Folli Follie S.A.

Annual / Quarterly Financial Statement • Oct 5, 2015

Registered Office:	23rd Km Athens - Lamia National Road - Ag. Stefanos
Opening Date of Current Year:	1 January 2006
Closing Date of Current Year:	31 December 2006
Auditing Company:	BAKER TILLY HELLAS SA
Certified Auditor Accountant:	Varthalitis Georgios
Type of Auditors' Report:	Unqualified Opinion
Date of Approval	22/8/2006

	THE GROUP
	1/1-30/6/2006	1/1-30/6/2005	1/1-30/6/2006	1/1-30/6/2005		THE GROUP		THE COMPANY
Cash Flows related to Operating Activities					ASSETS	30/6/2006	31/12/2005	30/6/2006	31/12/2005
Net Profit before taxes	50,602,573.18	36,740,146.91	21,694,448.96		15,424,131.82 Tangible Assets	59,503,562.22	29,269,571.73	16,854,772.37	17,175,960.39
Adjustments in respect of non-cash transactions:					Investments in PPE	15,380,000.00	15,380,000.00	15,380,000.00	15,380,000.00
Depreciation and Amortisation	2,474,695.71	1,830,737.72	520,652.94		527,145.17 Intangible Assets	261,778,806.28	4,185,089.70	695,666.03	750,442.44
Provisions	661,205.00	757,489.83	111,000.00		114,493.02 Investments in associates	0.00		40,395,445.88 365,192,686.75 159,505,501.95
Cash flows from investing activities	-4,610,479.77	-4,172,783.30	-21,405,770.16		-9,710,118.42 Deferred income tax assets	2,977,830.75	2,660,750.50	508,420.93	703,225.42
Debit interest and similar expenses	2,724,909.11	2,281,622.20	3,464,715.72		2,321,542.57 Other long term receivables	9,387,309.90	6,838,204.67	286,071.52	419,574.43
Other non-cash expense/income					-224,129.15 Total non-current assets (a)	349,027,509.15		98,729,062.48 398,917,617.60 193,934,704.63
Operating profit before adjustments of working capital	51,852,903.23	37,437,213.36	4,385,047.46	8,453,065.01 Inventories		133,485,385.97	71,758,888.21	14,025,142.19	14,134,365.54
Decrease/(increase) of Inventories	-8,358,655.20	-9,464,724.89	109,223.35		-868,645.33 Trade Receivables		123,164,323.95 121,290,148.36	18,169,538.86	18,872,475.88
Decrease/(increase) of Receivables	-15,571,848.03	-12,740,838.65	519,067.23		-7,921,678.81 Other Receivables	26,664,570.09	6,199,578.58	2,438,219.89	2,395,951.33
Increase/(decrease) of payable accounts (except Banks)	-9,590,274.78	-593,943.59	-2,037,902.58		7,869.61 Other financial assets at fair value through profit or loss	3,088,708.48	2,921,508.63	1,371,254.78	2,921,508.63
Interest paid and similar expenses	-3,801,784.35	-2,549,139.54	-3,832,005.54		-2,458,058.98 Cash and cash equivalents	87,474,041.90	33,892,169.63	31,908,063.43	13,247,662.22
Income Tax paid	-19,224,675.86	-2,084,719.72	-858,725.86		-426,032.16 Total current assets (b)		373,877,030.39 236,062,293.41	67,912,219.15	51,571,963.60
Net cash inflows/(outflows) from Operating Activities	-4,694,334.99	10,003,846.97	-1,715,295.94		-3,213,480.66 TOTAL ASSETS (a) + (b)		722,904,539.54 334,791,355.89 466,829,836.75 245,506,668.23
Cash Flows related to Investing Activities					LIABILITIES
					Non-current liabilities
Purchases of subsidiaries, associates and other investments	-202,989,646.90	0.00	-205,798,632.91		Long-term borrowings		328,797,729.49 125,149,592.17 322,287,143.31 119,499,958.91
Purchases of tangible and intangible assets	-1,292,540.51	-7,798,485.19	-158,244.89		-77,916.34 Retirement benefit obligations	7,938,772.87	3,356,944.74	560,083.98	540,126.00
Proceeds from sale of tangible and intangible assets	113,428.56	37,875.81	18,227.36		9,826.75 Deferred income tax liabilities	14,923,991.28	1,047,943.78	1,097,721.63	1,035,080.14
Proceeds from sale of financial assets	1,961,153.98	722,403.84	1,961,153.98		722,403.84 Provisions for other liabilities and charges	4,961,273.34	4,054,878.43	777,317.11	698,272.82
Dividends received	0.00	9,152,004.96	20,987,836.25		9,712,939.00 Total non-current liabilities		356,621,766.98 133,609,359.12 324,722,266.03 121,773,437.87
					Current liabilities
Interest received	1,076,875.24	267,517.34	167,289.82		136,516.41 Trade payables	43,399,303.77	15,829,100.60	1,383,372.18	3,487,817.55
Decrease/(increase) of other long-term receivables	-288,507.00	-320,527.39	133,502.91		-28,805.97 Short-term Borrowings	6,972,066.39	5,047,457.92	6,303,331.36	4,863,495.62
Net cash inflows/(outflows) from Investing Activities	-201,419,236.63	2,060,789.37	-182,688,867.48		10,474,963.69 Other current liabilities	40,980,064.52	18,332,977.03	14,098,755.35	6,052,479.60
Cash Flows related to Financing Activities					Total current liabilities	91,351,434.68	39,209,535.55	21,785,458.89	14,403,792.77
Cash received from issue of share capital					Total Liabilities (a)		447,973,201.66 172,818,894.67 346,507,724.92 136,177,230.64
Proceeds from Loans	206,103,807.00	5,762,009.14	204,427,020.14		0.00 EQUITY
Repayment of Loans		-1,015,864.05	0.00	-1,164,305.72 Share capital		9,884,062.50	9,884,062.50	9,884,062.50	9,884,062.50
Payments for leases	-315,046.94	-296,971.80	-61,773.91		-61,823.91 Share premium	62,531,731.47	62,531,731.47	62,531,731.47	62,531,731.47
Dividends paid	-22,921,236.99	-3,696,058.08	-1,300,681.60		-2,700,008.28 Other reserves	35,230,254.32	24,513,525.66	20,075,581.21	19,679,018.84
Net cash inflows/(outflows) from Financing Activities	182,867,523.07	753,115.21	203,064,564.63		-3,926,137.91 Retained earnings		184,891,510.85 161,106,539.24	27,830,736.65	17,234,624.78
Net increase/(decrease) in cash and cash equivalents	-23,246,048.55	12,817,751.55	18,660,401.21		3,335,345.12 Exchange differences		-25,708,936.42 -12,980,009.96
Cash and cash equivalents at the beginning of the period	112,040,529.80	33,723,558.93	13,247,662.22		14,509,511.69 Other capital and reserves attributable to equity holders of the Company		-88,927,927.73 -88,927,927.73
Exchange rate differences from the conversion of cash equivalents	-1,320,439.35	-1,519,857.11			Total capital and reserves attributable
Cash and cash equivalents at the end of the period	87,474,041.90	45,021,453.37	31,908,063.43		17,844,856.81 to equity holders of the Company (b)		177,900,694.99 156,127,921.18 120,322,111.83 109,329,437.59
					Minority interest (c)	97,030,642.89	5,844,540.04
					Total Equity (d) = (b)+(c)		274,931,337.88 161,972,461.22 120,322,111.83 109,329,437.59
ADDITIONAL RECORDS AND INFORMATION					TOTAL EQUITY AND LIABILITIES (e) = (a)+(d)		722,904,539.54 334,791,355.89 466,829,836.75 245,506,668.23
1. The same Accounting Policies have been followed as for the Balance Sheet at 31.12.2005. The Group applies the IFRS from 1 January 2005.					DATA FROM INCOME STATEMENT FOR THE YEAR ( Amounts reported in Euro )
2. There are no real liens on non-current assets or property.						THE GROUP		THE COMPANY

						Total Equity (d) = (b)+(c)		274,931,337.88 161,972,461.22 120,322,111.83 109,329,437.59
ADDITIONAL RECORDS AND INFORMATION						TOTAL EQUITY AND LIABILITIES (e) = (a)+(d)		722,904,539.54 334,791,355.89 466,829,836.75 245,506,668.23
1. The same Accounting Policies have been followed as for the Balance Sheet at 31.12.2005. The Group applies the IFRS from 1 January 2005.						DATA FROM INCOME STATEMENT FOR THE YEAR ( Amounts reported in Euro )
2. There are no real liens on non-current assets or property.							THE GROUP		THE COMPANY		THE GROUP		THE COMPANY
3. There are no disputed or under arbitration cases of national or administrative courts that may have a material effect on the financial position of the Company.							1/1-30/6/2006	1/1-30/6/2005	1/1-30/6/2006	1/1-30/6/2005	1/4-30/6/2006	1/4-30/6/2005	1/4-30/6/2006	1/4-30/6/2005
4. The personnel employed in the Group, as at 30.06.2006, amounted to 2.395 and in the Company to 292 persons. 5. Mother Company and Subsidiaries transactions and FF Group of Companies and other related parties transactions as set out in IAS 24 , for period 01/01/2006 to 30/06/2006 : a)Between Mother Company and Subsidiaries (Amount in Thousand Euro) sales : 4.662 / Acquisitions : 37 & Receivables : 8.864 / Payables : 127			Sales Revenue		167,278,969.85 100,764,368.78	17,108,821.45	19,169,098.90	105,428,203.28	47,433,632.87	6,938,487.04	7,543,963.54
			Cost of goods sold		-73,263,844.06 -38,240,224.00	-5,351,175.92	-6,210,905.02		-49,063,434.97 -16,937,349.46	-2,068,876.57	-2,396,626.30
			Gross profit	94,015,125.79	62,524,144.78	11,757,645.53	12,958,193.88	56,364,768.31	30,496,283.41	4,869,610.47	5,147,337.24
b)Between FF Group and other related parties as set out in IAS 24 sales : 547 / Acquisitions : 47 & Receivables : 0 / Payables : 480 .						Other operating income	6,538,651.97	2,183,278.04	950,133.81	1,866,041.87	5,760,227.51	787,930.69	506,368.41	846,331.08
6.Purchases of tangible and intangible assets for the period 1/1-30/06/2006 (Amount in Thousand Euro) : a)Group € 2.699 b)Company € 454						Administrative expenses	-8,683,336.00	-5,399,320.35	-2,605,031.49	-2,103,723.85	-5,599,373.44	-2,474,314.39	-1,403,869.58	-1,122,146.35
7. For the un-audited tax years of the parent company and its subsidiaries where the possibility exists for tax audit differences to arise it has been performed a relative provision. 8.In the consolidated financial statements are included the following companies:			Selling and marketing costs		-42,195,566.84 -24,345,052.27	-5,883,894.51	-5,084,730.84		-27,310,050.80 -13,502,995.54	-3,219,948.66	-2,937,554.36
			Other expenses	-938,303.46	-656,580.74	-499,029.00	-39,218.58	-568,036.38	-363,289.54	-344,461.44	-16,871.36
						Operating profit	48,736,571.46	34,306,469.46	3,719,824.34	7,596,562.48	28,647,535.20	14,943,614.63	407,699.20	1,917,096.25
						Finance costs - profit	1,491,212.01	1,156,215.64	581,626.59	577,770.26	931,625.56	753,202.35	57,086.61	182,547.66
						Finance costs - expenses	-3,801,784.35	-2,549,139.54	-3,594,838.22	-2,421,839.96	-2,418,058.33	-1,378,841.00	-2,314,824.22	-1,310,896.04
						Share of profit of associates	4,176,574.06	3,826,601.35	20,987,836.25	9,671,639.04	2,817,073.61	2,587,452.03	20,987,836.25	9,671,639.04
						Profit before taxes (EBT)	50,602,573.18	36,740,146.91	21,694,448.96	15,424,131.82	29,978,176.04	16,905,428.01	19,137,797.84	10,460,386.91
						Income tax expense	-11,402,659.54	-7,602,948.24	-1,776,601.61	-1,923,081.42	-7,331,971.84	-3,423,853.54	-922,700.48	-250,883.90
	REGISTERED	%	RELATION			UN-AUDITED Profit for the period (after taxes)	39,199,913.64	29,137,198.67	19,917,847.35	13,501,050.40	22,646,204.20	13,481,574.47	18,215,097.36	10,209,503.01
COMPANY	OFFICE	PARTICIPATION	THAT COMMANDED	CONSOLIDATION METHOD	TAX	Attributable to:	0.00
			THE CONSOLIDATION		YEARS	Equity holders of the Company	34,331,997.86	29,453,471.26			17,779,888.42	13,813,613.98
FOLLI FOLLIE A.B.E.E.	ATHENS	-			2005	Minority interest	-4,867,915.78	-316,272.59			-4,869,515.78	-332,039.51
FOLLI FOLLIE HONG KONG LTD	HONG KONG	99.99%	Direct	Full	1999-2005	Earnings (after taxes) per share - basic (expressed in €)	1.04	0.89	0.60	0.41	0.54	0.42	0.55	0.31
FOLLI FOLLIE UK LTD	LONDON	99.99%	Direct	Full	2004-2005	Amortisation - Depreciation	2,474,695.17	1,830,737.72	520,652.94	527,145.17	1,581,295.32	988,717.63	269,724.36	261,516.50
FOLLI FOLLIE FRANCE SA	PARIS	99.94%	Direct	Full	2003-2005	Earnings (profit) before taxes, financing and investing results
FOLLI FOLLIE SPAIN SA	MADRID	100%	Direct	Full	2002-2005	and depreciation - amortisation (EBITDA)	51,211,266.63	36,137,207.18	4,240,477.28	8,123,707.65	30,228,830.52	15,932,332.26	677,423.56	2,178,612.75
FOLLI FOLLIE CZECH SRO	PRAGUE	100%	Direct	Full	2001-2005	Earnings (profit) before taxes, financing and investing results (EBIT)	48,736,571.46	34,306,469.46	3,719,824.34	7,596,562.48	28,647,535.20	14,943,614.63	407,699.20	1,917,096.25
FOLLI FOLLIE POLAND SZOO	WARSAW	100%	Direct	Full	2001-2005
FOLLI FOLLIE SLOVAKIA SRO	BRATISLAVA	100%	Direct	Full	2001-2005	DATA FROM STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ( Amounts reported inEuro )

COMPANY	REGISTERED OFFICE	% PARTICIPATION	THAT COMMANDED	CONSOLIDATION METHOD	TAX	Attributable to:	0.00
			THE CONSOLIDATION		YEARS	Equity holders of the Company	34,331,997.86	29,453,471.26
FOLLI FOLLIE A.B.E.E.	ATHENS	-			2005	Minority interest	-4,867,915.78	-316,272.59
FOLLI FOLLIE HONG KONG LTD	HONG KONG	99.99%	Direct	Full	1999-2005	Earnings (after taxes) per share - basic (expressed in €)	1.04	0.89	0.60	0.41
FOLLI FOLLIE UK LTD	LONDON	99.99%	Direct	Full	2004-2005	Amortisation - Depreciation	2,474,695.17	1,830,737.72	520,652.94	527,145.17
FOLLI FOLLIE FRANCE SA	PARIS	99.94%	Direct	Full	2003-2005	Earnings (profit) before taxes, financing and investing results
FOLLI FOLLIE SPAIN SA	MADRID	100%	Direct	Full	2002-2005	and depreciation - amortisation (EBITDA)	51,211,266.63	36,137,207.18	4,240,477.28	8,123,707.65
FOLLI FOLLIE CZECH SRO	PRAGUE	100%	Direct	Full	2001-2005	Earnings (profit) before taxes, financing and investing results (EBIT)	48,736,571.46	34,306,469.46	3,719,824.34	7,596,562.48
FOLLI FOLLIE POLAND SZOO	WARSAW	100%	Direct	Full	2001-2005
FOLLI FOLLIE SLOVAKIA SRO	BRATISLAVA	100%	Direct	Full	2001-2005	DATA FROM STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ( Amounts reported inEuro )
FOLLI FOLLIE GERMANY Gmbh	TRAOUNSTAIN	100%	Direct	Full	2005		THE GROUP		THE COMPANY
MFK FASHION LTD	NICOSIA	100%	Direct	Full	2002-2005		30/6/2006	30/6/2005	30/6/2006	30/6/2005
PLANACO SA	ATHENS	76.67%	Direct	Full	2003-2005	Net equity of period Open.Balance (1/1/2005 and 1/1/2004 respectively)	161,972,461.22		95,908,062.29 109,329,437.59 101,349,048.11
HELLENIC DUTY FREE SHOPS	ATHENS	49.36%	Direct	Full	2005	Issue of share capital		0.00		0.00
FOLLI FOLLIE JAPAN LTD	TOKYO	40%	Direct	Full	2001-2005	Dividends	-8,845,951.25	-8,697,492.50	-8,566,187.50	-7,248,312.50
FOLLI FOLLIE ASIA LTD	HONG KONG	99.99%	Indirect	Full	2001-2005	Directors Fees	-313,514.50	-326,541.80	-250,000.00	-200,000.00
FOLLI FOLLIE TAIWAN LTD	TAIPEI	99.99%	Indirect	Full	2004-2005	Minority interest (Due to :New Subsidiaries / Increase of participation )	86,318,066.26
FOLLI FOLLIE KOREA LTD	SEOUL	99.99%	Indirect	Full	2003-2005	Net amounts effected directly Equity(Due to:New Subsidiaries/Increase of participation )	9,438,947.00
FOLLI FOLLIE SINGAPORE LTD	SINGAPORE	99.99%	Indirect	Full	2004-2005	Profit for the period, after taxes	39,199,913.64	29,137,198.67	19,917,847.35	13,501,050.40
BLUEFOL GUAM LTD	GUAM	99.99%	Indirect	Full	1999-2005	Adjustment in foreign currency translation differences	-12,729,598.88	15,289,696.15	0.00	0.00
BLUEFOL HAWAII LTD	HAWAII	99.99%	Indirect	Full	2000-2005	Own Stock	-108,985.61	0.00	-108,985.61	0.00
BLUEFOL HONG KONG LTD	HONG KONG	99.99%	Indirect	Full	2001-2005	Net equity of period Closing Balance			274,931,337.88 131,310,922.81 120,322,111.83 107,401,786.01
FOLLI FOLLIE MALAYSIA LTD	KUALA LUMPUR	99.99%	Indirect	Full	2004-2005
BLUEFOL THAILAND LTD	BANGKOK	99.99%	Indirect	Full	2001-2005

"FOLLI - FOLLIE" SA

Companies Registar No. 18989/06/B/89/17

INTERIM FINANCIAL STATEMENTS FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2006

THE GROUP		THE COMPANY

CASH FLOW STATEMENT (Amounts reported in Euro) BALANCE SHEET (Amounts reported in Euro) posted the Interim Financial Statements prepared according to the International Financial Reporting Standards accompanied with the Review Report of the Certified Auditor Accountant where it is necessary.

The following data and information aim to provide a general briefing for the financial position and the results of operations of "FOLLI - FOLLIE" A.E. Therefore, it is recommended, to any reader, before proceeding to any kind of investment decision or other transaction with the Company, to visit the Company's web site, at the address www.follifollie.com where are