Reds S.A.

Quarterly Report • Sep 24, 2015

REDS Real Estate Development & Services SA

Interim Summary Financial Statements according to IAS 34 for the 1 January to 31 March 2007 period

REDS REAL ESTATE DEVELOPMENT & SERVICES SA 39 AKAKION STR. & MONEMVASSIAS STR., MAROUSSI 15125 VAT no.: 094007180 ATHENS FAEE: TAX OFFICE PUBLIC COMPANIES REG. NO. 13564/06/B/86/123 – File no 340340

	Statement of changes in equity 5
	Cash flow statement6
	Notes to the financial statements 7
1	General information 7
2	Summary of significant accounting policies7
	2.1 Basis of preparation 7
3	Note on future events 7
4	Sector specific information8
5	Group Participations 9
6	Inventories 9
7	Receivables10
8	Suppliers 10
9	Loans 11
10	Other operating income / (expenses) 11
11	Existing obligations 11
12	Contingent liabilities 12
13	Profit per share12
14	Related-party transactions 13
15	Other notes14
16	Post balance sheet events15

Balance sheet

All amounts in Euro.

		THE GROUP		THE COMPANY
	Note	31-Μαρ-07	31-∆εκ-06	31-Μαρ-07	31-∆εκ-06
ASSETS
Non-current assets
Tangible assets		208.311	217.995	90.794	99.319
Intangible assets		34.026	37.077	33.843	36.894
Investments in property		112.214.148	107.451.874	35.211.956	35.268.810
Investments in subsidiaries		-	-	39.405.511	39.390.511
Investments in joint ventures		-	-	10.770	10.770
Deferred tax receivables		2.388.130	2.393.294	2.057.843	2.035.989
Advances for long-term Operating Leases	7	8.944.270	9.432.146	8.944.270	9.432.146
Other non-current receivables	7	80.994	77.028	80.994	77.028
		123.869.878	119.609.413	85.835.981	86.351.468
Current assets
Inventories	6	7.573.982	9.026.078	6.985.278	6.719.997
Trade debtors and other receivables	7	6.240.760	7.232.075	3.881.472	4.304.912
Investments		25	25	25	25
Cash and cash equivalents		26.621.155	23.353.827	2.742.614	2.435.689
		40.435.922	39.612.004	13.609.390	13.460.623
Total Assets		164.305.800	159.221.417	99.445.371	99.812.090
EQUITY CAPITAL
Equity capital attributed to shareholders
Share capital		51.889.447	51.889.447	51.889.447	51.889.447
Share premium reserve		95.973	95.973	95.973	95.973
Other reserves		6.389.865	6.391.107	814.742	814.742
Profit/(loss) carried forward		49.741.381	49.451.216	675.305	579.176
		108.116.666	107.827.743	53.475.467	53.379.338
Total equity		108.116.666	107.827.743	53.475.467	53.379.338
CREDITORS
Non-current liabilities
Staff compensation provisions		86.882	84.058	84.862	82.342
Other non-current liabilities	8	4.200.579	3.715.215	4.200.579	3.715.215
Other long-term provisions		18.326.836	18.326.836	18.326.836	18.326.836
		22.614.297	22.126.109	22.612.277	22.124.393
Current Liabilities
Suppliers and other liabilities	8	16.964.902	17.356.366	12.103.071	12.418.481
Current tax obligations (Income tax)		531.678	1.161.198	504.556	1.139.878
Short-term loans	9	16.078.257	10.750.000	10.750.000	10.750.000
		33.574.836	29.267.564	23.357.626	24.308.359
Total liabilities		56.189.134	51.393.674	45.969.904	46.432.753
Total equity and liabilities		164.305.800	159.221.417	99.445.371	99.812.090

Income statement

All amounts in Euro.

	THE GROUP		THE COMPANY
	31-Μαρ-07	31-Μαρ-06	31-Μαρ-07	31-Μαρ-06
Sales	3.477.794	2.414.227	1.460.158	1.713.743
Cost of sales	(2.442.361)	(1.810.743)	(838.969)	(1.185.996)
Gross Profit	1.035.433	603.485	621.189	527.747
Administration expenses	(799.248)	(584.498)	(449.664)	(330.071)
Other operating income / (expenses) (net) (note 10)	121.901	1.527.610	62.606	897.912
Operating results	358.085	1.546.596	234.131	1.095.588
Financial income (expenses) - net	7.537	(39.104)	(159.855)	(82.917)
Profit before tax	365.622	1.507.492	74.275	1.012.671
Income tax	(75.457)	(332.906)	21.854	(212.756)
Net profit for the period	290.165	1.174.586	96.129	799.915
Profit / (loss) per share - basic (€)	0,0073	0,0297	0,0024	0,0202

Statement of changes in equity

All amounts in Euro.

			THE GROUP
		Share premium		Results carried
	Share capital	reserve	Other reserves	forward	Total
January 1st 2006	67.337.451	5.641.410	6.327.916	26.487.485	105.794.262
Net profit for the period	-	-	-	1.174.586	1.174.586
March 31 2006	67.337.451	5.641.410	6.327.916	27.662.071	106.968.848
Share capital issue / increase	5.545.437	(5.545.437)	-	-	-
Share capital issue / (Reduction)	(20.993.440)			20.993.440	-
Net profit for the period	-	-	-	858.895	858.895
Carried to legal reserves	-	-	63.190	(63.190)	-
December 31 2006	51.889.448	95.973	6.391.107	49.451.216	107.827.743
Net profit for the period	-	-	-	290.165	290.165
FX differences	-	-	(1.242)	-	(1.242)
March 31 2007	51.889.448	95.973	6.389.865	49.741.381	108.116.666

THE COMPANY

		Share premium		Results carried
	Share capital	reserve	Other reserves	forward	Total
January 1st 2006	67.337.451	5.641.410	784.259	(21.184.620)	52.578.500
Net profit for the period				799.915	799.915
March 31 2006	67.337.451	5.641.410	784.259	(20.384.705)	53.378.415
Share capital issue / increase	5.545.437	(5.545.437)	-	-	-
Share capital issue / (Reduction)	(20.993.440)	-	-	20.993.440	-
Net profit for the period	-	-	-	923	923
Carried to legal reserves	-	-	30.483	(30.483)	-
December 31 2006	51.889.448	95.973	814.742	579.175	53.379.338
Net profit for the period	-	-	-	96.129	96.129
March 31 2007	51.889.448	95.973	814.742	675.305	53.475.468

Cash flow statement

All amounts in Euro.

	THE GROUP		THE COMPANY
	31-Μαρ-07	31-Μαρ-06	31-Μαρ-07	31-Μαρ-06
Operating Activities
Profit before tax	365.622	1.507.492	74.275	1.012.671
Plus/less adjustments for:
Depreciation	174.460	170.736	139.425	134.088
Provisions	2.824	1.895	2.520	1.895
Results (income, expenses, profits and loss) from investing activity	(177.649)	(49.488)	(4.817)	5.199
Debit interests and related expenses	170.112	88.593	164.673	88.116
Plus/less adjustments for differences in working capital balances or in balances related to operating activities:
Drop / (increase) in inventories	1.452.096	125.140	(265.282)	-
Decrease / (increase) in receivables	1.475.225	3.643.803	684.200	21.825
Drop / (increase) in liabilities (except banks)	92.658	(715.776)	169.953	(159.782)
Less:
Debit interest and similar paid charges	(170.112)	(88.593)	(164.673)	(88.116)
Taxes paid	(699.814)	(124.776)	(412.172)	(115.250)
Total inflows / (outflows) from operating activities (a)	2.685.422	4.559.025	388.103	900.647
Investing Activities Acquisition /disposal of subsidiaries, affiliates, joint ventures and other
investments		-	(15.000)	-
Purchase of tangible and intagible fixed assets	(4.923.999)	(75.805)	(70.995)	-
Interests collected Total inflows / (outflows) from investing activities (b)	177.649 (4.746.350)	49.488 (26.317)	4.817 (81.177)	(5.199) (5.199)
Financing Activities
Loans drawn (Νote 9)	5.328.257	-	-	-
Total financing activities inflow /(outflow) (c)	5.328.257	-	-	-
Net increase/(decrease) in cash and cash equivalents for the period (a)+(b)+(c)	3.267.329	4.532.709	306.925	895.448
Cash and cash equivalents at beginning of period	23.353.827	9.526.034	2.435.689	1.777.114
Cash and cash equivalents at end of period	26.621.155	14.058.743	2.742.614	2.672.562

Notes to the financial statements

1 General information

Company and Group operate in "Real estate management". The core activity is property development, sale or lease through operating leases. The Group operates in Greece and Romania.

The Company has been organised and is established in Greece, headquartered at 39 Akakion str., & Monemvassias str., Maroussi, Attica.

The company's shares are listed in the Athens Stock Exchange, in the "Real estate holding & Development" category.

REDS SA is fully consolidated in the financial statements of "ELLINIKI TECHNODOMIKI TEB A.E." which holds 50.83% of its share capital, and is registered in Greece.

These interim summary financial statements were approved by the Board of Directors on 24 May 2007.

2 Summary of significant accounting policies

2.1 Basis of preparation

These interim summary financial statements cover the period from 1 January 2007 until 31 March 2007 and have been prepared according to International Accounting Standard (IAS) 34 "Interim Financial Statements". Interim financial statements have been prepared according to those IFRS that had either been issued and were in force during preparation of these financial statements (May 2007), or had been issued and applied early.

The accounting principles used in the preparation of the interim summary financial statements are consistent with those used in the preparation of the financial statements for the year ended 31 December 2006.

In order to better and fully understand the interim summary financial statements, one needs to study them along with the annual financial statements for the year ended 31 December 2006, posted on the company's website (www.reds.gr).

These financial statements have been prepared under the historical cost principle, except that financial assets are carried at fair value, through profit and loss or available-for-sale, according to IFRS 39. Unrealised profit or loss resulting from changes in the fair value of investment property appear as fair value inventories in equity, until such assets are sold or designated as impaired. When sold or impaired, profit or loss shall be carried to the results. Impairment losses appearing in profit and loss are not reversible.

With regard to expenses incurred in non-regular intervals throughout the year, expenses provisions have been made, or expenses incurred entered in accounts, only in cases where this would have been advisable at year end.

3 Note on future events

Interim income statements, as well as the notes and reports that accompany them may include certain assumptions and calculations referring to future events with regard to operations, growth and financial performance of the Group. Despite the fact that such assumptions and calculations are based on the best possible knowledge of the Company's and Group's management, with regard to current conditions and activities, the actual results may eventually differ from those calculations and assumptions taken into consideration in the preparation of the Group's interim financial statements.

4 Sector specific information

On 31 March 2007, the Group is operating in 3 business sectors:

• Real estate development and sale
• Real property operation
• Real estate management and technical consultancy services

All amounts in Euro.

Results for each sector for Q1 until 31 March 2007, follow:

Consolidated sector-specific quarterly	Real Estate	Real estate
information for 01/01-31/03/2007	sales	expoitation	Services	Total
Sales (gross & net)	2.091.300	1.023.034	363.460	3.477.794
Gross profit/(loss) per sector	369.914	528.696	136.823	1.035.433
Administration expenses				(799.248)
Other operating income / (expenses) - net				121.901
Operating profit				358.085
Financial income (expenses) - net				7.537
Profit before tax				365.622
Income tax				(75.457)
Net Profit				290.165

Results for each sector for Q1 until 31 March 2006, follow:

Consolidated sector-specific quarterly	Real Estate	Real estate
information for 01/01-31/03/2006	sales	expoitation	Services	Total
Sales (gross & net)	906.285	1.006.483	501.460	2.414.227
Gross profit/(loss) per sector	172.344	513.394	(82.254)	603.485
Administration expenses				(584.498)
Other operating income / (expenses) - net				1.527.610
Operating profit				1.546.596
Financial income (expenses) - net				(39.104)
Profit before tax				1.507.492
Income tax				(332.906)
Net Profit				1.174.586

5 Group Participations

All Company participations are included in the consolidated financial statements.

Group Companies consolidated with the full consolidation method are the following:

COMPANY	Reg. Office	particip. %
KANTZA COMMERCIAL S.A.	GREECE	100%
YIALOU COMMERCIAL & TOURIST S.A.	GREECE	100%
PMS. PARKING SYSTEMS S.A.	GREECE	100%
LOFOS PALLINI S.A.	GREECE	67%
KARTEREDA HOLDINGS LIMITED	CYPRUS	100%
CLH ESTATE S.R.L.	ROMANIA	100% indirectly

The Company has recognised a provision to cover the obligation to acquire from OTE, 33% of shares held in "LOFOS PALLINI SA", against a minimum consideration, as set forth in the relevant Contract dated 28/02/2002. The amount of the provision rises to €18.3 million and has increased REDS's investment cost in said subsidiary, and as a result, same subsidiary is consolidated at 100%.

The following participation is included in the consolidated financial statements, with the Proportional Consolidation method.

COMPANY	REG. OFFICE GREECE	particip. %
3G ANAPTIXEOS KATASKEVASTIKON POLEODOMIKON & TOURISTIKON ERGON S.A.		50%

6 Inventories

All amounts in Euro.

	THE GRO UP		THE C O MPANY
	31-Μ αρ-07	31-∆εκ-06	31-Μ αρ-07	31-∆εκ-06
Finished products	3.366.217	5.083.595	2.777.514	2.777.514
Semi-finished products	4.207.764	3.942.483	4.207.764	3.942.483
Total net realisable value	7.573.982	9.026.078	6.985.278	6.719.997

Inventories concern plots for sale and houses completed and under construction.

7 Receivables

All amounts in Euro.

	THE GROUP		THE COMPANY
	31-Μαρ-07	31-∆εκ-06	31-Μαρ-07	31-∆εκ-06
Trade debtors	2.915.263	4.544.542	642.973	1.308.417
	2.915.263	4.544.542	642.973	1.308.417
Income Tax advance payment	145.063	432.706	54.399	277.550
Advances for operating leases	9.334.571	9.822.447	9.334.571	9.822.447
Other receivables	2.501.382	1.565.925	1.198.730	944.506
Receivables from associates	369.745	375.629	1.676.063	1.461.166
Total	15.266.024	16.741.249	12.906.736	13.814.086
Receivables from long-term Operating Leases	8.944.270	9.432.146	8.944.270	9.432.146
Other non-current receivables	80.994	77.028	80.994	77.028
Total non-current assets	9.025.264	9.509.174	9.025.264	9.509.174
Total Current Assets	6.240.760	7.232.075	3.881.472	4.304.912
	15.266.024	16.741.249	12.906.736	13.814.086

8 Suppliers

All amounts in Euro.

	THE GRO UP		THE C O MPANY
	31-Μ αρ-07	31-∆εκ-06	31-Μ αρ-07	31-∆εκ-06
Suppliers	234.073	269.438	217.114	253.381
Accrued expenses	-	59.764	-	59.764
Insurance organisations and other taxes/ duties	671.123	344.308	663.543	322.670
Advances for operating leases	3.944.466	3.741.931	3.944.466	3.741.931
Other liabilities	10.038.532	9.990.408	5.212.975	5.095.767
Liabilities from associates	6.277.287	6.665.733	6.265.552	6.660.184
Total	21.165.481	21.071.581	16.303.650	16.133.697
Non-current	4.200.579	3.715.215	4.200.579	3.715.215
Current	16.964.902	17.356.366	12.103.071	12.418.481
Total	21.165.481	21.071.581	16.303.650	16.133.697

9 Loans

		THE GRO UP
Short-term loans	31-Μ αρ-07	31-∆εκ-06
Bank loans	16.078.257	10.750.000
Total short-term loans	16.078.257	10.750.000

	THE C O MPANY
Short-term loans	31-Μ αρ-07	31-∆εκ-06
Bank loans	10.750.000	10.750.000
Total short-term loans	10.750.000	10.750.000

10 Other operating income / (expenses)

The "Other operating income / (expenses)" account of the period's Consolidated Income Statement, includes the amount of €121 thousand that contains income of €99.8 thousand from the expropriation of a property belonging to subsidiary "KANTZA COMMERCIAL S.A." collected in the year, pursuant to FEK 864∆/1995.

11 Existing obligations

All amounts in Euro.

The following amounts concern parent Company commitments for operating leases. The other Group companies have no obligations:

	THE C O MPANY
	31-Μ αρ-07	31-∆εκ-06
Up to 1 year	498.019	584.784
1 to -5 years	2.805.329	3.294.091
Over 5 years	20.432.832	22.034.056
	23.736.180	25.912.931

On 17/5/2007 the Company signed an amendment to the lease agreement of a plot in Ilion, Attica, where the company has constructed the Commercial and Entertainment Centre "Escape Centre".

With this amendment, the company obtained the right to unilaterally extend the lease for another 20 years, namely until 11/02/2052.

12 Contingent liabilities

The Group's contingent liabilities pertain to bank and other guarantees and other matters arising in the ordinary course of business. Contingent liabilities are not expected to generate material charges

The Group's companies have no disputes under litigation or arbitration, nor are there any court or arbitration decisions that are likely to have a significant impact on the Group's companies' financial condition, except the pending court dispute between the "LOFOS PALLINI S.A." subsidiary and the City of Pallini before the State Council and the Athens Administrative Court of First Instance, regarding the amount payable as special contribution under Law 2947/2001, which, according to the City, rises to approx. €750,000. No provision has been made for this eventual obligation, as the Company's Management feels that the final outcome will be positive for the Company.

The competent Tax Authorities have not audited the tax returns for the years detailed below, and as a consequence, additional taxes and charges may be imposed after the audit and finalisation thereof. It is currently not possible to foresee the outcome of said Tax Audit, and therefore the financial statements do not include any relevant provisions.

COMPANY	Closing years	Closing Manner	Unaudited years
REDS S.A.	2005	Ordinary Tax Audit	1
PMS. PARKING SYSTEMS S.A.	2002	Pursuant to Law3259/2004	4
LOFOS PALLINI S.A.	-	-	5
KANTZA COMMERCIAL S.A.	1998	Pursuant to Law3148/2003	8
YIALOU COMMERCIAL & TOURIST S.A.	-	-	5
3G S.A.	2002	Pursuant to Law3259/2004	4

13 Profit per share

Basic earnings per share are calculated by dividing the net profit attributable to the parent company's shareholders by the weighted average number of ordinary shares outstanding during the period, excluding owe common shares held by subsidiaries (own shares). In case the number of shares has increased due to the issue of free shares, the new number shall apply to comparatives as well.

The Company has no dilutive potential ordinary shares. Therefore the diluted earnings per share is the same as the basic earnings per share.

	THE GRO UP		THE C O MPANY
	31-Μ αρ-07	31-Μ αρ-06	31-Μ αρ-07	31-Μ αρ-06
Profit corresponding to shareholders (in €)	290.165	1.174.586	96.129	799.915
Weighted average number of common shares	39.610.265	39.610.265	39.610.265	39.610.265
Profit/(loss) after tax per share - basic (in €)	0,0073	0,0297	0,0024	0,0202

14 Related-party transactions

Related-party transactions are:

Sales / Purchases of goods and services	THE GRO UP		THE C O MPANY
	01/01- 31/3/2007	01/01- 31/3/2006	01/01- 31/3/2007	01/01- 31/3/2006
Sales of goods & services to the parent company	-	-	-	-
Sales of goods & services to subsidiaries	-	-	157.739	243.300
Sales of goods & services to other associates	27.789	11.404	27.789	11.404
Purchases of goods & services from the parent company	44.738	45.892	44.738	45.833
Purchases of goods & services from subsidiaries		-	-	-
Purchases of goods & services from other associates	242.420	13.151	242.420	13.151
Receivables / Liabilities of Associates	THE GRO UP		THE C O MPANY
	31-Μ αρ-07	31-∆εκ-06	31-Μ αρ-07	31-∆εκ-06
Receivables from the parent company	-	-	-	-
Receivables from subsidiaries	-	-	1.321.818	1.134.109
Receivables from other associates	354.245	327.057	354.245	327.057
Liabilities to the parent company	67.651	19.544	67.651	19.544
Liabilities to subsidiaries	-	-	-	-
Liabilities to other associates	6.196.123	6.638.948	6.196.123	6.638.948
Officers' & Directors' transactions	THE GRO UP			THE C O MPANY
	01/01-	01/01-	01/01-	01/01-
	31/3/2007	31/3/2006	31/3/2007	31/3/2006
Officers' & Directors' transactions & fees	157.837	104.514	139.028	85.705
Receivables from officers and directors	1.277.289	1.275.789	-	-
Liabilities to officers and directors	4.627	4.375	-	-

15 Other notes

• On 31.03.2007 Group employed 27 staff and Company 26, whereas on 31.03.2006, Group employed 26 staff and Company 24.
• There are no encumbrances on the company's real property.
• On 28/07/2005, "REDS SA" signed an agreement with "LA SOCIETE GENERALE IMMOBILIERE ESPAGNE (LSGIE)", to sell 100% of the shares in subsidiary "KANTZA COMMERCIAL SA", at a total price of € 70 million. The transaction is expected to be completed at around the end of 2009 and is subject to the acquisition of the neighbouring property from "KANTZA PROPERTY DEVELOPMENT, MANAGEMENT & OPERATION S.A", and to obtaining all building licenses and approvals for the entire property in Kantza, Pallini.
• On 20/6/2006 a draft contract was signed for the sale of part of the property belonging to "YIALOU COMMERCIAL & TOURIST S.A." at the Gyalou Spata location, for a consideration of €13.4 mil. with MACARTHURGLEN HELLAS LTD. The final sale contract is subject to the issuing of the building license. The company will not recognise any income until the transaction is finalised.
• The value of the property belonging to subsidiary "YALOU COMMERCIAL & TOURIST S.A." was reassessed due to the introduction into the town plan of approx. 133,000 sq.m., by virtue of Government Gazette (FEK) issue 319/D/2005, approving the town planning design of the "Yalou Business Park – Spata". The above subsidiary company's total property of approx. 173,000 sq.m. appears in these Consolidated Financial Statements under "Investment assets", based on IAS 40, to the amount of €32.5 mil., and in April 2007 was reassessed at €41.9 mil.
• In February 2007, "CLH ESTATE S.R.L." purchased a plot of approx. 8,500 sq.m. in Baneassa location, Bucharest, Romania, where it intends to build a deluxe residential complex, with a total budget of approx €15 mil.
• Pursuing its operations in Romania's real estate market, in April 2007, the Company purchased a plot of 6,000 sq.m. at the Spaiul Unirii location, in downtown Bucharest, through its associate "Profit Construct SA". The plot will be used for the construction of a residential and business complex, with a total budget of approx €45 mil.

16 Post balance sheet events

There are no events after the Financial Statements date that concern either the Group or the Company, that need to be mentioned according to the IFRS.

Athens, 24 May 2007

CHAIRMAN OF THE BOARD MANAGING DIRECTOR GENERAL MANAGER & MEMBER OF THE BOARD FINANCIAL MANAGER DIMITRIOS KOUTRAS ANASTASSIOS IOANNIS MORAITIS CRISTOS

KALLITSANTSIS

ADAMOPOULOS