## **" ELGEKA S.A. TRADE - DISTRIBUTIONS - REPRESENTATIONS - INDUSTRY "**
## **G.C.R. Number: 57298604000**
## **HEAD OFFICE: INDUSTRIAL AREA OF SINDOS, DELTA MUNICIPALITY - THESSALONIKI SUMMARY FINANCIAL DATA & INFORMATION FOR THE YEAR 1 January 2016 - 31 December 2016**
(According to Law 2190, article 135 - for companies which prepare annual financial statements, consolidated and stand alone, in accordance with IFRS)
The financial data and information presented below provide a general overview of the financial position and results of the Group and ELGEKA S.A. - Trade - Distributions - Industry. Therefore, it is recommended to any reader, before proceeding to any investment decision or other transaction with the company, to visit the company's website, where the Annual Financial Statements are published, together with the review report of certified auditors - accountants whenever is required.
| | INFORMATION CONCERNING THE COMPANY | | | | | | 1.2. STATEMENT OF COMPREHENSIVE INCOME (consolidated and stand alone) amounts in thousand Euro | | | | |
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| Registered Prefecture: | Ministry of Economy and Development, General Secretariat for Commerce &<br>Consumer Protection, Directorate of Societe Anonyme Companies & G.E.MI. | | | | | | 01.01 - 31.12.2016 | | GROUP | 01.01 - 31.12.2015 | |
| Company's website: | http://www.elgeka.gr | | | | | Continuing<br>operations | Discontinued<br>operations | Total | Continuing<br>operations | Discontinued<br>operations | Total |
| Date of approval of Annual Financial Statements<br>by the Board of Directors: | 26 April 2017 | | | | Sales | 157.766 | 36.382 | 194.148 | 170.612 | 55.822 | 226.434 |
| Certified Auditor Accountant: | Pavlos Stellakis - SOEL Reg. No. 24941 | | | | Gross profit / (loss)<br>Profit /(loss) before taxes, financing | 24.907 | 10.891 | 35.798 | 23.439 | 8.360 | 31.799 |
| Audit firm:<br>Type of auditor's opinion: | GRANT THORNTON S.A.<br>Unqualified report - Emphasis of matter | | | | and investing activities | (2.831) | 947 | (1.884) | (2.956) | 1.355 | (1.601) |
| Composition of Board of Directors: | Chairman & Managing Director - Executive member | | Alexandros Katsiotis | | Profit /(loss) before taxes<br>Less: Taxes | (9.055)<br>(1.455) | (773)<br>644 | (9.828)<br>(811) | (10.629)<br>(154) | 913<br>(2.393) | (9.716)<br>(2.547) |
| | Vice-chairman - Non-Executive member | | Elli Drakopoulou | | Profit / (loss) after taxes (A) | (7.600) | (1.417) | (9.017) | (10.475) | 3.306 | (7.169) |
| | Non-Executive member | | Anthimos Misailidis | | | | | | | | |
| | Non-executive member<br>Independent, Non-executive member | | Michail Fandridis<br>Stilianos Stefanou | | Distributed to:<br>Equity holders of the Parent | (7.447) | (1.296) | (8.743) | (10.084) | 3.455 | (6.629) |
| | Independent, Non-executive member | | Nikolaos Milios | | Non-controlling interest | (153) | (121) | (274) | (391) | (149) | (540) |
| | Independent, Non-executive member | | Adamantios Lentsios | | Other comprehensive income/(loss) for the year, net of | | | | | | |
| | 1.1 STATEMENT OF FINANCIAL POSITION (consolidated and stand alone) amounts in thousand Euro | | | | tax (B) of tax (B) | (107) | (7) | (114) | (202) | (45) | (247) |
| | GROUP | | PARENT | | Total comprehensive income/(loss) for the year, net of | | | | | | |
| | 31.12.2016 | 31.12.2015 | 31.12.2016 | 31.12.2015 | tax (A+B) | (7.707) | (1.424) | (9.131) | (10.677) | 3.261 | (7.416) |
| ASSETS<br>Tangible assets | 38.978 | 51.799 | 6.797 | 7.122 | Distributed to: | | | | | | |
| Investment property | 27.214<br>9.610 | 24.327<br>13.681 | 8.294<br>551 | 8.763<br>686 | Equity holders of the Parent | (7.531)<br>(176) | (1.294)<br>(130) | (8.825)<br>(306) | (10.199)<br>(478) | 3.434<br>(173) | (6.765)<br>(651) |
| Intangible assets<br>Other non-current assets | 17.167 | 23.980 | 50.475 | 42.856 | Non-controlling interest | | | | | | |
| Inventories | 12.571 | 14.593 | 2.285 | 2.240 | Profit/(loss) after taxes per share - basic (in Euro) | (0,2347) | (0,0408) | (0,2755) | (0,3177) | 0,1088 | (0,2089) |
| Trade receivables<br>Other assets | 25.426<br>10.390 | 35.455<br>15.807 | 6.037<br>6.477 | 9.269<br>5.580 | Profit /(loss) before taxes, financing, investing<br>activities, depreciation & amortization | 1.057 | 4.105 | 5.162 | 1.339 | 3.318 | 4.657 |
| Non-current assets held for sale | 23.987 | 4.710 | 0 | 0 | | | | | | | |
| TOTAL ASSETS | 165.343 | 184.352 | 80.916 | 76.516 | | COMPANY<br>01.01 - 31.12.2016<br>01.01 - 31.12.2015 | | | | | |
| EQUITY & LIABILITIES | | | | | Sales | | | 54.323 | 59.745 | | |
| Share capital<br>Other accounts related to Shareholders' Equity | 50.775<br>(55.621) | 50.775<br>(46.793) | 50.775<br>(37.528) | 50.775<br>(42.279) | Gross profit / (loss)<br>Profit /(loss) before taxes, financing and investing activities | | | 16.499<br>(235) | 15.817<br>(1.137) | | |
| Total Equity attributable to Shareholders of the Parent Company (a) | (4.846) | 3.982 | 13.247 | 8.496 | Profit /(loss) before taxes | | | 3.616 | (6.416) | | |
| Non-controlling interest (b)<br>Total Equity ( c ) = ( a ) + ( b ) | 10.792<br>5.946 | 11.211<br>15.193 | 0<br>13.247 | 0<br>8.496 | Less: Taxes<br>Profit / (loss) after taxes (A) | | | (1.098)<br>4.714 | (126)<br>(6.290) | | |
| Long-term borrowings | 1.317 | 1.368 | 0 | 0 | | | | | | | |
| Provisions / Other long-term liabilities | 26.174 | 29.820 | 524 | 564 | Other comprehensive income/(loss) for the year, net of tax (B) | | | 37 | 2 | | |
| Short-term borrowings | 74.423 | 84.664 | 46.911 | 48.650 | Total comprehensive income/(loss) for the year, net of<br>tax (A+B) | | | 4.751 | (6.288) | | |
| Other current liabilities | 44.493 | 49.113 | 20.234 | 18.806 | | | | | | | |
| Liabilities concerning non-current assets held for sale | 12.990 | 4.194 | 0 | 0 | Profit/(loss) after taxes per share - basic (in Euro) | | | 0,1486 | (0,1982) | | |
| Total liabilities ( d ) | 159.397 | 169.159 | 67.669 | 68.020 | Proposed dividend per share (in Euro)<br>Profit /(loss) before taxes, financing, investing | | | 0,0000 | 0,0000 | | |
| TOTAL EQUITY AND LIABILITIES ( c ) + ( d ) | 165.343 | 184.352 | 80.916 | 76.516 | activities, depreciation & amortization | | | 352 | (417) | | |
| | ADDITIONAL DATA AND INFORMATION | | | | | | 1.3 STATEMENT OF CHANGES IN EQUITY (consolidated and stand alone) amounts in thousand Euro | | | | |
| 1.The name and country of registered office for each of the companies included in the consolidated financial statements as per December 31st | | | , 2016, as well as the corresponding direct and indirect | | | | | GROUP | | COMPANY | |
| percentage of participation in their share capital are included in Note 1 in Consolidated Financial Statements<br>2.The accounting principles applied are the same with the ones applied for the preparation of Annual Financial Statements for the year ended on December 31st, 2015, apart from the new or revised | | | | | Equity at the beginning of the year | | | 31.12.2016 | 31.12.2015 | 31.12.2016 | 31.12.2015 |
| accounting standards and interpretations endorsed in 2016, as they are presented in Note 2 of Annual Financial Statements.<br>3. On November 30th, 2016, took place the Extraordinary General Meeting of the Shareholders of "ELGEKA S.A.", in which it was decided the sale and transfer of the total shares that holds the Parent | | | | | (01.01.2016 and 01.01.2015, respectively) | | | 15.193 | 22.625 | 8.496 | 14.784 |
| company in the subsidiary company "ARIVIA S.A.", namely 12.375.185 shares representing 90,04% of the total shares of the latter for a consideration of 20.000 thousand euro, payable in cash by<br>the Purchaser (Greek limited company) within the forthcoming fifteen days and with guarantee statements and assurances usually provided in similar transactions. As a result, the subsidiary | | | | | Total comprehensive income/(loss), net of tax<br>Acquisition of non-controlling interest | | | (9.131)<br>(18) | (7.416)<br>(16) | 4.751<br>0 | (6.288)<br>0 |
| "ARIVIA S.A." presented in the Consolidated Financial Statements as at 31 December 2016 as Non-current assets held for sale and Discontinued operations.<br>4.The Parent Company's tax books and records have been audited by the Tax Authorities up to fiscal year 2010 (incl.). Since fiscal year 2011, according to Ministry Decision 1159/2011, for all | | | | | Sale of subsidiary | | | (98) | 0 | 0 | 0 |
| companies in which the annual Financial Statements are being audited by certified auditors, Annual Tax Certificate is issued following a tax audit conducted by the same certified auditors who audit<br>the Financial Statements. The unaudited fiscal years for each of the companies included into the Consolidated Financial Statements are analytically presented in Note 15 of Annual Financial | | | | | Equity at the end of the year (31.12.2016 and 31.12.2015, respectively) | | | 5.946 | 15.193 | 13.247 | 8.496 |
| Statements.<br>5.There are no encumbrances on the fixed assets of the Parent Company, while there are mortgages on the buildings of the Group as of 31st of December 2016, amounting to Euro 14.672 thousand | | | | | | | | | | | |
| | | | | | | | | | | | |
| (31/12/2015: Euro 13.929 thousand) as security for loans.<br>6.There is no pending litigation that could materially affect the financial position or operation of the Parent Company and the Group. The aggregated amount of provisions for bad and doubtful debts | | | | | | | 1.4 STATEMENT OF CASH FLOWS (consolidated and stand alone) amounts in thousand Euro | GROUP | | PARENT | |
| for the Group and Parent Company at 31/12/2016 amounted to 5.776 thousand euro and 2.954 thousand euro respectively (31/12/2015: 10.918 thousand euro και 1.533 thousand euro,<br>respectively). The cumulative provision for tax unaudited years as of 31/12/2016 for the Group amounted to 560 thousand euro and for the Parent Company to 530 thousand euro (31/12/2015: 501 | | | | | | | | | | | |
| thousand euro και 445 thousand euro, respectively), whereas no provisions were created under the heading "Other Provisions" neither for the Group nor for the Parent Company as prescribed in<br>paragraphs 10, 11 and 14 of I.A.S. 37 "Provision, contingent liabilities and contingent assets". | | | | | INDIRECT METHOD | | | 01.01 - 31.12.2016 | 01.01 - 31.12.2015 | 01.01 - 31.12.2016 | |
| 7.The number of employees as at 31/12/2016 was 1.164 for the Group and 103 for the Parent Company respectively (31/12/2015: Group 1.532 and Company 119, respectively).<br>8.All activities (sales and purchases of goods and services) aggregating from the beginning of the year as well as receivable and payable balances of the Parent Company and the Group in the end of | | | | | Operating activities | | | | | | |
| the current year, created from transactions with related companies, as these are defined in I.A.S. 24, with distinct reference to the remuneration and balances of key management personnel and<br>members of the board, are given below: | | | | | Profit / (Loss) before taxes from continuing operations<br>Profit / (Loss) before taxes from discontinued operations | | | (9.055)<br>(773) | (10.629)<br>913 | 3.616<br>0 | |
| | GROUP<br>PARENT | | | | Add/less Adjustments for: | | | | | | |
| a) Sales of goods and services | -<br>1.468 | | | | Depreciation and amortization<br>Provisions | | | 4.176<br>3.089 | 4.428<br>1.223 | 587<br>(5.523) | |
| b) Purchases of goods and services<br>c) Receivables | 11<br>3.076<br>-<br>1.237 | | | | Unrealised foreign exchange differences | | | 38 | 119 | 0 | |
| d) Payables | 2<br>7.027 | | | | Translation exchanges differences<br>Amortization of government grants | | | 13<br>(288) | (22)<br>(133) | 0<br>0 | |
| e) Key management personnel and member of the board compensation<br>f) Receivables from key management personnel and member of the board | 1.141<br>914<br>-<br>- | | | | Results (income, expense, gains & losses)<br>of investing activities | | | | | | |
| g) Payables to key management personnel and member of the board | -<br>- | | | | Interest expense & similar charges | | | 6<br>6.187 | 1.164<br>6.430 | (225)<br>3.436 | |
| The parent Company's balances of sales-income, purchases-expenses, receivables and payables with related parties have been eliminated for the consolidation of the Financial Statements as at<br>December 31st, 2016. | | | | | Add/less adjustments for changes in working capital or<br>changes related to operating activities: | | | | | | |
| 9.Investments in fixed assets that took place from the Group and the Parent Company during 2016 amounted to 1.394 thousand euro (2015: 1.986 thousand euro) and 131 thousand euro (2015: 151<br>thousand) respectively. | | | | | Decrease/(Increase) in inventories | | | (1.536) | 1.483 | (116) | |
| 10.Earnings per share (EPS) have been calculated using the profit or loss after tax and non-controlling interest divided by the weighted average number of ordinary shares in circulation of the Parent<br>Company during 2016. | | | | | Decrease/(Increase) in receivables<br>Increase/(Decrease) in payables (excluding borrowings) | | | 5.722<br>(1.871) | 19.466<br>(7.721) | 1.964<br>1.292 | |
| 11.Neither any of subsidiary nor the Parent held shares of the Parent Company at the end of the current year.<br>12.a. The companies "CERA VILLA DESIGN S.R.L." and "ELGEKA FERFELIS S.R.L." have applied for liquidation to the local authorities. The liquidation process is not completed by December 31st | | | | | Less: | | | | | | |
| 2016. The figures were insignificant for consolidation purposes.<br>b. On March 30th, 2016, after taking the relevant decisions by the Management of both the Parent company "ELGEKA S.A." and its subsidiary "ELGEKA (CYPRUS) LTD" and signing the relevant | | | | | Interest expense & similar charges paid<br>Income taxes paid | | | (6.173)<br>(45) | (6.066)<br>(269) | (3.452)<br>0 | |
| contract, was concluded the sale of its participation of "ELGEKA (CYPRUS) LTD" in "DIAKINISIS PORT (CY) LTD", i.e. a percentage of 50,01% for a consideration of 1.059 thousand euro, which<br>was completely paid the same as above date. The company "DIAKINISIS PORT (CY) LIMITED", which is headquartered in Nicosia, Cyprus with object of activity the participation in other | | | | | Operating activities from discontinued operations | | | 5.314 | 1.740 | 0 | |
| companies, participated in the Greek companies "DIAKINISIS PORT AND CO S.A." and "P.C.D.C. S.A." with 99% and 50% respectively and therefore consolidated in the Group's financial<br>statements. Taking into account the decisions, by December 30th, 2015, taken by Management of both the Parent company "ELGEKA S.A." and its subsidiary "ELGEKA (CYPRUS) LTD", regarding | | | | | Net cash flows from/(used in) | | | | | | |
| the intention of finding potential acquirer for the sale of subsidiary "DIAKINISIS PORT (CY) LTD", the specific company and by extension its subsidiaries "DIAKINISIS PORT AND CO S.A." and<br>"P.C.D.C. S.A." appeared in the ELGEKA Group's Annual Financial Statements of 31/12/2015 as "Discontinued operations" and "Non-current assets held for sale". From the above sale of | | | | | operating activities (a) | | | 4.804 | 12.126 | 1.579 | |
| participation percentage of "ELGEKA (CYPRUS) LTD" in "DIAKINISIS PORT (CY) LTD", resulted a profit of 926 thousand euro in the ELGEKA Group's Consolidated Financial Statements on<br>December 31th, 2016. As a consequence, the companies "DIAKINISIS PORT (CY) LTD", "DIAKINISIS PORT AND CO S.A." and "P.C.D.C. S.A." did included in the Consolidated Financial | | | | | Investing activities | | | | | | |
| Statements of 31/12/2016, while they were included in the comparable year of 2015.The effect of this event on the Group's financial figures, i.e. the Turnover, Results after Taxes and Non<br>Controlling Interest and Equity attributable to the Shareholders of the Parent Company was less than 25%. | | | | | Proceeds from the sale of subsidiaries (less cash held by subsidiaries) | | | 285 | 0 | 0 | |
| c. On April 7th, 2016, after taking the relevant decisions by the Management of both the Parent company "ELGEKA S.A." and its subsidiary "ELGEKA (CYPRUS) LTD" and signing the relevant<br>contract, was concluded the sale of the participation of "ELGEKA (CYPRUS) LTD" in "DIAKINISIS LOGISTICS SERVICES (CY) LTD", i.e. a percentage of 60,00% for a consideration of 320 | | | | | Purchases / Sales of participations to subsidiaries<br>Return of share capital | | | 0<br>0 | 0<br>0 | (18)<br>475 | |
| thousand euro, which was completely paid the same as above date. The company "DIAKINISIS LOGISTICS SERVICES (CY) LTD" is headquartered in Larnaca Cyprus with main business activity<br>the distribution, storage and packaging of all kinds, while it is consolidated in the financial statements of the Group under the full method. The significant decrease of sales of "DIAKINISIS | | | | | Increase of share capital of Available-for-sale-assets | | | (60) | 0 | (60) | |
| LOGISTICS SERVICES (CY) LTD" as a consequence of the interruption of a very important cooperation that represented more than 60% of its sales resulted in a deterioration of its financials<br>figures, which are reached, in a pre-tax loss level for the first quarter of 2016, the amount of 207 thousand euro. As a result of the above, and following the strategic decision of the Management, as | | | | | Purchase of property, plant & equipment and intangible assets<br>Proceeds from sale of property, plant & equipment and intangible assets | | | (1.223)<br>115 | (1.390)<br>56 | (131)<br>10 | |
| already announced to investing public regarding the review of the Group's strategic planning and redefining its business focus, it was taken the decision of the transfer of the Group's participation in<br>"DIAKINISIS LOGISTICS SERVICES (CY) LTD". From the above transfer of the participation of "ELGEKA (CYPRUS) LTD" in "DIAKINISIS LOGISTICS SERVICES (CY) LTD", it was accrued a loss<br>of 156 thousand euro in the ELGEKA Group's Consolidated Financial Statements on December 31 | th, 2016. As a consequence, the company "DIAKINISIS LOGISTICS SERVICES (CY) LTD" did | | | | Purchase of investment property | | | (171) | (3) | 0 | |
| included in the Consolidated Financial Statements of 31/12/2016, while it was included in the comparable year of 2015.The effect of this event on the Group's financial figures, i.e. the Turnover,<br>Results after Taxes and Non-Controlling Interest and Equity attributable to the Shareholders of the Parent Company was less than 25%. | | | | | Proceeds from sale of investment property<br>Government grants received | | | 169<br>168 | 0<br>0 | 0<br>0 | |
| d. On April 28th, 2016, was completed the merger of the company under the name "ARISTA S.A." and the company "VIOTROS S.A." through absorption of the latter by the former. Specifically,<br>according to the relevant announcement of the Service of General Commercial Registry (G.E.MI.) of the Thessaloniki Chamber of Commerce and Industry (T.C.C.I.), it was filed on 28.04.2016 with | | | | | Dividends received | | | 0 | 0 | 615 | |
| Listing Code Number (L.C.N.) 615075, the decision of the Governor of the Region of Central Macedonia with No. Ref. 3276/21.04.2016, with which it was approved: a) The merger, according to the<br>provisions of articles 68-77a of C.L. 2190/1920 in conjunction with the beneficial provisions of articles 1-5 of L.2166/1993 of the company under the name "ARISTA COMMERCIAL AND | | | | | Interest received<br>Investing activities from discontinued operations | | | 90<br>(2.058) | 31<br>(601) | 73<br>0 | |
| INDUSTRIAL S.A." with distinctive title "ARISTA S.A.", and the company with the name "VIOTROS FOOD INDUSTRY - MANUFACTURING AND MILK PROCESSING - WAREHOUSING -<br>INDUSTRIAL AND COMMERCIAL S.A." under the distinctive name "VIOTROS S.A." by absorption of the latter by the former. b) The change of the name and distinctive title of the acquiring | | | | | Net cash flows from/(used in) investing activities (b) | | | (2.685) | (1.907) | 964 | |
| company "ARISTA COMMERCIAL AND INDUSTRIAL S.A." with distinctive title "ARISTA S.A." and, therefore, its new name will be "ARIVIA INDUSTRIAL AND COMMERCIAL S.A." and its new<br>distinctive name "ARIVIA S.A.". Finally, after the conclusion of the above merger, the participation of "ELGEKA S.A." in the share capital of its subsidiary company "ARIVIA S.A." amounts to | | | | | Financing activities | | | | | | |
| approximately 90,04%, i.e. it holds 12.375.185 common registered shares of a total of 13.744.500 common registered shares, with a nominal value of 1,00 euro each.<br>e. On July 15th<br>, 2016, following the special resolution, the Parent company "ELGEKA S.A." approved the reduction of the share capital of its subsidiary "ELGEKA (CYPRUS) LTD" by the amount of | | | | | Acquisition of non-controlling interest | | | (18) | (16) | 0 | |
| 475 thousand euro, i.e. 11.736 thousand euro divided into 6.862.870 ordinary shares of nominal value 1,71 euro each, to 11.261 thousand euro divided into 6.585.092 ordinary shares of nominal<br>value 1,71 euro each. This reduction in the share capital of "ELGEKA (CYPRUS) LTD" was completed formally on 02/12/2016, after relevant approval - validation of the application submitted by its | | | | | Proceeds from loans<br>Repayment of loans | | | 76.838<br>(78.932) | 104.092<br>(113.258) | 6.278<br>(7.990) | |
| Management to the Nicosia District Court, while the return - deposit of the specific amount to "ELGEKA S.A." had been already preceded on 20/07/2016.<br>f. On December 30th | , 2016, "ELGEKA S.A." proceeded to a purchase of 1.780 common registered shares of the subsidiary company under the name "GLOBAL SYNERGY BUYING GROUP S.A. | | | | Payment of finance leasing liabilities | | | (641)<br>(29) | (472)<br>0 | 0<br>0 | |
| Trade – Distributions – Representations" and the distinctive title "G.S.B.G. S.A." for a consideration of 18 thousand euro. As a result, the participation percentage of "ELGEKA S.A." in the<br>subsidiary "G.S.B.G. S.A." raised to at approximately 99,99% (from approximately 98,82% previously) and corresponds to 152.980 common registered shares of a nominal value of 10,00 euro | | | | | Financing activities from discontinued operations<br>Net cash flows from/(used in) | | | | | | |
| each. As a consequence, "G.S.B.G. S.A." included in the Financial Statements of ELGEKA Group of the current year with a percentage of 99,99%, while in the comparable year of 2015 it had<br>been included with a percentage of 98,82%. | | | | | investing activities (c) | | | (2.782) | (9.654) | (1.712) | 01.01 - 31.12.2015<br>(6.416)<br>0<br>721<br>1.510<br>1<br>0<br>0<br>735<br>3.416<br>953<br>12.900<br>(5.792)<br>(3.215)<br>(205)<br>0<br>4.608<br>0<br>(16)<br>0<br>0<br>(151)<br>144<br>0<br>0<br>0<br>0<br>13<br>0<br>(10)<br>0<br>24.329<br>(29.299)<br>0<br>0<br>(4.970) |
| Apart from the above mentioned changes in the consolidation percentages of the companies' comprising the Group and the companies that did not consolidated in the current year but they had<br>consolidated during the comparable year, there were no other alterations nor were any companies which were not included in the consolidation as per December 31st, 2016. | | | | | Net increase/(decrease) in cash<br>and cash equivalents ( a ) + ( b ) + ( c ) | | | (663) | 565 | 831 | |
| The above mentioned events are presented in Notes 1 of Annual Financial Statements.<br>13.The amounts and the nature of the other comprehensive income after taxes are analyzed as follows: | | | | | Cash and cash equivalents at the beginning of the period | | | 6.172 | 5.607 | 1.569 | |
| Nature of Other Comprehensive Income / (loss) after taxes | GROUP<br>(01.01-31.012.2016) | COMPANY<br>(01.01-31.12.2016) | | | Foreign exchange differences in cash and cash equivalents | | | 0 | 0 | 0 | (372)<br>1.941<br>0 |
| Exchange differences from translation of foreign subsidiaries<br>Revaluation of investment property | (52)<br>(94) | -<br>- | | | Cash and cash equivalents at the end of the period | | | 5.509 | 6.172 | 2.400 | 1.569 |
| Equity. The corresponding amounts for 2015 were a loss of 1.217 thousand euro and a loss of 798 thousand euro, for the Group and the Company respectively, that affected the Results.<br>16.The Statement of Comprehensive Income of the Company has been benefited by the amount of 7.518 thousand euro, which relates to reversal of impairment loss in the value of participation in the<br>subsidiary company "ARIVIA S.A.", while it has been charged with the amount of 400 thousand euro which relates to impairment loss in the value of participation in the subsidiary company<br>"SAMBROOK S.A.". The relevant amount of 2015 was an impairment of 1.050 thousand euro for the subsidiary company "DIAKINISIS S.A.". The above impairment losses did not affect consolidated<br>Sales, consolidated Results after taxes and non-controlling interest and consolidated Equity. Details are given in Note 21 of the Annual Financial Statements.<br>17.The emphasis of matter in the Independent Auditor's Report concerns the fact that due to accumulated losses the total equity of the Parent Company is lower than the half of paid up share capital<br>and therefore the requirements for the application of Article 47 of Codified Law 2190/1920 are effective. Moreover, the total value of Group's and Company's current liabilities exceeds the total value<br>of current assets by 70.529 euro and 52.346 euro respectively, fact that may indicate the existence of uncertainty in respect of the Group and the Company's ability to facilitate as going concern. As<br>it is referred in Note 45 of Annual Financial Statements, the Group's Management is in negotiations with credit institutions to convert the total short -term debt to long term of parent company and its<br>subsidiary "DIAKINISIS S.A." and has designed the appropriate measures for the smooth continuation of its activities and improve of its financial position as a going concern, principal which has<br>been taken into account for the preparation of the accompanying Group's and Company's financial statements.<br>18. a) On February 20th, 2017, there was signed contract regarding the sale of total shares held by the Company to its subsidiary "ARIVIA S.A.", i.e. 12.375.185 shares representing 90,04% of the<br>company's shares, for a consideration of 20.000 thousand euro. After the full payment of the consideration, the Purchaser acquired full and exclusive ownership and possession of all the<br>aforementioned transferred shares. The sale of the above participation has as a consequence the inflow of a significant consideration in the Company, which is part of the negotiation and of the<br>Company's commitment to its lending banks in the context of the new S.B.L. (Syndicated Bond Loan) for restructuring of its debt. Amount of 10 million euro from the consideration that is 50% of the<br>total consideration will be directed to the creditor banks to repay existing loans of the Company and its subsidiary "DIAKINISIS S.A.".<br>b) On March 10th, 2017, the Unsolicited Extraordinary General Meeting of the subsidiary "DIAKINISIS S.A." decided to increase its share capital by the amount of 3.100 thousand euro in cash and<br>the issuance of 1.550.000 new common registered shares of nominal value of two (2) euro each, amending Article 5 of its Articles of Association. "ELGEKA S.A." undertook to cover the part of this<br>increase in "DIAKINISIS S.A." that corresponds to the participation percentage in it, namely 99,99%, with the payment of 3.100 thousand euro, which will be held within two months from the date<br>when the aforementioned General Meeting took place. Following the above, the new share capital of the subsidiary "DIAKINISIS S.A." will amount to totally 16.500 thousand euro divided into<br>8.250.000 common registered shares with nominal value of two euro each, while the participation percentage of "ELGEKA S.A." in that company remains at approximately 99,99%. This increase of<br>the share capital of "DIAKINISIS S.A." takes place in the context of the enhancement of its Equity, while the amount of the increase is going to be used for the decrease of its borrowing and<br>strengthening the cash flows of the subsidiary.<br>c) "ELGEKA S.A.", after receiving the Notice of Tax Audit for fiscal years 2008, 2009 and 2010 by Audit Authority for Large Enterprises with which determined temporarily total amount of tax to be<br>charged (including surcharges and fines) of 2.198 thousand euro, submitted Memorandum to Audit Authority, expressing its views on the audit findings, asking at the same time the acceptance of its<br>relevant claims. Subsequently, the Company under the provisions of articles 57 to 61 of L.4446/2016 submitted modified - supplementary tax returns relating to the audited fiscal years and paid total<br>taxes (including surcharges) amounting to 532 thousand euro, i.e. 532 thousand euro, so accepting part of the initial tax amount being charged. After that, the Audit Authority having considered both<br>the above submitted by the Company tax returns under the provisions of articles 57 to 61 of L.4446/2016 and also the Company's claims submitted with the relevant Memorandum, notified the<br>Company the relevant partial audit reports and corresponding definitive acts of corrective income tax assessment, ultimately attributing to the Company additional tax and fines (beyond those<br>already declared and paid) of total amount 880 thousand euro. Given that the Company considers as unfounded the charge of these additional taxes and fines, it will file an intra-corporate appeal<br>against the finding in order to defend its rights.<br>There are no other events that took place after the date of Financial Statements that relate either to Group or to Company, for which it is required by International Financial Reporting Standards<br>either disclosure or alteration in the amounts of published Financial Statements. | | | | |
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| | | Thesssaloniki, April 26, 2017 | | |
| CHAIRMAN OF THE B.o.D. & MANAGING DIRECTOR | VICE - CHAIRMAN | GROUP CHIEF FINANCIAL OFFICER | ACCOUNTING AND TAX PLANNING MANAGER OF GROUP | |
| | | | | |
| ALEXANDROS KATSIOTIS | ELLI DRAKOPOULOU | ARIS CHATZATOURIAN | KONSTANTINOS MEINTANIS | |
| ID. No. X 232184 / 01 | ID. No. AΒ 287230 / 06 | ID. No. X 540791 / 03 | VAT: 030961080 P.F.C.: Z' THESSALONIKI<br>ACC. REG. No. 0017678 CLASS: A' | |
**Participation in Other comprehensive income / (loss) of joint ventures (17) - Other Comprehensive Income / (Loss) of discontinued operations (8) - Other comprehensive income / (loss) after taxes (114) 37**
**14.** Discontinued operations have resulted in the reclassification of the financial figures of the comparable year 2015 (Note 41 of the Annual Financial Statements). **15.**The Investment Property of the Group and the Company are stated at fair value by accredited certified valuators. As at December 31st , 2016, it was accrued a loss of 274 thousand euro and a loss of 469 thousand euro, for the Group and the Company respectively, by the investment property valuations, that affected the Results and loss of 133 thousand euro for the Group that affected directly