Folli Follie S.A.

Quarterly Report • Sep 30, 2015

Company name: FOLLI-FOLLIE AE Registered Office: 23rd Km Athens - Lamia National Road - Ag. Stefanos Supervisory Authority: MINISTRY OF DEVELOPMENT/General Secretariat of Commerce, Societes Anonymes of the Ministry of Development Board of Directors: Dimitrios Koutsolioutos - Georgios Koutsolioutsos Aikaterini Koutsolioutsou - Zaharias Mantzavinos Elias Kouloukountis - Haralambos Papadopoulos Closing Date of Current Year: 31 December 2006 Auditing Company: SOL S.A. Certified Public Accountants Auditors ASSOCIATED CERTIFIED PUBLIC ACCOUNTANTS Certified Public Accountant Auditor: Dimitrios I. Iakovidis

Type of Auditors' Report: Not obliged DATA FROM CASH FLOW STATEMENT BALANCE SHEET

	THE GROUP		THE COMPANY			THE GROUP		THE COMPANY
	1/1-31/3/2006	1/1-31/3/2005	1/1-31/3/2006	1/1-31/3/2005		31/3/2006	31/12/2005	31/3/2006	31/12/2005
Cash Flows related to Operating Activities					ASSETS
Net Profit before taxes	20,624,397.14	19,834,718.90	2,556,651.12	4,963,744.91	Tangible Assets	28,868,503.95	29,269,571.73	16,990,387.68	17,175,960.39
Adjustments in respect of non-cash transactions:					Investments in PPE	15,380,000.00	15,380,000.00	15,380,000.00	15,380,000.00
Depreciation and Amortisation	893,399.85	842,020.09	250,928.58	265,628.67	Intangible Assets	4,367,003.69	4,185,089.70	727,592.81	750,442.44
Provisions	301,958.83	353,759.68	60,000.00	10,689.39	Investments in associates	41,754,946.33	40,395,445.88	159,505,501.95	159,505,501.95
Cash flows from investing activities	-1,697,411.74	-1,554,997.56	-452,591.83	-395,226.60	Deferred income tax assets	2,574,566.69	2,660,750.50	545,325.53	703,225.42
Debit interest and similar expenses	1,271,855.80	767,285.25	1,215,738.30	1,110,943.92	Other long term receivables	6,688,107.36	6,838,204.67	277,222.55	419,574.43
Operating profit before adjustments of working capital	21,394,199.88	20,242,786.36	3,630,726.17	5,955,780.29	Total non-current assets (a)	99,633,128.02	98,729,062.48	193,426,030.52	193,934,704.63
Decrease/(increase) of Inventories	-1,793,075.89	2,374,245.05	467,526.73	548,421.48	Inventories	71,046,134.67	71,758,888.21	13,666,838.81	14,134,365.54
Decrease/(increase) of Receivables	-7,843,155.70	-6,216,655.72	-2,109,390.99	-7,352,685.85	Trade Receivables	125,331,689.12	121,290,148.36	20,975,186.04	18,872,475.88
Increase/(decrease) of payable accounts (except Banks)	4,564,897.50	-2,491,295.99	-1,844,238.84	281,375.58	Other Receivables	6,251,803.29	6,199,578.58	4,416,990.76	2,395,951.33
Interest paid and similar expenses	-1,383,726.02	-1,170,298.54	-1,292,562.05	-1,110,943.92	Other financial assets at fair value through profit or loss	1,402,171.74	2,921,508.63	1,402,171.74	2,921,508.63
Income Tax paid	-1,389,039.40	-1,592,403.29	-41,352.27	-127,262.46	Cash and cash equivalents	48,394,775.96	33,892,169.63	11,062,585.54	13,247,662.22
Net cash inflows/(outflows) from Operating Activities	13,550,100.37	11,146,377.87	-1,189,291.25	-1,805,314.88	Total current assets (b)	252,426,574.78	236,062,293.41	51,523,772.89	51,571,963.60
Cash Flows related to Investing Activities					TOTAL ASSETS (a) + (b)	352,059,702.80	334,791,355.89	244,949,803.41	245,506,668.23
Acquisition of subsidiaries, associates and other investments	-2,014,358.00	0.00	-2,014,358.00	0.00
Purchases of tangible and intangible assets	-1,360,085.50	-310,085.70	-46,730.97	-51,927.06	LIABILITIES
Proceeds from sale of tangible and intangible assets	109,912.02	6,830.16	15,000.00	0.00	Non-current liabilities
Proceeds from sale of financial assets	1,961,153.98	658,687.40	1,961,153.98	658,687.40	Long-term borrowings	124,883,269.34	125,149,592.17	119,499,958.91	119,499,958.91
Dividends received					Retirement benefit obligations	3,366,298.67	3,356,944.74	546,390.10	540,126.00
Interest received	111,870.22	403,013.29	76,823.75	71,007.75	Deferred income tax liabilities	1,078,565.79	1,047,943.78	1,069,871.38	1,035,080.14
Decrease/(increase) of other long-term receivables	-204,864.69	2,128,143.89	142,351.88	-3,684.68	Provisions for other liabilities and charges	6,111,001.30	4,054,878.43	882,772.82	698,272.82
Net cash inflows/(outflows) from Investing Activities	-1,396,371.97	2,886,589.04	134,240.64	674,083.41	Total non-current liabilities	135,439,135.10	133,609,359.12	121,998,993.21	121,773,437.87
Cash Flows related to Financing Activities					Current liabilities
Cash received from issue of share capital					Trade payables	18,675,248.39	15,829,100.60	1,724,675.83	3,487,817.55
Proceeds from borrowings	606,178.51	0.00	1,846.81	0.00	Short-term Borrowings	4,986,785.66	5,047,457.92	4,865,342.43	4,863,495.62
Repayment of borrowings	0.00	-1,001,148.26	0.00	-772,546.30	Other current liabilities	19,644,280.78	18,332,977.03	5,328,604.36	6,052,479.60
Payments for leases	-194,333.36	-185,416.09	-31,494.02	-30,664.26	Total current liabilities	43,306,314.83	39,209,535.55	11,918,622.62	14,403,792.77
Dividends paid	-1,100,378.86	-2,700,008.28	-1,100,378.86	-2,700,008.28	Total Liabilities (a)	178,745,449.93	172,818,894.67	133,917,615.83	136,177,230.64
Net cash inflows/(outflows) from Financing Activities	-688,533.71	-3,886,572.63	-1,130,026.07	-3,503,218.84	EQUITY
Net increase/(decrease) in cash and cash equivalents	11,465,194.69	10,146,394.28	-2,185,076.68	-4,634,450.31	Share capital	9,884,062.50	9,884,062.50	9,884,062.50	9,884,062.50
Cash and cash equivalents at the beginning of the year	33,892,169.63	33,723,558.93	13,247,662.22	14,509,511.69	Share premium	62,531,731.47	62,531,731.47	62,531,731.47	62,531,731.47
Effect of exchange rate changes on cash and cash equivalents	3,037,411.64	-4,197,525.34			Other reserves	25,007,935.03	24,513,525.66	19,679,018.84	19,679,018.84
Cash and cash equivalents at the end of the year	48,394,775.96	39,672,427.87	11,062,585.54	9,875,061.38	Retained earnings	177,164,239.31	161,106,539.24	18,937,374.77	17,234,624.78
					Exchange differences	-18,191,927.75	-12,980,009.96
					Other capital and reserves attributable to equity holders of the Company	-88,927,927.73	-88,927,927.73

Total capital and reserves attributable to equity holders of the Company (b) 167,468,112.83 156,127,921.18 111,032,187.58 109,329,437.59

Minority interest (c) 5,846,140.04 5,844,540.04

48,394,775.96 39,672,427.87 11,062,585.54 9,875,061.38 Total Equity (d) = (b)+(c) 173,314,252.87 161,972,461.22 111,032,187.58 109,329,437.59

TOTAL EQUITY AND LIABILITIES (e) ⁼ (a)+(d) 352,059,702.80 334,791,355.89 244,949,803.41 245,506,668.23

	THE GROUP		THE COMPANY
	1/1-31/3/2006	1/1-31/3/2005	1/1-31/3/2006	1/1-31/3/2005
Sales Revenue	61,850,766.57	53,330,735.91	10,170,334.41	11,625,135.36
Cost of goods sold	-24,200,409.09	-21,302,874.54	-3,282,299.35	-3,814,278.72
Gross profit	37,650,357.48	32,027,861.37	6,888,035.06	7,810,856.64
Other operating income	778,424.46	1,395,347.35	443,765.40	1,019,710.79
Administrative expenses	-3,083,962.56	-2,925,005.96	-1,201,161.91	-981,577.50
Selling and marketing costs	-14,885,516.04	-10,842,056.73	-2,663,945.85	-2,147,176.48
Other expenses	-370,267.08	-293,291.20	-154,567.56	-22,347.22
Operating profit	20,089,036.26	19,362,854.83	3,312,125.14	5,679,466.23
Profit before taxes (EBT)	20,624,397.14	19,834,718.90	2,556,651.12	4,963,744.91

BLUEFOL GUAM LTD	GUAM	99.99%	Indirect	Full	1999-2005		THE GROUP		THE COMPANY
BLUEFOL HAWAII LTD	HAWAII	99.99%	Indirect	Full	2000-2005	Net equity of period	31/3/2006	31/3/2005	31/3/2006	31/3/2005
BLUEFOL HONG KONG LTD	HONG KONG	99.99%	Indirect	Full	2001-2005	Opening Balance (1/1/2006 and 1/1/2005 respectively)	161,972,461.22	95,908,062.29	109,329,437.59	101,349,048.11
FOLLI FOLLIE MALAYSIA LTD	KUALA LUMPUR	99.99%	Indirect	Full	2004-2005	Issue of share capital	0.00	0.00	0.00	0.00
BLUEFOL THAILAND LTD	BANGKOK	99.99%	Indirect	Full	2001-2005	Distribution of dividend based on resolution of G.M.	0.00	0.00	0.00	0.00
HELLENIC DUTY FREE SHOPS	ATHENS	24.68%	Direct	Net Equity		Directors' fees	0.00	0.00	0.00	0.00
						Change in participation percentage-Change in consolidation method	0.00	0.00	0.00	0.00
						Net income recognised directly in equity	0.00	0.00	0.00	0.00
						Profit for the period, after taxes	16,553,709.44	15,655,624.20	1,702,749.99	3,291,547.39
						Adjustment in foreign currency translation differences	-5,211,917.79	5,319,696.46	0.00	0.00
						Net equity of period Closing Balance	173,314,252.87	116,883,382.95	111,032,187.58	104,640,595.50
				Ag. Stefanos, 26/05/2006
THE CHAIRMAN OF THE BOARD OF DIRECTORS THE VICE CHAIRMAN OF THE B. OF D.					THE FINANCE - TAX ADVISOR	THE HEAD OF ACCOUNTS DEPT.

			RELATION		UN-AUDITED	Finance costs - profit	559,586.45	403,013.29	524,539.98	395,222.60
	REGISTERED		% PARTICIPATION THAT COMMANDED CONSOLIDATION		TAX	Finance costs - expenses	-1,383,726.02	-1,170,298.54	-1,280,014.00	-1,110,943.92
COMPANY	OFFICE	PARENT	THE CONSOLIDATION	METHOD	YEARS	Share of profit of associates	1,359,500.45	1,239,149.32	0.00	0.00
						Profit before taxes (EBT)	20,624,397.14	19,834,718.90	2,556,651.12	4,963,744.91
FOLLI FOLLIE A.E.	ATHENS	-	-		2005	Income tax expense	-4,070,687.70	-4,179,094.70	-853,901.13	-1,672,197.52
FOLLI FOLLIE HONG KONG LTD	HONG KONG	99.99%	Direct	Full	1999-2005	Profit for the period (after taxes)	16,553,709.44	15,655,624.20	1,702,749.99	3,291,547.39
FOLLI FOLLIE UK LTD	LONDON	99.99%	Direct	Full	2004-2005	Attributable to:
FOLLI FOLLIE FRANCE SA	PARIS	99.94%	Direct	Full	2003-2005	Equity holders of the Company	16,552,109.44	15,639,857.28
FOLLI FOLLIE SPAIN SA	MADRID	100%	Direct	Full	2002-2005	Minority interest	1,600.00	15,766.92
FOLLI FOLLIE CZECH SRO	PRAGUE	100%	Direct	Full	2001-2005	Earnings (after taxes) per share - basic (expressed in €)	0.50	0.47	0.05	0.10
FOLLI FOLLIE POLAND SZOO	WARSAW	100%	Direct	Full	2001-2005	Amortisation - Depreciation	893,399.85	842,020.09	250,928.58	265,628.67
FOLLI FOLLIE SLOVAKIA SRO	BRATISLAVA	100%	Direct	Full	2001-2005	Earnings (profit) before taxes, financing and investing results
FOLLI FOLLIE GERMANY Gmbh	TRAOUNSTAIN	100%	Direct	Full	2005	and depreciation - amortisation (EBITDA)	20,982,436.11	20,204,874.92	3,563,053.72	5,945,094.90
MFK FASHION INV. Ltd.	NICOSIA	100%	Direct	Full	2002-2005	Earnings (profit) before taxes, financing and investing results (EBIT)	20,089,036.26	19,362,854.83	3,312,125.14	5,679,466.23
FOLLI FOLLIE JAPAN LTD	TOKYO	40%	Direct	Full	2001-2005
FOLLI FOLLIE ASIA LTD FOLLI FOLLIE TAIWAN LTD	HONG KONG TAIPEI	99.99% 99.99%	Indirect Indirect	Full Full	2001-2005 2004-2005	DATA FROM STATEMENT OF CHANGES IN EQUITY FOR THE YEAR
FOLLI FOLLIE KOREA LTD	SEOUL	99.99%	Indirect	Full	2003-2005		Amounts reported in Euro
	SINGAPORE	99.99%	Indirect	Full	2004-2005
FOLLI FOLLIE SINGAPORE LTD
BLUEFOL GUAM LTD	GUAM	99.99%	Indirect	Full	1999-2005		THE GROUP		THE COMPANY
BLUEFOL HAWAII LTD	HAWAII	99.99%	Indirect	Full	2000-2005	Net equity of period	31/3/2006	31/3/2005	31/3/2006	31/3/2005
BLUEFOL HONG KONG LTD	HONG KONG	99.99%	Indirect	Full	2001-2005	Opening Balance (1/1/2006 and 1/1/2005 respectively)	161,972,461.22	95,908,062.29	109,329,437.59	101,349,048.11
FOLLI FOLLIE MALAYSIA LTD	KUALA LUMPUR	99.99%	Indirect	Full	2004-2005	Issue of share capital	0.00	0.00	0.00	0.00
BLUEFOL THAILAND LTD	BANGKOK	99.99%	Indirect	Full	2001-2005	Distribution of dividend based on resolution of G.M.	0.00	0.00	0.00	0.00
HELLENIC DUTY FREE SHOPS	ATHENS	24.68%	Direct	Net Equity		Directors' fees	0.00	0.00	0.00	0.00
						Change in participation percentage-Change in consolidation method	0.00	0.00	0.00	0.00
						Net income recognised directly in equity	0.00	0.00	0.00	0.00
						Profit for the period, after taxes	16,553,709.44	15,655,624.20	1,702,749.99	3,291,547.39
						Adjustment in foreign currency translation differences	-5,211,917.79	5,319,696.46	0.00	0.00
						Net equity of period Closing Balance	173,314,252.87	116,883,382.95	111,032,187.58	104,640,595.50
				Ag. Stefanos, 26/05/2006
THE CHAIRMAN OF THE BOARD OF DIRECTORS			THE VICE CHAIRMAN OF THE B. OF D.			THE FINANCE - TAX ADVISOR		THE HEAD OF ACCOUNTS DEPT.

ID.No. Ξ 433750 ID.No. Ρ 520955 H.E.C. Licence No. 0008211/A' Class

GEORGIOS D. KOUTSOLIOUTSOS GEORGIOS D. ALAVANOS ID.No. Η 159150 ID.No. Κ 004406

DIMITRIOS G. KOUTSOLIOUTSOS

IOANNIS D. ZANNOS

DATA FROM INCOME STATEMENT FOR THE YEAR Amounts reported in Euro

Amounts reported in Euro

"FOLLI - FOLLIE" AE

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

CONDENSED FINANCIAL DATA AND INFORMATION FOR THE YEAR FROM 1 JANUARY 2006 TO 31 MARCH 2006

(Published according to L. 2190, article 135 for enterprises that prepare annual financial statements, consolidated and unconsolidated, according to International Financial Reporting Standards - IFRS)

Amounts reported in Euro

ADDITIONAL DATA AND INFORMATION

1. The same Accounting Policies have been followed as for the Balance Sheet at 31.12.2005. The Group applies the IFRS from 1 January 2005.

2. There are no real liens on non-current assets or property.

3. There are no disputed or under arbitration cases of national or administrative courts that may have a material effect on the financial position of the Company.

4. The personnel employed in the Group, as at 31.03.2005, amounted to 937 and in the Company to 288 persons.

5. The amounts of Purchases and Sales of the Company, to and from the related parties as these are defined in IAS 24, accumulatively from the opening balance of the period

1.1.2006 to 31.03.2006 amount to € 0,00 and € 2.990.875,26, respectively. The receivables and payables balances of the above Companies, as at 31.03.2006, amount to €

11.129.544,71 and € 0,00 respectively.

6. Purchases of tangible and intangible assets for the period 1/1-31/03/2006 : a)Group € 945.505,36 b)Company € 46.730,97

7. For the un-audited tax years of the parent company and its subsidiaries where the possibility exists for tax audit differences to arise it has been performed a relative provision.

8. In the consolidated financial statements are included the following companies: