30/6/2018 30/6/2019 30/6/2018
Sales of merchandise /
services
Subsidiaries 316,371 511,762
Totals 316,371 511,762
Other Income / Expenses
Subsidiaries 36,000 36,000
Other Related Parties 0 0
Totals 36,000 36,000
Goods / Services Markets
Affiliates 427,264 550,030
Totals 427,264 550,030
30/6/2019 31/12/2018 30/6/2019 31/12/2018
Receivables
Subsidiaries 2,502,272 3,725,737
Other Related Parties 10,488 10,488 10,488 10,488
Totals 10,488 10,488 2,512,760 3,736,225
Liabilities
Affiliates 638,002 528,072
Other Related Parties
Totals 638,002 528,072

Metamorfosi 11/09/2019 The Chairman of the Board Evangelos Haidas

4. CONDENSED INTERIM FINANCIAL STATEMENTS FOR SIX-MONTH PERIOD 01/01 - 30/06/2019

The attached semi-annual financial statements have been approved by the Board of Directors of "IKTINOS HELLAS SA" on 11.09.2019 and have been published by posting them online, at www.iktinos.gr and the ATHEX website, where they will be available to the investing public.

4.1 Condensed First Half Income Statement

(amounts in €)

CONSOLIDATED INFORMATION COMPANY INFORMATION
Note 1/1 - 30/6/2019 1/1 - 30/6/2018 1/1 - 30/6/2019 1/1 - 30/6/2018
Sales
Cost of Sold
4.6.13 23,246,741
(13,857,213)
32,076,428
(15,163,780)
20,906,619
(11,768,372)
28,505,280
(12,365,288)
Gross profit
Other operating income
Costs of disposal
Administrative expenses
9,389,528
413,421
(3,297,207)
(2,337,954)
16,912,648
564,487
(3,485,317)
(2,549,322)
9,138,248
90,678
(3,155,062)
(1,939,205)
16,139,992
294,645
(3,307,314)
(2,184,038)
Expenses, research and
development
Other operating expenses
(47,377)
(50,640)
(26,889)
(294,358)
(47,377)
(45,744)
(26,889)
(289,174)
Profit before Taxes on Financial
and Investment Results
4,069,771 11,121,249 4,041,536 10,627,222
Financial Income
Financial expenses
1
(953,077)
1,719
(714,831)
1
(851,865)
1,718
(543,697)
Other Financial Results 22,037 (9,420) 22,037 (9,420)
Results of investment activity 0 4,356,262 0 0
Profits / Losses from affiliates 0 (896,482) 0 0
Net Profit / (Loss) before taxes 3,138,731 13,858,496 3,211,709 10,075,823
Income tax 4.6.14 (1,113,228) (3,273,363) (875,676) (3,058,339)
Net Profit / (Loss) after tax
(from continuing &
discontinued activities)
2,025,503 10,585,133 2,336,033 7,017,485
Other Total Revenue:
Amounts not reclassified to the
Income Statement in
subsequent periods:
Actuarial Results
0 0 0 0
Aggregate Total Income after
taxes
2,025,503 10,585,133 2,336,033 7,017,485
Aggregate Income after tax
attributable to:
Parent Owners
Non-controlling interests
2,024,101
1,403
10,575,984
9,149
2,336,033 7,017,485
Profit for the period after tax
attributable to
Parent Owners
Non-controlling interests
2,024,101
1,403
10,575,984
9,149
2,336,033 7,017,485
Basic Earnings Per Share attributed
to Parent Owners
4.6.15 0.0711 0.3727 0.0821 0.2473
Summary of period results:
Profit before Taxes on Financial,
Investment Results and
Depreciation
6,050,313 12,510,693 5,230,026 11,291,088

The Group and the Company did not proceed to the adjustment of the comparative amounts of 2018 when applying IFRS 16 (see Note 4.6.3.3 for details).

The accompanying notes form an integral part of the interim condensed consolidated and corporate semi-annual financial statements.

4.2 Condensed Statement of Financial Position

(amounts in €)

Note THE GROUP THE COMPANY
Assets 30/6/2019 31/12/2018 30/6/2019 31/12/2018
Non-Current Assets
Tangible assets 4.6.9 45,369,518 44,873,771 21,177,714 19,926,375
Real estate investments
Intangible assets
4.6.9
4.6.9
28,869,543
7,228,183
28,835,851
7,438,640
55,851
6,966,910
55,851
7,163,611
Investments in subsidiaries 4.6.10 0 0 32,229,184 30,429,184
Deferred tax assets 1,156,939 1,133,127 2,926,434 2,924,400
Other long term receivables 58,871 58,781 34,846 34,764
82,683,054 82,340,169 63,390,939 60,534,184
Current Assets
Inventories 20,368,453 19,686,898 19,259,658 18,558,470
Customers and other trade receivables 9,581,957 7,261,978 10,390,052 7,364,905
Other receivables 8,978,908 7,140,884 8,174,062 8,308,584
Financial assets at fair value through profit or loss 40,564 18,528 40,564 18,528
Cash and cash equivalents 2,082,216 1,869,531 1,902,386 1,643,977
41,052,098 35,977,819 39,766,722 35,894,464
Total assets 123,735,152 118,317,989 103,157,661 96,428,648
Equity & Liabilities
Equity
Share capital 4.6.11 11,432,040 11,432,040 11,432,040 11,432,040
For Parity 43,792 43,792 43,792 43,792
Fixed asset differences 461,172 461,172 437,237 437,237
Other Reserves 9,382,626 8,786,715 9,382,626 8,786,715
Own share reserve 181,138 (181,138) (181,138) (181,138)
Retained results
Equity attributable to the shareholders of Parent
23,377,253 26,217,705 20,830,496 23,359,015
Company 44,515,744 46,760,286 41,945,053 43,877,661
Non-controlling interests 500,328 498,926
Total equity 45,016,072 47,259,211 41,945,053 43,877,661
Long-term responsibilities
Long-term loaning liabilities
4.6.12 17,921,569 19,304,533 15,029,900 15,834,531
Lease liabilities 1,509,096 779,168 1,449,534 779,168
Deferred tax liabilities 6,684,638 6,472,643 115,625 124,935
Retirement benefit liabilities 794,802 755,925 684,603 650,417
Grants 6,272,396 6,572,995 164,456 193,591
Provisions 4.6.7 260,457 253,933 226,212 220,523
Total Long Term Liabilities 33,442,958 34,139,197 17,670,330 17,803,165
Short-term Liabilities
Suppliers and other liabilities 9,702,269 10,694,287 8,592,698 9,505,682
Current tax liabilities 7,924,747 7,151,851 7,579,490 6,749,211
Short-term loan liabilities 4.6.12 15,472,266 12,612,770 15,292,371 12,343,371
Long-term loan liabilities payable in the following year 4.6.12 2,025,730 1,786,475 1,474,739 1,124,816
Short-term lease liabilities 949,448 534,461 879,529 534,461
Other short-term liabilities 9,201,662 4,139,736 9,723,451 4,490,281
Total Short-Term Liabilities 45,276,122 36,919,580 43,542,279 34,747,822
Total liabilities 78,719,080 71,058,777 61,212,608 52,550,987
Total Equity and Liabilities 123,735,152 118,317,989 103,157,661 96,428,648

The Group and the Company did not proceed to the adjustment of the comparative amounts of 2018 when applying IFRS 16 (see Note 4.6.3.3 for details).

The accompanying notes form an integral part of the interim condensed consolidated and corporate semi-annual financial statements.

4.3 Condensed Statement of Changes in Equity of the Group

(amounts in €)

Attributable to the shareholders of the parent company

Equity For
Parity
Fair value
reserves
Other
Reserves
Own Share
Reserve
Retained
results
Total Non
controlling
interests
Total
equity
Total equity as of December 31, 2017
Impact of IFRS 9
11,432,040 43,792 461,172 7,820,333 (313,506) 16,573,207
(216,630)
36,017,038
(216,630)
(12,213) 36,004,825
(216,630)
Adjusted balance January 1, 2018 11,432,040 43,792 461,172 7,820,333 (13,506) 16,356,578 35,800,408 (2,213) 35,788,196
Purchase of Own
Shares
(24,505) (24,505) (24,505)
Sale of Own
Shares
457,427 196,598 654,025 654,025
Formation of Regular Reserve 508,955 (508,955) 0 0
Distribution of earnings from previous years (1,992,628) (1,992,628) (1,992,628)
Acquisition of a subsidiary 0 527,214 527,214
Transactions with Owners 0 0 0 966,382 172,093 (2,501,584) (1,363,109) 527,214 (835,895)
Financial Results 1/1 -
30/6/2018
10,575,984 10,575,984 9,149 10,585,133
Other Total Income for the period 1.1 -
30.6.2018
0 0
Aggregate Total Income for the Period 1/1 -
30/6/2018
0 0 0 0 0 10,575,984 10,575,984 9,149 10,585,133
Balances on 30/6/2018 11,432,040 43,792 461,172 8,786,715 (141,413) 24,430,978 45,013,284 524,150 45,537,434
Total equity for commencement of
period
1/1/2019
11,432,040 43,792 461,172 8,786,716 (181,138) 26,217,704 46,760,285 498,926 47,259,212
Formation of Regular Reserve 595,911 (595,911) 0 0
Distribution of earnings from previous years (4,268,643) (4,268,643) (4,268,643)
Transactions with Owners 0 0 0 595,911 0 (4,864,554) (4,268,643) 0 (4,268,643)
Financial Results 1/1 -
30/6/2019
2,024,101 2,024,101 1,403 2,025,503
Other Total Income for the period 1.1 -
30.6.2019
0 0
Aggregate Total Income for the Period 1/1 -
30/6/2019
0 0 0 0 0 2,024,101 2,024,101 1,403 2,025,503
Balances on 30/6/2019 11,432,040 43,792 461,172 9,382,627 181,138 23,377,251 44,515,743 500,329 45,016,072

The Group and the Company did not proceed to an adjustment of the comparative amounts of 2018 when applying IFRS 16 (see Note 4.6.3.3 for details). In addition, the Group and the Company, in applying IFRS 9, recognized its overall effect on the balance sheet "Retained Earnings Balance" on 01/01/2018.

The accompanying notes form an integral part of the interim condensed consolidated and corporate semi-annual financial statements.

4.4 Condensed Statement of Parent Company Equity Changes

(amounts in €)

Share
capital
For
Parity
Fair value
reserves
Other
Reserves
Own share
Reserve
Retained results Total
Total equity as of December 31, 2017
Impact of IFRS 9
11,432,040 43,792 437,237 7,820,333 (313,506) 18,287,439
(216,630)
37,707,335
(216,630)
Adjusted balance January 1, 2018 11,432,040 43,792 437,237 7,820,333 (313,506) 18,070,810 37,490,706
Formation of own equity reserve
Formation of Regular Reserve
Distribution of earnings from previous years
Purchase of Owns
Shares
Sale of own shares
508,955
457,427
(24,505)
196,598
(508,955)
(1,992,628)
0
0
(1,992,628)
(24,505)
654,025
Transactions with Owners 0 0 0 966,382 172,093 (2,501,584) (1,363,109)
Results
Period 1/1 -
30/6/2018
Other Total Income for the period 1.1 -
30.6.2018
7,017,485
0
7,017,485
0
Aggregate Total Income for the Period 1/1 -
30/6/2018
0 0 0 0 0 7,017,485 7,017,485
Balances on 30/6/2018 11,432,040 43,792 437,237 8,786,715 (141,413) 22,586,711 43,145,082
Total equity for commencement of the period
1/1/2019 11,432,040 43,792 437,237 8,786,715 (181,138) 23,359,016 43,877,662
Formation of Regular Reserve
Distribution of earnings from previous years
595,911 (595,911)
(4,268,643)
0
0
(4,268,643)
Transactions with Owners 0 0 0 595,911 0 (4,864,554) (4,268,643)
Results
Period 1/1 -
30/6/2019
Other Total Income for the period 1.1 -
30.6.2019
2,336,033
0
2,336,033
0
Aggregate Total Income for the Period 1/1 -
30/6/2019
0 0 0 0 0 2,336,033 2,336,033
Balances on 30/6/2019 11,432,040 43,792 437,237 9,382,626 (181,138) 20,830,495 41,945,052

The Company did not adjust the comparative amounts of 2018 in applying IFRS 16 (see Note 4.6.3.3 for details). In addition, the Company, in applying IFRS 9, recognized its overall impact on the balance sheet "Retained Earnings Balance" on 01/01/2018.

The accompanying notes form an integral part of the interim condensed consolidated and corporate semi-annual financial statements.

4.5 Condensed Cash Flow Statement (indirect method)

(amounts in €)

THE GROUP THE COMPANY
1/1 -
30/06/2019
1/1 -
30/06/2018
1/1 -
30/06/2019
1/1 -
30/06/2018
Operational activities
Profit (loss) before taxes 3,138,731 13,858,496 3,211,709 10,075,823
Plus / minus adjustments for:
Depreciation
2,281,141 1,697,749 1,217,624 700,707
Provisions 39,712 630,452 34,186 629,657
Exchange differences
Recognized grant revenue
167
(300,599)
3,678
(308,305)
167
(29,135)
3,678
(36,841)
Results (income, expense, profit and loss) of investment (62,349) (3,472,422) (60,849) 7,702
activity
Debt interest and related expenses
951,502 714,036 851,865 543,697
Plus / minus adjustments for working capital changes
or related to operating activities:
Decrease / (increase) of inventories
(681,554) (105,423) (701,188) 439,495
Reduction / (increase) of receivables (5,958,093) (4,260,132) (4,690,707) (2,781,626)
(Decrease) / increase in liabilities (excluding banks)
Minus:
1,247,356 943,760 (210,844) (1,512,547)
Debt interest and related expenses paid (849,438) (743,050) (749,023) (567,467)
Taxes paid (350)
(193,774)
0
8,958,838
(350)
(1,126,544)
0
7,502,277
Total inflows / (outflows) from operating activities (a)
Investment activities
Acquisition of subsidiaries, associates, joint ventures and other
investments
0 (14,000,000) 0 (14,000,000)
Purchase of tangible and intangible fixed assets (1,919,966) (3,031,280) (1,769,925) (2,985,572)
Revenues from sales of tangible and intangible assets
Interest received
1,020,700
1
0
1,718
1,019,200
1
0
1,718
Total inflows / (outflows) from investment activities (899,265) (17,029,562) (750,724) (16,983,854)
(b)
Funding activities
Purchase of own shares 0 (24,405) 0 (24,405)
Proceeds from the sale of own shares 0 707,237 0 707,237
Proceeds from loans taken / loans undertaken 2,494,788 14,785,510 2,494,292 14,785,510
Loan repayments
Leasehold repayment obligations (debt securities)
(779,001)
(250,385)
(742,400)
(162,604)
0
(198,937)
0
(162,604)
Dividends paid (159,678) (2,068,902) (159,678) (2,068,902)
Total inflows / (outflows) from financing activities (c) 1,305,724 12,494,436 2,135,677 13,236,836
Net increase / (decrease) in cash and cash equivalents
(a) + (b) + (c)
212,685 4,423,712 258,409 3,755,259
Cash and cash equivalents start of period 1,869,531 5,682,955 1,643,977 5,538,691
Start-up cash of subsidiaries incorporated for the first time in
the Group
0 966 0 0
Cash and cash equivalents end of period Total 2,082,216 10,107,633 1,902,386 9,293,949

The Group and the Company did not adjust the comparative amounts of 2018 when applying IFRS 16 (see Note 4.6.3.3 for details).

The accompanying notes form an integral part of the interim condensed consolidated and corporate semi-annual financial statements.

4.1 Notes on the Interim Financial Statements for the period 01/01 - 30/06/2019

4.6.1 General Information

The company IKTINOS HELLAS S.A is a Greek société anonyme and constitutes the parent company of the group. It was established on 12/03/1974 by the Architect-Mechanic Evangelos Nik. Chaidas, who still remains the principal shareholder. It operates under the corporate name "GREEK MARBLE INDUSTRY TECHNICAL AND TOURISTIC COMPANY IKTINOS HELLAS S.A." and the distinctive title "IKTINOS HELLAS S.A." (GG 244-12/3/1974 issue for S.A. and Ltd (E.P.E.)). It has been registered at the Ministry of Development Registry under the registration number S.A 2304/06/Β/86/53.

The Group's seat is in Metamorfossi Attica (7, Lykovrisseos str., P.C. 144 52). The company's shares were listed in the Athens Stock Market in 2000.

Objective of the company, as such is defined in article 2 of the company's articles of association is as follows:

  • The exploitation in general of marble quarries, granites, decorative rocks, inert materials and related matters and byproducts, as well as the research, opening, shaping or exploitation of those quarries through a contracting or any other form of relationship, as well as the provision of know-how services.
  • The cutting and processing, in any manner, of those products.
  • The aforementioned products' export abroad.
  • The aforementioned products' trade domestically.
  • The conduct of any similar or related commercial activity, which is connected to the above objects.
  • The conclusion of work contracts, for placing all of the aforementioned products in all kinds of construction works both inlands as well as abroad.
  • The construction of all types of buildings, in owned or foreign properties, particularly via the known and common in transactions "flats-for-land" exchange system ("antiparochi"), the purchase and sale of property, the undertaking of any kind of technical works or studies, in combination or even separately, both inlands and abroad, on behalf of legal or natural persons of the State, Public Organizations as well as public utility Organizations, public law legal entities, etc., as well as the industry of construction materials industry and technical works materials, in general.

  • The exercise of any type of Touristic Businesses, particularly those regarding the construction and operation of hotels of sleep and food, of hostels, lodges, settlements, be-aches and, in general of areas on the seaside, or not, in Greece or abroad, and, in fact, either or owned or leased properties.

  • The undertaking of commercial agencies of any kind and subject matter, as well as the representation of various houses and businesses of the country or foreign, as well as the distribution, against consideration, of any object related to the objective of the company.
  • The production and trade of construction materials, their import as well as their export.
  • Production and exploitation of electric power out of renewable sources of energy (RSE), such as aeolian energy, solar energy, waves' energy, tidal energy, biomass, gases emitted out of landfill sites and waste treatment plants, biogases, geothermal energy, hydraulic energy exploited by hydropower stations, as well as photovoltaic energy.
  • The participation, in any manner and under any legal form, in any related, similar or identical, businesses, which operate individually or under a corporate form, that have been already established or are about to be established wither by it or by other persons, with the same objective or objectives related to those mentioned in the present article.

All the aforementioned objectives of the company are acted on both in the interior of Greece as well as in any other foreign country.

By the extraordinary General Meeting of Shareholders of 20th March 2012, the objective of the Company was extended as follows:

"Production and trade of agricultural products in Greece and abroad, whether these are produced in Greece or abroad, as well as the participation, in any manner and under any legal form, in any kind of related, similar or identical businesses, which operate individually or under a corporate form, that have been already established or are about to be established wither by it or by other persons, with the same objective or objectives related to those mentioned in the present article."

The basic sector in which IKTINOS HELLAS S.A. is business active today is the sector of marble quarrying, processing and trade in marbles and granites and other ornamental stones.

IKTINOS HELLAS S.A. participates in the following companies:

FIDIAS HELLAS S.A.

Semi-annual Financial Report for the period 01 January to 30 June 2019 25 The company was established in 1981 as a Limited Liability Company (E.P.E.), while in 1986 it was transformed into a S.A. Its primary object of business is marble processing, particularly the section of blocks, mainly for third parties (piecework), as well as the export of the aforementioned products abroad, any similar of related work, which is connected to the above objects.

ELECTRIC POWER PRIVATE CORPORATION S.A. (ID.E.H. S.A.)

IKTINOS HELLAS S.A., in the context of its direct business activity in the aeolian energy, has acquired at a 100% percentage on 21/12/2007, the company under the corporate name IDIOTIKI EPICHEIRISI HELEKTRISMOU S.A. (ELECTRIC POWER PRIVATE CORPORATION S.A.), which has as objective the production of electric power by any legal manner or means and, particularly, of the electric power which comes from renewable sources of energy.

KALLITECHNOKRATIS E.P.E.

The KALLITECHNOKRATIS PROVISION OF SERVICES E.P.E. company was established in 1999 and has been put into a liquidation process since 26/4/2007 which has not yet been completed. The company's objective was to develop a sales network abroad. Its business plan had been approved by the Ministry of Development and it had been included in the subsidies of the Business Operational Program (subprogram 4, measure 2, action 9 - CLUSTERS Networks). he Ministry of Development has rejected the approval of the grants and KALITECHNOCRATIS LTD has appealed to the Council of State. It is noted that the case was heard on 9 May 2006 and the recommendation of the judge (rapporteur) was in favor of the Company and a positive decision is expected for the Company. The company is owned by IKTINOS HELLAS SA with a percentage of 25% and FIDIAS HELLAS SA. with a percentage of 5%.

LATIRUS ENTERPRISES LIMITED

IKTINOS HELLAS S.A. as of 30/08/2018 holds the 100% of the Cypriot company under the corporate name LATIRUS ENTERPRISES LIMITED, which holds the 97,764% of the shares of IKTINOS TECHNICAL & TOURISTIC S.A. IKTINOS TECHNICAL & TOURISTIC S.A is owner of land area, near Sitia of Crete, which is 2,800 acres and according to an ongoing business plan, it is reserved for tourism development.

AIOLIKI MEGA ISSOMA S.A.

IKTINOS HELLAS S.A., in the context of its business activity in the aeolian energy, proceeded to establish by deed of incorporation no 8497/21-1-2010, at a 100% percentage, the "Aioliki Mega Issoma Société Anonyme of electric power production", which has as purpose the production of electric power in any legal manner or means and, particularly, of the electric power which comes from renewable sources of energy.

AIOLIKI LYKOFOLIA S.A.

IKTINOS HELLAS S.A., in the context of its business activity in the aeolian energy, proceeded to establish by deed of incorporation no 8854/24-2-2011, at a 100% percentage, the "Aioliki Lykofolia Société Anonyme of electric power production", which has as purpose the production of electric power in any legal manner or means and, particularly, of the electric power which comes from renewable sources of energy.

AIOLIKI MAVROLITHARO S.A.

IKTINOS HELLAS S.A., in the context of its business activity in the aeolian energy, proceeded to establish by deed of incorporation no 8855/24-2-2011, at a 100% percentage, the "Aioliki Mavrolitharo Société Anonyme of electric power production", which has as purpose the production of electric power in any legal manner or means and, particularly, of the electric power which comes from renewable sources of energy.

AIOLIKI SYNORA S.A.

IKTINOS HELLAS S.A., in the context of its business activity in the aeolian energy, proceeded to establish by deed of incorporation no 9377/21-3-2013, at a 100% percentage through its subsidiary company IDEH S.A., the "Aioliki Synora Société Anonyme of electric power production", which has as purpose the production of electric power in any legal manner or means and, particularly, of the electric power which comes from renewable sources of energy.

IKTINOS MARMARON

IKTINOS HELLAS, aiming at improving the services it provides in the domestic market and at undertaking big projects, decided to establish by deed of incorporation no 275/18-12-2015, a new company, IKTINOS MARMARON, which essentially comprises a continuation of the establishment of the store at Kifissias Avenue.

4.6.2 Framework for preparation of the condensed Financial Statements

The condensed financial statements have been prepared in accordance with the International Accounting Standard ("IAS") 34 and must be considered in combination with the published annual financial statements of 31st December 2018 which are available at Company's website.

Semi-annual Financial Report for the period 01 January to 30 June 2019 27 The accounting principles and the accounting methods on the basis of which the condensed financial statements were prepared and presented, are consistent to those used for preparing the annual financial statements of the Group for fiscal year ended on 31 December, apart from the changes below.

Any differences in the sums are due to rounding.

4.6.3 Amendments to Accounting Principles

The Group has adopted all new standards and interpretations, which have become mandatory for the years that began on 1 January 2018. Section 4.6.3 sets out the standards that have been applied by the Company and have been adopted since 1 January 2019

4.6.3.1 New Standards, Interpretations, Revisions and Amendments of existing Standards that have been put in force and have been adopted by the European Union

The following new standards, interpretations and amendments of the standards have been issued by the International Accounting Standards Board (IASB), been adopted by the European Union and their application is obligatory since 01/01/2019 or subsequently.

IFRS 16 "Leases" (applies to annual periods starting on or after 01/01/2019)

In January 2016, the IASB issued a new Standard, IFRS 16. The purpose of the IASB was to develop a new Standard for leases that sets out the principles that both parties must apply to a contract - that is, the client ("The lessee") and the supplier ("the lessor") - to provide relevant information on the lease in a way that accurately depicts these transactions. To achieve this, the lessee must recognize the assets and liabilities arising from the lease. The Group considered the impact of the new standard on the consolidated and corporate interim condensed financial statements. A detailed report on this is presented in Note 4.6.3.3.

IFRIC 23 "Uncertainty over Income Tax Treatments" (applies to annual periods starting on or after 01/01/2019)

In June 2017, the IASB issued a new IFRIC Interpretation 23. IAS 12 "Income Taxes" defines the accounting for current and deferred tax, but does not specify how its effects should be reflected. uncertainty. IFRIC 23 includes the additional requirements of IAS 12, specifying how the effects of uncertainty on the accounting treatment of income taxes should be reflected. The new Interpretation has no effect on the condensed and consolidated Interim Condensed Financial Statements.

Amendments on the IFRS 9: "Prepayment Features with Negative Compensations" (effective for annual periods beginning on or after 01/01/2019)

Semi-annual Financial Report for the period 01 January to 30 June 2019 28 In October 2017, the IASB issued limited-purpose amendments to IFRS 9. Under existing IFRS 9 requirements, an entity would measure a financial asset with a negative return on fair value through profit or loss, as its attribute " negative compensation" could be considered to create potential cash flows that do not consist solely of capital and interest payments. Under the amendments, entities may measure specific prepaid financial assets with a negative return on amortized cost or fair value through other comprehensive income, provided a specific condition is met. The amendments have no effect on the consolidated and corporate interim condensed financial statements.

Amendments to IAS 28: "Long-term Interests in Associates and Joint Ventures" (effective for annual periods beginning on or after 01/01/2019)

In October 2017, the IASB issued limited-purpose amendments to IAS 28. The purpose of these amendments is to provide clarifications on the accounting for long-term holdings in an associate or joint venture - to which the equity method does not apply - IFRS 9. The amendments have no effect on the consolidated and corporate interim condensed financial statements.

IFRS Annual Improvements - 2015-2017 Cycle (effective for annual periods beginning on or after 01/01/2019)

In December 2017, the IASB issued the "Annual Improvements to IFRSs - 2015-2017 Cycle", which consists of a series of amendments to certain Standards and is part of the program for annual improvements to IFRSs. The amendments included in this cycle are: IFRS 3 - IFRS 11: Equity Shares previously Acquired by the Acquirer in a Co-operation, IAS 12: Impact of Income Tax on Payments for Financial Instruments Classified as Equity, IAS 23: Borrowing costs eligible for capitalization. The amendments are effective for annual periods beginning on or after 1 January 2019. The amendments have no effect on the consolidated and separate interim condensed financial statements.

Amendments to IAS 19: "Plan Amendment, Curtailment or Settlement of Defined Benefit Cost" (effective for annual periods beginning on or after 01/01/2019)

In February 2018, the IASB issued limited-purpose amendments to IAS 19 that require an entity to use up-to-date actuarial assumptions when determining current service costs and net interest for the remaining period after the amendment, the cut. or arranging for a defined benefit plan. The purpose of these amendments is to enhance understanding of the financial statements and to provide more useful information to their users. The amendments have no effect on the consolidated and corporate interim condensed financial statements.

4.6.3.2 New Standards, Interpretations, Revisions and Amendments of existing Standards that have not been put in force or have not been adopted by the European Union

The following New Standards, Interpretations, Revisions and Amendments of Standards, have been issued by IASB but they have not yet been force or they have not yet been adopted by the European Union.

Revision of the Conceptual Framework for Financial Reporting (effective for annual periods beginning on or after 01/01/2020)

In March 2018, the IASB revised the Financial Reporting Conceptual Framework, which was intended to incorporate significant issues that were not covered, as well as update and provide guidance on specific issues. The revised Conceptual Framework for Financial Reporting includes a new measurement chapter, which discusses the concept of measurement, including factors to be considered when selecting a measurement basis, issues of presentation and disclosure in the Financial Statements and guidance. regarding the derecognition of assets and liabilities from the Financial Statements. Further, the revised Conceptual Framework for Financial Reporting includes improved definitions of assets and liabilities, guidance to assist in applying those definitions, updating criteria for recognizing assets and liabilities, as well as significant clarifications. areas such as the roles of management, conservatism and uncertainty in the measurement of financial reporting. The Group will consider the impact of all of the above on its Financial Statements, although they are not expected to have any. The above have not been adopted by the European Union.

Amendments to References to the Conceptual Framework in IFRS (effective for annual periods beginning on or after 01/01/2020)

In March 2018, the IASB issued Amendments to the Conceptual Framework in IFRS following its revision. Some Standards include explicit references to earlier versions of the Financial Reporting Framework. The purpose of these amendments is to update these references and to support the transition to the revised Financial Reporting Framework. The Group will consider the impact of all of the above on its Financial Statements, although they are not expected to have any. The above have not been adopted by the European Union.

Amendments to IFRS 3: "Definition of a Business"(effective for annual periods beginning on or after 01/01/2020)

n October 2018, the IASB issued limited-purpose amendments to IFRS 3 to improve the definition of a business. The amendments will help companies determine whether an acquisition is a business combination or an acquisition of assets. The amended definition indicates that the outflow of a business is to provide goods and services to customers, while the earlier definition focused on returns in the form of dividends, lower costs or other financial benefits to investors and third parties. In addition to modifying the business definition, the IASB through this issue provides additional guidance. The Group will consider the impact of all of the above on its Financial Statements, although they are not expected to have any. The above have not been adopted by the European Union.

Amendments to IAS 1 and IAS 8: "Definition of Substantive" (effective for annual periods beginning on or after 01/01/2020)

In October 2018, the IASB issued amendments to the definition of material to make it easier for companies to exercise a material judgment. The definition of material helps companies decide which information should be included in their financial statements. The new definition amends IAS 1 and IAS 8. The amendments clarify the definition of material and how it should be applied, including the guidance that has so far been included in other Standards. The Group will consider the impact of all of the above on its Financial Statements, although they are not expected to have any. The above have not been adopted by the European Union.

IFRS 17 "Insurance Contracts" (effective for annual periods beginning on or after 01/01/2021)

In May 2017, the IASB issued a new Standard, IFRS 17, replacing an interim Standard, IFRS 4. The purpose of the IASB's work was to develop a single principle-based standard for accounting for all types of insurance contracts, including reinsurance contracts held by an insurer. A single principles-based standard will enhance the comparability of financial reporting between entities, jurisdictions and capital markets. IFRS 17 sets out the requirements that an entity should apply to financial information related to the insurance contracts it issues and the reinsurance contracts it holds. The Group will consider the impact of all of the above on its Financial Statements, although they are not expected to have any. The above have not been adopted by the European Union.

4.6.3.3 Impact on the Financial Statements of 30/06/2019 from the application of IFRS 16 "Leases" and New Accounting Policies for Leases

α) First application of IFRS 16 on 01/01/2019

As a result of the changes in accounting policies as described above, the Group and the Company adopted IFRS 16 on January 1, 2019, applying the amended retrospective approach. Based on this approach, the Group recognized an obligation that measured its present value as a result of the discounting of the residual leases at the incremental borrowing cost effective at the date of the initial application of the Standard on 01/01/2019.

Further, it recognized a right to use the asset by measuring that right at an amount equal to the corresponding liability recognized, adjusted for any lease payments that existed immediately before the date of initial application. The comparative information was not recast, and there was no effect of applying the new Standard on the Retained Earnings Balance at its first application on 01/01/2019.

Further, the Group applied the exemption granted by the Standard with respect to the lease determination and more specifically, the applicable practice of IFRS 16, whereby it does not need to

reassess whether a contract is or contains a lease at the date of the first transition. . This means that IFRS 16 has been applied to contracts that have already been recognized as leases by applying IAS 17 "Leases" and IFRIC 4 "Determining Whether an Arrangement Contains a Lease".

Finally, the Group also used the standard exemptions for short-term leases and low value leases. Regarding the discount rate, the Group decided to apply a single discount rate to each category of leases with similar characteristics.

The adoption of IFRS 16 had the following significant effects for the Group:

A) Leases previously classified as operating:

  • The Group had operating leases relating to land, buildings and means of transport. The Standard affected the accounting for the Group's operating leases. Specifically, when adopting IFRS 16, liabilities arising from operating leases - which, according to IAS 17, had to be disclosed in the notes to the financial statements - appear as assets (rights to use) and liabilities in the statement of financial position. The increase in lease liabilities led to a corresponding increase in the Group's net lending.

  • The nature of the costs associated with these leases has changed, with the application of IFRS 16 replacing the operating cost of leasing with depreciation expense for assets that relate to right to use and interest expense on liabilities incurred.

  • In the statement of equity in the first application there was no effect as the Group chose to recognize an equal liability with right to use.

  • In the cash flow statement, the part relating to the repayment of rents will reduce cash flows from financing activities and is no longer included in net cash flows from operating activities. Only interest repayments are still included in net cash flows from operating activities.

B) Leases previously classified as financial:

The Group did not change the pre-existing book values of tangible fixed assets and financial liabilities at the date of application of IFRS 16 for leases that were classified as finance leases (the rights to use fixed assets and the lease liabilities are equal to the leased assets and liabilities). IAS 17). The requirements of IFRS 16 have been applied to these leases as of 1 January 2019.

IFRS 16 did not have a significant impact on the accounting for leases, therefore, the Group has not made any significant changes to its leases under which it operates as a lessor.

The effect (increase / (decrease)) of IFRS 16 application on 1/1/2019 was as follows:

1/1/2019 1/1/2019
Group Company
Tangible fixed assets
Rights to Use Land and Buildings 206,861 146,159
Rights of use of means of transport 306,855 213,002
Total non-current assets 513,716 359,160
TOTAL ASSETS 513,716 359,160
Lease liabilities 253,151 149,905
Total short-term liabilities 253,151 149,905
Lease liabilities 260,564 209,255
Total long-term liabilities 260,564 209,255
TOTAL LIABILITIES 513,716 359,160

The Group has had no impact on equity since the initial application of IFRS 16.

b) New accounting policy for leases

Until 2018, leases were classified as either an operating or a finance lease in accordance with the requirements of IAS 17. Leases were capitalized at the inception of the lease at the lower of the fair value of the asset and the present value of the minimum leases, each. of which were identified at the commencement of the lease. Each rent was split between the liability and the interest. Operating lease payments were recorded in the Statement of Comprehensive Income throughout the lease. As of 01/01/2019, IFRS 16 removes the lessee's classification of operating leases and finance leases, and all leases considered as assets of the "Financial Statement" by recognizing a "right to use" of assets and a "lease obligation".

Recognition and initial measurement of right to use assets

At the start of a lease period, the Group recognizes a right to use an asset and a lease obligation by measuring the right to use the asset at cost.

The cost of the right to use an asset includes:

  • the amount of the initial measurement of the lease liability (see below),
  • any lease payments made prior to or at the start of the lease period, reduced by the lease incentives received,

  • the initial direct costs borne by the lessee, and

  • an estimate of the costs to be incurred by the Group in disassembling and removing the leased asset, restoring the premises where the leased asset is located or restoring the asset as required by the terms and conditions of the lease . The Group undertakes these expenses either at the start of the lease term or as a consequence of using the leased asset during a specific period.

Initial measurement of lease liability

At the start of the lease term, the Group measures the lease liability at the present value of the lease payments outstanding at that date. When the imputed lease rate is feasible to determine, then lease payments will be discounted using that interest rate. Otherwise, the Group's marginal lending rate is used.

At the lease start date, the lease payments included in the lease liability measurement include the following payments for the right to use the asset during the lease term, if they have not been paid at the lease start date:

(a) fixed payments less any lease payments receivable;

(b) any variable lease payments that depend on the future change in indices or interest rates initially measured using the index or interest rate at the date of the lease term;

(c) the amounts expected to be paid by the Group as residual value guarantees;

(d) the exercise price of the option if it is reasonably certain that the Group will exercise the option; and

(e) the payment of termination penalties if the lease term reflects the exercise of the Group's right to terminate the lease.

Subsequent measurement

Subsequent measurement of asset use right

After the start date of the lease period, the Group measures the right to use the asset with the cost model.

The Group measures the right to use an asset at cost:

  • (a) minus any accumulated depreciation and accumulated impairment losses, and
  • (b) adjusted for any subsequent measurement of the lease liability;

The Group applies the requirements of IAS 16 regarding the amortization of the right to use an asset, which it examines for impairment. The right to use an asset is amortized over the shorter of the useful life of the asset or its lease term, using the straight-line method.

Subsequent measurement of liability

After the start date of the lease period, the Group measures the lease liability as follows:

  • (a) increasing the carrying amount to reflect the financial cost of the lease obligation;
  • (b) by reducing the carrying amount to reflect the rents paid, and
  • (c) recalculating the carrying amount to reflect any revaluation or modification of the lease.

The financial cost of a lease liability is allocated during the lease period in such a way as to give a fixed periodic rate of interest on the outstanding balance of the liability.

After the effective date of the lease period, the Group recognizes profit or loss (unless costs are included in the carrying amount of another asset for which other relevant Standards are applied) and the following two items:

(a) the financial cost of the lease obligation, and

(b) variable lease payments not included in the measurement of the lease liability during the period in which the event that triggers such payments happened.

c) Recognition of leases in the financial statements as of 30/06/2019

After initial recognition, the Group measures the usage rights and depreciates them at a fixed rate throughout the lease term. Accordingly, the Group measures the above lease liabilities and adjusts them based on the recognition of the relevant interest and lease payments.

Statement of Financial Position

Fixed assets include the following Right-of-Use Assets through leases according to IFRS 16 leases:

GROUP

PLOTS & MEANS OF
BUILDINGS TRANSPORT MACHINERY
Rest of period beginning before the
application of IFRS 16 0 0 2,507,004
Impact of the application of IFRS 16 206,861 306,855 0
Rest of period beginning after the
application of IFRS 16 206,861 306,855 2,507,004
Additions of period 11,424 83,616 872,539
Depreciation of period -56,824 -60,436 -193,542
End of Period balance 161,460 330,035 3,186,001

COMPANY

PLOTS &
BUILDINGS
MEANS OF
TRANSPORT
MACHINERY
Rest of period beginning before the
application of IFRS 16 0 0 2,507,004
Impact of the application of IFRS 16 146,159 213,002 0
Rest of period beginning after the
application of IFRS 16 146,159 213,002 2,507,004
Additions of period 0 71,775 872,539
Depreciation of period -28,299 -39,642 -193,542
End of Period balance 117,859 245,135 3,186,001

4.6.4 Group structure and company consolidation method

The Group companies that are included in the consolidated financial statements are:

NAMES SEAT TURNOUT CONSOLIDATION
METHOD
IKTINOS HELLAS SA Lykovrysis 7, Metamorfosi Attica Mother Total Consolidation
FIDIAS HELLAS SA Tinou 12A, Vrilissia Attica 90.00% Total Consolidation
KALLITECHNOKRATIS LTD Lykovrysis 7, Metamorfosi Attica 30.00% Total Consolidation
IKTINOS MARMARON SA 112 Kifissias Ave.-Marousi 100.00% Total Consolidation
IDEI SA 11
Aeschylou
and
Agioi
Anargyroi,
Drama
100.00% Total Consolidation
AEOLIKI MEGA IISOMA SA Lykovrysis 7, Metamorfosi Attica 100.00% Total Consolidation
AEOLIKI MAVROLITHAROS
SA
Lykovrysis 7, Metamorfosi Attica 100.00% Total Consolidation
AEOLIKI LYKOFOLIA SA Lykovrysis 7, Metamorfosi Attica 100.00% Total Consolidation
AEOLIKI SYNORA SA Lykovrysis 7, Metamorfosi Attica 100.00% Total Consolidation
IKTINOS
TECHNICAL
AND
Lykovrysis 7, Metamorfosi Attica 97.764% Total Consolidation
TOURISTIC SA
LATIRUS ENTERPRISES Ltd Florinis 11-Nicosia 100.00% Total Consolidation

The company applies the method of total consolidation of its subsidiary KALLITECHNOCRATIS LTD. because the parent company is in control of the amended IAS 27. The Company has effective and formal management of that subsidiary because: (a) Ms. Ioulia Haida (Vice President of the Board of Directors of

the Parent Company) is a liquidator of KALLITECHNOCRATES LTD (b) its effective operation is carried out with the assistance of the parent's administrative and financial services.

4.6.5 Securities

It is noted that on the property at 7 Lykovrisi Street, the company has pledged 6,500,000 euro (first mortgage) to secure the EUR 4,999,986 common bond loan signed with EUROBANK on 22/10/2008 and amended 17 / 10/2016 (balance as at 30/06/2019 277,777 euros), as it has entered into foreclosures of € 5,000,000 (second mortgage) in securing the 7,000,000 euro common bond loan signed with the COMMERCIAL BANK (now ALPHA) BANK) on 17.10.2008 and amended on 31.1.2017 (balance is 30 / EUR 2,088,475 06/2019). There are no notes on the fixed assets of the subsidiaries.

4.6.6 Contingent Receivables - Liabilities

There are no litigation or arbitration disputes that have a significant impact on the financial position or operation of the Group.

The unaudited tax years of the Group companies are as follows:

NAMES SEAT INCOMPATIBLE
TAX USES
IKTINOS HELLAS SA Lykovrysis 7, Metamorfosi Attica -
FIDIAS HELLAS SA Tinou 12A, Vrilissia Attica 2010
UNDER
KALLITECHNOKRATIS LTD Lykovrysis 7, Metamorfosi Attica LIQUIDATION
IKTINOS MARBLE SA 112 Kifissias Ave.-Marousi
11
Aeschylou
and
Agioi
Anargyroi,
2015
IDEI SA Drama 2010
AEOLIKI MEGA IISOMA SA Lykovrysis 7, Metamorfosi Attica 2014/-2018
AEOLIKI MAVROLITHARO
SA
Lykovrysis 7, Metamorfosi Attica 2011-2012 & 2014-
2018
AEOLIKI LYKOFOLIA SA Lykovrysis 7, Metamorfosi Attica 2011-2012 & 2014-
2018
AEOLIKI SYNORA SA Lykovrysis 7, Metamorfosi Attica 2014/-2018
IKTINOS TECHNICAL AND
TOURISTIC SA
Lykovrysis 7, Metamorfosi Attica 2010/-2018
LATIRUS Ltd Florinis 11-Nicosia 2006/-2018

For the unaudited tax years listed in the table above, additional taxes and surcharges may be imposed at the time they are examined and finalized by the competent authorities. The Group estimates that any liabilities that are expected to arise from the audit of past years will not have a significant impact on the Group's financial figures.

For the years 2011-2013, Greek Societes Anonymes, whose annual financial statements are compulsorily audited, is required to obtain an "Annual Certificate" provided for in paragraph 5 of article 82 of Law 2238/1994, which is issued after tax audit. conducted by the same statutory auditor or audit firm that audits the annual financial statements. From 2014 onwards, the aforementioned Greek Societe Anonyme, except that pursuant to POL.1124 / 2015 are excluded from the annual certificate by statutory auditors provided by the provisions of article 65A of Law 4174/2013, as well as gross income. each of them do not exceed the amount of one hundred and fifty thousand euros per year, are required to obtain an "Annual Certificate" provided by the provisions of article 65A par.1 of Law 4174/2013. The result of the above audits results in the issuance of a tax certificate, which, if the relevant conditions are met, replaces the audit by the public authority, but retains the right of subsequent audit without terminating its tax liabilities for the financial year in question. Since 2016 with recent relevant legislation, this audit has now become optional. The Group has chosen to continue to receive the Annual Certificate for companies that meet the criteria of POL 1124/2015.

For fiscal year 2087, the tax audit for the issuance of a "Tax Compliance Report" for the Company and its subsidiaries IKTINOS MARMARON SA, FIDIAS HELLAS SA and IDEI SA is already underway, while no significant tax liabilities are expected to arise beyond those recorded and reflected in the financial statements.

4.6.7 Provisions

The Group's and the Company's provisions are analyzed as follows:

THE GROUP THE COMPANY
Provisions Provisions
Balances as of January 1, 2018 142,701 110,882
Additional period provisions:
Tax on unaudited uses
Aeolian farm restoration costs 1,591
Quarry resroration costs 6,653 6,653
Provisions recognized in fixed assets 102,988 102,988
Balances as of December 31, 2018 253,934 220,523
Additional period provisions:
Tax on unaudited uses
Aeolian farm restoration costs 835
Quarry restoration costs 5,689 5,689
Balances as of June 30, 2019 260,458 226,212

4.6.8 Financial information by sector

A business segment is a set of assets and activities that provide products and services that are subject to risks and returns that are different from those of other business segments.

A geographical area is defined as a geographic area in which products and services are provided and subject to different risks and returns from other areas.

The Group is active in the exploitation of marble quarries (Marble mining and trading), in the field of Aeolian energy, as well as in Real Estate. Geographically, the Group operates in the Greek Territory, in the Eurozone and in other countries.

Primary information sector - business sectors

The results for each sector for the period 1 January to 30 June 2019 and respectively for the period 1 January to 30 June 2018 were as follows:

THE GROUP
1/1 - 30/6/2019 Marbles Aeolian
Energy
REAL
ESTATE
Grand total
Total gross sales / sector 22,767,709 1,193,801 0 23,961,510
Intra-group sales / sector (714,769) 0 0 (714,769)
Net Sales by Sector 22,052,940 1,193,801 0 23,246,741
Cost of Sold (12,537,498) (1,319,715) 0 (13,857,213)
Mixed results 9,515,442 (125,914) 0 9,389,528
Operational results (5,538,055) 237,098 (18,799) (5,319,757)
Financial results (839,568) (90,474) (998) (931,040)
Investment Financing Results 0 0 0 0
Profit before tax 3,137,818 20,710 (19,797) 3,138,731
Income tax (905,075) (202,798) (5,355) (1,113,228)
Net profit / (loss) 2,232,743 -182,088 (25,152) 2,025,503
Depreciation 1,271,407 709,135 0 1,980,542
Operational Results before Taxes,
Finance, Investment Results and
Depreciation (EBITDA)
5,248,794 820,319 (18,799) 6,050,313
THE GROUP
1/1 - 30/6/2018 Marbles Aeolian
Energy
REAL
ESTATE
Grand total
Total gross sales / sector 32,119,665 1,001,049 0 33,120,714
Intra-group sales / sector -1,044,287 0 0 -1,044,287
Net Sales by Sector 31,075,378 1,001,049 0 32,076,428
Cost of Sold -13,871,628 -1,292,152 0 -15,163,780
Mixed results 17,203,750 -291,102 0 16,912,648
Operational results -5,995,123 227,936 -24,212 -5,791,399
Financial results -571,020 -151,512 0 -722,533
Investment Financing Results 0 0 3,459,780 3,459,780
Profit before tax 10,637,607 -214,678 3,435,568 13,858,496
Income tax -3,061,227 -212,136 0 -3,273,363
Net profit / (loss) 7,576,379 -426,814 3,435,568 10,585,133
Depreciation 709,640 679,804 0 1,389,444
Operational Results before Taxes,
Finance, Investment Results and
Depreciation (EBITDA)
11,918,267 616,638 -24,212 12,510,693

The assets and liabilities for each segment as of 30 June 2019 and 31 December 2018, respectively, were as follows:

THE GROUP
1/1 - 30/6/2019 Marbles Aeolian
Energy
REAL
ESTATE
Grand total
Assets of Sector 70,956,946 23,563,727 29,214,479 123,735,152
Consolidated Assets 70,956,946 23,563,727 29,214,479 123,735,152
Sector Liabilities 62,050,999 12,320,189 4,347,893 78,719,080
Consolidated Liabilities 62,050,999 12,320,189 4,347,893 78,719,080
1/1 - 31/12/2018 Marbles Aeolian
Energy
REAL
ESTATE
Grand total
Assets of Sector 64,463,908 24,654,142 29,199,938 118,317,988
Consolidated Assets 64,463,908 24,654,142 29,199,938 118,317,988
Sector Liabilities 53,402,583 13,120,446 4,535,748 71,058,777
Consolidated Liabilities 53,402,583 13,120,446 4,535,748 71,058,777

Secondary information sector - geographical areas

The Group's headquarters and areas of activity are Greece, Eurozone and Asian countries and third countries.

The Group's sales by geographical segment are analyzed as follows:

THE GROUP THE COMPANY
SALES 1/1 -
30/6/2019
1/1 -
30/6/2018
1/1 -
30/6/2019
1/1 -
30/6/2018
Eurozone 2,223,676 2,653,196 1,983,725 1,878,017
Other European countries 807,445 1,335,014 807,445 1,335,014
Asia 13,598,370 19,617,393 13,598,370 19,617,393
America 2,201,222 2,190,476 1,955,650 2,190,476
Australia 24,425 23,622 24,425 23,622
Africa 486,309 311,219 486,309 311,219
Export through third parties 1,341,533 1,734,064 1,341,533 1,734,064
Greece 2,563,761 4,211,444 709,162 1,415,475
Total 23,246,741 32,076,428 20,906,619 28,505,280

4.6.9 Changes in Tangible, Intangible Assets and Real Estate Investment

Tangible assets

THE GROUP
Plots &
Buildings
Means of transport
& machinery
Furniture and
Other Equipment
Ιmm. property
Under execution
Total
Book value as of 1 January 2018 12,985,437 28,330,975 141,967 3 41,458,381
Gross book value 17,818,226 56,549,928 1,159,941 0 75,528,096
Accumulated depreciation and impairment (4,077,129) (25,611,347) (965,852) 3 (30,654,325)
Book value as of 31 December 2018 13,741,096 30,938,582 194,089 3 44,873,771
Gross book value 18,542,471 58,233,725 1,277,151 0 78,053,348
Accumulated depreciation and impairment (4,334,238) (27,356,062) (993,532) 3 (32,683,829)
Book value as of 30 June 2019 14,208,233 30,877,664 283,619 3 45,369,519
Plots &
Buildings
Means of transport
& machinery
Furniture and
Other Equipment
Imm. Property
Under execution
Total
Book value as of 1 January 2018 12,985,437 28,330,975 141,967 3 41,458,381
Additions 1,153,309 5,695,174 132,303 0 6,980,787
Sales – Reductions 0 (40,858) 0 0 (40,858)
Depreciation (397,649) (3,052,258) (80,181) 0 (3,530,089)
Sales - Depreciation and amortization 0 5,550 0 0 5,550
Transport 0 0 0 0 0
Book value as of 31 December 2018 13,741,096 30,938,582 194,089 3 44,873,771
Impact from the application of IFRS 16 (Note.
4.6.3.3)
206,861 306,855 0 0 513,716
Additions 517,384 2,727,484 117,210 0 3,362,078
Sales – Reductions 0 (1,350,542) 0 0 (1,350,542)
Depreciation (257,109) (1,784,869) (27,680) 0 (2,069,658)
Sales - Depreciation and amortization 0 40,154 0 0 40,154
Transfer 0 0 0 0 0
Book value as of 30 June 2019 14,208,233 30,877,664 283,619 3 45,369,519
THE COMPANY
Plots &
Buildings
Means of transport
& machinery
Furniture and
Other Equipment
Imm. Property
Under execution
Total
Book value as of 1 January 2018 8,836,180 5,766,358 121,999 3 14,724,539
Gross book value 12,091,974 20,443,014 1,080,066 3 33,615,056
Accumulated depreciation and impairment (2,441,076) (10,340,266) (907,339) 0 (13,688,681)
Book value as of 31 December 2018 9,650,898 10,102,748 172,726 3 19,926,375
Gross book value 12,686,103 22,005,944 1,166,917 3 35,858,966
Accumulated depreciation and impairment -2,565,511 -11,186,033 -929,707 0 (14,681,252)
Book value as of 30 June 2019 10,120,592 10,819,911 237,209 3 21,177,715
Plots &
Buildings
Means of transport
& machinery
Furniture and
Other Equipment
Imm. Property
Under execution
Total
Book value as of 1 January 2018 8,836,180 5,766,358 121,999 3 14,724,539
Additions 994,704 5,643,343 117,435 0 6,755,482
Sales – Reductions 0 (40,858) 0 0 (40,858)
Depreciation (179,986) (1,271,645) (66,707) 0 (1,518,337)
Sales - Depreciation and amortization 0 5,550 0 0 5,550
Transfer 0 0 0 0
Book value as of 31 December 2018 9,650,898 10,102,748 172,726 3 19,926,375
Impact from the application of IFRS 16 (Note.
4.6.3.3)
146,159 213,002 0 0 359,160
Additions 447,971 2,687,643 86,851 0 3,222,465
Sales – Reductions 0 (1,337,715) 0 0 (1,337,715)
Depreciation (124,435. (873,093) (22,368) 0 (1,019,897)
Sales - Depreciation and amortization 0 27,326 0 0 27,326
Transfer 0 0 0 0 0
Book value as of 30 June 2019 10,120,592 10,819,911 237,209 3 21,177,714

Intangible assets

THE COMPANY
Software Rights Total
Book value as of 1 January 2018 30,401 173,177 203,578
Gross book value 367,546 7,777,578 8,145,124
Accumulated depreciation and impairment (342,691) (638,822) (981,512)
Book value as of 31 December 2018 24,855 7,138,756 7,163,611
Gross book value 368,006 7,778,144 8,146,149
Accumulated depreciation and impairment (348,600) (830,639) (1,179,240)
Book value as of 30 June 2019 19,405 6,947,504 6,966,910
Software Rights Total
Book value as of 1 January 2018 30,400 173,177 203,578
Additions 7,486 7,141,145 7,148,631
sales-reductions 0 0 0
Depreciation (13,032) (175,566) (188,597)
Sales - Depreciation and amortization 0 0 0
Transport 0 0 0
Book value as of 31 December 2018 24,855 7,138,757 7,163,611
Additions 0 0 0
sales-reductions 460 566 1,026
Depreciation 0 0 0
Sales - Depreciation and amortization -5,910 -191,818 -197,727
Transport 0 0 0
Book value as of 30 June 2019 0 0 0
19,405 6,947,505 6,966,910
THE GROUP
Software Rights Other Total
Book value as of 1 January 2018 29,984 262,114 214,309 506,407
Gross book value 371,907 8,123,113 444,455 8,939,475
Accumulated depreciation and impairment (347,470) (895,419) (257,946) (1,500,835)
Book value as of 31 December 2018 24,437 7,227,694 186,509 7,438,640
Gross book value 372,367 8,123,679 444,455 8,940,501
Accumulated depreciation and impairment (353,380) (1,087,236) (271,702) (1,712,318)
Book value as of 30 June 2019 18,988 7,036,443 172,753 7,228,183
Software Rights Other Total
Book value as of 1 January 2018 29,984 262,114 214,309 506,407
Additions 10,480 7,141,145 0 7,151,625
sales-reductions 0 0 0 0
Depreciation (16,026) (175,566) (27,800) (219,392)
Transport 0 0 0 0
Book value as of 31 December 2018 24,438 7,227,693 186,509 7,438,640
Additions 460 566 0 1,026
sales-reductions 0 0 0 0
Depreciation (5,910) (191,818) (13,756) (211,483)
Transport 0
Book value as of June 30, 2019 18,988 7,036,442 172,753 7,228,183

4.6.10 Investments in Subsidiaries and Affiliates

Investments in subsidiaries are analyzed below:

FIDIAS SA
(90.00%
participation)
KALLITECHNOKRATIS
LTD (Participation
30,00%)
IDEI SA
(100%
participation)
IKTINOS
MARMARON
SA (100%
participation)
LATIRUS
(Participation
97.85%)
total
Acquisition value
31/12/2018
864,742 11,005 12,251,500 1,786,028 15,515,908 30,429,184
Participation purchase
Increase in share capital
1,800,000 0
1,800,000
Acquisition value
30/6/2019
864,742 11,005 14,051,500 1,786,028 15,515,908 32,229,184

On 10/4/2019, the share capital increase as of 30/06/2015 of the subsidiary IDEI SA was registered in GEMI. The company had participated in this share capital increase as per its participation percentage (100%) with a capitalization of receivables.

4.6.11 Share Capital

The company with the Annual Ordinary General Meeting of the Company's shareholders, held on 26.6.2019, decided to reduce the nominal value of the share from forty cents (0.40) to ten cents (0.10) by simultaneous increase of the total number of shares from 28,580,100 to 114,320,400 ordinary shares and the issue of 85,740,300 new shares.

The aforementioned 85,740,300 shares were distributed free of charge to the shareholders of the company with the replacement ratio of four (4) new ordinary shares for each one (1) old registered share. By the decision of the Company, the following were defined:

a) The date of termination of the right to participate in the split of shares was set on 05/08/2019.

b) From the same date, the Company's shares were traded on the Athens Stock Exchange at the new par value, namely, Euro 0.10 per share, without the right to participate in such distribution of free shares, and the starting price of the Company's shares. The Athens Stock Exchange was formed in accordance with the Athens Stock Exchange Regulation in conjunction with the decision No. 26 of the Board of Directors of the Athens Exchange, as in force.

c) The beneficiaries of the aforementioned corporate transaction were the Company's shareholders who were registered in the Intangible Securities System (ISS) archives on 06/08/2019.

The trading of the new shares on the Athens Exchange was scheduled for 08/08/2019. As of the same date the above shares were credited to the DSS shares and securities accounts.

(For a detailed analysis, see Board Report, Note B.1.3)

4.6.12 Loan liabilities

The Group's and the Company's loan liabilities are analyzed as follows:

THE GROUP THE COMPANY
30/6/2019 31/12/2018 30/6/2019 31/12/2018
Long term lending
Bank loan 17,921,569 19,304,533 15,029,900 15,834,531
Lease liabilities 1,509,096 779,168 1,449,534 779,168
Long term loans 19,430,665 20,083,701 16,479,434 16,613,699
Long-term Obligations paid in Next
Use
2,025,730 1,786,475 1,474,739 1,124,816
Short term loans
Bank loan 15,472,266 12,612,770 15,292,371 12,343,371
Lease liabilities 949,448 534,461 879,529 534,461
Total short-term loans 16,421,714 13,147,231 16,171,900 12,877,832
Loans total 37,878,109 35,017,407 34,126,073 30,616,346

The expiration dates of all loans are as follows:

THE COMPANY
Up to 1 year Between 1 and
5 years
Over 5 years
31 December 2018
Total Loans 13,468,187 9,994,531 5,840,000 29,302,718
Total leases 534,461 779,168 0 1,313,629
30 June 2019
Total Loans 16,767,110 9,709,900 5,320,000 31,797,010
Total leases 879,529 1,439,090 10,444 2,329,063
THE GROUP
Up to 1 year Between 1 and
5 years
Over 5 years Total
31 December 2018
Total Loans 14,399,245 13,464,533 5,840,000 33,703,778
Total leases 534,461 779,168 0 1,313,629
30 June 2019
Total Loans 17,497,997 12,601,569 5,320,000 35,419,566
Total leases 949,448 1,498,652 10,444 2,458,543

4.6.13 Sales

The sales of the Group and the Company are analyzed as follows

THE GROUP THE COMPANY
1/1 -
30/6/2019
1/1 -
30/6/2018
1/1 -
30/6/2019
1/1 -
30/6/2018
Merchandise 926,419 1,742,460 10,849 337,241
Products 8,492,862 8,405,838 8,186,564 7,258,507
Raw Materials 12,068,267 20,098,288 12,102,933 20,098,288
Services 419,345 598,913 484,081 603,960
Aeolian Energy 1,193,801 1,001,049 0 0
Other 146,046 229,879 122,193 207,284
TOTAL 23,246,741 32,076,428 20,906,619 28,505,280

4.6.14 Income tax

GROUP COMPANY
30/6/2019 30/6/2018 30/6/2019 30/6/2018
Period tax 919,305 3,247,189 886,670 3,238,431
Deferred income tax expense / (income) 188,183 26,174 -11,344 -180,093
Other taxes not included in operating costs 5,740 0 350 0
Total 1,113,228 3,273,363 875,676 3,058,338

4.6.15 Profit per share

THE GROUP THE COMPANY
30/6/2019 30/6/2018 30/6/2019 30/6/2018
Number of Shares 28,580,100 28,580,100 28,580,100 28,580,100
Minus: Number of Parent Own Shares (122,479) -113,979 (122,479) -113,979
Total shares 28,457,621 28,466,121 28,457,621 28,466,121
Earnings attributable to the shareholders of
the parent
2,024,101 10,575,984 2,336,033 7,017,485
Weighted average number of current shares 28,457,621 28,373,764 28,457,621 28,373,764
Basic profit per share (Euro per share) 0.0711 0.3727 0.0821 0.2473

4.6.16 Financial assets and liabilities

The fair values of all the Group's and Company's financial products that are disclosed in the financial statements do not differ from their carrying amounts.

The following is an analysis of the Group's and Company's financial assets and liabilities other than cash and cash equivalents:

THE GROUP 30/6/2019

Financial assets Debt instruments valued
at amortized cost
Equity instruments valued at
fair value through the results
Total
Customers 9,581,957 0 9,581,957
Other receivables and advances 9,037,780 0 9,037,780
Listed other financial information 0 40,564 40,564
Total 18,619,736 40,564 18,660,301
Long-term 58,871 0 58,871
Short-term 18,560,865 40,564 18,601,429
Total 18,619,736 40,564 18,660,301

THE GROUP 31/12/2018

Financial assets Debt instruments valued
at amortized cost
Equity instruments valued at
fair value through profit or
loss
Total
Customers 7,261,978 0 7,261,978
Other receivables and advances 7,199,664 0 7,199,664
Listed other financial information 0 18,528 18,528
Total 14,461,643 18,528 14,480,170
Long-term 58,781 0 58,781
Short-term 14,402,861 18,528 14,421,389
Total 14,461,643 18,528 14,480,170

THE GROUP

30/6/2019

Financial liabilities Financial liabilities
carried at amortized cost
Financial liabilities carried at
fair value through results
Total
Suppliers 9,702,269 0 9,702,269
Other liabilities 9,201,662 0 9,201,662
Borrowing and leasing 37,878,109 0 37,878,109
Total 56,782,040 0 56,782,040
Long-term 19,430,665 0 19,430,665
Short-term 37,351,375 0 37,351,375
Total 56,782,040 0 56,782,040

THE GROUP 31/12/2018

Financial liabilities Financial liabilities
carried at amortized cost
Financial liabilities carried at
fair value through results
Total
Suppliers 10,694,287 0 10,694,287
Other liabilities 4,139,736 0 4,139,736
Borrowing and leasing 35,017,407 0 35,017,407
Total 49,851,430 0 49,851,430
Long-term 20,083,701 0 20,083,701
Short-term 29,767,729 0 29,767,729
Total 49,851,430 0 49,851,430

THE COMPANY

30/6/2019

Financial assets Debt instruments valued
at amortized cost
Equity instruments valued at
fair value through results
Total
Customers 10,390,052 0 10,390,052
Other receivables and advances 8,208,908 0 8,208,908
Listed other financial information 0 40,564 40,564
Total 18,598,960 40,564 18,639,525
Long-term 34,846 0 34,846
Short-term 18,564,114 40,564 18,604,678
Total 18,598,960 40,564 18,639,525

THE COMPANY

31/12/2018

Financial assets Debt instruments valued
at amortized cost
Equity instruments valued at
fair value through results
Total
Customers 7,364,905 0 7,364,905
Other receivables and advances 8,343,348 0 8,343,348
Listed other financial information 0 18,528 18,528
Total 15,708,254 18,528 15,726,781
Long-term 34,764 0 34,764
Short-term 15,673,490 18,528 15,692,017
Total 15,708,254 18,528 15,726,781

THE COMPANY

30/6/2019

Financial liabilities Financial liabilities
carried at amortized cost
Financial liabilities carried at
fair value through results
Total
Suppliers 8,592,698 0 8,592,698
Other liabilities 9,723,451 0 9,723,451
Borrowing and leasing 34,126,073 0 34,126,073
Total 52,442,222 0 52,442,222
Long-term 16,479,434 0 16,479,434
Short-term 35,962,788 0 35,962,788
Total 52,442,222 0 52,442,222
THE COMPANY
31/12/2018
Financial liabilities Financial liabilities
carried at amortized cost
Financial liabilities carried at
fair value through results
Total
Suppliers 9,505,682 0 9,505,682
Other liabilities 4,490,281 0 4,490,281
Borrowing and leasing 30,616,346 0 30,616,346
Total 44,612,310 0 44,612,310
Long-term 16,613,699 0 16,613,699
Short-term 27,998,611 0 27,998,611
Total 44,612,310 0 44,612,310

Disclosures about IFRS Amendment 7 "Improvements to Disclosures on Financial Instruments"

Fair Value Hierarchy

The Group uses the following hierarchy to determine and disclose the fair value of financial instruments by valuation technique:

Level 1: negotiable prices in active markets for similar assets or liabilities

Level 2: valuation techniques for which all inputs that have a significant effect on the recorded fair value are observable either directly or indirectly.

Level 3: techniques using inputs that have a significant effect on the recorded fair value and are not based on observable market data

The following tables show the financial assets and liabilities measured at fair value as of 30 June 2019.

THE GROUP / THE COMPANY
Financial instruments at fair
value:
Fair value measurement at the end
of the reporting period using:
Description 30/6/2019
Level 1
Level 2
Financial assets are measured at fair
value through results
- Shares 40,564 40,564
Available-for-sale financial assets
Totals 40,564 40,564 0

Capital management policies and procedures

The objectives of the Group and the Company in relation to the management of capital are as follows:

  • to ensure the Company's ability to continue its operations smoothly; and
  • to provide a satisfactory return to shareholders by pricing services at cost and taking care of the capital structure,
  • to ensure the maintenance of sound capital indicators.

The Company monitors capital management on the basis of the following index, based on figures as shown in the Statement of Financial Position.

GROUP COMPANY
30/6/2019 31/12/2018 30/6/2019 31/12/2018
Loans 37,878,109 35,017,407 34,126,073 30,616,346
Minus: Cash (2,082,216) (1,869,531) (1,902,386) (1,643,977)
Net Lending 35,795,893 33,147,876 32,223,687 28,972,369
Total equity 45,016,072 47,259,211 41,945,053 43,877,661
Total Funds 45,016,072 47,259,211 41,945,053 43,877,661
Leverage index 0.7952 0.7014 0.7682 0.6603
Net Lending
The Group The Company
30/6/2019 31/12/201830/6/2019 31/12/2018
Long-term debt obligations 17,921,569 19,304,533 15,029,900 15,834,531
Lease liabilities 1,509,096 779,168 1,449,534 779,168
Short-term debt obligations 15,472,266 12,612,770 15,292,371 12,343,371
Long-term debt obligations payable in the following year 2,025,730 1,786,475 1,474,739 1,124,816
Short-term lease liabilities 949,448 534,461 879,529 534,461
Cash and Cash Equivalents -2,082,216 -1,869,531 -1,902,386 -1,643,977
Net Lending 35,795,893 33,147,876 32,223,687 28,972,369

4.6.17 Dividend Distribution

The Ordinary General Meeting of Shareholders of 26/6/2019 decided to distribute a dividend for the fiscal year 2018 amounting to 0.14935718 euro per share, with the amount of 10% tax deducted from that amount, in accordance with Article 64 of this Law. Law 4603/2019 and therefore the total dividend paid per share will amount to Euro 0.134421462.

According to the applicable law, the dividend corresponding to the 122,479 shares held by the Company increases the dividend of the other shares and therefore the total gross amount per share will amount to 0.15 euro and the net to 0.135 euro per share.

The closing date was Monday July 8, 2019. The dividend holders were the stock holders at the end of the Athens Stock Exchange meeting on Tuesday July 9, 2019 and the dividend payment began on Friday July 12, 2019.

4.6.18 Transactions with related parties

The amounts of the Company's purchases and sales from and to the related parties as defined by IAS 24, cumulatively from the beginning of the current period 1/1 - 30/06/2019 and 1/1 - 30/06/2018 respectively, as well as the balances of receivables and liabilities of the above companies as of 30/06/2019 and 31/12/2018 respectively are analysed as follows:

GROUP COMPANY
30/6/2019 30/6/2018 30/6/2019 30/6/2018
Sales of merchandise / services
Subsidiaries 316,371 511,762
Totals 316,371 511,762
Other Income / Expenses
Subsidiaries 36,000 36,000
Other Related Parties 0. 0.
Totals 36,000 36,000
Goods / Services Markets
Subsidiaries 427,264 550,030
Totals 427,264 550,030
30/6/2019 31/12/2018 30/6/2019 31/12/2018
Receivables
Subsidiaries 2,502,272 3,725,737
Other Related Parties 10,488 10,488 10,488 10,488
Totals 10,488 10,488 2,512,760 3,736,225
Liabilities
Subsidiaries
638,002 528,072
Other Related Parties
Totals 638,002 528,072

The above transactions and balances have been eliminated from the consolidated financial statements of the Group.

4.6.19 Benefits to Management

During the period 01/01-30/06/2019 and the corresponding period 01 / 01-30 / 06/2018 the following benefits were provided to management:

30/6/2019 30/6/2018
Remuneration to BoD members and other
executives
249,269 249,415
Sales to BoD members and other executives 0 374,018
30/6/2019 31/12/2018
Receivables from BoD members and other
executives
73,367 73,827
Liabilitiess of BoD members and other executives 2,765,175 437,788

Also, no loans or board fees have been provided for the respective periods.

4.6.20 Number of employees

THE GROUP THE COMPANY
30/6/2019 30/6/2018 30/6/2019 30/6/2018
Employees 161 156 147 138
Wage earners 274 259 266 247
Total 435 415 413 385

4.6.21 Events after the reference date

On 24/07/2019, the decision of the Board of Directors, Department of Supervision of Listed societes anonymes and Athletic societes anonymes of the Ministry of Economy and Development was published approving the amendment of article 5 of the Company's Articles of Association regarding the reduction of the nominal value of the share from forty cents (0.40) to ten cents (0.10) with a simultaneous increase of the total number of shares from 28,580,100 to 114,320,400 common ordinary shares (split) and the issuance of 85,740,300 new shares.

The Athens Stock Exchange Corporate Actions Committee, at its meeting on 31/7/2019, approved the listing for trading of the new shares of the Company in accordance with the above.

By the decision of the Company, the following were defined:

a) The date of termination of the right to participate in the split of shares was set on 05/08/2019. b) From the same date, the Company's shares were traded on the Athens Stock Exchange at the new nominal value, namely, 0.10 Euro per share, c) Beneficiaries of the aforementioned corporate transaction were the Company's shareholders who were registered in the Dematerialized Securities System (DSS) on 06/08/2019.

The trading of the new shares on the Athens Exchange was scheduled for 08/08/2019. As of the same date the above shares were credited to the shareholders' DSS shares and securities accounts. (see note B.1.3)

Apart from the above there are no other significant events after 30 June 2019 that relate to either the Group or the Company, which are required by IFRS.

THE PRESIDENT OF THE BOD THE VICE-PRESIDENT THE CHIEF FINANCIAL OFFICER & MANAGING DIRECTOR (CEO)

EVANGELOS N. HAIDAS IOULIA HAIDA PERISTERIS KATSIKAKIS ID Card No. ΑΕ 079957 ID Card No. Ξ 371470 License No. OEE 18896 ID Card No.Χ 630853

Talk to a Data Expert

Have a question? We'll get back to you promptly.