LAMPSA HELLENIC HOTELS S.A.

Societe Anonyme Reg. Nr.: 6015/06/B/86/135 GEMI gemi Reg. Nr.: 223101000 Vasileos Georgiou Α1, 10654, Athens

ANNUAL FINANCIAL REPORT

For the period ended as at December 31, 2015

According to Article 4 of Law 3556/2007

Α. Representations of the Members of the Board of Directors 4
Β. Independent Auditor's Report5
	C. Annual Report of the Board of Directors7
		D. Annual Financial Statements 28
		Statement of Financial Position 29
		Statement of Comprehensive Income 30
		Statement of Changes in Equity 31
		Statement of Cash Flows 33
		Notes to the Financial Statements 34
1.		General Information 34
2.	2.1.	Basis for preparation of annual financial statements 34 Changes in Accounting Policies 35
3.		Summary of accounting policies 39
	3.1.	General 39
	3.2. 3.3.	Consolidation and investments in associates 39 Foreign currency translation 40
	3.4.	Segment reporting 40
	3.5.	Recognition of income and expenditure 41
	3.6.	Borrowing costs 42
	3.7.	Goodwill 42
	3.8.	Other intangible assets and research and development activities 42
	3.9.	Property, plant and equipment 43
	3.10.	Leases 44
	3.11.	Financial Assets 45
	3.12.	Inventories 46
	3.13.	Accounting for Income Tax 46
	3.14.	Cash and Cash Equivalents 47
	3.15.	Equity 47
	3.16.	Retirement benefits and short-term employee benefits 47
	3.17.	Financial Liabilities 48
	3.18.	Other Provisions, Contingent Liabilities and Contingent Assets 48
4.		The Group Structure 49
5.		Notes to financial statements 51
	5.1.	Segment Reporting 51
	5.2.	Analysis of tangible fixed assets 52
	5.3. 5.4.	Analysis of intangible assets 54 Goodwill 55
	5.5.	Analysis of investments in subsidiaries and associates 55
	5.6.	Investment in Joint Venture 56
	5.7.	Analysis of other long term receivables 57
	5.8.	Inventory Analysis 57
	5.9.	Trade and other Receivables and other Assets 57
	5.10.	Analysis of cash available 58
	5.11.	Equity Analysis 58
	5.12.	Analysis of provisions 59
	5.13.	Analysis of suppliers 60
	5.14.	Analysis of other liabilities and advance payments 60
	5.15.	Current Tax Liabilities 60
	5.16.	Deferred Tax Assets and Liabilities 61
	5.17.	Analysis of loans 68
	5.18. 5.19.	Other long term liabilities 68 Analysis of employee retirement benefits 68
	5.20.	Analysis of Income Statement 70
	5.21.	Financial income / expense & Other Financial Results 73
	5.22.	Reconciliation of income tax 73

	5.23. 5.24. 5.25.	Profit / (Loss) per share 74 Transactions with related parties 75 Employees Benefits 76
	5.26.	Contingent assets-liabilities 76
	5.27.	Guarantees 79
6.		Risk management policies objectives 80
	6.1.	Currency risk 80
	6.2.	Sensitivity analysis of interest rate risk 81
	6.3.	Credit Risk Analysis 81
	6.4.	Liquidity risk analysis 81
7.		Capital management policies and procedures 82
8.		Post Balance Sheet Date events 83
		Ε. Financial Data and Information 84
		G. Annual Financial Statements publication website 85

Α. Representations of the Members of the Board of Directors

(under Article 4, par. 2, Law 3556/2007)

We hereby certify that as far as we know:

a) The attached annual separate and consolidated Financial Statements of "LAMPSA HELLENIC HOTELS S.A." for the FY 1/1/2015 – 31/12/2015, prepared according to the effective International Financial Reporting Standards, present truly and fairly the assets and liabilities, the equity and the financial results of the Company as well as of the consolidated companies as a total.

b) The annual management report of the Board of Directors presents in a true and fair view the development, the performance and the financial position of the Company, as well as the companies consolidated as a total, including the description of the main risks and uncertainties they face.

Athens, March 30, 2016

The designees

PRESIDENT OF THE BOARD	CHIEF EXECUTIVE OFFICER	MEMBER OF THE BOARD OF
OF DIRECTORS		DIRECTORS

I.D. No Ξ 282324 I.D. No ΑΙ 506406 I.D. No AK 121283

GEORGE GALANAKIS ANASTASIOS HOMENIDIS FILIPPOS SPYROPOULOS

Β. Independent Auditor's Report

To the Shareholders of LAMPSA HELLENIC HOTELS S.A.

Report on the Company's and Consolidated Financial Statements

We have audited the accompanying individual financial statements of LAMPSA HELLENIC HOTELS S.A as well as the consolidated Financial Statements of the Company and its subsidiaries, which comprise the individual and consolidated Statement of Financial Position as at December 31, 2015, and the Income Statement and Statement of comprehensive income, changes in equity and cash flows for the year then ended and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these individual and consolidated financial statements in accordance with International Financial Reporting Standards as adopted by European Union, as well as for internal controls that management determines are necessary to enable the preparation of individual and consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these individual and consolidated financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the individual and consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the individual and consolidated financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the individual and consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the individual and consolidated financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the individual and consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the accompanying individual and consolidated financial statements present fairly, in all material respects, the financial position of the Company and its subsidiaries as at December 31, 2015, and the financial performance and the cash flows of the Company and its subsidiaries for the year then ended in accordance with International Financial Reporting Standards that have been adopted by the European Union.

Emphasis of matter

We draw attention to Note 5.26 of the financial statements which describes statements which describes the existence of pending court cases of subsidiary company of amount EUR 1.1 million. The final outcome of which cannot be estimated at present and therefore has not been recognized any provision in Group's financial statements in relation to these court cases. In our opinion there is no qualification in relation to this matter.

Report on Other Legal and Regulatory Requirements

a) The Board of Directors' Report includes a statement of corporate governance that provides the information required by Paragraph 3d of Article 43a of Law 2190/1920.

b) We verified the agreement and correspondence of the content of the Board of Directors' Report with the abovementioned individual and consolidated Financial Statements, in the scope of the requirements of Articles 43a, 108 and 37 of Law 2190/1920.

Athens, 31 March 2016

The Certified Public Accountant - Auditor

George Deligiannis

SOEL Reg. No 15791

C. Annual Report of the Board of Directors of the company «LAMPSA HELLENIC HOTELS S.A. » on the corporate and consolidated Financial Statements for the year January 1st to December 31st, 2015

Dear Shareholders,

The current Annual Report of the Board of Directors pertains to the closing year from 1/1/2015 to 31/12/2015 and has been prepared in accordance with the provisions of Law 2190/1920 Article 43a paragraph 3, Article 107 paragraph 3 and Article 136 paragraph 2, and the provisions of Law 3556/2007, Article 4, paragraphs 2 (c), 6, 7 & 8 and the decisions of the Capital Market Commission 7 / 448/11.10.2007 Article 2 1/434/3.7.2007 and the Company's Articles of Association. The current report includes the audited consolidated and corporate financial statements, the notes to the financial statements and the Independent Auditor's Report. The current report summarized information on the Group and the Company «LAMPSA HELLENIC HOTELS S.A.», financial information aimed at providing general information to the shareholders and the investing public about the financial performance and the results, the overall course of development and the changes made during the closing year (01.01.2015 - 31.12.2015), significant events that took place and their impact on the financial statements of the year. Also, there is provided a description of the main risks and uncertainties that the Group and the Company may face in the future, as well as significant transactions between the Issue and its related parties.

The current report accompanies the annual financial statements (01/01/2015 - 31/12/2015) and is included together with the full text of the statements of the BoD members. Given that the Company also prepares consolidated financial statements, this report is unified, with the principal point of reference of the consolidated financial statements and with reference to corporate financial data of «LAMPSA HELLENIC HOTELS S.A.», only where appropriate or necessary for better understanding its contents.

The report presents an in brief but effective way all the necessary significant units, based on the above legislative framework and records, and reflects, in a true and fair manner, all the relevant information, required by legislation, in order to provide essential and thorough information regarding the operations within the aforementioned period on «LAMPSA HELLENIC HOTELS S.A.» (hereinafter «The Company») as well as the Group.

Guided by "Grande Bretagne" and the presence of "King George" hotels, LAMPSA presented a significant improvement in its turnover and results, benefiting from the growth of tourism in Greece and consistently its pricing policy. The turnover amounted to € 41,443 k recording an increase of 7.22% while earnings before interest, tax, depreciation and amortization (EBITDA) stood at € 8,562 k versus € 7,8194 k in 2014.

"Grande Bretagne" and "King George" recorded increased occupancy rates of 66.24% (versus 64.58% in 2014) as well as high ARR (Average room rate) of € 261.37 (versus € 246.07 in 2014), leading Athens Hotel Market.

Moreover, Sheraton Rhodes recorded stable with a low decrease course of development (consolidated under Equity method), due to the problems occurred during the summer season (impose of capital controls) stating turnover of € 9,488 k (2014: € 9,911 k) and ΕΒΙTDA standing at € 1,872 k (2014: € 2,520 k).

The Group turnover presents a significant increase of 5,81% (from € 48,693 k to € 51,522 k) as well as ΕΒΙTDA of 9,82% (from € 10,695 k to € 11,745 k) which mainly προέρχεται κυρίως από την μητρική εταιρία.

The Company improved its borrowings by € 4,019 k from € 39,068 k to € 35,049 k focusing on loan repayments.

The Group earnings before tax recorded profit of € 1.548 k versus losses of € 6.870 in 2014, which were mainly due to impairment of fixed assets and goodwill. The Company earnings before tax stood at € 5.212 k versus profit of € 1.843k in 2014.

Finally, LAMPSA earnings after tax and royalties stood at profits € 1,303 k versus losses € 4,556 k in 2014 mainly due to significant impairments of fixed assets and goodwill recorded last year. The earnings after tax of the Company stood at € 4,695 k versus € 3,518 k in 2014.

The following companies are incorporated in the current period:

Companies	Func. Currency Domicile		Participating interest %	Consolidation Method	Participation
LAMPSA HELLENIC HOTELS S.A	€	GREECE	Parent
LUELLA ENTERPRISES LTD	€	CYPRUS	100,00%	Full	Direct
BEOGRADSKO MESOVITO PREDUZECE	€	SERBIA	93,90%	Full	Indirect
EXCELSIOR BELGRADE SOCIATE OWNED	€	SERBIA	80,33%	Full	Direct
TOURISTIKA THERETRA S.A.	€	GREECE	50,00%	Proportionate	Direct
MARKELIA ENTERPRISES COMPANY LTD	€	CYPRUS	100,00%	Full	Indirect

*It is to be noted that NORTH HAVEN Ltd is under voluntary liquidation and the total of its assets has been transferred to Luella Enterprises Ltd, which is its sole 100% shareholder.

Α. Financial developments and data on the course of the reporting year

Financial Information

The agreement of 12th of July 2015 between Greece and European Union establishes the conditions for stabilization of the state of the economy in Greece for the next period, given the timely completion of the evaluation.

Specifically, the Tourist Industry, during 2015, was not negatively affected by the negative publicity, and significant increase in all sizes (income, occupancy, room rates, etc) of hotels in Greece had been recorded. Corresponding results were also in the hotel units of the Group in Greece, led by Athens. However, the consequences of the crisis have been reflected in the revenue from the segment of F & B (Food & Beverage), with consistently strong Greek presence, since the segment has recorded lower growth rates compared to room rates.

On the contrary, the stagnation of Serbia economy in conjunction with the transitional period during which tourism infrastructure has increased (new hotels, airport, airline privatization etc.), in view of Serbia joining the EU, resulted in an increase in the hotels sizes.

Room occupancy ratio of the luxury hotel industry in Athens increased by 1,4% compared to 2014, adjusting the ratio to 65,3% versus 64,5% in 2014. Bigger scale adjustments were made to the average room rate of luxury hotels, amounting to 2,1% growth compared to 2014, reaching € 153,20 versus € 147,63 in 2014. Therefore, room occupancy ratio of the luxury hotel industry in Athens increased by 5,2% while the total room revenue by 4,8%.

"Grande Bretagne" hotel recorded a 6.6% sales growth versus 2014, while «King George» hotel recorded 12% sales increase. Regarding the Group Hotels in Serbia, in particular, «Hyatt Regency Belgrade» recorded a 0.5% sales increase and «Excelsior" remained at the same levels as last year. In terms of EBITDA, increase in sales and expenditure restraint (despite the rigidity of the salary and wages expenses) had a very positive effect, with an increase of about € 1.05 m for the Group and € 0.74 m for the Company in relation to 2014. Moreover, Sheraton Rhodes Hotel, whose results due to consolidation under Equity method have affected the investing results of the Group, presenting a sales decrease of 4.3%.

Specifically for the Group's Hotels, the figures were as follows:

Results for 31-12-2015
Grand Bretagne King George Hyatt Belgrade Sheraton Rhodes Excelsior
Revenue per available room	175,45	165,83	51,80	76,71	31,30
Hotel occupancy rate	65,30%	69,18%	40,87%	71,52%	53,06%
Average hotel room price	268,68	239,72	126,72	105,47	58,95
		Results for 31-12-2014
	Grand Bretagne	King George	Hyatt Belgrade	Sheraton Rhodes	Excelsior
Revenue per available room	164,11	142,61	51,29	90,06	35,74
Hotel occupancy rate	63,98%	66,48%	41,33%	80,02%	58,11%
Average hotel room price	256,52	214,52	124,11	110,68	61,51

Value creation and performance measurement factors

The Group evaluates results and performance on a monthly basis, timely and effective identifying deviations from the goals and taking corrective measures. The Group's performance is measured using the following international financial performance indicators:

ROCE (Return on Capital Employed): The index divides the earnings before interest and taxes to total capital of the Group which is the sum of equity, total loans and long-term forecasts.
ROE (Return on Equity): The index divides the profit after tax attributable to equity holders of the parent by the equity attributable to shareholders of the parent.

The above indicators for 2015 compared to 2014 were as follows:

	31/12/2015	31/12/2014
ROCE	5,63%	4,91%
ROE	1,57%	-6,32%

Based on the above, the most significant items of the Financial Statements have changed as follows:

The Group's annual turnover stood at € 51,522 k versus € 48,693 k in 2014 recording an increase of 5.81%. Respectively, in the Parent Company (Hotel "Grande Bretagne" and King George) stood at € 41,443 k from € 38,651 k in 2014, that is, an increase of 7.22% mainly coming from the Rooms' Revenues (occupancy and average price), a consequence of political stabilization and recovery of the incoming tourism. The participation of King George stood at € 8.5 m versus € 7.6 m in 2014.
The consolidated gross profits stood at € 19,055 k from € 17,082 k in 2014, recording an increase in scale of 11.55%, while the gross profit's markup increased from 35.08% in 2014 to 36,98% in 2015. The Parent Company's gross profits stood at € 16,448 k versus € 14.240 k in 2014, recording an increase of 15.55%. The gross profit's markup stood at 39.69% in 2015 from 36.84% the previous year. This increase is mainly due to the big increase of annual turnover and therefore to the improvement of the profit margin due to compared rigidity of wages and salary expenses, main component of the cost of sales.
The Group's Other Income present a decrease due to the decrease in revenues from used non used provisions within the current year.
The Group's operational profits (EBITDA) stood at the amount of € 11,745 k versus € 10,695 k in 2014, recording an increase at the percentage of 9,82%. The significant increase in EBIDTA reflects the impact of the significant increase of the annual turnover and also the χρηστή management, which resulted in very satisfying flow through between revenues and EBITDA. In the Parent Company stood at € 8,562 k versus € 7,819 k in 2014 recording an increase of 9,5% which

is due to the increase of annual turnover. To be noted here that the hotels in Serbia also present positive ΕΒITDA.

The Group and the Company's Financial cost recorded a decrease of € 338 k and € 290 k respectively which is due to the decrease of loan liabilities of the Parent Company at the amount of € 4,019 k (from € 39,068 k to € 35,049 k).
The Group's other financial results were burdened with exchange rate differences which mainly derived from the loan valuation in US Dollars of the Company and from the reclassification of the «Reserve of the Exchange Rate Differences» of the amount of € 502 k. due to voluntary liquidation of the subsidiary Company North Heaven Ltd. During the previous year apart from the exchange rate differences, the Group's other financial results were burdened with impairments Goodwill at the amount of € 5,731 k. Besides the exchange rate differences, the Company's results include the revenues from dividends with value € 1,535 k, versus € 1,657 k in the previous year.
Earnings (losses) from property, plant and equipment impairment is due to impairment of land plots and buildings of Serbian subsidiaries, burdened in 2015 with € 2.035 k versus € 4.148 k. The Group's management believes that these impairments do not reflect the market value of real estate estate and arise from temporarily adjustments imposed by the IFRS. The lack of comparables in Serbia did not allow to form commercial values, while opening of new international hotel units in Belgrade reflects growth expectations that are not consistent with these impairments The Management estimates that identifying of such comparables in view of Serbia's joining the European Union will allow to reverse the performed impairments. Already, the rate of return of B.M.P company, after the stabilization of 2014, increases in 2015 and keeps rising in 2016.
The Group's results before taxes stood in profits at the level of € 1,548 k from losses € 6,870 k in 2014, loss which was mainly due to the impairments of assets and goodwill. The profits before taxes of the Company stood at the level of € 5,212 k. versus profits of € 1,843 k in 2014.
Net earnings (after tax and before non-controlling interest royalties) of the Group recorded profit of € 1.303 k versus losses of € 4.556 k recorded in 2014, as a result of the above and as a result of the tax recording expenses of € 294 k versus revenue of € 1.945 k in 2014. The current FY income tax was affected by the change in the tax rate (from 26% to 29%) positively affecting deferred tax and from offsetting tax assets recognised in the previous year, amounting to € 2.3 m with the current income tax, amounting to € 1.06 m.
During the current year for the Group and the Company, the net investments in tangible and intangible assets stood at the amount of € 2,774 k and € 2,464 k (2014: € 2,849 k and € 1,201 k respectively).

Β. Significant Events

SIGNIFICANT EVENTS DURING THE FISCAL YEAR 2015

The Parent Company, despite the general negative domestic economic conditions at the reporting date of the Annual Financial Statements, maintain satisfactory capital adequacy and profitability. Also, the Greek companies of the Group continue to regularly settle their liabilities to financial institutions, domestic suppliers, government and insurance organizations.

During 2015, the Company completed a partial renovation (buildings and equipment) in the food departments of the Hotel Grande Bretagne. The investment relates to the configuration of rooms and auxiliary parts (kitchens, etc.) and amounted to € 1,267 k. Also, investments of € 1.197 k were made in other equipment and € 2774 k for the Group.

On 22.04.2015, started the tax audit of the Parent Company for FY 2010 based on the audit order 1103 / 05.27.2014 and was completed on 30.10.2015, under the issue of Nr. 2988/2015 Final Amendments Identification Act. The audit findings established VAT were differences amounting to € 9 k in addition to the relevant surcharged amounts of € 11 k and additional accounting differences resulting in the decrease in transferred tax losses for 2010, which had been transferred until 2012, when they were offset with the tax on goodwill, arising from the revaluation of real estate property items under Law.

22065/1992. The difference to the retransferred tax losses resulted in the additional amount of tax of € 17 k plus surcharges of € 6 k. These amounts, ie 43k, have burdened the results of the reporting period and are included in the item "Other expenses" of the Statement of Comprehensive Income.

On 31/12/2015 the company NORTH HAVEN Ltd is not consolidated because it is under voluntary liquidation and all of its assets have been transferred to Luella Enterprises Ltd, which is the sole 100% shareholder. The item "Foreign Currency Translation Differences Reserves" with a debit balance of € 502 k in the consolidated financial statements was transferred to Retrained Earnings in the income statement. It is noted that there is no burden on Equity, as this is reclassification through profit or loss. There is no effect on the Group from the cessation of consolidation of NORTH HEAVEN Ltd.

On 19.06.2015 the Annual General Meeting of the company "COMPANY GREEK HOTEL LAMPSA SA", in which took part legally representing shareholders 15,049,799 shares out of CR (21.364.000) KO Company shares, namely 70.44 % or so, and unanimously decided on the issues of the agenda, the following:

(1) It approved the annual financial statements LAMPSA SA (Company and Consolidated) and the Annual Financial Report of the Board for the year 2014 (1.1.2014 - 31.12.2014), after hearing the Audit Report of the Auditors on the annual financial statements of December 31, 2014 (individual and consolidated) ,

(2) the AGM released the members of the Board of Directors as well as the auditors from any responsibility on the drafting and audit of the annual financial statements as well as on the management of the company of the financial year 2014,

(3) the AGM elected auditing firm for the annual and interim financial statements of the Company for the financial year 2015, GRANT THORNTON SA and its respective auditors, Mr George Deligiannis (SOEL 15791) as its statutory and Mr Yiannis Leos (SOEL 24881) as its substitute, and set its remuneration,

(4) the AGM approved a total amount of 25.000 Euro as fees for the Board of Directors' member, Ms. Chloe Laskaridi, for the year 2014 and has pre-approved an amount of 25.000 Euro for the year 2015,

(5) The AGM approved the assignment of the project on compliance of the Grande Bretagne hotel to the law 4178/2013, decided by no. 992/08.10.2014 minutes of BoD, as well as their relative fees, as defined under law 3919/2011 to the engineer named Mr. Anastasios Xomenidis and Mr. Panagiotis Nikolopoulos. Also, the AGM approved the assignment of the indictment against the company "DPG Digital Media SA" to the law firm "Filippos Spyropoulos" for public offence regarding the legal status of the Company in the newspaper "newsbomb". The approval was provided after the fact that Mr Filippos Spyropoulos is a member of the Company's BoD.

(6) The AGM decided to the election of a new board member, which will head the Company for a period of 3 years (according with article 15 of the company's by-laws) until 30.6.2018 and more specifically, the following members:

1.	George Galanakis
2.	Apostolos Doxiadis
3.	Anastasios Xomenidis
4.	Morris Montiano
5.	Athanasios Papadopoulos
6.	Thomas Miller
7.	Nikolao Dandolo
8.	Chloe Laskaridi
9.	Filippos Spyropoulos

The Company's Control Committee stays as it is.

(7) The AGM decided on the extension of the Company's duration for fifty (50) more years and the modification of article 4 of the Company's by-laws

8) On the subject of "various announcements", no changes have been recorded.

On 29/07/2015, the Parent Company was disclosed Note under Article 30, paragraph 5 of P.D. 186/92 of the Audit Authority for Large Enterprises. The Note, prepared in the context of conducted recurring audit by the aforementioned Authority in respect of income taxation and other tax items for the financial years 2003 to 2008, stated that "under the audit opinion", the accounting books held by the company in respect of the administrative periods in question are considered to have misstatements under the provisions of cases a, c and d of par. 4, Article 30, of P.D. 186/92 in line with the provisions of par. 7, 8 and 9 of the same Article of P.D. 186/92, as added under Law 3052/2002, given that the misstatements are substantial compared to the Company financials and negatively affect them. The judgements regarding the "misstatements" in the accounting books is based on breaches of regulations regarding non-receiving and non-recording in the company's accounting books tax data on leasing fixed assets from the Company STARWOOD HELLAS HOTELS S.A.

Given the aforementioned, the Audit Authority for Large Enterprises summoned the Company to appear in front of the Ministry of Finance Committee as under Article 30, par. 5 of P.D. 186/92 that is authorized to conclude whether the misstatements referred to in the Note entail rejection of the accounting books and records and extra-accounting definition of taxable items for the administrative periods under audit.

The Company submitted an application to the competent committee of the Ministry of Finance under Prot. Num. 0004836/07.08.2015, requesting the confirmation of the validity of the Company's accounting books stating the reasons, which are summarized as follows:

No rentals were due and paid since no equipment lease contract had been signed. In contrast, the concession was a contractual obligation of the contracting partner in the context of the existing hotel management contract.

There are no legal provisions regarding the imposition of imputed rentals on equipment concession cases, agreed upon between the parties and taking place without payment in joint service rendering contracts in accordance with the prevailing international practices.

Even in case such legal provisions were effective, the company would be in no position to account for the implied cost since according to the Law, the effective Legislation and the Opinions of the State Legal Council, accepted by the Ministry, only the actual costs are deductible from the gross income of the company.

Finally, the Company holds reservations regarding the legality of the conduct of the recurring audit given the expiry of some of the administrative periods under audit as well as the existence of new additional data to enable such a recurring audit.

SIGNIFICANT EVENTS AFTER THE YEAR END

There are no significant events after 2014 year end till currently.

C. Risks and Uncertainties

Financial Risk Factors

The Group is exposed to financial risks such as changes in exchange rates, interest rates, credit risk, liquidity risk and fair value interest rate risk. The overall risk management of the Group focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Group.

Risk management is carried out by the central cash available management service, which identifies and evaluates financial risks in cooperation with the services that face these risks. Prior to the relevant transactions it is taken acceptance by officers with the right to bind the Company to its counterparties.

Currency Risk

The Group operates in Greece, Cyprus and Serbia and its operating currency is Euro. However, here is a certain limited exposure to currency translation risk regarding US Dollar, mainly arising from loan and other liabilities in Dollars. The exchange rate risk of this kind arises from the rate of these currencies against the euro, partially offset by corresponding liabilities (e.g. loans) of the same currency.

Financial assets and liabilities in foreign currency converted into Euro at the closing rate are as follows:

	31.12.2015	31.12.2014
Amounts in 000 €
Nominal amounts	US\$	US\$
Financial assets
Financial liabilities	(2.421)	(1.928)
Short-term exposure	(2.421)	(1.928)

Financial assets	-	-
Financial assets	(9.360)	(9.468)
Long-term exposure	(9.360)	(9.468)
Total	(11.781)	(11.396)

The following tables show the sensitivity of the result for the financial year as well as the equity in relation to financial assets and financial liabilities and the exchange rate Euro / Dollar.

We assume a change of 4% in the 31 December 2015 exchange rate of EUR / USD (2014: 0.7%). These percentages were based on the average market volatility in exchange rates for a period of 3 months from the end of each year (31/12).

In case € increases compared to the above currency, with the percentages mentioned above, the results on the earnings for the year and equity will be as follows:

Amounts in thousands €	01.01.2015-31.12.2015	01.01.2014-31.12.2014
	US\$	US\$
Income statement	354	(224)
Equity	251	(224)

In case € depreciates compared to the above currency, with the percentage mentioned above, the earning for the year will be affected as follows:

Amounts in thousands €	01.01.2015-31.12.2015	01.01.2014-31.12.2014
	US\$	US\$
Income statement	(383)	211
Equity	(272)	211

The exposure of the Group to foreign exchange risk varies during the year depending on the volume of transactions in foreign currency. However, the above analysis is considered representative of the Group's exposure to currency risk.

Credit Risk & Liquidity Risk.

The majority of Group's sales are performed through credit cards, the credit sales though are made to customers with evaluated credit history.

Liquidity risk is kept at low levels by maintaining sufficient cash and credit lines.

Furthermore, due to the imposition of capital control in June 2015, irregularities arose regarding repayment obligations of foreign suppliers, which, however, within the current period were settled and thus, proper operations of the Greek Companies of the Group was restored. The Group Management has examined the alternatives and proceeded with the timely payment of its obligations towards foreign

suppliers. Moreover, the Group has common practice of retaining cash in order to meet liquidity needs for periods up to 30 days, which, given capital control, has increased to 90 days.

Without taking into consideration the short-term loan liabilities, the Group working capital is presented positive by € 2.344 k and the Company's is presented negative by € 521 k.

Within the current FY, the parent company received from its subsidies dividends amounting to € 1.535 k and it is estimated that additional dividends standing at € 1.500 k will be received in the following FY.

The Management estimates that cash flows from operating activities in the following FY 2016, in line with the dividends to be collected will cover the company's short-term liabilities.

Within the current period, the Group and the Company repaid to the banks an amount of € 4.923 k.

Two major shareholders of the parent company "NAMSOS ENTERPRISES COMPANY LIMITED" and "DRYNA ENTERPRISES COMPANY LIMITED", representing 28.48% in the share capital of each (total of 56.96%), although it is estimated that it will not be necessary, are committed to cover working capital subsequent needs for at least the next twelve months from the date of approval of the annual financial statements of 31/12/2015.

It is noted that the financial statements of the companies included in the consolidation have been prepared based on the going concern principle. .

Risk of Changes of Fair Value due to Changes in Interest Rates

Operational revenue and operational cash flows of the Group are substantially independent of changes in market interest rates. The Group has assets of interest-bearing assets with fixed performance and the policy of the Group is to maintain approximately total borrowings at floating rate. At the end of the administrative period, the total borrowings were in floating interest rate loans.

The following table shows the sensitivity of the results for the financial year as well as the equity to a reasonable possible change of interest rate of +1.0 % or -1.0% (2012: +/-1 %). These changes are estimated to fluctuate on a reasonable basis in relation to market conditions.

	01/01-31/12/2015		01/01-31/12/2014
Amounts in thousands €	1.0%	-1.0%	1.0%	-1.0%
Income statement	(387)	387	(438)	438
Equity	(275)	275	(324)	324

D. Prospects & development for the new year

The country's tourism industry shows obvious signs of recovery. Within 2015, stability recorded in Greece and instability of tourist destinations in the region worked beneficial to the destination Greece as a safe country in the Eurozone. Lampsa's hotels having as comparative advantage the luxurious hotel units, the location and the history (Great Britain) lead the Group to a successful approach concerning the difficulties undergoing, continuing smoothly and normally their operation in all fields of activities and developing its financial performance, and as a result at this stage it is considered that despite the unstable environment governing, the Assets will not be negative affected.

It is expected that the upward trend of sales will continue in Greece in 2016. It is estimated that the introduction of King George hotel into Lampsa Group will be particularly significant, mainly due to economy of scale already achieved through the collaboration of two hotels both – at the Management and st the Personnel levels – as well as its contribution to the Company's turnover. The increase in VAT on the hotel and food sector is expected to adversely affect the Group's Hellenic hotels at 2015. Specifically, for the hotels "Grande Bretagne" and "King George", a decrease in revenue in the food sector is estimated, since the increase in VAT is expected to be absorbed mainly by the Company. A decrease on room rentals is expected as well, since the company's standard policy is to close deals based on the room's net price. A negative effect is expected to be observed on the sales of the

ANNUAL FINANCIAL REPORT

«Sheraton Rhodes» hotel, due to the imminent "double up" of the VAT (and additional increase of said index regarding the islands) and the bulk of sales (e.g mixed prices on tour operators, intensified competition etc), a fact that is not expected to affect the financials of the Group and Company due to consolidation under Equity method.

As far as the hotels in Serbia are concerned, mild growth is expected, since it appears that its forthcoming EU membership together with the foreign (especially Arab) investments in line with the demand for business tourism will start to recover. Hopes for investments in the countries that are on their way to EU membership, coupled with its central location (HUB) in the Balkans allows optimistic projections in respect of the Hotel Industry recovery. It is no coincidence that strong players of travel & tourism segment, such as ETIHAD (Air Serbia), Crown Plaza, Starwood, Radisson and Marriott have installed their facilities in Belgrade. After the investment boom in hotel and other infrastructure, Belgrade market showed the first signs of recovery in 2015 and further new mild growth is expected in 2016.

The Group monitors and continues monitoring carefully the progress in real economy, considering all necessary measures in order to ensure the smooth continuation of the business. Despite the success of the Group, both in Greece and abroad, the management estimates that the current economic crisis, continues to affect the Hotel market in which it operates. The immediate priority for the management of the Group is the maintenance of its smooth functioning in the Greek territory through the continuous identification and evaluation of all risks that may arise in the near future. In this context, the Group monitors and evaluate continuously the progress and communicates the developments to the investors for any effect that the prevailing conditions may have on the Group's functioning, financial situation and results. The management monitors with interest and attention the investment opportunities created in the country and is ready to act on its own or with the appropriate alliances, if conditions permit, in order to extend the Group. The Government and Banking portfolio are objects of special attention, which is expected to be the subject of investment opportunities. Further development of the Group will be investigated in connection with the effects of the international crisis in Greece and abroad.

To achieve the above mentioned objectives and to meet the highly volatile market conditions and the tight financing policy of banks, while aiming to strengthen the Group's cash and the planned growth financing for 2016 through equity, the Management will constantly monitor the progress of work on a monthly basis and will intervene directly to ensure adequate liquidity and will continue to successfully implement the adjustment programme of loan liabilities in the new banking environment aiming the conservation of advantageous terms of borrowing. Furthermore, to the same direction will be the proposal of BoD to the Annual Regular General Meeting of shareholders with regard to non distribution of share. With the aim of the revival of liquidity of the Company, its capital support and the examination of possible decrease of its financial cost through the payment of loan capital besides the conventional, it will suggest to the Regular General Meeting of shareholders the non distribution of share from the profits of the year. It has to be mentioned that the suggested distribution remains to be confirmed from the approval of the Annual Regular General Meeting of the shareholders.

Finally, the Management of the Group under the uncertainty dominating from the international financial crisis, the difficulty of defining the depth and the duration of the current depression, and also the difficulty forming reliable estimations for the tourist activity especially of the summer semester, announces that it will not publish estimations for the progress of its economic sizes for the next year 2016.

As a conclusion, the development of the performance of the Company and the Group seems to signal the material recovery of the Tourist Industry after a long period of depression.

Ε. Related Parties Transactions

This section includes the most significant transactions between the Company and its related parties as defined in International Accounting Standard 24 and in particular in this section, includes:

(a) Transactions between the Company and any related party made during the financial year 2015, which have materially affected the financial position or performance of the Company during the mentioned period,

(b) any changes in the transactions between the Company and any related party described in the last annual report that could have a material effect on the financial position or performance of the Company during the financial year 2015.

It is noted that the reference to those transactions includes the following elements:

a) the amount of such transactions for the financial year 2015

(b) the outstanding balance at the end of the financial year (31/12/2015)

(d) any information on transactions that are necessary for understanding the financial position of the Company, but only if such transactions are material and have not been conducted under normal market conditions.

Specifically, transactions and balances with related legal entities and natural persons, as defined by the International Accounting Standard 24 on 31/12/2015 and 31/12/2014 respectively, are as follows:

Amounts in thousands €	THE GROUP		THE COMPANY
Sales of goods – services	01.01-31.12.2015	01.01-31.12.2014	01.01-31.12.2015	01.01- 31.12.2014
Subsidiaries/jointly controlled entities	49	26	49	26
Other associates	81	64	81	64
Total	130	90	130	90
Acquisition of services	01.01-31.12.2015	01.01-31.12.2014	01.01-31.12.2015	01.01- 31.12.2014
Subsidiaries/jointly controlled entities	13	16	13	16
Other associates	397	413	397	413
Total	411	429	411	429
Balance of Receivables	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Subsidiaries/jointly controlled entities	508	28	508	28
Other associates	1	17	1	17
Total	510	45	510	45
Balance of Payables	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Subsidiaries/jointly controlled entities	6	7	6	7
Other associates	67	141	67	141
Total	73	147	73	147

Out of the above transactions, any transactions and outstanding balances with subsidiary companies have been excluded from the consolidated financial statements of the Group.

In addition, receivables / loan liabilities between subsidiary companies of total amount € 2,718 k and accordingly interest income / expenses of € 153 k and FX differences income / expenses of € 1,024 k are also excluded from the consolidated financial statements.

Outstanding balances at year end are unsecured and settlement is made in cash. No guarantees have been provided or received regarding the above receivables.

It is noted that there are no special agreements between the Parent Company and its subsidiaries and potential transactions are carried out between them under the effective market conditions, within the framework and the particularities of each market.

Regarding the FY ended December 31, 2015, the Company has made no provisions for doubtful debts relating to amounts owed by related parties.

The remuneration of key executives and BoD members was as follows:

		THE GROUP		THE COMPANY
Amounts in thousands €	01.01-31.12.2015	01.01-31.12.2014	01.01-31.12.2015	01.01-31.12.2014
Executives & BoD members
Salaries – Fees	1.062	988	658	578
Social Insurance Cost	95	147	95	92
Bonus	156	119	156	119
Other	113	7	113	7
Total	1.426	1.260	1.021	795

Finally, it is noted that in the provision made for the staff compensation for both the Group and the Company an amount of € 58 k ( 2014: 55 k) is included for key management personnel and BoD members respectively while € 6 k are included in the Income Statement (2014: 7 k).

No loans have been granted to BoD members and top-level management of the Group or their families.

F. Dividend policy

The General Meeting of shareholders has decided to pay no dividends as a result of losses brought forward as a 31/12/2014. In addition, in order to boost the Company's liquidity and capital as well as the examination of potential decrease in financial costs through payment of loan capital beyond the conventional, the Regular General Meeting of shareholders will not propose distribution of dividends to the Annual Regular General Meeting of Shareholders.

It is noted that the proposed distribution is subject to approval by the Annual Regular General Meeting of Shareholders.

Information under par. 7 and Explanatory Report according to par. 8 of article 4 of Law 3556/2007

The present explanatory report of the company BoD to the Annual Regular General Meeting of the Shareholders includes information on issues addressed in article 4 of Law 3556/2007.

Α) Capital Structure of the Company

The Company share capital amounts to twenty three million nine hundred twenty seven thousand six hundred and eighty euro (€ 23.927.680), divided in twenty one million three hundred sixty four thousand (21.364.000) common shares with voting rights of nominal value one euro and twelve cents (€ 1,12) each. Company shares are listed in the Athens Stock Exchange.

Every common share provides one voting right to the General Meeting of Shareholders.

Shareholder rights are proportional to the value of the shares owned. Each share confers all the rights provided by law and the company memorandum of association, and in particular:

• dividend rights from annual profits or liquidation profits of the Company. Each year, an initial dividend equal to 35% of net profits after the deduction of the regular capital reserve is distributed to shareholders, while the payment of an additional dividend is decided by the General Meeting of Shareholders. All shareholders registered in the company Shareholders Registry are entitled to dividends. Dividends are paid to each shareholder within ten days from the Annual General Meeting of Shareholders which approved the annual financial statements. Payment method and place is announced through press. Dividend rights are cancelled and transferred to the State after the expiration of a 5-year period commencing at the end of the year on which the General Meeting of Shareholders approved the dividend distribution,

• rights arising from the liquidation of the company or capital returns decided by the General Meeting of Shareholders,

• pre-emption right to acquire new shares in cash issued by the Company in an issue right,

• right to receive copies of the financial statements and reports issued by the Auditors and the Company Board of Directors,

• right to participate in the General Meeting of Shareholders which includes the following individual rights of legalization, attendance, participation in discussions, submission of proposals on issues included in the agenda, expressing opinions recorded in the minutes of the Meeting and voting.

• The General Meeting of the shareholders of the Company maintains all of its rights in the event of company liquidation (according to paragraph. 4 of Article 38 of the Statute).

The liability of Shareholders is limited to the nominal value of their shares.

Β) Restrictions on the transfer of Company Shares

The transfer of Company shares is conducted according to the provisions of the Law. There are no restrictions imposed by the Company memorandum of association with regards to the transfer of shares given the fact that the Company is listed on the Athens Stock Exchange.

C) Significant direct or indirect participations in the context of articles 9 - 11 of Law 3556/2007

The significant participations of the Company according to articles 9 -11 of Law 3556/2007 are the following:

Shareholders (individuals or legal entities) with a direct or indirect participation greater than 5% of the total number of Company shares, as of 31/12/2015 are presented in the table below:

TITLE	PERCENTAGE
NAMSOS ENTERPRISES COMPANY LIMITED	28,48%
DRYNA ENTERPRISES COMPANY LIMITED	28,48%
HOMERIC DEPARTMENT STORES A.E.	8,25%
TALANTON INVESTMENTS INC	5,16%
Total	70,37%

Shareholders (individuals or legal entities) with a direct or indirect participation greater than 5% of the total number of Company Shares, as of 30/03/2016 are presented in the table below:

TITLE	PERCENTAGE
NAMSOS ENTERPRISES COMPANY LIMITED	28,48%
DRYNA ENTERPRISES COMPANY LIMITED	28,48%
HOMERIC DEPARTMENT STORES A.E.	8,25%
TALANTON INVESTMENTS INC	5,16%
Total	70,37%

D) Shareholders with special controlling rights

There are no Company shares that provide special controlling rights to their holders.

Ε) Restrictions on voting rights

The Company memorandum of association does not set any restrictions on voting rights provided by its shares.

F) Agreements between shareholders which entail restrictions on the transfer of shares or restrictions on voting rights

Major shareholders, NAMSOS ENTERPRISES COMPANY LTD and DRYNA ENTERPRISES COMPANY LTD as of 30/03/2016 had 7.792.496 common Company shares pledged in favor of EFG EUROBANK SA. As a result, transfer of the above-mentioned shares falls under restrictions.

NAMSOS ENTERPRISES COMPANY LTD and DRYNA ENTERPRISES COMPANY LTD has maintained its voting rights.

G) Guideline on the appointment and replacement of BoD members and on memorandum of association amendments

The relative rules and regulations set in the Company memorandum of association on the appointment and replacement of BoD members and on the amendment of articles of the memorandum are in line with the provisions of Law 2190/1920.

H) Authorities of the Company BoD or BoD members on the issuance of new shares or the repurchase of Company shares

A) According to Article 13 paragraph 1 element b) and c) of Law 2190/1920 and in conjunction with Article 6 of the Company memorandum of association, the BoD has the right, following a decision of the General Meeting of shareholders which is subject to the disclosure requirements of article 7 b of Law 2190/1920, to increase the Company share capital by issuing new shares. A decision must be taken by a majority of at least two thirds (2/3) of BoD members.

In this case, the share capital may be increased by up to the amount of the paid-up capital up on the date the Board of Directors was given this authority by the General Meeting. This BoD right may be renewed by the General Meeting for a period of up to five years.

B) In accordance with the provisions of Article 13 § 13 of Law 2190/1920, following a decision of the General Meeting of shareholders, a stock option plan may be offered to BoD members and staff in the form of stock options, according to the specific terms of this decision. The General Meeting defines mainly, the maximum number of shares that may be issued, which by law, cannot exceed 1/10 of the existing shares if the holders exercise their options, the price and terms of offering of shares to beneficiaries.

The Board, by resolution, regulates any other relevant details that are not regulated by the General Meeting, issues certificates of stock options and every December issues shares to the beneficiaries who exercise their options, increasing respectively the share capital and confirming the increase.

C) As of today, the General Meeting of shareholders of the Company has not decided to implement a share repurchase program in accordance with the provisions of Article 16 of Law 2190/1920.

I) Significant agreements which take effect, are altered or terminated in the event of a change in the control of the Company following a public tender offer

There are no agreements which take effect, are altered or terminated in the event of a change in the control of the company following a public tender offer.

J) Agreements that the Company has made with BoD members or its staff, which involve compensation in case of resignation or termination of employment with no material cause as a result of the public tender offer.

There are no agreements between the Company and BoD members or its personnel, which involve compensation in case of resignation or termination of employment with no material cause as a result of the public tender offer. The accumulated Staff Leaving Indemnities as of 31/12/2015, reached € 2,277 k. There is no provision for compensation for BoD members.

CORPORATE SOCIAL RESPONSIBILITY GRAND BRETAGNE AND KING GEORGE HOTELS

In their capacity as healthy, active and socially responsible entities, Grand Bretagne and King George have accorded considerable weight to the support of worthwhile actions and initiatives that are beneficial to the community, focusing on three pillars.

The Environment:

Since 2006, we have been recycling glass, paper, plastic, lamps, used kitchen oil, ink cartridges, batteries, appliances, etc.
W have especially adjusted the rooms of the third floor of the hotel focusing on environmentally friendly facilities. Organic products and recycling options are available in the rooms.
Our clients can participate in activities like Starwood's entitles «Green Room» and we have been awarded with the Hotel Special prize «GREEN KEY».
We have established a Special Committee of environmental health and safety of the hotel, which ensures harmonization of the Hotel with the Greek laws, the laws of the European Union and Starwood environmental initiatives.
An annual environment week has been established at the Hotel, under "Earth Hour" with participation and presentations for hotel staff by WWF Greece.
We frequently and actively participate in "Tree Planting- Reforestation" initiative organized by SKY television channel in the region of Attica. Our Hotel offers all volunteers food and the employees of the Hotel participate in tree planting. Our motto is "Let's all take part – each planting a tree, helping the environment and improving the city we live in."
As part of the Starwood program "Together as One", for the first time we organized on 25.10.2015 a beach cleaning in the region of Legrena. This action was carried out with the cooperation and support of Medasset, a non-profit organization that protects the turtles' living environment.

ANNUAL FINANCIAL REPORT

We use Organic Chemicals of ECOLAB company. 95% of their raw materials are biodegradable.
We use energy saving light bulbs at the hotel.
We have installed natural gas in the hotel kitchens and always try to make the best use of the renewable energy sources.

The Society:

We organize fundraising campaigns for charities such as "The Smile of the Child", "With Love", "Doctors of the World", "institution Theotokos" etc.
We collect and donate clothing twice a year for the City of Athens Homeless Charity and "Children Villages SOS».
We have been offering food to the Homeless Foundation and the Foundation "Galini" since 2013.
We donate hotel equipment to Athens orphanages.
We inform our clients about the support they can offer within the frame of Starwood's in partnership with UNICEF - «Life is unique."
We support UNICEF, both as part of Starwood's programs internationally ("UNICEF-Road to Awareness", as well as locally, buying children gifts and organizing fundraising campaigns to support the significant initiatives implemented by this organization. In the last three years (2013 – 2014 and 2015 in cooperation with Sheraton Rhodes Resort) we organized a Cycling Event with the participation of the hotel staff, who cycled in the center of Athens, symbolically carrying the message of voluntary contributions, teamwork and sensitivity. In this way we collected money for UNICEF, assisting them in their important work.
The last five years we support the global awareness initiative for the prevention of breast cancer through the Race for the Cure- Greece. The race takes place annually at Zappion with the support of the Panhellenic Association of Women with breast cancer "Alma Zois". Our Hotels provide financial support to the Association by covering the costs of participating and donating a symbolic amount for every kilometer run by each collaborator.
The last two years our Christmas Bazaar takes place successfully where handmade creations of our collaborators are sold in order to raise money for the support of the charitable work of "The Ark of the World" as well the "Lighthouse for the Blind". "The Ark of the World" is a nonprofit organization found in 1998 and deals with the care of abandoned children. In 2015 for the first time, we hosted the creations of the "Lighthouse for the Blind".
Our Hotel has decided to donate the prize money of \$ 1,000 won through participating in the Sales Blitz Program 2010, a global initiative of Starwood Hotels and Resorts, to Unicef to support their charity work.
We invite children from the "Children Village SOS» to our annual Christmas festivities organized fro the children of our employees.
We collaborate with the Hellenic Anticancer Society.
Moreover, in the context of the new program "Starwood Associate Relief Fund", all Starwood hotels employees have made donations to the fund supporting their co-workers worldwide in case of natural disasters.
Our Company has donated to Aretaeio hospital a Resectoscope TURis, manufactured by OLYMPUS PROTON, installed in Urology-Surgical department of the hospital on 11/05/2014.
In 2016, our Hotel participates in the Football Tournament organized by Asteras Vouliagmenis' charitable purpose of improving the facilities and the standard of living of the institutions «SOS Village Varis» and «The Smile of the Child».
We carry out various fundraising activities and support the Institutions' work and Non-Profit Organizations such as: MERIMNA, DESMOS, UNICEF, LIFELINE, THE SMILE OF THE CHILD, and KID AND FAMILY.

Our People:

We collaborate with the Children's Hospital "Agia Sophia" and we have created a blood bank regarding our employees, with scheduled blood drives twice a year.
We take care to ensure appropriate working conditions and compliance with health and safety regulations to protect our employees and provide safe working environment.
We focus on professional development and training of our staff.
We organize Internal Corporate Events for the staff of our hotels, in the context of internal communication activities.
Since 2004, we have been implementing a Collective Insurance Program in collaboration with a private insurance company for our staff, in addition to social security.
We have created a special type of hotel rooms which are specially designed for people sensitive to allergies.
The last ten years we have been implementing the New Generation Partners Program through which we hire 20-30 individuals annually, from various Private and Public Schools and Educational Institutions, to complete their Internship.

CORPORATE GOVERNANCE CODE OF THE COMPANY «LAMPSA HELLENIC HOTELS S.A»

1. Introduction

This Code of Corporate Governance (the "CCG") includes the corporate governance practices applied by the Company so voluntarily and in requirement of existing law (L. 2190/1920, L. 3693/2008, L. 3884/2010 etc.). It aims not only to comply with the provisions of Law 3873/2010, but also to improve information of private and institutional shareholders.

The adopted principles of corporate governance code affect the operation, the procedures and decision making at all levels of the Company's activities, seeking to ensure the necessary transparency on equal terms to all interested parties.

In this context, the Company took into account the general principles of the Draft Greek Corporate Governance Code of Hellenic Corporate Governance Council (HELEX). The Code is posted in the Company's website: http://www.lampsa.gr, in the domain "Press Releases –Announcements".

GENERAL PRINCIPLES

1. Role and responsibilities BoD

The BoD should direct the affairs of the company for the benefit of the company and shareholders, ensuring fair and equitable treatment of all shareholders.

In performing its duties, the BoD should take account of the parties, whose interests are connected with those of companies, such as the customers, creditors, employees and the social groups directly affected by the company's operation.

The main issues to be decided collectively decided by the BoD should be included:

the approval of long-term strategic and operational objectives of the company,
the approval of the annual budget and the business plan,
decisions on significant acquisitions and divestitures,
the selection of senior executives at the company, combined with the monitoring of administrative hierarchy and succession - Ensuring the reliability of financial statements and company details, financial information systems and data and information made publicly available, and ensuring the effectiveness of internal audit and risk management,
the prevention and handling possible cases of conflict of interest between the company and the other by the Management, BoD members or major shareholders (including shareholders with direct or indirect power to shape or influence the composition and behavior of BoD),taking into account transparency and the protection of corporate interests,
ensuring an effective compliance process company with relevant laws and regulations
the responsibility of making decisions and monitoring the effectiveness of the company's management, and
the formulation, dissemination and application of the basic values and principles of the company, governing its relations with all parties, whose interests are associated with the company.

2. Size and composition of the BoD and senior management

The size and composition of the BoD should allow the effective exercise of their duties, taking into account the size, activity and ownership of the business. The board and senior management should be characterized by a high level of integrity and possess diverse knowledge, skills and experience to meet their corporate objectives. Nominations for the BoD will be made on merit and objective criteria. The board should ensure the smooth succession of members, and senior management, with a view to longterm business success.

3. Duties and conduct of BoD members

Each board member is subject to legal liability of loyalty to the Company. It should therefore act with integrity and in the interest of the Company to have sufficient information about the transactions with related companies and to preserve the confidentiality of non- public information available. The board directors and persons holding powers conferred by this, should not have a competitive relationship with the Company and should avoid any role or activity that creates or appears to create a conflict between their personal interests and those of the Company, including having a spot on the Board or management of competing companies without the permission of the General Assembly. Board members should contribute their experience and commit to their duties the necessary time and attention. They should also limit accordingly other professional commitments in particular any Board other companies) . Board members should try to participate in all meetings of the Board and the committees on which they take part. The board should regularly assess its effectiveness in fulfilling its duties, and that of its committees. The independent board members have the right to submit to the General Meeting of Shareholders reports and statements, separately from the other members of the Board, in case they deem it appropriate.

4. Election- Operation of the BoD

Nominations for the BoD will be made on merit and objective criteria, aiming to the achievement of a balance between adequate representation of the majority, but also to ensure the effective participation of the independent non-executive members.

Depending on business needs, the board should meet with the needed frequency to effectively perform their duties. The Chairman should be responsible for setting the agenda, ensuring the proper organization of the Board's work, but also the efficient conduct of its meetings. The information provided by the Management Board should be timely, so as to enable it to cope effectively with the tasks arising from its responsibilities. It should be the responsibility of the President to ensure accurate and timely information to members of the Board, and effective communication with all shareholders, focusing on a fair and equivalent treatment of the interests of all shareholders.

5. System of Internal Audit

The BoD should ensure the accuracy and reliability of the financial statements and the correctness of announcements, which are imposed in order to present to investors a clear picture and valuation of real position and prospects of the Company.

The BoD should maintain an effective system of internal audit aiming to safeguard the assets of the Company, and the identification and dealing with the most significant risks. It should monitor the implementation of the Company's strategy and review it regularly. The main risks to be faced and the effectiveness of internal audit in managing these risks should be reviewed periodically.

The review should cover all essential audits, including financial and operational audits, compliance audit and audit of risk management systems. The Board, through the audit committee should also be in direct and regular contact with the statutory auditors in order to receive regular updates from the past in relation to the proper functioning of the internal audit system.

6. Level and structure of remuneration

The level and structure of remuneration should aim to attract and retain BoD members, managers and employees in the Company, adding value to the Company with their skills, knowledge and experience. The level of remuneration should be in line with their qualifications and their contribution to the Company. The BoD should have a clear picture of how the Company pays its executives, especially those who have the appropriate qualifications for the effective management of the Company.

7. The General Assembly of Shareholders

The BoD should ensure the continuous and constructive dialogue with shareholders of the Company, particularly those with significant shareholdings and a long-term perspective.

8. The General Assembly of Shareholders

The BoD should ensure that the preparation and conduct of the General Assembly of Shareholders facilitate the effective exercise of shareholders' options, who should be fully informed on all matters related to their participation in the General Assembly, including of the daily agenda items, and their rights at the General Assembly. The board should facilitate, within the framework of the relevant statutory provisions, the participation of all shareholders in the General Assembly, without discrimination. The BoD should utilize the General Assembly of shareholders to facilitate meaningful and open dialogue with the Company.

Part A - The BoD and its members

1. Role and responsibilities of the BoD

The roles of both the BoD and Management are identified and clearly documented in the Memorandum of corporation and the internal procedure. It is the competent corporate body which decides each transaction regarding the administration and management of the Company, subject to the exclusive competence of the General Assembly by the law or by the prescribed topics Memorandum.

The BoD adopts clear policy devolution to the Management, which includes a list of issues that the BoD has the authorization to decide. For the achievement of Company's objectives and the efficient and flexible operation of the Company, the BoD may delegate any of its responsibilities, except those that require collective action to one or more members of the BoD or to members outside the BoD.

For the performance of the service may be appointed by the BoD one General Manager either by the members of the BoD, or outside it. The General Manager who is not a director may attend the meetings of the BoD without voting right, after permission by the BoD.

In order for the Company to take validly responsibilities, two signatures are always required for which the Chairman of the BoD, Vice president and General Manager are authorized, if not prevented any of these three, other authorized BoD member appointed for that purpose by the BoD. Besides the persons mentioned above, the BoD may grant an authorization of first or second signature to other persons selected among senior executives in accordance with the requirements of the service.

The Company, in the name of the BoD, is outwardly and before all administrative or judicial authorities represented by the Chairman of the BoD or the Vice President, if any of them is unavailable, the General Manager or one of the BoD members appointed by the BoD.

In order to ensure the effective functioning of the BoD, an audit committee has been established, responsible for monitoring financial information, the effective operation of internal audit and risk management systems, and supervision and monitoring of statutory audit as well as the issues related to objectivity and independence of statutory auditors.

2. B.o.D. size and composition

Considering that the size and composition of the B.o.D. should allow the effective exercise of its functions and reflect the size, activity and ownership of the business, the Company is managed under the Statute, by a Board of Directors consists of seven to ten (7-10) members, executive and nonexecutive directors in accordance with Law 3016/2002 as applicable, shareholders or not, elected by the General Meeting of shareholders.

The size and composition of the B.o.D. of the Company must ensure balance between executive, nonexecutive and independent non-executive members. So the B.o.D. is for the third at least of nonexecutive members (including independent non-executive directors). The executive, non-executive and independent members of the Board appointed by the General Meeting.

The executive members of the B.o.D. dealing with the daily management of the company and maintain some form of employment relationship with it.

The non-executive members participate in decisions and monitor the activities of the Company. It is responsible for the promotion of all corporate issues, participates in any boards and committees and is particularly responsible for upholding the principles of good corporate governance. Among the nonexecutive members are two (2) independent directors who meet the independence requirements imposed by applicable law.

The non-executive members maintain independence in the investigation of issues to consider, with the goal of providing substantive work and create a climate of trust between the Board of directors and senior executives and managers.

The responsibilities of President and CEO should not be coincided to the same person. Further, if the President of the Board is an executive member will be appointed non-executive Vice Chairman. The B.o.D. of the Company will be assisted by a Secretary, chief executive or lawyer who will attend B.o.D. meetings and keep minutes.

The corporate governance statement should include information on the composition of the B.o.D., and the names of the President of the B.o.D., the Vice-President, CEO , and the Presidents of the Board Committees and their members . Moreover, this statement should be identified and the independent non -executive members the B.o.D. considers that retain their independence. The corporate governance statement should also disclose the term of office of B.o.D. members, including brief CVs.

3. B.o.D. members duties and conduct

The B.o.D. members should have a thorough knowledge of both the operation and the objects of the company and the broader market sector to contribute effectively and efficiently to the smooth and efficient operation of the Company.

The continuous abstinence of a consultant, without justifiable cause, who resides at the headquarters of the Company, from the B.o.D. meetings for a period in excess of four months, equates to resignation.

A director who is absent or indisposed, has the right with his own responsibility to delegate his representation to the Council to another counselor. The authorization of his representation may be apply to one or more than one meeting of the B.o.D.. In the absence or incapacity of non-executive members of the B.o.D., the authorized representative shall be similarly non-executive member. The same applies to the independent members of the B.o.D.

4. B.o.D. Election and Operation

The B.o.D. is elected by the General Assembly with a maximum term of three (3) years.

The B.o.D. shall submit to the General Meeting of shareholders, who have the decisive power to do so, state candidate B.o.D. members, after adequate and timely information to shareholders regarding the profile of the candidates. The B.o.D. should ensure the smooth succession of members, and senior management, with a view to long-term business success.

The B.o.D. should meet with the necessary frequency to effectively perform their duties. The information provided by the Administration should be timely, in order to have the ability to cope effectively with the tasks.

The discussions and decisions of the B.o.D. and its committees should be recorded to the minutes. The minutes of each meeting should be shared and approved at the next meeting of the B.o.D. or the committee.

The B.o.D. members should ensure their own regular information, regarding business developments and the major risks to which the Company is exposed . Also should be informed timely of changes in legislation and the market environment. The B.o.D. members should come in regular contact with the management staff of the Company through regular presentations by head and service sectors.

The B.o.D. members should have the right to ask the Administration, through the CEO, any information they consider necessary for the performance of their duties at any time.

5. B.o.D. Assessment

The assessment of the effectiveness of the B.o.D. and its committees should take place at least every two (2) years and be based on a specific procedure . This process should be headed by the President, and its results are discussed by the B.o.D. and following the assessment, the President should take measures to address the identified weaknesses. It is also best practice to meet regularly non-executive directors without the presence of executive members, in order to assess the performance of executive directors and set their fees.

Part B- Internal Audit & Risk Management

1. Audit Committee

The Company applies control procedures to ensure the reliability of the financial statements and the effectiveness of the operations.

In this context, it's been established the statutory prescribed Audit Committee, which is responsible for monitoring the internal audit department on a periodic basis and whenever requested. The Commission is in constant contact with the Internal Audit and attends to ensure all those requirements and conditions necessary for the non-discontinuing operation of the internal control.

The precise scope of the responsibilities of the two bodies described above in detail of the internal operation of the Company.

The Audit Commission consisting of at least two non-executive Directors an independent non-executive director and, as noted, is objective conduct internal and external audits and effective communication between the auditors and the B.o.D..

Within the responsibilities include ensuring the Company's compliance with the rules of Corporate Governance , as well as ensuring the proper functioning of the Internal Control and supervision of the work of the Internal Audit Department of the Company and evaluating the chief . In addition , the Audit Committee monitors the work of the independent auditors , discusses with them any weaknesses in internal control and has the ability to provide recommendations - advice to the General Meeting of Shareholders regarding the appointment, retention or dismissal of the external auditors of the Company.

To fulfill its tasks, recognizing that the Audit Committee members do not perform the work of auditors and / or accountants. Based on the above, it is not fall the responsibility of those the execution of detailed work book review - support and / or part thereof and / or other similar work.

2. Internal control system

The B.o.D. has recommended statutory internal audit service, which operates in accordance with the internal operation.

The Internal Audit of the Company is an independent organizational unit, which reports to the B.o.D. of the Company. The responsibilities include the evaluation and improvement of risk management and internal control, as well as verification of compliance with established policies and procedures as outlined in the internal operation of the Company, the applicable legislation (mainly stock) and decisions B.o.D..

The members of the B.o.D., the Management and all members must cooperate and provide all necessary information in this section to facilitate in every way its task.

The B.o.D., with the support of the Audit Committee should adopt appropriate policies on internal control to ensure the effectiveness of the system. You must also specify the procedure to be adopted for monitoring the effectiveness of internal control system, which will include the scope and frequency of reports of the internal audit department that receives and deals with the B.o.D. during the year as and the process of annual assessment of internal control.

3. Risk management

The Company shall have developed related policies and procedures which ensure effective risk management activities, maintaining and preserving the overall system of internal control and financial reporting.

The statutory policies should ensure secure protection and preservation of assets of the information system from which derived the historical financial information, proper handling, deal with financials for the preparation of financial and accounting statements of each period.

The main characteristics of the system as applied to the process of preparing financial statements combine:

i) exploiting the existing organizational structure and professional competence of the staff,

ii) appliance the unified and modern IT systems and compliance procedures that restrict access and change the information,

iii) the preparation of annual budget, which is monitored during the year through regular reports, for comparison with the current actual data and identify discrepancies.

iv) the supervision and control of significant transactions through the system to represent the Company,

v) The effective Communication between auditor, internal auditor and the Audit Committee.

Part C – Remuneration

The process for determining remunerations must be based on objectivity, transparency and professionalism and be independent of any conflict of interest.

The level and structure of remunerations must aim at attracting and maintaining management and employees that add value to the Company with their skills, knowledge and experience. The level of remunerations must be according to the qualifications and contribution of each employee to the Company. The BoD must have a clear understanding on the methods used by the Company to remunerate/reward its employees, especially those employees who possess the right skills to manage the company efficiently.

As far as BoD members are concerned, their remuneration should take into account their duties and responsibilities, their performance compared to predefined targets, the financial status and the future prospects of the Company as well as market conditions. In this framework, fixed remuneration will be combined with extra material benefits and a bonus, all related to the total performance of BoD members.

As far as non-executive members are concerned, their remuneration is proposed to reflect their time spent on Company affairs and their responsibilities. It is recommended that their remuneration is not directly related to their performance so as not to discourage any possible objections against management decisions assuming high business risk.

The remuneration of BoD members is pre-approved by the shareholders' meeting, based on a proposal made by the BoD following the above-mentioned framework. Final approval of the remuneration of BoD members (executive and non-executive) is granted by the General Meeting of the Shareholders according to the provisions of the law.

Part D – Relations with shareholders

1. Communication with shareholders

The BoD must maintain constant and constructive communication with shareholders, especially with those holding a major share with long-term prospects.

The Company must maintain a corporate website with public information on corporate governance, management structure, ownership status as well as with other useful information for shareholders and investors.

2. General Meeting of shareholders

The BoD must ensure that the General Meeting of shareholders is prepared and organised in such a way that facilitates shareholders to exercise their rights efficiently. It must also be ensured that shareholders are fully informed on all issues relating to their participation in the General Meeting, including topics for discussion on the agenda and their rights.

In the framework of transparent communication with shareholders, the President of the BoD, the Managing Director, internal and external auditors must be available in order to provide all necessary information to the shareholders. The BoD must follow the principle of equal treatment of all shareholders in relation to the provision of information.

Detailed information on the role of the General Meeting of shareholders, its basic authorities and a description of shareholders' rights and how these are executed is provided in the Corporate Governance Statement, which is included in the annual management report of the Company according to the provisions of the law.

The present Corporate Governance statement is an integral part of the annual report of the BoD of the company.

Athens, March 30, 2016

President of the BoD

GEORGE GALANAKIS

I.D. No Ξ 282324

D. Annual Financial Statements

The accompanying financial statements were approved by the Board of directors of «LAMPSA HELLENIC HOTELS S.A. » on March 30, 2016, and have been published on the Company's website www.lampsa.gr as well as on the Athens Exchange's website, where they will remain at the investing public's disposal for at least 5 (five) years from the date of publication.

Amounts in thousand Euro, unless otherwise mentioned

Statement of Financial Position

		CONSOLIDATED		CORPORATE
Amounts in thousand €	Note	31/12/2015	31/12/2014	31/12/2015	31/12/2014
ASSETS
Non Current Assets
Property, plant and equipment	5.2	114.812	118.984	72.406	72.484
Intangible Assets	5.3	280	304	78	93
Goodwill	5.4	-	-
Investments in Subsidiaries	5.5	-	-	23.840	23.840
Investments in Joint Ventures	5.6	-	301
Other Long-term Assets	5.7	371	359	107	179
Deferred Tax Assets	5.16	8.518	9.092	8.518	9.092
Total		123.980	129.040	104.948	105.688
Current Assets
Inventory	5.8	1.108	871	809	630
Trade and other receivables	5.9	1.189	1.827	974	1.529
Other Receivables	5.9	1.154	669	683	228
Other Current Assets	5.9	569	817	446	722
Cash and cash available	5.10	5.770	3.057	2.954	1.142
Total		9.789	7.240	5.866	4.251
Total Assets		133.770	136.280	110.814	109.939

EQUITY AND LIABILITIES
Equity	5.11
Share Capital		23.928	23.928	23.928	23.928
Share Premium		38.641	38.641	38.641	38.641
Statutory Reserves		878	878	878	878
Other Reserves		507	(365)	494	324
Retained Earnings		15.968	15.367	2.806	(1.889)
Foreign Exchange Difference Reserves		-	(502)
Equity attributable to owners of the parent		79.922	77.947	66.747	61.882
Non-controlling interest	5.11	3.332	3.380
Total Equity		83.254	81.328	66.747	61.882
Long-term liabilities
Employee termination benefits liabilities	5.19	2.277	2.340	2.277	2.340
Long-term Debt	5.17	31.067	35.605	29.938	34.145
Deferred Tax Obligations	5.16	3.428	3.845	-	-
Other Long-term Liabilities	5.14	266	27	265	23
Other Provisions	5.12	590	563	89	107
Total		37.628	42.381	32.569	36.615
Short-term Liabilities
Suppliers and other liabilities	5.13	2.272	2.779	2.189	2.663
Income tax payable	5.15	182	106	-	0
Short-term debt	5.17	3	-	-	-
Short-term portion of bond and bank loans	5.17	5.442	5.255	5.110	4.923
Other liabilities	5.14	4.988	4.431	4.198	3.855
Total		12.887	12.571	11.497	11.441
Total liabilities		50.516	54.952	44.067	48.056
Total Equity and Liabilities		133.770	136.280	110.814	109.939

Potential differences are due to rounding

Amounts in thousand Euro, unless otherwise mentioned

Statement of Comprehensive Income

		CONSOLIDATED		CORPORATE
		1/1-	1/1-	1/1-	1/1-
Amounts in thousand €	Note	31/12/2015	31/12/2014	31/12/2015	31/12/2014
Sales	5.20	51.522	48.693	41.443	38.651
Cost of Sales	5.20	(32.467)	(31.611)*	(24.995)	(24.410)*
Gross Profit		19.055	17.082	16.448	14.240
Distribution Expenses	5.20	(5.668)	(5.053)*	(5.091)	(4.485)*
Administrative Expenses	5.20	(7.139)	(6.394)*	(5.744)	(5.056)*
Other Income	5.20	993	1.233	649	818
Other expenses	5.20	(431)	(859)*	(258)	(186)*
Operating Profit		6.811	6.007	6.005	5.331
Financial expenses	5.21	(1.322)	(1.660)	(1.209)	(1.499)
Financial income	5.21	49	53	4	2
Other financial results	5.21	(1.653)	(6.941)	412	(1.990)
Earnings (Losses) from impairment of assets	5.21	(2.035)	(4.148)	-	-
Portion from (loss)/profit of associates 5.205.20		(301)	(181)	-	-
Profit / (Loss) before Tax		1.548	(6.870)	5.212	1.843
Income Tax	5.22	(294)	1.945	(517)	1.675
Net Profit / (Loss) for the period		1.254	(4.925)	4.695	3.519

Other Comprehensive Income reclassified into Income
Statement for Subsequent Periods
Foreign exchange differences on translation of financial
statements of foreign operations		502	(203)	-	-
Effect of changes in participating interest in subsidiary		228	(729)	228	(710)
Actuarial results reserves		(58)	185	(58)	185
Effect of tax on actuarial results reserves		672	(747)	170	(525)
Other total comprehensive income for the period after tax		1.926	(5.672)	4.865	2.993
Total Comprehensive Income for the Period
Profit for the period allocated to:
Owners of the parent		1.303	(4.556)	4.695	3.519
Non-controlling interest		(48)	(369)
		1.254	(4.925)	4.695	3.519
Total Comprehensive Income for the Period allocated to:
Owners of the parent		1.975	(5.303)	4.865	2.993
Non-controlling interest		(48)	(369)	-	-
		1.926	(5.672)	4.865	2.993

Earnings per share allocated to owners of the parent
Basic in €	5.23	0,0610	-0,2133	0,2198	0,1647

		CONSOLIDATED	CORPORATE
	1/1-31/12/2015	1/1-31/12/2014	1/1-31/12/2015	1/1-31/12/2014
EBIT	6.811	6.068	6.005	5.308
EBITDA	11.745	10.695	8.562	7.819

Potential differences are due to rounding

The accompanying notes form an integral part of the annual financial report.

* Cost of sales items, administrative expenses, distribution and other expenses of the Group and the Company as at 31/12/2014 have been reclassified due to the parent company reassessment of costs allocation.

Statement of Changes in Equity

The Group

	THE GROUP
	Equity allocated to owners of LAMPSA
Amounts in thousands €	Non Share Share Forex Differences Other Retained controlling Capital Premium Reserves reserves earnings Total interest Total
Balances as at January 1, 2014	23.928	38.641	(300)	5.972	15.006	83.247	3.749	86.996
Transfer of reserves			(203)			(203)		(203)
Change due to subsidiary acquisition				(4.200)	4.200	-		-
Total Comprehensive Income for 2014				(1.258)	(3.838)	(5.097)	(369)	(5.466)
						-		-
Equity balance as at December 31, 2014	23.928	38.641	(502)	513	15.367	77.947	3.380	81.328

Balances as at January 1, 2015	23.928	38.641	(502)	513	15.367	77.947	3.380	81.328
Transfers				702	(702)	-		-
Total Comprehensive Income for 2015			502	170	1.303	1.975	(48)	1.926
Equity balance as at December 31, 2015	23.928	38.641	(0)	1.385	15.968	79.922	3.332	83.254

Potential differences are due to rounding

The Company

THE COMPANY
Amounts in thousand €	Share Capital	Share Premium	Other Reserves	Retained Earnings	Total
Balances as at January 1, 2014	23.928	38.641	5.927	(9.608)	58.888
Distribution of dividends in 2013					-
Transfers			(4.200)	4.200	-
Total Comprehensive Income for 2014			(525)	3.519	2.993
Equity balance as at December 31, 2014	23.928	38.641	1.202	(1.889)	61.882
Balances as at January 1, 2015	23.928	38.641	1.202	(1.889)	61.882
Distribution of dividends in 2014					-
Total Comprehensive Income for 2015			170	4.695	4.865
Equity balance as at December 31, 2015	23.928	38.641	1.372	2.806	66.747

Potential differences are due to rounding

Amounts in thousand Euro, unless otherwise mentioned

Statement of Cash Flows

	THE GROUP			THE COMPANY
	01/01-	01/01-	01/01-	01/01-
Amounts in thousand €	31/12/2015	31/12/2014	31/12/2015	31/12/2014
Operating activities
Profit / (Loss) before tax	1.548	(6.870)	5.212	1.843
Plus / less adjustments for:
Depreciation	4.935	4.650	2.558	2.533
Amortization of grants	-	(23)	-	(23)
Profit / (Loss) of asset sale – impairment	2.034	4.231	-	-
Provisions/ Revenues from unused provisions of previous years	131	211	179	(216)
Impairment	301	5.913		2.326
Investing Results	-	-	(1.535)	(1.657)
Foreign exchange differences	1.459	1.208	904	1.134
Interest income	(49)	(53)	(4)	(2)
Interest expenses	1.322	1.660	1.209	1.499
Plus/ less adjustments for changes in working capital accounts
or accounts related to operating activities:
Decrease / (increase) in inventories	(237)	(10)	(179)	(52)
Decrease / (increase) in receivables	942	(236)	834	21
(Decrease) / increase in short term liabilities (except for banks)	246	(32)	98	78
Less:	-	-
Interest expense and related expenses paid	(1.227)	(1.679)	(1.100)	(1.577)
Taxes paid	(100)	(430)	-	-
Total inflows / (outflows) from operating activities (a)	11.307	8.541	8.176	5.907
Investing activities
Acquisition of tangible and intangible assets	(2.793)	(2.406)	(2.480)	(759)
Dividends Received	-	-	1.535	1.657
Increase of share capital and amounts paid for capital increase of consolidated
companies	(500)	-	(500)
Interest collectable	49	2	4	2
Collection of Amortization	-	51
Total inflows / (outflows) from investing activities (b)	(3.244)	(2.353)	(1.441)	900
Financing activities
Payments of loans	(5.255)	(6.869)	(4.923)	(6.869)
Repayment of Finance Lease liabilities	(11)	(209)	-	-
Payments for long-term deposits	(84)	-	-	-
Total inflows / (outflows) from financing activities (c )	(5.350)	(7.078)	(4.923)	(6.869)
Καθαρή αύξηση / (μείωση) στα ταμειακά διαθέσιμα και ισοδύναμα (α) + (β) + (γ)	2.713	(890)	1.811	(62)
Net increase / (decrease) in cash and cash equivalents (a) + (b) + (c )	3.057	3.947	1.142	1.204
Effect of foreign currency translation differences
Cash and cash equivalents at the end of year	5.770	3.057	2.954	1.142

Potential differences are due to rounding

Notes to the Financial Statements

1. General Information

LAMPSA Group has fully adopted all the International Financial Reporting Standards and their Interpretations adopted by the European Union mandatory applicable for the preparation of the current FY financial statements.

The parent company of the Group is "LAMPSA HELLENIC HOTELS S.A. based in Athens, Vasileos Georgiou Α1, and is registered in the Companies Register of the Ministry of Economy, Competitiveness and Shipping, No. REG 6015/06 / V/86/135 and GSC Reg. No. 223101000 and its term of duration is set at one hundred (100) years, which began from the publication in the Government Gazette of the Royal Decree approving its memorandum of association. The company has been operating continuously since its foundation, over ninetysix (96) consecutive years. The General Meeting of Shareholders as of 19/06/2015, decided to extend the duration of the company for fifty (50) years, with the corresponding amendment of Article 4 of its Articles of Association.

The Group objective is acquisition, construction and operation of hotels in Athens and elsewhere in Greece or abroad, as well as related businesses, such as acquisition and / or exploitation of thermal spring water, resorts, public entertainment, clubs, etc. . The Company website is www.lampsa.gr.

The shares of the group are listed on the Athens Stock Exchange since 1946.

The annual financial statements were approved for issue by the Company Board of Directors on 30 March, 2016.

The company LAMPSA and Starwood Hotels and Resorts Worldwide Inc, signed an agreement on management and hotel operation in December 2001. According to the agreement, Starwood, agreed to provide management and operation services to the hotel «Grande Bretagne». The term of the Management Agreement is initially of twenty five (25) years, with option to extend for another 25 years. Both companies have limited rights to terminate the agreement without reason.

There was also signed a management agreement with Starwood Hotels & Resorts Worldwide Inc. and Touristika Theretra S.A., the owner of «Sheraton Rhodes Resort» Hotel. The agreement concerns the assumption of operational management of the hotel (operating services agreement). It is to be noted that LAMPSA holds 50% of the shares of Touristika Theretra S.A.

On 24/12/2012, between the parent company and the bank "Eurobank Ergasias S.A." there was signed a definitive notarized leasing contract of the King George Hotel. The leasing agreement became effective following signing Lease Delivery and Reception Protocol as at 20/3/2013.

2. Basis for preparation of annual financial statements

The accompanying separate and consolidated financial statements of LAMPSA S.A. have been prepared in accordance with the International Financial Reporting Standards (hereinafter IFRS). The financial statements have been prepared based on historic cost principal as amended following the adjustment of certain assets and liabilities at fair values and the going concern principle and are in accordance with the IFRSs, as issued by the International Accounting Standards Board (IASB) and according to their interpretations, which have been published by the International Financial Reporting Interpretations Committee (IFRIC) of IASB.

All the revised or newly issued Standards and Interpretation applicable to the Group and effective as from December 31, 2015 were taken into account under the preparation of the financial statements for the current tear to the extent they were applicable.

The preparation of financial statements according to IFRSs requires use of accounting estimates. It also requires management estimations under the application of the Company accounting principles. The cases involving a higher degree of judgment or complexity, or the cases where assumptions and estimates are significant to the consolidated financial statements are included in Note 2.2.

In 2003 and 2004, the International Accounting Standards Board (IASB) issued a series of new International Financial Reporting Standards (IFRS) and revised International Accounting Standards (IAS), which are combined with the non-revised International Accounting Standards (IAS) issued by the International Financial Accounting Standards Board, prior to IASB, which is referred to as "the IFRS Stable Platform 2005". The Group applies the IFRS Stable Platform 2005 from January 1, 2005.

2.1. Changes in Accounting Policies

The accounting policies based on which the Financial Statements were drafted are in accordance with those used in the preparation of the Annual Financial Statements for the FY 2014, adjusted to the new Standards and revisions imposed by IFRS effective for fiscal years starting as at January 1st, 2015.

2.1.1 New Standards, Interpretations, Revisions and Amendments to existing Standards that are effective and have been adopted by the European Union

The following amendments and interpretations of the IFRS have been issued by the International Accounting Standards Board (IASB), adopted by the European Union, and their application is mandatory from or after 01/01/2015.

Annual Improvements cycle 2011-2013 (effective for annual periods starting on or after 01/01/2015)

In December 2013, the IASB issued Annual Improvements to IFRSs 2011-2013 Cycle, a collection of amendments to IFRSs, in response to four issues addressed during the 2011-2013 cycle. The amendments are effective for annual periods beginning on or after 1 July 2014, although entities are permitted to apply them earlier. The issues included in this cycle are the following: IFRS 1: Meaning of effective IFRSs, IFRS 3: Scope exceptions for joint ventures; IFRS 13: Scope of paragraph 52 (portfolio exception); and IAS 40: Clarifying the interrelationship of IFRS 3 Business Combinations and IAS 40 Investment Property when classifying property as investment property or owner-occupied property. The above amendments do not affect the consolidated and corporate Financial Statements.

Defined Benefit Plans: Employee Contributions (Amendments to IAS 19) (effective for annual periods starting on or after 01/02/2015)

In November 2013, the IASB published narrow scope amendments to IAS 19 "Employee Benefits" entitled Defined Benefit Plans: Employee Contributions (Amendments to IAS 19). The narrow scope amendments apply to contributions from employees or third parties to defined benefit plans. The objective of the amendments is to simplify the accounting for contributions that are independent of the number of years of employee service, for example, employee contributions that are calculated according to a fixed percentage of salary. The above amendments do not affect the consolidated and corporate Financial Statements.

Annual Improvements cycle 2010-2012 (effective for annual periods starting on or after 01/02/2015)

In December 2013, the IASB issued Annual Improvements to IFRSs 2010-2012 Cycle, a collection of amendments to IFRSs, in response to eight issues addressed during the 2010-2012 cycle. The amendments are effective for annual periods beginning on or after 1 July 2014, although entities are permitted to apply them earlier. The issues included in this cycle are the following: IFRS 2: Definition of 'vesting condition', IFRS 3: Accounting for contingent consideration in a business combination, IFRS 8: Aggregation of operating segments, IFRS 8: Reconciliation of the total of the reportable segments' assets to the entity's assets, IFRS 13: Short-term receivables and payables, IAS 7: Interest paid that is capitalised, IAS 16/IAS 38: Revaluation method—proportionate restatement of accumulated depreciation and IAS 24: Key management personnel. The above amendments do not affect the consolidated and corporate Financial Statements.

Amendment to IAS 27: "Equity Method in Separate Financial Statements» (effective for annual periods starting on or after 01/01/2016)

In August 2014, the IASB published narrow scope amendments to IAS 27 "Equity Method in Separate Financial Statements ". Under the amendments, entities are permitted to use the equity method to account for investments in subsidiaries, joint ventures and associates in their separate Financial Statements – an option that was not effective prior to the issuance of the current amendments. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any.

Annual Improvements cycle 2012-2014 (effective for annual periods starting on or after 01/01/2016)

In September 2014, the IASB issued Annual Improvements to IFRSs 2012-2012 Cycle, a collection of amendments to IFRSs, in response to four issues addressed during the 2012-2014 cycle. The amendments are effective for annual periods beginning on or after 1 January 2016, although entities are permitted to apply them earlier. The issues included in this cycle are the following: IFRS 4: Changes in methods of disposal,

IFRS 7: Servicing Contracts and Applicability of the amendments to IFRS 7 to Condensed Interim Financial Statements, IAS 19: Discount rate: regional market, and IAS 34: Disclosure of information "elsewhere in the interim financial report". The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any.

Amendments to IAS 16 and IAS 41: "Agriculture: Bearer Plants" (effective for annual periods starting on or after 01/01/2016)

In June 2014, the IASB published amendments that change the financial reporting for bearer plants. The IASB decided that bearer plants should be accounted for in the same way as property, plant and equipment in IAS 16. Consequently, the amendments include bearer plants within the scope of IAS 16, instead of IAS 41. The produce growing on bearer plants will remain within the scope of IAS 41. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any.

Amendments to IFRS 11: Accounting for Acquisitions of Interests in Joint Operations (effective for annual periods starting on or after 01/01/2016)

In May 2014, the IASB issued amendments to IFRS 11. The amendments add new guidance on how to account for the acquisition of an interest in a joint operation that constitutes a business and specify the appropriate accounting treatment for such acquisitions. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any.

Amendments to IAS 1: "Disclosures Initiative" (effective for annual periods starting on or after 01/01/2016)

In December 2014, the IASB issued amendments to IAS 1. The aforementioned amendments address settling the issues pertaining to the effective presentation and disclosure requirements as well as the potential of entities to exercise judgment under the preparation of financial statements. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

Amendments to IAS 16 and IAS 38: Clarification of Acceptable Methods of Depreciation and Amortisation (effective for annual periods starting on or after 01/01/2016)

In May 2014, the IASB published amendments to IAS 16 and IAS 38. IAS 16 and IAS 38 both establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset. The IASB has clarified that the use of revenue-based methods to calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any.

2.1.2 New Standards and Interpretations that have not been applied yet or have not been adopted by the European Union

The following new Standards and Revisions of Standards as well as the following Interpretations of the existing Standards have been issued but are either non-effective yet or have not been adopted by the European Union. In particular:

IFRS 14 "Regulatory Deferral Accounts" (effective for annual periods starting on or after 01/01/2016)

In January 2014, the IASB issued a new standard, IFRS 14. The aim of this interim Standard is to enhance the comparability of financial reporting by entities that are engaged in rate-regulated activities. Many countries have industry sectors that are subject to rate regulation, whereby governments regulate the supply and pricing of particular types of activity by private entities. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any.

Amendments to IFRS 10 and IAS 28: "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture" (effective for annual periods starting on or after 01/01/2016)

In September 2014, the IASB published narrow scope amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture". The amendments will be applied by entities prospectively in respect of sales or contribution of assets performed in the annual periods

starting on or after 01/01/2016. Earlier application is permitted, given that this fact is relatively disclosed in the financial Statements. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

Amendments to IFRS 10, IFRS 12 and IAS 28: "Investment Entities: Applying the Consolidated Exception effective for annual periods starting on or after 01/01/2016)

In December 2014, the IASB published narrow scope amendments to IFRS 10, IFRS 11 and IAS 28. The aforementioned amendments introduce explanation regarding accounting requirements for investment entities, while providing exemptions in particular cases, which decrease the costs related to the implementation of the Standards. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

Amendment to IAS 12 Income Taxes: "Recognition of Deferred Tax Assets for Unrealised Losses" (effective for annual periods starting on or after 01/01/2017)

In January 2016, the IASB published narrow scope amendments to IAS 12. The objective of this amendment is to clarify the accounting for deferred tax assets for unrealised losses on debt instruments measured at fair value. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

IFRS 15 "Revenue from Contracts with Customers" (effective for annual periods starting on or after 01/01/2017)

In May 2014, the IASB issued a new standard, IFRS 15. The Standard fully converges with the requirements for the recognition of revenue in both IFRS and US GAAP. The new standard will supersede IAS 11 "Construction Contracts", IAS 18 "Revenue" and several revenue related interpretations. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

IFRS 9 "Financial Instruments" (effective for annual periods starting on or after 01/01/2018)

In July 2014, the IAB issued the final version of IFRS 9. This version brings together the classification and measurement, impairment and hedge accounting models and presents a new expected loss impairment model and limited amendments to classification and measurement for financial assets. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

IFRS 16 "Leases" (effective for annual periods starting on or after 01/01/2019)

In January 2016, the IASB issued a new standard, IFRS 16. The objective of the project was to develop a new Leases Standard that sets out the principles that both parties to a contract, ie the customer ('lessee') and the supplier ('lessor'), apply to provide relevant information about leases in a manner that faithfully represents those transactions. To meet this objective, a lessee is required to recognise assets and liabilities arising from a lease. The Group will examine the impact of the above on its Financial Statements, though it is not expected to have any. The above have not been adopted by the European Union.

2.2. Significant accounting judgments, estimates and assumptions

The preparation of financial statements in accordance with International Financial Reporting Standards (IFRS) requires management to make judgments, estimates and assumptions that affect the reported assets and liabilities at the balance sheet date. They also affect the disclosures of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses for the period. actual results may differ from these estimates. Estimates and judgments are based on historical experience and other factors, including expectations of future events that are considered reasonable under specific circumstances and are constantly re-assessed using all available information.

Judgments

The key judgments made by the management of the Group (other than judgments associated with estimates presented below) and that have the most significant effect on the amounts recognized in the financial statements mainly relate to:

Classification of investments.
Recoverability of receivables.
Impairment of inventory.

Assumptions and estimates

Specific amounts included or affecting the financial statements along with relevant acknowledgments are estimated assuming values or conditions which cannot be known with certainty at the time the financial statements are issued. An accounting estimate is considered significant when it is important for the image the financial position of the company and fiscal year results and requires management's most difficult, subjective or complex judgments, often as a result of the need to make estimates regarding the effect of matters that are uncertain. The Group evaluates these estimations in constant basis, based on past years and experience, by meeting experts, trends and other methods considered rational under the specific circumstances along with provisions of future changes. In § 3 "Synopsis of accounting policy" the accounting policies are mentioned which have been chosen from acceptable alternative policies.

Impairment estimation

The Group tests annually the existing goodwill for impairment and examines events or conditions that make impairment possible; such as, for example, a significant negative change in the business climate or a decision for the sale or disposal of a unit or an operating segment. The determination of impairment requires the valuation of the corresponding unit, which is evaluated by using the method of discounted cash flows.

The recoverable amounts of units creating cash flows are determined based on calculations of current use value. These calculations require the use of estimates.

If this analysis indicates a need for impairment, the measurement of the impairment requires a fair value estimate for each identified tangible asset. In that case the approach of cash flows is used, as mentioned above, by independent valuators as appropriate.

Moreover, other identified intangible assets with defined useful lives are tested annually for impairment and are subject to amortization by comparing the carrying amount to the sum of the undiscounted cash flows expected to be generated by the asset. The Group annually tests the impairment of goodwill according to accounting policy as mentioned below. It is to be noted that the total of recognised goodwill was fully impaired within the previous year.

Income Tax

LAMPSA is subject to income taxation by various tax authorities. For determining the provision for income taxes, significant estimates are required. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The company recognizes liabilities for anticipated tax audit issues based on estimates for the amount of additional taxes that may be due. If the final tax outcome of these cases differs from the amount initially recognized in the financial statements, these differences will affect the income tax and deferred tax provisions in the period in which the amounts are finalized.

Provisions

Doubtful accounts are reported at the amounts that may be recovered. Estimates of the amounts expected to be recovered result of analysis as well as from the experience of the Group regarding the possibility of doubtful customer. As soon as it is realized that a specific account is subjected to greater risk than the usual credit risk (e.g. low credibility, argument on demand's existence or amount, etc.), the account is analyzed and recorded as doubtful debt as long as demand remain uncollected.

Contingent events

During ordinary course of business, the Group is involved in legal claims and compensations. The Management judges that any arrangement would not affect significantly the financial position of the Group in 31/12/2015. However, the determination of contingent liabilities that are connected to legal claims and demands is a complicated procedure that includes judgments on possible consequences and law interpretation according laws and regulations. Any change in judgment or interpretation is possible to lead to an increase or decrease of the contingent liabilities in the future.

Business combinations

Upon initial recognition, the assets as well as liabilities of the acquired business are included in the consolidated financial statements at their fair values. During measurement of fair values, management uses estimates regarding future cash flows but actual results may differ. Any other change in measurement upon initial recognition would affect the goodwill measurement.

Useful life of depreciable assets

The Management examines the useful lives of depreciable assets at every reporting period. At 31 December 2015, the management of the company estimates that the useful lives of the depreciated assets, represent the expected utility of these assets. Actual results, however, may differ due to technical gradual depreciation, mainly regarding software and computer equipment.

3. Summary of accounting policies

3.1. General

The significant accounting policies that are used for the constitution of integrated financial statements are synopsized as per below.

It is worth noting, as already mentioned above at "2.2 Significant accounting judgments, estimates and assumptions" that accounting estimations and assumptions are used in the preparation of the financial statements. Despite the fact that these estimations are based on Management's better knowledge on current facts and activities, actual results may differ from the ones estimated.

Amounts in financial statements appear in thousand euros. Any differences in totals are due to rounding.

3.2. Consolidation and investments in associates

Subsidiaries

Subsidiaries are all entities managed and controlled by the Group in regard to their finance and business policies. LAMPSA considers that owns and controls a subsidiary when participates with a percentage greater than the half of voting rights

To determine the existence of potential voting rights of LAMPSA, that are currently exercisable on another entity, LAMPSA examines the existence and effect of any potential voting rights that are currently exercisable or convertible.

The consolidated financial statements of LAMPSA SA include the financial statements of the parent company as well as economic entities controlled by the Group through full consolidation.

Subsidiaries are consolidated using the full consolidation method from the date on which the Group obtains control and stop to be consolidated to the date on which control ceases.

In addition, the subsidiaries acquired are subject to the application of the market methods. This includes revaluation at fair value of all identifiable assets and liabilities, including contingent liabilities of the subsidiary, at the acquisition date, irrespective of whether they have been included in the financial statements of the subsidiary prior to acquisition. Upon initial recognition, subsidiary's assets and liabilities are included in the consolidated balance sheet at revalued amounts, which are also used as a basis for subsequent measurement in accordance with the accounting policies of the group. Goodwill represents the excess of cost over the fair value of the Group's share in the identifiable assets of the acquired subsidiary of the group during acquisition. If the cost of acquisition is less than the fair value of net assets of the subsidiary acquired, the difference is recognized directly in the result.

Non-controlling interests are recognized as part of profit or loss and net assets that do not belong to the Group. If losses of a subsidiary concerning non-controlling interests exceed non-controlling interests in subsidiary's liabilities, then the excess amount is allocated to the shareholders of the parent company except from the amount that the has an obligation and is able to cover those losses.

The accounting policies of subsidiaries are modified where necessary, in order to be consistent with the policies adopted by the Group

Intercompany account receivables and liabilities, revenues and expenses and unrealized gains or losses between companies are eliminated.

In company's balance sheet, the participation in subsidiaries is evaluated in acquisition cost, unless there are indications of impairment. In this case depreciation appears in income statement as "Income from related companies''.

3.3. Foreign currency translation

The consolidated financial statements of LAMPSA S.A. are presented in EURO (€), which is, also, the functional currency of the Holding Company.

Each financial entity of the group defines the functional currency and the elements included in the financial statements, of each entity. In the individual financial statements of the consolidated entities, the transaction in foreign currency is converted to the functional currency of each entity, using the exchange rates, prevailing on the date of the transaction. Transactions in foreign currency are converted into euros using the exchange rates prevailing on the transaction dates.

Exchange gains and losses arising from such transactions and from the conversion of accounts with balances at year end exchange rates are recognized in the "Financial Income / (expenses)", respectively except from the gain or damage incurred by the hedging instrument and directly recognized at the equity account, through the statement of changes in equity.

Changes in the fair value of monetary securities denominated in foreign currency classified as available for sale are distinguished from changes in foreign exchange differences arising from changes in amortized cost of the security and other changes in the carrying value of the securities. Differences from conversion-related changes in the amortized cost are recognized in profit or loss, and other changes in carrying amount are recognized in equity.

Differences arising from converting non- monetary financial assets and liabilities are reported as part of profit or loss in fair value. Differences arising from converting non- monetary assets and liabilities as assets at fair value through profit or loss are recognized in profit or loss as part of the profits or losses from fair value. Differences arising from converting non- monetary financial assets such assets classified as available for sale are included in the reserve of the equity on available-for- sale financial assets.

In the consolidated financial statements, all individual financial statements of subsidiaries and jointly controlled entities, which originally presented in a currency other than the functional currency of the Group (none of which has the currency of a hyperinflationary economy), have been converted into Euro.

Assets and liabilities have been converted into euros at the closing rate at the balance sheet date.

Revenue and expenses have been converted into the Group's presentation currency at the average exchange rates during the reporting period; unless there are significant fluctuations in which case income and expenses are translated at the exchange rate at the transaction dates.

Any differences arising from this procedure have been transferred to the translation reserve in the balance sheet equity.

Goodwill and fair value adjustments arising from an acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated into euros at the closing rate

On consolidation, exchange rate differences arising from the conversion of the net investment in foreign operations, and of borrowings and other currency instruments that are designated hedges of a net investment in a foreign operation directly in equity through the statement of equity changes.

When a foreign operation is partially disposed or sold, exchange differences that were recorded in equity are recognized in profit or loss in the period of disposal or sale as part of the gain or loss on sale.

3.4. Segment reporting

The Group firstly adopted IFRS 8 "Operating segments" in year 2009.

The adoption of the new standard has not affected the way in which the Group identifies its operating segments for the purpose of providing information and the Group now presents the results of each segment based on the data that is used by the Management for internal reporting.

A business segment is a group of assets and operations engaged in providing products and services which are subject to risks and returns different from those of other business segments. A geographical segment is a geographical region in which products are sold and services provided are subject to risks and returns different

from other areas. Geographically, the Group operates mainly in Greece, Cyprus and Serbia, while having interests in other countries (see § 4 «Group Structure").

The going concern Business segments shown are renting rooms, food and beverage sales and other activities (Income SPA-Health Club, Telephone Revenue, etc.).

If total external revenue, which are presented by operating segments constitutes less than 75% of the group's earnings, then other sectors identified as reportable segments until at least 75% of the group's earnings is included in the reportable operating sectors.

Operating segments that do not meet any of the quantitative thresholds set by IFRS 8 are not considered reportable segments and are not separately disclosed if the management believes that information about the separate area is not useful to users of financial statements.

The accounting principles used by the Group for the purposes of Reporting by segment under IFRS 8 are the same as those used in the preparation of the financial statements

There have been no changes compared to the previous year valuation methods used to determine gain or damage of the sector. There have been no asymmetrical allocations to the reportable segments. Asymmetric division is for example if a company allocates the depreciation expense to a geographical sector without sharing the depreciable assets.

3.5. Recognition of income and expenditure

Revenues are recognized when it is probable that future economic benefits will flow into the entity and these benefits can be measured reliably.

The revenue is measured at the fair value of the consideration received and it is net of value added tax, returns, rebates and any kind of reduction after limiting the sales within the Group.

The amount of revenue is considered that can be reliably measured when all contingencies relating to the sale have been resolved.

Sale of goods

Revenue from sale of goods is recognized when the significant risks and rewards of ownership of the goods have been passed to the buyer, usually on dispatch of those goods.

Provision of services

Revenue from fixed price contracts is recognized based on the stage of completion of the transaction at the balance sheet date. Under the percentage of completion method, revenue is generally recognized based on service activity and performance to date as a percentage of total services to be performed.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognized only to the extent that the following costs are recoverable.

The amount of the selling price associated with an agreement for services to be provided subsequently recorded into deferred amount and is recognized as income over the period in which services are provided. This income (deferred income) is included in the item "other liabilities".

In cases that original revenue estimates are changed, costs or the completion stage is revised. These revisions may result in increases or decreases in estimated revenue or costs and are shown in the Statement of Comprehensive Income of the period. Such cases, should they be revised, are disclosed by the Management.

Income from interests

Income from interest is recognized using the effective interest method that is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or liability.

When a receivable is impaired, the Group reduces the carrying value of the amount expected to be recovered, which the amount is resulting from the estimated future cash flows discounted at the effective interest rate of the instrument and continues the periodic unwinding of the discount as interest income. Incomes from interest on loans that have been impaired are recognized using the original effective interest rate..

Income from royalties

Incomes from royalties are recognized according to the accrual inputs / outputs, depending on the substance of the relevant agreement.

Income from dividends

Revenues from dividends are recognized when finalized the Group's right to receive payment from the shareholders..

Operating expenses are recognized in the Statement of Comprehensive Income over the use of the service or the date of creation. Expenditure for warranties is recognized and charged against the related provision when the corresponding revenue is recognized.

IFRIC 13: Customer Loyalty Programmes

Customer loyalty programs give customers incentives to purchase products or services from a company. If a customer buys goods or services, then the company grants award credits « points" which the customer can redeem in the future for free or discounted products / services. These programs may be run by the company itself or by a third party. IFRC 13 can be applied to all the award credits loyalty programs a company can provide to its customers as part of a transaction. IFRC 13 applies to annual periods beginning on or after 1 July 2008. The retrospective application is required while earlier application is encouraged as long as it is disclosed in the notes to the financial statements. The implementation of the above program does not affect the Group's results.

3.6. Borrowing costs

Borrowings are recognized initially at fair value, which included bank charges and commissions.

The Company's management believes that the interest paid in connection with loans is equivalent to the current market interest rates and, therefore, there is no reason for any adjustments to the value at which these liabilities are presented.

Any difference between the proceeds ( net of transaction costs ) and the redemption value is recognized in the income statement over the term of the loan.

Borrowings are classified as current except when the Group has an unconditional right to defer settlement of the liability for at least twelve months after the balance sheet date. Borrowing costs are recognized as expenses in the period in which they are incurred.

The Group capitalizes all borrowing costs that can be directly attributable to acquisition, construction or production of an asset that meets that qualifying conditions.

3.7. Goodwill

Goodwill acquired in a business combination will be initially valued at historical cost, as the extra cost of the business combination exceeding the buyers participation in the net fair market value of identifiable assets, to the obligations and potential obligations. After the initial recognition, goodwill will be valued at historical cost less any accumulated impairment losses. The acquirer will test goodwill for impairment on an annual basis or more often if events or changing conditions indicate the possibility of impairment.

The impairment test procedure is described in § 3.10.3 "Impairment test of tangible and intangible assets".

3.8. Other intangible assets and research and development activities

An intangible asset is initially valued at historical cost. The cost of an intangible asset acquired in a business combination is part of the fair value of the asset on the acquisition date.

After the initial recognition, intangible assets are valued at historical cost less accumulated depreciation and any impairment loss.

Acquired licenses regarding software are capitalized based on the purchasing and installation expense.

Expenses related to the maintenance of the software are recorded in the expenses of the period they occurred.

The useful lives of intangible assets are either definite or indefinite depending on their nature.

Intangible assets with definite useful life are amortized over their useful life and depreciation commences when the asset is available for use and is recognized in the category of operating expenses.

The period and depreciation method are reviewed at least in each fiscal year. If the expected useful life or the expected consumption rate of the future economic benefits embodied in the asset are changed, the amortization period or method are changed respectively. Such changes are accounted for as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized but are tested at least annually for impairment and to determine whether management's assessment of the indefinite useful lives of these intangible assets is supported. If not supported , the change in the useful life assessment from indefinite to limited is treated as a change in an accounting estimate in accordance with IAS 8. Gains or losses arising from the sale of an intangible asset are determined as the difference between the sale amount and the carrying amount of the asset and is recognized in the income statement in the item " Other income " or "Other expenses".

3.8.1. Acquired software

Intangible assets include acquired software used in the production or management.

The costs capitalized are amortized on a straight-line basis over the estimated useful lives (three to five years). Additionally, the acquired software is also tested for impairment.

3.8.1. Research and development expenses

Expenses related to research activities are recorded as an expense during the period.

Costs incurred during the development phase of the new, customized to client needs, systems and telecommunications software are recorded as intangible assets if they meet the following conditions:

can demonstrate the technical feasibility of the developing product for internal use or sale
the intangible asset will generate probable future economic benefits from the internal use or sale
availability of sufficient technical, financial and other resources to complete the development, and
the value of the intangible asset can be reliably measured.

The directly attributable to development costs include the cost of benefits for employees to develop the software along with an amount of directly attributable costs. The cost of internally generated software development is recognized as an intangible asset. Until the completion of the development project , the assets are subject to impairment review . Depreciation begins with the completion of the asset during the period of expected future sales from the related project, on a straight line method . All other development expenditure is recognized as an expense during the period.

3.9. Property, plant and equipment

Buildings, technical equipment , furniture are shown at historical cost or at historical cost less any accumulated depreciation and any accumulated impairment losses. The cost also includes the cost of spare parts of some tangible assets that require replacement at regular intervals, if the criteria for acknowledgment are fulfilled. The artwork owned by the Group is not depreciated.

The costs of daily maintenance of property, plant and equipment are recognized in profit or loss when incurred.

If the carrying value of tangible assets has suffered depreciation or an impairment loss, it shall be recorded as described below.

The gain or loss on sale of the land will be determined as the difference between the net disposal proceeds, if any, and the carrying amount of the asset and is recorded in profit or loss statement

Depreciation is calculated using the straight line method over the entire useful life of the assets. For works of art held by the company, no depreciation is calculated.

The buildings that have been acquired through financial leases are depreciated throughout their estimated useful lives (determined in relation to comparable owned assets), if shorter.

The useful lives of tangible assets of the Group are summarized below:

Buildings & building facilities	4-33
Machinery & Equipment	2-20
Vehicles	5-8
Furniture	2-33
Office equipment /telephone devises	3-33
Printing / Hardware	4-5

The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate at each year end.

3.10. Leases

The assessment of whether an arrangement contains a lease, takes place at the beginning of the agreement, taking into account all available information and specific circumstances. After the beginning of the agreement, a reassessment takes place, as to whether it contains a Lease when any of the following occurs:

a. There is a change in the terms of the contract, unless the change only renews or extends the agreement

b. Renewal option is exercised or an extension is agreed unless term of the renewal or extension was initially included in the lease term

c. There is a change in whether the settlement depends on a defined asset

d. There is a significant change in the asset

If an agreement is reassessed the accounting treatment for leases applies from the date the change in conditions involving reassessment for (a), (c ) or (d ), and from the date of renewal or extension period for case (b).

3.10.1. The Group as a lessee

The ownership of a leased asset is transferred to the lessee if transferred to him all the risks and rewards associated with the leased asset regardless of the legal form of the contract. At the start of the lease asset is recognized at fair value or , if lower , the present value of the minimum lease payments, including additional payments, if any, borne by the lessee.A corresponding amount is recognized as a liability of the lease regardless of whether some of the lease payments were paid in advance at the beginning of the lease.

The subsequent accounting treatment for assets acquired through financial leasing contracts, e.g. the depreciation method used and the determination of useful life, is the same as that applied to comparable acquired, except leases, assets. The accounting treatment of the respective obligation relates to the gradual reduction of the basis of the minimum lease payments minus finance charges, which are recognized as an expense in finance costs. Financial charges are allocated over the lease period and represent a constant periodic rate of interest on the remaining balance of the liability.

All other leases are treated as operating leases. Payments on operating leases are recognized as an expense on a straight (use link revenue and expense). The related costs, such as maintenance and insurance, are recognized as an expense when incurred.

3.10.2. The Group as a lessor

Leases where the Group does not transfer substantially all the risks and rewards of the asset are classified as operating leases. Initial direct costs incurred by lessors in negotiating and arranging an operating lease are added to the book value of the leased asset and are recognized over the lease term as the lease income.

3.10.3. Impairment test of goodwill, tangible and intangible assets

The Group's goodwill, intangible and tangible assets are subject to impairment tests. For the purposes of assessing impairment, certain assets are grouped in the smallest identifiable group of assets that generates cash inflows from its use (CGUs). As a result, some assets are tested individually for impairment and some are tested as CGUs.

The arising goodwill is allocated to each cash generating unit (CGU) expected to benefit from the synergies of the business combination. The CGUs represent the lowest level within the Group at which the goodwill is monitored for management purposes.

Any losses in value of a CGU to which goodwill has been allocated, first reduce the carrying value of goodwill. Any remaining impairment loss is shared proportionally to the other assets of the CGU.

When the Group sells an activity included in a CGU to which goodwill has been allocated , the goodwill shall be taken into account when determining the gain or loss on sale and apportioned to the sold activity. In this light , the goodwill allocated is measured by the relative values of the activity sold and withheld part of CGU. Alternatively, when the Group can reliably assess and demonstrate that some other method better reflects the goodwill associated with the sold operation , then this method is followed.

The assets or CGU including part of goodwill, other intangible assets with indefinite useful lives and assets not yet available for use are tested for impairment at least on an annual basis. The remaining assets and CGU tested for impairment whenever there are indications that the carrying value may not be recoverable. The impairment loss is the amount by which the carrying value of assets or CGU exceeds its recoverable value. Recoverable amount of an asset or CGU is the higher of fair value and value in use (implied by evaluating discounted future cash flows of the asset of CGU).

With the exception of goodwill, all assets are subsequently reassessed for cases where the impairment loss initially recognized may not exist .

We note that on 31.12.2014 the Group fully impaired the goodwill of € 5.731 k. The derecognition of goodwill in the previous year concerned € 3.483 k of the subsidiary BEOGRADSKO MESOVITO PREDUZECE and € 2.248 k of the subsidiary EXCELSIOR BELGRADE SOCIATE OWNED.

3.11. Financial Assets

The financial assets of the Group include loans and receivables.

The impairment testing takes place at least at every reporting date of the financial statements or when there is material evidence that a financial asset or group of financial assets have suffered impairment or not.

3.11.1. Loans and Receivables

Loans and receivables are non -derivative financial assets with fixed determinants and payments that are not quoted in an active market. They arise when the Group provides money , goods or services directly to a debtor with no commercial intent. Loans and receivables are measured at amortized cost using the effective interest method, less any provision for impairment . Any change in the value of loans and receivables is recognized in profit or loss when the loans and receivables are written off or reduce their value or during the period of depreciation.

Certain receivables are tested for impairment per individual requirement (for example for each customer) where the collection of the receivable is classified overdue at the date of the financial statements or in cases where objective evidence indicates the need for impairment . Other receivables are grouped and tested for impairment in their entirety. These groups have in common the characteristic geographical distribution, activity sector of contractors and, if applicable, other similar credit risk characteristics that characterize them.

Loans and receivables and the loans are included in current assets, except those maturing after 12 months from the balance sheet date. These are characterized as non-current assets. At the balance sheet, they are classified as trade and other receivables and comprise the biggest part of the financial assets of the Group.

3.12. Inventories

Inventories include raw materials, materials and goods purchased. .

Cost includes all costs incurred in bringing the inventories to their present location and condition, which are directly attributable to the production process, as well as a part of general expenses associated with the production , which is absorbed in the normal capacity of the production facilities.

The financial cost is not taken into account .

At the balance sheet date, inventories are valued at the lowest level between cost of acquisition and net realizable value.

Net realizable value is the estimated selling price in the ordinary course of business activities, minus estimated cost which is necessary to make the sale.

Cost is determined using the method of weighted average cost.

3.13. Accounting for Income Tax

3.13.1. Current Income Tax

The current tax asset / liability includes obligations or receivables by the tax authorities relating to the current or previous reporting periods have not been paid until the balance sheet date.

Calculated according to the tax rates and tax laws applicable to the fiscal period to which they relate, based on the taxable profit for the year. All changes to the current tax assets or liabilities are recognized as tax expense in the income statements.

3.13.2. Deferred Income Tax

Deferred income tax is calculated on the liability method focuses on temporary differences. This involves comparing the accounting value of assets and liabilities of the consolidated financial statements with their respective tax bases.

Deferred tax assets are recognized to the extent that it is likely to be offset against future income taxes.

Deferred tax liabilities are recognized for all taxable temporary differences. In addition and in accordance with IAS 12, deferred tax is not recognized in relation to goodwill.

No deferred tax is recognized on temporary differences associated with investments in subsidiaries if reversal of these temporary differences can be controlled by the company while it is expected that the temporary difference will not reverse in the future. In addition, tax losses can be carried to subsequent periods and tax credits to the Group are recognized as deferred tax assets.

No deferred tax is recognized under initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which they will settle the asset or liability, based on tax rates that have been enacted or substantively enacted by the balance sheet date.

Most changes in deferred tax assets or liabilities are recognized as tax expense in the results. Only changes in deferred tax assets or liabilities related to changes in the value of the asset or liability that is charged directly to equity are charged or credited directly to equity.

The Group recognizes a previously unrecognized deferred tax asset to the extent that it is probable that future taxable profit will allow the recovery of the deferred tax asset.

Deferred tax assets are reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of the deferred tax asset.

3.14. Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank and cash available and short term highly liquid investments such as money market securities and bank deposits with original maturities of three months or less. The market values of financial assets are stated at fair value through profit or loss.

For the purpose of the Consolidated Cash Flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, excluding the outstanding balances of overdrafts (bank overdrafts).

3.15. Equity

Share capital is determined using the nominal value of the shares issued. Ordinary shares are classified as equity.

The share capital increase through cash payment includes any share premium account in the original version of the share capital. Any transaction costs associated with the issuance of the shares and any related income tax benefit resulting deducted from the share capital increase.

If the economic entity acquired their own equity instruments, those instruments (the "shares") are deducted from equity. If such shares are subsequently reissued, the consideration received (net of related transaction costs and the related income tax benefit) included in equity attributable to shareholders. According to the purchase, sale, issue or cancellation of own equity instruments of the entity do not recognize any profit or loss.

The revaluation reserve comprises gains and losses due to the revaluation of certain financial assets and tangible assets. Exchange differences from the exchange are included in the conversion reserve. Retained earnings include the current results and those of previous periods as disclosed in the results.

3.16. Retirement benefits and short-term employee benefits

3.16.1. Retirement benefits

A defined benefit plan is a pension plan that does not fall under a defined contribution plan. Typically, defined contribution plans define an amount of benefit that an employee will receive on retirement, usually dependent on factors such as age, years of service and compensation.

The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date of analogue unrecognized gains or losses and past service costs. The defined benefit obligation is calculated annually by independent actuaries using the Projected Credit Unit Method. The present value of the defined benefit obligation is determined by discounting the expected future cash outflows using interest rates of high-yield corporate bonds, which are shown in the currency in which the benefits will be paid and have terms to maturity depending on the terms of the related pension liability.

Actuarial gains and losses arising from experience adjustments and changes in proportionate matters at the end of the previous reporting period exceeded the greater of 10% of the fair value of plan assets or 10% of the defined benefit obligation are charged or credited to results based on the expected average remaining working lives of the employees participating in this program

Past service costs are recognized immediately in income, unless the changes to the pension plans are voluntary for the employees remaining in service for a specified period (vesting date). In this case, the past service costs are amortized on a consistent basis over the vesting period.

A defined contribution plan is a pension plan under which the Group pays fixed contributions into an independent administrative institution in mandatory, contractual or voluntary basis. The company will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits, for services rendered current or prior years. Prepaid contributions are recognized as an asset to the extent possible a refund or a reduction in future payments.

3.16.2. Termination Benefits

Termination benefits are payable when service employment is terminated by the Group before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits.

The Group recognizes termination benefits when it is demonstrably committed to either terminate the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. When the

benefits of retirement are due for more than 12 months, after the balance sheet date they are discounted to present value.

3.17. Financial Liabilities

The Group's financial liabilities include bank loans and overdraft accounts (overdraft), trade and other liabilities and finance leases. The Group's financial liabilities (excluding loans) are shown in the balance sheet in the item "Non-current financial liabilities" and in the "Other trading liabilities".

Financial liabilities are recognized when the Group has entered into a contractual agreement of instrument and derecognized when the Group is exempted from or is canceled or expires.

The interests are recognized as an expense in "finance costs" in the income statement.

Liabilities from finance leases are measured at initial value less the amount of financial capital repayments.

Trade payables are recognized initially at their nominal value and subsequently measured at amortized cost less settlement payments.

Dividends to shareholders are included in "Other current financial liabilities' when the dividends are approved by the General Meeting of Shareholders.

Gains and losses are recognized in the income statement when the liabilities are written off, as well as through the amortization.

When an existing financial liability is exchanged with another liability of different form with the same lender but with substantially different terms, or the terms of an existing liability are substantially modified, for example an exchange or modification, it is treated as a write off of the original liability and the recognition of a new liability. Any difference in the respective numerical amounts is recognized in the income statement.

3.17.1. Loans

Bank loans provide long-term and / or short-term financing of the Group operations. All loans are initially recognized at cost, being the fair value of the consideration received excluding the cost of issuing the loan.

After initial recognition, borrowings are measured at amortized cost and any difference between the revenue and the payoff is recognized in the income statement over the period of lending using the effective interest rate method.

The amortized cost is calculated taking into account any issue costs and any discount or premium on settlement amount.

The bond represents the Group's liability for future coupon payments and repayment of principal payment. If the bond loan is convertible then the equity component of the loan represents the value of the right of the bondholders to convert into shares of common stock and is presented in equity (net of applicable tax).

3.18. Other Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized when a present obligation is likely to lead to an outflow of economic resources for the Group, in the case that this outflow can be reliably estimated. The timing or amount of the outflow may be uncertain.

A present obligation arises from the presence of a legal or constructive obligation resulting from past events, for example, product warranties, legal disputes or onerous contracts

Restructuring provisions are recognized only if a detailed formal plan has been developed and implemented, or management has at least announced the features of the program to those who are affected by it. Provisions are not recognized for future operating losses.

When some or all of the expenditure required to settle a provision, is expected to be reimbursed by another party, the reimbursement will be recognized when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation and the obligation is treated as a separate asset. The amount recognized for the reimbursement shall not exceed the amount of the provision.

The expense relating to a provision is presented in results, net of the amount recognized for the reimbursement.

A provision is used only for expenditures for which it originally formed a prediction. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.

Provisions are measured at the expected cost required to determine the present obligation, based on the most reliable evidence available at the balance sheet date, including the risks and uncertainties associated with the present obligation.

When the effect of the time value of money is material, the amount of the provision is the present value of the expenditures expected to be required to settle the obligation.

The pre-tax discount rate reflects current market assessments of the time value of money and the risks specific to the liability. The rate does not reflect risks for which future cash flow estimates have been adjusted.

When the method of discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognized as borrowing cost in the results. When a number of similar obligations exist, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow to an element included in the class of obligations may be small.

If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision will be reversed.

In such cases where the possible outflow of economic resources as a result of present obligations is considered improbable, or the amount of the provision cannot be estimated reliably, no liability is recognized in the consolidated balance sheet, unless considered in the context of the business combination.

These contingent liabilities are recognized as part of allocating the cost of acquiring the assets and liabilities in the business combination. Subsequently they are measured at the highest amount of a comparable provision as described above and at the amount initially recognized, less any depreciation.

Possible inflows of economic benefits for the Group that do not yet meet the criteria of an asset are considered contingent assets.

4. The Group Structure

The Group structure of LAMPSA S.A. on December 31, 2015 is presented below as follows:

	Func.		Participating	Consolidation
Εταιρεία		Currency Domicile	interest %	Method	Participation
LAMPSA HELLENIC HOTELS S.A	€	GREECE	Parent
LUELLA ENTERPRISES LTD	€	CYPRUS	100,00%	Full	Direct
BEOGRADSKO MESOVITO PREDUZECE	€	SERBIA	93,90%	Full	Indirect
EXCELSIOR BELGRADE SOCIATE OWNED	€	SERBIA	80,33%	Full	Direct
TOURISTIKA THERETRA S.A	€	GREECE	50,00%	Equity Proportionate	Direct
MARKELIA ENTERPRISES COMPANY LTD	€	CYPRUS	100,00%	Full	Indirect

Amounts in thousand Euro, unless otherwise mentioned

5. Notes to financial statements

5.1. Segment Reporting

In accordance with the provisions of IFRS 8, the identification of operating segments is based on the "management approach". According to this approach, the information to be disclosed regarding the operating segments should be based on internal organizational and management structure of the Group and the main items of internal financial reporting provided to the key decision makers. The Management monitors the operating results of its operating segments separately for the purpose of making decisions on resource allocation and performance assessment thereof. . It is to be noted that the Group applies the same accounting principles for the measurement of operating segment's results as those in the Financial Statements. The Group financing comprises "Financial Expenses" and "Financial income" and income taxes are monitored at the consolidated level without being allocated to result generating operating segments.

Transactions between operating segments are performed within the regular business operations of the Group. Inter-segment sales are eliminated on consolidation.

The operating segments presented include renting rooms, food and beverage sales and other activities (Income SPA-Health Club, Telephone Revenue, etc.). The Group results, assets and liabilities per segment in respect of the presented periods are analyzed as follows:

		SALE OF FOOD
Segment results as at 31/12/2015	RENTING ROOMS	AND BEVERAGE	OTHER ACTIVITIES	NON-ALLOCATED	TOTAL
Sales
- to external clients	33.307	15.229	2.986		51.522
- to other segments					-
Net sales of the segment	33.307	15.229	2.986	-	51.522

Financial Income	31	15	3		49
Financial Expenses	(833)	(410)	(79)		(1.322)
Depreciation	(3.612)	(1.112)	(211)		(4.935)
Earnings before tax	2.447	1.204	233	(2.336)	1.548
Income tax	(122)	(60)	(12)	(100)	(294)
Earnings after tax	2.324	1.144	221	(2.435)	1.254

31/12/2015
Non-current assets	72.741	35.793	6.928		115.463
Other Non-current Assets (Deferred Tax
Assets))				8.518	8.518
Other assets	6.167	3.035	587	-	9.789
Total Assets	78.909	38.828	7.515	8.518	133.770
Total Liabilities	31.825	15.660	3.031		50.516

	RENTING	SALE OF FOOD AND	OTHER
Segment results as at 31/12/2014	ROOMS	BEVERAGE	ACTIVITIES	NON-ALLOCATED	TOTAL
Sales
- to external clients	30.676	15.095	2.922		48.693
- to other segments				-	-
Net sales of the segment	30.676	15.095	2.922	-	48.693

Financial Income	33	16	3		53
Financial Expenses	(1.046)	(515)	(100)		(1.660)
Depreciation	(3.404)	(1.048)	(198)		(4.650)
Earnings before tax	1.946	1.053	191	(10.060)	(6.870)
Income tax	(87)	(47)	(9)	2.087	1.945
Earnings after tax	1.858	1.005	183	(7.972)	(4.925)

31/12/2014
Non-current assets	75.378	37.091	7.179		119.647
Other Non-current Assets (Deferred Tax
Assets)				9.393	9.393
Other assets	4.561	2.244	434	-	7.240
Total Assets	79.939	39.335	7.613	9.393	136.280
Total Liabilities	34.620	17.035	3.297		54.952

Geographical segments

The headquarters of the Group are in Greece. Geographically, the Group operates mainly in Greece, Cyprus, Serbia, and has investments in other countries (see § 4 "Group Structure").

	1/1-31/12/2015	31/12/2015	1/1-31/12/2014	31/12/2014
		NON-CURRENT
Amounts in thousands €	SALES	ASSETS	SALES	NON-CURRENT ASSETS
GREECE	41.443	72.590	38.651	72.756
CYPRUS	-	-	-	-
SERBIA	10.080	42.873	10.042	46.891
Total	51.522	115.463	48.693	119.647

5.2. Analysis of tangible fixed assets

Land, buildings and equipment valued at the date of transition to IFRS (1/1/2004) at acquisition cost less any accumulated amortization and any impairment losses.

The Group and the Parent Company property items are burdened with liens amounting to € 48,850 as well as \$ 25,500 for outstanding loans amounting to € 36.509 k and € 35.049 k respectively.

The Group

		Mechanical		Furniture and	Fixed assets
	Land plots	equipment and		other	under
Amounts in thousands €	and buildings	vehicles		equipment	construction		Total
Net Book Value as at
31/12/2013	119.190	824		4.297	713		125.025

Additions	593	117		1.263	810		2.783
Disposal of assets	-	(489)		(846)	-		(1.335)
Reclassifications	850	18		378	(1.399)		(153)
Impairment loss recognised
in the income statement	(4.148)	-		-	-		(4.148)
Depreciation costs	(3.435)	(250)		(890)	-		(4.575)
Reclassifications	2	72		62			136
Depreciation of disposed
assets	-	469		782	-		1.251
Total	113.059	758		5.043	124		118.984

Net Book Value as at
31/12/2014	113.059	758		5.043	124		118.984

Additions	147	81		918	1.572		2.718
Disposal of assets	-	-		-	-		-
Reclassifications	1.080	76		370	(1.526)		-
Impairment loss recognised in
the income statement	(2.035)	-		-	-		(2.035)
Depreciation costs	(3.640)	(240)		(974)	-		(4.855)

Net Book Value as at
31/12/2015	108.612	674		5.357	170		114.812
		Mechanical		Furniture and	Fixed assets
Amounts in thousands €	Land plots and buildings	equipment and vehicles		other equipment	under construction		Total
Gross Book Value and
impairment	164.557	9.115		22.302		124	196.099
Accumulated depreciation	(51.498)	(8.357)		(17.259)		(0)	(77.115)
Net Book Value as at
31/12/2014	113.059		758	5.043		124	118.984
Gross Book Value and
impairment	163.750	9.272		23.589		170	196.781
Accumulated depreciation	(55.138)	(8.597)		(18.233)		(0)	(81.969)
Net Book Value as at
31/12/2015	108.612		674	5.357		169	114.812

The Company

Amounts in	Land plots	Mechanical equipment and	Furniture and	Fixed assets under construction
thousands €	and buildings	vehicles	other equipment		Total

Net Book Value as at
01/01/2013	71.616	122	2.103	0	73.841

Additions	422	81	538	110	1.152
Disposal of assets		(72)			(72)
Reclassifications	2	72	(64)		10
Depreciation costs	(2.137)	(45)	(327)		(2.509)
Depreciation of
disposed assets	-		62	-	62
Net Book Value as at
31/12/2014	69.903	158	2.313	110	72.484

Additions	147	71	915	1.315	2.450
Reclassifications	1.051	21	195	(1.267)	-
Depreciation costs	(2.091)	(46)	(391)	-	(2.528)
Net Book Value as at
31/12/2015	69.010	205	3.032	158	72.406

Amounts in thousands €	Land plots and buildings	Mechanical equipment and vehicles	Furniture and other equipment	Fixed assets under construction	Total
Gross Book Value	98.819	5.089	11.353	110	115.372
Accumulated depreciation and
impairment	-28.917	-4.931	-9.040	0	-42.888
Net Book Value as at 31/12/2014	69.902	158	2.313	110	72.484
Gross Book Value	100.018	5.182	12.462	158	117.821
Accumulated depreciation and
impairment	-31.008	-4.977	-9.429	0	-45.416
Net Book Value as at 31/12/2015	69.009	205	3.032	158	72.406

During the fiscal year for the Company and the Group, net investments in tangible and intangible assets amounted to € 2.774 k and € 2.464 k (2014: € 2.849 k and € 1.201 k respectively).

As at 31.12.2015, tangible fixed assets were tested for impairment and the arising loss of € 2.035 k that come from the subsidiary company BMP and has burdened the Statement of Comprehensive Income, being recorded in the account "Earnings (losses) from impairment of assets". At the respective check that was conducted at 31.12.2014 there was an arising loss of € 4.148 k ( €2.575 k BMP and €1.573 Excelsior k). The Group's management believes that these impairments do not reflect the market value of real estate estate and arise from temporarily adjustments imposed by the IFRS. The lack of comparables in Serbia did not allow to form commercial values, while opening of new international hotel units in Belgrade reflects growth expectations that are not consistent with these impairments The Management estimates that identifying of such comparables in view of Serbia's joining the European Union will allow to reverse the performed impairments. Already, the rate of return of B.M.P company, after the stabilization of 2014, increases in 2015 and keeps rising in 2016.

As at 31 December 2015 and 31 December 2014 the Group and the Company had no commitments for capital expenditures.

5.3. Analysis of intangible assets

The intangible assets of the Group are as follows:

	Software licenses	Other intangible
Amounts in thousands €		assets	Total
Net Book Value as at 31/12/2013	110	193	303
Additions	66	-	66
Sales	(140)	(56)	(196)
Reclassifications	9	-	9
Amortization	(39)	(36)	(75)
Sales amortization	140	56	196

Net Book Value as at 31/12/2014	146	157	304
Net Book Value as at 01/12/2014	146	157	304
Additions	51	5	56
Amortizations	(49)	(31)	(80)

Net Book Value as at 31/12/2015	149	131	280

Acquisition value and accumulated amortization are as follows:

	Software licenses	Other intangible
Amounts in thousands €		assets	Total
Gross book value	721	431	1.152
Accumulated amortization and impairment	(575)	(274)	(849)
Net Book Value as at 31/12/2014	146	157	304

Gross book value	772	436	1.208
Accumulated amortization and impairment	(623)	(305)	(929)
Net Book Value as at 31/12/2015	149	131	280

Changes in intangible assets of the Company are analytically presented below as follows:

Amounts in thousands €	Software licenses	Total

Net Book Value as at 1/1/2014	68	68
Additions	50	50
Amortization	(25)	(25)
Net Book Value as at 31/12/2014	93	93
Additions	15	15
Amortization	(30)	(30)

Net Book Value as at 31/12/2015	78	78

Acquisition value and accumulated amortization are as follows:

Amounts in thousands €	Software licenses	Total

Gross book value	477	477
Accumulated amortization and impairment	(384)	(384)
Net Book Value as at 31/12/2014	93	93

Gross book value	491	491
Accumulated amortization and impairment	(414)	(414)
Net Book Value as at 31/12/2015	78	78

Intangible assets are free of liens.

5.4. Goodwill

During the impairment test of recognized goodwill that was conducted at 31/12/2014 there was an arising impairment loss at € 5.731 millions burdening the consolidated Statement of Comprehensive Income of 2014 fiscal year. Derecognition of goodwill within the previous period, pertains by € 3.483 k to the subsidiary company BEOGRADSKO MESOVITO PREDUZECE and by € 2.248 k to the subsidiary company EXCELSIOR BELGRADE SOCIATE OWNED.

5.5. Analysis of investments in subsidiaries and associates

The following is an analysis of equity of the parent Company in subsidiaries and associates:

Amounts in thousands €	ACQUISITI ON VALUE as at 31/12/2015	ACQUISITI ON VALUE as at 31/12/2014	DOMICI LE – COUNT RY	Func. Curren cy	DIRECT PARTICIPATI NG INTEREST %	INDIRECT PARTICIPATI NG INTEREST %	RELATIONS HIP	CONSOLIDATI ON METHOD	OPERATI NG SEGMENT
LAMPSA HELLENIC HOTELS S.A	-	-	Greece	€	PARENT		PARENT	-	Hotel services
LUELLA ENTERPRIS ES LTD	18.732	18.730	Greece	€	100,00%		SUBSIDIARY	FULL CONSOLIDATI ON	Holding
EXCELSIOR BELGRADE SOCIALLY OWNED HOTEL & CATERING TOURIST ENTERPRIS ES	7.434	7.435	Serbia	€	80,33%		SUBSIDIARY	FULL CONSOLIDATI ON	Hotel services
BEOGRADS KO MESOVITO PREDUZEC E A.D.	-	-	Serbia	€	-	93,90%	SUBSIDIARY	FULL CONSOLIDATI ON	Hotel services
NORTH HAVEN LTD	-	-	Hong Kong	\$	-	100,00%	SUBSIDIARY	FULL CONSOLIDATI ON	Holding
MARKELIA ENTERPRIS ES COMPANY LTD	-	-	Cyprus	€	-	100,00%	SUBSIDIARY	FULL CONSOLIDATI ON	Services
TOTAL	26.166	26.165
PROVISION FOR IMPAIRMEN
T NET VALUE	(2.326) 23.840	(2.325) 23.840

Within the current year:

The Parent Company received from LUELLA ENTERPRISE Co dividends totally amounting to € 1535 k (2014: € 1.657 k), following the decisions of the General Meetings of the subsidiary made in 2015.
The company NORTH HEAVEN LtD is under voluntary liquidation after the liquidation request of 11/09/2015. After the company's announcement of 2/2/2016 all of company's assets are transferred to the unique shareholder, the company Luella Enterprises Company Limited. The «Foreign currency translation reserve» at Group Consolidated Financial Statements with debit balance of € 502 k., was transferred to "Retained Earnings", through the results. It has to be noted that there is no charge to the Equity, due to reclassification through the results. The effect of pausing the consolidation, at the turnover and the Equity of the parent company's owners does not exceed 25%.

The change in investments of the parent company is as follows:

Amounts in thousand Euro, unless otherwise mentioned

Amounts in thousands €	31.12.2015	31.12.2014
Opening balance	23.840	26.165
Impairment loss recognized in the income
statement		(2.325)
Closing balance	23.840	23.840

5.6. Investment in Joint Venture

The Group jointly participates with other parties (50%) in the company "Touristika Theretra S.A.".

Changes in Joint Ventures are presented in the following table:

LAMPSA Group	Acquisition value 31/12/2014	Profit after tax	Value 31/12/2015 (Investment in Joint Ventures)
TOURISTIKA THERETRA S.A.	301	(301)	0

If positive, the percentage in Equity is presented in the Consolidated Statement of financial Position in the item of Assets "Investments in Joint Ventures", otherwise, in the item of Liabilities "Other Long-term Liabilities".

Joint Venture acquisition cost in the parent company books is recorded as follows:

Amounts in thousands €	Acquisition Value 31/12/2015	Acquisition Value 31/12/2013 4
TOURISTIKA THERETRA S.A.	9.260	9.260
TOTAL	9.260	9.260
Provisions for impairment	(9.260)	(9.260)
TOTAL	-	-

Condensed data on Touristika Theretra S.A. is presented below as follows:

	31.12.2015	31.12.2014
Statement of Financial Position
Non-current Assets	32.114	33.245
Current Assets	2.220	2.040
Total Assets	34.334	35.285

Total Equity	(556)	602
Long-term Liabilities	3.260	27.455
Short-term Liabilities	31.630	7.228
Total Liabilities	34.334	35.285
Statement of Comprehensive Income	01.01-31.12.2015	01.01-31.12.2014
Profit / Loss after tax	(1.158)	(362)
Other comprehensive income / (loss)	0	(28)
Total comprehensive income / (loss)	(1.158)	(390)

Depreciations	1.763	2.086
Financial income	0	5
Financial expenses	706	721
Income tax	561	80

During the current period the parent company Lanpsa S.A. paid € 500 k to Touristika Theretra S.A. due to future increase of the share capital which appears in the item "Receivables from Associates and other equity Business interest".

5.7. Analysis of other long term receivables

Other long term receivables of the Group and the Company are analyzed below as follows:

		THE GROUP		THE COMPANY
Amounts in thousands €	31.12.2015 31.12.2014		31.12.2015	31.12.2014
Guarantees	107	179	107	179
Other receivables	264	180	-	-
Total	371	359	107	179

5.8. Inventory Analysis

The Group and the Company inventory is analyzed as follows:

		THE GROUP	THE COMPANY
Amounts in thousands €	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Goods	713	533	665	489
Raw materials	257	246	145	141
Spare parts	137	91	-	-
Total	1.108	871	809	630

The Group has no pledged inventory.

5.9. Trade and other Receivables and other Assets

The Group and the Company receivables are analyzed as follows:

	THE GROUP			THE COMPANY
Amounts in thousands €	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Trade receivables from third parties	1.229	1.857	1.003	1.543
Cheques receivable	103	66	103	66
Less: provision for doubtful receivables	(143)	(96)	(132)	(80)
Trade receivables - net	1.189	1.827	974	1.529
Advance payment	108	88	65	72
Miscellaneous debtors	230	188	118	156
VAT	-	131	-	-
Doubtful receivables from Greek State	315	262	-	-
Receivables from associates	500	-	500	-
Other Receivables	1.154	669	683	228
Restricted deposits accounts	-	198	-	198
Prepaid expenses	401	521	353	445
Accrued income	169	98	93	78
Other current assets	569	817	446	722
Total other receivables	1.723	1.486	1.129	950

Total trade and other receivables	2.912	3.312	2.103	2.478

All the above receivables are short-term. The fair value of these short-term financial assets is determined independently because the carrying value is considered to approximate their fair value. .

The Group's management periodically reassesses the adequacy of the allowance for doubtful receivables in connection with the credit policy and taking into account information of legal counsel, which arise from processing of historical data and recent developments of the cases they handle.

The provision for doubtful debts has been formed for specific customer balances that have exceeded the credit policy of the Group, for most of which the Group has made legal claims.

There are no liens on the group and the Company receivables.

The receivables of the Group and the parent company parent that are not impaired and are post due (over 90 days) amount to Euro 200 k.

5.10. Analysis of cash available

The Group and the Company cash available is analyzed as follows:

	THE GROUP		THE COMPANY
Amounts in thousands €	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Cash	310	106	273	59
Sight deposits	5.460	2.951	2.681	1.084
Total	5.770	3.057	2.954	1.142

From the above deposits, there arose financial income for the Group and the Company amounting to € 32 k and 4 k respectively (2014: Group € 9 k, Company: € 2 k).

Sight deposits per currency are analyzed as follows:

		THE GROUP	THE COMPANY
Amounts in thousands €	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Sight deposits in €	5.212	2.948	2.489	1.081
Sight deposits in \$	208	3	208	3
Sight deposits in RSD	107	0	14	0

5.11. Equity Analysis

The Group and the Company Equity is analyzed as follows:

		THE GROUP	THE COMPANY
Amounts in thousands €	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Capital and reserves attributable to
parent owners
Share capital	23.928	23.928	23.928	23.928
Share premium	38.641	38.641	38.641	38.641
Treasury shares
Foreign currency translation differences	-	(502)
Other reserves	1.385	513	1.372	1.202
Retained earnings	15.968	15.367	2.806	(1.889)
Total	79.922	77.947	66.747	61.882
Non-controlling interest	3.332	3.380	-	-
Total Equity	83.254	81.328	66.747	61.882

From the above, the statutory reserve is mandatory formed from the profits of each financial year and remains in equity of the Company to offset any losses incurred in the future and is taxed in each period in which they were formed and therefore is tax exempted.

Reserve actuarial income reflects actuarial gains and losses which are presented in a fiscal year and are recognized completely and directly in Comprehensive income of current year.

As far as the remaining reserves are concerned, they can be distributed to shareholders given that the attributable tax has been paid.

Changes in the "Statutory reserve" and the "Other reserves" of the Group and the Company are analyzed as follows:

THE GROUP
Amounts in thousands €	Statutory reserves	Extraordinary reserves	Tax exempted reserves under special regulations	Actuarial results reserves	Other reserves	Total

Balance as at 31/12/2013	878	404	4.203	359	127	5.972
Changes within the FY			(4.904)	(553)		(5.458)
Balance as at 31/12/2014	878	404	(702)	(194)	127	513
Changes within the FY	0	0	702	170		872
Balance as at 31/12/2015	878	404	-	(24)	127	1.385

THE COMPANY
Amounts in thousands €	Statutory reserves	Extraordinary reserves	Tax exempted reserves under special regulations	Actuarial results reserves	Other reserves	Total

Balance as at 31/12/2013	878	404	4.200	318	127	5.927
Changes within the FY	-		(4.200)	(525)		(4.725)
Balance as at 31/12/2014	878	404	-	(207)	127	1.202
Changes within the FY			-	170		170
Balance as at 31/12/2015	878	404	-	(37)	127	1.372

Detailed description of the change in the Equity of the Group and the Company is presented in the "Statement of Changes in Equity" of this report.

5.11.1. Share Capital

As at 31 December 2014, the Company's share capital amounts to € 23.927.680, divided into 21.364.000 common registered shares of nominal value € 1,12 each. The Company's shares are listed on the Athens Stock Exchange, in the category of low dispersion and specific characteristics, are traded on the stock exchange in Athens 'main market' and participate in the Travel & Leisure Sector, Branch Hotels.

There aren't at the end of the current fiscal year, shares of the parent company held by it or by its subsidiaries or jointly controlled companies.

The management of LAMPSA aiming to boost the liquidity of the Company, capital aid and the examination of a possible reduction of the financial costs through payment of loan capital over conventional will propose to the Annual General Meeting not to distribute dividends from the profit year. It should be noted that the proposed distribution is subject to approval of the annual ordinary general meeting of shareholders.

The profits of LAMPSA S.A. for 2015, amounting to € 4.695 k, are proposed to be distributed as follows:

Amounts in thousands €
Net profit for the year	4.695
Previous year losses	(1.889)
Retained earnings	2.806
Less: Suggested statutory reserves	(140)
Profits for distribution to shareholders	2.666
Suggested dividend	0,000
Retained earnings	2.666
Dividend per share (in €)	0,000

It should be noted that the proposed dividend is subject to approval of the annual ordinary general meeting of shareholders.

5.12. Analysis of provisions

Provisions, made by the Group and the Company, are analyzed as follows:

		THE GROUP
	Loss from shares	Other provisions	Tax audit differences	Other provisions (legal claims)	Total	Customers provisions
31.12.2013	9	6	-	223	239	17
Additional provisions	-	-	-	427	427	80
Used provisions	-	-	-	(96)	(96)	-
Unused amounts reversed	-	(6)	-	-	(6)	-
Reclassifications
31.12.2014	9	0	-	554	563	97
Additional provisions	-	-	-	59	59	132
Used provisions	-	-	-	(29)	(29)	(67)
Unused amounts reversed	-	-	-	(4)	(4)	(19)
31.12.2015	9	0	-	580	590	143

For the period ended as at December 31, 2015

	THE COMPANY
	Loss from shares	Other provisions	Tax audit differences	Other provisions (legal claims)	Total	Customers provisions
31.12.2013	9	6	-	187	202	0

Additional provisions	-	-	-	7	7	80
Used provisions	-	-	-	(96)	(96)
Reclassifications	-	(6)	-		(6)
31.12.2014	9	-	-	98	107	80
Additional provisions	-			15	15	132
Used provisions	-	-	-	(29)	(29)	(61)
Unused amounts reversed	-		-	(4)	(4)	(19)
31.12.2015	9	-	-	80	89	132

Under the above table, provisions for bad debts less receivables are presented.

5.13. Analysis of suppliers

Analysis of suppliers and other short-term payables of the Group and the Company is presented below as follows:

		THE GROUP	THE COMPANY
Amounts in thousands €	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Suppliers	2.147	2.779	2.064	2.663
Payable cheques	125	-	125	-
Total Suppliers and Other Liabilities	2.272	2.779	2.189	2.663

5.14. Analysis of other liabilities and advance payments

		THE GROUP		THE COMPANY
Amounts in thousands €	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Suppliers advance payments	844	813	634	770
Social insurance	661	708	661	708
Accrued expenses for the period	871	917	602	780
Income carried forward	77	92	3	5
Dividends	1	3	1	3
Other short-term liabilities	2.535	1.898	2.298	1.589
Total	4.988	4.431	4.198	3.855

The fair values of trade and other liabilities are not shown separately since, because of their short duration, management considers that the carrying amounts recognized in the balance sheet are a reasonable approximation of fair values.

Other short-term liabilities mainly pertain to liabilities to the Managing Company and additional liabilities regarding rentals based on contractual terms.

5.15. Current Tax Liabilities

The Group and the Company current tax and other liabilities are presented below as follows:

		THE GROUP	THE COMPANY
Amounts in thousands €	31.12.2015	31.12.2014	31.12.2015	31.12.2014

Income tax	182	105	-	-
Total tax liabilities	182	105	-	-

5.16. Deferred Tax Assets and Liabilities

Offsetting deferred tax assets and liabilities is performed, in terms of company, when there is an enforceable legal right to do so and when the deferred income taxes relate to the same tax authority.

The tax rates for the FY 2014 regarding the companies operating abroad are as follows:

Country	Tax rate
SERBIA	15%
CYPRUS	12,5%

Deferred income tax is provided on temporary differences using the tax rates expected to apply to the countries where the Group companies are active. The amounts shown in the balance sheet are expected to be recovered or settled after 31η Δεκεμβρίου 2015.

Deferred taxation on 31/12/2015 for Group companies operating in Greece has been calculated at the applicable tax rate of 29% established by L. 4110/2013.

Tax losses are recognized as deferred tax assets to the extent that the recovery of the tax benefit through future taxable profits is probable.

As at 31 December 2015, the Group and the Company had accumulated tax losses carried forward of € 3.668 k for which an amount of € 1.064 k, was recognized as deferred tax asset, given that the Management estimates that their offsetting with future taxable profits is reasonably possible. This Management's assessment is based on the relevant approved business plan of the respective companies.

Changes in deferred tax assets and liabilities of the Group are as follows:

	THE GROUP
		31.12.2015	31.12.2014
Amounts in thousands €	Deferred tax asset	Deferred tax liability	Deferred tax asset	Deferred tax liability
Property, plant and equipment	8.343	(5.169)	7.096	(4.745)
Intangible Assets	182	-	-	-
Trade receivables	29	-	9	-
Actuarial results reserves	15	-	73	-
Employees termination benefit obligations	645	-	536	-
Government grants	-	(12)	-	(13)
Tax loss to be offset	1.064	-	-	-
Provisions – obligations	-	(8)	36	-
Recognition of tax loss	-	-	305	-
Recognition of loss offsetting with reserves Law 4172/2013under provisions of Article 72	-	-	1.950	-
Total	10.278	(5.189)	10.004	(4.757)

Offsetting	(1.761)	1.761	(912)	912
Net deferred tax asset / (liability)	8.518	(3.428)	9.092	(3.845)

Changes in deferred tax assets and liabilities of the Group for FY 2015 & 2014 are as follows:
------------------------------------------------------------------------------------------------	--	--	--	--	--	--	--	--

THE GROUP
Deferred tax assets (liabilities)	1.1.2015	Recognized in Other Comprehensive Income	Recognized in Income Statement	31.12.2015
Property, plant and equipment	2.351		823	3.174
Intangible Assets	-		182	182
Trade receivables	9		20	29
Actuarial results reserves	73	(58)		15
Employees termination benefit obligations	536		110	645
Bonds	-			-
Government grants	(13)		0	(12)
Tax loss to be offset	-		1.064	1.064
Provisions – obligations	36		(44)	(8)
Deferred Tax Liability from credit foreign currency translation differences (valuation)	-		-	-
Recognition of tax loss	305		(305)	-
Recognition of loss offsetting with reserves Law 4172/2013 under provisions of Article 72	1.950		(1.950)	-
Total	5.247	(58)	(100)	5.089

Recognized as:
Deferred tax asset	9.092			8.518
Deferred tax liability	(3.845)			(3.428)

ANNUAL FINANCIAL REPORT

THE GROUP
Deferred tax assets (liabilities)	1.1.2014	Recognized in Other Comprehensive Income	Recognized in Income Statement	31.12.2014
Property, plant and equipment	1.833		518	2.351
Trade receivables	-		9	9
Actuarial results reserves	(112)	185		73
Employees termination benefit obligations	598		(63)	536
Bonds
Government grants	-		(13)	(13)
Tax loss to be offset	4		(4)	-
Provisions – obligations	(59)		95	36
Deferred Tax Liability from credit foreign currency translation differences (valuation)	-		-	-
Recognition of tax loss	709		(404)	305
Recognition of loss offsetting with reserves Law 4172/2013 under provisions of Article 72	-		1.950	1.950
Total	2.975	185	2.087	5.247

Recognized as:
Deferred tax asset	7.232			9.092
Deferred tax liability	(4.258)			(3.845)

Changes in deferred tax assets and liabilities of the company for FY 2015 & 2014 are as follows:

	THE COMPANY

	31.12.2015		31.12.2014
		Deferred tax	Deferred tax	Deferred tax
Amounts in thousands €	Deferred tax asset	liability	asset	liability
Property, plant and equipment	7.840	(1.237)	7.096	(899)
Intangible assets	182	-		-
Trade receivables	29		9
Actuarial results reserves	15		73
Employees termination benefit obligations	645		536
Government grants		(12)		(13)
Tax loss to be offset	1.064
Provisions – obligations		(8)	36
Recognition of tax loss			305
Recognition of loss offsetting with reserves Law 4172/2013 under provisions of Article 72			1.950
Total	9.775	(1.257)	10.004	(912)
Offsetting	(1.257)	1.257	(912)	912
Net deferred tax asset / (liability)	8.518	-	9.092	-

Changes in deferred tax assets and liabilities of the company for FY 2015 & 2014 are as follows:

THE COMPANY

	1.1.2015	Recognized in Other Comprehensive Income	Recognized in Income Statement	31.12.2015
Property, plant and equipment	6.197		406	6.603
Intangible assets	-		182	182
Trade receivables	9		20	29
Actuarial results reserves	73	(58)		15
Employees termination benefit obligations	536		110	645
Government grants	(13)		(1)	(12)
Tax loss to be offset			1.064	1.064
Provisions – obligations	36		(44)	(8)
Recognition of tax loss	305		(305)	-
Recognition of loss offsetting with reserves Law 4172/2013under provisions of Article 72	1.950		(1.950)	-
Total	9.092	(58)	(517)	8.518
Recognized as:
Deferred tax asset	9.092			8.518
Deferred tax liability	-			-

ANNUAL FINANCIAL REPORT

THE COMPANY
Deferred tax assets (liabilities)	1.1.2014	Recognized in Other Comprehensive Income	Recognized in Income Statement	31.12.2014
Property, plant and equipment	6.091		106	6.197
Trade receivables	-		9	9
Actuarial results reserves	(112)	185		73
Employees termination benefit obligations	598		(63)	536
Government grants	4		(17)	(13)
Tax loss to be offset
Provisions – obligations	(59)		95	36
Recognition of tax loss	709		(404)	305
Recognition of loss offsetting with reserves Law 4172/2013under provisions of Article 72	-		1.950	1.950
Total	7.232	185	1.675	9.092

Recognized as:
Deferred tax asset	7.232			9.092
Deferred tax liability	-			-

5.17. Analysis of loans

The borrowings of the Group and of the Company, both long and short term, are analyzed in the following table:

Amounts in thousands €		THE GROUP		THE COMPANY
	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Long-term debt
Bond Loans	29.938	34.145	29.938	34.145
Long-term bank loans	1.129	1.460
Total long-term debt	31.067	35.605	29.938	34.145
Short-term debt
Short-term portion of bond and bank
loans	5.442	5.255	5.110	4.923
Total short-term debt	5.442	5.255	5.110	4.923
Total	36.509	40.860	35.049	39.068

On the property of the parent company and the Group there are liens amounting to € 48.550 ,k και \$ 25.500 k for outstanding loans amounting to € 36.509,k και € 35.049 ,k respectively. Furthermore, there are effective the guarantees provided by the parent, amounting to € 1,300 k and collaterals over 100% of its paid share capital in the company Touristika Theretra S.A. for ensuring its bond loan.

During the period, the Company and the Group received no new loans while they repaid € 4.923 ,k and € 5.255 ,k respectively.

The effective weighted average interest rates of the Group, on the balance sheet date are:

	31/12/2015	31/12/2014
Bank loans	3,18%	3,47%

5.18. Other long term liabilities

Other long-term obligations to the Company and the Group refer mainly due to long-term installments for the inclusion of the Company in N.4178 / 2013.

5.19. Analysis of employee retirement benefits

Changes in net liabilities in the Group and the Company Balance Sheet are as follows:

Liabilities Retirement benefit from the service:

	31/12/2015		31/12/2014
Amounts in thousands €	Defined benefit plans (Non-financed)	Total	Defined benefit plans (Non-financed)	Total
Defined benefits obligation	2.277	2.277	2.340	2.340
Fair value of the plan assets	-	-	-	-
	2.277	2.277	2.340	2.340
Classified as:
Long-tern liability	2.277	2.277	2.340	2.340
Short-tern liability	0	0	0	0

The change of liability's present value on defined benefits plans is as follows:

	31/12/2015		31/12/2014
	Defined benefit plans (Non		Defined benefit plans (Non
Amounts in thousands €	financed)	Total	financed)	Total
Defined benefits obligation as at January 1	2.340	2.340	1.872	1.872
Current employment cost	138	138	150	150
Interest expenses	47	47	68	68
Plan participation contributions				-
Revaluation – actuarial loss /(profit) from changes in financial
assumptions	(228)	(228)	710	710
Benefits payable	(26)	(26)	(188)	(188)
Cost of previous service	6	6	(271)	(271)
Defined benefits obligation as at December 31st	2.277	2.277	2.340	2.340

The amounts recognized in the Income Statement are as follows:

	01.01.2015-31.12.2015		01.01.2014-31.12.2014
Amounts in thousands €	Defined benefit plans (Non financed)	Total	Defined benefit plans (Non financed)	Total
Current employment cost	138	138	150	150
Cost of previous service	6	6	(271)	(271)
Net interest on benefit obligation	47	47	68	68
Total expenses recognized in the Income Statement	191	191	(53)	(53)

The amounts recognized in other comprehensive income of the Statement of Other Comprehensive Income are as follows:

	31/12/2015		31/12/2014
Amounts in thousands €	Defined benefit plans (Non financed))	Total	Defined benefit plans (Non financed)	Total
Actuarial profit /(loss) from changes in demographic
assumptions	-	-		-
Actuarial profit /(loss) from changes in financial
assumptions	228	228	(710)	(710)
Return on the plan assets (less the amounts included in net interest)	-	-		-
Total income /(expenses) recognized in total
comprehensive income	228	228	(710)	(710)

The company has commissioned independent actuaries to create an estimation of Company obligation to pay retirement indemnities. The principal actuarial assumptions on 31 December 2015 are as follows:

	31/12/2015	31/12/2014
Discount rate as at December 31st	2,56%	2,08%
Future salary increases	1,75%	1,75%
Inflation	1,75%	1,75%

Demographic assumptions:

The assumptions presented below pertain to various causes of employment termination.

1)Mortality

Swiss EVK2000 mortality table has been used for or men and women.

2)Morbidity

Swiss EVK2000 mortality table for men and women has been used modified by 50%

3)Regular Employment Termination Ages

The terms of employment termination of the Social Insurance Fund were used regarding every employee considering recognition of average two years service under the provisions of the Insurance Act.

The above results depend on the assumptions (economic and demographic) generated under an actuarial study. Therefore, if a 0.5% higher discount rate had been applied, then the total liability would have been lower by approximately 8%. If salary increase assumption by 0.5% had been used, then the total liability would have been higher by approximately 7%.

5.20. Analysis of Income Statement

The year 2015 has been marked by significant recovery of the Tourist Industry. This fact has led to a significant increase in all sizes (income, occupancy, room rates, etc) of hotels in Greece, since the inbound tourism is not affected by the economic crisis. However, the consequences of the crisis have been reflected in the revenue from the segment of F & B (Food & Beverage), with consistently strong Greek presence, since the segment has recorded lower growth rates compared to room rates. On the contrary, the stagnation of Serbia economy in conjunction with the transitional period during which tourism infrastructure has increased (new hotels, airport, airline privatization etc.), in view of Serbia joining the EU, resulted in a decrease in the hotels sizes.

Room occupancy ratio of the luxury hotel industry in Athens increased by 1,24 % compared to 2014, adjusting the ratio to 65,3% versus 64.5% in 2014. Higher scale adjustments were made to the average room rate of luxury hotels, amounting to 3.77% growth compared to 2014, reaching € 153,20 vis € 147,63 το 2014. Therefore, room occupancy ratio of the luxury hotel industry in Athens increased by 5,2% while the total room revenue – by 4.8%.

"Grande Bretagne" hotel recorded a 6.6% sales growth versus 2014, while «King George» hotel recorded 12% sales increase.Regarding the Group Hotels in Serbia,they ranged in the same sales levels. In terms of EBITDA, increase in sales and expenditure restraint (despite the rigidity of the salary and wages expenses) had a very positive effect, with an increase of about € 1,05 m. for the Group and € 0.7 m. for the Company in relation to 2014 Moreover, Sheraton Rhodes Hotel, whose results due to consolidation under Equity method have affected the investing results of the Group, presenting a decrease of 4%.

The aforementioned events resulted in the following significant items of the Financial Statements:

The Group's turnover amounted to € 51,522,k. Versus € 48,693 ,k. In 2014 marking an increase of 5.81 % . In the parent company , respectively (Hotel "Great Britain " and King George) amounted to € 41,443 ,k . from € 38,651 ,k. In 2014 , ie increased by 7.22 % deriving mainly from rooms revenue (completeness and average) therefore political stability rebound and inbound tourism . The involvement of King George was € 8.5 million versus € 7.6 million in 2014 .
Consolidated gross profit amounted to € 19,055,k from € 17,082,k in 2014, presenting an increase of 11.55%, while gross profit margins increased from 35.08% in 2014 to 36.98% in 2015. Gross profit of the parent company amounted to € 16,448,k versus € 14,240 k in 2014, representing an increase of approximately 15,55%. The gross profit margin of the Company stood at 36.69% in 2015 from 36.84% in the last year. The increase is mainly attributed to a large increase in turnover and therefore to the improvement of profit margins due to relatively stable wage costs, a major component of the cost of sales.
The Other income of the Group is lower due to reduced revenue from unused and used forecasts for the current year.
The operating profit (before interest, taxes, depreciation and amortization-EBITDA) amounted to € 11,745, k compared to € 10,695 k in 2014, representing an increase of 9.82%. The substantial increase in EBITDA reflects the affect of the important increase in turnover as well as to the prudent management, proved highly satisfactory regarding revenue and EBITDA. In the parent company amounted to € 8,562 k against € 7,819 k 2014 increased by 9.5 % which is due to the increase in turnover . It is to be noted that despite decreased turnover, Serbian hotels present positive ΕΒITDA.
The Group and the Company's Financial cost recorded a decrease of € 338 k and € 290 k respectively which is due to the decrease of loan liabilities of the Parent Company at the amount of € 4,019 k (from € 39,068 k to € 35,049 k).
The Group's other financial results were burdened with exchange rate differences which mainly derived from the loan valuation in US Dollars of the Company and from the reclassification of the

«Reserve of the Exchange Rate Differences» of the amount of € 502 k. due to voluntary liquidation of the subsidiary Company North Heaven Ltd. During the previous year apart from the exchange rate differences, the Group's other financial results were burdened with impairments Goodwill at the amount of € 5,731 k. Besides the exchange rate differences, the Company's results include the revenues from dividends with value € 1,535 k, versus € 1,657 k in the previous year.

Earnings (losses) from property, plant and equipment impairment is due to impairment of land plots and buildings of Serbian subsidiaries, burdened in 2015 with € 2.035 k versus € 4.148 k. The Group's management believes that these impairments do not reflect the market value of real estate estate and arise from temporarily adjustments imposed by the IFRS. The lack of comparables in Serbia did not allow to form commercial values, while opening of new international hotel units in Belgrade reflects growth expectations that are not consistent with these impairments The Management estimates that identifying of such comparables in view of Serbia's joining the European Union will allow to reverse the performed impairments. Already, the rate of return of B.M.P company, after the stabilization of 2014, increases in 2015 and keeps rising in 2016.
The Group's results before taxes stood in profits at the level of € 1,548 k from losses € 6,870 k in 2014, loss which was mainly due to the impairments of assets and goodwill. The profits before taxes of the Company stood at the level of € 5,212 k. versus profits of € 1,843 k in 2014.
Net earnings (after tax and before non-controlling interest royalties) of the Group recorded profit of € 1.303 k versus losses of € 4.556 k recorded in 2014, as a result of the above and as a result of the tax recording expenses of € 294 k versus revenue of € 1.945 k in 2014. The current FY income tax was affected by the change in the tax rate (from 26% to 29%) positively affecting deferred tax and from offsetting tax assets recognised in the previous year, amounting to € 2.3 m with the current income tax, amounting to € 1.06 m.

Turnover

The following table presents an analysis of the Group's revenues and the Company per major category:

	THE GROUP		THE COMPANY
	01/01- 31/12/2015	01/01- 31/12/2014	01/01- 31/12/2015	01/01- 31/12/2014
Rooms rental income	33.307	31.059	26.666	24.477
Sales of food and beverage	15.229	14.736	12.503	12.046
SPA-Health Club income	352	366	-	-
Telephone income	21	24	-	-
Other income	2.613	2.507	2.274	2.127
TOTAL	51.522	48.693	41.443	38.651

Gross profit for the Group was as follows:

		CONSOLIDATED	CORPORATE
	1/1- 1/1-		1/1-	1/1-
Amounts in thousands €	31/12/2015	31/12/2014	31/12/2015	31/12/2014
Gross profit	19.055	17.082	16.448	14.240
Gross profit percentage	37%	35%	40%	37%

Expenses per category

The Group and the Company expenses per category are as follows:

	THE GROUP			THE COMPANY
1.1 - 31.12.2015	Cost of sales	Administrative expenses	Distribution expenses	Cost of sales	Administrative expenses	Distribution expenses
Inventory consumption	6.295	27	8	4.646	-	-
Employee fees and expenses	13.247	2.098	934	10.525	1.929	912
Third parties fees and expenses	313	2.947	3.450	297	2.498	3.265
Utilities	4.160	675	109	4.160	599	85
Taxes-duties	520	167	18	520	163	12
Miscellanneous expenses	3.238	952	1.146	2.531	281	814
Depreciation	4.658	274	3	2.280	274	3
Operating provisions	35	-	-	35	-	-

ANNUAL FINANCIAL REPORT

For the period ended as at December 31, 2015

Amounts in thousand Euro, unless otherwise mentioned

Total	32.467	7.139	5.668	24.995	5.744	5.091

	THE GROUP			THE COMPANY
1.1 - 31.12.2014	Cost of sales	Administrative expenses	Distribution expenses	Cost of sales	Administrative expenses	Distribution expenses
Inventory consumption	6.210	28	8	4.533	-	-
Employee fees and expenses	13.247	2.109	743	10.497	1.937	725
Third parties fees and expenses	177	1.943	3.154	161	1.661	2.986
Utilities	3.892	675	88	3.892	590	69
Taxes-duties	421	249	17	421	243	9
Miscellaneous expenses	3.191	1.122	1.041	2.549	356	694
Depreciation	4.379	269	2	2.263	269	2
Operating provisions	96	-	-	96	-	-
Total	31.611	6.394	5.053	24.410	5.056	4.485

Cost of sales items, administrative expenses, distribution and other expenses for the year 2014 have been reclassified due to the reassessment of costs allocation within the current FY.

The reclassification is as follows:

	2014 Republished	2014 Published	Change
Cost of sales	24.410	24.915	(504)
Administrative expenses	5.056	6.534	(1.478)
Distribution expenses	4.485	2.578	1.907
Other expenses	186	111	75
Total	34.137	34.137	0

Other income and expenses of the Group and the Company are analyzed as follows:

	THE GROUP		THE COMPANY
	1.1 -	1.1 -	1.1 -	1.1 -
Other income	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Income from Grants	19	68	19	68
Other similar activities income	68	68	68	68
Income from rentals	653	689	317	316
Commissions- Brokerage	53	88	53	88
Income from previous years unused provisions	-	85	-	85
Income from previous years used provisions	15	98	15	98
Invoiced expenses	147	89	147	89
Other income	38	48	31	5
Total	993	1.233	649	818

	THE GROUP			THE COMPANY
	1.1 -	1.1 -	1.1 -	1.1 -
Other expenses	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Other expenses
Provisions for doubtful receivables & ligitations	187	495	143	75
Loss from destruction – disposal of assets	-	81	-	-
Interest on past due legal cases compensation	1	-	1	-
Legal case compensations	-	39	-	39
Fines and surcharges	19	11	19	11
Previous year taxes & Unified Property Tax	26	-	26	-
Other taxes	23	28	-	-
Other previous years expenses	63	-	63	-
Miscellaneous expenses	112	204	5	61
Total other expenses	431	859	258	186

5.21. Financial income / expense & Other Financial Results

The analysis of the financial results of the Group and of the Company was as follows:

		THE GROUP	THE COMPANY
Interest income from:	1.1 - 31.12.2015	1.1 - 31.12.2014	1.1 - 31.12.2015	1.1 - 31.12.2014
Bank deposits	32	9	4	2
Customers interest	16	44	-	-
Financial income	49	53	4	2

		THE GROUP		THE COMPANY
Interest expenses from:	1.1 - 31.12.2015	1.1 - 31.12.2014	1.1 - 31.12.2015	1.1 - 31.12.2014

Employees compensation obligation	47	68	47	68
Bank loans	1.229	1.518	1.156	1.392
Finance lease obligations	11	11	-	-
Other bank expenses &
commissions	15	47	-	32
Letter of Guarantee commissions	6	7	6	7
Other financial expenses	15	8	-	-
Financial Cost	1.322	1.660	1.209	1.499

	THE GROUP		THE COMPANY
Other financial results	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Income from dividends	-	-	1.535	1.657
Loss from goodwill-securities -property, plant and equipment impairment	-	(5.731)	-	(2.326)
Profit from foreign currency translation differences	40	195	40	5
Loss from foreign currency translation differences	(1.693)	(1.405)	(1.163)	(1.326)
Total	(1.653)	(6.941)	412	(1.990)

5.22. Reconciliation of income tax

The amount of tax on profit before tax of the Group and the Company, differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of consolidated companies. The relationship between the expected tax expense, based on an effective tax rate of the Group, and the tax expense that was really recognized in the income statement, is as follows:

		THE GROUP	THE COMPANY
	01/01- 01/01- 31/12/2015 31/12/2014		01/01- 31/12/2015	01/01- 31/12/2014
Current tax expenses	(194)	(143)	-	-
Deferred income tax	(100)	2.087	(517)	1.675
Total	(294)	1.945	(517)	1.675

Amounts in thousand Euro, unless otherwise mentioned

THE GROUP	01/01- 31/12/2015	01/01- 31/12/2014
Earnings before tax	1.548	(6.870)
Tax rate	29%	26%
Expected tax expense/income under the statutory tax rate	449	(1.786)
Adjustments for differences in tax rates		402
Effect of different tax rates in other countries	220
- depreciation/impairment related to goodwill	-	1.490
- other non-removable costs	700	194
Derecognition of previous years deferred tax asset	69	203
Recognition of loss offsetting with reserves under Law 4172/2013 following provisions of Article 72	-	(1.950)
Non-recognizable losses for the year for future offsetting	(64)
Recognized previous years loss	-	(628)
Other	(39)	131
Effect of change in tax rate	(1.041)
Realized tax expenses, net	294	(1.945)
Weighted tax rate	18,98%	28,31%

THE COMPANY	01/01- 31/12/2015	01/01- 31/12/2014
Profit before tax	5.212	1.843
Tax rate	29%	26%

Expected tax expense / (income) under the statutory tax rate	1.511	479
- other tax exempt income	(445)	(431)
- other non-removable costs	551	791
Recognition of loss offsetting with reserves under Law 4172/2013
following provisions of Article 72	-	(1.950)
Recognized previous years loss		(565)
Other	(60)	-
Effect of change in tax rate	(1.041)
Realized tax expense, net	517	(1.675)
Weighted tax rate	9,92%	-90,88%

5.23. Profit / (Loss) per share

Basic profit / (losses) per share are calculated based on profits / (losses) after taxes and Non-controlling interests from continuing operations, on the weighted average number of ordinary shares of the parent company within the accounting period.

The following is an analysis of profit/(loss) per share:

	THE GROUP		THE COMPANY
Amounts in thousands €	01/01- 01/01- 31/12/2015 31/12/2014		01/01- 31/12/2015	01/01- 31/12/2014
Profit attributable to the owners of the
parent	1.303	(4.556)	4.695	3.519
Weighted average number of shares	21.364	21.364	21.364	21.364
Basic earnings/loss per share (in
€)	0,0610	-0,2133	0,2198	0,1647

5.24. Transactions with related parties

None of the transactions incorporate special terms and conditions and no guarantee was given or received.

Amounts in thousands €	THE GROUP		THE COMPANY
		01.01-		01.01-
Sales of services	01.01-31.12.2015	31.12.2014	01.01-31.12.2015	31.12.2014
Subsidiaries/jointly controlled	49	26	49	26
Other related parties	81	64	81	64
Total	130	90	130	90
		01.01-		01.01-
Purchases of services	01.01-31.12.2015	31.12.2014	01.01-31.12.2015	31.12.2014
Subsidiaries/jointly controlled	13	16	13	16
Other related parties	397	413	397	413
Total	411	429	411	429
Balance of receivables	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Subsidiaries/jointly controlled	508	28	508	28
Other related parties	1	17	1	17
Total	510	45	510	45
Balance of liabilities	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Subsidiaries/jointly controlled	6	7	6	7
Other related parties	67	141	67	141
Total	73	147	73	147

The outstanding balances at year's end are unsecured and settlement occurs in cash. No guarantees were provided or received for the above requirements.

It is also noted that between the Parent Company and its subsidiaries there are no special agreements and any transactions carried out between them are within the usual terms and particularities of each market.

For the fiscal year that ended in 31 December 2015, the Company hasn't made a provision for doubtful debt relating to amounts owed by affiliated companies.

From the above transactions, transactions and balances with subsidiaries companies have been eliminated from consolidated financial statements of the Group. Among the subsidiaries of the Group exist requirements / liabilities from the total value of loans € 2,718 k and corresponding income / expense interest of € 153 k, as well as exchange differences of income / expense of € 1.024 k, which are eliminated on consolidation.

The salaries of directors and members of management were as follows:

	THE GROUP		THE COMPANY
Amounts in thousands €	01.01-31.12.2015	01.01-31.12.2014	01.01-31.12.2015	01.01-31.12.2014
Key executives and BoD members
Salaries-Fees	1.062	988	658	578
Social insurance cost	95	147	95	92
Bonus	156	119	156	119
Compensation	113	7	113	7
Total	1.426	1.260	1.021	795

Finally in the provision made for compensation of the Group's and Company's staff, an amount of € 58 k (2014:€ 55 k) is included for the executives and members of the board while in the statement of results are recorded € 6 k (2014: € 7 k).

No loans have been granted to members of the Board of Directors of the Group or management personnel and their families.

5.25. Employees Benefits

The Employee Benefits of the Company and the Group are as follows:

Amounts in thousands €	THE GROUP		THE COMPANY
	01.01-31.12.2015	01.01-31.12.2014	01.01-31.12.2015	01.01-31.12.2014

Employee salaries-Bonus	12.389	12.651	10.147	10.089
Social insurance cost	3.016	2.826	2.569	2.632
Other employee benefits	730	1.016	506	832
projected	26	(69)*	26	(69)*
Provision for employee
compensation	118	-	118	-
Total	16.279	16.424	13.366	13.486

* The revenue is due to the balance from of valuation of employee compensation obligation under IAS 19 and the compensation paid.

The number of employees employed on daily wages and salaried employees is as follows:

	THE GROUP		THE COMPANY
	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Salary
employees	517	531	294	307
Daily wages
employees	239	268	239	268
Total	756	799	533	575

5.26. Contingent assets-liabilities

- Operating leases - Income

The Group leases certain offices and shops under non-cancellable operating leases. All leases include a term. They have varying terms, escalation clauses and rights. The following is an analysis of contractual rentals to be collected in the coming years:

	CORPORATE
Amounts in thousands €	31/12/2015	31/12/2014
Operating leases collectable in 1 year	304	259
Subtotal 1: short-term operating leases	304	259


Operating leases collectable in 2 to 5 years	752	658
Subtotal 2	752	658
Operating leases collectable after 5 years	496	496
Subtotal 3	496	496
Subtotal 4 (=2+3): Long-term operating leases	1.248	1.154
Total (=1+4)	1.551	1.413

Operating leases - Expenses

On 24/12/2012, a final notarized contract was established between the parent company and the "Eurobank Ergasias SA Bank", for long-term leasing of the King George Hotel, with a lease term of ten (10) years with the Lessee having the right to extend it initially for five (5) years and then for a further five (5) years. Leasing was initiated with the signature of the Protocol of Delivery and Receipt of the Lease on 20/3/2013. The annual rent is comprised of a Minimum annual lease amount of € 700 k and a percentage of annual rent in proportion to Gross Profit, calculated on the Gross Profit of the Lease and alternatively on the sum of the Gross Profits of King George & Grande Bretagne hotels. An analysis of the minimum conventional rents which will be paid in the following years is as follows:

	CORPORATE
Amounts in thousands €	31/12/2015	31/12/2014
Operating leases collectable in 1 year	700	700
Subtotal 1: Short-term operating leases	700	700

Operating leases collectable in 2 to 5 years	2.800	2.800
Subtotal 2	2.800	2.800

Operating leases collectable after 5 years	1.552	2.252
Subtotal 3	1.552	2.252

Subtotal (=2+3): Long-term operating leases	4.352	5.052

TOTAL (=1+4)	5.052	5.753

Litigation cases

a) Administrative procedures for the compensation to former owners of the land on which the Hyatt Hotel (subsidiary company BEOGRADSKO MESOVITO PREDUZECE) and other third party structures have been constructed. The case is under inspection of the Commission for decision on the return of land in the Municipality of New Belgrade (hereinafter: the Commission). Despite the fact that the Supreme Court of Serbia annulled twice the second resolution, the Commission still supports the position that the Company is responsible and could seek compensation for the damage suffered by the legal predecessor of which the Company had acquired the land from. Regarding the aforementioned case, the Group has made a provision amounting to € 484 k as at 31.12.2015, which is estimated adequate.

b) Court cases have been filed against the subsidiary company BEOGRADSKO MESOVITO PREDUZECE by former employees for compensation due to termination of the employment relationship relying on non-competition clause amounting to € 1.1 million. The Group's management claims that there are no reasons for compensation concerning the termination of the employment relationship, given that both plaintiffs resigned of their own will. The management of the subsidiary has also acted against the plaintiffs, and interrogations for both conflicts have not yet started. As the cases are still at an early stage, the final outcome cannot presently be determined, and no provision for contingent liability of the Group has been made in the financial statements of the company. The case is reported as emphasis of matter issue in the Independent Auditor's Report.

There are no other litigation or arbitration disputes of courts or arbitration bodies that may have a significant influence on the financial statements or the functionality of the Group, beyond the provisions that have already been made (§ 5.12).

Unaudited tax years

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

Company	Ανέλεγκτες Χρήσεις
LAMPSA HELLENIC HOTELS SA	- *
LUELLA ENTERPRISES LTD	2007 - 2015
TOURISTIKA THERETRA SA	2010 *
EXCELSIOR BELGRADE SOCIALLY OWNED HOTEL & CATERING TOURIST
ENTERPRISES	2007 - 2015
BEOGRADSKO MESOVITO PREDUZECE	2012 - 2015
NORTH HAVEN LTD	2000 - 2015
MARKELIA LTD	2010 - 2015

For the unaudited tax years of the Group companies, there is a probability for additional taxes and penalties to be imposed, during the period that they will be examined and finalized by the relevant t ax authorities. On 22.04.2015, started the tax audit of the Parent Company for FY 2010 based on the audit order 1103 / 05.27.2014 and was completed on 30.10.2015, under the issue of Nr. 2988/2015 Final Amendments Identification Act. The audit findings established VAT were differences amounting to € 9 k in addition to the relevant surcharged amounts of € 11 k and additional accounting differences resulting in the decrease in transferred tax losses for 2010, which had been transferred until 2012, when they were offset with the tax on goodwill, arising from the revaluation of real estate property items under Law. 22065/1992. The difference to the retransferred tax losses resulted in the additional amount of tax of € 17 k plus surcharges of € 6 k. These amounts, ie 43k, have burdened the results of the reporting period and are included in the item "Other expenses" of the Statement of Comprehensive Income.

Furthermore, the Company was informed about the issue of additional audit order regarding additional data for FYs 2003 - 2009 (which were finalized under tax amnesty procedures), prolonging the procedures until 31/12/2015 (instead of 31/12/2013). Following the above, in the beginning of 2015, the additional order specified that the selective tax audit will be conducted in respect of INCOME, VAT and Books and Records items. Thereafter, the Company received the Note under Article 30, par. 5 of PD 186/92 issued by the Audit Authority for Large Enterprises. The Note, prepared in the context of conducted recurring audit by the aforementioned Authority in respect of income taxation and other tax items for the financial years 2003 to 2009, stated that "under the audit opinion", the accounting books held by the company in respect of the administrative periods in question are considered to have misstatements under the provisions of cases a, c and d of par. 4, Article 30, of P.D. 186/92 in line with the provisions of par. 7, 8 and 9 of the same Article of P.D. 186/92, as added under Law 3052/2002, given that the misstatements are substantial compared to the company financials and negatively affect them. The judgments regarding the "misstatements" in the accounting books is based on breaches of regulations regarding non-receiving and non-recording in the company's accounting books tax data on leasing fixed assets from the company STARWOOD HELLAS HOTELS S.A.

The Audit Authority for Large Enterprises summoned the Company to appear in front of the Ministry of Finance Committee as under Article 30, par. 5 of P.D. 186/92 that is authorized to conclude whether the misstatements referred to in the Note entail rejection of the accounting books and records and extraaccounting definition of taxable items for the administrative periods under audit.

The company submitted an application to the competent committee of the Ministry of Finance under Prot. Num. 0004836/07.08.2015, requesting the confirmation of the validity of the Company's accounting books stating the reasons, which are summarized as follows:

1. No rentals were due and paid since no equipment lease contract had been signed. In contrast, the concession was a contractual obligation of the contracting partner in the context of the existing hotel management contract.
1. There are no legal provisions regarding the imposition of imputed rentals on equipment concession cases, agreed upon between the parties and taking place without payment in joint service rendering contracts in accordance with the prevailing international practices.
1. Even in case such legal provisions were effective, the company would be in no position to account for the implied cost since according to the Law, the effective Legislation and the

Opinions of the State Legal Council, accepted by the Ministry, only the actual costs are deductible from the gross income of the company.

Finally, the company holds reservations regarding the legality of the conduct of the recurring audit given the expiry of some of the administrative periods under audit as well as the existence of new additional data to enable such a recurring audit.

* For the FY 2011-2014, the parent company and TOURISTIKA THERETRA S.A. were subject to tax audit of the Certified Public Accountants as provided by Article 82 para 5 Law 2238/1994 and Article 65Α Law 4174/2013.

Within the reporting period the parent company and the company TOURISTIKA THERETRA S.A. received unqualified conclusions Tax Compliance Certificate. Regarding FY 2015, the tax inspection is in process and the relative Tax Compliance Certificate is expected to be issued following the publication of the Financial Statements for FY 2015. Should other tax liabilities arise till the tax inspection is finalized, it is estimated that they will not significantly affect the Group and the Company Financial Statements.

Regarding the companies audited by Statutory Auditors and Auditing Firms in respect of tax provisions, the issues are selected for tax inspection in compliance with Article 26, Law 4174/2013, as effective. The tax inspection in question can be conducted within the FY, during which the Tax Authorities are entitled to issue tax identification acts.

For the unaudited tax years of the other companies of the Group, it is estimated that no significant additional tax liabilities will arise, therefore, no relevant provision has been made.

5.27. Guarantees

The Group and the Company have contingent liabilities and assets related to banks, other guarantees and other matters arising in the ordinary course of business, as follows:

	THE GROUP		THE COMPANY
Amounts in thousands €	31.12.2015	31.12.2014	31.12.2015	31.12.2014
Liens on land plots and building for
provision of loan in	48.850	48.850	48.850	48.850
Liens on land plots and building for
provision of loan in \$	25.500	25.500	25.500	25.500
Other guarantees to ensure liabilities	87	587	87	587
Guarantees for other associates	1.300	1.300	1.300	1.300
TOTAL	75.737	76.237	75.737	76.237

The guarantees of the parent company amounting to € 1.300 pertain to collaterals over 100% of its paid up share capital in the company TOURISTIKA THERETRA S.A. for the purposes of ensuring its bond loan.

6. Risk management policies objectives

The Group is exposed to financial risks such as market risk (fluctuations in exchange rates, interest rates, market prices, etc.), credit risk and liquidity risk.

The Group's financial instruments are composed of bank deposits, overdraft rights, trade receivables and payables, loans to subsidiaries, associated companies, dividends payable and lease obligations.

Since 2008, the Group applies a risk management program for such risks. The risk management program aims to limit the negative impact on the financial results of the group caused by the unpredictability of financial markets and the variation in the variables of cost and revenue. The group intends to use, in the near future, derivative financial instruments to hedge its exposure to specific risk categories.

The risk management process applied by the Group, is as follows:

Evaluation of risks associated with the activities and operations of the group,
design of methodology and selection of appropriate financial products to reduce risks and
application / implementation, in accordance with the procedure approved by the management, of the risk management procedures.

6.1. Currency risk

Financial assets and liabilities in foreign currency converted into Euro at the closing rate are as follows:

	31.12.2015	31.12.2014

Amounts in 000 €
Nominal amounts	US\$	US\$
Financial assets
Fianncial liabilities	(2.421)	(1.928)
Short-term exposure	(2.421)	(1.928)

Financial asets		-
Financial liabilities	(9.360)	(9.468)
Long-term exposure	(9.360)	(9.468)
Total	(11.781)	(11.396)

The following tables show the sensitivity of the result for the financial year as well as the equity in relation to financial assets and financial liabilities and the exchange rate Euro / Dollar.

In case € increases compared to the above currency, with the percentages mentioned above, the results on the earnings for the year and equity will be as follows:

Amounts in thousands €	01.01.2015-31.12.2015	01.01.2015-31.12.2014
	US\$	US\$
Income statement	354	(224)
Equity	251	(224)

In case € depreciates compared to the above currency, with the percentage mentioned above, the earning for the year will be affected as follows:

Amounts in thousands €	01.01.2015-31.12.2015	01.01.2015-31.12.2014
	US\$	US\$
Income statement	(383)	211
Equity	(272)	211

6.2. Sensitivity analysis of interest rate risk

Long-term financing is related to leasing contracts with variable interest rates (mainly Euribor and Libor).

The Group's policy is to minimize its exposure to cash flow interest rate risk on long-term financing. On 31 December 2015, the Company is exposed to changes in market interest rates, with regard to its bank loans, which are subject to variable interest rate.

The following table shows the sensitivity of the earnings for the year and equity, to a reasonable possible change in interest rate of +1.0% or -1.0% (2014: + / -1%). The changes in interest rates are estimated to be reasonable compared to market conditions.

	01.01-31.12.2015		01.01-31.12.2014
Amounts in thousand €	1,0%	-1,0%	1,0%	-1,0%
Income statement	(387)	387	(324)	324
Equity	(275)	275	(324)	324

6.3. Credit Risk Analysis

The Group's exposure to credit risk is limited to financial assets (means) which, at the reporting date, are as follows:

Amounts in thousands €	THE GROUP		THE COMPANY
Financial assets categories	31/12/2015	31/12/2014	31/12/2015	31/12/2014
Cash and cash equivalents	5.770	3.057	2.954	1.142
Trade receivables	2.343	2.495	1.657	1.757
Total	8.112	5.553	4.611	2.899

The majority of Group's sales are performed through credit cards, the credit sales though are made to customers with evaluated credit history.

For trade and other receivables, the Group is not exposed to significant credit risk. The credit risk on liquidation requirements and other short term financial assets is considered limited.

The Group's management considers that all the above financial assets that are not impaired in previous reporting dates are of high credit quality, including those owed.

None of the financial assets of the Group has been mortgaged or committed to any other form of credit insurance.

6.4. Liquidity risk analysis

The Group manages its liquidity needs by carefully monitoring the long-term financial liabilities as well as the daily payments. Liquidity needs are monitored in various time periods, on a daily and weekly basis and on a rolling 30-day period. The liquidity needs for the next 12 months are determined monthly.

suppliers. Moreover, the Group has common practice of retaining cash in order to meet liquidity needs for periods up to 30 days, which, given capital control, has increased to 90 days.

The maturity of the Group and the Company liabilities which will be settled on a cash basis are as follows:

THE GROUP		31.12.2015
Amounts in thousands €	Short-term			Long-term
	within 6 months	6 to 12 months	1 to 5 years	over 5 years
Bank debt	166	166	1.129	-
Bond loan	2.555	2.555	29.788	151
Finance lease liabilities	3	-	-	-
Other long-term liabilities	-	-	-	-
Trade liabilities	2.540	-	-	-
Other short-term liabliities	4.682	39	223	43
Total	9.945	2.760	31.139	194

		31.12.2014
Amounts in thousands €	Short-term			Long-term
	within 6 months	6 to 12 months	1 to 5 years	over 5 yeas
Bank Debt	166	166	1.460	-
Bond Loan	2.462	2.462	32.792	1.353
Finance lease liabilities	-	-	-	-
Other long-term liabilities	-	-	-	27
Trade liabilities	2.779	-	-	-
Other short-term liabilities	4.431	-	-	-
Total	9.837	2.627	34.253	1.380

The above contractual maturities reflect the gross cash flows, which may differ from the carrying values of the liabilities at the reporting date.

The Group on 31/12/2015 had negative working capital, as current liabilities exceed current assets by € 3.098 k. (parent company € 5.631 k). The most important part of current liabilities (42% Group – 44% parent company) is long-term debt installments payable in the following year. Without taking into consideration the short-term loan liabilities, the Group working capital is presented positive by € 2.344 k and the Company's is presented negative by € 521 k.

The Group and the Company needs regarding the Working Capital are expected to be cornered by cash flows from operating activities expected to inflow within the following periods, in line with the dividends that will be collected, estimated to amount to € 1.5 million, thus covering short-term liabilities.

Finally, two major shareholders of the parent company "NAMSOS ENTERPRISES COMPANY LIMITED" and "DRYNA ENTERPRISES COMPANY LIMITED", representing 28.48% in the share capital of each (total of 56.96%), although it is estimated that it will not be necessary, are committed to cover working capital subsequent needs for at least the next twelve months from the date of approval of the annual financial statements of 31/12/2015.

7. Capital management policies and procedures

The objectives of the Group in order to manage the capital are:

to ensure the ability of the Group to continue its activity (going-concern) and
to provide an adequate return to shareholders by pricing products according to the risk level.

Amounts in thousand Euro, unless otherwise mentioned

The Group monitors capital on the basis of the amount of equity, less cash and cash equivalents as reflected in the Statement of Financial Position. The capital for the years 2015 and 2014 is analyzed as follows:

	THE GROUP		THE COMPANY
Amounts in thousands in €	2015	2014	2015	2014
Total equity	83.579	81.328	66.747	61.882
Plus: Subordinated loans
Less: Cash and cash equivalents	(5.770)	(3.057)	(2.954)	(1.142)
Capital	77.809	78.271	63.793	60.740

Total equity	83.579	81.328	66.747	61.882
Plus: Loans	36.512	40.860	35.049	39.068
Total Capital	120.090	122.188	101.796	100.950

Capital to Total capital	6/10	6/10	6/10	6/10

A medium term objective of the Group regarding capital management, and to reverse the negative climate is to maintain the index at the same level.

The Group sets the amount of capital in relation to its overall capital structure, for example equity and financial liabilities. The Group manages its capital structure and makes adjustments at the time when the economic situation and the risk characteristics of existing assets change. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends, return capital to shareholders, issue equity or sell assets to reduce debt.

8. Post Balance Sheet Date events

Apart from the aforementioned, there are no other significant events as from 2015 closing till currently.

	Athens, March 30, 2016
PRESIDENT OF THE BOARD OF DIRECTORS	CHIEF EXECUTIVE OFFICER	FINANCIAL DIRECTOR
GEORGE GALANAKIS I.D. No Ξ 282324	ANASTASIOS HOMENIDIS I.D. No ΑΙ 506406	KOSTAS KYRIAKOS I.D. No ΑΖ 512473

Α' Class License 0010932

Amounts in thousand Euro, unless otherwise mentioned

Ε. Financial Data and Information

"LAMPSA GROUP S.A." Number in the Register of Societes Anonymes 06015/006/Β/86/0135, G.E.MI Number 223101000 Α1, Basileos Georgiou Str, 105 64, Athens Summary Financial Data and Information for the period from January 1, 2015 until December 31, 2015 Published based on Law 2190/1920, article 135 for enterprises issuing full year financial statements, consolidated or not, according to the IFRS The following data and information, resulting form the Financial Statements, aim at providing general information on the financial standing and the financial results of "LAMPSA GROUP S.A." We, therefore recommend the reader, before proceeding to any kind of investment or other transaction with the company, to consult the company's website where all periodical financial statements under IFRS as well as the auditors' report are presented.

Competent authority Company's website	Ministry of Economy , Competitiveness and Shipping http://www.lampsa.gr				(Amounts in € '000)	THE GROUP THE COMPANY
BoD composition	George Galanakis-President, Apostolos Doxiadis- Vice President, Anastastios Homenidis -Chief Executive Officer, Nikolaos D.Dandolos							01/01-31/12/2015 01/01-31/12/2014 01/01-31/12/2015 01/01-31/12/2014
	-Executive Member. ,Thomas Miller -Executive Member ,Athanasios Papadopoulos -Executive Member ,Philippos Spyropoulos - Executive member ,Chloe Laskaridi -Executive Member,Maurice Modiano -				Operating activities Profit before tax	1.548	(6.870)	5.212	1.843
Date of approv al of the financial statements	Executive Member March 30, 2016				Plus/less adjustments for: Depreciation
Certified Auditors		George Deligiannis (R.N. SOEL 15791)			Amortization of grants	4.935 -	4.650 (23)	2.558	2.533 (23)
'Audit Firm Type of auditor's audit report	Grant Thornton (R.N. SOEL 127) Unqualified Opinion-Emphasis of matter				Provisions Impairment of Investments- Impairment of Goodwill-Share of associate	131 301	211 5.913	179 -	(216) 2.326
				Profit/ (Loss) of asset sale and impairment	2.034	4.231	-	-
					Foreign exchange differences Interest expense	1.459 1.322	1.208 1.660	904 1.209	1.134 1.499
					Interest income Divided Income	(49) -	(53) -	(4) (1.535)	(2) (1.657)
					Operating profit before changes in
(Amounts in € '000)	THE GROUP		THE COMPANY		working capital Plus/ less adjustments for changes in working capital accounts	11.682	10.928	8.522	7.438
	31.12.2015	31.12.2014	31.12.2015	31.12.2014	or accounts related with operating activities:
ASSETS Own used fixed assets	114.812	118.984	72.406	72.484	Decrease / (increase) in inventories Decrease / (increase) in receivables	(237) 942	(10) (236)	(179) 834	(52) 21
Intangible assets					(Decrease) / increase in short term liabiliites	246	(32)	98	78
Other fixed assets	280 8.888	304 9.752	78 32.464	93 33.111	(except for banks) Minus:
Inventory	1.108	871	809	630	Interest expense and related expenses paid	(1.227)	(1.679)	(1.100)	(1.577)
Trade receivables	1.189	1.827	974	1.529	Taxes Paid Total inflows / (outflows) from operating	(100)	(430)	-
Other current assets	7.493	4.542	4.083	2.092	activities (a)	11.307	8.542	8.176	5.907
TOTAL ASSETS	133.770	136.280	110.814	109.939	Investing activities
CAPITAL & LIABILITIES					Purchase of tangible and intangible assets	(2.793)	(2.406)	(2.480)	(759)
Share capital Other shareholders' equity	23.928 55.994	23.928 54.020	23.928 42.819	23.928 37.955	Proceeds from disposal of tagible assets Interest income	- 49	2	- 4	- 2
Total shareholders' equity (a)	79.922	77.947	66.747	61.882	Debt payment collection		51	-	-
Minority rights (b)	3.332	3.380	-	-	Increase of share capital and amounts paid for capital increase of consolidated company and other assosiate companies	(500)	-	(500)
Total Equity (c)=(a)+(b)	83.254	81.328	66.747	61.882	Divideds received	-	-	1.535	1.657
Long term debt	31.067	35.605	29.938	34.145	Total inflows / (outflows) from investing activities (b)	(3.244) -	(2.353)	(1.441)	900
Provisions / Other long term liabilities	6.561	6.776	2.631	2.470	Financing activities
Short term debt Other short term liabilities	5.445 7.443	5.255 7.316	5.110 6.387	4.923 6.518	Outflow for long-term depoits Payments of loans	(84) (5.255)	(6.869)	- (4.923)	(6.869)
Total Liabilities (d)	50.516	54.952	44.067	48.056	Payments of obligations under finance leases	(11)	(209)	-	-
TOTAL CAPITAL & LIABILITIES ( c) + (d)	133.770	136.280	110.814	109.939	Total inflows / (outflows) from financing	(5.350)	(7.077)	(4.923)	(6.869)
					activities (c ) Net increase / (decrease) in cash and cash
					equivalents (a) + (b) + (c ) Cash and cash equivalents at the beginning of yaer	2.713 3.057	(889) 3.947	1.811 1.142	(62) 1.204
					Cash and cash equivalents at the year end	5.770	3.058	2.954	1.142
(Amounts in € '000)	THE GROUP 01/01-31/12/2015 01/01-31/12/2014		THE COMPANY 01/01-31/12/2015 01/01-31/12/2014			ADDITIONAL DATA AND INFORMATION
Total sales Gross Profit / Loss	51.522 19.055	48.693 17.082	41.443 16.448	38.651 14.240

EBIT Total Profit / (loss) before tax	6.811 1.548	6.068 (6.870)	6.005 5.212	5.308 1.843
Total profit / (loss) after tax (A) Shareholders of parent company	1.254 1.303	(4.925) (4.556)	4.695 4.695	3.519 3.519
Minority interests Other comprehensive income after tax (B)	(48) 672	(369) (747)	- 170	- (525)
Total comprehensive income after tax (A) + (B)
Shareholders of parent company Minority interests	1.926 1.975 (48)	(5.672) (5.303) (369)	4.865 4.865 -	2.993 2.993 -
Earnings after tax per share - basic (in €)	0,0610 € -	0,2133 €	0,2198 €	0,1647 €
Proposed divided			0,0000	0,0000
EBITDA	11.745	10.695	8.562	7.819
					(Amounts in € '000)		THE GROUP		THE COMPANY
(Amounts in € '000)	THE GROUP 31.12.2015	31.12.2014	THE COMPANY 31.12.2015	31.12.2014	Income Expenses		130 411		130 411
Equity at the beginning of the year					Receivables Liabilities		510 7 3		510 7 3
(01/01/2015 & 01/01/2014 respectively) Aggregate total income after tax	81.328 1.926	86.996 (5.672)	61.883 4.865	58.888 2.993	Transactions and fees of executives and members of Management Receivables to executives and members of Management		1426 -		1021 -
Change of capital from acquisition of subsidiary enterprise Equity at the year end (31/12/2015 & 31/12/2014 respectively	83.254	81.328	66.748	- 61.883	Liabilities to executives and members of Management From the transactions above, the transactions and the balances with subsidiary companies have been eliminated from the Group consolidated financial items. Among the subsidiary companies of the Group, there are receivables / liabilities arising from borrowing, totally amounting to € 2.718k, respective interest income/expenses, amounting to € 153k and exchange differences income/expenses/equity reserves, amounting to € 1,024 k, which have been eliminated under consolidation.		-		-

President of the BoD					Athens, March 30, 2016 Managing Director			Chief Financial Officer
George Galanakis					Anastasios Homenidis			Constantinos Kyriakos
ID No Ξ 282324					ID No AI 506406			ID No AZ 512473 - First Class Licence No 0010932

G. Annual Financial Statements publication website

The Company annual financial statements, the Independent Auditor's Report and the Report of the Board of Directors for FY ended as at December 31st, 2015, have been posted on the Company website www.lampsa.gr.

The aforementioned Financial Statements will remain at the disposal of the investors for at least five (5) years as starting from the date of their publication.

AI Terminal

Lampsa Hotel S.A.

2697_10-k_2016-04-04_3ec9c541-8134-4196-adb3-7e884a4f0638.pdf

LAMPSA HELLENIC HOTELS S.A.

ANNUAL FINANCIAL REPORT

Α. Representations of the Members of the Board of Directors

Β. Independent Auditor's Report

Report on the Company's and Consolidated Financial Statements

Management's Responsibility for the Financial Statements

Auditor's Responsibility

Opinion

Emphasis of matter

Report on Other Legal and Regulatory Requirements

C. Annual Report of the Board of Directors of the company «LAMPSA HELLENIC HOTELS S.A. » on the corporate and consolidated Financial Statements for the year January 1st to December 31st, 2015

Α. Financial developments and data on the course of the reporting year

Financial Information

Specifically for the Group's Hotels, the figures were as follows:

Value creation and performance measurement factors

Β. Significant Events

SIGNIFICANT EVENTS DURING THE FISCAL YEAR 2015

SIGNIFICANT EVENTS AFTER THE YEAR END

C. Risks and Uncertainties

Financial Risk Factors

Currency Risk

Credit Risk & Liquidity Risk.

Risk of Changes of Fair Value due to Changes in Interest Rates

D. Prospects & development for the new year

ANNUAL FINANCIAL REPORT

Ε. Related Parties Transactions

F. Dividend policy

Information under par. 7 and Explanatory Report according to par. 8 of article 4 of Law 3556/2007

Α) Capital Structure of the Company

Β) Restrictions on the transfer of Company Shares

C) Significant direct or indirect participations in the context of articles 9 - 11 of Law 3556/2007

D) Shareholders with special controlling rights

Ε) Restrictions on voting rights

F) Agreements between shareholders which entail restrictions on the transfer of shares or restrictions on voting rights

G) Guideline on the appointment and replacement of BoD members and on memorandum of association amendments

H) Authorities of the Company BoD or BoD members on the issuance of new shares or the repurchase of Company shares

I) Significant agreements which take effect, are altered or terminated in the event of a change in the control of the Company following a public tender offer

J) Agreements that the Company has made with BoD members or its staff, which involve compensation in case of resignation or termination of employment with no material cause as a result of the public tender offer.

CORPORATE SOCIAL RESPONSIBILITY GRAND BRETAGNE AND KING GEORGE HOTELS

The Environment:

ANNUAL FINANCIAL REPORT

The Society:

Our People:

CORPORATE GOVERNANCE CODE OF THE COMPANY «LAMPSA HELLENIC HOTELS S.A»

1. Introduction

GENERAL PRINCIPLES

1. Role and responsibilities BoD

2. Size and composition of the BoD and senior management

3. Duties and conduct of BoD members

4. Election- Operation of the BoD

5. System of Internal Audit

6. Level and structure of remuneration

7. The General Assembly of Shareholders

8. The General Assembly of Shareholders

Part A - The BoD and its members

1. Role and responsibilities of the BoD

2. B.o.D. size and composition

3. B.o.D. members duties and conduct

4. B.o.D. Election and Operation

5. B.o.D. Assessment

Part B- Internal Audit & Risk Management

1. Audit Committee

2. Internal control system

3. Risk management

Part C – Remuneration

Part D – Relations with shareholders

1. Communication with shareholders

2. General Meeting of shareholders

D. Annual Financial Statements

Amounts in thousand Euro, unless otherwise mentioned

Statement of Financial Position

Statement of Comprehensive Income

Statement of Changes in Equity

The Company

Statement of Cash Flows

Notes to the Financial Statements

1. General Information