ASSA ABLOY

Interim / Quarterly Report • Oct 4, 2019

AS COMPANY S.A. GROUP OF COMPANIES

INTERIM FINANCIAL REPORT of the period from 1 January 2019 to 30 June 2019

According to article 5 of Law 3556/2007

GEMH No. : 57546304000 ΑΜΑΕ : 22949/06/Β/90/107 HQ : Municipality of Oreokastro, Thessaloniki

CONTENTS

Ι.	STATEMENTS OF MEMBERS OF THE BOARD OF DIRECTORS 3
ΙΙ.	INTERIM REPORT OF THE BOARD OF DIRECTORS (SEPARATE AND
	CONSOLIDATED) FOR THE FINANCIAL PERIOD FROM 1 JANUARY 2019 TO 30
	JUNE 2019 4
Α.	INTERIM STATEMENT OF FINANCIAL POSITION 17
Β.	INTERIM PROFIT AND LOSS ACCOUNT FOR THE PERIOD 01.01.2019 –
	30.06.2019 18
C.	INTERIM STATEMENT OF CHANGES OF EQUITY 19
D.	INTERIM CASH FLOW STATEMENT 20
Ε.	NOTES TO THE SEPARATE AND CONSOLIDATED INTERIM FINANCIAL
	STATEMENTS 21
1.	General Information 21
2.	Basis of preparation of the Financial Statements 21
3.	Significant Accounting Principles and Methods 22
4.	Important Accounting Principles and Methods 27
5.	Other Information 27
5.1	Consolidated Financial Statements 27
5.2	Seasonality of activities 27
6.	Operating Segments 27
7.	Other Explanatory Information 28
7.1	Property, plant and equipment 28
7.2	Participations in subsidiaries 29
7.3	Inventories 29
7.4	Accounts receivables 29
7.5	Investments at fair value through P&L 30
7.6	Cash and cash equivalents 31
7.7	Share capital 31
7.8	Turnover 31
7.9	Administrative expenses 32
7.10	Distribution expenses 32
7.11	Research and development expenses 32
7.12	Taxes 33
8.	Commitments and contingent liabilities 33
9.	Earnings per share 34
10.	Subsequent events after the date of the Financial Position 34

Ι. STATEMENTS OF MEMBERS OF THE BOARD OF DIRECTORS

(in accordance with article 5, paragraph 2 of Law 3556/2007)

We, the members of the Board of Directors of "AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.":

• 1. Efstratios Andreadis Konstantinos, Chairman of the Board of Directors and Managing Director,
• 1. Anastasia Andreadou, the genus Angelos Kozlaclides, Vice-Chairman of the Board of Directors (hereinafter referred to as "BoD"),
• 1. Theodora Koufou of Demetriou, Member of the Board of Directors,

under our above-mentioned positions specifically designated by the Board of Directors of "AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A." (hereinafter referred to as "Company") hereby declare and certify that to the best of our knowledge:

• a) The Condensed Separate and Consolidated Interim Financial Statements for the period from 1 January 2019 to 30 June 2019, of the Company "AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A.", as well as the companies that included in the consolidation taken as a whole, which were prepared in accordance with the International Financial Reporting Standards, as adopted by the European Union, present in a true manner the Assets and Liabilities, Equity and Profit of the year for the six-month period ended 30 June 2019, in accordance with paragraphs 3 to 5 of article 5 of Law 3556/2007.
• b) The Board of Directors' Report on these Financial Statements accurately reflects the information required by paragraph 6 of article 5 of Law 3556/2007.

Thessaloniki, 27 September 2019

& Managing Director

Chairman of B.o.D Vice-Chairman of B.o.D.

EFSTRATIOS Κ. ANDREADIS ANASTASIA Ε. ANDREADOU ID No. ΑΒ 691316 ID No. AH 181790

Board Member

THEODORA D. KOUFOU ID No. AN 233404

ΙΙ. INTERIM REPORT OF THE BOARD OF DIRECTORS (SEPARATE AND CONSOLIDATED) FOR THE FINANCIAL PERIOD FROM 1 JANUARY 2019 TO 30 JUNE 2019

(in accordance with article 5 of Law 3556/2007)

Dear Shareholders,

This Board of Directors report has been prepared in accordance with the provisions of article 5 par. 6 of Law 3556/2007 and refers to the Condensed Interim Separate and Consolidated Financial Statements (hereinafter referred to as "Financial Statements") of 30 June 2019 and the six-month period which expired on that date.

This report includes the actual depiction for the period from 1 January 2019 to 30 June 30 2019, the significant events that took place during the first half of 2019, the description of the main risks and uncertainties, the significant events that took place after the end of the first half of 2019 and finally the material transactions of AS COMMERCIAL INDUSTRIAL COMPANY PC & TOYS SA (the "Company") and the Group of AS COMMERCIAL INDUSTRIAL COMPANY PC & TOYS SA (the "Group") with related parties.

The Interim Condensed Financial Statements (Separate and Consolidated), the Review Report of the Certified Auditor and Company's Board of Directors report can be found on the link: https://www.ascompany.gr.

The main point of reference in this report is the consolidated financial data of the Company with reference to the Company's and the Group's individual financial data.

All amounts in this Annual Financial Report are expressed in Euro.

Α. FINANCIAL INFORMATION

In the first half of 2019, the Company's turnover decreased maintaining however high profitability.

The most significant figures of the Company and the Group compared to the corresponding period of 2018 are as follows:

		Group			Company
	1.01 to 30.06.2019	1.01 to 30.06.2018	V %	1.01 to 30.06.2019	1.01 to 30.06.2018	V %
Turnover % Gross Profit margin	10.857.908 51,59%	11.944.032 52,12%	-9,09%	10.552.253 50,46%	11.747.095 52,05%	-10,17%
EBITDA As a % of Sales	2.329.565 21,46%	2.861.193 23,95%	-18,58%	2.209.955 20,94%	2.830.124 24,09%	-21,91%
Profit before tax Profit after tax	2.439.654 1.745.443	2.612.912 1.888.813	-6,63% -7,59%	2.328.207 1.650.184	2.588.232 1.867.458	-10,05% -11,63%
Total Inflows / (outflows) from Operating Activities Cash & Investments	-886.555 13.155.459	2.088.916 12.849.719	-142,44% 13,90%	-1.362.270 12.037.604	2.005.743 12.466.184	-167,92% -3,44%

The Group's turnover decreased by 9.09% compared to the same period last year and amounted to € 10.9 million. Decreased sales came mainly from the Parent Company and the decreased demand in Greek market where wholesales decreased by 9.4%.

Group's gross profit margin decreased slightly by 0.5% compared to 2018, being formed to 51.6% from 52.1%. The decrease is mainly due to an increase in the exchange rate of the Dollar against the Euro. The exchange rate was EUR 1,1658 / USD as at 30.6.18 versus EUR 1,1380 / USD as at 30.06.2019.

Despite the decrease in distribution expenses, as a result of the decrease in revenues and inelastic expenses, the EBITDA of the Group and the Company decreased by 18.58% and 21.91% respectively compared to the same period of the previous year and being formed to 21,46% for the Group and 20.94% for the Company.

The management of the Company's securities portfolio resulted to gains which improved the overall profitability of the Company and the Group.

As a result, the Group's profit before tax and profit after tax for the first half of 2019 are decreased compared to the corresponding period of 2018 in absolute figures, by € 173 thousand and € 143 thousand respectively.

The Group's operating activities are negative by € 887 thousand due to the reduced turnover of the Company in the first half of the year.

Net Profit before Tax: The decrease in profitability compared to the previous year for the Group and the Company is attributable to

Company ( Α )

Α. Decrease in sales volume	-602.960
Β. Decrease in Gross Profit Margin %	-185.857
C. Decrease in Operating Costs	163.923
D. Increase of Financial Income	414.587
Ε. Increase in Other Income	4.725
F. Increase in depreciation	-54.443
Total change in Profits before taxes	-260.025
Subsidiaries Activities (B)	86.767
Total Change (A + B)	-173.258

Management of the Group considers the results of the first half of 2019 satisfactory, given that maintained its share in the domestic market.

Banking Liabilities: The status of Bank Lending as at 30.06.2019 excluding IFRS 16 was formulated as follows:

		Group	Company
	30.06.2019	31.12.2018	V %	30.06.2019	31.12.2018	V %
Bank Loans	15.424	96.919		14.908	14.516
less : Cash & Investments	13.155.459	13.728.462		12.037.604	13.080.306
Net Debt	13.140.035	13.631.543	-3,61%	12.022.696	13.065.790	-7,98%
Equity	29.276.925	28.454.265	2,89%	28.565.528	27.834.165	2,63%
Gearing Ratio	-44,88%	-47,91%		-42,09%	-46,94%

The adjusted gearing ratio taking into account the impact of IFRS. 16 is formulated as follows:

		Group	Company
	30.06.2019	31.12.2018	V %	30.06.2019	31.12.2018	V %
Bank Loans	466.829	96.919		452.462	14.516
less : Cash & Investments	13.155.459	13.728.462		12.037.604	13.080.306
Net Debt	12.688.629	13.631.543	-6,92%	11.585.142	13.065.790	-11,33%
Equity	29.276.925	28.454.265	2,89%	28.565.528	27.834.165	2,63%
Gearing Ratio	-43,34%	-47,91%		-40,56%	-46,94%

The Company with the adoption of IFRS 16 for the first time in 2019 shows a total liability of € 437 thousand from leasing of properties and cars. Bank lending in the first half of 2019 is very low for the Company and for the Group, which certifies their sound financial position.

Working Capital: The comparative figures for the working capital are as follows:

		Group		Company
	30.06.2019	31.12.2018	V %	30.06.2019	31.12.2018	V %
Current assets	30.705.729	29.720.290		29.245.678	28.289.426
Short-term liabilities	-6.192.340	-6.146.779		-5.959.212	-5.861.040
Working capital	24.513.390	23.573.510	3,99%	23.286.466	22.428.386	3,83%

The Group's inventories were at the same level as at 31.12.2018 amounting to € 5.1 million representing 14.1% of Total Assets, compared to 14.6% in 2018. Receivables from customers at Group level are increased by € 1,680 thousand compared with 31.12.2018.

	Group		Company
	30.06.2019	31.12.2018	30.06.2019	31.12.2018
Inventory and Receivables from Customers & Other receivables less : Accounts payable and other short term	17.550.271	15.991.828	17.208.074	15.209.120
liabilities	-6.073.637	-6.049.860	-5.854.877	-5.846.524
Net working capital	11.476.633	9.941.968	11.353.197	9.362.596
% sales	52,85%	36,8%	53,80%	36,6%

The working capital required for the financing of sales for 2018 increased by 15.44% for the Group and 21.26% for the Company.

Earnings per share: Earnings per share of the Company based on the weighted number of shares amounted to € 0.1257 compared to € 0.1423 in the previous period, showing a decrease of 11.6%.

Capital expenditure: The Company's investments in capital expenditures for the first half of 2019 amount to € 92 thousand.

Research and development costs: In the first half of 2019, the Company incurred expenses that amounted to € 83 thousand compared to € 60 thousand of the corresponding period.

Key Financial ratios: The key financial ratios for the first semester of 2019 compared to 31.12.2018 and 30.6.2018 are as follows:

Group:

a. Financial Structure ratios	30.06.2019	31.12.2018
Current Assets / Total Assets	84,2%	84,6%
Equity / Total Liabilities	407,0%	425,2%
Equity / Fixed Assets	507,9%	524,5%
Current Assets / Short Term Liabilities	495,9%	483,5%
b. Performance and Efficiency ratios	30.06.2019	30.06.2018
EBITDA / Turnover	21,5%	23,9%
Gross Profit / Turnover	51,6%	52,1%
Turnover / Equity	74,2%	88,0%
Company
a. Financial Structure ratios	30.06.2019	31.12.2018
Current Assets / Total Assets	82,3%	82,6%
Equity / Total Liabilities	410,4%	434,5%
Equity / Fixed Assets	454,9%	467,8%
Current Assets / Short Term Liabilities	490,8%	482,7%
b. Performance and Efficiency ratios	30.06.2019	30.06.2018
EBITDA / Turnover	20,9%	24,1%
Gross Profit / Turnover	50,5%	52,0%
Turnover / Equity	73,9%	87,7%

Building facilities: The parent company maintains in Oraiokastro Thessaloniki, in a privately owned space, the offices, the warehouse and the retail store. Also as of 30.06.2019, the Company maintained four leased branches in different areas of Northern Greece for the retail sale of kids clothing - toys and a leased office and exhibition space in Athens. In Cyprus and Romania, subsidiaries rent space for their offices.

Personnel: The number of staff employed at the end of the first half of 2019 amounted to 83 employees, i.e. 79 employees in the parent company and 4 employees in the subsidiaries. During the corresponding period last year, the Group employed 77 employees, i.e. 74 employees in the Company and 3 employees in the subsidiaries

Investments: The Group structure as of 30.06.2019 is as follows:

Name	Consolidation Method	% Parent
AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A. Ionia str., Oreokastro, 57013, Thessaloniki, Greece	Parent
AS COMPANY CYPRUS LTD 21 Akadimias Str. Aglatzia 2017, Nicosia, Cyprus	Total Consolidation	100%
AS KIDS TOYS S.R.L Calea Bucurestilor – Νο 3A, Parter Camera P1 Otopeni, Romania	Total Consolidation	100%

In the period ended 30.06.2019, Condensed Interim Financial Statements were prepared including the financial information of the subsidiaries "AS COMPANY CYPRUS LTD" and "AS KIDS TOYS S.R.L.". The Romanian subsidiary commenced trading activity in the second half of 2018 and is therefore not included in the Interim Financial Statements for the period from 1.1.2018 to 30.6.2018.

Β. IMPORTANT EVENTS ON THE FIRST SEMESTER OF 2019

1. General Meeting of Shareholders decisions

The Annual General Meeting of the Company's Shareholders held on 21.6.2019 took the following decisions:

• a) approval of the Annual Separate and Consolidated Financial Statements of Directors for the year 2018 (1/1 – 31/12/2018) accompanied with the relevant reports of the Board and the Auditor.
• b) approval of non-distribution of dividends for the fiscal year 2018,
• c) approval of the overall management of the Board of Directors for the fiscal year 1.1.2018- 31.12.2018 according to article 108 Law. 4548/2018 and the discharge of the Auditors for the same year according to article 117 par.1 note. C of Law 4548/2018.
• d) the approval of the remuneration and compensation paid to the members of the Board of Directors for the year 01.01.2018–31.12.2018.
• e) the approval of the remuneration and compensation paid to the members of the Board of Directors for the year 2019 and until the general meeting of the shareholders of 2020.
• f) the election of the Certified Auditors Company under the name KPMG Certified Auditors S.A. (AM: 114), for the audit of the Financial Statements and for granting a compliance assurance certificate for the year 2019 (1.1.2019-31.12.2019), through its below operating members acting as: 1) Auditor: Mr. Nikolaos Vouniseas, A.M SOEL 18701. 2) Replacement Auditor: Mr. Charalambos Syrounis, A.M SOEL 19701.
• g) the reduction of the Company's share capital by nine hundred eighteen thousand eight hundred twenty one and fourty cents (€ 918.821,40), through reduction of the nominal value of each ordinary registered share of the Company from EUR 0,56 to EUR 0,49, i.e. at 0,07 cents and return to shareholders and amendment of article 5 of the current Articles of Association of the Company that relates to share capital.
• h) the amendment of the Article of Association in compliance and harmonization with Law 4548/2018, by supplementing, repealing, rephrasing and renumbering all of its articles.
• i) the revocation of the existing and the election of a new Board of Directors, due to the increase of the number of its members from seven (7) to eight (8) and the appointment of its independent members, according to article 3 par. 1 of Law 3016/2002.
• j) the revocation of the existing Audit Committee, the election of a new one, in accordance with article 44 of Law 4449/2017 and the appointment of its Chairman.
• k) the approval of the purchase of own shares in accordance with the provisions of Article 49 of Law 4548/2018 within a period of twenty-four (24) months from the date of the decision of the General Meeting, up to a maximum of 5% of all of existing stocks, with a market price range from 0.50 € / share (threshold) to 4.00 € / share (ceiling).
• l) granting permission to the new Board member; Mr. Konstantinos Andreadis, to perform the duties of Managing Director at the Cyprus Subsidiary AS Company Cyprus Ltd, and Mr. Theodora Koufou, member of the Board of Directors of the company, for the performance of the duties of the administrator of the subsidiary established in Romania under the name "AS KIDS TOYS S.R.L.".

2. Participation in exhibitions abroad

In the first semester of 2019 the AS COMPANY S.A Group participated in various exhibitions in Greece and abroad.

More specifically during the first semester the Group participated in the below exhibitions:

a. Parousies in Greece b. Spielwarenmesse in Nurnberg c. Annual Corporate Exhibition in Greece d. Distoy in London. The presence of the Group in exhibitions abroad is of great importance for the penetration to new markets and for this reason the Group plans to actively participate in the next exhibitions of the sector throughout the year.

3. Retail stores

The retail and trading activity of kids clothing sector reached € 505 thousand, turnover compared to € 515 thousand turnover on 2018 , showing a decrease of 1,9%.

This activity continued to have a low contribution to the Company's profitability, and for this reason the Management terminated in the second half of 2019, as it was announced, the operation of four leased retail stores in order to focus on its main activity. The Company maintains only its retail store in its headquarters in Oraiokastro, Thessaloniki.

4. Tax compliance assurance certificate for the year 2018

The tax compliance assurance work of the Company for the year ended 31 December 2018, which was conducted by the Certified Auditor pursuant to article 65A of Law 4174/2013, was completed in 2 August 2019 and an unqualified Tax Compliance Assurance Report was issued.

5. Decision Approving Share Capital Reduction by the Competent Authorities

On 24.07.2019 the decision 77591/24.07.2019 of the Ministry of Economy, Development and Tourism was uploaded in the General Electronic Commercial Registry which approved the amendment of article 5 of the Articles of Association of the Company. The Corporate Actions Committee of the Athens Stock Exchange was informed at the meeting on 31.07.2019 about the reduction of the share capital with the purpose of returning capital by cash payment to the shareholders, amounting to € 0,07 per share, as well as for the relevant amendment of the article 5 of the Company's Articles of Association.

C. MAIN RISKS AND UNCERTAINTIES FOR THE SECOND SEMESTER OF 2019

The activities of the Company and the Group are exposed to a number of risks. The main risks are described below:

• Exchange rate risk,
• Interest rate risk,
• Risk from commodity prices fluctuations and dependence for the supply of the goods
• Credit risk and liquidity risk
• Insurance risk

Group's Management aims to limit the potential negative impact of these risks on its financial results and is constantly adapting to the new circumstances so as to maintain its activities unaffected.

Exchange rate

This specific risk relates to the exchange rate between euro and other currencies that related to the sales and purchases of the Company and the Subsidiaries.

The Group carries out a significant part of its imports from China - Hong Kong which are invoiced in US dollars (USD). In the first semester of 2019 purchases in dollar comprised for 73% of total purchases, compared to 70% of the prior period's purchases. The value of imports in dollar (USD) is 6,27% higher than the same period last year.

The Group in the first semester of 2019 did not use financial instruments to reduce its exposure from foreign exchange risk arising from the markets.

Interest rate risk

The Company's Management estimates that there are no significant risks arising from a possible change in interest rates given the Company's minimum borrowing on 30/6/2019.

Risk from commodity prices fluctuations and dependence for the supply of the goods.

Given that most of the toys traded by the Company and the Group are imported from China, any change in trade relations between China and the European Union, or any change in the exchange rate between CNY/USD given that most of the of the Group's purchases are made in USD, may affect positively or negatively, on the one hand, the supply of customers and sales of the Group and on the other the Cost of sales and Profitability.

The Company continuously monitors the financial data of the Chinese market by maintaining long lasting relationships with its suppliers. The Company also participate in exhibitions in China with a purpose of setting up preferred suppliers list, with whom it could enter into a business relationship.

Credit risk and liquidity risk

It concerns the risk that the Company or the Group may face if a customer fails to fulfil its contractual obligations. The Group and the Company, in order to reduce their credit risk, apply a rational credit policy, taking into account any market information collected from data banks for the credibility of their customers. The receivables of the Group and the Company derive mainly from wholesale, while a significant part of the receivables derive from large customers.

The financial condition of its customers is continuously monitored by the Group and the Company by controlling credit limits provided. If deemed necessary additional collaterals and guarantees are obtained.

Due to the size of the Company's trading circuit, the potential credit risk for the Group is currently retained by the Company.

Liquidity risk exists in the event where the Group cannot fulfil its financial obligations. As appears in the financial statements, both at Company and at Group level, the liquidity risk is fully controlled (see working capital ratio).

GROUP	30.06.2019	30.06.2018
Current Assets / Short Term Liabilities	495,9%	369,6%
COMPANY	30.06.2019	30.06.2018
Current Assets / Short Term Liabilities	490,8%	366,7%

As far as the cash flow risk is concerned, it is noted that the Company and the Subsidiary are adequately protected, due to: a) the high credit rating with the banking institutions, b) the financial assets of the Company, whose carrying amount in the financial statements does not deviate from their fair value, c) maintaining cash at credible banks d) placing cash to trading investments.

Due to the seasonality in the Group's products, a rational management of working capital is required because in any other case additional financial costs may burden its results. The Group has sufficient funding lines from Banking Institutions.

Insurance Risk

Given that most of the Group's merchandises are carried over from the warehouse of the Company to customers and the subsidiaries, the Company should be covered by its exposure to counterparty risk by insuring its products.

For this purpose, the Company carries out insurance of its facilities by a consortium of insurance companies, something that gives adequate insurance cover for all the main risks.

The subsidiaries in Romania and Cyprus do not have their own warehouse and the trading of merchandise takes place through the warehouse facilities of the parent Company.

Other risks

The demand of Company's products is affected by external factors such as economic uncertainty, reduced consumption and consumers preference for low-priced products. In this context, Management has made a selection of quality products with low retail price, which are attractive to consumers.

The Company proceeds to short-term investments (mainly bonds) having first evaluated the relevant ratings from international firms.

D. PERSPECTIVES FOR THE YEAR 2019

According to ELSTAT Retail Sales data for the first semester of 2019, retail sales were decreased by 0.6% compared to prior period of 2018. The Company's management estimates that the Greek toy market will fluctuate around 2018 levels or slightly less.

The Company's Management aims to increase its market share in the domestic market through the trade of innovative toys series across many of its categories, improving the Company's position on its customer shelves and opening new sales channels. The Company continues to invest heavily in the digital environment with enhanced presence through its partners and own resources.

The Company has also designed innovative advertising campaigns this year to support its products for the critical holiday season.

A particularly important objective is to increase the stock turnover days while reducing stocks on the market.

The Group aims to increase sales for 2019 in the Cypriot and Romanian markets through its subsidiaries.

The Group is continuing its organizational and digital restructuring activities in order to be ready to face the challenges of upcoming market changes.

Ε. RELATED PARTIES TRANSACTIONS

As related parties within the meaning of IAS 24 are in addition to subsidiaries and affiliates, also directors and members of the Board of Directors.

Revenues and expenses, transactions with members of the Board of Directors and Management for the period 1.1.2019 to 30.06.2019 as well as the balances of their receivables and liabilities as at 30.06.2019 are set out in the table below:

	Group		Company
	30.06.2019	30.06.2018	30.06.2019	30.06.2018
α) Revenues	443.769	0	286.248	98.113
β) Receivables γ) Transactions and Remuneration of Directors and	166.264	0	164.513	127.182
Members of the Board	638.763	561.413	591.899	515.229

The Company's Revenue and receivables relate to the parent's transactions with the subsidiaries in Cyprus and Romania that took place in the first semester of 2019.

The benefits to the directors and the Company's management are analyzed as follows:

	Group		Company
Directors Remuneration and Transactions	30.06.2019	30.06.2018	30.06.2019	30.06.2018
Short-term employee benefits
Salaries	397.552	348.777	363.432	316.522
Social Security cost	75.522	63.141	71.778	59.912
Total	473.074	411.918	435.210	376.434
Remunerations and Transactions of Board Members
Short – term benefits
Salaries	143.400	131.520	134.400	120.820
Social Security cost	22.288	17.975	22.288	17.975
Total	165.688	149.495	156.688	138.795

No loans have been granted to the Board of Director members, or to Directors (and their families). There were no changes in the nature of transactions between the Company and its related persons which could have a material impact on the Company's financial position and performance.

Directors and executive Board Members' remuneration paid during the current period is related to the provision of service provided to the Company while the non-executive members' remuneration related to their position as members of the Board of Directors.

F. SIGNIFICANT EVENTS AFTER THE END OF THE FIRST SEMESTER OF 2019

On 30 July 2019, as planned, the Company terminated the operation of 4 retail stores.

On 6.9.2019 (the cut-off date) the Company's shares were negotiable on the ATHEX. with the new nominal value of € 0.49 per share, without the right to participate in cash return to shareholders of € 0.07 per share. By the same date, the starting price of the Company's shares on the ATHEX. was formulated in accordance with the Athens Stock Exchange Regulation in conjunction with the no. 26 decision of the ATHEX Board of Directors as applicable. The beneficiaries of the return were the shareholders registered in the S.A.T archives on 9.9.2019 (beneficiary identification date - record date). The due date for the return of the capital was set on Friday, 13.09.2019 and the payment was made through the Bank "Eurobank Ergasias SA".

G. ALTERNATIVE PERFORMANCE MEASURES INDICATORS («ΕDΜΑ»)

For the analysis of the Company's and the Group's performance, "comparable" figures are used which are calculated by adding-deducting captions presented in the Financial Statements prepared in accordance with the International Financial Reporting Standards.

EBITDA ratio

This ratio results from the deduction of administrative, distribution and research expenses from the gross profit plus other income. Operating expenses do not include depreciation that are presented in separate caption in the Financial Statements. This ratio provides with useful information for the analysis of the Company's and the Group's operating performance.

The ratio for the corresponding years of 2017, 2018 & 2019 was as follows:
	30.06.2019	30.06.2018	30.06.2017
EBIDTA	2.329.565	2.861.193	1.989.141
% Sales	21,46%	23,95%	16,93%

Leverage Factor Ratio

This ratio results from the addition of the short-term borrowings plus the long-term borrowings from which the cash and cash equivalents and short-term investments are deducted. The outcome of these captions is divided by the Equity to calculate the leverage ratio The Group uses this ratio to measure its liquidity. Following the application of IFRS 16 financial liabilities related to leases are included in the calculation of Net Debt from 2019 onwards.

The ratio for the corresponding years of 2016, 2017, 2018 & 2019 was as follows:

	30.06.2019	30.06.2018	30.06.2017	30.06.2016
% net debt/equity	-43,34%	-39,86%	-27,29%	-23,95%
Net debt	-12.688.629	-10.820.040	-6.571.748	-5.224.052

AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A. Thessaloniki, 27 September 2019

THE CHAIRMAN OF BOARD OF DIRECTORS & MANAGING DIRECTOR

EFSTRATIOS K. ANDREADIS

KPMG Certified Auditors SA Stratigou Tombra 3 153 42 Aghia Paraskevi Greecαe Telephone: +30 210 60 62 100 Fax: +30 210 60 62 111

Ι Independent Auditors' Report

ΙΙ

on Review of Condensed Interim Financial Information

To the Shareholders of AS COMMERCIAL - INDUSTRIAL COMPUTER AND TOY COMPANY S.A.

Introduction

We have reviewed the accompanying interim condensed standalone and consolidated Statement of Financial Position of AS COMMERCIAL - INDUSTRIAL COMPUTER AND TOY COMPANY S.A. (the "Company") as at 30 June 2019 and the related condensed standalone and consolidated Statements of Income and Comprehensive Income, Changes in Equity and Cash Flows for the sixmonth period then ended and the selected explanatory notes, which comprise the condensed interim financial information and which forms an integral part of the six-month financial report of article 5 and 5a of L. 3556/2007. Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with the International Financial Reporting Standards adopted by the European Union and specifically with International Accounting Standard (IAS) 34 "Interim Financial Reporting". Our responsibility is to express a conclusion on this condensed interim financial information based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements (ISRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, as incorporated in Greek Law, and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information as at 30 June 2019 is not prepared, in all material respects, in accordance with IAS 34 "Interim Financial Reporting".

Report on Other Legal and Regulatory Requirements

Our review did not identify any material inconsistency or error in the statements of the members of the Board of Directors and in the information of the six-month Financial Report of the Board of Directors as defined in articles 5 and 5a of L. 3556/2007 in relation to the accompanying interim condensed financial information.

Athens, 27 September 2019 KPMG Certified Auditors S.A. AM SOEL 114

Nikolaos Vouniseas, Certified Auditor Accountant ΑΜ SOEL 18701

Interim Financial Report of the period from 1 January 2019 to 30 June 2019 15

AS COMPANY S.A. GROUP OF COMPANIES

INTERIM CONDENSED FINANCIAL STATEMENTS (SEPARATE AND CONSOLIDATED) AS OF 30 JUNE 2019

In accordance with IFRS as they are adopted by the European Union

IV. INTERIM CONDENSED FINANCIAL STATEMENTS Α. INTERIM STATEMENT OF FINANCIAL POSITION

(Amounts in Euros)

			GROUP	COMPANY
ASSETS	Not e.	30.06.2019	31.12.2018	30.06.2019	31.12.2018
Non-current assets
Property,plant and equipment Intangible assets	7.1	5.154.355 130.708	5.261.550 132.797	5.143.595 121.825	5.248.834 121.599
Right of use of leased assets	7.1	447.380	0	433.597	0
Participations in subsidiaries	7.2	0	0	550.000	550.000
Other non-current assets		31.962	31.178	30.915	30.117
		5.764.404	5.425.525	6.279.931	5.950.549
Currents assets
Inventories	7.3	5.152.944	5.126.114	5.116.912	4.930.601
Accounts receivables	7.4	12.270.366	10.589.434	11.976.132	10.038.833
Investments at fair value through P&	7.5	7.116.993	5.336.434	7.116.993	5.336.434
Other current assets		126.961	276.280	115.030	239.686
Cash and cash equivalents	7.6	6.038.466	8.392.027	4.920.611	7.743.872
		30.705.729	29.720.290	29.245.678	28.289.426
Total assets		36.470.135	35.145.815	35.525.610	34.239.975
EQUITY AND LIABILITIES
Equity
Share capital	7.7	6.431.750	7.350.571	6.431.750	7.350.571
Share premium		74.509	74.509	74.509	74.509
Other reserves		1.722.252	1.726.214	1.726.623	1.726.623
Retained earnings		21.048.414	19.302.971	20.332.646	18.682.462
Equity attributable to shareholders of the Company		29.276.925	28.454.265	28.565.528	27.834.165
Minority interest		0	0	0	0
Total Equity		29.276.925	28.454.265	28.565.528	27.834.165
Long-Term Liabilities
Deferred tax liabilities		179.392	90.082	179.392	90.082
Staff leaving benefits		376.191	356.766	376.191	356.766
Leasing liabilities		348.127	0	348.127	0
Other long-term liabilities		97.159	97.922	97.159	97.922
		1.000.869	544.770	1.000.869	544.770
Current liabilities
Account payables		1.585.522	2.862.121	1.537.951	2.809.696
Short-term borrowings		15.424	96.919	14.908	14.516
Short-term leasing liabilities		103.278	0	89.427	0
Other short-term liabilities		4.488.117	3.187.739	4.316.926	3.036.828
		6.192.340	6.146.779	5.959.212	5.861.040
Total Liabilities		7.193.210	6.691.549	6.960.001	6.405.810
Total Equity and Liabilities		36.470.135	35.145.815	35.525.610	34.239.975

The Group and the Company have adopted the IFRS 16 by using the method of the cumulative effect. According to this approach the comparative information is not restated. (Note 3d). The accompanying notes set out on pages 21 to 34 form an integral part of these Interim Condensed Financial statements.

Β. INTERIM PROFIT AND LOSS ACCOUNT FOR THE PERIOD 01.01.2019 –

30.06.2019

(Amounts in Euros)

		GROUP		COMPANY
	Σημ.	1.1 to 30.06.2019	1.1 to 30.06.2018	1.1 to 30.06.2019	1.1 to 30.06.2018
Turnover	7.8	10.857.908	11.944.032	10.552.253	11.747.095
Cost of sales		-5.256.575	-5.719.259	-5.227.208	-5.633.232
Gross profit		5.601.333	6.224.772	5.325.045	6.113.862
Other operating income		14.940	10.215	14.940	10.215
Administrative expenses	7.9	-968.276	-916.916	-888.279	-861.036
Distribution costs	7.10	-2.234.601	-2.396.764	-2.157.920	-2.372.803
Research and development expenses	7.11	-83.831	-60.114	-83.831	-60.114
Profit before interest, taxes, depreciation and amortization		2.329.565	2.861.193	2.209.955	2.830.124
Depreciation-Impairments		-252.734	-188.248	-242.427	-187.984
Profits before taxes, financing and investment
results		2.076.830	2.672.945	1.967.528	2.642.140
Financial expenses-net		362.824	-60.033	360.679	-53.908
Profits before tax total		2.439.654	2.612.912	2.328.207	2.588.232
Less: taxes	7.12	-694.211	-724.099	-678.023	-720.774
Profits after taxes (A)		1.745.443	1.888.813	1.650.184	1.867.458
Other comprehensive income (B)		0	0	0	0
Total Comprehensive income (Α) + (Β)		1.745.443	1.888.813	1.650.184	1.867.458
Net profit attributable to: - Shareholders of the Company -Minority interest	9	1.745.433 0	1.888.813 0	1.650.184 0	1.867.458 0
Earnings per share - (in €)	9	0,1330	0,1439	0,1257	0,1423

The Group and the Company have adopted the IFRS 16 by using the method of the cumulative effect. According to this approach the comparative information is not restated. (Note 3d). The accompanying notes set out on pages 21 to 34 form an integral part of these Interim Condensed Financial statements.

C. INTERIM STATEMENT OF CHANGES OF EQUITY

(Amounts in Euros)

GROUP

Amounts in Euro	Share capital	Share premium	Other reserves	Retained earnings	Total
Equity as of 01.01.2018	8.006.872	74.509	1.587.106	16.245.795	25.914.281
Profit for the year	0	0	0	1.888.813	1.888.813
Exchange rate differences and other reserves	0	0	139.517	-139.517	0
Reduction and return of share capital	-656.301	0	0	0	-656.301
Equity as of 30.06.2018	7.350.571	74.509	1.726.623	17.995.091	27.146.794
Equity as of 01.01.2019	7.350.571	74.509	1.726.214	19.302.971	28.454.265
Profit for the year	0	0	0	1.745.443	1.745.443
Exchange rate differences and other deposits	0	0	-3.963		-3.963
Reduction and return of share capital	-918.821	0	0	0	-918.821
Equity as of 30.06.2019	6.431.750	74.509	1.722.252	21.048.414	29.276.925

COMPANY

Amounts in Euro	Share capital	Share premium	Other reserves	Retained earnings	Total
Equity as of 01.01.2018	8.006.872	74.509	1.636.875	15.849.233	25.567.489
Profit for the year	0	0	0	1.867.458	1.867.458
Exchange rate differences and other reserves	0	0	139.517	-139.517	0
Reduction and return of share capital	-656.301	0	0	0	-656.301
Equity as of 30.06.2018	7.350.571	74.509	1.776.392	17.577.174	26.778.646
Equity as of 01.01.2019	7.350.571	74.509	1.726.623	18.682.462	27.834.165
Profit for the year	0	0	0	1.650.184	1.650.184
Reduction and return of share capital	-918.821	0	0	0	-918.821
Equity as of 30.06.2019	6.431.750	74.509	1.726.623	20.332.646	28.565.528

The Group and the Company have adopted the IFRS 16 by using the method of the cumulative effect. According to this approach the comparative information is not restated. (Note 3d).

The accompanying notes set out on pages 21 to 34 form an integral part of these Interim Condensed Financial statements.

D. INTERIM CASH FLOW STATEMENT

(Amounts in Euros)

		C

GROUP	COMPANY

	Note	1.1 to 30.06.2019	1.1 to 30.06.2018	1.1 to 30.06.2019	1.1 to 30.06.2018
Operating activities
Profit before tax		2.439.654	2.612.912	2.328.207	2.588.232
Adjustments for: Depreciation		252.734	188.248	242.427	187.984
Provisions		-195.111	114.494	-195.111	114.494
Exchange differences		-3.963	-39.651	0	-39.651
Results (Gain/loss) from investing activities		-236.507	68.497		68.554
Interest and related expenses		-2.852	54.229	-236.551 0	54.229
Plus/Minus Working Capital Adjustments:
(Increase)/ decrease in inventories		-26.831	-244.357	-186.311	-111.911
Increase / (decrease) in receivables		-1.454.806	351.064	-1.815.749	-163.245
(Decrease)/in payables (except loans)		-1.659.579	-908.283	-1.499.182	-584.806
Minus:		0
Interest and related expenses paid		2.785	-108.237	0	-108.136
Income tax paid		-2.148	0	0	0
Net cash flows from operating activities (α)		-886.622	2.088.916	-1.362.270	2.005.743
Investing Activities
Acquisition of subsidiary	7.2	0	-400.000	0	-400.000
Purchase of tangible and intangible assets		-91.580	-37.086	-91.883	-37.086
Sales / (Purchase of securities of financial assets)		2.308		2.308
(Purchase) of securities		-1.465.199	-556.683	-1.465.199	-556.683
Interest received		134.988	4.392	134.965	4.234
Net cash flows from investing activities (β)		-1.419.483	-989.377	-1.419.809	-989.535
Financing Activities
Proceeds from loans issued/withdrawn		392	9.474	392	9.474
Repayment of loans		-41.574	0	-41.574	0
Repayment of finance lease		-6.274	-472	0	0
Net cash flows from financing activities (c)		-47.456	9.002	-41.182	9.474
Net increase / (decrease) in cash and cash equivalents (a)+(b)+(c)		-2.353.562	1.108.540	-2.823.261	1.025.681
Cash and cash equivalents at the beginning of the year	7.6	8.392.027	5.671.381	7.743.872	5.370.705
Cash and cash equivalents at the end of the year	7.6	6.038.466	6.779.921	4.920.611	6.396.386

The Group and the Company have adopted the IFRS 16 by using the method of the cumulative effect. According to this approach the comparative information is not restated. (Note 3d).

The accompanying notes set out on pages 21 to 34 form an integral part of these Interim Condensed Financial statements.

Ε. NOTES TO THE SEPARATE AND CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. General Information

AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A. is a Hellenic Societe Anonyme Trading Company founded on 8 November 1990 (Official Government Gazette 4222 / 03.12.1990). The Company is registered with the Registry of Societes Anonymes of the Ministry of Economy, Development and Tourism, with GEMI number 057546304000 and Registry Number 22949/06/B/90/107. Its web site is www.ascompany.gr and is listed on the Athens Stock Exchange. The Financial Statements of 30 June 2019 were approved by the Board of Directors on 27 September 2019.

The Company's number of employees as of 30 June 2019 was 79 persons and for the Group 83 persons.

The main activity of the Company concerns the wholesale trade of toys.

The subsidiary in Cyprus under the name "AS COMPANY CYPRUS LTD" is governed by and operates under Cyprus Law, in the form of a Limited Liability Company. The subsidiary was established in May 2016 with an initial capital of € 150.000, which was 100% covered by the parent company, which is its sole shareholder.

The Romanian subsidiary AS KIDS TOYS S.R.L. is governed by and operates under Romanian law in the form of Limited Liability Company. The subsidiary was established in February 2018. Its share capital amounts to € 400.000 and has been 100% covered by the parent company, which is its sole shareholder.

2. Basis of preparation of the Financial Statements

The Interim Financial Statements have been prepared with the International Accounting Standard (IAS) 34 "Interim Financial Reporting". Those Interim Financial Statements do not contain all the information required in the annual financial statements and for this reason should be read in conjunction with the published audited annual Financial Statements for the year ended 31 December 2018, which can be found on the Company's website address www.ascompany.gr.

The financial statements have been prepared in accordance with the historical cost principle, except for the financial assets at fair value through profit or loss, which, based on IFRSs, are measured at fair value.

For the preparation of the Financial Statements the significant accounting estimates from the Management for the application of the Group's accounting principles as well as the main source of evaluation of uncertainty are the same with those adopted on the preparation of the annual Financial statements as of 31.12.2018, except from those that concern the adoption of the new IFRS as of January 2019.

There are no changes in the applied accounting principles and methods compared with those applied in the preparation of the Financial Statements as of 31.12.2018 according to IFRS after the consideration of the standards and interpretations that are noted in paragraph 3b below.

The amounts of the Financial Statements are expressed in Euro, unless otherwise stated. Any differences in the sums are due to roundings.

3. Significant Accounting Principles and Methods

3a. General

The accounting principles used in the preparation of these Financial Statements are explained below. These principles have been applied consistently in the current period as well as in the prior year so as the figures presented in the Financial Statements to be absolutely comparable.

The accounting principles and methods and calculation methods used in the preparation of the Financial Statements, the significant accounting estimates adopted by Management and the main sources of uncertainty that affect these estimates are the same as those adopted in the published annual Financial Statements for the year ended 31 December 2018 (as posted on the Company's website), after taking into account the new and amended changes in the standards and interpretations listed below

3b. Impact of new accounting standards and interpretations

The following new and amended standards and interpretations, as issued by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee (IC) and endorsed by the European Union (EU), apply from 1 January 2019:

ΙFRS 9, Amendment–Prepayment Features with Negative Compensation

The amendment changes IFRS 9 requirements in order to allow measurement of a financial asset at amortized cost or at FVOCI, depending on the business model, even in the case of prepayment options which could result in the party that triggers the early termination receiving compensation from the other party (negative compensation). Therefore, measurement of these financial assets will be regardless of the event or circumstance that caused the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination. Applying IFRS 9 before the amendment would probably result in the measurement of these financial assets at FVTPL.

The amendment also confirms the modification accounting of financial liabilities under IFRS 9. Specifically, when a financial liability measured at amortized cost is modified without this resulting in derecognition, a gain or loss, calculated as the difference between the original contractual cash flows and the modified cash flows discounted at the original effective interest rate, and should be recognized in profit or loss.

The adoption of the amendment had no impact on the condensed interim Financial Statements of the Group and the Company.

IFRIC 23, Uncertainty over Income Tax Treatments

The interpretation clarifies the application of the recognition and measurement requirements in IAS 12 'Income Taxes' when there is uncertainty over income tax treatments. In such a circumstance, recognition and measurement of current or deferred tax asset or liability according to IAS 12 is based on taxable profit (tax loss), tax bases, unused tax losses and tax credits and tax rates determined applying IFRIC 23.

According to the interpretation, each uncertain tax treatment is considered separately or together as a group, depending on which approach better predicts the resolution of the uncertainty and the entity should assume that a tax authority with the right to examine tax treatments will examine them and will have full knowledge of all relevant information.

If an entity concludes it is probable that the taxation authority will accept an uncertain tax treatment, it should determine its accounting for income taxes consistently with that tax treatment. If it concludes that it is not probable that the treatment will be accepted, the effect of the uncertainty in its income tax accounting should be reflected in the period in which that determination is made, using the method that best predicts the resolution of the uncertainty (i.e. the most likely amount or the expected value method).

Judgments and estimates made for the recognition and measurement of the effect of uncertain tax treatments should be reassessed whenever circumstances change or new information that affects those judgments arise (e.g. actions by the tax authority, evidence that it has taken a particular position in connection with a similar item or the expiry of its right to examine a particular tax treatment).

The adoption of the interpretation had no impact on the condensed interim Financial Statements of the Group and the Company.

IFRS 16, Leases

IFRS 16, which supersedes IAS 17 'Leases' and related interpretations, introduces a single, on Statement of Financial Position lease accounting model for lessees, under which the classification of leases for a lessee, as either operating leases or finance leases, is eliminated and all leases are treated similarly to finance leases under IAS 17.

The definition of a lease under IFRS 16 mainly relates to the concept of control. The new standard distinguishes between leases and service contracts on the basis of whether the use of an identified asset is controlled by the customer. Control is considered to exist if the customer has:

• The right to obtain substantially all of the economic benefits from the use of an identified asset, and
• The right to direct the use of that asset.

IFRS 16 provides for the recognition of a 'right-of-use-asset' and a 'lease liability' upon lease commencement in case that there is a contract, or part of a contract, that conveys to the lessee the right to use an asset for a period of time in exchange for a consideration.

The right-of-use-asset is, initially, measured at cost, consisting of the amount of the lease liability, plus any lease payments made to the lessor at or before the commencement date less any lease incentives received, the initial estimate of restoration costs and any initial direct costs incurred by the lessee and, subsequently, at cost less accumulated depreciation and impairment. The lease liability is initially recognized at an amount equal to the present value of the lease payments during the lease term that are not yet paid.

Consequently, the typical straight line operating lease expense of operating leases under IAS 17 is replaced by the depreciation charge of the 'right-of-use-asset' and the interest expense on the 'lease liability'. The recognition of assets and liabilities by lessees, as described above, is not required for certain short term leases and leases of low value assets. The accounting treatment for lessors is not substantially affected by the requirements of IFRS 16.

Lessee Accounting

In accordance with IFRS 16, at the commencement date of the lease, The Company and the Group as a lessee recognizes right-of-use assets and lease liabilities in the statement of interim financial position, initially measured at the present value of the future lease payments. The Company and the Group applies this initial measurement principle to all leases, except for those with lease term of 12 months or less - making use of the short-term leases and leases of lowvalue assets exemptions.

With regard to subsequent measurement, the Company and the Group, acting as a lessee, applies the cost model for the measurement of right-of-use asset. Accordingly, the right-of-use asset will be measured at cost less any accumulated depreciation and accumulated impairment losses and adjusted for the re-measurement of the lease liability.

On the other hand, interest expense is recognized on the lease liabilities, while their carrying amount is reduced to reflect the lease payments made. In case of any reassessments or lease modifications specified, the carrying amount of the lease liabilities will be re-measured to reflect revised lease payments.

For the change in the accounting principle and method, see 3d "Changes in accounting policies and methods".

The adoption of the new Standard had no impact on the Group and the Company as Lessor.

IAS 28, Amendment – Long Term Interests in Associates and Joint Ventures

The amendment clarifies that IFRS 9 'Financial Instruments' including its impairment requirements, applies to long term interests in associates or joint ventures that form part of the entity's net investment in the associate or joint venture but are not accounted for using equity accounting.

According to the amendment, an entity should not take into account any adjustments to the carrying amount of long term interests (net investment in the associate or joint venture), resulting from the application of IAS 28 'Investments in Associates and Joint Ventures' when applying IFRS 9.

The adoption of the amendment had no impact on the condensed interim Financial Statements of the Group and the Company.

IAS 19, Amendment – Plan Amendment, Curtailment or Settlement

The amendment clarifies that when a change to a defined benefit plan i.e. an amendment, curtailment or settlement takes place and a re-measurement of the net defined benefit liability or asset is required, the updated actuarial assumptions from the re-measurement should be used to determine current service cost and net interest for the remainder of the reporting period after the change to the plan. Additionally, the amendment includes clarifications about the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling.

The adoption of the amendment had no impact on the condensed interim Financial Statements of the Group and the Company.

Annual Improvements to IFRSs 2015-2018 Cycle

The improvements introduce key changes to several standards as set out below:

The amendments to IFRS 3 'Business Combinations' and IFRS 11 'Joint Arrangements' clarified how an entity accounts for increasing its interest in a joint operation that meets the definition of a business. Specifically, when an entity obtains control of a business that is a joint operation, then the transaction constitutes a business combination achieved in stages and the acquiring party remeasures the entire previously held interest in the assets and liabilities of the joint operation at fair value. Conversely, if a party obtains joint control, of a business that is a joint operation then the previously held interest is not re-measured.

The improvement to IAS 12 'Income Taxes' clarified that all income tax consequences of dividends, including payments on financial instruments classified as equity, should be recognized in profit or loss, other comprehensive income or equity, according to where the originating transaction or event that generated distributable profits giving rise to the dividend, was recognized.

IAS 23 'Borrowing costs' amendment clarified that any borrowing originally performed to develop a qualifying asset should be treated as part of the funds that the entity borrowed generally, when substantially all of the activities necessary to prepare that asset for its intended use or sale are complete.

The adoption of the amendments had no impact on the condensed interim Financial Statements of the Group and the Company.

3c. New Standards and Interpretations effective in subsequent periods

The following new Standards and Interpretations are effective in subsequent periods.

Amendments to References to the Conceptual Framework in IFRS Standards (effective 1 January 2020)

In March 2018, the IASB issued its revised Conceptual Framework. This replaces the previous version of the Conceptual Framework issued in 2010. Revisions performed by IASB introduced a new chapter of measurement, updated definitions of an asset/liability and recognition criteria, as well as clarifications on important areas.

The adoption of the amendments is not expected to impact the Financial Statements of the Group and the Company.

Amendment to IFRS 3 Business Combinations (effective 1 January 2020)

The IASB issued amendments to the definition of a business in IFRS 3 "Business Combinations" to help entities determine whether an acquired set of activities and assets is a business or not. They clarify the minimum requirements for a business, remove the assessment of whether market participants are capable of replacing any missing elements, and add guidance to help entities assess whether an acquired process is substantive, narrow the definitions of a business and of outputs, and introduce an optional fair value concentration test.

The adoption of the amendments is not expected to impact the Financial Statements of the Group and the Company.

Amendments to IAS 1 and IAS 8: Definition of Material (effective 1 January 2020)

The amendments to IAS 1 "Presentation of Financial Statements" and IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" aim to align the definition of 'material' across the standards and to clarify certain aspects of the definition. According to the new definition an information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose Financial Statements make on the basis of those Financial Statements, which provide financial information about a specific reporting entity. The amendments clarify that materiality will depend on the nature or magnitude of information, or both.

The adoption of the amendments is not expected to impact the Financial Statements of the Group and the Company.

IFRS 17, Insurance Contracts (effective 1 January 2021)

IFRS 17 is not relevant to the activities of the Group and the Company.

3d. Changes in accounting policies and methods

IFRS 16, which supersedes IAS 17 'Leases' and related interpretations, introduces a single, on Statement of Financial Position lease accounting model for lessees, under which the classification of leases for a lessee, as either operating leases or finance leases, is eliminated and all leases are treated similarly to finance leases under IAS 17.

Transition to IFRS 16

Group, applied the new standard, from its mandatory adoption date, 1st January 2019. The transition method elected, is the simplified transition approach, under which, there is no restatement of the previous comparative amounts, for the year prior to the first adoption of the new standard. Exclusions permitted from the new standard, are expected to be applied, for lease contracts with duration less than 12 months, from the application date, and for lease contracts with right of use asset of low value and short-term contracts.

Due to change in accounting policy and method, captions of the Statement of Financial Position were impacted. More specifically, for the lease obligations that fall within the scope of IFRS 16, the Group recognized as at 1 January 2019: rights of use of assets € 475.482, long-term leased liabilities € 381.841 and short-term leased liabilities € 93.641 (Company: rights of use of assets € 455.357, long-term leased liabilities € 374.326 and short-term leased liabilities € 81.011) without any impact in Equity.

Lessee Accounting

In accordance with IFRS 16, at the commencement date of the lease, the Company and the Group as a lessee recognized right-of-use assets and lease liabilities in the statement of interim financial position, initially measured at the present value of the future lease payments. The Company and the Group applies this initial measurement principle to all leases, except for those with lease term of 12 months or less - making use of the short-term leases and leases of lowvalue assets exemptions. The Group applied a uniform discount rate on the lease contracts portfolio that had similar characteristics.

The Company and the Group on 1 January 2019 and 30 June 2019 recognized the following rights to use leased assets:

Tangible Assets

	Buildings &
Group	Installations	Motor Vehicles	Total
Balance 1 January 2019	277.362	198.120	475.482
Balance 30 June 2019	248.953	198.427	447.380
	Buildings &
Company	Installations	Motor Vehicles	Total
Balance 1 January 2019	257.217	198.120	455.337
Balance 30 June 2019	235.170	198.427	433.597

The EBITDA for the Group increased by approximately € 56.716 (Company: € 50.116). This is because operating lease payments were included in EBITDA, but the depreciation of rights of use assets and interest on lease liabilities are not included in its measurement. The above depreciation for the Group amounted to € 51.874 (Company: € 45.531), while the aforementioned interest amounted to € 8.757 (Company: € 8.542).

Regarding the subsequent measurement, the Group, acting as a lessee, will apply the cost method for measuring the rights of use of the leased assets. Therefore, the right of use leased assets will be measured at cost after deduction of accumulated depreciation and accumulated impairment losses and will be adjusted due to the revaluation of the lease liability. On the other hand, interest expense on lease liabilities will be recognized, while their carrying amount will be reduced to reflect lease payments. In the event of revaluations or amendments, the carrying amount of the lease liabilities is restated to reflect revised leases.

The table below shows the reconciliation between commitments from operating leases as disclosed in IAS.17 in the Financial Statements for the year ended 31 December 2018, and lease liabilities recognized in accordance with IFRS 16:

Adjustments recognized on adoption of IFRS 16

The lease obligations as of 1 January 2019 can be reconciled with the operating leases of 31 December 2018 as shown below:

(amounts in Euro thousands)	Group	Company
Operating lease commitments disclosed on 31.12.2018	521.806	500.906
(Less): short-term leases on 1.1.2019	0	0
Non-discounted lease liabilities 1.1.2019	521.506	500.906
Discounted rate on 1.1.2019	3%-5%	3%-5%
Lease liability recognized on 1.1.2019	475.482	455.337

The small discrepancy in the Group is due to differences in valuation of the foreign currency.

4. Important Accounting Principles and Methods

For the preparation of the Financial Statements the significant assumptions that have been adopted by the Management for the application of the accounting principles as well as the estimates for the sources of risks are the same with those that have been adopted and estimated respectively in the published annual Financial Statements for the year ended as at 31 December 2018.

5. Other Information

5.1 Consolidated Financial Statements

For the first semester of 2019 the consolidated financial statements that was prepared, include the financial figures of the subsidiaries AS COMPANY CYPRUS LTD and AS KIDS TOYS S.R.L.

«AS COMPANY CYPRUS LTD» operates in Cyprus, with 100% participation , date of initial consolidation 05.05.2016 using the full consolidation method.

«AS KIDS TOYS S.R.L.» was founded on March 2018. Until 30 June 2018 the subsidiary had no commercial activity. For that reason the financial results of the subsidiary in Romania were not concluded in the consolidation in the first semester of 2018 but only in the annual of 2018.

5.2 Seasonality of activities

The demand from our customers for the Group products is subject to seasonal fluctuations. Most of the customers are selling their products purchased by the Company and its affiliates during the Christmas time, so collections in the second half of the year are significantly higher than in the first half.

6. Operating Segments

The following information refers to the Company's Operating Segments, which are reported separately in the Financial Statements.

The Operating Segments are defined in accordance with the Company's and Group's structure and refer mainly to the separation of the Group's activity in Greece and abroad. Based on this separation those responsible for the financial decision making, monitor the financial information separately as disclosed by the Company and each of its subsidiaries included in the consolidation respectively.

The responsible bodies for taking and monitoring the relevant decisions are the Managing Director and the General Manager.

Primary sector of information - business sectors

AS COMMERCIAL INDUSTRIAL COMPANY OF COMPUTERS AND TOYS S.A. is operating in the import, manufacture and trading of toys industry for the Greek market. The Company currently owns approximately 1.500 game codes in the Bebe, School, Preschool, Table, Puzzle, Season, Sports, Pulp, Electronics, Computer, Outdoor and Wagon categories.

The Company collaborates with the best international manufacturers and suppliers of toys, such as Clementoni, Silverlit, Famosa, Ty, IMC, HTI, Golliath, Piatnik, etc. as the safety and quality of products are key principles governing its business operations.

These principles are utmost importance in a Company that deals with kids and their entertainment. The Company is committed to safety and quality and with care for kids and their needs, the Company will continue to create innovative products that will contribute to their balanced growth, childcare and entertainment.

Secondary information sector – geographical segments

The turnover from the toy and computer operations for kids and the turnover as the exclusive distributor on 30.06.2019 for imported kids clothing of the Italian IDEXE Company is analysed by geographical area as follows:

	Group		Company
	1.01 to 30.06.2019	1.01 to 30.06.2018	1.01 to 30.06.2019	1.01 to 30.06.2018
Sales of goods local	9.917.214	10.901.578	9.917.214	10.901.578
Sales of good abroad	940.694	1.042.454	635.039	845.517
TOTAL	10.857.908	11.944.032	10.552.253	11.747.095

Sales abroad represent 8,7% of total consolidated sales for the current year as of the same period in 2018.

7. Other Explanatory Information

7.1 Property, plant and equipment

Property, plant and equipment for the Group and the Company as of 30 June 2019 and 31 December 2018 are analysed as follows:

	Group			Company
Account description	30.06.2019	31.12.2018	30.06.2019	31.12.2018
Land	1.947.228	1.947.228	1.947.228	1.947.228
Buildings and building installations	3.046.202	3.186.719	3.046.202	3.186.719
Machinery and technical installations	6	262	6	262
Transportation	39.461	33.004	39.461	33.004
Furniture and Fixtures	121.458	94.338	110.697	81.621
	5.154.355	5.261.550	5.143.595	5.248.834

The investments of the Company in fixed assets during the period from 01.01.2019 to 30.06.2019 amounted to € 91.883.

The rights of use leased assets of the Group and the Company's on 30 June 2019 and 31 December 2018 are analyzed as follows:

	Group		Company
Περιγραφή λογαριασμού	30.06.2019	31.12.2018	30.06.2019	31.12.2018
Right of use of leased buildings	248.953	0	235.170	0
Right of used of leased vehicles	198.427	0	198.427	0
	447.380	0	433.597	0

There are no encumbrances on the Company's buildings.

7.2 Participations in subsidiaries

Participations in subsidiaries for the Group and the Company on 30 June 2019 and 31 December 2018 are analysed as follows:

	Group		Company
Account description	30.06.2019	31.12.2018	30.06.2019	31.12.2018
AS COMPANY CYPRUS LTD.	0	0	150.000	150.000
AS KIDS TOYS S.R.L	0	0	400.000	400,000
	0	0	550.000	550.000

"AS COMPANY CYPRUS LTD" is governed by and operates under Cypriot Law in the form of a Limited Liability Company. The subsidiary was established in May 2016 with an initial capital of € 150.000, which was 100% covered by the parent company.

"AS KIDS TOYS SRL" is governed by and operates under Romanian Law in the form of a Limited Liability Company. The subsidiary was established in February 2018 with an initial capital of € 400.000, which was 100% covered by the parent company.

7.3 Inventories

The Group's and the Company's Inventories on 30 June 2019 and 31 December 2018 are analysed as follows:

	Group		Company
Account description	30.06.2019	31.12.2018	30.06.2019	31.12.2018
Merchandises	5.322.644	4.363.632	5.286.612	4.168.118
Less: Provisions for inventory obsolescence	-623.225	-623.225	-623.225	-623.225
Raw and auxiliary materials – Packing materials	12.448	13.507	12.448	13.507
Advances for inventory purchases	441.076	1.372.201	441.076	1.372.201
	5.152.943	5.126.115	5.116.911	4.930.601

The provision for inventory obsolescence of € 623.255 cover the Company's slow moving and low sales level inventory of the Company. The advances for inventory purchases refer to orders of imported goods from abroad.

7.4 Accounts receivables

Accounts receivables for the Group and the Company on 30 June 2019 and 31 December 2018 are analyzed as follows:

	Group		Company
Account description	30.06.2019	31.12.2018	30.06.2019	31.12.2018
Trade debtors	3.224.108	3.158.688	2.929.874	2.608.087
Less : Provisions for impairment	-94.384	-94.384	-94.384	-94.384
Cheques receivables	8.760.125	7.341.735	8.760.125	7.341.735
Notes Receivable	380.516	183.394	380.516	183.394
	12.270.366	10.589.434	11.976.132	10.038.833

The provisions for impairment of accounts receivables of € 94.384 cover all potential losses of the Company from non-collection of doubtful debts.

7.5 Investments at fair value through P&L

Investments at fair value through P&L for the Group and the Company on 30.06.2019 and 31.12.2018 are analysed as follows:

	Group		Company
	30.06.2019	31.12.2018	30.06.2019	31.12.2018
Shares listed on the Athens Stock Exchange	-	17.406	-	17.406
Other investments domestic	141.000	141.000	141.000	141.000
Foreign Mutual Funds	615.290	1.475.915	615.290	1.475.915
Other investments abroad – structured products	6.184.148	3.908.102	6.184.148	3.908.102
Provisions for impairment of investments	176.554	- 205.989	176.554	- 205.989
	7.116.993	5.336.434	7.116.993	5.336.434

The valuation of bonds and securities as of 30.06.2019 amounted to € 186.961 which was charged against the Profit and Loss Account and the accrued interest income amounted to € 26.811.

Fair value and hierarchy of fair values

The Group and the Company apply the below hierarchy for the measurement and disclosure of the fair value of the assets and liabilities:

• Level 1: Quoted prices (unadjusted) for financial assets that are negotiated in active markets.
• Level 2: Observable data for the asset and liabilities valuated, other than quoted prices included within Level 1, such as quoted prices for similar assets, quoted prices in non-active markets or other assets that are either observable or can be supported by observable assets (for example prices that result from observable data), for almost all of the total duration of the financial instrument.
• Level 3: Inputs for the asset and liabilities valuated that are not based in observable market data (unobservable data). If for the measurement of fair value, observable data are used which require significant adjustments that are based on unobservable data, the fair value is categorized in Level 3. Level 3 contains financial instruments, whose value is measured by using valuation models, discounted cash flows and similar techniques and products for which the measurement of fair value requires significant judgment or estimation by the Management.

The Group's and the Company's financial instruments are categorized in Level 1.

7.6 Cash and cash equivalents

Cash and cash equivalents for the Company and the Group on 30 June 2019 and 31 December 2018 are analyzed as follows:

		Group		Company
Account description	30.06.2019	31.12.2018	30.06.2019	31.12.2018
Cash in hand	29.208	32.510	29.208	32.510
Deposits and time deposits	6.009.258	8.359.518	4.891.404	7.711.362
Total	6.038.466	8.392.027	4.920.611	7.743.872

The analysis of cash and cash equivalents by currency is as follows:

	Group		Company
Account description	30.06.2019	31.12.2018	30.06.2019	31.12.2018
EUR	4.802.741	6.717.106	3.837.219	6.330.589
Other currencies	1.235.725	1.674.921	1.083.392	1.413.283
Total	6.038.466	8.392.027	4.920.611	7.743.872

7.7 Share capital

By the decision dated 21.06.2019 of the Ordinary General Meeting of Shareholders of the Company it was decided the reduction of its share capital by € 918.821,40 and the respective amendment of the article 5 of the Company's Articles of Association concerning share capital. The share capital reduction took place through the decrease of the nominal value of each common registered share by the amount of seven cents (€ 0,07) per share, from € 0,56 to € 0,49, and the return of the share capital through cash payment to the shareholders € 0,07 per share. Following the above mentioned decrease, the Company's share capital amounts to € 6.431.749,80, divided into thirteen million one hundred twenty six thousand and twenty (13.126.020) common registered shares of a nominal value of € 0,49 each.

On 24.07.2019 it was uploaded in the General Electronic Commercial Registry the decision No. 77591 / 24.07.2019 of the Ministry of Economy, Development and Tourism, which approved the amendment of article 5 of the Articles of Association of the Company.

The Corporate Acts Committee of the Athens Stock Exchange was informed at its meeting on 31.07.2019 of the share capital reduction for the purpose of returning cash to shareholders, amounting to € 0.07 per share, as well as for the relevant amendment of Article 5 of the Articles of Association. of the company. The reduction of the Company's share capital by € 918,821,40 was completed in September 2019.

7.8 Turnover

Turnover for the Group and the Company on 30 June 2019 and 30 June 2018 is analyzed as:

	Group		Company
	1.01 to 30.06.2019	1.01 to 30.06.2018	1.01 to 30.06.2019	1.01 to 30.06.2018
Domestic wholesales of merchandises	9.411.636	10.384.524	9.411.636	10.384.524
Wholesales of merchandises in EU	800.160	715.118	494.505	518.181
Wholesales of merchandises in Third Countries	140.534	327.336	140.534	327.336
Retail sales of merchandises	505.064	515.866	505.064	515.866
Sales of other stock and scrap	514	1.188	514	1.188
TOTAL	10.857.908	11.944.032	10.552.253	11.747.095

Interim Financial Report of the period from 1 January 2019 to 30 June 2019 Sales of AS COMPANY Cyprus Ltd and AS KIDS S.R.L come 100% from the wholesales channel and in the table above they have been included in the Wholesales of merchandises in EU.

The Company is operating in the wholesale trade of toys for kids and was the exclusive distributor for the imported kids clothing of the well-known Italian company IDEXE until 31/07/2019.

The turnover of the retail sales represents 4,7% of the Company's total sales as compared to 4.4% of the previous year.

The subsidiaries in Cyprus and Romania are operating in the wholesale trade of toys for kids.

7.9 Administrative expenses

Administrative expenses for the Company and the Group on 30 June 2019 and 30 June 2018 are analyzed as follows:

	Group		Company
	1.01 to	1.01 to	1.01 to	1.01 to
Account description Personnel expenses	30.06.2019 529.478	30.06.2018 486.555	30.06.2019 492.217	30.06.2018 454.466
Third party fees and expenses	197.288	177.187	166.799	165.097
Utilities	78.351	53.913	75.231	49.706
Taxes and duties	12.482	20.412	12.482	20.412
Miscellaneous expenses	114.752	175.709	105.626	168.215
Other operating provisions	4.622	3.141	4.622	3.141
Other income - expenses	31.303	0	31.303	0
	968.276	916.916	888.279	861.036

7.10 Distribution expenses

Distribution expenses for the Company and the Group on 30 June 2019 and 30 June 2018 are analyzed as follows:

	Group		Company
Account description	1.01 to 30.06.2019	1.01 to 30.06.2018	1.01 to 30.06.2019	1.01 to 30.06.2018
Personnel expenses	1.069.080	953.864	1.026.793	929.903
Third party fees	391.251	610.808	382.360	610.808
Utilities	145.685	216.594	145.685	216.594
Taxes and duties	33.122	24.603	33.122	24.603
Miscellaneous expenses	673.762	567.077	648.258	567.077
Other operating provisions	13.752	0	13.752	0
Other income - expenses	-92.050	23.818	-92.050	23.819
	2.234.601	2.396.764	2.157.920	2.372.803

7.11 Research and development expenses

Research and development expenses for the Company and the Group on 30 June 2019 and 30 June 2018 are analyzed as follows:

	Group		Company
	1.01 to	1.01 to	1.01 to	1.01 to
Account description	30.06.2019	30.06.2018	30.06.2019	30.06.2018
Personnel expenses	73.875	55.214	73.875	55.214
Utilities	2.074	1.659	2.074	1.659
Taxes and duties	8	84	8	84
Miscellaneous expenses	6.822	3.157	6.822	3.157
Other operating Provisions	1.051	0	1.051	0
	83.831	60.114	83.831	60.114

7.12 Taxes

The taxes of the year for the Company and the Group on 30 June 2019 and 30 June 2018 are analyzed as follows:

	Group		Company
Account description	01.01 to 30.06.2019	1.01 to 30.06.2018	1.01 to 30.06.2019	1.01 to 30.06.2018
Income tax for the year	584.167	753.913	567.979	750.587
Income tax differences of previous year	20.734	0	20.734	0
Deferred taxes recognized in the Profit and Loss Account	89.310	-29.814	89.310	-29.814
	694.211	724.099	678.023	720.774

The corporate income tax rate for legal entities is 28%.

The Company has received unqualified tax compliance reports from its statutory auditor for each year from 2011 to 2017 in accordance with the Greek tax legislation (2011-2013 in accordance with the provisions of article 82 of Law 2238/1994 and 2014-2017 according to the provisions of article 65A of Law 4174/2013).

For the current period, the current income tax was calculated using a rate of 28%, while deferred tax was calculated using rates from 25% to 28% under applicable law 4579/2018 (FEK A '201/ 03.12.2018), which amended the Income Tax Code (Law 4172/2013) on corporate income tax, reducing the tax rate as follows:

• 28% for the year 2019
• 27% for the year 2020
• 26% for the year 2021
• 25% for the year 2022 and afterwards.

It should be noted that as at 31.12.2018 the years up to 31.12.2012 were statutorily barred according to the provisions of paragraph 1 of article 36 of Law 4174/2013. The Company until today has not received any audit mandate from the tax authorities for the years 2013 to 2018.

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

Company	Headquarters	Unaudited tax years
AS COMPANY S.A.	Greece	2019
AS COMPANY CYPRUS LTD.	Cyprus	2016 - 2019
AS KIDS S.R.L.	Romania	2018 - 2019

The tax rates used in the countries where the Group operates are presented as follows:

Country	Income Tax rate
Greece	28,0%
Cyprus	12,5%
Romania	16,0%

We estimate that in case of a tax audit of the subsidiaries in Cyprus and Romania, any additional tax liabilities that may arise, will not have any material effect on the Financial Statements

8. Commitments and contingent liabilities

(a) The subsidiary AS KIDS TOYS S.R.L. concluded a credit line agreement with ALPHA BANK ROMANIA S.A., under the terms of the Romanian Bank System. The Company provided guarantee over the subsidiary by the form of a letter of guarantee issued by ALPHA BANK AE, amounted to € 700.000 to ALPHA BANK ROMANIA S.A.. Until the date of the Financial Statements publication, the credit line has not been used by the subsidiary.

• (b) There is a € 1,000,000 Parent Guarantee in favor of the subsidiary in Cyprus to finance working capital where necessary. The subsidiary in Cyprus did not make any use of borrowed funds in 2019.
• (c) There are no court or arbitration disputes of the company, as well as court or arbitrary bodies decisions that have or may have a significant impact in the financial position or operation of the Company.

9. Earnings per share

The earnings per share of the Company are calculated after dividing the total comprehensive income after taxes of the period by the weighted average number of shares that were outstanding during the period as follows:

	01.01 - 30.06.2019	01.01 - 30.06.2018
Total Comprehensive Income after taxes attributable to the shareholders	1.650.183	1.867.458,00
Weighted average number of shares	13.126.020	13.126.020
Earnings per share	0,126	0,142

10. Subsequent events after the date of the Financial Position

On 31 July 2019, following the Company's Management decision in 2018, the Company proceeded with the termination of 4 leased retail stores that it maintained in order to focus on its main activity. The Company maintains only the retail store which operates in its headquarters in Oraiokastro, Thessaloniki.

On 6.9.2019 (the cut-off date) the Company's shares were negotiable on the ATHEX. with the new nominal value of € 0.49 per share, without the right to participate in cash return to shareholders of € 0.07 per share. By the same date, the starting price of the Company's shares on the ATHEX. was formulated in accordance with the Athens Stock Exchange Regulation in conjunction with the no. 26 decision of the ATHEX Board of Directors as applicable. The beneficiaries of the return were the shareholders registered in the S.A.T archives on 9.9.2019 (beneficiary identification date - record date). The due date for the return of the capital was set on Friday, 13.09.2019 and the payment was made through the Bank "Eurobank Ergasias SA".

Thessaloniki, 27 September 2019

CHAIRMAN OF B.O.D. & MANAGING DIRECTOR

VICE-CHAIRMAN OF B.O.D.

EFSTRATIOS Κ. ANDREADIS Identification Card No. ΑΒ 691316

ANASTASIA Ε. ANDREADOU Identification Card No. ΑΗ 181790

CHIEF FINANCIAL OFFICER

PANAGIOTIS V. PAPASPYROU Identification Card No. ΑΕ 032224 License : 0019079 A' Class